AICO, or the ASEAN Industrial Cooperation scheme, grants preferential tariff rates to participating private firms before the ASEAN Common Effective Preferential Tariff (CEPT) scheme took effect this year.
NMPI has entered into an AICO arrangement with Thailand’s Siam Nissan Automobile Co. Ltd. under which NMPI would import from Thailand certain original equipment manufacture (OEM) automotive parts/components for Nissan Sentra passenger cars.
In exchange, Thailand will import from the Philippines complementary component parts for OEM Nissan Sunny passenger care.
Parts and components imported under the approved AICO arrangement of NMPI would be subject to an AICO rate of three percent.
NMPI’s AICO arrangement has an estimated total annual trade value amounting to $5.044 million with estimated annual exports to Thailand amounting to $1.186 million.
On the other hand, HCPI’s original AICO arrangement is with Malaysian firms Oriental Assemblers And. Bhd. (OA) and Honda Autoparts Manufacturing Sdn. Bhd.
This would involve the exchange of automotive parts and components for the Honda CRV 2 model.
However, since DRB-Oriental-Honda Sdn. Bhd. (DOH) has assumed the exclusive rights to manufacture, assemble and distribute Honda automobile, spare parts, accessories and components in the Malaysian market on July 1, 2001, there is a need to amend the title of the participating company from Oriental Assembers to DRB-Oriental-Honda Sdn. Bhd. in the AICO arrangement.
The amendment will have no effect though on the original trade volume and nominated products.
The estimated exports to Malaysia of HCPI amount to $345,000 while Philippine imports from Malaysia is estimated at $298,000.