Former customs chief who is now a PHILEXPORT-EDC consultant, told the reform advocates the Philippines may not be the first to join in the ASEAN, but our accession will be of better quality. Most developing countries that joined, he said, complied only with the rules’ general provisions.
When hired to study how far the country has complied with RKC rules two years back, the former customs chief found the country had gone halfway. He pinpointed the gaps and subsequently found allies in the BoC to push for the reforms. -- Abe P. Belena, PHILEXPORT News and Features <--back
2. New revenue rules practically abolish VAT-exempt exporters
Instead of helping exporters stay in business during these hard times, a new Bureau of Internal Revenue memorandum order has practically wiped out their zero-VAT rate.
The problem was brought to the attention of Export Development Council (EDC) executive director Senen Perlada by Mia S. Faustmann, president of the Guild of Philippine Jewellers.
Faustmann was referring to the registration procedure (RMO No. 7-2006) which requires sellers of raw materials to register export-oriented purchasers. It is such added work to suppliers, they do not often bother to register if their buyers end up exporting the finished goods, the lady jeweler said.
She asked the EC to make representations with the BIR for the latter to revert to the old, simpler system so that exporters who are reeling for lack of foreign orders, could get back the tax break they got through an act of Congress.
Jewellers are particularly peeved that an added red tape wiped out one of the few incentives they used to enjoy at a time that they are struggling for survival.
They even have difficulty competing in the local market due to the proliferation of smuggled, foreign-made jewelries. -- Abe P. Belena, PHILEXPORT News and Features <--back
3. Food mission to ME expected to improve market access of RP's halal products
The government will soon organize a food mission to the Middle East also geared towards improving market access of the country’s halal products in that part of the world.
Senen Perlada, director of the Department of Trade and Industry’s Bureau of Export Trade Promotion, said they will seek high level meetings with key officials particularly for the food sector and with regards to standards and halal matters.
“So that we would be able to improve the market access with the Middle Eastern KSA (Kingdom of Saudi Arabia), Kuwait, UAE (United Arab Emirates) to include Dubai,” he stressed.
Perlada said now that the National Halal Accreditation Board of the Philippines has been organized, “things will move faster than before.”
Mindanao “ulamas” or religious scholars established the halal body tasked to accredit halal certifiers. Certifiers are those who would determine if products were manufactured in compliance with the Philippine National Standard (PNS).
Halal certification does not only apply to food and non-food products, but also to services including logistics, hotels, restaurants and many others.
Perlada earlier said that aside from the Middle East, there are other important markets for halal products including India, China and South Africa.
“The global market is a potential market for exporters as consumers now are more conscious of nutritious and healthy foods,” he said, estimating the huge global halal trade between $580 billion to $1.2 trillion.
Government economic planners are optimistic the halal industry could offer bright opportunities for the country in times of global financial crisis and even during economic recovery.
Other growth drivers identified include the agriculture sector banking on the gains of the government’s Fertilizer, Irrigation and other rural infrastructure, Extension of research, Loans, Dryers and other postharvest facilities, and Seeds (FIELDS) program, the manufacturing sector due to lower production cost and better domestic demand, and the projected pick up of the mining sector and public and private construction. -- Danielle Venz, PHILEXPORT News and Features <--back
4. Nickel classification in EU directive soon to be implemented by EU countries
Two classifications in the European Union (EU) directive, opposed by several countries including the Philippines for categorizing some nickel substances and compounds dangerous/carcinogenic substances without a sufficient and globally established scientific basis, may soon be implemented by EU member countries.
The nickel classifications are part of the 30th to 31st Adaptation Technical Process (ATP) adopted for the Dangerous Substances Directive (DSD) which could be among the provisions of the new EU regulation on classification, labeling and packaging of substances and mixtures (CLP).
All existing harmonized classifications included in the 1 to 29 ATPs are already listed in Annex VI of CLP regulation.
However, the other two ATPs were not included in the new regulation purely because these were not yet published when the draft CLP regulation was being deliberated by the European Commission.
“With the CLP Regulation in place, there is now a move from the European Commission to submit the 30th and 31st ATP of the repealed DSD as the 1st ATP of the CLP Regulation,” said Commercial Attaché Michael Alfred Ignacio in a memorandum for Trade Undersecretary Thomas G. Aquino.
Based on the information gathered from the European Nickel Institute, the adoption by the EC of the 1st ATP is scheduled this summer after the submission of the draft to the European Parliament for scrutiny starting this month, he said.
The Philippines, along with other major producers of nickel, raised their concern on inclusion of classification of five nickel substances and around 120 nickel compounds in the 30th and 31st ATP of the repealed DSD during several meetings of the World Trade Organization Technical Barriers to Trade (WTO TBT).
They argued that the EU lacks scientific process/method in the inclusion of nickel substances in the list of harmonized classification of dangerous substances.
In line with this, the Post recommended that the Department of Trade and Industry continue supporting the lobbying efforts undertaken by the major world exporters of nickel substances both in the EU front and the WTO TBT committee.
Government data indicated that the Philippines ranked the world’s 7th world exporter of nickel ores and concentrates in 2007.
The new CLP regulation, which took effect last January 20, aligns existing EU legislation to the United Nations’ Globally Harmonised System (GHS).
Using internationally agreed classification criteria and labeling elements is expected to facilitate trade and contribute towards global efforts to protect humans and the environment from hazardous effects of chemicals.
The regulation will eventually replace DSD which concerns chemical safety and directive on dangerous preparations, and complement the registration, evaluation, authorization and restriction of chemicals (REACH).
The deadline for substance classification based on the new rules will be on December 1, 2010 and for mixtures on June 1, 2015. -- Danielle Venz, PHILEXPORT News and Features <--back
5. Imposition of higher petroleum tax when costs are low seen to make prices stable
A former Energy chief expressed support to the proposal to impose additional tax for petroleum products when prices are low.
“It is a good concept of taxation,” Francisco Viray said, “it is just a question of determining at what level they will start taxing and at what level they would compute the tax.”
Viray said such move will help promote energy conservation which could result in lower prices.
“If you mitigate excessive increases in consumption, you don’t increase the demand (to rise) that fast and you don’t expect also the prices to be volatile. The reason why prices dropped is because demand has dropped,” he explained.
Viray, who is also the National Competitiveness Council’s (NCC) champion on energy matters, said this will address oil price volatility and make local prices stable.
Oil prices have been hovering only around P30 per liter from last year’s high of P60 level due to lower energy demand.
University of the Philippines economists Benjamin Diokno, Dante Canlas and Felipe Medalla will propose to the next president the collection of higher tax when there is a threat for prices of petroleum products to go down.
Diokno said they will suggest that the additional tax collections from oil products be used to construct transportation systems to link urban centers and develop cities in the country.
The economist will also push for an increase in the value-added tax from 12 to 15 percent, but a reduction in the corporate income tax rate to 15 percent from 30 percent to offset higher VAT. -- Danielle Venz, PHILEXPORT News and Features <--back |
