DTI continues push for zero Tariff on milling wheat, cement

Despite opposition from the concerned industries, the Department of Trade and Industry continues to push for the extension of two executive orders that will keep tariffs on milling wheat and cement at zero.

Trade Undersecretary Zenaida Maglaya said the DTI still saw it necessary to maintain the current zero-tariff regime for another six months.

“That was our recommendation, although we know that the Department of Finance doesn’t want it. We feel that it is still needed,” she said in an interview Thursday.

Separate executive orders keeping tariffs on milling wheat and cement at zero expired late last month.
A month before the orders’ expiration, flour and cement stakeholders Philippine Association of Flour
Millers and the Cement Manufacturers Association of the Philippines had filed separate petitions to bring wheat and cement tariff back to 3 percent and 5 percent, respectively.

Pafmil said the government has not been able to achieve its main objective of lowering bread prices by imposing zero tariff on milling wheat. What the zero-tariff regime yielded instead were forgone revenues for the government of as much as P1 billion.

Cemap president Ernesto Ordoñez, on the other hand, said reverting to the 5-percent tariff regime on cement imports would protect the industry from dumping.

Taking the same position as the DTI were various bakers’ groups, including the Philippine Baking Industry Group, Filipino Chinese Bakery Association Inc. and the Philippine Federation of Bakers Association Inc., which sought zero tariff not only on milling wheat but also on flour.

“This petition to lift the tariff on flour imports will bring down the price of bread and other baked food products for the benefit of the consuming public. At present, the 5- to 7-percent tariff rate on flour adds a burden to bread and other flour-based prices and delays the implementation of the country’s international trade agreements. The lifting of the tariff on imported flour is necessary as it will directly benefit the consuming public and the baking industry,” a joint petition filed with the Tariff Commission stated.

The DTI’s recommendation for zero tariff, however, only covered milling wheat and cement—products that were currently under a zero-tariff regime.

Malacañang had yet to issue any new executive orders on the matter.(PDI)





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Trade department finds a way to cut red tape

Business name registration can be processed in 15 minutes, from the usual eight hours, provided the applicant’s papers are in order, according to the Trade and Industry department.

It can be done in 15 minutes, Secretary Gregory Domingo told a House committee hearing on Friday, pointing out that his department has overhauled a software to cut red tape and speed up the process.

Testifying before the House committee on appropriations, with Malabon-Navotas Rep. Jaye Noel presiding, Domingo said the “software” will be put to use before the administration completes its first 100 days in office.

“We have been reviewing it for the past two months. We implemented changes to reduce the business registration time to 15 minutes and this will be in place on or before the 100th day in office of President Aquino,” Domingo told the House panel.

Under the new system, Domingo said, those wishing to register businesses would only have to enter the requirements in a computer terminal and push the enter button to know their Tax Identification Number, Philhealth, Social Security System Number, and Home Development Mutual Fund (Pag-IBIG).

“Getting a business name registered takes four to eight hours. We will reduce it to 15 minutes,” Domingo said. He did not say exactly how the department would do it and what changes it would put in place.

But Noel said the DTI has to make good on its promise since reducing the “red-tape” was among those things the President promised to implement in his first state-of-the-nation address. Reduced red tape would make the Philippines “investment-friendly” to attract investors.

The Trade chief admitted that outside of the Philippine Economic Zone Authority, it is much more difficult to secure business permits from the Local Government Units.

Domingo sought the approval of DTI’s P2.118 billion budget for 2011, which he said was much higher than this year’s but far from his desired level of P4.6 billion.

Of the P2.118 billion, some P973 million is allocated for personnel services, P1.376 billion for operations and only P371 million for capital outlay, he said.

The budget constraints, Domingo said, would disrupt such projects as “one town-one product” campaign. Also facing being sidelined are the department’s consumer education program, massive information on free trade, stricter implementation of product testing, and internal audit service. (Manila Standard)

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Exporters told to take advantage of trade pacts

The Department of Trade and Industry (DTI) is urging local exporters to take advantage of the free trade regime in Asean to do more business with their neighbors.

This comes with an assurance by the DTI that it would look into the possibility of setting up a self-sustaining export support fund (ESF) for exporters to replace the P1-billion ESF that was not fully utilized.

According to DTI Undersecretary Adrian S. Cristobal Jr. the advent of free trade agreements such as the one the Philippines has with Asean, Japan and through Asean with China, Australia and New Zealand, signals more FTAs with other countries.

Cristobal said priority countries include Taiwan, the United States, Vietnam, Europe, India and China.
As it is, DTI Secretary Gregory L. Domingo said local businesses have yet to fully tap the Asean FTAs to expand their markets.

Domingo said told exporters in a meeting yesterday that the Philippines has one of the lowest benefits and utilization of the Asean FTAs.

"Either businesses are too shy to try to think regionally or they are not aware of such. So we are coming up with an information campaign on the potential benefits of trading with Asean," he said.

Domingo said 98 percent of tariff lines in Asean have been reduced to zero beginning January this year, making trade for these products free.(Business Mirror)

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Meeting of the Regional Statistical Coordination Committee at NEDA 7

 



The Regional Statistical Coordination Committee 7 chair and NEDA 7 regional director Marlene Rodriguez recently called for a meeting on September 28. NEDA 7 ARD Efren  Carreon presided over the RSCC 7 meeting on behalf of the RSCC Chair.

The meeting was attended by representatives of various government agencies such as the DTI 7, NEDA 7, NSO 7, BAS 7, BSP 7, DOLE 7, DOT 7, DILG 7, DOST 7, USC-CHED ZRC, PPDO  Cebu, CPDC Cebu City, and PSR.

The agenda called for the presentation of a draft resolution creating the technical working group for the Regional Development Research Agenda (RDRA), discussion of the Regional Statistical Compendium and setting up of a common Database; proposed statistical literacy survey, training strategy for regional stakeholders and proposed activities during the National Statistics Month.

It was recommended that the RSCC endorse the draft CV-RDRA to the RDC Sectoral Committees and to form an RDRA TWG to plan out the details of implementing the arrangements for knowledge sharing and networking for the RDRA. The TWG would be composed of the RSCC PSRs, DOST, DOH, CV-CIRRD, USC-CHED, ZRC, DILG, LGU representatives.

ARD Carreon said that this is the first attempt to consolidate a research agenda on a regional basis, based on development and policy research gaps noted from the MTDP and the RDP. He said that the advantage of having an RDRA is that it facilitates certification that a research to be funded falls within the region’s priorities.  Normally, research funding agencies ask for this certification.

Vittoria de Veyra of NEDA 7 then presented the draft Central Visayas Statistical Compendium that would start off the work of the proposed TWG on the Statistical Compendium. The draft is basically contained regional data gathered from publication of the NSCB and NSO. The data has been categorized by sector.

Ammie Generale of DILG 7 presented the Community based Monitoring System (CBMS), giving some background information on how it came to be and why, as well as the methodology and instruments developed.

Ms. De Veyra also showed the body the NSCB prescribed form for filling up with each agency’s planned activities in celebration of the National Statistics Month in October.

The TWG-RDRA members were later asked to share their existing procedures for selection of quality research for dissemination/ advocacy for utilization.  The TWG-RDRA members were expected to report to the RSCC on possible new arrangements/ procedures that RDCC or the RDC could facilitate between research generators and potential research users to promote research dissemination and utilization.

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Bijoux 2010 in Cebu

On September 18-20, 2010, international buyers converged on Shangri-la’s Mactan Resort And Spa in Cebu, Philippines for a unique Fashion Jewellery & Accessories Fair organized by the Fashion Accessories Manufacturers And Exporters Foundation Philippines, Inc. (FAME Foundation).

Bijoux Cebu, Asia's destination for green jewelry had a myriad of new innovations this year.

Bijoux Cebu highlighted the Spring-Summer 2011 Collection.  In addition, it was an interactive and experiential trade show that built on industry knowledge, business relationships, and social responsibility.

The Philippine Department of Trade and Industry, Department of Tourism, Department of Science and Technology and the Department of Environment and Natural Resources – Regional and Provincial Directors, Cebu FAME Foundation Officers and other VIPs were there to welcome the visitors and buyers at the opening ceremony.

The fact that this is the only show in the world that is held in an internationally renowned 5-star resort where you can get out of bed, have a quick dip in the powder white sand beach then walk to the exhibits in 5 minutes was a big come-on for the foreign buyers.

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DTI-BOI Conducts IPP Orientation Workshop in Cebu

The Board of Investments (BOI) of the Department of Trade and Industry in coordination with the DTI-Central Visayas, NERBAC-Region VII and Cebu Provincial Office held an Orientation Seminar on the 2010 Philippine Investment Priorities Plan (IPP) last September 20 at the Crown Regency Hotel, Cebu City.

The 2010 Investment Priorities Plan provides a platform to maximize opportunities as well as benefits from the implementation of free trade agreements.

Recognizing that the effects of the global economic crisis still linger, the government has retained the contingency list, which is a temporary inclusion in the 2010 IPP to assist existing enterprises recover from the global crisis aftermath and also to cover new projects of micro and small enterprises.

Further, the 2010 IPP promotes a sustainable economic model that allows for growth, job creation and environmental protection.

Embracing an approach that is both green and economically successful, the government provides support to the private sector initiatives on green gas emissions reduction and disaster risk management.

The 2010 IPP identified priority areas that can provide the greatest push for the country to attract more investments and generate jobs. 
These priority investment areas include the regular list containing nine priority investment areas that were identified to support the current priority programs of government; the export activities which includes manufacture of export products, export services and activities in support of exporters; the mandatory list which now includes the recently passed R.A. no 9593 or the Tourism Act of 2009 that covers all areas/ activities where the inclusion in the IPP and/or the grant of incentives under EO226 is mandated by law; the ARMM list which covers priority investment areas that have been determined by the Regional Board of Investments of the Autonomous Region of Muslim Mindanao in accordance with EO 458.  The economic activities listed in the ARMM shall be entitled to incentives provided that the said activities are undertaken under the ARMM region.

The Cebu orientation workshop gave participants valuable and detailed information on preferred investments by the Philippine government, as well as provided them an opportunity to engage personally and consult directly with BOI officers during the one-on-one investment counseling in the afternoon.

The Cebu seminar was part of the BOI's roadshow for the IPP around the country.

The IPP is an annual list of priority projects / activities that can qualify for government incentives under the Omnibus Investments Code (EO 226). Incentives include income tax holidays and tax exemptions, duty-free importation of capital equipment, additional tax deduction on labor and training expenses, employment of foreign nationals, zero-rated VAT, among others.

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Regional Economic Managers' Dialogue with Pres. Benigno Aquino III

President Benigno S. Aquino III made his first presidential visit to the province of Cebu together with his cabinet secretaries on Wednesday, September 15, 2010.

The President decided to visit the province to get a feel of the local economic situation and discuss with businessmen issues of local concern.

Industry leaders were informed on the economic plans of the new administration and at the same time were provided an opportunity to have a meaningful dialogue with the President.

The five cabinet secretaries who did the economic briefing were Cesar Purisima of the Department of Finance, Gregory Domingo of the Department of Trade and Industry, Cayetano Paderanga, Jr. of the National Economic Development Authority, Gov. Amando Tetangco, Jr. of the Bangko Sentral Ng Pilipinas and Jose Rene Almendras of the Department of Energy.

The briefing in Central Visayas focused on the developments in the priority sectors such as tourism, food supply chain and BPO, among others.

Issues and concerns raised during the dialogue included the P4.404 Billion for infrastructure, enhancement of tourism in Cebu and the region, reduction of fuel and power costs, modernization of the Mactan-Cebu International Airport, establishment of mass transit system, realization of the Panglao International Airport and building of the Cebu-Bohol bridge.

There were more than100 business leaders from Cebu, Bohol, Siquijor and Negros Oriental who attended the dialogue at the Cebu City Marriott Hotel.

He then proceeded to an event organized by the Department of Social Welfare and Development and meet with the beneficiaries of the “Pangtawid Pamilyang Pilipino” Program (4Ps), an ongoing project that assists the poorest of the poor.   During the event, there will be testimonials from beneficiaries in Cebu on how the program has changed their lives for the better. 

President Aquino is also set to go to Davao immediately after his Cebu visit.  The Davao briefing which will be held at the Marco Polo Hotel will focus on agri-business and energy sectors.

Cebu, heart of the islands group known as Central Visayas, is the fastest growing economy in the region. It is powered by manufactured exports, shipping, tourism, and, currently, growth in Information and Communications Technology (ICT) and Business Process Outsourcing (BPO).

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DTI 7 joins in the celebration of the 110 Anniversary of Philippine Civil Service

The Philippine Civil Service currently marks its 110^th anniversary in September this year. 

The DTI 7 joins all civil servants in the celebration.

The theme for this year’s celebration is anchored on President Benigno Aquino’s call for reform, on his pledge to implement change in government and on the clamor for increased transparency and accountability.

The month long celebration shall provide government agencies the opportunity to celebrate reforms and milestones as they fulfill their respective mandates. The event would also highlight the race to excellence of civil servants and government agencies and show public service at its best.

The Civil Service Commission enjoins state workers nationwide to be part of the race to responsive, accessible, courteous and effective public service. There is much expected of civil servants but by joining the race, they can make the most of the opportunity afforded them in serving their fellowmen. It is time to shift gears, to leave unnecessary baggages, to give one's best shot and to win the race in a public service.

Today, September 6, 2010, the DTI 7 staff held a simple flag ceremony and listened to PNoy’s speech.

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DTI-BOI moves 2010 Investment Priorities Plan Orientation Seminar in Cebu to Sept. 20

The Department of Trade and Industry's (DTI) Board of Investments (BOI) has moved the 2010 Philippine Investments Priority Plan (IPP) orientation seminar on September 20, Monday, 8:00am - 5:00pm at the Crown Regency Hotel, Cebu City.

Among the preferred areas of investments are agriculture/agribusiness and fishery; infrastructure; manufactured products; business process outsourcing (BPO); creative industries; strategic activities; green projects; disaster prevention, mitigation and recovery projects; research and development and innovation.

The orientation seminar is open to the public

For more details on the Cebu IPP orientation, please call DTI-Cebu at 412-1863 and 253-2631 local 18.      

The BOI is currently doing  a series of orientation seminars on the 2010 IPP in key cities in the Philippines.

Under the Omnibus Investment Code of 1987, the BOI is responsible for the regulation and promotion of investments in the Philippines.

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DTI offers help on design, trends

BEFORE a big trade show kicks off next year, the Department of Trade and Industry (DTI) hopes to update those under the One Town, One Product (Otop) program with trends on design and color before the year ends.

Dr. Elias Tecson, chief of DTI Cebu’s business development division, said they will be holding information sessions on color trends and product design in early December.

The sessions are meant to help local manufacturers in the towns showcase new products and designs in the National Trade Fair to be held in Manila in March.

Tecson said that if the municipalities can introduce new products, they can penetrate the export market.
“Most of those in the towns are not aware what the trends are abroad,” he said.

He said they want to conduct regular sessions to update manufacturers on trends so they can also update their designs to meet demands abroad.

He said they will be coordinating with the Bureau of Export Trade and Promotions and the Bureau of Domestic Trade so they can hold information sessions for those under the program.

He said that in Barili, which is known for making woven bags locally called the bayong, people came up with other uses of the bayong apart from being a bag used to hold items bought at the market.

Changing a bayong’s colors, style and adding embellishments makes it a fashion bag.
Aside from Barili, he also said they will also update footwear makers in Carcar with new styles in shoes so they can also compete in the market.

Tecson said they were able to guide the Carcar United Footwear Manufacturers Inc. in planning their businesses. The agency also introduced to them the concept of buying raw materials in bulk. With this, he said they were able to save 40 percent in material cost.

Otop is a government program meant to promote a specific product or service in a municipality, making use of an area’s indigenous raw materials and the skills of the locals that have been handed down from one generation to the next. (Sun Star Online)

Export council eyes 10 percent growth in Cebu thru 3-yr plan

The Export Development Council (EDC) has consulted Cebuano exporters on the drafting of the three-year Philippines Export Development Plan (PEDP) aimed at achieving a 10 percent export growth year-on-year.

The EDC, in coordination with the Bureau of Export Trade Promotions (BETP), is now preparing the PEDP 2011-2013, which will chart the strategies to increase the export revenue of the country, employment generation, and other economic activities as embodied in the Export Development Act. Both agencies are under the Department of Trade and Industry (DTI).

BETP Director and EDC Executive Director Senen Pelada said the regional consultation last Wednesday was meant to gather feedback from exporters on the development of the three-year trade strategy roadmap for the export industry. (PNA)