Category: Other Export News

The Department of Trade and Industry (DTI) through the (Micro, Small and Medium Enterprise Development (MSMED) Council  implements the 7Ms- Mindset Change, Mastery, Mentoring, Money, Machine, Market Access, and Models of Business, a framework which were introduced and supported during the ASEAN Economic Community (AEC) meeting last year. MSMEs shall be assisted to develop a positive Mindset, to gain Mastery of their business, to provide quality business Mentorship, to facilitate access to Money, to improve access to domestic and international Markets, to provide quality Machines, and to be exposed to innovative Models of business.

To achieve the strategic goals specified in the MSME Development Plan 2017-2022, the MSMED Council has laid anchor programs to be implemented. These programs and other initiatives were presented during the National MSME Summit held last 10 July 2018 in Clark Pampanga. The summit was attended by entrepreneurs, industry leaders, enablers and other stakeholders nationwide. President Rodgrigo Duterte also graced the event to show his administration’s continuing support to MSMEs.

The PHILEXPORT-Cebu Chapter can now endorse applications of its members for travel tax exemption.   The Technical Working Group on EO 589 Exempting Exporters for Travel Tax Exemption (TTE) recently approved the request of PHILEXPORT-National for the additional signatories from PHILEXPORT- Cebu. This is to facilitate the release of TTE certificate by the Tourism Infrastructure and Enterprise Zone Authority (TIEZA). PHILEXPORT-Cebu may now endorse TTE applications directly to the Export Development Council which monitors and oversees the implementation of the Executive Order.

Under EO 589, exporters who will travel abroad to participate in international trade fairs  and exhibitions are entitled to TTE.

Exporters in Cebu may contact PHILEXPORT-Cebu at telephone numbers (032)254.4333/ 254.9266/254.433 or email at info@philexportcebu.org

It is therefore necessary for regulatory agencies to undertake the RIA process which involves problem definition, setting the objectives, identifying options (from doing nothing or status quo to other options), impact analysis (cost-benefit analysis), comparing options, and implementation and monitoring.

World Bank strongly suggests that regulatory agencies must subject any proposed regulation to the regulatory impact assessment (RIA), a tool that ensures the quality of regulations through a rigorous, well-defined and evidence-based analysis.

RIA is a process and a document to “clean” the rules particularly those involving high regulatory risks that reduce investment and competition; high transaction costs due to a complex, multi-layered, often arbitrary rules that are vulnerable to corruption; too little market regulation, poor enforcement, and under-institutionalization in policy areas as consumer and environmental protection; and checks and balances, such as  an effective judiciary which are weak, harming new entrants.

In a recent training on RIA, World Bank emphasizes that a good regulation should be  focused on policy problem,  introduced when necessary and proportionate to the risk posed by the policy problem, accountable  to those affected by  the regulation and those who confer regulatory authority, transparent  or consultation based, and consistent,  taking into account existing rules and regulations.

Corollary to this, the Office of the President issued Memorandum No. 27, series of 2017 which, directs among others, the NEDA to promote among regulatory agencies the use of RIA and other related tools.  In Turn, NEDA now implements the Program on Modernizing Government Regulations (MGR) in cooperation with the Development Academy of the Philippines.

Government efforts for the development and promotion of Philippine Halal Industry are underway to tap the rising demand on Halal products and services. The halal food industry is estimated to reach 3 trillion in 2021 that can be tapped by the Philippines.

This trend provides strong but challenging opportunities for the Philippines. In 2017, the Philippines only captured P5.52 billion on revenues from halal products or 8.73% of the country’s total exports valued at P63.23 billion.

To seize the opportunities on halal markets, the Philippine Halal Export Development and Promotion Board is working vigorously on the development of Philippine Halal industry.

The Halal Board, composed of several government agencies such as the Departments of Trade, Agriculture, Foreign Affairs, Tourism, Health, Science and Technology, is tasked by Republic Act 10817 or the Philippine Halal Export Development and Promotion Act of 2016, to “formulate, advocate, coordinate, oversee and assess the implementation of the Philippine Halal Export Development and Promotion Program”.

Recently, the Halal Board launched the Philippine National Halal Certification Scheme and the Accreditation Guidelines at the 1^st Philippine National Halal Conference in Davao City. The National Halal Certification scheme will serve as guiding principles in accrediting halal certifiers and enable Philippine products to be accepted as halal players in global halal ecosystem.

For its part, the Department of Agriculture formulated standards for slaughtering that must be followed by halal producers. These are standards for Feeds, Agriculture and Fishery Products, Slaughtering Practice for Ruminants and Slaughtering Practice for Poultry. An accepted standard across the whole halal value chain must be in place to meet the requirements of halal markets.

“Awareness campaign is also being done to encourage exporters to improve their products to be competitive and penetrate the global Halal market”, Halal Board Chair and Trade Secretary Ramon Lopez said during the Halal Conference. He also enjoined the academe to include halal in its curriculum and promote research and development on halal to comply with international requirements.

Halal industry can be developed beyond food particularly in tourism, pharmaceutical, travel, modest fashion and cosmetics.

Exporters are advised to claim their travel tax exemption certificates from the new office address of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) at the 6th floor, Tower 1 Double Dragon, Meridian Tower Diosdado Macapagal Avenue cor. EDSA Extension, Pasay City.

For more inquiries and concerns please email traveltax@tieza.gov.ph or call telephone numbers 257-8136/ 463-9857/ 551-3945.

“Know your customers better to deliver value-added export products. People today are looking for outcomes and experiences much more than products and services”. This is the main statement of Professor Paris de l’Etraz, Chairman of Applied Innovation Institute during his speech in the recent National Export Congress 2017.

He further said that “Innovative compa-nies are not dealing with products. Most of them are dealing with creating relation-ships, engaging and delivering experien-ces to their custom-ers”,

Professor de l’Etraz emphasized that 90% of all successful ideas today are improvements of something that already exists. He added that decision making needs to move from gut feel and instinct to data-driven decisions.

The speaker included the following advice on exports:

1. Move from commodities to “value-added” products, the companies that are exporting the most have done this well.

2. Customers today are moving from buying products to buying experiences and outcomes

3. Think globally as a “Firm” and as a “Country”, and take your story abroad.

4. Train your people to deliver value-added work.

5. Collaborate with your peers to make “Grown in the Philippines” or “Made in the The Philippines” a value-added reference.  –Piercy Kieth Cezar

Companies in the country are battling it out in the innovation business. This was confirmed during the recently concluded National Export Congress 2017. The event reaffirms what other countries say that the Philippines can become the Innovation Hub in the Asian Region.

Research and Development (R&D) by companies focused on products, human resource and digital marketing were featured in the annual event. An example of this product innovation, Chemrez Technologies, Inc. developed its virgin coconut oil that stays in its liquid form even when the temperature goes down to 5 degrees celcius. The company was also able to remove the taste and smell of the coconut from their products. By employing extensive R&D to their coconut oil, they were able to create a new category for their product that was of higher value. By introducing innovation in their coconut oil, they have created new markets and new consumers for products that would otherwise be limited by its physical form. As an innovative company, Chemrez has to keep on developing new products that are not only ahead of competition but products that will pioneer the markets. –Grace T. Mirasol

Managing Director, Dean A. Lao Jr. of Chemrez Technologies, Inc. (left) and Chief Technology Innovation Officer, Delfin Jay M. Sabido IX (right) of Stratpoint Technologies Inc. share their innovations during the National Export Congress 2017 Panel Discussion. 

Senator Sherwin “Win” Gatchalian, who chairs the Senate Committee on Energy, is pushing to postpone raising taxes on coal until a policy allowing consumers to choose their energy source has been adopted. The proposed coal tax is included in the pending tax reform bill or Senate Bill 1592 which is up for discussion at the Congress bicameral conference committee.

SB 1592 proposes raising coal excise tax from the current ₱10 per metric ton to ₱100 in 2018, ₱200 in 2019, and ₱300 in 2020. If the excise tax is approved, an average consumer using 200kwh/month will have to pay an extra ₱4.78 per month in the first year. This will increase to ₱14.35 per month in the second and ₱28.70 per month in the third year. He added that compared to other tax hikes in the TRAIN bill, consumers do not have a choice when it comes to using electricity.

Senator Gatchalian noted that the government can implement the Senate’s proposed coal tax increase once the retail competition and open access (RCOA) system is in place. RCOA is the retail competition open access in which when the consumer will be given the power to choose, to buy wherever he wants. The RCOA is one of the provisions under the Electric Power Industry Reform Act of 2001 (EPIRA).

Senator Gatchalian cited the proposal as an unfair imposition since there will be a slowdown in the growth of manufacturing sector with its dependency on electricity.  – Ma. Divine Grace T. Derez