GMA okays preferential tariff for Honda Phils.

President Arroyo has granted preferential tariff rates under the ASEAN Industrial Cooperation (AICO) scheme in favor of Honda Cars Philippines, Inc.

The preferential tariff grant to Honda Philippines was by virtue of President Arroyo’s Executive Order No. 94, dated April 9, 2002, a copy of which was obtained by The STAR yesterday.

The President stated in EO 94 that Honda Philippines qualified for this special grant of zero to five percent preferential tariff rates to be extended by both Thailand and the Philippines for this car manufacturer.

Honda Philippines operates its car manufacturing plant at the Laguna Technopark in Sta. Rosa, Laguna and its mother company is registered in Thailand as Honda Automobile Co. Ltd.

President Arroyo said the Philippines is a contracting party to the basic agreement on the AICO scheme signed in Singapore on April 27, 1996.

Under the Honda AICO arrangement, the Philippines (Honda Cars Philippines, Inc.) will import from Thailand (Honda Automobile Thailand Co., Ltd.) original equipment manufacture (OEM) automotive parts/components for Honda CR-V, light commercial vehicle (HS 8702.9010).

In exchange, Thailand will import from the Philippines complementary component parts for the OEM of Honda CR-V, light commercial vehicle.

The preferential tariff grant by the Philippines and Thailand to Honda was recommended by Rodolfo Severino Jr., secretary-general of the Association of South East Asian Nations (ASEAN) under the basic agreement of the AICO Scheme.

Severino issued the certificate of eligibility to Honda which entitled the car firm to avail itself the preferential tariff rates, local content accreditation where applicable and other privileges to be extended by the Philippines and Thailand as participating countries effective 45 days of the issuance of the AICO certificate. He issued the AICO certification to Honda last Dec. 11, 2001.