MALACANANG
Manila
BY THE
PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER
NO. 491
EXECMPTING MOTOR VEHICLES OF EMBASSY OFFICIALS AND MEMBERS OF THE DIPLOMATIC
CORPS AND INTERNATIONAL ORGANIZATIONS, FILIPINO DIPLOMATS, RECALLED PERSONNEL OF
THE DEPARTMENT OF FOREIGN AFFAIRS (DFA) OR ANY OFFICER OR EMPLOYEE RETURNING
FROM A REGULAR ASSIGNMENT FOR RE-ASSIGNMENT TO THE DFA HOME OFFICE, GOVERNMENT
OFFICES WHO WERE GIVEN THE PRIVILEGE TO IMPORT MOTOR VEHICLES TAX AND DUTY FREE
UNDER RELEVANT LAWS AND INTERNATIONAL AGREEMENTS, INCLUDING FOREIGN LOANS AND
DONATIONS, AND OTHER SIMILARLY SITUATED INDIVIDUALS, FROM THE IMPOSITION OF
ADDITIONAL SPECIFIC DUTY OF P500,000.00 UNDER EXECUTIVE ORDER NO. 418, S. 2005,
UPON THE SALE OR TRANSFER OF SAID VEHICLES TO NON-TAX EXEMPT INDIVIDUALS IN THE
LOCAL MARKET
WHEREAS,
it is the policy of the State to maintain a balance between development and
environment protection;
WHEREAS, there is
a need to mitigate the impact of used motor vehicle trading on air quality and
road safety;
WHEREAS, to
carry out this purpose, EO 418, dated April 4, 2005, ordered the imposition of
an additional specific duty of Php 500,000.00 in addition to the regular rates
of import duty, on the articles specifically listed in Annex "A" thereof, as
classified under Section 104 of the Tariff and Customs Code of 1978;
WHEREAS, embassy
officials, members of the diplomatic corps and international organizations, and
similarly situated individuals, are allowed to bring motor vehicles into the
Philippines tax and duty free under the Vienna Convention, the Asian Development
Bank (ADB) Headquarters Agreement, and other relevant international agreements;
WHEREAS, Filipino diplomats,
recalled personnel of the Department of Foreign Affairs (DFA) or any officer or
employee returning from a regular assignment for reassignment to the DFA home
office are allowed to bring motor vehicles into the Philippines tax and duty
free under Republic Act No. 7157;
WHEREAS, the Government
of the Republic of the Philippines has acquired motor vehicles brought into the
country tax and duty free under relevant international agreements including
foreign loans and donations;
WHEREAS, some of these
vehicles were brand new when withdrawn from customs warehouses and first
operated on Philippine roads, therefore, subsequent transfer thereof would not
increase the environmental risk that EO 418 aims to curb;
WHEREAS, the imposition
of additional duties of P500,000.00 on said motor vehicles shall effectively
prevent the disposition of the same, whether by sale or by donation; thereby
rendering their exemption meaningless by placing them in a more disadvantageous
position;
WHEREAS, Section 401 of the
Tariff and Customs Code of 1978, as amended, empowers the President of the
Republic of the Philippines to increase, reduce, or remove existing rates of
import duty, as well as to modify the form of duty and the tariff nomenclature
under Section 104 of the Code;
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 the exemption of motor vehicles
of embassy officials, members of the diplomatic corps and international
organizations, Filipino diplomats, recalled personnel of the Department of
Foreign Affairs (DFA), or any officer or employee returning from a regular
assignment for reassignment to the DFA home office, motor vehicles of government
offices, acquired duty free under international agreements including loans and
donations, and similarly situated individuals, from the imposition of additional
specific duty of P500,000.00 under E.O. No. 418, s. 2005, upon the subsequent
sale or transfer of said vehicles to non-tax exempt individuals in the local
market.
All other Presidential issuances,
administrative rules and regulations or parts thereof, which are inconsistent
with this Executive Order are hereby revoked or modified accordingly.
This Executive Order shall take
effect thirty (30) days following its complete publication in two (2) newspapers
of general circulation in the Philippines.
Done in the City of Manila, this 12th
day of January, in the year of Our Lord, Two Thousand and Six.
Signature of the President
By the President:
EDUARDO R. ERMITA
Executive Secretary
