Author Archives: edcinforms

Transport of Potassium Nitrate in solid form authorized by PNP

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The Philippine National Police of Civil Security Group (PNP-CSG) clarified in a memorandum authorizing the transport of Potassium Nitrate (KNO3) in its original solid form. This order will not require potassium nitrate to be diluted in liquid form prior to transport and passing through the PNP checkpoints. Said chemical in liquid or solid form shall be transported without delay provided that the company has complied valid permits (Permit to Unload, Permit to Purchase and Move, and Permit to Transfer) bearing the appropriate information necessary for its movement (i.e.PPME#, license#, company name, date of issuance and validity, specific purpose, quantity of chemical, port of origin, and destination). This mandate was clarified in a memorandum signed by PMGEN Roberto Fajardo (PNP-CSG) dated16 July 2020.

This concern was raised by the Export Development Council (EDC) Executive Member, Mr. Roberto Amores representing agri/food sector during the EDC Executive Committee Meeting via zoom last 30 June 2020.

Certain exporters from the agricultural groups have resorted to using this chemical due to climate change. Potassium Nitrate is being used for agriculture to ascertain the heat content required to induce flowering. Said chemical was flagged down at specific checkpoints due to its high explosive rate, with this risk it has to be diluted in liquid form prior to transporting.

PNP-Firearms and Explosives Office Chief, BGen. Rommil Mitra assured that the content of the aforesaid memorandum specifically authorizing the transport of potassium nitrate in solid form will be coordinated and disseminated accordingly among their personnel on the grounds/checkpoints to enhance trade facilitation without compromising public health and safety. MRJ

DOTr creates an office against unreasonable shipping charges

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The Department of Transportation (DOTr) creates an office against unreasonable charges to be known as the Shippers’ Protection Office (SPO).

Under DOTr Department Order (DO) 2020-008, the established SPO will serve as a body that will protect and assist shippers, both international and domestic, against unreasonable fees and charges imposed by international and domestic shipping lines. This applies to all complaints and issues related to the rates, charges, practices and operations of international and domestic shipping lines in the country.

Moreover, this body will (a) assist the public with matters concerning the operations of, as well as the fees and charges collected by international and domestic shipping lines, and (b) require international and domestic shipping lines to submit comments or position on complaints/issues raised against them, and to appear before the SPO. It will consist of DOTr Maritime, DOTr Legal, Philippine Ports Authority (PPA), Philippine Coastguard (PCG), and Maritime Industry Authority (MARINA).

It is notable that the problem on which agency to regulate the exorbitant rates being imposed by the shipping lines has been long-enduring. This new directive will expectedly contribute to the reduced international and domestic shipping cost that will benefit the importers, exporters, and most especially the consumers. –KJDA 

BOC implements Electronic Tracking device for Containerized Cargo (ETRACC)

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The Bureau of Customs (BOC) implements the Electronic Tracking of Containerized Cargo System (E-TRACC), a  real-time monitoring system of containerized cargoes using GPS-enabled electronic locks (e-lock), provided by Ascent Solutions Philippines, Inc. The said system is designed to ensure the safe transport of containerized cargoes onto its designated destination. For this, importers/exporters are mandated to pay for every container (thru online facilities) P500.00, within 10km. radius from port of discharge and P700.00 if beyond 10km. radius from the port.

BOC assured there will be no delays as they are ready with the manpower to put and remove the sealed e-lock 24/7 without any additional costs to the importers/exporters. Additionally, this new system will reduce the costs of doing business as Underguarding and Overtime for Customs personnel will be eliminated.

The E-TRACC will be rolled-out initially at the Manila International Container Port (MICP), Port of Manila (POM), and Port of Batangas (POB)  by middle of July this year.

BOC is said to coordinate with the agencies that have an overlapping system, i.e., the Philippine Economic Zone Authority’s (PEZA) seal, to formally release a guideline on what the importers/exporters will do and/or use to avoid redundant compliance of regulation/s.

For the guidance of the general public on this new system, The Bureau is requested to post Frequently Asked Questions (FAQs) at their website www.customs.gov.ph and other official social media accounts any time soon.

The implementing rules and regulations (CAO 15-2019), of the Customs Modernization and Tariff Act of 2016 is manifested under the guidelines stipulated under the CMO 04-2020 that implements the E-TRACC System. –MRJ

DOTr issued department order to minimize demurrage charges

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DOTr issued department order to minimize demurrage charges

The Department of Transportation (DOTr) issued Department Order (DO) 2020-009 to minimize demurrage charges.

This DO prescribe a minimum free time period of eight (8) days for cargoes unloaded by international shipping lines in any port throughout the country. This is a development from the five (5) days previously granted by the international shipping lines before charging demurrage.

It was reported that during the unfolding of the COVID19 pandemic in the country, and the start of community quarantine, the surcharges of international shipping lines heightened, and many stakeholders suffered more from the sky-rocketing shipping costs. This directive will then help in reducing the risks of incurring high demurrage charges that are borne by the importers. –KJDA 

EU-REX application extended! Exporters to enjoy  preferential tariffs 

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The Registered Exporters ‘REX’ System application was extended until 31 December 2020. This is intended for registered Filipino exporters to fully avail zero tariffs to over 6,000 categories of goods to the European Union (EU) nations under the EU Generalized System of Preferences plus (EU-GSP+) Program.

The Bureau of Customs (BOC) deferred the 30 June 2020 implementation to 31 December 2020, to give more time for the exporters to submit their EU REX application thru https://customs.ec.europa.eu/rex-pa-ui/#/create-preapplication/. Further guidelines are stipulated under CMO 50-2019.

EU will no longer accept the CO Form A after the aforesaid deadline.

Interested exporters may reach out to either the BOC thru gina.german@customs.gov.ph/ ecd@customs.gov.ph, or the DTI-EMB thru MariaJaenaGoAco@dti.gov.ph –MRJ  

DOF urges trade regulatory government agencies to fully on-board TradeNet System 

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The Department of Finance (DOF), in collaboration with the Department of Information and Communication Technology (DICT), urges all the 76 Trade-Regulatory Government Agencies (TRGAs) to go on-board the TradeNet for a streamlined and electronic system thru the implementation of CMO 15-2019.

The TradeNet allows electronic transmission of the Certificate of Origin (eCO) among ASEAN Member States (AMS) through the system’s connection to the ASEAN Single Window (ASW) that commenced last 30 December 2019.

The DICT owns the source code that makes it more applicable for the Philippines to operate various trade-related applications without the need to pay for a license from a 3rd party. It is also customizable, and the encoded policies can be easily interchanged.

The Philippines has received 37,036 eCOs from other AMS and the BOC has sent 13 eCOs from January 2020 to 20 June 2020 using the TradeNet platform. With more TRGAs onboard the TradeNet, the Philippines can maximize the Free Trade Agreements (FTAs).

The National Single Window Steering Committee is set to convene in July 2020 to create and strategize the onboarding work plan for 2020 to 2022.  –MRJ

DOTr requires domestic shipping lines to provide cargo space allocation for agricultural and food products 

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The Department of Transportation (DOTr), under their DO 2020-007, requires domestic shipping lines to provide cargo space allocation not less than 12% of their vessel’s cargo capacity per voyage for agricultural and food products. This also enjoins all domestic shipping lines to extend a discount of not less than 40% from their published shipping rates for all cargoes on agricultural and food products covered by the DO.

This will prioritize shipment of agricultural and food products to aid in ensuring the “viability of food production and delivery in line with the government’s mandate to provide food security for the people.”

This DO is also pursuant to the Inter-Agency Task Force (IATF) Resolution No. 46, series of 2020. –KJDA

Exporters’ business continuity amid COVID-19 pandemic: Philippine Economic Stimulus Act of 2020 

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The consolidated Philippine Economic Stimulus Act (PESA) House Bill 6815, also known as the Accelerated Recovery and Investments Stimulus for the Economy of the Philippines (ARISE Philippines Act), seeks to ensure business continuity and aid the recovery of critically-impacted businesses brought about by the afflicting impacts of the COVID-19 pandemic.

Surveys conducted on exporters by the DTI-Exporters’ Marketing Bureau and Philippine Exporters’ Confederation Inc. (Philexport) have manifested results that while numerous micro, small, and medium exporters are struggling from monetary losses, respondents also recommend that the Government should provide financial assistance through Stimulus Packages.

PESA Bill interventions allow critically-impacted formal and informal MSME exporters, including start-ups, freelancers, and the self-employed, to incur wage subsidies for two months with labor retention clause, interest free-loans, credit mediation, e-wallets, subsidies for education, grants for technical assistance, and structural reforms for economic resilience.

The P1.3-trillion economic stimulus package was introduced by Hon. Stella Luz A. Quimbo, and co-authored by 256 legislators in the Congress. With the support of the Export Development Council, the Department of Trade and Industry (DTI), and Philexport, the Bill was successfully passed in its final reading at the House of Representatives. –KJCS 

EDC re-grants accreditation of PHILEXPORT as the dominant export organization

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The Export Development Council (EDC) re-grants Philippine Exporters Confederation, Inc.’s (PHILEXPORT) accreditation as the dominant umbrella organization of Philippine exporters during its first ever virtual Joint Council and Executive Committee (EXCOM) Meeting via ZOOM.

It is notable that EDC is mandated by the Export Development Act (EDA) of 1994 to “accredit a single umbrella organization of exporters…to represent the export sector concerns and interests for three (3) years, after which the Council shall undertake a review of the accreditation prior to the granting/re-granting of the said accreditation.”

On Tuesday, 20 May 2020, EDC convened the Joint Council and EXCOM Meeting chaired by Trade Secretary Ramon Lopez.  Aside from the approval of PHILEXPORT’s accreditation for another three (3) years (June 2020 – May 2023), a timely agenda including the Philippine Economic Stimulus Act (PESA) of 2020 presented by Cong. Stella Quimbo, the Board of Investment’s Industry Promotions Strategies and Initiatives presented by Usec. Ceferino Rodolfo, the Exporters’ Survey Results by the Export Marketing Bureau, the New Normal Export Road-map by the PHILEXPORT, and also the Framework for the review of Philippine Export Development Plan (PEDP) 2018-2022 with post pandemic purview were intently tackled.

The meeting was graced by the Council and EXCOM members from both the government and private sectors. All the members from government agencies were represented, namely the Department of Trade and Industry (DTI), National Economic and Development Authority (NEDA), Department of Finance (DOF), Bangko Sentral ng Pilipinas (BSP), Department of Science and Technology (DOST), Department of Agriculture (DA), Department of Foreign Affairs (DFA), and Department of Labor (DOLE). Also, representatives from the Office of the President (OP) were in attendance.

For the private sector members, representatives from Visayas and Mindanao, from agriculture, food, construction, garments and textile sectors, from PHILEXPORT, and from Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) were also present. – KJDA 

FDA implements issuance of e-LTO 

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The Food and Drugs Administration (FDA) implements the issuance of electronic License to Operate (e-LTO) to streamline and improve government services through eServices Portal.

LTO applicants for drugstores, retail outlet for non-prescription drugs (RONPD), drug distributors, and drug traders can now print their License conveniently at their home.

All the other FDA centers, including devices and cosmetics, will also be included on the e-portal.

FDA ensures that e-LTO will be processed in less than the 20 working days following the Anti-Red Tape Authority’s (ARTA) guidelines.

FDA Advisory No. 2020-781 was launched last 07 May 2020 and can be accessed thru the e-services portal (http://eservices.fda.gov.ph/). –MRJ