Memorandum Order No. 73 of the President Arroyo dated September 12, 2002

2a

MAYNILA, PILIPINAS BANKING SERVICES SECTOR

CIRCULAR-LETTER

TO : All Authorized Agent Banks

Order No. 73 of the President dated September 12, 2002 entitled "PROVIDING (CDP), THE COMMERCIAL VEHICLE DEVELOPMENT PROGRAM (CVDP) AMENDED BY MO 473" which are CDP, CVDP, or MDP participants, attached is a copy of Memorandum AMENDMENTS TO MO 51 S. 2002.AMENDMENTS TO M.O. 346. AMENDING THE GUIDELINES ON THE CAR DEVELOPMENT PROGRAM AND THE MOTORCYCLE DEVELOPMENT PROGRAM (MDP) AS For the information of all authorized agent banks and their importer-clients

Please be guided accordingly.

ANDRES I. RUSTIA Sector-In-Charge

September 27, 2002

MAG-IMPOK SA BANGKO

MALACANANG

Manila

MEMORANDUM ORDER NO. 73

PROVIDING AMENDEMENTS TO MO 51 S. 2002, "AMENDMENTS TO M.O. 346

AMENDINGTHE GUIDELINESONTHECAR DEVELOPMENT PROGRAM (CDP), THE COMMERCIAL VEHICLE DEVELOPMENT PROGRAM(CVDP),ANDTHEMOTORCYCLE PROGRAM (MDP)" AS AMMENDED BY MO 473 DEVELOPMENT

WHEREAS, the Philippines, as member of the Worid trade Organization (WTO), has

counter to the different Agreements under the auspices of the WTO to which the Philippines committed to eliminate all laws, provisions, rules, regulations. and guidelines that may run is a signatory, such as the Agreement of Trade-Related Investment Measures (TRIMS):

rules, regulations, and guidelines that provide for local content (LC) and net foreign exchange earnings (NFEE) requiremcnts as they arc considered contrary to the provisions thereof; WHEREAS, the Agreement on TRIMS mandates the elimination of laws, provisions

period of 31/2 years from. and after, 1 January 2000. the original expiry date of the transition period for the elimination of 'TRIMS. subject to a required phase-out schedule: Goods (CTG) for the extension of the applicability of the subject TRIMS for an additional WHEREAS, the Philippines was granted formal approval by the Council for I'rade in

Section 7.1 of Chapter 1 (CDP), Section 16 and 16.4 of Chapter I1 (CVDP) and Section 24.1 WHEREAS, in order to amplify the rates prescribed in the CDP. CVDP. MDP under

No. St: of Chapter III (MDP). Memorandum Order No. 51-A shall supercede Memorandum Order

NOW,THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the

Order No. 51 dated 22 January 2002 and order the following: Philippines, by virtue of the powers vested in me by law, do hereby amend Memorandum

SECTION 1. Section 7.1 Chapter I (CDP), Section 16.1 & 16.4 Chapter II (CVDP) and Section 24. 1 of Chapter HII (MDP) are hereby amended to read:

"Participants of the CDP, CVDP and MDP shall comply with the following iocal content requirements.

Period CD P CVDP MDP

I&I I& I1 IV VB IVC IV-V Cat.A Cat.B

Jan. T, 2003 Jan. 1, 2002 until June 30, 2002 3 1, 2002 uy 1, 2002 Dec 25 % 3 0% 35 33.750% 39.375% 28.125% 16.425% 13.688% 19.163% 16.08% 18.76% 13.40% 16.68% 19.46% 13.90% 11.839% 10.148% 8.456% 12.049% 10.328% 8.606% 28.125% 39.375% 30.6253 33.750% 26.250% Dt8T

A Qutnoir 14701 until June 30.2003

July l200

C

SEC 2. Section 10.2, 10.3 and 10.4 of Chapter I (CDP), Section 19.1 Chapter II (CVDP) and Section 26. 1 of Chapter III (MDP) are hereby amended to read:

be recorded in ledger without bonus and the foreign exchange ratio earn foreign exchange credits through the export of automotive "Participants of the CDP, CVDP, MDP will still be required to products to be able to import CKDs. The net foreign earnings shall (as a percentage of CKD import vaiue) shall be as follows:

D K2 untit Dee Cat. ( S Cat. I CDP SG Cat. H S Cat. I & II Ta CVDP Cat. HI,IV and V 51: Cat. A & B MDP [S

Tuly : 2003 20 :. 20C3 untiJue O 1S 5 E 1 30 5 : I's

are hereby repealed or modified accordingly and regulations, or parts thereof inconsistent with the provisions of this Memorandum Order SEC 3. Repealing Clause. All other executive orders. administrative orders, rules

SEC 4. Effectivity. This Memorandum Order shall take effect Immediately

Lord. Two Thousand and Two DONE in the City of Manila. this _I2th. Of _ September...in the year of Our

By the President

Executive Secretary ALBERTO G. ROMULO

POMA Outgeing - 14702 CERTIFIED COPY:

MArIanitO M. diMAAnDAL Directo' t a-/4- MBlacaner