EXECUTIVE ORDER NO. 338, July 23, 2004

AMENDING EXECUTIVE ORDER NO. 87, SERIES OF 2002, ENTITLED "MODIFYING THE RATES OF DUTY OF CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME, IN FAVOR OF HANDA CARS PHILIPPINES, INC. (HONDA) – (COE NO. HONDA/2000/10/A)"

WHEREAS, AICO Certificate of Eligibility No. Honda/2000/ 10 was issued on 19 June 2001 to Oriental Assemblers Sdn. Bhd., Honda Autopart Manufacturing (M) Sn. Bhd.) and Honda Cars Philippines, Inc. as participating companies in the Honda AICO Arrangement which shall qualify for 0- 5% preferential tariff rates, local content accreditation where applicable, and other privilileges to be extended by Malaysia to the Philippines;

WHEREAS, pursuant to said Certificate of Eligibility, Executive Order No. 87 dated 18 March 2002 was issued implementing tariff rates on certain products under the AICO Arrangement of Honda Cars Philippines, Inc., Oriental Assemblers Sdn. Bhd., and Honda Autoparts Manufacturing (M) Sdn. Bhd. On certain original equipment manufacture (OEM) automotive parts/components for Honda Civic passengers cars (HS Hdg. 8703.90 10);

WHEREAS, on 18 February 2004, AICO Certificate of Eligibility No. Honda 2000 10(A) was re-issued to Honda Malaysia Sdn Bhd., Honda Autoparta Manufacturing (M) Sdn. Bhd., and Honda Cars Philippines, Inc. thus nufflifying AICO Certificate of Eligibility No. Honda /2000/10 issued to Oriental assemblers Sdn. Bhd., Honda Autoparts Manufacturing (M) Sdn. Bhd. And Honda Cars Philippines, Inc.;

WHEREAS, it is thus necessary to amend Executive Order No. 87 to the effect the change of one of the participating companies from Oriental Assemblers Sdn. Bhd. To Honda Malaysia Sdn, Bhd.;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, pursuant to the powers vested in me under Section 402 of the Tariff and Customs Code of 1978, as amended, do hereby order:

Section 1. The fourth WHEREAS Clause of Executive Order No. 87 dated 18 March 2002 is hereby amended to read as follows:

"WHEREAS, under the Honda AICO Arrangement, the Philippines (Honda Cars Philippines) will import from Indonesia (P.T. Honda Prospect Motor) and Malaysia (Honda Malaysia Sdn. Bhd. And Honda Autoparts Manufacturing (M) Sdn, Bhd.) certain original equipment manufacture (OEM) automotive parts/ components for Honda Civic passenger cars (AHTN 8703.90.26A, 8703.90.27A& 8703.90.28A). In exchange Indonesia and Malaysia will import from the Philippines other complementary parts/components for the OEM of Honda Civic.

Section 2. Section 4 of Executive Order No 87 dated 18 March 2002 is hereby amended to read as follows: "The AICO rate provided in Annex "B" shall be accorded to the AICO entities in Malaysia (Honda Malaysia Sdn. Bhd. And Honda Autoparts Manufacturing (M) Sdn. Bhd., and in Indonesia (P.T. Honda Prospect Motor) upon the effectivity of this Order".

Section 3. Annex "B" of Executive Order No. 87 dated 18 March 2002 is hereby amended to read as follows:

ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED HONDA AICO SCHEME

AHTN Code	Model/Type	Product Description	Part No.	Source Country (AICO Company)	Applicable AICO Preferential Tariff (%)
8703.90.26A 8703.90.28A	Honda Civic	Various Parts/ Components Face, Fr Bumper	71101-SSA-0000MA	Malaysia (Honda Malaysia Sdn. Bhd and Honda Autoparts Manufacturing Sdn Bdk)	3
8703.90.26A 8703.90.28A	Honda Civic	Face RR BPR	71501- SSA-0000MA	Malaysia (Honda Malaysia Sdn. Bhd and Honda Autoparts Manufacturing Sdn. Bhd.	3
8703.90.26A 8703.90.28A	Honda Civic	Various Parts/ Components: Wheel Assy, Strg Pad Comp Strg Wheel	78500-SV4-0030 78530-SV4-0030	Indonesia (P.t.Honda Prospect Motor)	3

Section 4. This Executive Order shall take effect after fifteen (15) days following its publication in two (2) newspapers of general circulation.

DONE, in the City of Manila, this 23rd day of July, in the year of Our Lord Two Thousand and Four.

(SGD.) GLORIA MACAPAGAL-ARROYO

President of the Philippines

By the President:

(SGD.) ALBERTO G. ROMULO

Executive Secretary