QuestionsQuestions (EXECUTIVE ORDER NO. 1)
Executive Order No. 814 is issued pursuant to Section 402 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464), as amended, which empowers the President, upon recommendation of NEDA, to modify import duties for the promotion of foreign trade.
It implements the ASEAN–China Free Trade Area (ACFTA), based on the Framework Agreement between ASEAN and China (signed 4 November 2002) and the Agreement on Trade in Goods signed 29 November 2005.
They reflect the Parties’ commitment to establish the ACFTA covering trade in goods by 2010 for ASEAN-6 and China, and by 2015 for newer ASEAN Member States.
It modifies the rates of duty on certain imported articles to implement the 2009–2012 Philippine schedule of tariff reduction under the Normal Track of the ACFTA, as reflected in the Annexes.
Annex “aAa” lists articles under the 2009–2012 Philippine Schedule of Tariff Reduction under the Normal Track; Annex “aBa” lists articles transferred from the Sensitive Track to the Normal Track. Both annexes contain the ACFTA rates indicated in Columns 4–7.
Articles listed in Annex “aAa” shall be subject to the ACFTA rates in Columns 4–7 of the annex, and these ACFTA rates shall apply to imports from ACFTA Parties that grant tariff concessions for the same product under Article 3 of the Agreement on Trade in Goods.
Articles transferred from the Sensitive Track to the Normal Track (Annex “aBa”) shall be subject to the ACFTA rates in Columns 4–7 of that annex, likewise applying to imports from ACFTA Parties that provide tariff concessions under Article 3 of the Agreement on Trade in Goods.
For ASEAN-9 (Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand, Vietnam), the applicable rate is the ACFTA rate subject to submission of the proper Certificate of Origin, Form E.
Upon request, the Tariff Commission may issue tariff classification rulings to confirm the applicable rates of duty of particular products subject to the ACFTA for ASEAN-9.
If subsequent changes reduce the basic MFN Philippine duty rate on any article listed in Annexes “aAa” and “aBa” to a rate lower than the rate in Columns 4–7, the article shall automatically be accorded the corresponding reduced duty.
From the date of effectivity of the Order, all articles in Annexes “aAa” and “aBa” entered into or withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty prescribed, subject to compliance with the Rules of Origin under Article 5 of the Agreement on Trade in Goods.
They imply that entitlement to the ACFTA duty rates is conditioned upon compliance with the applicable Rules of Origin under Article 5 of the Agreement on Trade in Goods.
All previous presidential issuances, administrative rules and regulations, or parts thereof, that are contrary to or inconsistent with EO 814 are revoked or modified accordingly.
EO 814 takes effect fifteen (15) days following its complete publication in the Official Gazette or in a newspaper of general circulation in the Philippines.
Because Section 402 of PD 1464 requires presidential action upon recommendation of NEDA; thus EO 814 cites NEDA Board approvals to show compliance with the statutory requirement for modification of import duties.
It provides separate annex lists and sections: Section 1 applies Annex “aAa” (Normal Track schedule), while Section 2 applies Annex “aBa” (products transferred from Sensitive to Normal Track), each with specific ACFTA rates in their respective annex columns.