The DTI’s Commercial Attachés Gear Up for the Philippines’ Post-Pandemic Boom

17 November 2021 – The Foreign Trade Service Corps (FTSC) of the Department of Trade and Industry held its 2022 virtual planning conference from 15 – 17 November 2021 as part of the group’s preparations of its work programs and activities as the Philippines prepares itself for increased economic activity post COVID-19 pandemic.

Secretary Lopez reported that despite the pandemic, Philippines exports from January to September 2021 increased by 17.97% vis-à-vis the same period in 2020; while net FDI’s increased by almost $2B versus the previous year. In addition, the Secretary remarked that “For a while, there are some doubts that this yet might be the recovery, but from what we are seeing, the numbers that were shown in the second quarter and confirmed in the third quarter have really moved back to positive territory.”

The group discussed how it would contribute to the Philippines’ Build Back Better through private sector collaboration, supporting the reopening of the economy, and implementing the DTI’s key programs and reforms. With the Philippines seeing lower COVID-19 infections and easing of restrictions, domestic businesses are re-opening and Filipinos are going back to their places of employment. The FTSC, through these consultations is doing its part to support the country’s post-pandemic recovery by bringing in more foreign investments in new sectors and opening more markets for Philippine products.

Throughout the three-day program, the DTI’s Special Trade Representatives and Trade Service Officers also had the opportunity to meet with officials from various national government agencies such as the National Economic Development Authority (NEDA), Department of Information and Communication Technology (DICT), and the Department of Energy (DOE). Director Reynaldo Cancio of the NEDA explained that the Philippines is on track to hit its 4.9% year-to-date high-end growth target, with a favorable outlook for the country moving towards 2022.

The FTSC, DICT, and DOE also agreed to promote investment growth sectors such as renewable energy, accelerating digitalization and ICT infrastructure in the countryside, and continuing support for IT-BPM and its sub-sectors. The DTI’s Regional Operations Group (ROG) and the Export Marketing Bureau (EMB) also urged FTSC to further explore opportunities for Philippine coffee and coconut products in our key export markets and identifying capacity building partners that would help our Micro, Small, and Medium Enterprises (MSMEs) upgrade their technology and skills.

“As partners in development, the FTSC also met with private sector representatives to learn the newest and most innovative sectors for trade and investment promotion.

Ali Baba Cloud and PLDT Alpha Enterprise discussed the advantages of the Philippines to host hyperscalers through our data centers and cloud services and how the growing availability of cloud infrastructure in the country can be an attractive value proposition for prospective investors across multiple sectors to invest in the country.

Ionics, a 100% Filipino-owned company that has operations in the United States, presented its smart factories that reduced downtime and errors, thereby increasing productivity and cost-efficiency in their Electronics Manufacturing Services (EMS) facilities. It plans to offer these smart factory solutions from the Philippines that would manage and monitor production line processes to major global manufacturing companies as the world moves towards AI-enabled and IOT powered operations.

ECfulfill, a successful start-up E-commerce company also discussed their business model, and how the company is working with the DTI to help Filipino MSME’s penetrate more foreign markets by offering a platform that provides export order fulfillment, warehousing and distribution solutions direct to buyer and consumers abroad both through online marketplaces and brick-and-mortar establishments.”

The FTSC is a frontline mover in advancing the country’s economic interests in the global arena. To date, there are 30 trade representatives posted overseas that represent the Philippines in key markets across Asia-Pacific, Europe, Middle East, and the Americas, supported by a Coordinating Office in Manila. The FTSC is tasked to promote the Philippines’ trade and investment interests and pursue the priorities of the Department of the Trade Industry. Despite the ongoing health crisis, our Posts have stepped up to the challenge to fulfill their vital mandates in investment promotion, export promotion, trade policy, and commercial intelligence.

“October is Consumer Welfare Month”: DTI lines up activities in celebration of CWM

The Department of Trade and Industry, through its Consumer Protection Group (DTI-CPG), spearheads the annual celebration of the Consumer Welfare Month (CWM) this October with various activities lined up starting on 01 October.

“Digital Consumers: The New Normal” is this year’s theme, and it highlights the government’s continued consumer protection programs in today’s heightened utilization of electronic commerce.

“We encourage everyone to join us in celebrating Consumer Welfare Month by participating in our virtual activities and assisting us share DTI’s programs for the consumers,” says DTI Consumer Protection Group Undersecretary Ruth B. Castelo.

To kick-off the month-long celebration, the Consumer Policy and Advocacy Bureau (CPAB) will hold another virtual dance and fitness class, dubbed as “Consumer Welfare Zumba” on 01 October 2021. The CPAB enlisted the help of the National Telecommunications Commission to broadcast information relative to the CWM celebration via Public Service Announcements through text message to further promote DTI’s CWM activities.

Furthermore, the DTI continues to hold throughout the month in the NCR the Presyong Risonable Dapat Program – Frozen Meat Edition and the CWM Diskwento Caravan. In addition, from 19-21 October 2021, the CPAB plans to hold a CWM Online Sale, where discounted goods will be available to the public via participating manufacturers’ websites.

Other activities include the conduct 4th Consumer Youth e-Forum on 20 October to equip the youth with the knowledge to understand and maximize the opportunities in e-Commerce and enable them with the tools to help them overcome the challenges and risks they may face as young entrepreneurs and consumers.

The Bagwis E-Convention will also be conducted on 22 October during which the CPAB will recognize the 2020-2021 Bagwis Awardees for the Bronze, Silver, or Gold levels for NCR and will present the proposed revisions on the Bagwis Award Implementing Guidelines. This year, the CPAB is also set to organize a Debate E-Tournament among college students on 24 October 2021.

A key activity is the National Conference for the ASEAN Peer Review on Consumer Protection in the Philippines which will take place on 18 October 2021 to present the key findings of the External Peer Review Report on the country’s consumer policy formulation, advocacy, monitoring and enforcement, and redress. The Philippines is the first country in ASEAN to undertake peer review. Another key event is the Consumer E-Congress on 29 October 2021, which aims to bring together consumer champions and stakeholders from across the country for a virtual discussion of topics that will raise awareness on consumer protection in the digital economy.

Meanwhile, aside from the CWM Celebration, the Bureau of Philippine Standards (BPS)

is set to observe the 47th National Standards Week from 08-14 October 2021 with the theme, “Shared Vision for a Better World.”

On 11 October 2021, the BPS will have its “Kapihan sa BPS,” an interactive question-and-answer session with the Standards Conformity Division Heads. Other activities include the BPS Testing Laboratory Tour via Zoom and the annual Standards Stakeholders Conference, among others.

Meanwhile the Fair Trade Enforcement Bureau is set to hold an IREGIS E-Rollout and E-TANONG/E-SAGOT @ DTI during the last week of October 2021.

For more information about the 2021 CWM activities, everyone is enjoined to visit the DTI Consumer Care and Konsyumer Atbp (KATBP) Facebook pages or send an email to CPAB@dti.gov.ph.

DTI to Strengthen Economic Cooperation with Pakistan

MANILA—Department of Trade and Industry (DTI) Secretary Ramon Lopez led discussions on further economic cooperation with Pakistan during the virtual courtesy call of Ambassador-Designate Imitiaz Ahmad Kasi on 14 May 2021. The meeting tackled opportunities to enhance trade between the two countries, especially on agricultural products such as rice and potatoes. Possible cooperation arrangement to support the country’s garments export capacity was also discussed.

Ambassador Kasi also stressed Pakistan’s comparative advantage in pharmaceutical manufacturing, and the two officials considered possible collaborations in local pharmaceutical manufacturing investment in the country, taking into account market opportunities in this time of pandemic.

For his part, Sec. Lopez noted Pakistan’s interest to know more about the Regional Comprehensive Economic Partnership (RCEP) and highlighted how Pakistan can collaborate with the Philippines to access the RCEP region. “Once RCEP Agreement entered into force, even non-RCEP countries like Pakistan can take advantage of the Agreement by considering the Philippines as a manufacturing hub for products of interest in the region,” the trade chief said.

DTI Rolls Out Online Import Permit Application

The Import Regulation Division (IRD) of the Fair Trade Enforcement Bureau (FTEB) rolled out its online processing of applications for Certificate of Authority to Import (CAI) through the DTI Integrated Registration and Information Systems otherwise known as IREGIS. The online portal, which can be accessed at iregis.dti.gov.ph facilitates the processing of FTEB frontline services including the application for import permit of used vehicles.

The online application and issuance of CAI is in line with the government initiative on Ease of Doing Business and Government Service Act of 2018, which aims to streamline frontline procedures and to reduce the processing time on securing government permits and licenses.

“The automation of our processes is intended to modernize not only our office but private business enterprises as well, and we are hopeful that this move will contribute to a more seamless and simplified system in the future,” said Consumer Protection Group (CPG) Undersecretary Ruth Castelo.

“Our clients can now secure their import permits at the comfort of their homes since everything can now be done through IREGIS-- from filing of application, online payment, evaluation and approval down to releasing of certificates,” FTEB Director Ronnel Abrenica stated.

Further, DTI incorporated a technical support chat box in the IREGIS applicant dashboard that is available from 8AM to 5PM on weekdays to assist the clients in navigating the recently launched online portal.

For more information and questions about online import permit application, you may send an email to fteb_ird@dti.gov.ph or may call Consumer Care Hotline at DTI (1-384).

DTI issues Memorandum Circular on gradual reopening of sectors, as allowed by IATF under GCQ, MGCQ areas

MANILA—The Department of Trade and Industry (DTI) issued on 28 February 2021 Memorandum Circular (MC) No. 21-08, s. 2021 prescribing the recategorization of certain business activities from Category IV to Category III, which gradually reopens the operations of driving schools, traditional cinemas, museums, and tourist attractions, among others, under the General Community Quarantine (GCQ), pursuant to the earlier approval granted by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID).

“Following the earlier agreement at the IATF, DTI issued the circular that will guide the implementation of a safe and gradual reopening of more businesses and economic activities. This is part of our mandate to ensure that as more businesses reopen to provide more jobs and sources of income for our countrymen, the strict health protocols are enforced," said Trade Secretary Ramon Lopez.

With the reopening and the recategorization of businesses, the MC stipulated the maximum operational capacity and recognized the oversight function of the appropriate regulatory agency and the local government units (LGUs) where they may be located. Thus, it allows the appropriate agency, the LGUs, and the Department of Health (DOH) to develop additional guidelines that will ensure an effective health protocol system as these sectors are gradually reopened.

"There is shared objective in restoring economic activities while keeping the health protocol fully enforced, to prevent unnecessary surge of COVID-19 cases. This has been the working formula in previous reopening of economic sectors to bring back jobs,” the trade chief said.

Under the MC, Libraries, Museums, Cultural Centers, Meetings and Conventions, and Limited Tourist attractions and Video games arcades are allowed to operate at a maximum of 50% under GCQ and 75% under Modified GCQ (MGCQ). Meanwhile, Traditional Cinemas are allowed to operate only at a maximum of 25% in GCQ and 50% in MGCQ areas, subject to additional implementing guidelines from DOH and the LGUs.

Limited Social Events will be restricted to 30% in GCQ and 50% in MGCQ areas. Both categories must be held at accredited establishments of the Department of Tourism (DOT) and are subject to DTI-DOT Joint MC 2021-001 or the Amended Guidelines Governing the Conduct of Essential Meetings and Social Events in Areas Under GCQ.

The full list of establishments can be viewed through this link: http://bit.ly/DTI_MC21-08

The MC also states that the expansion of the aforementioned business establishments or activities under Category IV in GCQ and MGCQ areas are subject to compliance with the minimum public health and safety standards and protocols and relevant issuances released by the DTI, DOH, DOT, and Department of Labor and Employment (DOLE).

To ensure the compliance of business establishments, the DTI, through the Fair Trade Enforcement Bureau (FTEB) and Regional or Provincial Offices, will continue its strict compliance monitoring through its post-audit mechanism. Inspection by DOLE, DOH, and the LGU’s Health Office may also be conducted at any time. In addition, the general public may also course their feedback and complaints through the DTI Consumer Care Hotline 1-384 or 1-DTI.

“The past year proved to be very challenging as we were faced with unprecedented situations that demanded extraordinary responses, but it was also a time for growth and collaboration. Through the continued partnership of government agencies and with the strict adherence of our countrymen to health and safety protocols, we will continue to see signs of recovery," Sec. Lopez said.

"As we move forward this year, we will continue this momentum and adopt a whole-of-nation and whole-of-society approach towards safely and gradually reopening our economy."

The Circular will take effect on 05 March 2021, upon its publication and filing with the University of the Philippines Law Center.

DTI-BPS Now Requires Product Certification for Plywood

The Department of Trade and Industry’s Bureau of Philippine Standards (DTI-BPS) has recently included plywood under the list of products required to undergo its Product Certification Schemes through the issuance of DTI Department Administrative Order (DAO) No. 20-06, series of 2020 on 15 October 2020. With the issuance of DAO No. 20-06, the new technical regulation concerning the mandatory product certification of locally manufactured or imported plywood, manufacturers of plywood are now required to secure the Philippine Standard (PS) Quality Certification Mark License before they can sell or distribute their products to the market. Importers, on the other hand, are now required to acquire their products from foreign manufacturers holding valid PS Licenses only. This technical regulation aims to strictly ensure compliance to specified quality requirements for plywood being sold in the Philippine market.

Plywood is one of the most commonly used construction materials in the country. Many Filipino homes have facades, exterior and interior walls made with plywood. Equipment in construction and/or manufacturing industries also utilize plywood as a means to support loads or products. Moreover, marine ports, docks, vessels, and boats use plywood for sturdier built since shipments of high masses are often transported through sea freights for lower cost. Plywood has become the go-to component in every construction activity due to their usage versatility, durability, and lower cost. Their ready availability in the market makes them essential to every Filipino household.

Pursuant also to DAO No. 20-06, s. 2020, imported or locally manufactured plywood products shall now have the minimum required markings as follows:

• Correct and registered trade name or brand name;
• Duly registered trademark;
• Duly registered Business Name and address of importer and manufacturer (if imported) or duly registered Business Name and address of manufacturer (if locally manufactured);
• Country of Origin;
• Type of plywood (Softwood or Hardwood);
• Bonding Class (1, 2 or 3);
• Thickness, mm;
• Formaldehyde Emission "FE" and the star rating (In reference to PNS 2103:2017, Formaldehyde Emissions - Specifications or its future amendments);
• Lot/Batch Number or Serial Number;
• PS Mark with License Number

These markings are not only for traceability and verification purposes but will also serve as guide for consumers in ensuring that the plywood products they purchase comply with the quality and safety requirements of the DTI-BPS.

“Through this technical regulation, the DTI-BPS aims to promote safer working and living environment for everyone.”, underscores DTI-BPS Director, Neil P. Catajay. “Knowing that we all have the same vision, we are confident that the wood and construction industry will cooperate with the implementation of this technical regulation to combat the proliferation of substandard plywood in the Philippine Market.” Director Catajay states.

DAO No. 20-06, series of 2020, and other issuances may be downloaded from the BPS Standards and Conformance Portal, www.bps.dti.gov.ph (direct link: https://bit.ly/BPSissuances).

For more updates and information on standards, technical regulations, and conformity assessment procedures (STRACAP), please visit the DTI – BPS portal: www.bps.dti.gov.ph. Emails and messages may also be sent to our official Facebook page “DTI Bureau of Philippine Standards” or through bps@dti.gov.ph.

Aspiring Pharmacist and Retrenched Training Specialist Receive Livelihood Kits to Re-invent in the New Normal

CEBU CITY – Two hopeful entrepreneurs receive 6,000 worth of livelihood starter kits from DTI Cebu after graduating the 3A BOOTCAMP: Accept, Adapt and Act program by the DTI Philippine Trade Training Center in partnership with the Angelpreneurs and LEADMORE.

Chancel Dorothy Franciso graduated Pharmacy a week prior the lockdown was implemented in March 2020. During the pandemic, she waited with uncertainties to include the board exams.

On the other hand, Carla Dalagan was displaced from working on a food franchise corporation and was unemployed for ten months.

Both, in support to their families, applied for the unique virtual training program by DTI.

The 3A Bootcamp is intended for working students, housewives, displaced employees and teachers, and OFWs (who have recently returned from abroad) who are interested to start a business to replace lost family income.

Participants are aimed to present a ‘mockup product’ or product concept test business model-market/product validation. Critiquing will be done to improve the plan and other aspects of setting up the new business especially in light of the pandemic and. digitalization. This will help them find opportunities based on their skills so they can re-invent themselves in the new normal.

The learning sessions are also designed with practical approach and delivered by actual business practitioners. The training being done online, Francisco and Dalagan said to have championed it despite the troubles with internet connection and the budget for load allocation.

“Thankful ka-ayo ko sa mga mentors kay patient sila namo, online baya siya, so lisud siya,” [I am thankful to the mentors for their patience since the training is done online, and it's challenging] Dalagan explained. She plan to start an ice candy business, with fresh milk as main ingredient.

“This boot camp and the mentors have helped me augment the knowledge I have thru the few business units I had in pharmacy school. The mentors presented us the bird’s eye view of what to expect in entrepreneurship,” Francisco added. The business she pitched during the program is the production of sugar hair removal wax.

Francisco and Dalagan are among the thirty-one (31) qualified scholars out of almost eighty (80) participants from the country qualified for the completion of the program. The mentoring program ran 7 sessions from January to February 2021.

Both received a certification and livelihood kits from DTI Cebu OIC-Provincial Director Esperanza Melgar and SDD Chief Marivic Aguilar.

“This program primarily aims to instill a resilient mindset that can accept and adapt to the new normal and pivot out of unemployment, act with an entrepreneurial mindset, and be able to set-up a business. Both of them are able to do that,” Dir. Melgar asserted.

DTI Cebu, through its Negosyo Centers, shall provide the beneficiaries with Entrepreneurship Development Seminars, facilitate Business Name and Barangay Micro Business Enterprise (BMBE) Registrations, and assist in other appropriate Business Development Services to improve their businesses.

PH Exports’ Slowdown Decelerate in May

Still reeling from the impact of Covid-19, Philippine merchandise exports in May 2020 amounted to USD 3.99B, an increase of more than USD 1B from April’s USD 2.83B—the lowest recorded value in since the global financial crisis in 2018.

“Since the community quarantines were declared in mid-March, we can see its full effects on April figures. We are glad to see that businesses are reopening and that Philippine products are slowly making their way back to the global market,” said DTI Undersecretary for Trade Promotions Abdulgani Macatoman.

Understandably, May 2020 exports were still 35.6% less than those of the same month last year, but this is better compared to the 50% decline for April 2020. The latest figures brought the total exports to USD22.6B year-to-date (YTD), 20.7% less than the USD28.4B from January to May 2019.

Consistent with the long-standing structure of merchandise exports, electronics accounted for over half of the country’s total merchandise exports (55.3%) YTD, while non-electronics made up the remaining 44.7%.

The top export product remained to be semiconductors, with a 42.7% share of all exports and 77.2% share of electronics exports YTD. However, semiconductor exports were down 14% to USD9.3B in January to May 2020 from USD11.3B in the same period in 2019.

Compared to May 2019, the biggest decliner in May 2020 was from ignition wiring set and other wiring sets used in vehicles, aircraft and ships (70.4%), as land and sea travel grind to a halt worldwide. Other manufactured goods and chemicals also experienced steep falls in sales at 50.6% and 37.2% respectively.

On the other hand, exports of textile yarns and fabrics nearly doubled, with a 90% growth in May 2020—which can be attributed in part to the increasing demand in personal protective equipment (PPE) and the Confederation of Wearable Exporters of the Philippines’ (CONWEP) efforts to promote their sector.

In terms of export markets, 87% of this year’s exports went to the top 10 markets, namely China and Hong Kong, Japan, USA, Singapore, Thailand, South Korea, Germany, Taiwan, the Netherlands, and Malaysia.

Philippine exports are also the hardest hit both for year-on-year (YOY) and YTD when compared with 10 other Asian economies. For May 2020, all 11 economies had negative growth and for YTD, only Singapore and Taiwan managed to grow their merchandise exports at 4.1% and 1.4%, respectively.

“The DTI-Export Marketing Bureau is assisting exporters to thrive in the new normal. Aside from educational webinars, we have tapped eCommerce platform eCFULFILL to get MSME exporters on global marketplaces like Amazon and eBay,” said DTI-Export Marketing Bureau Director Senen Perlada.

“We are also urging exporters to register in the European Union-Registered Exporter System (EU-REX) for them to begin or continue exporting to the EU. There are now 309 registered exporters as of 8 July 2020,” he continued.

According to the World Trade Organization (WTO), world merchandise is seen to fall by between 13% and 32% this year due to the Covid-19 pandemic. Recovery is projected in 2021, depending on the pandemic duration and the effectiveness of global economies’ policy response.

Oxford Economics sees a negative 12.5% growth rate for exports of PH goods and services in 2020. It also projects a moderate recovery starting June as economic activity slowly picks up following the easing of restrictions in major cities of the country except for Cebu City. However, the continued weak global demand for the rest of the year dampens the outlook for PH exports.

PH Exports Grow by 5.1% in Q3 2019

MAKATI – Amidst the backdrop of global uncertainty stemming from the US-China trade war, Philippine exports of goods and services remained resilient, as it expanded by 5.1% year-on-year (yoy) to US$ 25.0 billion in the 3rd quarter (Q3) of 2019. This export growth was even an improvement compared to its second quarter (Q2) 2019 yoy rate of 4.3%.

"President Rodrigo Duterte's directive of being a friend to all nations allowed the Philippines to grow our exports despite the ongoing US-China trade war, which may have caused the decline in exports of other countries." said Trade Secretary Ramon Lopez.

Sec. Lopez also said that the Philippines is pushing for the conclusion of free trade agreements like the Regional Comprehensive Economic Partnership (RCEP) and the Philippine-Korea Free Trade Agreement in 2020 to expand market access for manufactured goods as well as agri-based products.

He shared that the Philippines is also working on a free trade agreement with the United Arab Emirates (UAE) and is exploring new export markets in consumer-rich Africa. The trade chief advised that export marketing should be in tandem with increasing the supply to meet the demand of foreign markets.

The Q3 export growth performance was strengthened by an 8.6% yoy increase in services exports, which totaled US$ 11.1 billion for the quarter. It was also backed by the 2.4% yoy uptick in the goods exports valued at US$ 13.9 billion.

Growth in services exports was boosted by a double-digit increase in exports of travel services due to bigger international tourist arrivals. Aside from travel services, Information Technology and Business Process Management (IT-BPM) also contributed to the services exports’ good showing.

On the other hand, exports of electronics products, bananas, and forestry and mineral products contributed to the moderate increase in the exports of goods.

Goods and services’ exports climbed 3.7% yoy to US$ 70.4 billion on a cumulative basis spanning January to September 2019. Services exports rose by 7.7% yoy to US$ 30.6 billion driven by travel services as well as technical, trade-related, and other business services. Meanwhile, goods exports increased by 0.7% yoy to US$ 39.8 billion primarily because of fruits and vegetables.