Adjustment of Duty Rates Following Changes in Most-Favored-Nation (MFN) Rates
- If the basic MFN Philippine rate on any article listed in Annex "A" is reduced below the CEPT rates specified, the lower MFN rate will apply automatically.
- This provision allows for automatic alignment of preferential tariff rates with any general reductions in MFN rates.
Cessation of Margins of Preference (MOPs) for Listed Products
- Margins of Preference previously accorded under ASEAN Preferential Trading Arrangements will no longer apply to products in Annex "A".
- This marks a transition from MOP-based preferences to the CEPT tariff scheme for the specified products.
Implementation and Qualification Based on Rules of Origin
- Starting from the order's effectivity date, all specified articles entered or withdrawn from warehouses for consumption in the Philippines must comply with the prescribed CEPT duty rates.
- Qualifications are subject to the Rules of Origin as per the CEPT Agreement signed on 28 January 1992.
- This ensures that only products meeting ASEAN origin criteria benefit from CEPT rates.
Repeal and Modification of Inconsistent Regulations
- All existing decrees, orders, issuances, rules, or regulations contrary or inconsistent with this Executive Order are repealed, amended, or modified accordingly.
- This creates legal clarity and precedence for this Order.
Immediate Effectivity
- The Executive Order took effect immediately upon signing on 11 June 1998.
- This allows for prompt implementation of tariff adjustments under CEPT-AFTA.