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.