Question & AnswerQ&A (EXECUTIVE ORDER NO. 157)
The main purpose of Executive Order No. 157, s. 2014 is to modify the rates of import duty on certain imported motor vehicles components, parts, and/or accessories to implement the amended tariff reduction schedule under the Philippines-Japan Economic Partnership Agreement (PJEPA).
The Agreement Between the Republic of the Philippines and Japan for an Economic Partnership (PJEPA) serves as the basis for the tariff modifications in EO No. 157, s. 2014.
The PJEPA was signed on September 9, 2006, and ratified by the Philippine Senate through Resolution No. 131 on October 8, 2008.
Section 402 of the Tariff and Customs Code of the Philippines (TCCP), as amended, authorizes the President to modify import duties for the promotion of foreign trade, upon recommendation by the National Economic and Development Authority (NEDA).
The tariff reduction under EO No. 157 specifically affects motor vehicles components, parts, and/or accessories as classified under Section 104 of the Tariff and Customs Code.
For imports from Japan, the PJEPA rate is applicable only upon submission of the proper Certificate of Origin Form JP.
The Tariff Commission may, upon request, issue tariff classification rulings to confirm the applicable rates of duty of particular products subject to EO No. 157, pursuant to Section 1313(a) of the TCCP, as amended.
The Rules of Origin refer to the criteria defined in Chapter 3 of the PJEPA which determine the economic nationality of a product and ensure that the preferred tariff treatment is given only to products originating from Japan or the Philippines.
Yes, EO No. 157 explicitly states that it does not preclude the Philippines from invoking trade remedy measures provided under the law, the PJEPA, and other international agreements against import surges.
EO No. 157 took effect immediately upon its publication in a newspaper of general circulation.
All issuances, orders, rules, and regulations or parts thereof that are inconsistent with EO No. 157 are repealed, amended, or modified accordingly.
If any provision is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting due to the separability clause.