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Digital transformation highlighted in this year’s National Export Congress

“Driving Exports Through Digital Transformation” was this years’ theme for the annual National Export Congress which was successfully conducted last 06 December 2019 at the Philippine International Convention Center. The theme focused on technology and innovation initiatives to grow exports and promote collaboration between and among the government, industry and academe as a critical element in improving the country’s economy.

The Congress tackled timely and relevant issues on what policies can the government develop to cope up with the demand and rigors of converting the country’s international trade agenda into the digital era.  It also tackled how businesses, especially the export sector, could equip themselves and properly respond to the fast-changing technological revolution that is dominating and shaping today’s global trade.

DTI Secretary Ramon M. Lopez, in his keynote speech, revealed that the department has called for a P25 billion to P30 billion budget for the export sector over a three-year period as government moves to provide all-out support for the export sector through incentives under the Strategic Investment Priorities Plan (SIPP), implementation of standards and safeguard measures to strengthen domestic manufacturing, reduced trade barriers, and fund mobilization, including soft loans. The Trade Chief added that such a move will not only bolster the country’s economic growth but will address our trade deficit, generate more jobs and employment and income opportunities for Filipinos.

On the other hand, PHILEXPORT President, Mr. Sergio R. Ortiz-Luis, Jr, emphasized the need for the country’s MSMEs to level up their operations and improve their business processes and efficiencies as the economy moves towards emerging opportunities in the age of digitalization.

Moreover, the NEC also gave due recognition and acknowledgment to twenty-one (21) Top Filipino exporters of 2018. They were given recognition based on their track record, excellence and innovation in the delivery of goods and services. Their fortitude and determination to achieve success in producing globally competitive products has greatly contributed to the country’s export revenue.

The awards were presented and handed out by DTI Secretary Ramon Lopez, PHILEXPORT President Sergio Ortiz-Luis, Undersecretary Abdulgani Macatoman, and DTI-EMB Director, Senen M. Perlada.

The NEC is the culminating event of the National Exporters Week (NEW). Every first week of December is the annual celebration of the NEW per Presidential Proclamation No. 9931, s. 1996 and House Resolution No. 33. It highlights the government and private sectors’ commitment to continuously work together to sustain export promotion and development.-GTM

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Philippines joins ASEAN exchange of electronic Certificate of Origin

The Philippines can now exchange electronic Certificate of Origin (e-CO) with Indonesia and Malaysia as it joins ASEAN Single Window (ASW) Live Operation on 30 December 2019.

The e-CO refers to the ASEAN Trade in Goods Agreement (ATIGA) Form D, an international trade document attesting that goods in a particular export shipment were wholly obtained, produced, manufactured, or processed in a particular country.

As confirmed in an email by the ASEAN Secretariat, “the remaining AMS (ASEAN Member States) will need more time to complete domestic procedures and resolving remaining technical issues”.

Consequently, the Bureau of Customs, through its Export Coordination Division (ECD) and Export Divisions in selected ports shall now issue e-CO using the TradeNet platform pursuant to Customs Memorandum Order (CMO) 15-2019.

The Order governs the application, submission, and processing of e-CO and aims “to facilitate the transmission of e-CO for export products and the receipt of e-CO for imported products.” Meanwhile, the TradeNet covers the functions of the Philippine National Single Window (PNSW). It serves as an automated permit, licensing, and clearance system integrated into one platform for 66 Trade Regulatory Government Agencies (TRGAs) and 10 economic zones. ARB

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DOTr initiatives show strong support to the PEDP

In support to Strategy 1 of the Philippine Export Development Plan (PEDP) 2018-2022 which is to improve the overall climate for export development, the Department of Transportation (DOTr) contributed through its submission of the Agency’s Policies, Action Plans and Programs (PAPs) to raise the productivity and competitiveness of Philippine Enterprises.

The DOTr PAPs focus on the development of infrastructures such as Railways, Maritime, Aviation, Road transport, and Toll roads. DOTr reported that from 2016 to 2019, it has reached a total of 119 completed airport projects; of which 70 projects are directly under the DOTr. Some completed projects include Marinduque, Sangley and Camiguin Airport.

Moreover, DOTr also reported numerous railway infrastructure projects namely the North-South Commuter Railway System, Metro Manila Subway, MRT3 Rehabilitation, Mindanao Railway, PNR South Long Haul (Manila-Batangas-Sorsogon), LRT-1 Cavite Extension and Subic-Clark Railway. It is noted that some of the said projects are now ongoing rehabilitation specifically that of the MRT-3 which includes the overhaul of the rail line’s 72 light rail vehicles, replacement of mainline tracks, rehabilitation of power and overhead catenary systems, and other improvements.

All these initiatives are geared to make the movement of goods and people not only easier and faster but more so, cost-effective and efficient.

For other programs and further details, visit the DOTr website at http://dotr.gov.ph/- PKC

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Food exporters can now secure Export/Commodity Clearance in one day

October 2019, food exporters can now secure Food Export Certificate and Commodity Clearance in one day following the Food and Drug Administration (FDA) move to streamline its process and revision of application form. The old process requires exporters to wait 2-3 days to secure Export/Commodity Clearance.

In an advisory presented during the FDA Forum with Food Exporters on 22 October 2019, it noted that “In consonance with the provision of Republic Act No. 11032 otherwise known as the “Ease of Doing Business and Efficient Government Service Delivery Act of 2018”, the Common Services Laboratory (CSL) revised the current application forms template and process flow in the application of Food Export Certificate and Food Commodity Clearance”. Commodity Clearance is used to prove that the export product is freely sold in the country and safe for human consumption.

To apply for Export/Commodity Clearance, applicants shall submit two (2) copies of accomplished Application Form, photocopies of License to Operate and Certificate of Product Registration, Packing List or Sales Invoice and flash drive (will be returned to applicant) containing the filled templates of the draft Certificates and database.

Revised application form and process flow can be downloaded in the FDA website.

Exporters shall proceed to FDA-Common Services Laboratory office at Starmall Alabang. However, for applicants outside Metro Manila, regional/online application is targeted to be implemented by FDA in 2020.

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Battling Congestion with Intelligent Transportation System 

During his Government Address on The Roads and Traffic Expo, Chairman Danilo Lim of Metro Manila Development Authority (MMDA) talked about the importance of transportation as one of the key sector in our fast growing economy.

Classified as a Mega City by the United Nation, Metro Manila with its 13 million populations and still growing is seen to worsen and affect the current transportation and road system. Based on the Department of Public Ways and Highways (DPWH), the road system in Metro Manila only increased 7% in the past 10 years, having only 1167km from 1087km back in 2008. In relation, the recent study conducted by the Asian Development Bank (ADB), Metro Manila ranked as the most congested city among the 278 developing cities in Asia. Placing first in the “Relative Congestion in ASEAN cities with populations greater than 5 Million” using the average of 1.24, Metro Manila get an average of 1.5.

To battle congestion and related transportation problems, the Philippine government in partnership with Japan International Cooperation Agency (JICA) came up with the Intelligent Transport System, a 5 year comprehensive traffic management plan that aims to complete the data driven analysis of the current traffic structure in Metro Manila with the goal to improve the mobility, connectivity, and safety of Filipinos.

JICA allocated 7% out of their USD 1 trillion outstanding loan for the Philippine alone. JICA and the Philippines currently have 27 ongoing projects totaling USD 15 Billion and 16 out of the 27 ongoing projects are related and allocated for transportation sector alone; with an estimate of amount of Php 375 Billion commitment.

With this assistance from JICA as well as the “Build Build Build” program by the current administration, MMDA Chairman Lim is positive they could “Battle” the Metro Manila congestion. – KJC

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Government agencies provide continuous support for export development

Government agencies cited under Memorandum Circular (MC) No. 27 provide continuous support for export development to achieve the export target of $122B-$130B by year 2022 through the implementation of their Programs, Action Plans and Policies (PAPs).

The Departments of Trade & Industry, Foreign Affairs, Agriculture, Energy, Environment and Natural Resources, Health, Finance, Information and Communication Technology, Interior and Local Government, Public works and Highways, Transportation, Tourism, Labor and Employment, Science and Technology, TESDA, CHED, BSP and NEDA are mandated to strengthen the implementation of the Philippine Export Development Plan (PEDP) through MC No. 27.

The foregoing agencies are enjoined to submit to the Export Development Council (EDC) their PAPs aligned to the PEDP strategies in compliance to MC No. 62 “Approving the PEDP 2018-2022 and directing concerned agencies to ensure its implementation” as approved by the President on 26 June 2019.

In the recently convened PEDP Consultation Meeting with the 18 agencies, it was noted that accomplishments and initiatives from the said stakeholders will be reported to the exporting community and submitted to the President during the National Export Congress slated on 06 December 2019 at the Philippine International Convention Center. Said report is in compliance to the implementation of the PEDP 2018-2022.

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2019 National Export Congress: SAVE THE DATE

The Department of Trade and Industry-Export Marketing Bureau (DTI-EMB), Export Development Council (EDC) and the Philippine Exporters Confederation, Inc. (PHILEXPORT) cordially invites all exporters, Small and Medium Enterprises, Academe, International Organizations and relevant stakeholders  to  save the date and participate in this year’s National Export Congress (NEC) 2019 on 06 December 2019, 8:00 -4:00 PM at the Philippine International Convention Center, CCP Complex, Pasay City, with the theme “DRIVING EXPORTS THROUGH DIGITAL TRANSFORMATION”.

The Congress will showcase how the government will address the challenges brought about by the Fourth Industrial Revolution (4IR) and how the private sector and businesses, specifically the export sector will respond to such challenges to meet their global market demands using digital tools. –GTM

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Instrument of accession to the Istanbul Convention for ATA Carnet awaits President’s approval 

The instrument of Philippine accession to the Customs Convention on ATA Carnet for the Temporary Admission of Goods or the Istanbul Convention is now at the Office of the President for his signature.

The ATA Carnet system is an international scheme that will allow temporary admission and tax-free and duty-free importation of commercial samples, professional equipment and articles for presentation or use in trade fairs, shows, and exhibitions without customs formalities.

The system will also allow traders to use ATA Carnet secured by an international guarantee system. The ATA Carnet is a single document of goods that will pass through several customs territories and will be valid up to one (1) year. It will foster free movement of goods between countries, thus saving costs and time in clearing goods at the border. Failure to re-export all goods listed on the Carnet will result in the payment of applicable duties.

The Department of Finance (DOF), in a letter to the Department of Foreign Affairs (DFA) dated 8 August 2019, requested the preparation of the Instrument of Accession subject to certain conditions. It also underscored that the Convention will “help promote efficiency, consistent with the Administration’s policy of promoting ease of doing business and efficient service delivery.”

Relevant government agencies such as the Department of Trade and Industry (DTI), Bureau of Customs (BOC), Bureau of Internal Revenue (BIR), Department of Tourism (DOT) and Tariff Commission signified their support by submitting their respective Certificates of Concurrence (COC) to the DFA through the DOF.

Once signed by the President, Senate ratification through the concurrence of at least two-thirds of its members is constitutionally required. The Convention provides that it shall enter into force three months after the Philippine has deposited its Instrument of Accession.

The implementation of the ATA Carnet system will support the Office of the President Memorandum Circular (MC) No. 27 which directs “all concerned agencies to strengthen the implementation of the Philippine Export Development Plan and involving other agencies in the development of the export sector”. Specifically, MC 27 mandates the DFA to advocate the Philippine Accession to the Istanbul Convention.- ARB

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Exporters continue to benefit travel tax exemption thru EO 589

The Export Development Council (EDC) in partnership with the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) continuously supports Philippine Exporters by giving travel tax exemption incentives through Executive Order (EO) 589 for the past 12 years.

Said EO only exempts exporters joining international trade fairs, exhibitions, selling missions, conferences, trade negotiations, seminars and other promotion activities, from paying the travel tax amounting to Php 1,620 for economy class and Php 2,700 for business class.

Since 2007,  EDC has endorsed 13,174 Travel Tax Exemptions (TTEs) applications to TIEZA which issues the exemption certificates. From the total TTEs issued 87% are for joining international trade fairs, 10% for outbound business and selling missions and  3%  for other participation i.e. conferences, seminars and promotions activities.

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

For other concerns and information on tax exemptions not covered by EO 589, you may call TIEZA at telephone numbers 249.5900 locals 641/646/643.- MGL

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BSP amends regulations on Foreign Exchange transactions

BSP amends regulations on Foreign Exchange transactions

The Bangko Sentral ng Pilipinas (BSP) conducted a briefing on the amendments to its Manual of Regulations on Foreign Exchange (FX) Transactions last 06 August 2019 at the BSP Assembly Hall in Manila.

Deputy Director Jodeth Niña Yeung discussed in details the recent amendments to BSP’s Manual of FX Regulations. Highlighting that these new policy reforms made the country’s FX regulatory framework further liberalized. In fact, according to Chinn-Ito Financial Index (2016), the Philippines’ FX flow openness index remains higher compared to ASEAN neighbors: Malaysia, Indonesia, Thailand and Vietnam. Because of BSP’s facilitative and more liberalized regulations, FX transactions are now more streamlined and simplified.

The amended FX regulations include the following major reforms:

  1. Lifting of prior BSP approval requirement for purely private sector FX loans. Henceforth, companies need only to register.
  2. Replacement of a positive list to a general policy requirement for loan purposes that can be funded with proceeds of foreign currency loans. FX transactions need only be legitimate, not contrary to laws, regulations, public order, public safety, or public policy.
  3. Lifting of BSP registration for certain short-term private sector loans, provided these are duly reported to BSP.
  4. Lifting of the USD 60,000.00 Daily limit on FX sale by depository banks for the balance of peso deposit accounts of non-residents.
  5. Migration to electronic submission of supporting documents, from previous hard copy requirement.
  6. Broadened coverage of inward investment transactions from previous two (2) categories: foreign direct investments and portfolio investments, to three (3) new categories, namely: instruments issued by residents, non-residents, and other forms of investments.
  7. Expansion of the list of banks allowed to register investments on behalf of BSP.
  8. Provision of a grace period of one (1) year from effectivity of the implementing Circular to file applications for registration of investments, regardless of the date of funding.

BSP underscores that these reforms are significant leaps that will allow foreign investors, public and private entities, and overseas Filipinos to have more flexibility in managing their foreign currency transactions and investments.

However, BSP despite its continuing efforts to further liberalize FX regulations, the banks may still adopt internal policies and are expected to exercise due diligence in compliance with these amendments. –EPV