BIR-ICC repealed

The Bureau of Internal Revenue Import Clearance Certificate (BIR-ICC) has been repealed by Department Order No. 11-2018 of the Department of Finance.

Importers and customs brokers  accreditation will now be processed solely by the Bureau of Customs (BOC) to simplify the process.

DOF Secretary Carlos Dominguez, who signed the Order last 7 February 2018, noted that the move is pursuant to Section 1200 of Republic Act 10863 or the Customs Modernization and Tariff Act (CMTA).

Instead, the BOC shall provide the BIR with a list of accredited importers and customs brokers for post-accreditation validation of tax compliance. On the other hand, the BIR shall notify immediately the BOC if there is a case of tax deficiency and non-compliance of accredited importers and customs brokers.

To implement this Order, the BOC and BIR are tasked to issue relevant orders and administrative issuances.

The Export Development Council welcomes this policy decision as it had recommended the removal of BIR-ICC which required many documents and caused delays in the accreditation of importers and brokers. This initiative is seen as putting in action one of the 10-Point Socioeconomic Agenda of President Rodrigo Duterte which includes enhancing competitiveness and promoting ease of doing business.

Download Department Order NO. 011-2018

Innovation expert: Know your customers to produce value-added exports

“Know your customers better to deliver value-added export products. People today are looking for outcomes and experiences much more than products and services”. This is the main statement of Professor Paris de l’Etraz, Chairman of Applied Innovation Institute during his speech in the recent National Export Congress 2017.

He further said that “Innovative compa-nies are not dealing with products. Most of them are dealing with creating relation-ships, engaging and delivering experien-ces to their custom-ers”,

Professor de l’Etraz emphasized that 90% of all successful ideas today are improvements of something that already exists. He added that decision making needs to move from gut feel and instinct to data-driven decisions.

The speaker included the following advice on exports:

1. Move from commodities to “value-added” products, the companies that are exporting the most have done this well.

2. Customers today are moving from buying products to buying experiences and outcomes

3. Think globally as a “Firm” and as a “Country”, and take your story abroad.

4. Train your people to deliver value-added work.

5. Collaborate with your peers to make “Grown in the Philippines” or “Made in the The Philippines” a value-added reference.  –Piercy Kieth Cezar

Government to expedite accession to Istanbul Convention for ATA Carnet

Relevant government agencies have concurred to the urgency of the Philippine accession to the Istanbul Convention which will implement the ATA Carnet System.

The ATA Carnet is an international scheme that will allow tax-free and duty-free importation of commercial samples, professional equipment and articles for presentation or use in trade fairs, shows, exhibitions without customs formalities. It will also allow traders to use Carnet, a single document of goods that will pass through several customs territories and will be valid up to one (1) year. Hence, traders will save costs and time in clearing goods at the border.

Relevant agencies such as the Department of Trade and Industry (DTI) and Department of Finance (DOF) are urged to submit their respective Certificates of Concurrence (COC) to the Department of Foreign Affairs (DFA) by December 2017.

The DFA – United Nations and International Organizations (UNIO) leads in the preparation of the Instrument of Accession for the President’s approval. Director Roberto Manalo of the DFA-UNIO who serves as the chair of the technical working group on ATA Carnet, underscored the need for government agencies to support the promotion of export development through the ATA Carnet system.

He added that this is also in compliance to the Office of the President Memorandum Circular No. 27 issued last 6 October 2017 which directs government agencies to “strengthen the implementation of the Philippine Export Development Plan (PEDP).” –Asnia R. Bayabao

Sigasig Caravan urges government, Educators & Industry to collaborate

The first regional education caravan to roll out the Strengthening of Industry-Government-Academe Linkage For Inclusive Growth (SIGASIG), was recently conducted in Iloilo City covering Regions 6,7 and 8.

SIGASIG caravan aims to sustain the linkage between the academe and the industries all over the country to better equip graduates with skills required by the industry. Skills matching and talent upgrading strategies to fill the gaps were discussed.  In collaboration with government and industry; curriculum should be upgraded and faculty immersion shall be pursued in industry.

The Philippine Chamber of Commerce and Industry, the Export Development Council and the Pampanga Chamber of Commerce conducted this caravan with the Iloilo Chamber of Commerce and the PHINMA University of Iloilo, as a concrete support to the Philippine Development Plan 2017-2022 which targets an improved global competitiveness and inclusive growth through better quality education.- Grace T. Mirasol

BOC employees to act on documents within 5 days

Bureau of Customs officials and personnel are now mandated to take action within five (5) days of receipt of official communication from its internal and external stakeholders to facilitate processing of documents.

Pursuant to Customs Memorandum Order (CMO) 24-2017, employee shall acknowledge receipt of the documents and act upon it within 5 days or refer it to appropriate office if it’s not within its jurisdiction.

The CMO rendered the affected existing Citizen’s Charters of BOC relevant offices obsolete and shall be revised, reprinted and reposted. It also provides that non-compliance of employees may be a ground for administrative and disciplinary sanctions for erring employees.

CMO 24-2017 was signed by Commissioner Isidro Lapeña last 23 October 2017 in response to the directive of President Rodrigo Duterte to all government agencies to expedite processing of letters, requests and permits.

It also cited the Anti-Red Tape Act of 2007 (Republic Act (RA) 9845),  Code of Conduct and Ethical Standards from Public Officials and Employees (RA 6713) and SONA Directive No. 2017-0010 issued by Cabinet Secretary Leoncio V. Evasco, Jr. last 7 September 2017 which directs “All Department Secretaries and Agency Heads to ensure that all Directors and its personnel in their respective agencies act on letters and requests from the public within 15 working days, subject to existing laws, rules and regulations.- Asnia R. Bayabao

DTI conducts a Roadshow to Seamless Philippine Logistics

The Department of Trade and Industry’s Competitiveness Bureau conducts a Roadshow to Seamless Philippine Logistics: Analysis of Logistics Performance to present the results of the survey completed last June 2017.

Logistics Efficiency Indicators (LEI) Assessment Project was launched by The Department of Trade and Industry’s Competitiveness Bureau, in partnership with the World Bank-International Finance Corporation (WB-IFC), the Board of Investments (BOI) and the Export Development Council (EDC).

The LEI Project is designed to develop measurement and baseline assessment of Philippine logistics cost, time efficiency and reliability of transporting goods/cargoes and services, which is critical for a meaningful policy formulation for the logistics and supply chain management sectors.

Results of the survey will be used in the Logistics Performance Index (LPI) by World Bank. LPI is an interactive benchmarking tool created to help countries identify the challenges and opportunities they face in their performance on trade logistics and what they can do to improve it.

DTI also invited their partners to present the current projects and advocacies that will highlight the government and private sector’s initiatives to improve the country’s overall logistics capability.

The roadshow was held in Puerto Princesa and La Union last September. More sessions will be held in Bacolod, Tuguegarao, Tacloban, Tagaytay and Bataan in October & November. Traders, especially exporters who want to participate may contact the DTI-SCLMD at +632 899 6247 or email at: sclm@dti.gov.ph / dti.sclmd@gmail.com. –Maria Jobellieza A. Alzate

Mindanao and Cebu exporters input to PEDP 2018-2022

Mindanao and Cebu exporters provided inputs to the next Philippine Export Development Plan (PEDP) 2018-2022

The exporters underscored the need to increase government budget to finance exporters’ participation in international trade fairs and have bigger and more presentable Philippine booths to be at par with exporters of other ASEAN countries.

They also requested to intensify government information dissemination programs to communicate new and repealed regulations to prevent confusion among government officials and exporters regarding export clearances.

They also need information on potential local suppliers. DTI encouraged exporters to always visit the DTI website (http://www.tradelinephilippines.dti.gov.ph/), specifically Tradeline Philippines which contains trade data and a facility to match would-be and existing exporters with potential foreign buyers and local suppliers.

Other recommendations include Filipino product branding, lowering of logistics and power costs, addressing the issue on the overlapping of regulations and automating government transactions.

These inputs were gathered during the recent Focus Group Discussions (FGD) for the PEDP 2018-2022 in Cebu and Davao attended by various sectors from handicraft, shell, agrimarine products, food, banana, cacao, furniture, lifestyle products and activated carbon. The next FGD will be conducted with the services sector specifically IT-BPM, audiovisual, animation, franchising and retailing and tourism and travel-related services. –Asnia R. Bayao

National Education Forum strengthens industry-academe-government ties

Strengthening Industry – Government-Academe Linkage towards Sustainable and Innovative Growth (SIGASIG) was this year’s theme for the 7th National Education Forum. TESDA Director General Guiling Mamondiong said that it was high time for the industry, government and academe to collaborate and work together as growth and economic accelerators in the country. He noted that by working together and in harmony, the country will be able to achieve global competitiveness. He said that TESDA will endeavour on Technical-Vocational Education and Training (TVET) for global competitiveness. He added that his agency is closely collaborating with the various industries to develop and promulgate skills they required.

On the other hand, Asst. Secretary Amuerfina Reyes informed that human capital development is integral to economic growth and development and that human capital accumulation through education and training promotes economic growth by enhancing labor productivity and by fostering technological innovation and adaptation.

This was confirmed by Mr. Sergio Ortiz-Luis, Jr., when he said “we are in an age where sustained competitiveness in the global economy will depend on the technological or innovation-based strengths, including the development of new products, applying new technology, incorporating best practices in the management of enterprises and developing skill levels across the full spectrum of the labor force, the academe has become a critical “stakeholder” to business bringing with it valuable resources to the table.”

The forum was organized in collaboration with the Philippine Chamber of Commerce and Industry (PCCI) Education Committee and the Export Development Council-Networking Committee on Human Resource Development (EDC-NCHRD).-Grace T. Mirasol

DTI-EMB gears up for PEDP 2018-2022

The Depart-ment of Trade and Industry (DTI) – Export Marketing Bureau (EMB) is crafting the new Philippine Export Development Plan (PEDP) for 2018-2022.

The PEDP 2018-2022 will be anchored on the Philippine Development Plan (PDP) 2017-2022, the 10-point socio economic agenda of the President and the existing PEDP 2015-2017. New export strategies and programs to boost export performance will also be adopted to achieve the export target of $122B-130B by the end of the term.

Essential to the development and crafting of the PEDP is the effective consultation among the stakeholders. Focused Group Discussions (FGDs) commenced last 25 August 2017 in the National Capital Region. The next FGDs will be in Cebu on 27 September 2017 and Davao on 29 September 2017.-Piercy Kieth Cezar

EDC revises Vision and Mission

The Export Development Council (EDC) issued Resolution No. 04, series of 2017 adopting the revised EDC Vision which envisions “Philippines as a a competitive, intelligent, and innovation-driven exporting nation”. To reach this vision, the EDC adjusted its mission to “Nurturing an environment for exporters to thrive, enabling them to contribute to inclusive, sustainable, and equitable growth”.

The resolution also includes the adoption of EDC core values which are: trailblazing, an innovative key player in the export arena; collaborative, as a public-private partnership, consultation among relevant stakeholders is observed; and resolute which signifies EDC’s strong determination to achieve its goals.

As a response to the strategic external trade policy regime emphasized in the Philippine Development Plan (PDP) 2017-2022, EDC looked to develop the abilities of Philippine enterprises to efficiently compete in the global markets through engaging in policy reforms for trade facilitation and ease of doing business. The vision, mission, and core values serve as a framework on how the different government programs, activities and projects (PAPs) will be aligned with the Philippine Export Development Plan (PEDP) 2018-2022. -Ma. Divine Grace T. Derez