To address the need of the export sector for innovative financing options, factoring and crowdsourcing platforms were introduced in a seminar conducted by the Department of Trade and Industry- Export Marketing Bureau (DTI-EMB), in collaboration with the Export Development Council and PHILEXPORT under the Philippine Export Competitiveness Program (PECP).
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivables, i.e., invoices to a third party (called a factor) at a discount. Factoring is not the same as invoice discounting. Factoring is the sale of receivables, whereas invoice discounting is a borrowing that involves the use of accounts receivable assets as collateral for the loan. Export factoring on the other hand, is a package that encompasses credit protection, export working capital financing, foreign accounts receivable bookkeeping and collection services. The financier (factor, which usually are the banks) will purchase accounts receivable of invoices, which are raised once the seller (exporter) ships the goods to the buyer. Factoring was discussed by Mr. Etienne Von de Bogaert of the Eurofin Asia Group Pte Ltd., a company based in Singapore.
Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the internet. Crowdfunding offers a chance of success for MSMEs by showcasing their businesses and projects to the entire world. Crowdsourcing was discussed by Mr. Edison Tsai of New Union.
DTI-EMB regularly conducts these information sessions through its Philippine Export Competitiveness Program (PECP)featuring current concerns of exporters. For more details and updates on topics, contact DTI-EMB at telephone number 465-3300 loc. 109 or email to email@example.com.-Grace T. Mirasol
Strengthening Industry – Government-Academe Linkage towards Sustainable and Innovative Growth (SIGASIG) was this year’s theme for the 7th National Education Forum. TESDA Director General Guiling Mamondiong said that it was high time for the industry, government and academe to collaborate and work together as growth and economic accelerators in the country. He noted that by working together and in harmony, the country will be able to achieve global competitiveness. He said that TESDA will endeavour on Technical-Vocational Education and Training (TVET) for global competitiveness. He added that his agency is closely collaborating with the various industries to develop and promulgate skills they required.
On the other hand, Asst. Secretary Amuerfina Reyes informed that human capital development is integral to economic growth and development and that human capital accumulation through education and training promotes economic growth by enhancing labor productivity and by fostering technological innovation and adaptation.
This was confirmed by Mr. Sergio Ortiz-Luis, Jr., when he said “we are in an age where sustained competitiveness in the global economy will depend on the technological or innovation-based strengths, including the development of new products, applying new technology, incorporating best practices in the management of enterprises and developing skill levels across the full spectrum of the labor force, the academe has become a critical “stakeholder” to business bringing with it valuable resources to the table.”
The forum was organized in collaboration with the Philippine Chamber of Commerce and Industry (PCCI) Education Committee and the Export Development Council-Networking Committee on Human Resource Development (EDC-NCHRD).-Grace T. Mirasol
The Depart-ment of Trade and Industry (DTI) – Export Marketing Bureau (EMB) is crafting the new Philippine Export Development Plan (PEDP) for 2018-2022.
The PEDP 2018-2022 will be anchored on the Philippine Development Plan (PDP) 2017-2022, the 10-point socio economic agenda of the President and the existing PEDP 2015-2017. New export strategies and programs to boost export performance will also be adopted to achieve the export target of $122B-130B by the end of the term.
Essential to the development and crafting of the PEDP is the effective consultation among the stakeholders. Focused Group Discussions (FGDs) commenced last 25 August 2017 in the National Capital Region. The next FGDs will be in Cebu on 27 September 2017 and Davao on 29 September 2017.-Piercy Kieth Cezar
The Export Development Council (EDC) issued Resolution No. 04, series of 2017 adopting the revised EDC Vision which envisions “Philippines as a a competitive, intelligent, and innovation-driven exporting nation”. To reach this vision, the EDC adjusted its mission to “Nurturing an environment for exporters to thrive, enabling them to contribute to inclusive, sustainable, and equitable growth”.
The resolution also includes the adoption of EDC core values which are: trailblazing, an innovative key player in the export arena; collaborative, as a public-private partnership, consultation among relevant stakeholders is observed; and resolute which signifies EDC’s strong determination to achieve its goals.
As a response to the strategic external trade policy regime emphasized in the Philippine Development Plan (PDP) 2017-2022, EDC looked to develop the abilities of Philippine enterprises to efficiently compete in the global markets through engaging in policy reforms for trade facilitation and ease of doing business. The vision, mission, and core values serve as a framework on how the different government programs, activities and projects (PAPs) will be aligned with the Philippine Export Development Plan (PEDP) 2018-2022. -Ma. Divine Grace T. Derez
The Department of Trade and Industry (DTI) and Department of Labor and Employment (DOLE) recently signed Joint Department Order No. 01 of 2017 which sets guidelines in the issuance, suspension or revocation of certificates of accreditation to garment manufacturers, exporters and sub-contractors who would want to avail preferential tariff under the Generalized System of Preferences (GSP). The said DO also creates a Workers’ Rights Review Committee.
The DTI- Accrediting Board through the Board of Investments- Incentives Administration Service shall issue the Certificate of Accreditation provided that the applicant complies with the prescribed labor standards. The accreditation shall be mandatory and has a validity period of three (3) years from its issuance. An applicant whose accreditation is suspended may request to lift the suspension after three (3) months. Accreditation that had been revoked may reapply after six (6) months.
The Workers’ Rights Review Committee will be chaired by DOLE. The Committee shall conduct an audit of the applicant’s compliance with labor standards.- Ma. Divine Grace T. Derez
Exporters are advised to use the new Travel Tax Exemption Form starting September 2017. Said form can be downloaded at www.edc.net.ph/travel-tax-exemption
The Technical Working Group of Executive Order (EO) 589, recently approved the new Travel Tax Exemption Application Form. An additional feature will help exporters to find new buyers through the online business matching system of the DTI-Export Marketing Bureau. Exporters are encouraged to register/ update their company profile thru http://businessmatching.dti.gov.ph, for real time online business matching of exporters with foreign buyers.
EO 589 Exempts Exporters from paying the travel tax when joining international trade fairs, exhibitions, selling missions, conferences, among others. For queries, please contact Ms. Mafe Largo through telephone no. 465.3300 local 303 or email at firstname.lastname@example.org. – Marife G. Largo
The Department of Science and Technology (DOST) has transformed its Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD) to be the Innovation Council.
One initiative of the Innovation Council is the Small-Medium Enterprise (SME) Support Program that aims to improve their productivity and competitiveness through consultations and trainings.
The Council is also developing a new program for startups. It has called for Proposals for Startups Research Grant. The proposals should be geared towards translating early stage technologies into market ready products to overcome R&D roadblocks, strengthen intellectual property, establish initial market traction and to refine business model.
The Council is also eyeing proposals that will provide funding support to graduate students and faculty members who will conduct research projects directed towards developing emerging technologies and exploring innovations in the areas of materials research, electronics, and applied physics.
For other programs and further details, visit the DOST-PCIEERD website at http://pcieerd.dost.gov.ph/ – Piercy Kieth Cezar
Strengthening Industry – Government-Academe Linkage towards Sustainable and Innovative Growth (SIGASIG) is this year’s theme for the 7th National Education Forum slated on August 31, 2017, from 8:00 AM to 5 PM.
The main objective of the forum is to strengthen collaboration between and among industry-academe and government to attain employment generation, labor efficiency, global competitiveness and sustainable and innovative economic growth. It is also intended to strengthen complementation and productive partnership between the business sectors, academe and government for a well-established and sustainable industry-government-academe linkage (IGAL); promote IGAL collaboration and partnership as a model of public policy; document and monitor IGAL activities as well as lessons learned and best practices; generate, adapt and disseminate knowledge and information of the benefits of a well- established IGAL, and foster a healthy and vibrant relationship with industry, universities as well as the government in changing the economic landscape of the country through education reforms.
The said event will be attended by the academe, government, industry people and practitioners and collaborators of Industry-Government-Academe Linkages.
EDC encourages interested parties to attend. Venue is at at the 3/F, BA Securities hall, Commerce and Industry Bldg., No. 1030 Campus Avenue, cor. Park Avenue, McKinley Town Center, Fort Bonifacio, Taguig.
For more information contact Ms. Grace Morella at telephone number 846-8196 local 107.- Grace T. Mirasol
The Philippines has ratified the Protocol on the Legal Framework (PLF) to implement the ASEAN Single Window (ASW). The instrument of ratification was signed by the President on 28 June 2017. The ASW is an electronic gateway that provides seamless and simplified information among ASEAN member states.
This means that the Philippines can now electronically receive and send certificates of origin under the ASEAN Trade in Goods agreement (ATIGA Form D), the document needed to avail of the preferential tariff agreement.
Other cross-border documents will also be exchanged under the ASW Gateway in the future. With this, it will facilitate trade between the Philippine and ASEAN neighbors.
Eventually, the ASW connection will help the Philippines to increase its competitiveness in terms of ease of doing business (EODB), and will increase the transparency of cargo processing by providing more accurate, timely, and cost-efficient exchange of information.- Asnia R. Bayabao & Aira Angel S. Baleos
The export sector fully supports the establishment of the TradeNet which aims to harmonize government trade processes and gradually reduce red-tape in the paperless processing of import and export permits.
The TradeNet will serve as an automated permit, licensing and clearance system integrated into one platform for 66 Trade Regulatory Government Agencies (TRGAs) and 10 economic zones. It will cover the functions of the National Single Window (NSW). Continue reading Exporters support establishment of TradeNet