Government lending arm to set aside P1.5 billion fund for MSMEs affected by COVID- 19 

Financing No Comments

Due to the continuing rise of confirmed COVID-19 cases and the scarcity of medical devices and Personal Protective Equipment (PPEs) the Department of Trade and Industry (DTI) through its lending arm- the Small Business Corporation (SBCorp) felt the need to augment the critical supply gap and significantly reduce the risks and serious threat posed by COVID-19 to the health and safety of the Filipino people, particularly the medical frontliners. With these in mind, DTI and SBCorp recognized the importance of providing immediate funding assistance to small and medium enterprises (SMEs) who are manufacturing COVID-19 specific medical devices and personal protective equipment (PPEs).

As such, in order to provide the much needed funding assistance, the DTI and SBCorp requested the Office of the President in line with the special power granted to it under RA No.11469 the “Bayanihan to Heal As One Act” to:
1.) Reallocate P500 Million from the P1.5 Billion P3 fund under the FY2020 General Appropriations Act (GAA) to provide funding assistance to SMEs manufacturing COVID-19 specific medical devices and ppes; and
2.) Provide for a maximum loan size of P30 Million to the said SMEs on the condition that loans exceeding P5 Million will require third party evaluation from a government financial institution such as the Development Bank of the Philippines (DBP) or the Land Bank of the Philippines (LBP).

Meanwhile, SBCorp will continue with its Pondo sa Pagbabago at Pag-asenso (P3) Program, the country’s flagship program for providing economic and employment opportunities to micro  enterprises through the encouragement of entrepreneurship. DTI through SBCorp has been implementing the P3 program since 2017 through a fund downloaded by the National government to SBCorp via the GAA. The P3 program provides micro enterprises that do not have the access to formal credit and with asset size not exceeding Php 3 Million. The program can be easily accessed by micro enterprises at reasonable cost (0.5% interest) with a grace period of 6-months (and can be extended) and minimal requirements- Barangay Certificate and Barangay Clearance. In addition, the program is expected to lure micro enterprises away from usurious loans provided by loan sharks and other informal money lenders.

Another P500 Million was set aside as Enterprise Rehabilitation Fund (ERF) for micro entrepreneurs once the ECQ is lifted with loans up to P200,000. A month-long pilot run in May will be done in Luzon with a nation-wide roll-out aimed by June. In summary, a total of P1.5 Billion for MSMEs were set aside by the DTI. These were all discussed in detail by Ms. Luna Cacanando, SBCorp President, during the second eForum series on #ResilienceAndRecoveryPH conducted via zoom on Wednesdays, 3:00 pm to 5:00 pm by the Philippine Exporters Confederation, Inc (PHILEXPORT) in collaboration with the Philippine Chamber of Commerce and Industry (PCCI), Employers Confederation of the Philippines e(ECOP) and the Philippine Disaster Relief Foundation (PDRF).
For more details on the DTI-SBCorp funding programs, you may call their hotline at 1-800-10-651- 3333 (8am-5pm) or visit Sbcorp Dti facebook page.- GTM

Customs implements globally accredited ‘AEO Program’ thru CMO 9-2020

Trade Policy & Procedures Simplification No Comments

In response for the country’s commitment to the World Customs Organization SAFE framework, the Bureau of Customs (BOC) issued CMO 9-2020 “Implementing the Authorized Economic Operator (AEO) Program Established Under CAO 5-2017 for Importers and Exporters” last 16 March 2020. Said memorandum revokes, amends, or modifies CMO 11-2012 and CMO 14-2013 to further beef up the AEO program.

Approval of the stakeholders’ application is based upon obtaining the criteria, followed by the submission of necessary documents in the AEO portal which will soon be accessible at the BOC website.

Moreover, an AEO office is to be established to fully implement and monitor the components of its mandate: Cargo Security System, Trade Clearance Facility, and Mutual Recognition Arrangement.

An AEO member, can be accredited into three (3) levels, to be entitled of privileges, benefits, and exemptions depending on the level applied for.

Implementation of this internationally recognized accreditation, the AEO program, heightened the importers/exporters standards in the global market. -MRJ 

EU as a Post-COVID Market: REX Registration on Due 

Trade Policy & Procedures Simplification No Comments

Exporters are enjoined to register in the Registered Exporters ‘REX’ system to enjoy preferential tariffs from the European Union. Acceptance of application to REX was extended only until 30 June 2020.

The EU REX is a self-certification of origin system that replaces the Certificate of Origin (CO) Form A. The said form will no longer be accepted under the EU Generalized System of Preferences (EU-GSP) as a basis for country of origin.

Accordingly, exporters may proceed their application by filling out electronically thru  https://customs.ec.europa.eu/rex-pa-ui/#/create-preapplication/. Further guidelines for registering are stated under the CMO 50-2019.  Accomplished applications duly recognized by the competent authorities (Export Division/Unit) shall be assigned with a REX number within seven (7) working days.

Compliance with the REX system will avail the benefits under the EU GSP program, for which the Philippines was granted under EU GSP+, that allows exporting over 6,000 categories of goods duty-free to the EU nations.

Hence, this opportunity will help the exporters’ market capability to grow and robust their trade relation towards the EU market, a potential avenue to increase export revenue and diversify export goods, that would assist in mitigating trade losses due to the COVID-19 crisis. –MRJ

Transport & Logistics Stakeholders air recommendations to facilitate flows of goods amidst COVID-19

Transport and Logistics No Comments

The issues and challenges faced by the transport and logistics sector were discussed last 15 April 2020, during the 3rd eForum of #ResilenceAndRecoveryPH with the topic “Local and Global Supply Chains: Quick Assessment and Ways Forward”.

During the forum, the transport and logistics sector with importers, supply chain associations, port users and exporters, have expressed their disdain over the increasing shipping cost including demurrage fees –locally and globally. The burden of paying higher fees and demurrage was passed on to their shoulders at the most inconvenient of times when there are airfreight cancellations, more return shipments, port congestion/container build-up at ports, blank sailings at short notice, and so on- all without their fault, but as an impact of the dreaded COVID-19 disease.

The group sought the help of government and private sectors for solutions to address and ease their current burden. They urged government, the Philippine Ports Authority (PPA) in particular, to refrain from passing the burden of paying higher fees and charges to port users. More importantly, they asked government to consider long-term and short-term solutions in order to improve the flow of goods in the country and make the cost of transport and logistics more competitive, domestically and globally. Following are the recommendations:

Short-term solutions:
1. Implement the Super Green Lane (SGL) for PEZA shipments and transactions;
2. Suspend demurrage charges for shipments stuck at the port and apply this retroactively to all shipments affected;
3. Extend the free storage period from 5 days to 10 days;
4. Lift the truck ban/ number coding;
5. Promulgate guidelines and ensure that all shipping lines have sufficient Container Yard (CY) space for empty containers as well as expedite the accreditation and activation of Inland Container Depots (ICDs) as needed.

Long-term solutions:
1. Creation of a single Customs Revenue District for ports serving the Greater Manila Area or mandate a single port of discharge to vessels
2. improve online processing of permits/customs clearance/payments
3. Full implementation of the National Single Window;
4. Improve internet speed and connectivity
5.Establishment of a Supply Chain and Logistics Council composed of public and private sector.

In response to the groups plea for help, a statement urging the Inter-Agency Task Force (IATF) to address Ports Issues under COVID-19 and Endorsing the Joint Administrative Order (JAO) on  establishing guidelines in the application of local charges imposed by international shipping lines, freight forwarders or logistics companies, customs brokers, cargo truck operators, terminal operators and container yard operators to comply with existing laws and instructing the Bureau of Customs (BOC) and Philippine Ports Authority (PPA) to improve productivity in the handling of cargoes, was issued.-GTM

NEDA’s Supply Chain Plan Gets a GO from IATF

Transport and Logistics No Comments

The National Economic and Development Authority’s (NEDA) plan gets a GO, pursuant to the Inter-Agency Task Force (IATF) Resolution No. 24 dated 15 April 2020 – acquiring the approval to develop a Supply Chain Analytics (SCAn) dashboard, and to conduct a Regulatory Impact Assessment (RIA).

The main objective of the SCAn dashboard is to provide up-to-date, real-time information to the IATF on existing supply chain and logistics issues, and potential solutions to aid them in making relevant and timely actions and decisions. Information in the SCAn dashboard will be generated from different subnational stakeholders through a Networks Hub.

The Networks Hub is consisted of, but not limited to Philippine Chamber of Commerce and Industry (PCCI), Supply Chain Management Association of the Philippines (SCMAP), Philippine Exporters Confederation Inc. (PHILEXPORT), and Export Development Council’s Networking Committee on Transport and logistics (EDC-NCTL), including other government/regulatory agencies such as the Department of Trade and Industry (DTI), Department of Agriculture (DA), and Anti-Red Tape Authority (ARTA).

The RIA on the other hand, will be implemented alongside with ARTA. They will tackle COVID 19 related issuances that have implications to the flow of supply chain to ensure those that can be a burden or threat to the efficient flow of goods will be taken out.

In light of the COVID 19 pandemic that our country is facing, it is crucial to ensure the unhampered, unimpeded flow of goods to secure our supply chain, and to keep the economy going. This collaborative undertaking will be beneficial to preserving the unimpaired flow of goods, and up to the largest extent, mitigate the challenges brought by the COVID 19 to the supply chain.

This initiative is made possible in partnership with the University of the Philippines Public Administration Research and Extension Services Foundation Inc. – Regulatory Support Program for National Development (UPPAF-RESPOND), under the headship of Dr. Enrico Basilio, RESPOND Chief of Party, and EDC-NCTL Chair. – KJDA