EXECUTIVE ORDER NO. 230

Law Summary

Overview

Executive Order No. 230, issued on July 26, 2003, modifies the rates of duty on sugar as provided under the Tariff and Customs Code of 1978. This modification aims to implement preferential rates under the Common Effective Preferential Tariff (CEPT) Scheme for the ASEAN Free Trade Area (AFTA).

Background

The Philippine government negotiated the transfer of raw and refined sugar from the CEPT Temporary Exclusion List to its Sensitive List, approved by ASEAN Ministers during the 33rd ASEAN Economic Ministers (AEM) Meeting in September 2001.
The Tariff and Related Matters Committee approved tariff concessions for imports of raw and refined sugar from ASEAN members on May 7, 2003.
The President is empowered by Sections 104 and 402 of the Tariff and Customs Code to adjust import duty rates based on recommendations from the National Economic and Development Authority.

SECTION 1: Implementation of CEPT Rates

The articles listed in Annex "A" are subject to the ASEAN CEPT rate as per the designated schedule.
CEPT rates apply to imports from ASEAN Member States that grant concessions on the same products under the CEPT Agreement.

Key Details: • Annex "A" specifies the articles affected and their respective CEPT rates. • Rates apply specifically to ASEAN Member State imports.

SECTION 2: Adjustment of Duty Rates

If the basic (Most Favored Nation) Philippine rate of duty for any article in Annex "A" is subsequently lowered, the article will automatically receive the reduced duty rate.

Key Details: • Automatic adjustment of rates upon changes in the basic duty rate. • Ensures competitive pricing for the same products.

SECTION 3: Effectivity of the Order

The rates prescribed in Annex "A" will apply to all articles entered or withdrawn for consumption in the Philippines from the date of effectivity.
Compliance with the Rules of Origin as per the CEPT Agreement is required.

Key Details: • Effective immediately after publication in two newspapers of general circulation. • Compliance with Rules of Origin is mandatory for tariff application.

SECTION 4: Repeal of Inconsistent Regulations

Any presidential issuances or administrative rules that conflict with this Executive Order are repealed or modified accordingly.

Key Details: • Ensures consistency in legal framework regarding sugar import duties. • Streamlines regulations related to sugar tariffs.

SECTION 5: Publication and Effectivity

This Executive Order takes effect immediately upon complete publication.

Key Details: • Requirement for publication in two newspapers for the order to take effect. • Immediate applicability post-publication.

ANNEX "A": Sugar Duty Rates

Details specific rates of duty for various types of sugar, including raw cane and beet sugar, categorized by in-quota and out-quota.

Key Details: • Lists HS codes and corresponding CEPT rates of duty (10% in-quota, 20% out-quota for certain products). • A comprehensive list of sugar classifications and rates is provided.

Key Takeaways

Executive Order No. 230 modifies sugar import duty rates to align with ASEAN trade agreements.
It outlines a clear framework for tariff adjustments and compliance with the CEPT Scheme.
The order emphasizes the need for publication for effectivity and mandates adherence to specified rules for tariff applicability.
It ensures that any conflicting regulations are updated to reflect the new duties.