Title
Rice import tariff reduction under CEPT-AFTA/ATIGA
Law
Executive Order No. 894
Decision Date
Jun 18, 2010
Gloria Macapagal-Arroyo modifies import duty rates on rice to implement a tariff reduction schedule under the ASEAN Free Trade Area agreement, allowing for special consideration in trade with ASEAN member states.

Tariff Reduction Schedule Submission and Approval

  • The Philippines proposed a tariff reduction modality starting at 40% from 2009 until 2014, and 35% in 2015.
  • This proposal was submitted during the 23rd AFTA Council Meeting on 13 August 2009.
  • A Memorandum of Understanding (MOU) between the Philippines and Thailand was signed on 08 April 2010.
  • The National Economic and Development Authority (NEDA) Board approved the tariff reduction schedule on 25 May 2010.

Presidential Authority under the Tariff and Customs Code

  • Section 402 of the Tariff and Customs Code of 1978 grants the President the power to modify import duties on recommendation of NEDA.
  • This authority serves to promote foreign trade through tariff adjustments.

Implementation of CEPT-AFTA/ATIGA Rates on Rice Imports

  • The Executive Order mandates that rice articles listed in the Annex follow the tariff rates specified under CEPT-AFTA/ATIGA.
  • These rates apply to imports from ASEAN Member States that reciprocate the same CEPT concessions.
  • The rates must comply with Articles 19 and 21 of the ATIGA regarding tariff reduction and legal enactments.

Effective Date and Conditions of Application

  • The new tariff rates apply to rice entries or releases from warehouses for consumption after the Executive Order's effectivity.
  • Compliance with the Rules of Origin under the CEPT Scheme for AFTA/ATIGA is mandatory for applying tariff rates.

Recourse to Trade Remedy Measures

  • The Philippines retains the right to invoke trade remedy measures under domestic law, ATIGA, and relevant international agreements.
  • This is an effective mechanism to address import surges or unfair trade practices.

Separability Clause

  • Should any provision of the Executive Order be declared invalid or unconstitutional, the remaining provisions continue to be effective.

Revocation and Modification of Conflicting Issuances

  • All existing presidential issuances, administrative rules, or regulations inconsistent with this Executive Order are revoked or modified accordingly.

Effectivity Clause

  • The Executive Order takes effect fifteen (15) days after its full publication either in the Official Gazette or a national newspaper of general circulation.

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