QuestionsQuestions (EXECUTIVE ORDER NO. 102)
EO 102 modifies the rates of import duty on certain articles to implement the Philippines’ tariff commitments under the ASEAN–Hong Kong, China Free Trade Agreement (AHKFTA).
The AHKFTA was ratified by the President on 04 January 2019, and EO 102 was issued to modify tariff rates to reflect the tariff reduction schedule.
It cites the President’s powers under the Constitution and existing laws, specifically Section 1609 of Republic Act (RA) No. 10863 (Customs Modernization and Tariff Act), which authorizes the President to modify import duties upon NEDA recommendation.
The NEDA Board approved, on ad referendum, the tariff reduction schedule on products covered by the AHKFTA on 06 May 2019.
It states that the articles listed in the Philippine Schedule of Tariff Commitments under the AHKFTA (as shown in the Annex) shall be subject to the specific import duty rates indicated in columns 3 to 16 of the schedule.
They apply to all goods originating from Hong Kong, China, and ASEAN member states that are entered into or withdrawn from warehouses in the Philippines for consumption.
Submission of a Certificate of Origin is required, in compliance with the Rules of Origin under the AHKFTA.
If the Certificate of Origin is not submitted or not compliant with the AHKFTA Rules of Origin, the goods would not be entitled to the AHKFTA-prescribed rates and would remain subject to the applicable regular duties.
It states that tariff classification advance rulings are requested from the Tariff Commission, consistent with Section 1100 of RA 10863.
It preserves the Philippines’ right to invoke trade remedy measures under Philippine laws, the AHKFTA, and other relevant international agreements to prevent import surges or unfair trade practices.
No. Section 3 expressly states that nothing in EO 102 precludes the Government from invoking trade remedy measures to address import surges or unfair trade practices.
It repeals or amends all previous issuances that are inconsistent with EO 102.
It provides that if any provision (or part) of the EO is declared invalid, illegal, or unconstitutional, the remaining provisions not affected remain in force.
Immediately following its complete publication in the Official Gazette or in a newspaper of general circulation.
Importers should ensure the goods qualify as originating under the AHKFTA, obtain and submit the required Certificate of Origin, and—if needed—seek Tariff Commission advance rulings on tariff classification to confirm the correct duty rate.