During the launch last week, Customs chief Napoleon Morales promised that the new internet-driven system has interconnected 10 key government agencies that are involved in the issuance of permits, licenses and clearances on imports and exports.

The interconnection, Morales had said, will make the processing of international trade papers fast, transparent, consistent and predictable. Targeted to be wired into the system are 30 other agencies.

This will bolster the operations of the BoCs Electronic to Mobile (E2M) computerization and automation program which is already operational in 10 major ports of exit and entry across the archipelago.

At the end of the day, the best yardstick to the new system is the ease or difficulty port users will enjoy or suffer in the processing of their exports and imports,the competitive czar concluded. -- Abe P. Belena, PHILEXPORT News and Features <--back

2. Quick palace action on complaints, suggestions ready to take off NCC

A system of quickly acting on citizenscomplaints and suggestions by the Office of the President is ready to take off.

This was announced by National Competitiveness Council (NCC) private sector Chairman Cesar Bautista as the competitiveness body strengthens its drive to upgrade the quality of governance in the Philippines.

He revealed that the system is being set up by the NCC and the Presidential Action Center headed by Secretary Herminigildo Dumlao. It was patterned after a highly successful system put in place by South Korea.

The idea behind the project is for all complaints from citizens lodged in Malacañang to be pursued through the concerned mix of government agencies under a single authority,the competitiveness czar said.

At the core of the project is the installation of a monitoring system for appeals lodged in the Office of the President.

The online way of registering complaints, monitoring and qualifying progress results is being developed from programs that already work elsewhere,Bautista explained. In Korea, this has reduced processing time to 6.5 days from 22 days and the satisfaction rose from 30 to 46 percent.

Putting in place the system under President Arroyo will not only upgrade the quality of services rendered by the Presidential Action Center but will also dramatically bring the highest office in the country closer to the people, Bautista said.

The next President will then have a ready system at taking action on complaints and suggestions brought to his office soon after he takes his oath, he pointed out.

Citing an example, Bautista said real estate buyer in one of the cities in Metro Manila may send a complaint to Malacañang by e-mail, telegram or fax to the PAC on the fact that the title to his lot has not been released after several months.

The PAC will then lodge the complaint in its central computer, contact the office involved and ask those concerned to act on it. The status of the complaint and actions taken will then be tracked down electronically until its resolution.

Suggestions from the public on how to improve the delivery of frontline services and other problems at governance will be dealt with the same way. The system will encourage people to get involved at improving the quality of governance in the Office of the President, Bautista said. -- Abe P. Belena, PHILEXPORT News and Features <--back

3. Gov't details cost implications of new international plant protection measure

The Bureau of Plant Industry (BPI) warned exporters of the cost and time adjustments they have to make in compliance with the revised international plant protection policy.

In a forum explaining this new international policy, Joan Moso of the Plant Quarantine Office of the BPI, said that the cost of fumigation is expected to increase with the fumigators having to invest on equipment, materials and satisfy other additional requirements to comply with the new version of the International Standard for Sanitary Measure (ISPM) No. 15 (ISPM15).

ISPM No. 15 set out the guidelines for regulating wood packaging materials in international trade to ensure that these will not serve as carriers of quarantine pests when transported to another country.

The revised regulation increases the number of required gas readings from two to three taken at a minimum two, four, and twenty-four hours thereby requiring three tubes, which cost P500 each. The entire fumigation process takes at least 24 hours plus 30 minutes and another three to fours hours for ventilation.

Other sources of added costs are the requirements to use fans for gas distribution and setting the maximum loading of containers at about 80% of their volume to ensure a thorough dispersal of the fumigant and to allow proper circulation of the gas.

The revised international plant protection regulation also requires sheets to be at least 150 microns in thickness and the floor must be impermeable to fumigant. Otherwise, gas-proof sheets must be laid on the floor. A vaporizer is also needed in applying the methyl bromide to fully volatize the fumigant prior to its entry into the fumigation enclosure.

Moso explained that while the adoption of the revised ISPM-15 incurs added costs to our exporters, it would help prepare our exporters to satisfy the increasingly stringent phytosanitary requirements of other countries.

To ensure that exporters deal with professional servicec providers, Moso encouraged them to avail of the services of fumigators who are BPI-accredited. They should likewise request from them a cost breakdown, further noting that the BPI cannot set a standard fumigation rate.

Given the new demands of this new policy on our fumigators and exporters, Ma. Flordeliza C. Leong, Manager of the Advocacy and Communications Department of PHILEXPORT, stressed the importance of coming up with a list of international best practices on fumigation to ensure that Philippine implementation will take the least cost and shortest time possible.

ISPM15 covers wood packaging materials made from raw wood, such as crates, boxes, packaging cases, dunnage, pallets, cable drums and spools, which can be present in almost any imported consignment including those that would not normally be subject to phytosanitary inspection by the BPI.

Moso clarified that this does not cover wood packaging materials (WMP) made from wood that is six millimeters or less in thickness and WPM from wholly processed wood materials, such as plywood, particle board, oriented strand board or veneer that have been created using glue, heat or pressure.

If the export product is bound to Australia however, Moso noted that exporters should secure a manufacturer's declaration that will certify that the wholly processed wood material was processed 21 days prior to export, that is, from the date of manufacture to the date the export goods were handed over to the shipping lines.

The revised version also introduced additional exemptions, such as barrels for wine and spirits, gift boxes for cigars, wine and others, wood components permanently attached to freight vehicles and containers.

The Philippines will implement ISPM-15 by October 2010, six months after its scheduled date of publication. -- Ritchelle Alburo, PHILEXPORT News and Features <--back

4. Integrate key trends into product designs, exporters urged

Exporters of gifts, toys, travel goods, furnishings and furniture are advised to integrate key trends into their product designs to meet needs of customers particularly in the United States, high-end China and the Middle East.

Delfin Bibat, former Foreign Buyers Association of the Philippines (FOBAP) director and country manager of Southgate Ltd. (The Connor Group), in a seminar noted that simplicity, a back-to-nature approach and an emphasis on earth and home are current design trends.

There has been also a movement toward newness or freshness, eco-friendly and sustainability, redecorating instead of refurbishing and from conspicuous to conscious designs, he said.

Bibat said developing goods in line with these design trends along with addressing key market access issues are important to continue penetrating the recovering US market and high-end China and the Middle East as well.

The US market is in the process of recovery from the global economic recession but probably with a more responsible consumer,he noted.

Bibat cited results of international trade shows, including American regional trade shows, indicating increases in attendance and business activity and higher sales.

However, while there were indicators of positive optimistic expectations, consumers continue to be cautious in their buying intentions because of uncertainty, he noted.

American retailers are reporting record profits. Everybody is showing profits except for furniture brands; I feel that the furniture business is going to rebound later than the other sectors,he added.

Bibat said the Middle East is also an alternative market for Philippine exporters, citing its growing economy boosted by its oil income.

Likewise, China will continue to be a high growth market, he said.

The potential for Philippine products will be very bright but initial access might be difficult. China is almost limitless but there are language barrier and price expectations,he added. -- Danielle Venz, PHILEXPORT News and Features <--back

5. Unemployment insurance in RP feasible, says report

An unemployment insurance (UI) in the Philippines is feasible and that in combination with possible changes in the labor law could help make the labor market more protected for workers, according to a report.

Axel Weber, consultant of the International Labour Organization (ILO), said the Social Security System provides protection in case of illness, old age, accident and even social assistance in case of poverty.

But there is hardly any formalized social protection for the unemployed,he pointed out.

To address this, Weber proposed the introduction of UI based on ILO Convention 102 which will be financed by contributions from employers and employees in equal shares providing a basic protection in case of unemployment.

The scheme was also meant to provide the unemployed workers with training opportunities and help them find new jobs.

To eventually include all employees that are members of SSS or the Government Service Insurance System (GSIS), the report proposed that such insurance be administered by SSS/GSIS for financing and cash benefits, the Public Employment Services Offices (PESOs) for registration and job facilitation and the Technical Education and Skills Development Authority (TESDA) for training services.

Weber pointed out that the Philippine government already began raising the idea of making UI available in early 2009 amid displacement of workers in the light of the global financial crisis.

However, there were no serious discussions that ever took off even as employers recognized the schemes advantages, but are concerned about additional labor costs that would be imposed in the form of an additional contribution.

The SSS is also not against unemployment insurance per se, but raised the need to factor in various considerations, foremost of these is the existing funds that can be tapped, it was reported in a forum.

Trade unions, on the other hand, are skeptical about an additional contribution. They prefer an unemployment insurance that is funded by the State although, they are aware of the problem that this would be de-link the benefits from the wages, added Weber in the report.

For their part, different government agencies have varying positions concerning UI. The Department of Labor and Employment is supporting the approach, while others believe that people especially public workers are already protected.

In the end, there will be a progress only if the partners, namely employers, trade unions and government can agree on a common strategy,said Weber.

He also raised the need for possible legislative reforms to support such scheme.

The introduction of a contributory unemployment insurance scheme may only work in practice if it is done in tandem with labor law reform that allows for some easing of provisions regarding dismissal,Weber said.

This means that employers would have an obligation to offer jobs with social security, but that they could also retrench workers under some specific restrictive conditions, for example, when the economic situation of an enterprise calls for adjustment of labor,he added. -- Danielle Venz, PHILEXPORT News and Features <--back

6. GAP certification crucial in increasing market access of agriculture products

Fruit and vegetable growers and farm owners are encouraged to seek certification of Good Agricultural Practices (GAP) crucial in increasing market access of their products both in the local and foreign markets.

Gilberto Layese, director of the Department of Agricultures Bureau of Agriculture and Fisheries Product Standards (BAFPS), cited for example a lettuce producer based in Cavite that gained a number of food outlet customers after its farm received certification according to such food safety and quality assurance system.

Layase stressed that GAP-certified products also command premium price in the market.

In Thailand, you will be surprised that each vegetable in plastic sold in the department stores bear a logo GAP. And according to them, products which have been certified under GAP have five to 10 percent mark-up in terms of price and people are willing to buy,he said.

Layase said Philippine GAP is harmonized with ASEAN GAP. Its module focuses on food safety, produce quality and environmental management.

Our ASEAN GAP now would have to be benchmarked formally with GlobalGAP. Once it is benchmarked with the GlobalGAP, then we are confident that our standards meet its requirements,he said.

However, Layase said there are some constraints facing benchmarking with the GlobalGAP, like the Philippines exports its products more to the United States, Japan and China than to Europe.

One of the advantages of having a certification is if you are a buyer, you will rely on a product which you know is produced according to certain standards,he said.

Aspects of inspection include a farms location, structure, environment soil and water, maintenance and farming practices like use of pesticides, fertilizers, other agrochemicals, disease management, harvesting, packaging and cold storage. -- Danielle Venz, PHILEXPORT News and Features <--back