Author Archives: edcinforms

PRRD Signed Instrument of Accession (ATA Carnet) to boost Export Promotions 

President Rodrigo Roa Duterte (PRRD) signed the “Instrument of Accession” for the Convention of Temporary Admission of Goods (ATA Carnet), also called the Istanbul Convention last 23 June 2020. The Department of Foreign Affairs (DFA) already transmitted the signed Instrument to the House of Senate for concurrence by two-thirds (2/3) votes of its members.

This will boost export promotions by allowing more exporters to send commercial samples, professional equipment and articles to their foreign buyers; and participate in trade fairs, shows, and exhibits without Customs formalities hence reducing cost and time spent in complying with the procedures.

“The system will facilitate Customs controls, therefore reducing the time spent for crossing borders of the goods within over 80 ATA Carnet member countries and territories which is a common practice in the supply chain.  This will also contribute to the promotion of trade and open up new and bigger market opportunities overseas once we are ready to host and attend trade fairs again,” EDC Chairman, DTI Secretary Ramon Lopez said in a statement.

Being part of the Carnet System is a great opportunity for the country’s economy (i.e. M.I.C.E. Tourism) to restore and flourish international film making, exhibits, and conventions after this COVID-19 pandemic. DTI said that it will assist Filipino exporters “to access key target markets such as China, USA, EU, Japan, and UAE – all of which are signatories to the ATA Carnet.”

“We are thankful that finally, the Instrument of Accession has been signed, giving a positive signal to the world that we are serious in expanding our trade, particularly our exports.” PHILEXPORT President and EDC Vice Chairman Sergio Ortiz-Luis, Jr. said.

Also, the EDC endorses the Philippine Chamber of Commerce and Industry (PCCI) as accredited by the International Chamber of Commerce (ICC) to be the National Issuing and Guaranteeing Association (NIGA) for the ATA Carnet and further requested the Bureau of Customs (BOC) to be ready for the Issuance of the CMO in time the Senate has concurred the Instrument of Accession (ATA Carnet). MRJ

Online release of Travel Tax Exemption Certificate implemented by TIEZA

Tourism Infrastructure and Enterprise Zone Authority (TIEZA) implements the online release of the Travel Tax Exemption Certificate (TEC) in response to the new normal brought by the pandemic.  Exporters are encouraged to apply online to access the online release of TEC for their future international activities.  TIEZA assures 3 days maximum turn around time of their intranet system to process the release of TEC.  With this development, exporters can now print their TEC at the safety of their home instead of going to the TIEZA office to claim the said certificate.

But prior to the online application for the TEC release, TTE endorsement (Signed TTE application form) from the Export Development Council (EDC) is required for validation and verification purposes of TIEZA.  Exporters will undergo the usual process except for the submission of TTE application form that can now be submitted thru email along with the requirements (copy of the passport and proof or confirmation of participation to an international event) to any of the recommending agencies (CITEM/ DTI-EMB/ BITR/ PHILEXPORT) authorized under EO 589 for endorsement to EDC.

This was announced by Mr. Cristeto Ocampo, Officer-in-Charge for Travel Tax Department of TIEZA, during the Technical Working Group on Travel Tax Exemption virtual meeting held last 28 July 2020.

For further inquiries on the online issuance of the TTE certificate,  exporters may call TIEZA at 02 249-5900 to 79 Local 641, 643, 646  or email at traveltax@tieza.gov.ph. Exporters may also click on this link for the online application of said certificate. MGL

SCMAP advocates to abort NORTHPORT’s New Berthing Procedure due to doubling costs

The Supply Chain Management Association of the Philippines (SCMAP) advocates to abort NORTHPORT’s new berthing procedure as it doubles the costs of doing business making the prices of goods more expensive for the consumers.

Accordingly, this new berthing procedure compels all container vessels to berth at the Terminal 1 of the NORTHPORT, and imposes the use of their quay cranes regardless if the ship has its own crane. The cranage fee summates up to Php 1,587 (VAT inclusive) for 10 and 20 footer containers, hence adding 88% more to the current cargo handling rate of Php 1,800. This added cost and procedure is contrary to the ease of doing business.

The group appealed that the fees imposed must be justified for the modernization effort. However, the cost must be affordable and should not result in the added process and cost. SCMAP Executive Director Ms. Corazon Curay revealed the group’s sentiment on this advocacy during the EDC Networking Committee on Transport and Logistics meeting last 28 July 2020. KJDA

Transport of Potassium Nitrate in solid form authorized by PNP

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

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)

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

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 

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.phecd@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 

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 

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