Modifying Duty Rates for ASEAN-China Trade

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EXECUTIVE ORDER NO. 72: Modifying Duty Rates for ASEAN-China Trade

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Title Supreme Court: Modifying Duty Rates for ASEAN-China Trade

Law: Executive Order No. 72

Decision Date: Apr 16, 2012

President Benigno S. Aquino III's Executive Order No. 72 modifies import duty rates on certain products to align with the Philippines' commitments under the ASEAN-China Free Trade Area, facilitating the transfer of specific tariff lines from the Sensitive List to the Normal Track.

A

Agreement on Trade in Goods (TIG) and Tariff Modalities

TIG Agreement signed on November 29, 2004, to implement the Framework Agreement's objectives.
Tariff lines in the Sensitive Track require applied Most Favored Nation (MFN) tariff rate reductions or eliminations per Annex 2 of the TIG Agreement.

Sensitive List Tariff Reductions Schedule

ASEAN-6 and China to reduce applied MFN tariff rates on Sensitive List items to 20% by 2012 and 0-5% by 2018.
National Economic and Development Authority (NEDA) Board recommended tariff reduction schedules for sensitive lines and reclassification of certain lines.

Presidential Authority and Legal Basis

Section 402 of the Tariff and Customs Code of the Philippines (TCCP), as amended, authorizes the President, upon NEDA recommendation, to modify import duties and restrictions to promote foreign trade.

Section 1: Reduction of Tariff Rates on Sensitive List Articles

Specific articles listed in Annex A are subject to revised import duty rates as classified under Section 104 of the TCCP.

Section 2: Transfer of Articles from Sensitive to Normal Track

Articles listed in Annex B are reclassified from the Sensitive Track to the Normal Track, subjected to ACFTA rates as per Column 4 of Annex B.

Section 3: Applicable ACFTA Rates and Certification

ACFTA rates apply to China and ASEAN 9 members, contingent upon submission of a Certificate of Origin (CO) Form E.
The Tariff Commission may issue tariff classification rulings to confirm duty rates for products under this section.

Section 4: Compliance with Rules of Origin

Import duty rates prescribed in Annexes A and B apply to articles entered or withdrawn from warehouses for consumption.
Compliance with Rules of Origin according to Article 5 of the TIG Agreement is mandatory.

Section 5: Right of Recourse to Trade Remedies

The Philippines reserves the right to invoke trade remedy measures under its laws, the TIG Agreement, and international agreements to address import surges.

Section 6: Repealing of Inconsistent Provisions

All prior issuances, orders, rules, and regulations inconsistent with this Executive Order are repealed, amended, or modified accordingly.

Section 7: Separability Clause

If any provision is declared invalid or unconstitutional, other provisions remain valid and effective.

Section 8: Effectivity

The Executive Order takes effect immediately upon publication in a newspaper of general circulation.

END