Another amendment covers a separate section in the Act or a separate law altogether which shall explicitly enumerate rules to exercise quasi-judicial functions and deputization of the adjudication procedure. -- Ritchelle Alburo, PHILEXPORT News and Features <--back

2. EDC to push for bills to lower business costs and address unfair competition

A wide range of reforms calculated to bring down the cost of export and import freight was sought by the Export Development Council (EDC).

The list of legislative reforms of the semi-government EDC was in the form of a resolution which was endorsed by former trade Secretary Jesli Lapus before he bowed out of office at the end of June.

Putting more bite to the country's anti-smuggling law as part of a modern customs and tariff code was part of a legislative reform agenda which the Export Development Council (EDC) has submitted to the Philippine Chamber of Commerce and Industry as part of the 100 days agenda for President P-Noy.

In its resolution no. 8, the EDC sought to align the new customs code with the new global rules on customs administration under the Revised Kyoto Convention to which the country only recently agreed to follow.

A strong anti-smuggling law was almost passed by the 14th Congress, while a bill on modernizing customs and tariff laws to align them to global standards only reached first reading.

Also in EDC's suggested reforms is the rationalization of the country's fiscal incentives policy. That policy has been widely criticized in the past for its selective application. In the case of exports, an incentive granting tax breaks for incremental export performance that should have been applied universally under the Export Development Act of 1994 was never implemented, except for one company.

The existing fiscal incentives policy has been described by critics as one that created small islands of privilege in an ocean of sacrifice.

To help enhance the country's competitiveness, the EDC will also advocate for the separation of the regulatory and developmental functions of the Philippine Ports Authority.

A fourth reform the EDC asked is the alignment of the taxation policies of government under the Internal Revenue Code to international standards and policies. The tax system should also be made simpler to encourage new businesses, big, small and micro.

Fifth item in the EDC legislative agenda is the review of monetary and fiscal policies including the controversial policy on the exchange rate as practiced by the present leaders of the Bangko Sentral ng Pilipinas.

EDC is likewise gunning for the enactment of a national competitiveness policy that aims to promote a level playing field for industry stakeholders. -- Abe P. Belena, PHILEXPORT News and Features <--back

3. PHILEXPORT attracts new members wanting to ride on the crest of recovery

The umbrella organization of exporters has seen renewed interest in the exporting business in the first half of this year, as a total of 115 new enterprises are joining it in its mid-year national conference this coming Tuesday, July 13.

More than a hundred new members joining in just six months was a new record for years as the sector got hit by one crisis after another, the latest of which was the global recession, records of its membership department had shown.

This was a development which bolstered the continuing recovery in the over-all performance of Philippine exports. The high double-digit growth in the first four months of the year has been seen to be sustained towards the second half of 2010.

The mid-year nationwide meeting of exporters has adopted the theme: enhancing productivity towards an export-led recovery.

Invited to share new insights on how to sustain the present recovery into sustained growth were Dr. May Gatchalian, governor of ECOP Institute for Productivity and Competitiveness Foundation and Elena A. Cruz, managing director of the Center for Knowledge Management of the Development Academy of the Philippines.

Two PHILEXPORT company-members will give a testimonial each on the said topics. -- Abe P. Belena, PHILEXPORT News and Features <--back

4. Electronics makers to adopt Taiwan's technology model

Electronic manufacturers are keen in adopting a model in strengthening the technological competitiveness of Taiwan, the worlds biggest source of electronics components exports.

Semiconductor and Electronics Industry of the Philippines Inc. (SEIPI) chairman Arthur Young said the Philippines only ranked fifth in the top 10 source countries in 2006, following Taiwan, China, South Korea and Malaysia.

He noted that Taiwan has become number one country in production of integrated circuits, networking products, and computer and peripheral devices.

Young attributed Taiwan's success in transforming its domestic industry into global bedrock for technological innovation under a conducive policy environment, vision and support of its government leaders, and competitive human resources.

He also credited this to its adoption and improvement of foreign technology, the positive effects of its industry clustering program and the support of up-, mid- and downstream industries.

Young said Taiwan's strategy was to support industry and technology development and transform its economy from agricultural to industrial.

"The aim was to foster freer flow of goods, services, human capital, funds and information," he explained.

Young said the Taiwanese government funds were used to support industry development directed through the ministries and various councils to research institutes and industry.

As a result, the Industrial Technology Research Institute (ITRI) was established in 1973, and its task was to lay down the foundation for innovative research in the future of technological industry.

Its technology thrusts include information and communications, electronics and optoelectronics, energy and environment, precision machinery and microelectromechanical systems, biomedical technology; and nanotechnology, materials and chemical.

On the other hand, the national research group's core businesses are venture and incubator, research and development collaboration, technology scouting, recruiting and training, IP deployment, policy execution and networking.

"ITRI successfully transferred semiconductor process technology to Taiwan, laying the foundation for Taiwans semiconductor industry. Today, semiconductor is Taiwan's star industry," Young said. -- Danielle Venz, PHILEXPORT News and Features <--back

5. AANZFTA ensures easier, lower cost of trade transactions

To encourage its greater utilization, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) incorporates a large number of important features, including modernized and flexibly applied rules of origin (ROO), designed to make it easier and less cost to trade in the region.

"The ROO that applies in the AANZFTA were crafted in a way that enhances exportersability to take advantage of opportunities under the FTA," according to an agreement establishing the FTA.

It provides exporters with two alternative approaches for most goods, or for some 83 percent of all tariff sub-headings, for testing whether a good is originating.

These are "co-equal approach" where they will be given the choice of meeting either a regional value content (RVC) rule or the change in tariff classification (CTC) approach.

However, a CTC-only approach will apply for another 10 percent of tariff sub-headings, while an RVC-rule will apply for about one percent of sub-headings, mainly for the automotive sector.

The agreement said waste and scrap products comprising of about 1.4 percent of sub-headings are covered by special rules.

Normal product-specific ROOs are not relevant for the remaining 4.5 percent of tariff sub-headings which will need to be wholly produced or obtained within the AANZFTA region.

And about two-thirds of chemicals sub-headings will be able to make use of a chemical reaction test to show that they are "originating goods" if the goods cannot satisfy the RVC or CTC ROO.

"Flexibility in the application of the AANZFTA ROOs is further enhanced by the fact that AANZFTA ROOs provide for regional cumulation in calculations to determine eligibility for preferential treatment. It is expected to be of considerable value to the manufacturing sector, as it will support greater integration into regional supply chains," it noted.

With this, originating materials or components from any AANZFTA country used in the production of goods in another member country are treated the same way as materials or components from that second country in determining the origin of the final goods.

To facilitate trade, the AANZFTA agreement also ensures predictability, consistency and transparency in the application of customs laws and regulations of the parties; promote efficient, economical administration of customs procedures and the expeditious clearance of goods; and simplify customs procedures.

"Where it is possible and to the extent permitted by the customs law, AANZFTA governmentscustoms procedures will be based on the standard and recommended practices of the WCO (World Customs Organization)," it said.

The review of customs procedures by the customs administration of participating countries with the aim of their simplification is also part of the commitment undertaken in the AANZFTA, it added.

They have also committed to determine the custom value of goods traded pursuant according to the provisions of the WTO Agreement on Customs Valuation.

Moreover, AANZFTA partners will consider using automated systems that support electronic customs transactions in line with the standards and best practices recommended by the WCO as well as their available infrastructure and capabilities.

"All of these actions in the AANZFTA designed to facilitate trade will contribute to a freer, expedited and less costly regime for importing and exporting in the region," it further said. -- Danielle Venz, PHILEXPORT News and Features <--back

6. Environmental friendliness of plastic materials backed

Petrochemicals industry players are advocating the environmental friendliness of plastic materials, contrary to some perceptions.

Mario Sereno, executive director of the Association of Petrochemical Manufacturers of the Philippines, said that environmentalists normally consider plastics as bad.

"But if you look at the scientific facts, in terms of resource allocation, in terms of waste management, in terms of weight which translates to cost, plastic materials are friendlier and effective compared to alternatives which are the traditional ones," he said. "Plastics are really 100 percent recyclable."

Sereno cited a recent German study that concluded that without plastic packaging, the weight of packaging would dramatically increase by whopping 391 percent.

Likewise, energy consumption would rise by 208 percent while the volume of waste would be 258 percent higher, he said.

"The energy consumed in producing packaging materials will be increased by more than double and the volume of waste generated by alternative packaging materials will be almost three times without plastics," he explained.

With this, Sereno pushed for good solid waste management to help promote sustainable development. -- Danielle Venz, PHILEXPORT News and Features <--back