Question & AnswerQ&A (EXECUTIVE ORDER NO. 214)
The AICO Scheme is an agreement among ASEAN countries aimed at improving the competitiveness of ASEAN companies in global and ASEAN markets by applying economies of scale and scope in manufacturing and providing preferential import duties to facilitate cross-border transactions.
The participating countries are the Philippines, Indonesia, and Thailand.
The Philippines imports sweetened cocoa blend from Indonesia (PT. Nestle Confectionery Indonesia) and sweetened skimmed milk powder and sweetened whey compound from Thailand (Nestle Foods (Thailand) Ltd.) as intermediate products for manufacturing chocolate confectionery and chocolate eclairs.
Indonesia and Thailand import chocolate confectionery products and chocolate eclairs from the Philippines.
Participating companies qualify for preferential tariff rates ranging from 0% to 5%, effective within 45 days from the issuance of the Certificate of Eligibility by the ASEAN Secretariat.
These certificates, issued in favor of companies in the Goya, Inc. AICO Arrangement, formalize their qualification for the preferential tariff rates under the AICO Scheme.
The articles listed are accorded AICO preferential tariff rates of either 3% or 5%, as specified in Column 4 of Annex "A".
For Indonesia's AICO entity (PT. Nestle Confectionery Indonesia), the rate became effective on September 27, 1999, and for Thailand's AICO entity (Nestle Foods (Thailand) Ltd.), on October 26, 1999.
The article shall automatically be accorded the lower MFN rate of duty.
Effective January 1, 2003, the final CEPT rate on the subject articles shall apply.
A Certificate of Origin - Form "D" must be presented as evidence to qualify under the Rules of Origin for the CEPT.
The products are: 0402.10 10 - Sweetened skimmed milk powder from Thailand; 0404.10 00 - Sweetened whey compound from Thailand; and 1806.10 00 - Sweetened cocoa blend from Indonesia.
The Executive Order took effect immediately upon its signing on February 16, 2000.