The Bureau of Customs (BOC) is set to implement the ASEAN electronic Certificate of Origin (e-CO) following the issuance of Customs Memorandum Order (CMO15-2019) which provides guidelines on the operational procedures in implementing e-CO.
The Order was issued pursuant to the Operational Certification Procedure (OCP) of the ASEAN Trade in Goods Agreement (ATIGA) and in compliance with the Customs Modernization and Tariff Act (CMTA). It aims to facilitate the application, processing, issuance, and transmission of e-CO for export products and the receipt of e-CO for imported products by utilizing the TradeNet system (tradenet.gov.ph).
The e-CO refers to the ATIGA Form D which is an international trade document attesting that goods in a particular export shipment were wholly obtained, produced, manufactured, or processed in a particular country. It will be transmitted electronically between ASEAN Member States (AMS) through the ASEAN Single Window (ASW).
Meanwhile, the TradeNet will cover the functions of the Philippine National Single Window (NSW). It will serve as an automated permit, licensing, and clearance system integrated into one platform for 66 Trade Regulatory Government Agencies (TRGAs) and 10 economic zones.
Application and Submission of e-CO to ASEAN Members States (AMS)
To access the TradeNet system, exporters and importers shall create TradeNet Account and company profile with their respective usernames and passwords. Once the Pre-Evaluation Report (PER) of export product is completed by the authorized Customs personnel, it shall be uploaded to the TradeNet system, along with the List of Pre-Evaluated Goods of each newly approved applications for reference by all ports.
The exporters must then submit their application for outbound e-CO through the TradeNet system and attach all documentary requirements by uploading it to the system. If approved, the exporters will receive an email containing a downloadable and printable file for the e-CO. Otherwise, the Exporter/s will be informed of the reason for disapproval through email and may file another application for e-CO.Since the full electronic sharing of e-CO among AMS is not yet operational and while the AMS are addressing all technical failures, “the Exporter shall download then print the e-ATIGA Form D, place his or her signature in the appropriate space, and submit the system-generated ATIGA Form D to the Bureau (BOC) for manual execution of signature and seal”.
The Export Coordination Division of the BOC is mandated to submit the approved e-CO to the ASW Gateway. The ASW will in turn send the e-CO to the importing AMS, while the latter must notify the BOC of the utilization status of the e-CO.
Pilot Testing and Full Implementation of e-CO
To commence the implementation of the Order, a Pilot Testing on processing and issuance of e-CO using the TradeNet platform shall be conducted in all ports and sub-ports. During the live testing, the Exporters are required to apply for the issuance of CO both electronically throughtradenet.gov.ph and manually using the Paper ATIGA Form D. The Order explains that it is a precautionary measure in case the outbound e-ATIGA Form D fails to transmit through the ASW Gateway to the receiving AMS.
The Deputy Commissioner for Management Information System and Technology Group is authorized to declare the start of full implementation of the ASEAN e-CO. As such, no outbound and inbound Paper ATIGA Form D shall be processed and accepted, except for valid circumstances which include system downtime and loss of network connectivity exceeding two hours.-ARB
PHILEXPORT Region 3 (Pampanga Chapter) now endorses Travel Tax Exemption (TTE) applications of its members in Region 3 (Central Luzon). To facilitate the processing of TTE applications, the Technical Working Group on EO 589 approved the request of PHILEXPORT-NATIONAL for the additional signatories of its chapter in Pampanga. PHILEXPORT-R03 now endorses TTE applications directly to the Export Development Council which monitors and oversees the implementation of the Executive Order.
Exporters who will travel abroad to participate in international trade fairs and exhibitions, promotion and marketing activities of Philippine export products can avail the TTE incentives under EO 589.
Region 3 Exporters may download TTE application form at the EDC website (www.edc.net.ph) and submit to PHILEXPORT R03 at Deco Central, Bldg., N3679 C.M. Recto Highway, Clark Freeport Zone, Pampanga. Telephone numbers (045)599.6214/ 599.5170 Mobile No. 0917.6214758 or email at firstname.lastname@example.org
As the fourth industrial revolution or Industry 4.0 gain momentum, the National Wages and Productivity Commission (NWPC), an attached agency of the Department of Labor and Employment (DOLE), focused its 2018 National Productivity Conference on people-centric technologies & innovation for MSMEs. DOLE Undersecretary Ciriaco Lagunsad, III pointed out that the on-going concern on inflation can also be addressed by improving the productivity of producers which will influence prices. As such, he emphasized the need to embrace new technologies, but put people in control of technology.
Assistant Secretary Rafaelita Aldaba of the Department of Trade and Industry (DTI) supports the NWPC as she said that human capital is crucial for innovation and entrepreneurship. DTI’s approach to implement Industry 4.0 is through the Inclusive Industrial Innovation Strategy that aims to link the manufacturing sector with agriculture and services. Such links can be realized when there are regional inclusive innovation centers where government, research agencies, academe and industry collaborate for improved competitiveness.
Asian Development Bank’s Director of Development Economics and Indicators Dr. Rana Hasan confirms that technology increases incomes, contrary to the fear of many that jobs will be lost with the use of artificial intelligence (AI). He said that AI cannot be stopped as it is already here. Education, training and social protection such as unemployment insurance are necessary to cope with these new technologies. (EZM)
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.
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.
The PHILEXPORT-Cebu Chapter can now endorse applications of its members for travel tax exemption. The Technical Working Group on EO 589 Exempting Exporters for Travel Tax Exemption (TTE) recently approved the request of PHILEXPORT-National for the additional signatories from PHILEXPORT- Cebu. This is to facilitate the release of TTE certificate by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA). PHILEXPORT-Cebu may now endorse TTE applications directly to the Export Development Council which monitors and oversees the implementation of the Executive Order.
Under EO 589, exporters who will travel abroad to participate in international trade fairs and exhibitions are entitled to TTE.
Exporters in Cebu may contact PHILEXPORT-Cebu at telephone numbers (032)254.4333/ 254.9266/254.433 or email at email@example.com
President Rodrigo Duterte has signed into law the Ease of Doing Business (EODB) and Efficient Government Service Delivery (EGSD) Act of 2018. The new law will shorten the number of days in processing permits and licenses of all business-related transactions in the Philippines.
Signed on May 28, Republic Act (RA) No. 11032 also includes stricter rules like the two-strike policy that any violation will warrant penalties and liabilities for government officials who fail to issue permits in the given period.
The provisions of the law were highlighted in the 6th Annual Ease of Doing Business Summit recently held at the Philippine International Convention Center in Pasay City.
RA 11032 amends Republic Act No. 9485, otherwise known as the Anti-Red Tape Act of 2007.
Under this Act, businesses can expect streamlined processes; reduced processing times from all government agencies, including government-owned and controlled corporations (GOCCs). Government agencies shall be made to comply with the prescribed processing time: three working days for simple transactions, seven working days for complex transactions, and 20 working days for highly technical transactions.
Apart from streamlining, the law also provides for the creation of a central business portal that will receive and capture application data on business-related transactions, while a Philippine business databank will provide LGUs and national government agencies access to information to verify the validity and existence of businesses. With this, businesses are not required to submit the same documentary requirement previously submitted
It is therefore necessary for regulatory agencies to undertake the RIA process which involves problem definition, setting the objectives, identifying options (from doing nothing or status quo to other options), impact analysis (cost-benefit analysis), comparing options, and implementation and monitoring.
World Bank strongly suggests that regulatory agencies must subject any proposed regulation to the regulatory impact assessment (RIA), a tool that ensures the quality of regulations through a rigorous, well-defined and evidence-based analysis.
RIA is a process and a document to “clean” the rules particularly those involving high regulatory risks that reduce investment and competition; high transaction costs due to a complex, multi-layered, often arbitrary rules that are vulnerable to corruption; too little market regulation, poor enforcement, and under-institutionalization in policy areas as consumer and environmental protection; and checks and balances, such as an effective judiciary which are weak, harming new entrants.
In a recent training on RIA, World Bank emphasizes that a good regulation should be focused on policy problem, introduced when necessary and proportionate to the risk posed by the policy problem, accountable to those affected by the regulation and those who confer regulatory authority, transparent or consultation based, and consistent, taking into account existing rules and regulations.
Corollary to this, the Office of the President issued Memorandum No. 27, series of 2017 which, directs among others, the NEDA to promote among regulatory agencies the use of RIA and other related tools. In Turn, NEDA now implements the Program on Modernizing Government Regulations (MGR) in cooperation with the Development Academy of the Philippines.
The Philippine Ports Authority (PPA) issued Memorandum Circular (MC) No. 07-2018 that approves the 7% increase of cargo handling tariff for international containerized and non-containerized cargoes at the two international terminals in Manila. The new rate takes effect on June 5, 2018.
PPA’s approved rate is lower than the 8.7% hike requested by the terminal operators, Asian Terminals, Inc. (ATI), which operates the Manila South Harbor, and the International Container Terminal Services, Inc. (ICTSI), which operates at the Manila International Container Terminal (MICT).
Under their contracts with PPA, both terminal operators may file for a rate hike every two years. The last cargo-handling tariff rate adjustment was in 2015, when PPA granted an 8% rate increase. Their petitions are in keeping with PPA Administrative Order 02-2018 which prescribes the revised methodology and formula for adjustment of Cargo Handling Tariff.
Prior to the approval of the rate adjustment, the Export Development Council (EDC) expressed its opposition to the original 8.72% request using the Consumer Price Index (All Items) National Capital Region. The CPI (All items) Philippines shall be the factor of adjustment as provided in Section 7 of PPA AO 02-2018. If applied, the rate hike should have been 6.52%.
Hence, for loaded Container Yard/Full Container Load is charged at US$ 105.457 for 20 ft container and US$ 147.517 for 40 ft. container. Empty Container is charged at US$ 88.646 for 20ft and US$ 114.203 for 40ft. Schedule of Cargo Handling Tariff at Manila International Container Terminal and South Harbor can be downloaded at PPA website at www.ppa.com.ph