Question & AnswerQ&A (EXECUTIVE ORDER NO. 262)
The President's power to modify import duty rates on motor vehicles is derived from Section 401 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464, as amended).
Executive Order No. 156, issued on 12 December 2002, is referenced as providing the framework for restructuring Most Favored Nation tariff rates for motor vehicles and their raw materials, parts, and components.
The modifications in import duty rates under EO No. 262 specifically apply to motor vehicles and their raw materials, parts, and components, as listed in Annex 'A' of the Executive Order.
The new import duty rates take effect thirty (30) days following the complete publication of the Executive Order in two (2) newspapers of general circulation in the Philippines.
Annex 'A' contains the specific articles classified under Section 104 of the Tariff and Customs Code of 1978 that will be subject to the new import duty rates prescribed by EO No. 262.
All presidential issuances, administrative rules and regulations, or parts thereof that are inconsistent with EO No. 262 are hereby revoked or modified accordingly to ensure conformity with the new order.
EO No. 262 cites Section 401 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464, as amended) as the legal authority empowering the President to modify tariff nomenclature and import duty rates.
EO No. 262 aims to encourage the development of the Philippine motor vehicle industry by restructuring the import duty rates on motor vehicles and related materials to be more favorable for local industry growth.