Executive Order No. 617

MALACAÑANG
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 617

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED FOR UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE COMMITMENT TO REDUCE THE COMMON EFFECTIVE PREFERENTIAL TARIFF RATES OF CERTAIN PRODUCTS TO ZERO PERCENT UNDER THE ASEAN FRAMEWORK AGREEMENT FOR THE INTEGRATION OF PRIORITY SECTORS

WHEREAS, at the 10th ASEAN Summit held in Vientianne on 29 November 2004, the ASEAN Heads of Government/State signed the ASEAN Framework Agreement for the Integration of Priority Sectors hereinafter referred to as the "Framework Agreement";

WHEREAS, the objective of the Framework Agreement is to enable the progressive, expeditious and systematic integration of priority sectors through the identification of measures to be implemented with clear timelines, in a mutually beneficial manner, by the ASEAN Member States;

WHEREAS, Article 2 of the Framework Agreement Identifies eleven (11) priority sectors, namely, agro-based products, air travel, automotives, e-ASEAN, electronics, fisheries, healthcare, rubber-based products, textiles and apparels, tourism, wood-based products;

WHEREAS, Article 4 of the Framework Agreement provides that Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and Thailand shall eliminate by 1 January 2007 all Common Effective Preferential Tariff (CEPT) rates of products (other than those in the sensitive, highly sensitive and general exception lists) covered by the individual ASEAN Sectoral Integration Protocols, except those listed in accompanying negative lists to the Protocols;

WHEREAS, on 14 January 2007, the NEDA Board approved the reduction of CEPT rates to 0% on various products in compliance with the Philippine commitment under the Framework Agreement;

WHEREAS, Section 402 of the Tariff and Customs Code of 1978, as amended, empowers the President upon the recommendation of the National Economic and Development Authority, to increase, reduce or remove existing protective rates of import duty, as well as to modify the form of duty;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The articles specifically listed in Annex "A" hereof (Articles Granted Zero (0%) AFTA-CEPT Concession under the ASEAN Framework Agreement for the Integration of Priority Sectors), as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be subject to the ASEAN CEPT rate indicated in Column 4 of Annex "A". The ASEAN CEPT rates so indicated shall be accorded to imports coming from ASEAN Member States applying CEPT concession to the same products pursuant to Article 4 of the CEPT Agreement and its Interpretative Notes.

SEC. 2. From the date of effectivity of this Order, all articles listed in Annex "A" entered into or withdrawn from warehouses in the Philippines for consumption shall be imposed the rates of duty therein prescribed subject to compliance with the Rules of Origin as provided for in the Agreement on the CEPT Scheme for the AFTA signed on 28 January 1992.

SEC. 3. All presidential issuances, administrative rules and regulations, or parts thereof, which are contrary to or inconsistent with this Executive Order are hereby repealed or modified accordingly.

SEC. 4. This Executive Order shall take effect immediately following its complete publication in the Official Gazette or in a national newspaper of general circulation in the Philippines.

Done in the City of Manila, this 23rd day of April, in the year of Our Lord, Two Thousand and Seven.

GLORIA MACAPAGAL ARROYO

By the President:

(signed)
EDUARDO R. ERMITA
Executive Secretary