EXECUTIVE ORDER NO 704 January 22, 2008

AMENDING SECTION 4 OF E.O. 486 DATED 12 JANUARY 2006 (LIFTING THE SUSPENSION OF THE APPLICATION OF THE TARIFF REDUCTION SCHEDULE ON PETROCHEMICALS AND CERTAIN PLASTIC PRODUCTS UNDER THE COMMON EFFECTIVE PREFERENTIAL TARIFF (CEPT) SCHEME FOR THE ASEAN FREE TRADE AREA (AFTA))

WHEREAS, E.O. 486 issued on 12 January 2006 provides for the lifting of the suspension of the Common Effective Preferential Tariff (CEPT) tariff reduction schedule on petrochemicals and certain plastic products and the reversion of the CEPT rates on these products to EO 161 (s.2003)levels once the naphtha cracker plant is in commercial operation;

WHEREAS, there are other technologies other than naphtha cracking that could be used in the manufacture of ethylene, propylene and other monomers;

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 (Presidential Decree No. 1464) as amended, do hereby amend Section 4 of E.O. 486 to read as follows:

SECTION 4. The Department of Trade and Industry, in coordination with the National Economic and Development Authority, the Department of Finance, the Tariff Commission and the Bureau of Customs, shall promulgate the Implementing rules and regulations that will govern the reversion of the CEPT rates on petrochemicals and plastic products to EO 161 (s.2003) levels once the naphtha cracker plant OR ANY PLANT THAT USES OTHER TECHNOLOGY FOR DOMESTIC PRODUCTION OF ETHYLENE, PROPYLENE AND OTHER MONOMERS is in commercial operation.

This Executive Order shall take effect immediately following its complete publication in two (2) newspapers of general circulation.

DONE in the City of Manila, this 22nd day of January in the year of our Lord, Two Thousand Eight.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sgd.) EDUARDO R. ERMITA

Executive Secretary