Specific AICO Arrangement and Trade Details
- Philippines (Goya, Inc.) imports certain intermediate products: sweetened cocoa blend from Indonesia and sweetened skimmed milk powder and whey compound from Thailand.
- In return, Indonesia and Thailand import finished chocolate confectionery products from the Philippines.
Tariff Preferences and Eligibility
- Articles involved qualify for preferential tariff rates from 0% to 5% under Articles 5 and 7 of the AICO Basic Agreements.
- Preferential tariffs apply to participating countries within 45 days after Certificate of Eligibility issuance by ASEAN Secretariat.
- Relevant Certificates of Eligibility for Goya, Inc. scheme were issued on 27 September 1999 and 26 October 1999.
Applicable Tariff Rates and Coverage (Annex A)
- Tax rates of 3% and 5% preferential duties apply to specific articles classified under the Tariff and Customs Code (Section 104), listed in Annex A.
- Annex A details products, HS codes, source countries, and specific tariff rates:
- Sweetened skimmed milk powder from Thailand – 3%
- Sweetened whey compound from Thailand – 3%
- Sweetened cocoa blend from Indonesia – 5%
Implementation and Effectivity
- Preferential rates for Indonesia’s entity effective 27 September 1999, and for Thailand’s entity effective 26 October 1999.
- If Philippine Most Favored Nation (MFN) rates become lower than AICO rates, the lower MFN rates automatically apply.
- Effective 1 January 2003, the final Common Effective Preferential Tariff (CEPT) rates shall apply to these products.
Conditions for Application of Preferential Rates
- Imports covered by the Order must be entered or withdrawn for consumption in the Philippines after the Order’s effectivity.
- Qualification is subject to Rules of Origin under the CEPT and proof by Certificate of Origin – Form D.
Legal Authority and Effectivity
- The Order is issued by the President under the powers granted by Section 402 of the Tariff and Customs Code of 1978, as amended.
- It takes effect immediately upon publication on February 16, 2000.