Legal Authority and Basis
- Issued pursuant to Section 402 of Presidential Decree No. 1464, otherwise known as the Tariff and Customs Code of 1978, as amended.
- Enacted by the President of the Philippines, exercising executive powers over tariff adjustments.
Specific Tariff Adjustments (Section 1)
- Articles listed in Annex aAa receive additional margins of tariff preference as specified in column 8 of the Annex.
- Import duties on these articles shall follow the Preferential Tariff for ASEAN as indicated in columns 9 to 13 of Annex aAa.
- The classification of these articles adheres to Section 104 of the Tariff and Customs Code.
Automatic Adjustment Clause (Section 2)
- Any future changes in the basic Philippine rate of duty on listed articles will automatically reflect the corresponding tariff preference margins in column 8.
- Ensures continuous alignment of preferential tariff margins with the basic duty rates.
Implementation and Effectivity (Section 3 and 4)
- After the Order’s effective date, all listed articles entered or withdrawn for consumption are subject to the new import duty rates under the ASEAN Preferential Trading Arrangements Agreement ratified on August 1, 1977.
- The Order takes effect on April 1, 1981.
Key Legal Concepts
- Tariff preferences aim to reduce trade barriers among ASEAN member states by granting lower import duties.
- Preferential Trading Arrangements (PTA) establish reduced tariff rates to encourage regional trade.
- The Order ensures synchronization of national tariff policy with ASEAN regional agreements.
Penalties and Enforcement
- While this Order does not explicitly state penalties, it implicitly requires customs authorities to enforce the revised tariff schedules.
- Non-compliance would likely invoke applicable customs enforcement rules under the Tariff and Customs Code.