Law Summary
Purpose of the Executive Order
This Executive Order modifies the rates of import duty on certain imported articles to implement a decision from the Eleventh ASEAN Economic Ministers (AEM) Meeting regarding an initial tariff cut of 50% for products included in the ASEAN Industrial Complementation (AIC) Package.
- Legal Basis: Section 402 of Presidential Decree No. 1464.
- Objective: To facilitate regional trade among ASEAN member states by reducing tariffs.
Tariff Preference Rates
The articles listed in Annex aAa are granted a fifty percent (50%) margin of tariff preference.
- Initial Tariff Cut: A 50% reduction on specified articles as per the AIC package.
- Preferential Tariff Schedule: Articles are subject to the Preferential Tariff for ASEAN as specified in Columns 8-11 of Annex aAa.
Automatic Adjustment of Duty Rates
Subsequent changes in the basic Philippine rate of duty for the listed articles will automatically apply the 50% margin of preference.
- Automatic Adjustment: Any future changes in duty rates will not alter the preferential treatment of these articles.
Implementation and Compliance
All articles described in this Executive Order are subject to the prescribed rates of import duty upon entry or withdrawal for consumption in the Philippines.
- Conditions for Applicability: Must comply with the Rules of Origin as stipulated in the Agreement on ASEAN Preferential Trading Arrangements ratified on August 1, 1977.
Effective Date
The provisions of this Executive Order take effect on January 1, 1982.
- Date of Effectiveness: January 1, 1982.
Signatures
- President: Ferdinand E. Marcos
- Presidential Executive Assistant: Juan C. Tuvera
Key Takeaways
- The Executive Order introduces a 50% tariff reduction on specified imported articles to promote trade within ASEAN.
- The tariff preferences are automatic with future changes in the base duty rates.
- Compliance with ASEAN Rules of Origin is mandatory for the preferential tariff rates to apply.
- This Executive Order is effective as of January 1, 1982.