Author Archives: edcinforms

SB Corp INKS MOA for exporters relief fund under CAREs program

Financing Latest News No Comments

The Small Business Corporation’s (SBCorp) CAREs (COVID-19 Assistance to Restart Enterprises) Program is part of the government’s economic relief program for micro and small enterprises affected by the COVID-19 pandemic.  Ms. Luna Cacanando, SB Corp President and Chief Executive Officer informed that the Department of Trade and Industry (DTI) has allocated P1.5 Billion loan program to help cushion the economic impact to businesses brought about by the pandemic. This was proclaimed during a zoom meeting last 28 May 2020, organized by the Philippine Exporters Confederation, Inc. (PHILEXPORT) to help the agency in the dissemination of information for the said program.

Under this loan program, existing micro and small enterprises (MSEs) can tap the assistance to restart their businesses after they have been affected by the lockdown measures undertaken by the government to contain the spread of the Corona virus.

Micro enterprises with asset size not exceeding PHP3 million can borrow between Php10,000 up to Php200,000. Small enterprises with assets not exceeding PHP15 million can borrow up to Php500,000.  Moreover, the loan is interest free or zero-interest for 30 months but SBCorp. will charge 6% as service fee.  In addition, SBCorp. will also give six-month grace period to micro and small businesses hence, loan payment commences on the 7th month.  However, if by then business is yet to recover, the exporters request for possibly longer grace period of at least 12 months before it start their loan payment.

In order to help facilitate the roll out of the CAREs loan program, SBCorp partnered with PHILEXPORT and allocated P300 Million as loan fund relief for the latter’s members. The two are set to sign the Memorandum of Understanding for the partnership and guidelines in the coming days.

Under this partnership, PHILEXPORT is to endorse the list of member/exporters qualified to apply for a loan and SBCorp is only to collect 6% deducted upon the loan release. The 6% consists of a 5% service fee for processing the loan and the 1% to be given back as admin fee to the chapter or association that facilitated the approved loan application.

Finally, it was also informed that Congress is set to finish the Philippine Economic Stimulus Act (PESA) bill where a Php100Billion was allocated to also provide zero-interest. –GTM

DOLE’s CAMP initiative to address gaps for affected workers during the pandemic

Latest News PEDP No Comments

As the COVID-19 pandemic become a hindrance to workers to sustain their everyday living, the Department of Labor and Employment (DOLE) highlighted the implementation of its COVID-19 Adjustment Measures Program (CAMP) to address gaps for the affected workers. CAMP serves as a safety net program of financial support to affected workers in private establishments that have adopted flexible work arrangements or temporary closure. The program was intended to mitigate the economic impact of reduced income due to the pandemic.

DOLE analyzed their strong and weak points in implementing the said program. It was identified that the majority of the CAMP applications were Micro, Small and Medium Enterprises (MSMEs) acquiring a total of over 1.6M applications and over 550,000 workers have already received the aid as of May 2020.

However, due to budget limitations, the agency has only accommodated 650,000 workers and still seeking ways to accommodate the unserved applications. These updates were given by DOLE Assistant Secretary Dominique Rubia-Tutay during the eFora on “Preserving Jobs: Reshaping the Future of Work and the Talent Pool”- Episode 6 of the #ResilienceandRecoveryPH: An eForum Series organized by the Philippine Exporters Confederation, Inc. (PHILEXPORT), Employers Confederation of the Philippines (ECOP), Philippine Chamber of Commerce and Industry (PCCI), and the Philippine Disaster Resilience Foundation (PDRF).

For further details and information on the eForum series, email at communications@philexport.ph. PKC

TESDA gears up to adapt the “New Normal”

Latest News PEDP No Comments

The Technical Education and Skills Development Authority (TESDA) gears up to adapt the “new normal” after the COVID-19 pandemic through its “OPLAN TESDA ABOT LAHAT – TVET towards the New Normal” Operational Plan. In continuous support to the Philippine Export Development Plan 2018-2022, as directed by Memorandum Circular No. 27, TESDA continue to oversee policies on the prioritization and implementation of technical vocational education and training (TVET) amidst the Covid-19 pandemic.

The Operational Plan aims to come up with relevant policies and programs to help society adjust to the new normal by introducing flexible & technology-based TVET arrangements, prioritizing agribusiness courses, and reassessing & adjusting TESDA’s systems responsive to future crises.

Priority sectors were also identified by TESDA in the Plan, namely: Agriculture, Health, ICT and Construction.

Moreover, the said Plan contains the following three (3) phases:
Phase I: Survival- involves the immediate response of TESDA during the crisis, focusing on reducing possible transmission of the disease, ensuring safety and security;

Phase II: Transitional or the transition period which provides for the TESDA’s action plans, programs and activities during the modified community quarantine as the country transitions to the “new normal.” and;

Phase III: Structural that involves the regular implementation of all programs under the “new normal” condition. PKC

DOST’s support to MSMEs amid the global health crisis

Latest News PEDP No Comments

Amid the global health crisis brought by the COVID-19, the Philippine Government agencies continue to support the export industry as they continue to implement their existing programs in assistance for the Micro, Small, Medium Enterprises (MSMEs).

As the current situation urged the need to double the production of medical goods such as masks, Personal Protective Equipments (PPEs) and food and beverages for the frontliners,  the Department of Science and Technology (DOST) Small Enterprises Technology Upgrading Program (SETUP) is continuing its implementation and support to the industries through its Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD).

DOST continues to support the Philippine Export Development Plan (PEDP) 2018-2022 Strategy 1: Improve the overall climate for export development, continue to support the export industry by upgrading to SETUP 2.0 that aims to fully harness science and technology and innovation for enhanced competitiveness of MSMEs in both local and global markets.

Additionally, the Science 4 Change Program (S4CP) of the agency implements various programs for capacity building of Research and Development Institutions and Industrial Competitiveness. To create a synergistic academe-industry relationship to invigorate Philippine R&D DOST is implementing its Collaborative Research and Development to Leverage Philippines Economy CRADLE) Program. DOST also has its Business Innovation through S&T (BIST) for Industry Program to facilitate the acquisition of strategic and relevant technologies by Filipino Companies to support R&D activities.

Moreover, Niche Centers in the Regions (NICER) for R&D serves to establish R&D Centers in the regions to promote regional development; and to Engage R&D experts to lead in strengthening the research capabilities of the Higher Education Institutions (HEIs) and Research Development Institutions (RDIs), DOST has its R&D Leadership (RDLEad) Program.  For more details on the initiatives, you may visit the DOST-PCIEERD website at http://pcieerd.dost.gov.ph. 

Such programs were highlighted by the DOST during the eFora on “Technology and Innovation: Crisis-proofing Businesses”, as part of the #ResilienceandRecoveryPH: An eForum Series organized by the Philippine Exporters Confederation, Inc. (PHILEXPORT), Employers Confederation of the Philippines (ECOP), Philippine Chamber of Commerce and Industry (PCCI) and the Philippine Disaster Resilience Foundation (PDRF).

For further details and information on the eForum series, email at communications@philexport.ph. PKC

ECQ Bayanihan: PNP-FEO expedites issuance of PTU

Trade Policy & Procedures Simplification No Comments

The Philippine National Police-Firearms and Explosives Office (PNP-FEO) suspends the ‘Payment first before issuance of Permit to Unload (PTU)’ policy in a Memorandum dated 03 April 2020 ‘Leniency on Policy of Payment for Permit to Unload in Time of Enhanced Community Quarantine (ECQ)’ followed by a letter dated 06 April 2020, clarifying further the instructions for its implementation.

In lieu of payment first during the ECQ, PTU applicant/s must submit an affidavit of undertaking (notary was also relaxed) along with the necessary documents.

Said memorandum expediting the issuance of PTUs allow stakeholders to pay the aforesaid permit within 30-day after the ECQ has been lifted. It has been proven that during crisis, ”Bayanihan” or strong support with cooperation between government and private sector is essential to address disruption in the supply chain. –MRJ 

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