Law Summary
Normal Track Tariff Reductions and Timeline
- Tariff lines on the Normal Track must have applied Most Favored Nation (MFN) rates gradually reduced and eliminated.
- Complete elimination required by January 1, 2010, with flexibility to extend to 2012 for up to 150 tariff lines.
- The Philippines to review which products qualify for this flexibility.
Revision of Sensitive Track and Market Access Improvement
- A review of Sensitive Track tariff lines was initiated to improve market access.
- Some tariff lines were transferred from the Sensitive Track to the Normal Track category.
Approval of Tariff Reduction Schedule and Legal Authority
- The National Economic and Development Authority (NEDA) Board approved the 2009-2012 tariff reduction schedule.
- Presidential authority to modify import duties is pursuant to Section 402 of the Tariff and Customs Code of 1978.
Application of ACFTA Rates on Specified Articles
- Annex "aA" lists articles subject to ACFTA tariff rates under the Normal Track with detailed schedules.
- These rates apply to imports from Parties under the Agreement on Trade in Goods.
- Annex "aB" includes articles transferred from the Sensitive Track to the Normal Track, also with specified ACFTA rates.
Certification and Tariff Classification Procedures
- For ASEAN 9 countries, application of ACFTA rates requires submission of Certificate of Origin, Form E.
- The Philippine Tariff Commission may issue classification rulings to confirm duty rates.
Adjustment for Further Reductions in Base Philippine MFN Rates
- Should MFN rates on listed articles be lowered subsequently, the reduced rates apply automatically.
Effectivity and Compliance Requirements
- The ACFTA rates apply to articles entered or withdrawn for consumption from the date of effectivity.
- Compliance with the Rules of Origin from Article 5 of the Agreement on Trade in Goods is mandatory.
Repeal and Modification of Conflicting Issuances
- Any presidential issuances or administrative rules inconsistent with this order are revoked or modified accordingly.
Effectivity Clause
- The Executive Order takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation in the Philippines.