Computerizing import and export transactions will help minimize personal contacts between traders and government functionaries involved in the processing of papers.

It will also pave the way for the e-payment of fees, including the use of mobile phones in money transfers of fees from a trader’s back account to those of the agencies they need to pay to, a practice now common in the private sector.

The system took off with the processing of import documents which the government prioritized since import transactions are revenue-generating. Morales however pledged that the same system will cover export documents very soon.

For the benefit of users of the system, the following contact persons were named: June Policarpio for BOI, Dr. Rico Capulong for BAI, Jaime Taborda for the BoC, Jaime Zabala for BIR, Dr. Larry Lacson for BPI, Carmencita Magno for BPS, Raymond Sia for FDA, Josephine Bibit for NFA, Joy Alguso for PEZA, and Rafael Mundo for SRA. -- Abe P. Belena, PHILEXPORT News and Features <--back

2. No implementing rules yet for new food regulatory law

The draft implementing rules and regulations of the Food and Drug Administration (FDA) Act of 2009 has yet to be finalized after seven months of having been enacted into law.

According to the Bureau of Food and Drugs (BFAD) Director Nazarita T. Tacandong, the University of the Philippine (UP) Law Center is still working on the draft implementing rules and regulations (IRR) of the new food administration law.

While the draft IRR is being finalized, the new schedule of licensing and registration fees designed to meet the financial requirements of a modernized food and drug regulatory system has also yet to be imposed.

Tacandong noted that public consultations have already been conducted regarding the new schedule of fees and it merited strong disfavor from various sectors.

Notwithstanding, the BFAD has already submitted the revised fees to the National Economic Development Authority (NEDA), which is mandated by Cabinet Resolution No. 1 Series of 2007 to approve all new fees and increase in fees imposed by all departments, bureaus, agencies, and offices of the national government.

Under the new schedule of fees, the establishment licensing fees are increased by at least 250 percent, the product registration fees by at least 500 percent, and laboratory services by at least 100 percent.

While food producers and drug manufacturers appreciate the objectives of the new law, which is primarily to upgrade personnel and laboratory equipment and facilities, they are dismayed by the financial burden that comes with this measure.

As pointed out by PHILFOODEX President Roberto Amores, foreign governments have assumed the responsibility of modernizing laboratory facilities in an effort to help improve the competitiveness of their food products without passing on virtually the entire financial cost to the producers.

The Philippines has missed ample export opportunities for not being able to satisfy the food safety requirements of other countries.

Oscar Barera, chemical sector Trustee in the Philippine Exporters Confederation, Inc. (PHILEXPORT), said that the reason for the missed opportunities is possibly because of the perception that the country’s food exports are unsafe, but that it does not have the equipment to show that these products do meet the food safety standards set by other countries.

These missed export opportunities are likely to burgeon with the United States and the European Union hinting to impose more stringent requirements related to food safety and the environment.

The U.S. FDA Food Safety Modernization Act is expected to be signed into law anytime soon requiring import certification of a greater number of products, while the European Union is now implementing its Fishing Regulation: Catch-Certification Scheme that will cover all export of fishery products to the EU. -- Ritchelle Alburo, PHILEXPORT News and Features <--back

3. Job creation strategy that provides SME access to credit pushed

Economists are pushing for any serious job creation strategy that provides the small and medium enterprises (SMEs) access to credit and finance crucial in helping them to flourish.

This recommendation was made by Fernando Aldaba and Reuel Hermoso in a paper titled “Crafting Coherent Policy Responses to the Crisis in the Philippines” presented during a forum on overcoming the jobs crisis and shaping an inclusive recovery.

“In the country, the lack of access to financing has severely constrained the growth of SMEs as private banks are reluctant to lend to SMEs because of their general aversion to dealing with a large number of small accounts,” they noted.

Many SMEs, the main generators of jobs in the country, cannot access available funds due to their limited track record, limited acceptable collateral and inadequate financial statements and business plans.

Aldaba and Hermoso said some private banks were able to overcome these challenges by providing assistance in preparing accounting records, business advice, and simplifying loan documentation and tailor fitting loans to match the borrower’s cash flow.

Apart from access to credit and finance for the SMEs, they also stressed the need for institutions to monitor and distribute new technologies and provide technological services for businesses.

Such services may include material testing, inspection, certification of quality, instrument calibration, establishment of repositories of technical information, patent registration, research and design and technical training.

The paper also pushed for the inclusion in the job creation strategy of programs for the provision of information exchange to local firms to make strategic linkages with multinational corporations. This is similar to that set-up by Singapore.

It also cited the need for the crafting and implementing a sound industrial policy for job generation founded on a strategic partnership between the government and the private sector.

To achieve this, Aldaba and Hermoso said venues for collaboration and support must be provided for sunrise and potential industries where the country has comparative advantage especially for highly labor-intensive sectors or for those that create multiple linkages in the economy.

The National Competitiveness Council earlier identified tourism, agri-business, information technology/business process outsourcing (BPO), mining, electronics, supply chain logistics with value-added services, manufacturing particularly shipbuilding and automotive parts, and health wellness including retirement as the country’s sunrise industries.

“This collaboration should bring about more growth drivers for the economy so that it can be weaned from its dependence on semi-conductor exports and remittances,” noted Aldaba and Hermoso.

They also underscored the important role of the local government units (LGUs) in creating adequate environment to attract and sustain investments especially labor intensive ones.

“Local governments have been focused more on their regulatory function in terms of private sector investments,” they said. “Their paradigm must be shifted towards the promotion of local economic development and investments in their areas.”

To generate the much-needed jobs in the country, the paper further proposed the development of financial markets to tap domestic savings and harness remittances into productive investments especially in local rural economies to provide both in- farm and off-farm employment.

Likewise, the implementation of governance and institutional reforms, continuing fiscal reforms and attracting both foreign and local investors in the country have been identified important in sustaining high economic growth which could create more productive employment opportunities.

Aldaba and Hermoso pointed out that addressing tight fiscal space, inadequate infrastructure and weak investor confidence would result in increased private investments from domestic and foreign sources.

“But, to ensure that growth can be sustained at a high level similar to that achieved by many Southeast and East Asian economies in recent decades, the Government will also need to address the market failures (such as information and coordination externalities) in order to encourage investments for diversifying and expanding the manufacturing sector/exports, and in upgrading the level of technology,” it noted. -- Danielle Venz, PHILEXPORT News and Features <--back

4. GTH exports slightly recover in 2009

Philippine exports for gifts, toys and houseware (GTH) showed slight recovery for some markets last year after constantly declining for the period of 2004 to 2008.

Based on the ITC Trademap data, Benjamin Chiu, market analyst of iSEARCH Philippine Exporters Confederation, Inc. Cebu, said the United Kingdom, Germany, France and the United States reported positive average growths for the three consecutive quarters in 2009.

This after the Philippine exports were continuously declining over the five years in 2004 to 2008 by minus four percent yearly, even as total world exports for GTH were persistently growing in modest amounts during the period.

Delfin Bibat, former Foreign Buyers Association of the Philippines (FOBAP) director and country manager of Southgate Ltd. (The Connor Group), attributed last year’s slight recovery of GTH exports to the uniqueness of the situation.

“Buyers replenished their stocks because they cleaned up their inventories starting the middle or even early part of 2008. By middle part of 2009, most of the inventories had been already cleaned up so inventory levels were low, thus they had to start building up with new products,” he explained in an interview.

However, Bibat pointed out that the inventory situation was a “one-time thing”.

To achieve dramatic increases in exports, he encouraged businesses to undertake product engineering program, clustering initiative to address big volume order and aggressive marketing program.

“We have to identify buyers who can still afford to buy products at our prices because we cannot sell lower anyway. Obviously, it is not market specific, it is buyer specific,” added Bibat.

Nora Halili Lao, PHILEXPORT trustee for the holiday decors and giftwares sector, confirmed the slight increase in GTH exports last year.

Lao said more exporters were able to participate in major international trade fairs due to the establishment of the P1-billion Export Support Fund (ESF).

The ESF was designed to help exporters cope with the crisis not only for trade promotions and foreign trade exhibit participation but also for more long-term projects that enhance the country’s competitive advantages. -- Danielle Venz, PHILEXPORT News and Features <--back

5. Earth Hour slated this March 27

Exporters are encouraged to commit to the challenge of solving the climate change crisis through joining Earth Hour 2010.

All they need to do is switch off their lights from 8:30 p.m. to 9:30 p.m. on 27th of March to express their care towards the environment and Mother Earth.

The world’s largest mass participation event is among the environment-friendly actions that are suggested to be undertaken for 30 days until April 21 prior to the celebration of Philippines’ Earth Day on April 22.

Earth Day is celebrated simultaneously around the globe by more than a billion people every year. These green acts also include, among others, planting of indigenous plants, recycling and reusing non-biodegradable wastes, switching from incandescent bulbs to compact fluorescent lamps, riding of mass transit systems and water and electricity conservation.

The Earth Day Movement recognized that climate change is the most pressing issue for the country amid the destruction brought about by typhoons Ondoy and Pepeng last year. Earth Day Network Philippines believes that addressing climate change requires both individual and collective action.

In line with this, Earth Day 2010 carries the national theme “Hamon ng Panahon – CLIMATE CHANGE, 10 Milyung Solusyon (Kilos na! Ngayon Na!)”

Meanwhile, Smart and Globe networks are providing a premium group messaging service which aims to better serve the community and its environment.

“TextCast” is used to enhance the international communications between members of environment groups; non-government organizations and other advocacy groups; media groups and law enforcement units. -- Danielle Venz, PHILEXPORT News and Features <--back