Index: Python/ast.c
===================================================================
--- Python/ast.c	(revision 43165)
+++ Python/ast.c	(working copy)
@@ -189,11 +189,11 @@
     node *ch;
     struct compiling c;
 
-    if (flags && flags->cf_flags & PyCF_SOURCE_IS_UTF8) {
-        c.c_encoding = "utf-8";
-    } else if (TYPE(n) == encoding_decl) {
+    if (TYPE(n) == encoding_decl) {
         c.c_encoding = STR(n);
         n = CHILD(n, 0);
+    } else if (flags && flags->cf_flags & PyCF_SOURCE_IS_UTF8) {
+        c.c_encoding = "utf-8";
     } else {
         c.c_encoding = NULL;
     }