CEPT Agreement Scope and Origin Criteria
- The CEPT Agreement covers all manufactured products, including capital goods, processed agricultural products, and other agricultural products per the Agreement's definitions.
- Import concessions under CEPT apply if the product originates from ASEAN Member States applying the CEPT concessions on the same product.
- A product qualifies as originating from an ASEAN Member State if a minimum of 40% of its content comes from any Member State.
Legal Status of Ecozones and Import Duties
- Ecozones such as Subic Bay Free Port and Clark Special Economic Zone are separate customs territories under Republic Acts Nos. 7227, 7916, 7903, and 7922.
- Products procured from ecozone locators are treated as foreign imports and are therefore initially subject to Most Favored Nation (MFN) tariff rates when brought into the domestic customs territory.
Adjustment Clause on Duty Rates
- If Philippine MFN duty rates for any manufactured article under the CEPT scheme are reduced below the prescribed CEPT rates, the lower MFN rate will automatically apply instead.
Implementation Guidelines and Administrative Coordination
- Within 30 days after full publication of the Executive Order, the Department of Finance, Philippine Economic Zone Authority, Subic Bay Metropolitan Authority, Clark Special Economic Zone Authority, Board of Investments, and other relevant agencies must issue implementing guidelines.
- This coordination ensures consistent application and enforcement of the CEPT rates on qualified ecozone imports.
Repeal of Conflicting Issuances
- Any Presidential issuances, administrative rules, or regulations inconsistent with this Executive Order are repealed or modified accordingly to align with its provisions.
Effectivity of the Order
- The Executive Order becomes effective immediately upon its complete publication in two newspapers of general circulation in the Philippines.
- This ensures prompt applicability and compliance with the new tariff regime.