The export industry remains resilient and optimistic to face the global health and economic crisis brought by the covid19 pandemic.
They are now producing in-demand products such as face masks, personal protective equipment (PPE), face shields, and other relevant medical supply needed in this time of pandemic. They have also opened the window to market their products through online platforms. Indeed, these products are potential to the export sector – to cater the world demand in the global market.
On the other hand, the government takes into account the challenges faced by the businesses; initiating programs to help address such concerns. Issues and concerns of exporters nationwide as well as updates on the regional Programs, Actions Plans and Policies (PAPs) are gathered from the recently concluded PEDP 2018-2022 Virtual Regional Consultations held this August 12, 19 and 26, 2020 for Luzon, Visayas, and Mindanao. The topmost concern raised is financial assistance specifically for medium-sized enterprises, with the approval of Bayanihan Act, the government thru the Department of Trade and Industry’s non-bank, lending arm – the Small Business Corporation (SB Corp) contributed to ease out the burden of these companies in need. They rolled out the SBCares program to help those micro and small business enterprises that have closed their businesses during the pandemic.
Now upon the approval of Bayanihan Act 2, SB Corp. assured support to Medium Enterprises, using their own corporate funds. SB Cares2 is now ready to roll out this program after the issuance of the implementing guidelines regarding requirements, terms and conditions for borrowers. Medium Enterprises upon compliance of requirements can borrow from Php500,000 to Php5 Million with zero interest.
On the logistics and supply chain unceasing issues, the Export Development Council (EDC) through its Networking Committee on Transport and Logistics (NCTL) successfully advocated for the online processing and payment of port charges, etc. through the issuance of BOC-DTI-PPA-ARTA Joint Memorandum Circular (JMC) no. 01 s. 2020. The JMC makes online filing, processing and payment of port charges, cargo handling charges, other cargo handling related charges, permits, and ancillary fees, and customs taxes and duties mandatory.
To help sustain the economy through supply chains, the Inter-Agency Task Force (IATF) created the Technical Working Group for Anticipatory and Forward Planning (TWG-AFP) chaired by the National Economic And Development Authority (NEDA) to develop detailed recommendations in the rebuilding of consumer and business confidence, the resumption of economic activities under the new normal, including strategic stockpiling. It is a joint initiative of various government agencies and private stakeholders.
Recently, the EDC approved two (2) project proposals worth Php3 Million of the Department of Trade and Industry (DTI) – Center for International Trade Expositions And Missions (CITEM) in lieu of the annual physical event as that of MANILA FAME Show; these are the (1) China International Import Expo (CIIE) 05 to 10 November 2020 and (2) China- Asean Expo (CAEXPO) which will be held on 27 to 30 November 2020. The said projects will benefit some 20 Philippine exhibitors in terms of subsidy for their participation fee and freight cost.
For further details of the above-mentioned project, you may visit the CITEM website at www.citem.gov.ph. – PKC
The online filing, processing, and payment of port charges and other related fees is now made mandatory through a Joint Memorandum Circular (JMC). With the JMC, it is now mandatory for all port users to file their applications online for permits and clearances for the release of cargoes from PPA, BOC, and other port operators including International Container Terminals Services, Inc. (ICTSI), Asian Terminals, Inc. (ATI), and Harbour Centre Port Terminal, Inc. (HCPTI); and payment of corresponding fees shall be done through the accredited banks and payment channels.
The EDC Networking Committee on Financing came up with a Financing Directory aimed to assist the micro, small and medium enterprises (MSMEs) have the option to choose the right financing program suited for their needs. The said directory is a compilation of different loan programs describing their eligibility criteria, requirements and other loan mechanics and processes from commercial banks, government financing institutions, other financing alternatives, venture capital (for start-up businesses), etc. Please note that the directory is based on currently available information and maybe subject to change by the concerned financing institutions/entities.
Access to finance has been a perennial problem of the country’s MSMEs. Many financing programs were developed by government financing institutions to assist them in growing their businesses, ship their products, develop new products, attend trade shows, etc. The latest of these many programs is SB Corporations’ (SBCorp) COVID-19 Assistance to Restart Enterprises (CAREs) program to micro and small enterprises for them to recover from losses that their businesses incurred during the pandemic. All loans from the CAREs program are interest-free and payment starts after six (6) months upon release of the loan and is payable within 18 to 30 months.
The Corona Virus pandemic never ceases to amaze us- aside from disrupting the economies of the world and changing people’s lives forever, it also made significant positive impact to some aspects of society including the skills we need, how businesses operate as well as the future of work.