Honda’s request was reviewed by the Tariff and Related Matters (TRM) committee which favorably endorsed the request.
Honda is seeking a three percent preferential tariff on imported automotive parts/components for CRV and five percent on parts and components for CRV and Accord.
The approval will be based on Honda’s ASEAN Industrial Cooperation (AICO) arrangement with Malaysia and Indonesia.
The AICO is a special program among ASEAN member countries where participating firms will be granted preferential tariff rates in the importation of various raw materials from their counterparts in the ASEAN.
The AICO is part of ASEAN’s goal of free trade zone and is intended to promote increased trade among member-countries.
According to government statistics, Philippine trade with Malaysia and Indonesia amounted to $4.683 million annually.
The country’s annual imports from Malaysia and Indonesia are estimated at $2.27 million and $298,000, respectively.
The Philippines is expected to earn $345,000 and $1.77 million a year from exports of components and parts to Malaysia and Indonesia.
Aside from Honda, other local companies such as Toyota, Ford and Izusu have approved AICO projects which entitle them to avail themselves of preferential tariffs.