Category Archives: Latest News

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

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

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

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 

 

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

NEDA-RESPOND launch SCAn initiatives  

The National Economic and Development Authority (NEDA) and the University of the Philippines Public Administration Research and Extension Services Foundation Inc., Regulatory Reform Support Program for National Development (UPPAF-RESPOND) has officially turned over the Supply Chain Analytics (SCAn) Dashboard and launched the Incident Reporter Mobile Application last 21 May 2020 at the National Incident Command Center in Camp Aguinaldo.

The SCAn dashboard is created for the purpose of providing up-to-date, real-time information to the Inter-Agency Task Force (IATF) on existing supply chain and logistics bottlenecks/issues, and potential solutions to give them a better view from the ground, and aid them in making relevant and timely actions and decisions. It consists of five components: incident reports, trip videos for major selected routes, survey results from different stakeholders re: supply chain bottlenecks, links to other government dashboards, and a supply chain bulletin for news stories related to supply chain.

On the other hand, the Incident Reporter Mobile Application is created as a platform where different types of users will be able to report different types of incidents. The reports from this downloadable app will be submitted to the SCAn dashboard for appropriate actions of concerned authorities.

In these trying times, digital tools like this initiative provide a silver lining to the COVID 19 pandemic. Hence, everybody is encouraged to make use of the mobile app, and submit reports to help the authorities in identifying and addressing the prevailing bottlenecks in the supply chain, and further to sustain and keep the economy going. – KJDA  

SB Corp INKS MOA for exporters relief fund under CAREs program

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

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.phPKC

TESDA gears up to adapt the “New Normal”

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

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

New route for Mindanao Exporters Promoted 

Exporters from Mindanao are encouraged to explore the Davao-Manado route for transporting their goods and products, specifically food products (both fresh and processed) for a more cost-effective and shorter route (from 5 weeks to 13 days). This was presented during a meeting hosted by Philippine Ambassador to Indonesia, Amb. Leechiong T. Wee, as both countries – the Philippines and Indonesia are also trying to explore ways to resume the Davao-GenSan-Bitung route with a Manila-based shipping company.

The new route is being used and touted as an express line for direct to market shipping route by the Reefer Express Line, Inc., a new player that plans to begin operating the new route within the first half of this year. But operations will commence depending on the negotiations between the shipping company and exporters from both countries.

The shipping company also revealed its plan to serve the new route with additional calls on other ports not only in Indonesia but also in Malaysia and Brunei en route to Singapore. However, the company said that they have yet to discuss the final details with other shippers from the Philippines, Indonesia and other players from Malaysia.

Moreover, the new route was considered a priority of the current administration and the Indonesian government, citing that Manado is the main gateway of Indonesia to the Philippines. Hence, the call for exporters to explore the new route and the services of Reefer Express Line, Inc. – GTM