QuestionsQuestions (DOT)
Executive Order No. 214 was issued pursuant to the powers vested in the President under Section 402 of the Tariff and Customs Code of 1978, as amended.
Its purpose is to modify the rates of duty on certain imported articles so that the Philippines can implement the preferential tariff rates under the AICO scheme for the approved Goya, Inc. arrangement.
The Basic Agreement on the ASEAN Industrial Cooperation (AICO) Scheme signed in Singapore on 27 April 1996.
AICO Certificate of Eligibility No. Nestle/1991/1 issued on 27 September 1999, and AICO Certificate of Eligibility No. Nestle/1992/2 issued on 26 October 1999.
The covered articles are those specifically listed in Annex “A,” identified by their HS codes and product descriptions (e.g., sweetened skimmed milk powder, sweetened whey compound, sweetened cocoa blend).
Sweetened skimmed milk powder (HS 0402.10 10) and sweetened whey compound (HS 0404.10 00) are given an AICO rate of 3%; sweetened cocoa blend (HS 1806.10 00) is given an AICO rate of 5%.
Sweetened skimmed milk powder and sweetened whey compound come from Thailand (Nestle Foods (Thailand) Ltd.); sweetened cocoa blend comes from Indonesia (PT. Nestle Confectionery Indonesia).
For Indonesia’s AICO entity (PT. Nestle Confectionery Indonesia): effective 27 September 1999. For Thailand’s AICO entity (Nestle Foods (Thailand) Ltd.): effective 26 October 1999.
The article automatically receives the corresponding reduced rate of duty (i.e., the lower MFN rate), overriding the otherwise fixed AICO rate.
Effective 1 January 2003, the final CEPT rate on the subject articles shall apply.
They must qualify under the Rules of Origin for CEPT, evidenced by a Certificate of Origin—Form “D.”
No. The preferential AICO rates apply to the listed articles entered/withdrawn for consumption in the Philippines, subject to qualification under the Rules of Origin for CEPT and presentation of the Certificate of Origin—Form “D.”
EO 214 shall take effect immediately.
EO 214 operationalizes preferential tariff rates by prescribing specific duty rates for enumerated HS-coded goods, setting effectiveness dates based on eligibility certificates, and conditioning the privilege on compliance with origin rules and proper documentary evidence under customs procedures.