Participation in the ASEAN Industrial Cooperation Scheme
- The Philippines is a Contracting Party to the AICO Basic Agreement signed in 1996.
- Philippine Auto Components, Inc. participates along with Thailand in the approved AICO Arrangement.
- Facilitates reciprocal import and export of automotive parts such as fan assemblies, evaporators, aluminum radiators, and fuel pump modules between the two countries.
Goods Covered and Harmonized System Codes
- Detailed list of auto components covered under the AICO Arrangement includes:
- Fan assembly and shroud assembly (HS Code 8414.90.00)
- Evaporators for air-conditioning machines (HS Code 8419.89.10)
- Upper and lower tanks for aluminum radiators, subassemblies (HS Code 8708.91.10)
- Core subassembly of aluminum radiators (HS Code 8708.91.20)
- Fuel pump module assembly (HS Code 8413.30.00) exported from the Philippines to Thailand
Issuance and Effectivity of Certificates of Eligibility
- ASEAN Secretariat issued Certificate of Eligibility No. Denso/2002/6 on November 12, 2002.
- Such certificates validate company participation and qualify imported goods for preferential tariff treatment.
Preferential Tariff Rates and Conditions
- AICO tariffs set between 0% and 5%, with the specific rate of 3% applied to the covered articles as per Annex "A".
- The preferential tariff rates are effective within 45 days from the date of certificate issuance.
- If the Most Favored Nation (MFN) rate is subsequently lowered below the AICO rate, the lower MFN rate becomes applicable automatically.
- From January 1, 2003, the final Common Effective Preferential Tariff (CEPT) rates supersede the AICO rates.
Procedures for Importation and Customs Compliance
- Importation of covered articles must comply with the Rules of Origin under CEPT.
- A valid Certificate of Origin using Form "D" is required to avail of the preferential tariff rates.
- Articles entering or withdrawn from warehouses in the Philippines for consumption during the EO's effectivity must pay the specified AICO preferential tariffs.
Legal Authority and Enforcement
- Executive Order issued by the President pursuant to Section 402 of the Tariff and Customs Code of 1978, as amended.
- Takes effect immediately upon publication and application date.
Summary Table of Articles and Tariff Rates
| HS Code | Product Description | Source Country | AICO Company | Preferential Tariff Rate |
|---|---|---|---|---|
| 8414.90.00 | Fan assembly and shroud assembly | Thailand | Denso (Thailand Co., Ltd.) | 3% |
| 8419.89.10 | Evaporators for air-conditioning machines | Thailand | Denso (Thailand Co., Ltd.) | 3% |
| 8708.91.10 | Upper/lower tanks and subassemblies for Al radiators | Thailand | Denso (Thailand Co., Ltd.) | 3% |
| 8708.91.20 | Core subassembly for Al radiators | Thailand | Denso (Thailand Co., Ltd.) | 3% |