Bamboo Industry Gets Boost from Government and Private Sector

QUEZON CITY - Government and private sector stakeholders converge to support the bamboo industry during the Philippine Bamboo Industry Development Council meeting (PBDIC) on 6 February.

As Chair of the Bamboo industry council, Department of Trade and Industry (DTI) Secretary Ramon Lopez reported that various agencies like the Departments of Agriculture, Environment, Local Government, and Trade are aligning their various programs and connecting the dots in the value chain of the bamboo industry. These programs include from tissue culture, and planting materials developed by DA to plant propagation and greening program of DENR, to processing, product development and design and marketing by DTI.

Several private organizations and advocacy groups will likewise merge their activities into the council’s programs. Moreover, being an agribusiness activity, located at the countryside, Lopez added that these activities are included in the Board of Investments BOI investment priorities plan or IPP that can enjoy incentives. The PBDIC is now also heavily supported by the House Deputy Speaker DV Savellano, being a staunch Bamboo advocate for years.

“The DENR’s National Greening program is targeting to plant 19,000 hectares of bamboo nationwide" said Sec. Lopez.

Department of Agriculture (DA) Secretary William Dar also expressed support for this effort in turning bamboo crops into an investment opportunity. Sec. Dar recently approved DTI’s request of including bamboo as a high-value crop. DA encourages farmers to plant high-value crops like mango, banana, coffee, and cacao as they are expected to generate more profit.

"With bamboo as a high-value crop, we can undertake various interventions that include research, processing and value-adding, and budgetary support, complementing the programs and projects of the PBIDC," said Sec. Dar.

Bamboo takes only three years to fully grow as compared to 10 to 20 years for wood trees. The plant can be used as construction materials, as well as furniture and paper-making, among others, providing a good livelihood source for a community.

Sec. Lopez shared that investments are welcome at all stages of the value chain from nurseries to design studios. Both secretaries also promoted the use of modern technology to quickly propagate and process the plant. Secretary Dar meanwhile encouraged the participation of big businesses to partner and help the small farmers, to make the project more competitive and profitable.

PBDIC Vice-Chair and Ilocos Sur Representative Savellano shared that the bills filed are to institutionalize the PBDIC and these are now being discussed at the 18th Congress. He also committed to push the bill at the bicameral hearings.

Senate Bill 524, proposed by Senator Juan Miguel Zubiri, aims to make bamboo a main export product by creating the Philippine Bamboo Industry Development Roadmap and the Philippine Bamboo Industry Development Council to provide the overall policy and program directions, and coordinate the activities of the public and private sectors.

The council will have an official launch to promote the bamboo industry. The campaign will be named 5K: Kawayan, Kalikasan, Kabuhayan, Kaunlaran, Kinabukasan.

DTI Supports ProPak; Strives for Sustainable PH Economy Through Processing and Packaging

Ensuing the success of last year’s trade exposition, ProPak, the premiere processing and packaging trade show in Asia, returned to set up its 2nd edition in the Philippines, at the World Trade Center Metro Manila, Pasay City last February 5.

Organized by Informa Markets, with the support of the Department of Trade and Industry (DTI), Packaging Institute of the Philippines (PIP) and other government and non-government agencies, ProPak Philippines 2020 flaunts more than 400 exhibitors from 30 countries featuring the world-class packaging and processing machines, benefiting a wide range of sectors from food, beverage, and pharmaceutical industries.

This three-day trade exhibit aims to further boost the capability of local packaging service providers and micro, small and medium enterprises (MSMEs).

DTI has acknowledged the role of good packaging and processing to Philippine MSMEs in enhancing their productivity, marketability, profitability and competitiveness and so introduced various initiatives on product development such as Pak! Pinas, One Town One Product (OTOP) Next Gen, and now the promotion of the ProPak Philippines.

“Many of the MSMEs, food processors, and even non-food, will always be challenged to exhibit their products well and so we are challenged to find solutions – maybe integrate these two sectors, the packaging and the MSMEs. So in 2018, we gave some rounds of packaging gatherings. We created the Pak! Pinas roadshows in Region 4A as well as in Visayas and Mindanao, and it gained success. From that time on, we saw the improvement in the confidence of micro entrepreneurs seeing developments in their products. Then came the ProPak Philippines and we’ve seen some its successes already. We hope that this will continue to get better and better,” said Trade Secretary Ramon Lopez during the ProPak’s launching.

Trade Chief Lopez also urged the ProPak exhibitors to continuously reach out to MSMEs and offer affordable packaging technologies.

Through the Regional Operations Group’s initiative, DTI sent more than 500 MSMEs to ProPak Asia in Bangkok, Thailand in 2018. Last year, the pioneer edition of ProPak Philippines reached to a close of 10,000 trade visitors, and stakeholders.

“DTI vows to continue its support to ProPak as the Department has seen the huge potential of the Philippines in the packaging industry and exploring ways to reach its goal to help the people in this industry through expanding their knowledge, innovating packaging solutions, and connecting with the international network of the industry,” said MSME Advocate Undersecretary Blesila Lantayona.

Furthermore, Secretary Lopez reiterated the significant role of MSMEs in sustaining the economic development of the Philippines, as it continuously contributes to the employment generation as well as the eradication of poverty in the country. Through DTI’s efforts, there are now around 1.5 million registered enterprises in the country.

Gracing the event was also House Committee Chairman in Commerce and Industry Weslie Gatchalian.

ProPak Philippines 2020 runs through February 5-7, 2020.

DTI CHIEF ASKS HI TECH PACKAGING SUPPLIERS TO CATER TO MSMEs

Department of Trade and Industry (DTI) Secretary Ramon Lopez said access to modern high technology packaging suppliers will help micro, small, and medium enterprises (MSMEs) level up their productivity and competitiveness. The secretary was a keynote speaker at the Propak Philippines 2020 on 5 February at the World Trade Center. Sec. Lopez urged the exhibitors to reach out to MSMEs and offer affordable packaging solutions. He also said that with the use of robotics and artificial intelligence in some of the products available at ProPak, packaging suppliers bring the necessary innovation and technology that can help MSMEs improve their products, raise their profit, and increase the sector’s contribution to the economy. SMEs should also have easier access to digital transformation for their operations. Through the many DTI initiatives that can help MSMEs, Sec. Lopez hopes to further increase the number of registered enterprises from around 1.5 million today to 2 million in 2021. Also gracing the event was House Committee Chair in Commerce and Industry Weslie Gatchalian, who expressed support for DTI’s push for technology and has lobbied to increase the budget for DTI’s Shared Service Facilities. The packaging and processing trade fair runs until 7 February and features the latest technology from global suppliers.

DTI Suspends PS Licenses of Six Steel Manufacturers

Contrary to the recent statement made by a product standards and quality group that government has failed to take action against retailers and manufacturers of substandard steel, the Department of Trade and Industry (DTI) suspended the Philippine Standard (PS) licenses of six (6) steel manufacturers in 2019 for failing the independent testing commissioned by the DTI-Bureau of Philippine Standards (BPS) from the Metals Industry Research and Development Center (MIRDC).

These steel manufacturers include Maxima Steel Mills Corp., Henro Steel Corp., Steel Asia Manufacturing Corp. – Meycauayan Bulacan Plant, Cathay Metal Corp., Somico Steel Mill Corporation, and Sagarthama Steel Trading Corporation.

1) Maxima Steel Mills Corp. - Deformed Steel Bar and Equal Leg Angle Bar

2) Henro Steel Corp. - Rerolled Steel Bar

3) Steel Asia Manufacturing Corp. - Meycauayan Bulacan Plant - Deformed Steel Bar

4) Cathay Metal Corp. - Equal Leg Angle Bar

5) Somico Steel Mill Corporation - Rerolled Steel Bar

6) Sagarthama Steel Trading Corporation - Deformed Steel Bar

The suspension order resulted from unannounced surveillance audits conducted by the BPS in 2019 on various steel manufacturing plants in the country. Samples culled from these audits that were subjected to testing by the MIRDC proved that these six steel manufacturers were not compliant with the standards indicated in Philippine National Standard (PNS) 49, Series of 2002. Until these steel manufacturers comply with the PNS, their PS licenses will remain suspended.

In addition to this, the BPS denied the issuance of Import Commodity Clearances (ICC) for deformed steel bars and equal leg angle bars imported by Megawide Construction Corporation, Petron Corporation, and Remington Industrial Sales Corporation, approximately valued at over sixty-eight million pesos (P68,000,000).

The deformed steel bars imported by Megawide Construction Corporation were denied issuance of ICC due to non-compliance with PNS 49:2002 while those imported by Petron Corporation had no proper markings. Remington Industrial Sales Corporation, on the other hand, has no valid PS license for the importation of equal leg angle bars. All these imported steel bars were either destroyed or exported to their country of origin.

It can also be recalled that in September 2019, Wan Chiong Steel Corp. was found to be manufacturing deformed steel bars that are not covered by the scope of their PS license. After due process and filing of formal charge, the DTI-Fair Trade Enforcement Bureau (FTEB) issued a decision last November 2019 for said steel manufacturing company to pay administrative penalty amounting to P450,000.00. Earlier, the same steel manufacturer was suspended for five (5) months for non-compliance with PNS 49.

Similarly, Dragon Asia Rolling Mills was also found to be manufacturing steel that are not covered by the scope of their PS license. Formal charge against the company has been filed by the FTEB and the case is now up for decision.

“For the whole of 2019, the DTI penalized a total of 42 retailers and manufacturers of steel — a clear contrast to the claim of a product safety and quality group that the Department failed to charge violating steel manufacturers and traders for substandard steel products. The DTI stops at nothing in tracking down unscrupulous businesses and ensuring that violators are dealt with to the highest and fullest extent of the law. The protection of consumers is our utmost priority and we remain steadfast in our commitment,” said DTI Secretary Ramon M. Lopez.

Since the beginning of President RodrigoDuterte’s  administration, the DTI has intensified its surveillance, monitoring, and enforcement efforts on all products and services that are under its jurisdiction, especially those included in the mandatory product certification list such as steel.

In conjunction with this effort, the DTI advises the public to remain vigilant when purchasing products, including steel and other construction materials. Always look for the PS or ICC mark to be assured of quality and safety.

For the complete list of products that should bear the PS and ICC marks, please visit the BPS portal at www.bps.gov.ph. To report establishments selling uncertified and non-conforming products, please call the One-DTI (1-384) Hotline or send an email to consumercare@dti.gov.ph. 

DTI-TRANSUNION AGREEMENT TO IMPROVE COMPETITIVENESS RANKING, PROMOTE MSME ACCESS TO FINANCE

The Department of Trade and Industry (DTI) and TransUnion Philippines signed a data sharing agreement on 29 January 2020 in which DTI will provide Publicly Available Data of business enterprises to TransUnion, the country’s largest credit bureau.

The data sharing agreement will allow TransUnion to develop a “firm bureau database” to expand distribution of its credit information to not only individuals but to firms as well. This criterion is measured by the World Bank in their Doing Business (DB) Report under its “depth of credit information index.”

“Today’s signing of the data-sharing agreement between DTI and TransUnion is part of the government’s continuing effort to improve our competitiveness ranking. This partnership signals greater collaboration between the government and the private sector in using data analytics to help us in policy making and program development,” DTI Secretary Ramon Lopez said.

Sec Lopez further said: “This initiative is hitting two birds with one stone. By working closely through information-sharing with TransUnion, we are confident that we will secure additional points under the Getting Credit Indicator. More importantly, the publicly available data we provide will be processed together with their rich database to be used in determining borrowers’ credit worthiness. In the end, this will contribute to increasing the bank’s efficiency in processing loan applications.”

Following the data protest filed by the Philippine government in 2018, the WB accepted the data correction request of the Philippine government when it confirmed that TransUnion is the largest credit bureau in the country with 8.47 million adult population in its database. This is 13.5% of the total adult population in the Philippines, exceeding the 5% WB threshold. The data correction request resulted in a 35-point increase in the Philippines’ score for Getting Credit and a significant +52 notches increase in the indicator ranking.

“At TransUnion, we use information to empower our lending partners in giving financial access to more consumers. In order to do this, we at TransUnion continually strive to bring in more extensive credit information from various sources into our database. The more diverse and extensive data that we have, the more efficient our business partners will be in making decisions to extend credit to both consumers and businesses,” said Ms. Pia Arellano, President and CEO of TransUnion Philippines.

The DB Report is an annual survey report released by the World Bank. In the DB 2020 report, the Philippines reached the Top 100 competitive countries when it recorded a +26-notch increase, which remains the highest recorded annual improvement of the country since 2010. From 124th place, the Philippines rose to 95th.

With the enactment of RA 11032, or the “Ease of Doing Business and Efficient Government Service Delivery Act,” DTI has turned over to the Anti Red Tape Authority (ARTA) the reform initiatives for the succeeding cycles

For more details and event updates, please check DTI Philippines’ official social media websites (@DTIPhilippines on Facebook, Instagram and Twitter).

DTI Confiscates Substandard Appliances in Batangas City Inspection

BATANGAS CITY – The Department of Trade and Industry (DTI) confiscated appliances from two supermarkets during an inspection last 27 January 2020. The appliances included light bulbs, rice cookers, electric kettles, and induction cookers that do not have Philippine Standard (PS) marks or Import Commodity Clearance (ICC) stickers for imported products.

“When buying electric products, consumers should always check for PS or ICC marks, even if they’re from known brands. The stickers certify that the products passed quality and safety standards set by the Philippine National Standards. Substandard products tend to break down sooner and may even cause fire,” said DTI Secretary Ramon Lopez.

DTI also issued Notices of Violation and gave the two establishments 48 hours to respond. If charged, they may be fined up to PHP 300,000 according to DTI Department Administrative Order No. 02 S, 2007.

In one supermarket, DTI seized all appliances under the brand "US Tradition" because they either did not have stickers, or the sticker information did not match the product when scanned by the ICC Verification System app by the DTI-Bureau of Product Standards.

The free app, available on Google Play and the App Store, can scan QR codes on the ICC stickers to reveal product information. Sec. Lopez encouraged the public to download the app and report fake ICC stickers to the 1-DTI (1-384) hotline.

Apart from pursuing erring retailers, Sec. Lopez directed the DTI to go after the distributors and manufacturers of substandard products. This way, they can be confiscated even before they land in stores.

Sec. Lopez was with House Committee on Trade and Industry Chair Weslie Gatchalian, DTI Undersecretary Ruth Castelo, and Department of Agriculture (DA) Assistant Secretary Kristine Evangelista to monitor the prices of basic goods and agriculture products in Batangas City after the Taal volcano eruption.

DTI Batangas declared a price freeze on 13 January, which set a price ceiling for basic necessities like bottled water, canned sardines, bread, instant coffee, and powdered milk. The team found that groceries mostly adhere to the price ceiling, with some products priced even lower than the set ceiling.

DTI, however, issued a Show Cause Order to a supermarket selling bottled water products above the price ceiling. They were given 48 hours to respond and adjust their prices. The management said that since they are part of a supermarket chain, the prices come from the head office. But they said they will lower the prices and inform their head office immediately. If charged with profiteering, establishments may incur a fine between PHP1,000 to PHP1,000,000, under Republic Act 7581 or The Price Act.

Meanwhile, prices of rice, chicken, and pork in wet markets also remained stable since the eruption. Both chicken and pork were priced at PHP 170 – PHP 180/kg. But according to the DA, since the farmgate prices of chicken and pork are PHP 80/kg and PHP 100/kg respectively, the retail prices should only be around PHP 140/kg for chicken and PHP 180/kg for pork.

Sec. Lopez said that since DTI has no authority over agriculture products, they can’t file charges against overpricing vendors. Instead, he suggested that DA set a Suggested Retail Price for these products, especially Chicken, so the DA can have a solid basis for filing charges.

DTI Grants P50-M Worth of SSF Lab to Ilocos Norte’s State University

Contributing to the needs and addressing the bottlenecks in the value chain of priority industry clusters, the Department of Trade and Industry (DTI), spearheaded by the Regional Operations Group (ROG) Undersecretary Blesila Lantayona, granted the provision of Shared Service Facility (SSF) laboratory equipment to Mariano Marcos State University (MMSU). The ceremony transpired during the inauguration of the state university’s National Bioenergy Research and Innovation Center (NBERIC) in Brgy. Quiling Sur, Batac, Ilocos Norte last January 23.

The P50-M SSF consists of machineries for Bioenergy Innovation, Incubation Hub and Product Testing Center for Renewable Energy stored in the NBERIC Building.

“We are happy for being part of this project. DTI has already provided the equipment so they can start the activity. Now, DTI still owns the equipment, but if the cooperator, which is MMSU, can operate it optimally and can show us that all the equipment are being used, then, in a span of two years, these equipment will be awarded to the MMSU. During the 2-year period, ano man ang mangyari sa mga makina, sagot ‘yan ng DTI,” said Usec. Lantayona.

As DTI’s cooperator, MMSU will regulate the utilization of the SSF for the beneficiaries, such as the researchers, innovators, teachers and students, stakeholders, and especially, the micro, small, and medium enterprises (MSMEs) where they could tap a better and wider market share, and be integrated into the global supply chain.

“The equipment will serve two purposes: for continuous research to form the innovative ideas of young researchers, scientists, in the development of the technology; and at the same time, this is going to be a training facility for the farmers and even entrepreneurs whom we are developing as scientists in the village,” MMSU President Dr. Shirley Agrupis explained.

The bestowed SSF apparatuses will contribute to the research center’s goal as to capacitate all the key players and stakeholders in bioenergy for countryside development through bioenergy research, training, extension, and techno-preneurship.

Furthermore, aiming to improve the competitiveness of MSMEs, the SSF Project is being implemented nationwide with project partners, which may be any juridical entity such as but not limited to non-government organizations, people’s organizations, cooperatives, industry/trade/business associations, local government units (LGUs), state universities/colleges technical vocational schools and other similar government and training institutions.

To date, DTI has already established 2,528 SSFs nationwide mounting up to P1.6-B expenditure since 2013, and 220 of it were launched in Ilocos Region with 3,225 beneficiaries and 4,539 jobs generated. Most of the SFFs granted are designed for food processing, loomweaving and furniture industry.

DTI Chief Tackles Technologies in Trade, Investments Facilitation, E-Commerce and Agriculture Disciplines in 50th WEF

DAVOS, SWITZERLAND – Trade and Industry Secretary Lopez contributed to three sessions during the 50th World Economic Forum held on 21 to 24 January in Davos. Sec. Lopez talked about the impact of technologies on trade, easing investments worldwide, and the future of trade and global economic interdependence. In some bilateral meetings, He also highlighted President Rodrigo Roa Duterte’s focus on inclusive globalization, where bigger economies extend support and market access to smaller economies to ensure that trade benefits all, especially developing countries.

Secretary Lopez and Permanent Representative to the World Trade Organization (WTO), Amb. Manuel A.J. Teehankee served as the official representatives of the Philippines to the WEF. For the last 49 years, the WEF, as the premier gathering for world business, political, academic and other leaders of society, has sought to improve the state of world by shaping global, regional and industry agendas.

World Trade Organization (WTO) events were also topline agenda for the Philippine delegation in Davos, with Secretary Lopez participating in four WTO-related ministerial meetings on 23 and 24 January.

On 23 January, at the ministerial gathering on the Joint Initiative on Investment Facilitation for Development, which seeks to craft new WTO rules to propel investment flows worldwide, Secretary Lopez batted for improved transparency and predictability in investment rules, the easing of administrative procedures, the enhancement of international cooperation, sharing of best practices, and prevention of disputes. At that gathering, Secretary Lopez announced that the Philippines is joining the 98 other WTO Members in negotiations towards new rules on investment in the WTO.

Later that day, Secretary Lopez represented Agriculture Secretary William Dar at a Ministerial Meeting of the Cairns Group, a group of non-subsidizing agricultural exporters that seek to reduce distortions in markets primarily caused by known heavy subsidizers of production and trade. In his statement, Secretary Lopez called on Members to improve notifications, since reforms in subsidies will only be as good as the baseline data from which reductions will begin. Secretary Lopez also appealed for reforms in the area of market access to help countries like the Philippines reverse the damage that highly subsidized farm products from abroad cause Filipino farmers.

At the Ministerial Meeting on Electronic Commerce on 24 January, Secretary Lopez boosted the ongoing drive of more than 80 WTO Members in crafting future rules on e-commerce in the WTO. These rules are founded on the following broad themes: facilitating electronic transmissions, non-discrimination and liability, consumer protection, and transparency and cooperation, among others. Secretary Lopez highlighted the enabling platform that e-commerce presents especially to micro, small and medium enterprises, or MSMEs and the related initiatives on investments and trade facilitation.

On the same day, Switzerland organized a ministerial gathering in preparation for the 12th WTO Ministerial Conference. At this gathering, Secretary Lopez shared his views on ongoing reform proposals in the WTO. This covered transparency and notification, the functioning of WTO bodies, and the treatment of developing countries. He also made a pitch for the existing negotiating mandate in agriculture under the 19-year-old Doha Development Agenda (the Doha Round).

Secretary Lopez reiterated the Philippines’ support for the negotiations on e-commerce and investment facilitation for development, which are joint initiatives of a large proportion of WTO Members aimed at inclusive globalization and shared prosperity for all. He then gave special attention to the critical phase of negotiations on disciplines on fisheries subsidies and called for complete prohibition of subsidies to IUU (illegal, unreported and unregulated) fishing and tight disciplines on subsidies that encourage overcapacity and overfishing, all of which contribute to resource depletion. Secretary Lopez also backed the fishery-dependent archipelagos’ need for policy space, since archipelagos like the Philippines hardly subsidize, yet need to allow small industries to develop, as well as help fisherfolk with their livelihood.

In the past four days, Secretary Lopez also held bilateral meetings with Edward Yau, Hong Kong’s Secretary for Commerce and Economic Development, and the trade ministers of Korea and Chile. He also talked to the chiefs of Tyson Foods, Procter & Gamble, and Novartis to advance business interests of the Philippines.

Iloilo, NegOcc to Have More Towns with Negosyo Centers

In order to accelerate the delivery of services to the localities especially the processing of business documents of micro, small, medium enterprises (MSMEs), the DTI VI is establishing additional Negosyo Centers (NCs) in the Provinces of Iloilo and Negros Occidental, this year.

In the Province of Negros Occidental, a total of 10 NCs will be established in the municipalities of Calatrava, Candoni, Ilog, Manapla, Moises Padilla (Magallon), Murcia, Pulupandan, Salvador Benedicto, Toboso and Valladolid. Once concluded, the province will have the presence of NCs in all its 19 municipalities and 13 cities.

In Iloilo Province, 9 more NCs will be established in the municipalities of Balasan, Alimodian, Badiangan, Duenas, Dumangas, Igbaras, Janiuay, New Lucena and San Dionisio. By the end of the year, the province will already have established a total of 37 NCs.

The Go Negosyo Act or Republic Act No. 10644 mandates the establishment of NCs in accessible locations in the cities and municipalities to be able to help entrepreneurs or would-be businessmen grow their businesses.

The Center helps MSMEs with the processing of business requirements like obtaining registration, business license, and getting technical, financial, and business management assistance, among others.

Last year, the Province of Guimaras has completed the establishment of NCs in all of its five municipalities. The Provinces of Aklan (17 towns), Antique (18 towns) and Capiz (17 towns) concluded the establishment of NCs in all their respective municipalities in 2018 yet.

For Region VI, there will be a total of 147 NCs lodged in the different municipalities and cities, including those established at the provincial government offices and the DTI Provincial Offices, by December 2020.