News


PNP issues temporary permits for controlled chemicals

August 07, 2015

The Philippine National Police (PNP) issued a memorandum granting the issuance of Temporary Permits to Purchase and Move Explosives/Explosive Ingredients/ Controlled Chemicals and Temporary Permit to Import and Unload, provided, application forms have been submitted to the Civil Security Group-Firearms and Explosives Office of the PNP. The permits shall be valid for three (3) months from the date of issue and shall be valid for one time use only. Further, applicants shall submit all documentary requirements within the validity period of the permits.

This trade facilitation move is the result of a series of meetings among the Export Development Council, Department of Trade and Industry (DTI), Philippine Economic Zone Authority (PEZA), Bureau of Custooms, PNP and the affected industries such as the Semiconductors and Electronics Industries in the Philippines, Inc. (SEIPI) and the Samahan sa Pilipinas ng mga Industriyang Kimika (SPIK) in addressing the sluggish issuance of permits and licenses which would have resulted to slowdown and possible stoppage of operations of some electronics manufacturers.

The issuance of temporary permits shall be valid from July 24, 2015 until October 31, 2015 only and not subject to extension

PH Competition Act encourages entrepreneurs to compete

August 07, 2015

With the recently signed Philippine Competition Act or Republic Act (R.A.) 10667, entrepreneurs, whether small or big can now compete with market leaders and will be more encouraged to provide better products and services at reasonable prices.

Also, doing business in the country will be more attractive to potential investors who are afraid to enter because of the market dominance of multinational companies.

The Act, which aims to ensure that there will be fair competition among market players, prohibits abuse of dominant positions, cartels, price fixing during auctions or biddings, anti-competitive agreements and mergers and acquisitions that limit or control competition.

The Philippine Competition Commission (PCC) will be established to implement the national competition policy and look into anticompetitive behaviors that violate the law. The PCC will be composed of a chairperson, four commissioners and an executive director.

R.A. 10667 was signed into law by President Benigno S. Aquino III at Malacañang last 21 July 2015. It was one of the legislative agenda advocated by the Export Development Council (EDC), together with other business organizations

Foreign Co-Loading Law boosts competitive shipping market

August 07, 2015

R.A. 10668, otherwise known as the Foreign Co-Loading Law was signed by President Benigno S. Aquino III last July 21, 2015. The law which practically amends the cabotage rule now allows foreign vessels to dock at any Philippine port for loading and unloading of foreign cargoes. Foreign cargo refers to import and export cargo carried by a foreign vessel. The benefit of the bill is to reduce logistics costs and provide transhipment services needed by exporters and importers that will lead to competitive pricing of goods.

This reform will also help decongest Manila ports as most shipments normally have to unload first in Manila before shipping directly to other domestic ports around the country. The amended Cabotage Law will increase port revenues and provide price-competitive shipping service that will help exporters to compete effectively in the international market.

FDA simplifies rules on importation of urban hazardous substances

August 07, 2015

The Food and Drugs Administration (FDA) issued Memorandum Circular 2015-006 which eases the ruling of importation of urban hazardous substances, as long as manufacturers will import these substances for their own use.

This is good news to manufacturers of cosmetics, furniture, and non-food products. The License to operate and Certificate of Product Registration are no longer required from them. Instead, an Import Clearance shall be issued by the FDA for every shipment, provided the following documents are submitted to FDA:

1. Letter of Intent;
2. Notarized Affidavit of Undertaking stating that the imported product does not contain any banned ingredient/s and is intended solely for own consumption and not for marketing;
3. Copies of shipping documents such as bills of lading, commercial invoice and packing list; and
4. Proof of payment of PHP 510.00

This FDA Memorandum Circular is welcomed by exporters as it will surely facilitate trade for Philippine export growth.

DTI to review existing laws and policies for startups

August 07, 2015

Secretary Gregory Domingo of the Department of Trade and Industry (DTI) pronounced that the government shall review and adjust existing laws and create new policies to help startup companies (sometimes referred as innovative Small and Medium Enterprises (SMEs)). He admitted that the government is lagging behind in terms of understanding and supporting the startups in the country.

SMEs have the potential to contribute greatly to the economic growth through the product and process innovations they introduce to the market. The Trade Chief said that the sector accounts for 97 percent of all enterprises in Asia Pacific economies and employs 50 percent of the workforce in these countries.

To take full advantage of the growth of startups, the government is considering government funding for startups, though discussions on how it will be done shall take place first. At present, there are private-sector led initiatives to finance SMEs.

DTI’s planned reforms are echoed with one of the Department of Science and Technology (DOST) advocacies in supporting SMEs. DOST Secretary Mario Montejo said that one of the thrusts of the department is to provide technical assistance to entrepreneurs wanting to open up a tech startup and innovate and develop new products and services.

These reforms were stated during the Slingshot MNL 2015 which is the official startup event of the Asia Pacific Cooperation (APEC) Philippines 2015 organized by DTI and DOST last 6-7 July 2015.

Bureau of Customs bares plans for 2015

July 21, 2015

The Bureau of Customs (BOC) laid out projects and programs that will support the ASEAN integration and Philippine Export Development Plan (PEDP).

The main goal of the BOC is to broaden the scope and functionality of the current electronic system to ensure the full implementation of paperless, queueless and no face-to-face transactions especially those that are still manually processed as well as the automation of record keeping and inventory tracking of tax-free imports. Hence, the National Single Window and the customs transaction system will be integrated to enable faster verification and utilization of import permits. This aims to eradicate fraud in the BOC and increase customs revenue.

BOC Commissioner Alberto Lina bared his five reform principles during the PHILEXPORT General Membership Meeting last June 30, 2015 at the Manila Hotel. These are:

1.Adopting integrity as the agency’s work ethics following President Aquino’s mandate of “Daang Matuwid” as the foundation for action;
2.Leveling the playing field by ensuring fair, efficient, speedy, and hospitable services;
3.Battling corruption;
4.Continuing to decongest ports and improve systemic interventions by adapting to a growing economy;
5. Optimum performance from each and every officer and employee to transform the Bureau into a proactive organization.


The BOC is now implementing the following trade facilitation policies that will benefit exporters:

1. Implementation of ASEAN Certificate of Origin self-certification 2nd pilot project (CMO 2-2014);
2. Exemption of refrigerated shipments, transhipments, PEZA bound containerized shipments and export shipment from mandatory x-ray scanning (CMO 6-2014); and
3. Revision of BOC port operation manual abolishing the requirements of Notice of Stuffing and the presence of Stuffing Inspector during the stuffing/loading of export cargo container (CMO 4- 2015).

These reforms were disclosed during the PEDP 2015-2017 Regional Seminar held last May 27, 2015 at the Crimson Hotel, Alabang, Muntinlupa City.

DOST 12: Adopt Philippine Halal Logo

July 21, 2015

The Philippines is the first non-Islamic country granted permission to use the unified standard of the Organization of Islamic Cooperation (OIC) - Standards and Metrology Institute for the Islamic Countries (SMIIC) and the Halal Logo, as shown here.

DOST 12 is confident that with the new Halal logo which conforms to the SMIIC standards, issues on fake Halal products, certification schemes and compliance to international certification will be addressed.

With the thirty two (32) member states of SMIIC, DOST 12 Regional Dir. Zenaida P. Hadji Raof Laidan urged delegates to implement, adopt and strictly adhere to SMIIC Standards, during the Philippine Halal Assembly 2015 held last 3-5 June 2015 .

PCCI, EDC Invite Exporters to the 5th National Educational Forum

July 21, 2015

The PCCI Education Committee, in collaboration with the Export Development Council-Networking Committee on Human Resource Development and the Pampanga Chamber of Commerce and Industry invite exporters and other businesses to the 5th National Education Forum (NEF) on 27 August 2015 at the Penthouse, Board of Investment Building, Makati City. The theme for this year’s event is “Aligning Business Education in the Context of ASEAN Economic Integration”.

The forum will focus on the importance of aligning the country’s business education with the requirements of the AEC and the preparations made by the academe and business sector to enable them to compete and reap the benefits from the economic integration through education and higher learning. Expected to attend this forum are leaders and professionals from the business sector and academe. An international speaker from Australia will discuss the Philippine-Australian Cross Qualifications in Connection with the Philippine Qualifications Framework.

Those interested to attend may register with Ms. Juliet Espino of the PCCI Secretariat at telephone number 02-846-8196. Registration fee is P600.00 per person.

Foreign shipping lines lift port congestion and emergency surcharges

June 15, 2015

Fifteen 15 members of the Association of International Shipping Lines (AISL) lifted the Port Congestion Surcharge (PCS) as of May 7, 2015. These shipping lines are APL Company PTE., Ltd.,"K" Line, Hapag-Lloyd, Maersk Line, Orient Overseas Container Lines, Regional Container Lines Pte. Ltd., Pacific International Lines Pte. Ltd., Evergreen Line, COSCO Container Lines Co., Ltd., TS Lines Limited, Sinotrans Container Lines Co., Ltd., YangMing Marine Transport Corp, SITC Container Lines, Ltd., Wan Hai Line, Ltd., China Shipping Container Lines Co., Ltd.

It is noted that other foreign shipping lines such as APL Company PTE., Ltd., "K" Line, Hapag Lloyd, MCCTransport, Maersk Line, and MOL did not impose Emergency Cost Recovery Surcharge (ECRS).

This development is one of the agreements during the consultation conducted by DTI Undersecretary Victorio Mario Dimagiba and LTFRB Chairman Winston Ginez last 30 April 2015 in support to the call of Senator Bam Aquino to shipping lines to bring down the logistics cost to pre-port congestion rates since the port is now at the normal level.

This gives exporters and importers choices on which shipping lines to use in order to reduce their cost of shipping.

Bureau of Customs readies Electronic Certificate of Origin

June 15, 2015

The Bureau of Customs (BOC) will implement the Electronic Certificate of Origin (E-CO) as part of the Philippine commitment to the ASEAN Single Window (ASW) E-CO implementation in June 2015.

The E-CO is the online application for COs by exporters. This includes electronic submission of documentary requirements such as export declaration, commercial invoice, airway bill/ bill of lading and export permits as well as electronic payment of documentary stamp tax (DST). Once all pertinent documents have been submitted to BOC thru the value added service provider (VASP) and the DST has been paid, an email notification shall be received by the exporter. The approved CO needs to be printed and must be signed by the Customs officer. Although the pilot implementation is limited to ASEAN Trade in Goods Agreement (ATIGA) Form D, the system developed is ready for other preferential and non-preferential CO.

The E-CO aims to reduce processing time and costs. It will also establish a maintained database of export products that may be tagged qualified for other Free Trade Area Rules of Origin.

The target date for the E-CO pilot implementation is in July 2015. Philippine Economic Zone Authority (PEZA) and Port of Cebu voiced their willingness to join the pilot implementation. Other exporters also expressed their interest in joining the pilot implementation of E-CO during the forum conducted by the Department of Trade and Industry- Export Marketing Bureau (DTI-EMB).

The Export Development Council (EDC) supports the E-CO as it is one of its advocacies in streamlining and facilitating import and export procedures to reduce the high costs of doing business, turnaround time, and signatures as well as optimize the use of information technology.

European group submits policy recommendations for PH competitiveness

June 15, 2015

The European-Philippines Business Network (EPBN) submits the policy recommendations for Philippine competitiveness to the Department of Trade and Industry (DTI), National Economic and Development Authority (NEDA), Maritime Industry Authority (MARINA), Department of Public Works and Highways (DPWH), and other government agencies. The European group identified crucial legislative and operational changes that the Philippine government should implement to have a more competitive environment for foreign businesses. The advocacy papers aimed at facilitating market access and ensuring a level playing field in the country, some of their recommendations include the passage of bills on fair competition law, rationalization of fiscal incentives, customs modernization and anti-smuggling, agriculture production growth and renewable energy. The main objective of this partnership is to help increase and improve PH market access in international trade.

The Export Development Council supports trade related recommendations that will raise Philippine competitiveness, lead to greater technology exchange for innovation to attain increase in Philippine exports.

  (From left) Project Director, EPBN Henry Schumacher welcomed the high-level representatives from the private and public sectors Arsenio Balisacan of NEDA, Rogelio Singson of DPWH and Gregory Domingo of DTI

SMEs share financing experiences in TV documentary

June 15, 2015

The TV show “On the Money” now focuses on stories of individuals and small businesses who have succeeded through financing assistance. It also features those who have blundered so that ordinary people and SMEs can learn from these experiences.

The TV show has been reformatted this way by the collaboration of the Credit Information Corporation (CIC), the United States Agency for International Development (USAID) and ABS-CBN News Channel (ANC).

CIC head Jaime Garchitorena believes that the “Philippines can benefit from this show as there is great need for financial literacy in the country”.

“On the Money” airs every Wednesday at 6:30 pm and replayed at 11:30 pm, and 3:30 pm of the next day.

Philexport urges vigilance among exporters amidst flat export performance

June 15, 2015

Mr. Sergio Ortiz-Luis, Jr, President of PHILEXPORT, speaking before the Regional Seminar on the Philippine Export Development Plan (PEDP) 2014-2016 urged exporters and other stakeholders “to remain vigilant to make sure we build up on whatever strengths we have, individually and as an industry”. This he said amidst breaking the news that the export performance in the first quarter is flat.

Ortiz-Luis said that NEDA has noted that the contractions in sales of agro-based products, manufactures, and petroleum products in February slightly outweighed the year-on-year gains in exports of electronic products, garments, and chemicals.

He also cited several challenges that threaten the sector in meeting its target, among them are natural hazards which unfortunately are part of our topography and the looming phase-out of 15-year old trucks that threaten to raise trucking fees far greater than the port congestion levels. .

Ortiz-Luis believes that “banking on the strengths that are unique to us, we remain confident that we can hold against our own counterpart elsewhere.” He assured the export community that PHILEXPORT will remain their active partner in developing a better Philippines and re-committed to be the champion for MSMEs and the export industry in helping achieve a resilient, inclusive and sustainable economy now and in the future.

Sen. Bam Aquino enjoins truckers, shipping lines to lower fees

May 04, 2015

Sen. Bam Aquino called for a senate inquiry about shipping and trucking fees. He said that the only issue left after the port congestion is the logistics cost that includes high shipping and trucking charges. Therefore, there is a need to get back the pre-port congestion level rates since the port is now at normal level.

During the meeting, it was reported by port operators that the port congestion has gone down from 97 percent to 60 percent, and it is now operating efficiently. There are no vessels queuing at berth and truckers are in just-in- time mode.

Senator Aquino asked the truckers associations and the shipping lines to bring down the logistic costs to pre-port congestion rates. The shipping lines are committed to eliminate some charges while truckers already decreased their rates by 10 percent.

The Senator also urged Department of Trade and Industry (DTI) Undersecretary Victorio Mario Dimagiba and Land Transportation Franchising and Regulatory Board (LTFB) Chairman Winston Ginez to meet with the truckers and shipping lines on Thursday April 30, 2015 to discuss and iron out the remaining complaints, including the high logistics costs that are affecting the cost of basic commodities.

Furthermore, Chairman Winston Ginez warned to look into cancelling franchises of the truckers if they do not bring down their logistics costs. Undersecretary Dimagiba warned that DTI may file charges if they will not decrease their fees.

DTI supports the extension of RO-RO policy to Chassis RO-RO Service

May 04, 2015

DTI Sec. Gregory L. Domingo endorses the proposed Executive Order expanding the coverage of E.O. No. 170 to include Chasis-Roro (CHA-RO) in the RO-RO service. The CHA-RO is a mode of RO-RO shipping where the container is mounted on a chassis and loaded on and off the cargo belly of the RO-RO ships by a prime mover or tractor. Unlike in the purely RO-RO mode, the container-mounted chassis is disengaged from the prime mover which is left at the port of origin. At the port of discharge, the container-mounted chassis is then engaged with and picked up by another prime mover from the cargo belly of the vessel.

The proposed E.O. will lower transport cost by at least 15-20% mainly because the prime mover, an expensive equipment, is not required to travel with the chassis-mounted container onto/from the RO-RO ships. This will also support and complement the establishment of the ASEAN RO-RO project network and address issues related to the movement of natural persons (i., e. the driver), CIQS, and technical operations. Thus, it will support and promote the competitiveness of the export sector.

The implementation of CHARO to the RORO service is the realization of one of the strategies identified in the Philippine Export Development Plan 2014-2016 to “improve the efficiency of infrastructure services particularly energy, logistics, transportation and communication through continuous regulatory reforms”. This will help reduce cost of shipping and thereby increase the logistics competitiveness.

PEZA locators to use E2M filing of transhipment entries

May 04, 2015

The Bureau of Customs (BOC) and Philippine Economic Zone Authority (PEZA) issued Joint Memorandum Order 1-2015 requiring all PEZA locators importing goods to file transhipment entries electronically through the E2M system. PEZA locators must enrol with the PEZA through the Value-added service providers (VASPs) to qualify for the usage of PEZA electronic Import Permit System ( e-IPS) for the tax and duty-free importation of foreign goods necessary for its PEZA-registered activity.

Various documentary requirements such as telegram, boatnote and Customs-EPZA Warehousing Entry (CEWE) are no longer required to be submitted upon filing of transhipment entry. Moreover, underguarding of goods from BOC to PEZA warehouse shall no longer be needed since the PEZA locator shall be required to post a General Transportation Surety Bond at each port of discharge where the shipments arrive. Although electronic filing shall be strictly implemented on 4 May 2015, manual filing shall still be allowed only upon certification of the BOC Deputy Commissioner for Management Information System and Technical Group (MISTG) that the E2M system is down for more than two (2) hours.

PEZA shall provide ample space and facilities for the joint use of PEZA and BOC to implement the JMO.

Private sector pushes for the Philippine Multi-Modal Logistics Industry Roadmap

May 04, 2015

The private sector is pushing for the Philippine Multi-modal Transportation and Logistics Industry Roadmap, which will aim to integrate multi-modal transport system in the country. Seamless logistics system is identified as one of the key elements in achieving inclusive growth and poverty reduction in the country.

The draft roadmap identified three phases in order to achieve its goals. Phase 1 (2015-2016) is for capacity building which involves the formulation of soft infrastructure, as well as the refining and concretizing the existing policies essential for a solid logistics system. Phase II (2017-2022) is for capacity extension and efficiency enhancement which involves the material implementation of policies, and the adaptation of efficiency measures. Lastly, Phase III (2023-2030) is for the Integrated Multi-Modal Logistics which involves the creation of information and physical linkages with regional and global system.

In a forum spearheaded by the Philippine International Seafreight Forwarders Association (PISFA), it was agreed that the final roadmap will be advocated to the concerned government agencies such as National Economic Development Authority, Department of Transportation and Communication, Department of Trade and Industry, among others for proper action.

This initiative implements Strategy 3 of the Philippine Export Development Plan 2014-2016 which is to “improve the efficiency of infrastructure services particularly energy, logistics, transportation and communication, through continuous regulatory reforms”. This roadmap will help facilitate movement of goods and services thereby bringing down the cost of shipping.

This recommendation is strengthened by the Philippine Institute for Development Studies (PIDS) and National Competitiveness Council (NCC) to have a balanced regulatory reforms and infrastructure expansion. Further, a strong and comprehensive national multimodal transport logistics development plan is needed to take full advantage of its economic growth and enhance its position as a transport hub in the region.

Exporters/Stakeholders invited to the Regional Seminars on PEDP 2014-2016

May 04, 2015

The Department of Trade and Industry-Export Marketing Bureau (DTI-EMB) and the Export Development Council (EDC) will hold a series of Regional Seminars to implement the Philippine Export Development Plan (PEDP) 2014-2016 in Pampanga, Cebu, Davao, NCR and Bicol on the following schedules:


The seminars aim to inform and promote the strategies set under the plan of transforming the Philippines into a strong, competitive and innovative exporting nation and making exports a primary platform to achieve inclusive growth.

Essential to the implementation of strategies in the PEDP is the cooperation among exporters, business support organizations (BSO) and government agencies to help increase Philippine exports. Hence, the DTI and EDC is inviting exporters, BSOs and relevant government agencies to attend the above seminar. Confirmations may be made through this email or the nearest DTI Regional Offices and Philexport Chapters in the abovementioned regions.

Customs releases Regulated Imports List

April 10, 2015

The Bureau of Customs (BOC) recently released the Regulated Imports List (RIL) which consolidates more than 7,000 imported commodities needing import permits or licenses from regulatory agencies. It provides not only the requirements but also the timeline and processing fees in obtaining the said import permits/licenses. It will benefit importers who are not familiar with the import processes of regulated products.

The RIL is available in three versions: by specific product, by category, and by regulating agency, at the BOC website (http://repository.gov.ph/customs/). Effective April 20, 2015, BOC will strictly require import permits/licenses for products listed in the RIL.

BOC Commissioner John Philip Sevilla provided a walk-through of the RIL and its User’s Guidelines during the dialogue session of the National Competitiveness Council. He clarified that commodities arriving in the Philippines without import permit/license may still be allowed entry, provided permits/licenses are issued within 30 days after arrival, otherwise they will be seized.

EDC calls on truckers to restore rates

April 10, 2015

The Export Development Council (EDC) issued Resolution No. 2, series of 2015, urging Truckers and Truckers Associations to restore the trucking rates and charges to the pre-port congestion level since the Manila port operations have normalized and fuel prices have gone down in recent months.

The EDC is concerned that despite the improvements in the ports, exporters continue to be burdened with high cost of trucking charges. This contributes to the increase in prices of both export and domestic goods thereby diminishing the competitiveness of Philippine products.

The EDC will continue to advocate policy reforms to help exporters boost their export competitiveness with competitive cost and reliable transport logistics being central to trade.

DTI to promote export Halal certified products

April 10, 2015

With the growing demand for Halal certified products of the estimated 2.04 Billion Muslims population in the world, with 1.36 Billion estimated population in Asia in 2013, the Department of Trade and Industry (DTI) is eyeing the opportunity to promote export products that are certified by the Halal Certifiers. These Certifiers have to be internationally recognized for products to be accepted.

Currently, the National Commission on Muslim Filipinos (NCMF) has accredited the following Halal Certifiers:

1. Halal International Chamber of Commerce and Industries of the Philippines, Inc. (HICCP)
Unit 701 Jafer Place, Eisenhower St., Greenhills, San Juan City (Recognizing Country/ ies: Singapore and Thailand)

2. Mindanao Halal Authority (MINHA)
3/F Dinopol Bldg., Osmeña St., General Santos City Recognizing Country/ies: Singapore, Thailand)

3. Muslim Mindanao Halal Certification Board, Inc. (MMHCB).
No. 2 Abdul Kadil Daod Apartment, Campo Muslim Drive, Cotabato City (Recognizing Country/ies: Singapore and Thailand)

Another Halal Certifier, one of the most active, is The Islamic Dawah’ Council of the Philippines (IDCP) which is a recognized Halal Certifier in the Philippines by the World Halal Council (WHC) based in Malaysia, has already certified hundreds of companies.

Halal is a way of life for Muslims rather than a religious constraint. Non-Muslim firms in other countries are exerting efforts in expanding their Muslim-friendly offerings to catch the increasing demand for Halal products. In 2030, the global Halal market is projected to be a US$10 Trillion Industry making Muslims one of the fastest growing consumer segments in the world.

GI to maximize EU-GSP+ benefits

April 10, 2015

Through the use of Geographical Indications (GI), the Philippines has potential to double its export value to Europe. GI is a distinctive mark and a type of Intellectual Property Right used to identify a product where quality is essentially attributable to its geographical origin.

Some of the potential GI products in the Philippines are Davao Pomelo, Bicol Pili Nut, Aklan Piña Cloth, Guimaras Mango and Kalinga Coffee. During the GI and EU-GSP+ forum organized by the Philippine Chamber of Commerce and Industries, Inc. (PCCI) and European Union (EU) Delegation last 11 March 2015, the latter urged the participants to support the effort of the Intellectual Property Office of Philippines (IPOPHIL) in crafting the GI Implementing Rules and Regulation (IRR).

GI products are protected internationally under the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement which is administered by the World Trade Organization (WTO). TRIPS Agreement sets the minimum product standards in order to avoid misleading the public and prevent unfair competition.

Mr. Stephane Passeri, Project Coordinator for the Food and Agriculture Organization who is tasked to develop GI usage in Asia shared that neighboring Asian countries currently have GI Registrations. These are Thailand which currently has 64, Indonesia has 26, Malaysia has 35, Vietnam has 41 and Cambodia has 2 including the Kampot Pepper.

DOST, local industries join hands in preparing for AEC 2015

March 10, 2015

Innovation is a key ingredient to survive in the increasing competitiveness in the ASEAN Economic Community 2015. Thus, the Department of Science and Technology (DOST) through the Industrial Technology Development Institute (ITDI) has identified the research and development needs of several industries and embarked on a technology matching forum held last 26 February 2015 at the Sofitel Philippine Plaza, Manila.

Partnerships were initiated to identify innovative technology solutions which can be developed, outsourced, centralized or handled by ITDI and business units; which business processes need to be improved or streamlined, and how ITDI and industry alliances should be restructured to bring PH products and services to the market faster. Technical assistance are given in the fields of chemicals and energy, environment and biotechnology, food processing, materials science, packaging technology, metrology (calibration of measuring instruments), standards & testing and technological services.

Exporters and business support organizations are encouraged to partner with ITDI for their technology upgrade needs. Individual companies availing of the ITDI services will have to share the cost of technology development. However, if the technology will be designed for specific industries, ITDI may take on the cost of development.

ITDI is at the DOST Compound, General Santos Avenue, Bicutan, Taguig City, with tel. no. 837-2071 local 2184/2268. More information is available at http://www.itdi.dost.gov.ph.

PHILEXPORT urges government to increase budget in science and technology

March 10, 2015

PHILEXPORT President Mr. Sergio Ortiz-Luis, Jr. recommended that in order for the country to sustain economic growth, there is need for the government to increase its budget on science and technology. This will reinforce the country’s technological innovation, research and development capabilities.

Ortiz-Luis also stressed the need to push more students to take up engineering and S & T based courses. He also expressed his support to the establishment of S & T centers of excellence that will promote competitiveness and dynamism of sectors like food, agriculture, forestry, energy and the MSME sector as the country continues to prepare for the AEC integration.

These recommendations were presented during the DOST Technology Matching Forum last 26 February 2015 at the Sofitel Hotel, Manila.

Stuffing requirements for exports repealed

February 26, 2015

There is no more need for an Inspector to be present during stuffing and sealing of containers for export. In addition, Notice of Stuffing is no longer required to be submitted to Customs Container Control Division (CCCD). This policy is issued by Commissioner John P. Sevilla through Customs Memorandum Order (CMO) 4-2015 dated 21 January 2015. The CMO repealed Sec. 16 B. 1.1 of the Revised Customs Port Operations Manual.

In a meeting conducted by the Export Marketing Bureau and the Export Development Council, Commissioner Sevilla saw the need to repeal the requirement of the CCCD of the Manila International Container Port (MICP) since it entails additional documents, procedure, and costs causing delays and missed export deadlines and commitments.

Commissioner Sevilla wanted to be liberal with Philippine exports. However, he instructed CCCD to install a risk management system for the random inspection of stuffing to avert the illegal exportation of regulated and prohibited products.

CMO 4-2015 can be downloaded here

Empty containers allowed in ports only for 90 days

February 26, 2015

The Bureau of Customs (BOC) shortened the number of days for the re-export of empty containers in ports from 150 days to 90 days. Starting May 1, 2015, empty containers shall be re-exported within 90 days from the date of last discharge per Customs Administrative Order (CAO) 01-2015. In case of containers stuffed with imported goods, they shall be re-exported within 90 days after the return to the shipping lines as evidenced by the Equipment Interchange Receipt. Otherwise, failure to re-export said containers within 90 days shall be treated as imported and subjected to payment of duties and taxes.

The CAO exempts containers arriving as empty from January 30 until April 30, 2015 from any charges if they are re-exported by July 29, 2015.

The CAO is one of the agreements made during the Cabinet Cluster meeting on Port Decongestion to eliminate overstaying empty containers inside Manila Ports.

DTI and Senate strengthen support to SMEs

February 26, 2015

“We recognize how important SMEs are that is why we came up with programs like Shared Services Facilities (SSF),SME Roving Academy (SMERA), and Doing Business in Free Trade Areas (DBFTA),” Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said during the recent National Export Congress held at the PICC, Pasay City

DTI has been actively supporting the improvement of capabilities of the country’s small and medium enterprises (SMEs) to increase their participation in global trade. DTI has long been working on measures to remove trade barriers for SMEs in marketing their products to foreign markets. This is in order for them to expand and strengthen their integration in the global value chains along with multinational corporations.

Domingo assured that SMEs will be at the center of the agenda in the coming Asia-Pacific Economic Cooperation (APEC) conference in 2015. “We feel that SME agenda is very important. We are pushing to simplify the trade rules to make SME benefit in global trade. That means simplifying application forms and customs procedures,” Domingo said.

On the other hand, Senator Bam Aquino quipped, “Our SMEs need to develop themselves further, not just for the larger market outside but also for the largely untapped market here in our country. A lot of our SMEs with the right design intervention, with the right financing, with the right capacity building, can produce products which our country will patronize and which can compete with the rest of the world.

Exporters joining Trade Fairs continue to enjoy travel tax exemption

February 26, 2015

Ninety five percent (95%) of travel tax exemptions (TTE) issued to exporters for 2014 is for their participation in trade fairs & exhibitions. The Export Development Council (EDC) endorsed 982 TTEs to the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) which issues the exemption certificates. The rest are for participation in outbound business matching, seminars and conferences.

For the past eight (8) years, the EDC and TIEZA continuously support Filipino exporters through Executive Order (EO) 589. Said EO exempts exporters joining international trade fairs, exhibitions, selling missions, conferences, seminars and other promotion activities, from paying the travel tax of Php 1,620 for economy class and Php 2,700 for business class.

Exporters are encouraged to avail of this government support. The application form can be downloaded at http://edc.net.ph/downloads/TTEform.pdf

For other information, exporters may call the EDC secretariat at telephone numbers 890.4645 and 465.3329.

Exporters invited to the National Export Congress 2014

November 12, 2014

Direct and indirect exporters, SMEs, academe, and government agencies as well as international organizations are invited to the National Export Congress 2014 on December 5, 2014, 8AM to 4PM, at the Reception Hall, Philippine International Convention Center (PICC).

The Congress is the highlight of the National Exporters' Week on December 1-7, 2014. This year's theme is "Integrating SMEs to Global Value Chains" The event aims to inspire exporters, specifically direct and indirect SME exporters to participate in the global value chains offered by the ASEAN Economic Integration and other regional cooperations and free trade agreements. It will also harness individual strengths of firms, share best practices, and synchronize policy reforms that can enhance SMEs' ability to gain greater participation in the global production network.

Several activities in NCR include the Exporter's Bazaar at the DTI International building, and Usapang Exports' series of seminars. For more details please visit this link Exporters Week 2014

Also, Regional Offices of the DTI, PHILEXPORT and some universities will also celebrate, and are encouraged to conduct activities in line with this year's theme.

Exporters’ “seagrass” not prohibited under FAO No. 250

November 12, 2014

The Bureau of Fisheries and Aquatic Resources (BFAR) and the National Fisheries Research and Development Institute (NFRDI) clarified that the seagrass being used for handicrafts being exported is not the subject of the FAO No. 250. Said order prohibits the collection, harvesting, gathering, selling, and/or exporting of Brown Algae (Sargassum spp.), and Seagrass. Both agencies identified the samples and description presented by the Export Development Council, Export Marketing Bureau, and exporters as Rhynchospora corymbosa (Common name: Matamat, Golden Beaksedge),Actinoscirpu grossus (Common name: Giant bulrush, Greater club-rush), and Typhaorientalis (Common name: Bullrush, Lampakanay) as not banned for export.

The BFAR & NFRDI letters can be read at click here

PCCI resolutions to benefit exporters

November 12, 2014

The Philippine Chamber of Commerce and Industry (PCCI) submitted to President Aquino, eight (8) resolutions that will help sustain the country’s growth and competitiveness.

Four of these resolutions such as energy, education, port congestion, and agriculture will help improve the competitiveness of Filipino exporters.

On energy and power, PCCI urges the National Government to formulate an integrated and sustainable energy and power development roadmap with a clear, definite target level of power supply capacity and rate; doable and time-bound strategies to achieve the desired goal; and premised on the goal to revitalize manufacturing, attract more quality foreign investments and achieve sustainable and inclusive growth.

On Education and Human Resource Development, the business community and government should support the implementation of the Philippine Qualification Framework (PQF) and the ASEAN Qualifications Framework for global competitiveness.

On Port Congestion, focus all future port developments in Subic and Batangas.

On Agriculture, urge the National government to hasten the Agri-mechanization and modernization to be at par with other ASEAN countries.

In all of these endeavours, the business chambers, associations and enterprises are urged to enter into partnerships with government to hasten economic and inclusive growth in the country.

PBC urges government to prepare SMES for ASEAN integration

November 12, 2014

In the recently concluded 40th Philippine Business Conference (PBC), the government was urged to draw strategies and programs that will promote and support the integration of small and medium enterprises (SMEs) in the global and regional value chains. They also urged both the government & private sector to come up with a clear program on the promotion and security of Philippine brands; and to improve the physical connectivity of Mindanao to BIMP-EAGA and the rest of the ASEAN.

On the other hand, the business community was encouraged under the Proudly Philippine Made banner, to work with the government in providing SMEs with access to technology, common service facilities, financing and other support to infuse not only a competitiveness mind-set among them but to provide them with sustenance to help them find more niches for their further participation in the value and supply chains and their participation in the ASEAN Integration in 2015.

Bitung Port authorizes entry of goods

October 07, 2014

The Indonesian Ministry of Trade authorized the entry of food and beverages; electronics and garments to Bitung Port. These products used to be in the negative list of imports into Indonesia. Bitung Port is part of the ASEAN connectivity to promote investments, tourism and trade relations between the Philippines and Indonesia, another cooperation under the ASEAN Economic Community 2015. This information is relayed recently by the Philippine Consulate General in Manado City.

Exporters of the said sectors may take this opportunity to explore new business partners in Indonesia.

Steam activated carbon not hazardous, hence a regular cargo

October 07, 2014

The Export Development Council conducted an industry briefing on activated carbon last September 16, 2014 to address the existing restriction and prohibition to load “Steam Activated Carbon” in most shipping and feeder vessels since it is alleged to be inflammable and therefore considered as hazardous material. Shipping cost of hazardous materials is 30% higher than regular cargoes.

Mr. Bonifacio Fernandez, a representative from the activated carbon industry said that “Steam Activated Carbon” is a porous carbonaceous substance manufactured by means of heating granulated charcoal about at 1000°C with the presence of steam inside a rotary kiln. This process makes the steam activated carbon incombustible.

Now that the shipping lines are aware of the qualities of steam activated carbon, Mr. Fernandez suggests that the shipping lines should ensure that there will be no misdeclaration of goods making sure that the cargo is not raw nor granulated charcoal.

Atty. Max Cruz of the Association of International Shipping Lines, Inc. invited Mr. Fernandez to discuss the issue during their board meeting on November 5, 2014, to brief other shipping line representatives.

WTC to host conference on Markets of the World: ASEAN and ASEAN-AFTA

October 07, 2014

The World Trade Center is hosting again the Markets of the World Conference on October 14, 2014 at Function Rooms 1 and 2 of the World Trade Center Metro Manila. The conference will feature the ASEAN and ASEAN-FTA partner countries and the Philippines’ key partners in Middle East.

This event will be beneficial to exporters in preparation for the ASEAN Integration in 2015. Exporters and the business community are invited to attend the said conference.

For more information, please call Ms. Mary Grace “GI” De Guzman of the World Trade Center Metro Manila at telephone no. 902-0000 ext. 213 or email mideguzman@wtcmanila.com.ph.

DTI Keen on boosting the manufacturing sector

October 07, 2014

The recently concluded Philippine Economic Briefing highlighted the government’s goal of sustainability through the following: (1) infrastructure investments; (2) development plan for small & medium enterprises (SMEs) and the manufacturing sector; and (3) priority bills and additional reform agenda for the next two years.

Trade and Industry Undersecretary Adrian Cristobal said that the government is keen on helping further boost the manufacturing sector of the country, which accounted for 2.3 million jobs as of last year or up by 1.5% from the previous year. He also reported that the average growth of the manufacturing sector accelerated from 2.4% in 2005-2009 to 7.9% in 2010-2013. This growth accelerated further in the first half of 2014 to 8.8%.

Cristobal said that with the continuation of government finance programs and technical assistance, the manufacturing sector is expected to generate more jobs in the near future.

Manila lifts truck ban indefinitely

October 07, 2014

Manila Mayor Joseph Estrada has lifted the truck ban in the city indefinitely to help ease congestion in the ports effective September 13, 2014.

Estrada issued Executive Order 67, ordering the immediate lifting of the truck ban in the city to give way to the efforts of the national government to address port congestion. The EO further instructed all departments and offices in the City of Manila, including the Manila Traffic and Parking Bureau, the Manila Police District and the Department of Engineering and Public Works to extend full support and assistance to concerned national government offices and agencies.

The Cabinet Cluster on Port Congestion estimates that by the end of September, utilization of the Ports of Manila has lowered to 85%.

Palace approves lower port fees in Batangas to decongest Manila ports

September 08, 2014

The Office of the President has approved the reduction of port charges and other vessel-handling related services such as Dockage-at-berth fees at the Port of Batangas. This move aims to attract more shipping lines and port users to utilize the Batangas International Port as well as to decongestion Manila Port.

Shipping lines calling at Batangas International Port can enjoy a 90% discount on Port Dues from the existing fee of $0.081 per gross revenue ton (GRT) per day to only $0.0081 per GRT per day as well as a 90% cut in Dockage-at-berth from $0.039 per GRT to only $0.039 per GRT per day. The new rate is applicable for six months. The discount for the succeeding six months will be reduced to 50% for both or from $0.081 GRT per day to $0.040 per GRT per day and from $0.039 per GRT to $0.020 per GRT per day.

Fair competition act enters the period of interpellation in the senate

September 08, 2014

Senator Bam Aquino, Chairman of the Committee on Trade, Commerce and Entrepreneurship, delivered his sponsorship speech for Senate Bill No. 2282 or the Fair Competition Act of 2014 as the bill entered the period of interpellation.

Sen. Aquino pointed out the many advantages of having a Competition Law which include the development of better products and services through innovation, increasing product efficiency and improving supply chain management as well providing more choices for consumers at competitive prices. He also mentioned that together with the recently passed GoNegosyo Law, the Competition Act will encourage more and more Filipinos to put up their own businesses which will in turn help drive inclusive growth.

In the House of Representative, the consolidated bill of all the various House bills regarding the Competition Act is still awaiting Committee Approval. The Export Development Council will continue its ardent support for the passage of this bill.

Industry-Academe partnership to strengthen human resource development

September 08, 2014

The recent 4th National Education Forum (NEF) led to a common understanding that a well-institutionalized industry-academe partnership can play a major role in improving the Philippines' greatest asset – human resources, therefore, helping advance PH global competitiveness.

2014 NEF Chair, Dr. Eduardo Ong stated that “responding to the global realities and domestic demands requires a balance between what is demanded by the labor market and what is being supplied by the education and training sector”. Globalization includes among others, freer and borderless movement of capital goods, services, technology, information and human resources between and among countries. Thus, the rapid change in information and communication technology directly impacts on the way work is being organized and executed.

He added that these are all happening now as the government made its move by reshaping the education system through the K to 12. This new educational system emphasizes academic, technical-vocational and entrepreneurial aptitude to create a versatile workforce for the industry and to ensure the continuous advancement of relevant knowledge and skills through a permanent industry-academe cooperation.

The Export Development Council Networking Committee on HRD collaborated with PCCI and the Philippine Council of Deans for Business Educators in organizing the 4th NEF.

Industry-Academe partnership to strengthen human resource development

September 08, 2014

The recent 4th National Education Forum (NEF) led to a common understanding that a well-institutionalized industry-academe partnership can play a major role in improving the Philippines' greatest asset – human resources, therefore, helping advance PH global competitiveness.

2014 NEF Chair, Dr. Eduardo Ong stated that “responding to the global realities and domestic demands requires a balance between what is demanded by the labor market and what is being supplied by the education and training sector”. Globalization includes among others, freer and borderless movement of capital goods, services, technology, information and human resources between and among countries. Thus, the rapid change in information and communication technology directly impacts on the way work is being organized and executed.

He added that these are all happening now as the government made its move by reshaping the education system through the K to 12. This new educational system emphasizes academic, technical-vocational and entrepreneurial aptitude to create a versatile workforce for the industry and to ensure the continuous advancement of relevant knowledge and skills through a permanent industry-academe cooperation.

The Export Development Council Networking Committee on HRD collaborated with PCCI and the Philippine Council of Deans for Business Educators in organizing the 4th NEF.

National Education Forum to Enhance HR Competitiveness

August 20, 2014

The Export Development Council Networking Committee on Human Resource Development in collaboration with PCCI Education Committee and the Philippine Council of Deans and Educators in Business (PCDEB) shall conduct the 4th National Education Forum (NEF) with the theme “Business Education: Responding to the Challenges of the Work Environment” on 29 August 2014 at the De La Salle University-College of Saint Benilde, Taft Campus, Taft Avenue, Manila.

This forum will be attended by leaders and professionals in the fields of education and business. It aims to enhance competitiveness by emphasizing academic, technical-vocational and entrepreneurial aptitude; ensure the continuous advancement of relevant knowledge and skills through a permanent industry-education cooperation, advocate apprenticeships for pre-recruitment training of students beginning at basic education and strengthen the role of the academe and the industry in developing labor-related policies that will contribute to the development of human resource.

PCCI urges exporters to use Sundays to decongest ports

August 20, 2014

The Philippine Chamber of Commerce and Industry (PCCI) recently encouraged exporters to release their shipments on Sundays in order to help decongest the ports in Manila. This is in response to the Bureau of Customs (BOC) which opens its operations on weekends from 8:00AM-5:00PM at the Port of Manila and the Manila International Container Port (MICP) beginning June 28, 2014.

This palliative measure will relieve pressures caused by the day-time truck ban in the City of Manila.

Malacanang backs up EDC’s advocacy on the simplification of the new accreditation policy of BIR and BOC

August 20, 2014

Executive Secretary Pacquito N. Ochoa, Jr., Office of the President, in a Memorandum sent to Department of Finance Secretary Cesar V. Purisima, enjoined the Bureau of Internal Revenue (BIR) to consider not requiring personal appearance by the applicant in Manila for the importer/customs broker accreditation process under BIR Revenue Memorandum Order No. 10-2014. He further urged BIR to review the documentary requirements with a view to removing unnecessary documents from the list; since some documents such as income tax returns are already submitted to the same office. He also recommended postponing the deadline for compliance to a reasonable later date.

As of July 31, 2014, the BOC and BIR has not extended the deadline for the accreditation of customs brokers and importers despite the pleas and opposition from the stakeholders due to the added steps, delay and costs brought up by the new accreditation procedures.

The Malacañang move is the result of the advocacies of PHILEXPORT Cebu, Cebu Chamber of Commerce and Industry and Export Development Council (EDC), as well as the meeting among EDC, BIR and BOC regarding the two-stage vetting accreditation.

EDC opposes the draft DENR Administrative Order on the Exportation of Forest Products and Forest-Based Products

August 20, 2014

The Export Development Council (EDC) recently stated its opposition on the draft Administrative Order of the Department of Environment and Natural Resources (DENR) with subject “Revised Rules and regulations Governing the Exportation of Forest Products and Forest-Based Products.

EDC highlighted its concern regarding the undue power given to the Community Environment and Natural Resources Office (CENRO) which makes it difficult to monitor and to control/prevent “hidden costs”; as well as the collection of arbitrary processing and oath fees, requiring original documents and open-ended requirements contradicts the objective of transparency and simplification.

Amending DAO 99-46 entitled “Revised Regulations Governing the Entry and Disposition of Imported Logs, Lumber, Veneer, Plywood, Other Wood Based Panels, Poles and Piles, Pulpwood and Wood Chips” was reiterated by EDC to DENR, as a more strategic and timely solution in order for the furniture and wood manufacturers sector attain its potential to be the top exporting industry in our country.

EDC opposes the draft DENR Administrative Order on the Exportation of Forest Products and Forest-Based Products

August 20, 2014

The Export Development Council (EDC) recently stated its opposition on the draft Administrative Order of the Department of Environment and Natural Resources (DENR) with subject “Revised Rules and regulations Governing the Exportation of Forest Products and Forest-Based Products.

EDC highlighted its concern regarding the undue power given to the Community Environment and Natural Resources Office (CENRO) which makes it difficult to monitor and to control/prevent “hidden costs”; as well as the collection of arbitrary processing and oath fees, requiring original documents and open-ended requirements contradicts the objective of transparency and simplification.

Amending DAO 99-46 entitled “Revised Regulations Governing the Entry and Disposition of Imported Logs, Lumber, Veneer, Plywood, Other Wood Based Panels, Poles and Piles, Pulpwood and Wood Chips” was reiterated by EDC to DENR, as a more strategic and timely solution in order for the furniture and wood manufacturers sector attain its potential to be the top exporting industry in our country.

LTFRB implements “No Apprehension Policy” to all trucks for hire

July 10, 2014

The Land Transportation Franchising and Regulatory Board (LTFRB) will observe a nation wide “No Apprehension Policy” of Trucks-for-Hire with green plates. This policy was issued under the Joint Administration No. 2014-01 for a period of one (1)month from June 28, 2014- July 28, 2014 to give adequate time for trucks-for-hire to apply for their franchise and provisional authority (PA).

To fast track the application of Certificate of Public Convenience (CPC) filed in the Central Office, the LTFRB, in cooperation with the Confederation of Truckers Association of the Philippines offers a free pick-up of application and delivery of PA to applicants.

Further clarifications may be obtained from the LTFRB 24/7 hotline 459-2129

EDC requests AISL to extend “Container Free Time Period”

July 10, 2014

The Export Development Council is requesting the Association of International Shipping Lines, Inc. (AISL) to extend the free time period in returning empty containers in view of the existing port and road traffic congestion for a period of two(2) months.

In a letter dated June 20, 2014 to AISL, EDC cited that the severe congestion along the port and container yards has prolonged the process of returning empty containers causing exporters to go beyond the free time allotted by the shipping lines. The congestion in the port resulted to unforeseen negative effects such as additional detention or demurrage fees to the transport and logistics chain of exporters.

The request will temporarily waive fees on detention/demurrage fees, which is unduly charged to exporters, for the next two (2) months until the situation in the port normalizes.

DTI proposes a PH National Trade Repository

July 10, 2014

The Department of Trade and Industry (DTI), as chair of the Committee for the ASEAN Economic Cooperation (CAEC), has proposed the creation of a Philippine National Trade Repository (PNTR) which will serve as a single source or website containing comprehensive, accurate and up-to-date information on all trade related matters. The PNTR will be an important component of the government’s trade facilitation strategy. The PNTR will provide businesses easier access to information and facilitate compliance with prescribed regulations. This was announced by Atty. Sherwin Prose Castañeda, Assistant Director of the DTI Bureau of Import Services (BIS) during the June 2014 CAEC Meeting.

Under the ASEAN Trade in Goods Agreement (ATIGA), the PNTR will connect and interoperate with the national trade repositories of ASEAN member states to create the ASEAN Trade Repository (ATR). Once established, the PNTR should create a more transparent environment for trading and help reduce the amount of transaction time and costs. DTI-BIS will be the lead agency in the PH, while all other government agencies will collaborate in supplying information required in the system.

Accreditation of Brokers and Importers Extended!

July 10, 2014

The Department of Finance (DOF) issued Department Order No. 046-2014 extending the application period of importers and customs broker for accreditation with the Bureau of Internal Revenue (BIR) & Bureau of Customs (BOC) until 31 July 2014.

The extension has been granted following complaints of applicants about the delay in the processing and approval of BIR due to sheer volume of applicants.

Failure to file the application with the BIR and BOC within the extended date will automatically cancel the existing accreditation.

EDC also continues to advocate for the decentralization of receipt of applications to reduce the costs of transportation, accommodation, etc. of importers and brokers outside Metro Manila.


EDC Cautions Customs on the proposed load port survey

June 13, 2014

In a position paper submitted to Department of Finance Secretary Cesar V. Purisima, the Export Development Council (EDC) strongly recommends the amendment of the proposed Customs Administrative Order (CAO) on Load Port Survey (LPS) requirement and advanced import clearance system for bulk, break-bulk, containerized and other non-containerized cargoes. It further recommends to make the LPS voluntary if the importer wants to be exempted from physical and x-ray inspection at the time of arrival of importation.

The legality of issuing a CAO was also raised in the said position paper stating that a mere CAO cannot amend the provisions of an existing Administrative Order which is issued by the President of the Philippines. Further, the Commissioner will exceed his delegated authority by issuing regulation which requires Destination Inspection (DI) by the Accredited Cargo Surveying (ACS) companies in certain cases, thereby limiting the powers of customs officers to examine and assess imported articles under the Tariff and Customs Code of the Philippines (TCCP).

EDC cites that the restrictive measure of the draft CAO may result to delays, higher costs, forgone business opportunities and reduced competitiveness.

EDC supports the proposed revised rates on CY/CFS

June 13, 2014

The EDC has manifested its support on the proposed Bureau of Customs (BOC) Memorandum Order on revised rates of Off-Dock Container Yard/Container Freight Stations (CY/CFS). The said CMO will amend CMO 24-2001, which prescribes rates charged by CY/CFS outside of customs zones.

In a position paper submitted to the BOC last May 23, 2014, the EDC expressed its strong recommendation to the BOC to exercise its authority per CAO 11-80 in order to promulgate uniform rates to be charged by CY/CFS and to ensure that logistics costs are viable and reasonable. EDC notes that the existing rates which are being charged by the Association of Off- Dock CY/CFS Operators of the Philippines (ACOP) violate CMO 24-2001.

The draft CMO will help Philippine exports become more competitive especially those coming from small and medium enterprises as well as aid in fulfilling the Philippines’ commitment to further improve its business environment through lowering the cost of doing business in the country.

VP Binay emphasizes need to invest in education and employee development

June 13, 2014

“Education and the development of employee welfare mechanism have plenty of room for development. In education, the business sector must work with schools and training institutions to align courses offered with the competencies required in the workplace”, said Vice President Binay during the 35th National Conference of Employers.

The VP emphasized that productivity of enterprise is a responsibility shared by all sectors, citing worker motivation as a vital ingredient for achieving desired outputs in the workplace. He added that employers need to implement strategic human resource initiatives to effectively motivate employees. Further, he also emphasized the need to continuously work with government and learning institutions to harmonize education agenda with the needs of the industry.

In conclusion, he urged employers and the business community to invest more on education and employee development.

EDC and NCC support institutionalizing the National School Feeding Program

June 13, 2014

The Export Development Council and National Competitiveness Council- Education and Human Resource Development Technical Working Group (EDC/NCC-EHRD TWG) is supporting the Substitute House Bill for National School Feeding Program.

The bill “An Act Institutionalizing the National School Feeding Program for Public Kindergarten and Elementary Pupils and Appropriating Funds Thereof” calls for the State to promote the rights of children to survival, development and special protection with full recognition on the nature of childhood and its special needs.

The bill aims to ensure that adequate health and nutrition programs are accessible to school children throughout their early childhood years; achieve improved attendance and survival rates in public kindergarten and elementary schools; enhance the physical, social, cognitive, psychological and language development of young children; mitigate nourishment among school children; and to establish an efficient system for early identification, prevention, referral and intervention of developmental disorders and disabilities in early childhood.

In general, the bill ensures the country’s future, specifically in enhancing human resource competitiveness that includes competitiveness of Philippine exports by integrating the industry and education sectors to match the skills and knowledge of the workforce with the needs of businesses. This means sustainability of talents and improvement of the country’s competitiveness in all aspects. The bill does not only ensure a healthy mind and body, but a healthy and robust economy of the country in the future.

Manila Mayor grants an 8-day moratorium on truck ban

May 14, 2014

Manila Mayor Joseph Estrada signed an eight-day moratorium on the truck ban starting May 13, 2014 until May 20, 2014.

The moratorium resulted from a formal request made by Department of Public Works and Highways (DPWH) Secretary Rogelio L. Singson last May 9 asking Estrada for the temporary suspension of the controversial truck ban in line with the 2014 World Economic Forum on East Asia. The forum will gather international experts on business, government, politics, and civil leaders in the ASEAN region. According to Sec. Singson, the moratorium on truck ban is intended to clear the huge back log of containers due to long queuing of 6-7 vessels at any given time.

The said moratorium will provide all stakeholders opportunity to assess and evaluate the most efficient truck operating hours and to mitigate traffic congestion in the City of Manila.

For more details, Executive Order No. 49 can be downloaded at www.edc.net.ph

EDC recommends simplification of the new accreditation policy of BIR and BOC

May 14, 2014

The Export Development Council (EDC) recommended to the Department of Finance Secretary Cesar V. Purisima to revisit the new accreditation policy providing a two-stage vetting accreditation of importers and customs brokers with the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR). This is in response to the issues and concerns identified by EDC affecting exporters who import raw materials and other inputs to their export products. Without such accreditation, they will not be able to transact with the BOC.

The recommendations highlighted the impact of BIR Revenue Memorandum Order No. 10-2014 and Customs Memorandum Order No. 04-2014 specifically on the inconsistent provisions on the documentary requirements, processing time, accrediting offices, records-keeping and transitory provisions. EDC further recommended to harmonize and simplify the requirements in these issuances for trade facilitation.

Exporters/Stakeholders consulted for PEDP 2014-2016 Regional Consultation Workshops

May 14, 2014

Essential to the development and crafting of the Philippine Export Development Plan 2014-2016 is the consultation among exporters, business support organizations, and government agency partners. Hence, the recently concluded PEDP 2014-2016 Regional Consultation Workshops held in Davao, NCR and Cebu validated the export status, targets and strategies laid down for PEDP 2014-2016

The Consultation Workshops were organized by the Department of Trade and Industry in cooperation with the EU-TRTA Project 3, the Export Development Council and the Philippine Exporters Confederation, Inc.

The PEDP is one of the most important elements of the International Trade Strategy. The plan, when approved by the President, will be jointly implemented by the government, exporters and other concerned sectors.

PH MSMEs urged to seize opportunities in AEC 2015 to accelerate PH advantage

May 14, 2014

Former NEDA Secretary, now USAID Chief of Party, Dr. Cielito F. Habito urges PH MSMEs to seize opportunities to accelerate PH advantage in ASEAN Economic Community (AEC) 2015 and other trade agreements. He stated that despite the challenges posed by the AEC, it also opens more opportunities for less developed members. Unbalanced gains were foreseen as big businesses are better positioned than MSMEs to reap gains, hence small businesses require deliberate support and assistance.

Dr. Habito mentioned that value chains which are largely intra-industry in nature will cross national boundaries and complement PH products, hence resulting to lesser competition. He also encouraged MSMEs to enhance efficiency via supply chain design & strategic location of various business functions. Dr. Habito added that greater efficiency can result from more technology sharing and can lower costs & prices for all. He urged MSMEs to deploy skilled labor strategically for maximum productivity and tap wider financing options from integrated regional capital markets.

Congress calls for amendment of IRR of Magna Carta for MSMEs

April 23, 2014

Congressman Rufus Rodriguez, in a privilege speech last 05 March 2014, calls for the amendment of the BSP Circular 625, the implementing rules and regulations of the Magna Carta for MSMEs, to align the sanctions on non-compliance to the mandatory allocation of loans. He also asked to clearly define “loan portfolio” and to restructure the monitoring system. He recommended for a review of the law by convening the Oversight Committee to validate varying claims on how the law is interpreted and implemented. These recommendations aim to provide better access of micro, small and medium enterprises (MSMEs) to credit .

According to him, despite the numerous existing financing programs, MSMEs still find difficulty in accessing credit. While it is true that the opportunity for the poor to be productive can come from the MSME sector which is seen as the critical driver of the country’s economic growth, the sector’s performance remains constrained by high cost of doing business, lack of access to financing, lack of market information, low productivity and competitiveness.

As a result, the Congressional Oversight Committee will convene when Congress resumes in May 2014.

EDC Creates Public-Private TWG on Customs Modernization and Tariff Act

April 23, 2014

The Export Development Council led the organization of a dedicated Technical Working Group (TWG) that studies the bills on Customs Modernization and Tariff Act (CMTA). The TWG aims to ensure that the CMTA is consistent with the Revised Kyoto Convention and other international trade facilitation protocols.

The EDC TWG-CMTA acts as the primary technical group that shall consolidate and solidify the positions of various relevant agencies both from the public and private sectors such as the Department of Trade and Industry (DTI), Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation, Inc. (PHILEXPORT), Philippine Economic Zone Authority (PEZA), Makati Business Club (MBC), National Economic and Development Authority (NEDA), Tariff Commission (TC), etc. This is in conjunction with the initiatives from the House of Representatives and the Senate of the Philippines in innovating and updating Customs policies to make it more responsive to a modernized and automated environment.

DTI’s Export Trade Complaints Committee helps resolve export disputes

April 23, 2014

The Export Trade Complaints Committee (ETCC) of the DTI Export Management Bureau (EMB) helps resolve complaints arising from export trade-related transactions including but not limited to: non-payment of delivery, non-delivery of paid order, short shipment, cancelled L/C order, quality specifications deviations, and other nature of complaints.

The ETCC is chaired by EMB Director Senen M. Perlada and composed of representatives from EMB, DTI Office of Legal Affairs (OLA), Philippine Exporters Confederation (PHILEXPORT) and the Credit Information Bureau Inc. (CIBI). They are assisted by EMB personnel duly trained by the Makati Regional Trial Court and the Supreme Court of the Philippines, to mediate on export-related complaints. Complainants may file complaints to EMB Director Perlada, the nearest DTI regional / provincial office or Philippine Trade Post abroad.

For more information, the ETCC Secretariat may be contacted at tel. +63(2)465-3300 loc. 112 or email at: etcc_Secretariat@dti.gov.ph

DENR-FMB, DTI initiates Forum on Legal Timber Verification

April 23, 2014

The Department of Environment and Natural Resources-Forest Management Bureau (DENR-FMB) and the Department of Trade and Industry (DTI) are supporting initiatives of the Chamber of Furniture Industries of the Philippines (CFIP) for the verification of legal timber to help Philippine producers comply with requirements of the EU Timber Regulation (EUTR) and other international trade legislation.

The EU Timber regulation is a binding legislation that the European Union has introduced to reduce illegal logging. This regulation is part of a 2003 initiative, called the EU Forest law Enforcement, Governance and Trade (FLEGT) Action Plan, which recognizes the role both producers and consumers play in curbing and stopping illegal timber harvesting in trade.

In the said Forum held last 26 March 2014, Mr. Raul Briz, Senior Forester Management Specialist said that the DENR-FMB is currently developing a clear structure of all documents required for legal verification that will provide the structure for the Timber Legality Assurance Scheme and setting up TLA procedures in compliance with EUTR.

At present, the Philippines is working towards a comprehensive approach for importers to conduct "Due Diligence" and a system that will continually improve transparency across the supply chain.

Mr. Nicolaas de Lange, CFIP National President emphasized that the EUTR will affect the furniture industry which employs 1.9 million direct and indirect workers in 2013. He further said that 20-25% of the total industry's exports go to the EU market.

EDC pushes Batangas International Terminal as alternative Ports

March 20, 2014

With the on-going efforts in resolving issues arising from the truck ban, the Export Development Council urges exporters and truckers to use Batangas International Port as an alternate port for goods moving in and out of South Luzon since the Port of Manila is congested and operating beyond its capacity. Hence, cargo trucks continue to congest not just the port but also the major thoroughfares in Metro Manila.

EDC believes that Batangas Port is ready to accommodate shipments since all major road infrastructure networks are in place. It also serves as a complementary gateway for the ports of Manila. The port is directly connected with the major highways via modern infrastructure making it conveniently accessible to shippers, truckers and passengers.

To realize this, EDC recommended the issuance of a policy or an executive order directing foreign cargoes to shift to the newly developed Batangas International Port as a long-term solution to decongest the Ports of Manila.

Moreover, EDC and PEZA are jointly encouraging ecozone locators to nominate Batangas International Port as their port of loading of export cargoes and unloading of imported raw materials.

EDC supports the proposed Super Green Lane (SGL) for SMEs

March 20, 2014

The Export Development Council (EDC) expressed its support on DTI’s initiative to enhance the Super Green Lane (SGL), intended to introduce greater efficiencies in customs and trade to small and medium enterprises.

The Super Green Lane, established by Executive Order No. 230 s. 2000, provides a special facility which, with the use of Electronic Data Interchange, will allow for the advance processing and clearance of the shipments of the country’s topmost qualified importers without prior physical examination and documentary check on their shipments upon compliance with pertinent Customs laws, rules and regulations.

With the proposed expansion of the SGL for SMEs, modernization and efficiency in customs clearance processing can now be greatly felt by almost 99.6% of Philippine SMEs; since the initial SGL and SGL Plus only covered 0.4% of the industry. It will assure qualified SME importers and exporters with simplified, prompt and efficient customs clearance and will pave the way towards other government initiatives, such as the Authorized Economic Operator (AEO), Self-Certification System and the National SME Development Plan.