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Mandatory training for new exporters recommended

PEDP 2018-2022 Stakeholders Engagement in CALABARZON
“First time exporters need to undergo training and seminars before they can apply for Client Profile Registration System (CPRS),” says CALABARZON experienced exporters  This was aired during the Stakeholders Engagement to implement the Philippine Export Development Plan 2018-2022. Existing exporters advise aspiring exporters to first  learn, not only the market requirements, but also the Philippine government’s requirements and procedures before making their first shipment,  thus  sparing them of the problems that the former have encountered.

The CPRS is an application that  registers exporters to access the e2M system of the Bureau of Customs. Export transactions cannot be processed unless the exporter is registered in the CPRS.

Capacitating exporters through  trainings and seminars on domestic and international regulations, policies and trends  will also help exporters exploit existing and prospective bilateral, regional, and multilateral trading agreements.

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Bill separates the regulatory and commercial functions of PPA

House Bill (HB) No. 8005 seeks to separate the regulatory and commercial functions of the Philippine Ports Authority (PPA) and create a new port agency called Philippine Ports Corporation (PHILPORTS) will focus on developing, managing, and operating public ports.

The bill also proposes to transfer the regulatory functions of the PPA to the Maritime Industry Authority (MARINA).

Representative Arthur Yap, author of HB 8005, aims to reform the country’s ports administration to avoid conflict of interest arising from regulatory agencies vested with both regulatory and development or commercial functions.

If enacted, PHILPORTS will collect port fees and dues approved by MARINA, which will fund port development, modernization, and expansion, among others.
PHILPORTS will become more of a service provider than a revenue generating entity. It is not envisioned as earning revenue from cargo handling and/or any service providers contracted by PHILPORTS.

As such, it shall continuously give utmost priority and importance to public service delivery and promotion of public interest. It also addresses the problems of port users (domestic shippers, exporters and importers) such as low service quality, inefficient port operations and ever-increasing port charges.

Under HB 8005, it will be governed by a 15-member Board, which includes representatives from both the government and the private sector.
The Export Development Council together with other stakeholders has been stressing the need for such policy reform to lower the cost of port services for shippers that will eventually benefit the consumers.

To download a copy of the bill, please click House Bill No. 8005.
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Heightened Industry-Government-Academe partnership increases employment and improve international competitiveness

“Since the inception of the industry-government-academe linkage, there is now greater participation and partnerships between companies and universities in the implementation of this reform at ground level.”  This was reported by Mr. Sergio R. Ortiz-Luis, Jr., president of the Philippine Exporters Confederation (PHILEXPORT) and Vice-Chair of the Export Development Council (EDC), during the  recently concluded 8th National Education Forum.

The industry leader cited both the BPO (Business Process Outsourcing) and the Electronics industries as models for industry-government-academe partnership. They have been adopting and implementing the said reform in order for them to address their jobs-skills mismatch and make their respective industries become more globally competitive.

To date, The BPO employs 1.3 million people last year and is expected to grow up to 1.7 billion within the year, while the electronics industry employs 3.2. million direct and indirect workers.  In addition, both industries have established work immersion and internship programs as well as various industry-based programs that promote employment.

Ortiz-Luis, Jr, later explained that responding to the global realities and domestic demands would require a balance between what is being demanded by the labor market and what is being supplied by the education and training sector. He added that there is need to respond to the challenges posed by globalization, trade liberalization, information and technological advancement, international cooperation and agreements.

He continued that “globalization, includes among others, freer and borderless movement of capital goods, services, technology, information and human resource development between and among countries. Thus, the rapid change in information and communication technology directly impacts on the way work is being organized and executed, how products are being manufactured and shipped, and how systems and processes are implemented”.

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PEDP 2018-2022 Stakeholders Engagement Series takes off in General Santos City

The Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) and the Export Development Council (EDC) will hold a series of Stakeholders Engagements on the Philippine Export Development Plan (PEDP) 2018-2022 in Regions. It aims to present the PEDP 2018-2022 and solicit commitments among stakeholders to implement the Plan. The first Stakeholders Engagement was conducted in General Santos City and Koronadal City for Region 12 last July 25-26, 2018.

Government agencies in Region 12 agreed on reported programs to align to the PEDP 2018-2022 Strategies. The agencies are committed on implementing the strategies as well as developing new programs that will help increase their region’s exports.

The Stakeholders Engagements will also serve as a venue to ensure an efficient, responsive and well-coordinated strategies among the concerned government agencies and entities that are directed to collectively work, review, institute reforms, and implement all relevant policies in harmony with the PEDP, Micro, Small and Medium Enterprise (MSME) Development Plan and the Philippine Development Plan (PDP) to boost export growth.

The succeeding Stakeholders Engagements will be held in NCR and Region IV-B on August 15; Regions IV-A on August 31; Region VIII on September 5; Region X on September  7; Region XI on September 11; Region III on September 19; and Region VII on September 27.

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DTI implements 7Ms for competitive MSMEs

The Department of Trade and Industry (DTI) through the (Micro, Small and Medium Enterprise Development (MSMED) Council  implements the 7Ms- Mindset Change, Mastery, Mentoring, Money, Machine, Market Access, and Models of Business, a framework which were introduced and supported during the ASEAN Economic Community (AEC) meeting last year. MSMEs shall be assisted to develop a positive Mindset, to gain Mastery of their business, to provide quality business Mentorship, to facilitate access to Money, to improve access to domestic and international Markets, to provide quality Machines, and to be exposed to innovative Models of business.

To achieve the strategic goals specified in the MSME Development Plan 2017-2022, the MSMED Council has laid anchor programs to be implemented. These programs and other initiatives were presented during the National MSME Summit held last 10 July 2018 in Clark Pampanga. The summit was attended by entrepreneurs, industry leaders, enablers and other stakeholders nationwide. President Rodgrigo Duterte also graced the event to show his administration’s continuing support to MSMEs.

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Bureau of Customs to form multi-agency unit to address port issues

Customs Commissioner Isidro Lapeña announced that the Bureau of Customs (BOC) will create a multi-agency body composed of government agencies and port stakeholders and users that will address issues hounding the private sector.

Various stakeholders discussed the recommendations and action plans for the implementation of the Terminal Appointment Booking System (TABS), the Anti-overloading Act, port congestion, turnaround time of trucks, return of empty containers, and issues with international shipping lines.

On TABS, the web-based booking platform for trucks at Manila International Container Port and Port of Manila, port users to extend the early arrival margin to three hours, and improve the system to promote transparency.

On Anti-overloading, stakeholders recommended the extension of moratorium period of 6 months on the implementation of the maximum Gross Vehicle Weight (GVW) for Code 12-2 and Code 12-3. The stakeholders views that the law is inconsistent and not implemented properly because of redundancy of weighing exercises. It was proposed that there should be a mandatory weighing of laden containers prior to exit from the yards. Meanwhile, for long term solution, stakeholders recommend the amendment of the law’s implementing rules and regulations to increase the maximum allowable GVW.

On port congestion, multi-sectoral body is proposed to determine and declare any port congestion. Also, for overstaying of empty containers, stakeholders recommended to shorten the allowable stay of empties from 90 days to 60 days.

Other important recommendations are the following: (1) International Shipping Lines to put up or lease their own depots outside Metro Manila; (2) PEZA to possibly dedicate a space and designate a facility for the empty containers near to them; (3) International Shipping Lines to remove the unwarranted charges by specifying absolute container depot fees when returning empty containers; (4) BOC to initiate the implementation of rules and regulations to regulate the shipping lines.

To address the high cost of origin and destination charges of international shipping lines, the Export Development Council (EDC) together with other stakeholders endorsed a draft bill entitled “An act establishing guidelines for the application of local charges (origin and destination fees) imposed by international shipping lines to comply with existing laws and international standards (INCOTERMS)” to the House of Representatives Committee on Economic Affairs.