Title
ASEAN Auto Parts Import Duty Preferential Rates
Law
Op Executive Order No. 79
Decision Date
Apr 2, 1993
Fidel V. Ramos modifies import duty rates to implement a minimum 50% Margin of Preference for specific automotive products under the ASEAN Brand-to-Brand Complementation Scheme, enhancing trade relations with participating countries.
A

Key Definitions and Participating Entities

  • BBC Scheme involves reciprocal import and export of automotive parts among ASEAN member countries.
  • Participating countries for these schemes include the Philippines, Malaysia, and Thailand.
  • BBC entities refer to manufacturers or assemblers in ASEAN countries involved in the scheme.

Minimum 50% Margin of Preference (MOP) Implementation

  • A minimum 50% Margin of Preference on import duties shall be accorded to certain automotive parts listed in Annexes A, B, and C.
  • Preferential tariffs are specified in detailed schedules annexed to the order.

Specific Provisions for Mitsubishi BBC Scheme (Section 2)

  • Applies to parts of manual transmission, final drive system, and stamping body parts for specified Lancer and Galant models.
  • MOP valid for imports from Thailand until January 23, 1995.
  • Possible extension or grant to other ASEAN countries dependent on reciprocal treatment.

Specific Provisions for Nissan BBC Scheme (Section 3)

  • Covers body metal parts and oil pan assemblies for Nissan Sentra (Model B13).
  • MOP applies to imports from Malaysia and Thailand until January 23, 1995.
  • Extension subject to reciprocal MOP granting by other ASEAN members.

Specific Provisions for Toyota BBC Scheme (Section 4)

  • Applies to a range of parts for Corolla, Liteace, and TUV models including suspension, steering, fuel tank, electrical, and accessory parts.
  • MOP granted to Malaysia and Thailand until January 23, 1995.
  • Future extension to non-participating ASEAN countries conditional on reciprocity.

General Extension of MOP (Section 5)

  • Effective January 24, 1999, MOP will be extended to any ASEAN member producing the BBC products, regardless of prior participation status.

Continuity of the 50% MOP (Section 6)

  • The MOP rate remains effective regardless of subsequent changes in basic Philippine duty rates on the listed articles.

Qualification under Rules of Origin (Section 7)

  • All articles benefiting from MOP must comply with the Rules of Origin under ASEAN Preferential Trading Agreements.
  • Ensures that preferential treatment is restricted to qualifying products.

Administrative Procedures for Changes in Part Numbers (Section 8)

  • Any revision of part numbers in annexes must be communicated promptly to the Philippine Government.
  • Department of Trade and Industry (DTI) to notify the Bureau of Customs within five days of receiving revised part numbers.

Effectivity and Implementation (Section 9)

  • The Order took effect immediately upon signing on April 2, 1993.
  • Enforced by the President through the powers granted under the Tariff and Customs Code of 1978, as amended.

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