April 16, 2012

EXECUTIVE ORDER NO. 73

MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED FOR UNDER THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES (TCCP), AS AMENDED, IN ORDER TO IMPLEMENT THE PHILIPPINE TARIFF COMMITMENTS ON CERTAIN PRODUCTS INCLUDED IN THE HIGHLY SENSITIVE LIST UNDER THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)-KOREA FREE TRADE AREA (AKFTA)

WHEREAS, the ASEAN Member States and the Republic of Korea ("The Parties") signed the Framework Agreement on Comprehensive Economic Cooperation ("Framework Agreement") on 13 December 2005 in Kuala Lumpur, Malaysia; TCHcAE

WHEREAS, Articles 1.3 and 2.1 of the Framework Agreement reflect the Parties' commitment to establish the AKFTA covering trade in goods;

WHEREAS, to achieve the objective of the Framework Agreement, the Agreement on Trade in Goods (TIG) or the "TIG Agreement" was signed by the Economic Ministers of the Parties on 24 August 2006 in Kuala Lumpur, Malaysia;

WHEREAS, Article 3 (2) (b) of the TIG Agreement provides that tariff lines placed in the Sensitive Track by each Party on its own accord shall have their respective applied Most Favoured Nation (MFN) tariff rates reduced or eliminated in accordance with the modalities set out in Annex 2 of the TIG Agreement;

WHEREAS, Section 4 of Annex 2 of the TIG Agreement provides that the Parties shall reduce the MFN rates on products in the Highly Sensitive List to not more than 50% in Group A not later than 2016 and to not less than 20% in Group B not later than 2016;

WHEREAS, the National Economic and Development Authority (NEDA) Board recommended on 16 January 2012, on ad referendum basis, the tariff reduction schedules of certain tariff lines under the Highly Sensitive Lists; and

WHEREAS, Section 402 of the cHSIDa

NOW, THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Reduction of Tariff Rates on Articles in the Highly Sensitive List. The articles specifically listed in the Annex hereof, as classified under Section 104 of the

SECTION 2. Applicable AKFTA Rate. For the Republic of Korea and the ASEAN 9 (i.e., Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand, and Viet Nam), the applicable rate shall be the AKFTA rate subject to the submission of the proper Certificate of Origin (CO) Form AK. Pursuant to Section 1313 (a) of the

SECTION 3. Rates for Articles in the Annex Subject to Rules of Origin. From the date of effectivity of this Executive Order, all articles listed in the Annex 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 Article 5 of the TIG Agreement.

SECTION 4. Right of Recourse. Nothing in this Executive Order shall preclude the Philippines from invoking its right of recourse to all trade remedy measures provided for in its laws, the TIG Agreement and other relevant international agreements, as an effective device against import surges.

SECTION 5. Repealing Clause. All issuances, orders, rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby repealed, amended or modified accordingly.

SECTION 6. Separability Clause. If any provision of this Executive Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

SECTION 7. Effectivity Clause. This Executive Order shall take effect upon publication in a newspaper of general publication.

DONE in the City of Manila, this 16th day of April, in the year of Our Lord, Two Thousand and Twelve. ScTIAH

ANNEX

ARTICLES GRANTED TARIFF CONCESSION UNDER THE HIGHLY SENSITIVE LIST OF THE ASEAN-KOREA FREE TRADE AGREEMENT