Wednesday, March 16, 2016

NEWS re PH among least affected on global exports decline

DTI Central Visayas Office
Release Date: March 17, 2016
Reference:  DTI-Region 7
            dti_7@yahoo.com  dticentralvisayas@gmail.com
            http://kalampusan.weebly.com/



PH among least affected on global exports decline 


Latest preliminary statistics from the Philippine Statistics Authority (PSA) showed that Philippine merchandise exports reached $4.19 billion in January 2016, representing a decrease of 3.9 percent from the $4.36 billion posted in January 2015.

While the figure is still a decline, it represents a slight improvement from the 5.8-percent decrease in export sales posted for the whole of 2015, raising hopes that it may signal the beginning of a recovery in merchandise exports. 

The PSA also said the electronics sector remained a bright spot as exports from this sector in January registered $2.14 billion, a 5-percent increase over the January 2015 figure of $2.04 billion and a 51.07-percent share of overall exports for the month.  The January 2015 share of electronics in total exports represented 46.79 percent of total exports.

"The continued post moderate growth of the electronics sector is a good sign considering that it still makes up more than half of PH exports," said Export Marketing Bureau (EMB) Director Senen M. Perlada.

He added that the global situation of exports appears dire as the export figures of many countries declined by double digits in January 2016.      

"Compared with the double-digit losses registered by other selected export-oriented economies in Asia and elsewhere, the decline of Philippine exports in January 2016 is a mere 3.9 percent, lower only to Vietnam's 1-percent decline and Malaysia's 2.8-percent decrease," he said.

Perlada said in Asia, Thailand's exports went down by 8.9 percent, Singapore by 9.9 percent, China by 11.2 percent, South Korea by 12.2 percent, Japan by 12.9 percent, Taiwan by 13 percent, Indonesia by 16.7 percent, and Hong Kong SAR by 23.4 percent.

He added that while it is only the first month of the year, "the Department of Trade and Industry [DTI] takes a longer-term perspective and will leverage on the recently approved Philippine Export Development Plan [PEDP] to implement our strategies full speed ahead because the plan already factored in what was observed as a precarious global economic situation."

"In the face of weak global demand, the DTI will work with the private sector in pursuing and even intensifying promotions programs, policy-reforms advocacy, and capacity-building programs to prepare our exporters for intensified competition. In a period of shrinking market demand, pursuing markets and continued presence through promotions programs are imperative. The DTI will continue to prepare exporters for the time when markets shall have recovered to enable them to pursue more opportunities," he said.

"The effects to our exports by sluggish global economies are challenges that we must face so that we have to work harder and strengthen the partnership between the government and the export sector," he added.

The United States, Japan, and China – among the world's strongest economies - posted bigger losses in January 2016 than the Philippines, he pointed out.

The Export Marketing Bureau (EMB) is the export trade promotion agency of the DTI Trade and Investment Promotions Group (DTI-TIPG).  The agency provides frontline assistance, information, specialized consultancy services, business matching and other export development and promotion services to all exporters -both potential and established - and the general public. As the lead agency tasked to develop, promote, and expand export trade, the EMB seeks to enable Philippine exporters to compete with world-class products and services.

For more information on the services of the DTI, log-on to http://www.dti.gov.ph

 

 

 


Wednesday, March 02, 2016

NEWS re DTI says Trade-Facilitating Laws to benefit PH exporters

DTI Central Visayas Office
Release Date: March 3, 2016
Reference:  DTI-Region 7
           
dti_7@yahoo.com  dticentralvisayas@gmail.com
            http://kalampusan.weebly.com/


DTI says Trade-Facilitating Laws to benefit PH exporters

 

Reforms and amendments on existing regulatory laws that facilitate the free flow of traded goods will benefit PH exporters.

 

"High transaction cost of moving trade goods remains to be a major drag factor in the competitiveness of PH exports," said Department of Trade and Industry Export Marketing Bureau (DTI-EMB) Director Senen M. Perlada.

 

With the recent adoption of RA 10668 known as the Foreign Co-Loading Law and the Customs Modernization and Tariff Act (CMTA), DTI-EMB expects that reduction of obstacles to free movement of goods and services is expected to greatly contribute to the 9% growth of exports in 2016.

 

"Many of these factors are related to moving and clearing of cargoes at the ports; and cumbersome and costly requirements of regulatory agencies on traded goods.  It is thus necessary to remove or at least reduce unnecessary regulatory obstacles to the movement of goods and delivery of services", added Director Perlada. 

 

The RA 10668 otherwise known as the Foreign Co-Loading Law amended last July 2015 practically adopts the Cabotage rule which allows foreign vessels to dock at any Philippine port for loading and unloading of foreign cargoes. Foreign cargo refers to import and export cargo carried by a foreign vessel.  The law will pave way to the reduction of costs for logistics and will provide transshipment services needed by exporters and importers.

 

The amended Cabotage Law is also expected to increase port revenues and provide price-competitive shipping service that will help exporters to compete effectively in the international market. It will further help decongest Manila ports as most shipments normally have to unload first in Manila before shipping directly to other domestic ports around the country.

 

On the other hand, the Customs Modernization and Tariff Act (CMTA) has been approved in the Bicameral Conference after both Houses have reconciled the Senate and House Bills of the CMTA. The bill now awaits the signature of President Benigno S. Aquino III.

 

The bill (S.B. No. 2986), sponsored by Senator Juan Edgardo Angara, amends the Tariff and Customs Code of the Philippines (TCCP) in compliance with the Revised Kyoto Convention which is a blueprint for "modern and efficient customs procedures" of the World Customs Organization.  The bill aims to significantly reduce human intervention in Bureau of Custom's (BOC) process and promotes transparency and accountability of the BOC.

 

Aside from the CMTA, The BOC has also implemented other measures that will benefit exporters and importers. Both exporters and importers favored the move of the Bureau of Customs (BOC) under Customs Memorandum Order (CMO) 29-2015 last September to discard two (2) import forms such as the Import Entry and Internal Revenue Declaration (IEIRD) and the Supplemental Declaration on Valuation (SDV). This will reduce their transaction costs with the BOC in the release of their imported items.

 

Under CMO 29-2015, the use of IEIRD or BOC Form 236 will be discontinued in favor of the Single Administrative Document (SAD) which will now serve as the entry declaration. The SAD is secured through the E2M Customs system and printed in two (2) copies.

 

The information in the SDV will be indicated in Box 39 of the SAD which is considered a mandatory field in the entry declaration.

 

The CMO implements the Memorandum of Agreement (MOA) entered into by the Bureau of Internal Revenue (BIR), Philippine Statistics Authority (PSA), Tariff Commission and other government agencies on the electronic information interchange between the BOC and other agencies.

 

Another BOC policy that would be beneficial to exporters is the non-requirement of Certificate of Exemption for importation of lithium Ion batteries provided that these are imported as finished product.  This was reiterated in Customs Memorandum Circular No. 96 -2015 pursuant to Dangerous Drugs Board Regulation 1-2014.

 

Reforms on the policies being implemented are results of consultations among Export Development Council, Dangerous Drugs Board, other government agencies and affected industries to avoid delay in the release of imported lithium ion batteries utilized by the electronics sector.

 

The BOC also revised its port operation manual, thereby abolishing the requirements of Notice of Stuffing and the presence of Stuffing Inspector during the stuffing/loading of export cargo container (CMO 4- 2015).

 

Removing domestic regulations and other unnecessary costs of production and market delivery enhances the capacity of our local producers to focus on the improvement of their product and participate and explore opportunities given to them by the government. Through these efforts, the export sector is expecting greater participation from the local sector and a positive return in achieving the country's stretch target growth of 8-9% for exports this year. 

 

For more information on the services of the DTI, log-on to http://www.dti.gov.ph