Legal Basis and Authority
- Anchored on Chapter 2, Article 1 of AANZFTA for progressive tariff reduction/elimination
- Utilizes presidential powers under Section 402 of the Tariff and Customs Code of 1978, as amended, upon NEDA's recommendation to modify import duties
Scope and Coverage
- Applies to imported articles listed in the Annex containing the Schedules of Tariff Commitments under AANZFTA
- Requires presentation of Certificate of Origin Form AANZ to qualify for preferential tariff rates
Tariff Rates and Application
- Duty rates specified in Columns 4 to 15 of the Annex apply to Articles originating from Australia, New Zealand, and ASEAN 9 countries (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Vietnam)
- Preferential tariff rates granted only with proper CO Form AANZ submission
- Tariff Commission authorized to issue classification rulings to confirm applicable duty rates
Implementation and Compliance
- Effectivity mandates that listed articles entered or withdrawn from warehouses be subject to prescribed duty rates from the Executive Order’s effective date
- Compliance with Rules of Origin as per Chapter 3 of AANZFTA required to avail of preferential treatment
Trade Remedy Measures
- Allows the Philippines to invoke trade remedy measures under domestic law, AANZFTA, and international agreements to counter import surges
Separability Clause
- Provisions declared separable where invalidity or unconstitutionality of one does not affect the others
Repealing Clause
- Revokes or modifies inconsistent presidential issuances, administrative rules, or regulations
Effectivity
- Takes effect on January 1, 2010, after publication in the Official Gazette or a national newspaper of general circulation