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).

PH Gets Chinese Companies’ Investment Pledges worth USD 9.8B

The Department of Trade and Industry (DTI) welcomed USD 9.8 billion-worth of investment intentions from Chinese companies that will cover the construction, electronics, agriculture, tourism, and pharmaceutical sectors, and will provide an estimated 10,800 employment opportunities.

“Investments are important in bringing more job opportunities for all Filipinos. Our bilateral cooperation with China continues to deepen and strengthen. We have agreed to discuss cooperation plans for the next five or even up to 10 years to move forward in specific fields,” said President Rodrigo Roa Duterte.

“As one of the world’s top investment destinations, the Philippines enjoys the confidence of foreign direct investors. And due to our enhanced bilateral and trade relations with China, Chinese companies have increasingly expressed interest in investing in our country,” added Trade Secretary Ramon Lopez.

The President witnessed the signing of nine Letters of Intent (LOI) from the following companies: Shanghai GeoHarbour Group, Jovo Group Co. Ltd. Guangdong, Zhongfa Group, Haocheng Group, China Green Agriculture Group, East-Cloud Biz Travel Ltd., China National Heavy Machinery Corporation, Sino BMG, as well as Shanghai Shinehigh Biotechnology Ltd. Co. and Zhejiang Dongyang Jinxin Chemical Co. Ltd. The signings were held at the sidelines of the Boao Forum 2018 held in Boao, China on 10 April.

The total approved investments from China grew by 53.61% from Php 1.52 billion in 2016 to Php 2.33 billion in 2017. Industries that played a big role in this breakthrough include manufacturing, electricity, service, and finance.

In 2017, China ranked as PH’s top trading partner, 4th largest export market, and top import supplier. PH exports to China grew by 9.73% due to the increase in exports of digital monolithic integrated circuits, cathodes of refined copper, and other fixed capacitators.

“We continue to improve the Philippine business environment and soon, we will be adopting new domestic policies and regulations to promote ease of doing business and competitiveness in various industries,” Sec. Lopez said.

Meanwhile, DTI is strengthening its presence in China by activating three offices and deployment of commercial officers in Beijing, Shanghai, and Guangzhou.

The Department will also lead the Philippine delegation to the inaugural edition of the China International Import Exposition (CIIE) on November. This major event is organized by the Chinese government to facilitate increase in imports from partner countries and contribute to balancing bilateral trade. The Philippine delegation will consist of major Filipino exporters and will occupy 100 booths in the Enterprise Zone.

*This is Press Release

DTI-DOST to expand MSME marketing capabilities through OneSTore.ph

The Department of Trade and Industry (DTI) will tie up with the Department of Science and Technology (DOST) to help micro, small and medium enterprises (MSMEs) expand their market and reach clients online with the OneSTore.ph.

“MSMEs are the backbone of the Philippine economy. And as part of President Rodrigo Duterte’s whole-of-government approach to assist MSMEs, we are teaming up with DOST to impact the lives of more Filipino entrepreneurs,” said DTI Secretary Ramon M. Lopez.

The OneSTore.ph is a first government e-commerce platform (Business–to-Customer and Business-to-Business platform) dedicated to marketing high-quality Filipino products of MSMEs through the worldwide web by “bringing quality products at Filipino doorsteps.”

This comes as DTI intensifies marketing capabilities of MSMEs to help them reach the mainstream market.

Under the OneSTore.ph agreement, DTI will Promote the oneSTore.ph to MSMEs through Negosyo Centers as a platform where they can market their products on-line.

At the same time, DTI will make Negosyo Centers accessible to clients of DOST and allow clients to display and dispatch their products with its payment and logistic partners in One Town One Product (OTOP) Philippines HubStores, subject to availability of space and to DTI priorities and promote oneSTore and provide signage for the spaces provided for oneSTore.ph and oneSTore hub in every OTOP Store identified as co-branded hub, among others.

The One Town, One Product (OTOP) Philippines is DTI’s collaborative program with national government agencies and local government units  as a customized intervention to level up the products of various localities and drive inclusive local economic growth.

DOST, on the other hand, will develop and maintain oneSTore.ph where its accredited Regional Hubs and MSMEs may sell products and services to its clients and engage with payment and logistics partners and provide better oneSTore.ph services to its accredited Regional Hubs, MSMEs and its partner agencies.

DOST will also Provide priority to jointly identified OTOP products for product development initiatives including improvements in packaging and labeling, subsidy or discounts in testing fees, equipment support such as the Small Enterprise Technology Upgrading Program (SETUP), and strengthen research and development efforts.

*This is Press Release

Philippines Successfully Completes its 5th Trade Policy Review in the World Trade Organization

Member  economies  of  the  World  Trade  Organization  (WTO)  praised  the Philippines’ economic performance as it completes its 5th Trade Policy Review in the World Trade Organization on 26 and 28 March 2018 in Geneva, Switzerland. The Review evaluates the country’s trade policy regime from 2012 to 2017.

DTI Undersecretary Ceferino S.  Rodolfo  headed  the  Philippine  delegation, with Undersecretary  for  International  Economic Relations  and  Philippine  Ambassador-Designate  to  the  WTO  Manuel  A.J.  Teehankee heading the DFA contingent. Undersecretary Rodolfo highlighted the Philippines economic  performance  during the review period and the government’s initiatives that were designed to achieve the goals of zero poverty and inclusive growth and to deepen policy reforms that ensure a more open economy, and an enabling business environment, devoid of any red tape. He also emphasized  the  work  done  by  the  country  on its  MSME  advocacies  and  FTA engagements.

Ambassador Juan Carlos  Gonzales,  Colombia’s  Permanent  Representative  and Chairperson of the Trade Policy Review Body of the WTO, recognized that the Review offered an excellent opportunity for other WTO Members to deepen their understanding of the trade, economic, and investment policies of the Philippines, pointing out that more than 330 questions from 22 Members were submitted to the Philippines during the review process. Ambassador Gonzales noted that:  Members  praised  the  Philippines  for  its strong  commitment  to  preserve  and  strengthen the  multilateral  trading  system,  and  its active  role  to  advance  the negotiations  in  areas such  as  fisheries  subsidies, ...Micro, Small and Medium Enterprises (MSMEs).

The WTO Report highlighted the Philippines 6.6% six-year average GDP growth from 2012 to 2017 and expressed optimism with President Duterte’s 10-point socio-economic agenda. In 2017, the country’s total trade amounted to USD 142 billion, up by 10% from 2016 and by 35% if compared in 2012. Quite significantly, in 2015, poverty incidence was reported at an all time low of 21.6%, as compared to 25.2% in 2012at the beginning of the review period.

Other critical reforms that were pursued in the country during the Review period includes the Customs Modernization and Tariff Act, the Philippine Competition Act and the creation of  the Philippine  Competition  Commission,  the  liberalization  of  several  key economic sectors, the  amendment of the Cabotage Principle of  the  1957  Tariff  and Customs  Code  through the  Foreign  Ships Co-Loading Act, the lowering of  tariff

*This is Press Release

DTI, DOF Explain TRAIN Package 2 to Japanese Investors

In efforts to enhance trade and investment relations between the Philippines (PH) and Japan (JP), Department of Trade and Industry (DTI) Secretary Ramon Lopez together with officials of the Department of Finance (DOF) addressed the issues and clarified the concerns raised by Japanese investors on the Tax Reform Acceleration and Inclusion (TRAIN) Package 2, which rationalizes tax incentives to investments.

“We would like to highlight the aspects of TRAIN Package 2 that would benefit new and existing investors. While Japan is our number one source of investments, there are still a large number of Japanese investors who have not located in the Philippines. The TRAIN Package 2 provides us with the mechanisms both to encourage existing investors to further expand their business, and to attract new investors into the country,” said Sec. Lopez.     

During the discussion, Japanese investors expressed their concerns on the new tax incentives for new and existing investors as well as the preferential corporate income tax.

According to Lopez, the proposed legislation is not meant to remove incentives, but in fact recognizes the important role of incentives and the need to make them more responsive, relevant and effective, i.e. they should conform to the principles of being performance-based, time-bound, focused, and transparent. 

Board of Investments (BOI) Managing Head and DTI Undersecretary Ceferino Rodolfo explained further that the second tax reform package will in fact provide better incentives.

“First, investors will no longer be limited to just the Income Tax Holiday (ITH) and the 5% tax on Gross Income Earned (GIE)—but will now be able to choose other incentives that may be more relevant, including long enough Net Operating Loss Carry-over, accelerated depreciation, and double-deduction of certain expenses critical to upgrading competitiveness such as R&D, training, and others,” said Usec. Rodolfo.

“Equally important, the TRAIN Package will remove the nationality bias as well as the export bias of incentives. This means that as long as an activity is listed under the Strategic Investments Priorities Plan (SIPP), this will be eligible for incentives regardless of citizenship of owners or the markets they will serve. For Japanese companies, they can receive incentives even if they will sell to the domestic market,” Usec. Rodolfo added.

Meanwhile, DOF Director Juvy Danofrata noted the concerns of investors on the sunset provisions for existing tax incentives. Danofrata said, “While transition mechanisms will be provided including replacing the 5% GIE with a reduced 15% corporate net income tax, we are open to suggestions on how we can design better transitions, as long as these will comply with the basic principles of being time-bound, performance-based, focused, and transparent.”

The discussion was part of the agenda of the 10th Philippine-Japan Economic Partnership Agreement (PJEPA) Sub-Committee on the Improvement of Business Environment (SC-IBE) Meeting on 22 March co-chaired by Sec. Lopez and Japanese Ambassador Koji Haneda. Officials from the Philippine Board of Investments, Philippine Contractors Accreditation Board, Construction Industry Authority of the Philippines, National Economic Development Authority,  Philippine Economic Zone Authority, Bangko Sentral ng Pilipinas, Department of Public Works and Highways, Department of Finance, Department of Labor and Employment, Manila International Airport Authority, Metro Manila Development Authority, Bureau of Internal Revenue, and Subic Bay Metropolitan Authority were also present during the meeting. 

APBC Welcomes PH Delegation to Australia

The Australia-Philippines Business Council (APBC) welcomed the Philippine delegation to Australia led by Department of Trade and Industry Secretary Ramon Lopez and Department of Foreign Affairs Secretary Allan Peter Cayetano through a welcome reception participated in by Australian and Philippine business leaders on 16 March 2018 in Barangaroo, Sydney, Australia.

Secretary Cayetano and Secretary Lopez witnessed the signing of Letters of Intent (LOIs) to invest in the Philippines from different private sector leaders/firms planning to maximize the Philippines’ growing economy. Investment includes setting up of an assembly plant for GPS tracking devices, development of a US$10 million biomass power plant, and construction of a US$30 million hotel and residential place in Cebu.

Australia’s Macquarie Bank Chairman Peter Warne, Chairman of TMIP Holdings David King, ANZ Philippines CEO Anna Green, AUSTAL CEO David Singleton were among the Australian business executives present. Philippine business leaders like Mr. Jose Concepcion III and SM Investment’s Ms. Teresita Sy-Coson were among the Filipino executives in attendance.

In his address to the business community, Secretary Lopez highlighted government’s support programs for micro, small, and medium-sized enterprises (MSMEs) and its initiatives that ensure the growth, development, and competitiveness of these enterprises. He shared DTI’s Negosyo Centers, Pondo Para sa Pagbabago (P3), Shared Service Facility (SSF), market access initiatives that provide permanent space for MSME products, and online digital space programs, which are summed up in the DTI’s 7M strategy on MSMEs.

Secretary Lopez shared that increasing the trade base between Australia and the Philippines should be based on complementarity of industries and sectors where growth will be highly recorded. Some examples he gave were on agri-based commodities, ship-building, construction (Build, Build, Build), and IT and Business Process Management Services (IT-BPM).

In his closing remarks, Secretary Lopez shared the Philippines’ economic breakout, supported by growth in GDP, manufacturing, consumer confidence, among others. He also emphasized the enhancement of domestic policies, with new regulations adopted to ensure competitiveness of businesses and industries.

Secretary Lopez also cited the recently issued tax law (TRAIN), where individuals are expected to have bigger take-home pay. With its implementation, it is expected to build a wider consumer base with higher buying capacity leading to greater opportunities for businesses. Secretary Lopez reiterated that the Philippines is open for business, with DTI’s core task of bringing more job-generating opportunities for all Filipinos.

During the event, APBC President Ed Alcordo expressed APBC’s gratitude for the Philippine government's commitment in strengthening bilateral ties between Australia and the Philippines where foreign and economic relations have grown through 70 years of friendship, with a comprehensive partnership agreement signed in 2015.

At the end of the welcome reception, a meeting attended by Secretary Lopez, DFA Secretary Cayetano and AUSTAL CEO David Singleton was held.  Mr. Singleton shared AUSTAL’s shipyard operations in Cebu and its plan to expand its operations in the Philippines. AUSTAL makes fast, lightweight aluminum boats for civilian and military use. They are the sole foreign company supplying Aluminum-hulled ships to the United States Navy. Mr. Singleton shared that they make ships in the Philippines for export to customers in Germany, Australia and many other overseas clients who require high quality shipbuilding.

The business reception was organized by the Australia Philippines Business Council (APBC) and the Philippine Trade and Investment Center (PTIC) in Sydney.

Participants during the welcome reception hosted by APBC on 16 March 2018.

DFA Secretary Allan Peter Cayetano (standing, 5^th from left) with DTI Secretary Ramon Lopez (standing, 4^th from right) witnessing the signing of Letter of Intent (LOI) of the technology company Fleet Logic declaring the company’s plan to assemble Global Positioning System (GPS) Devices in the Philippines for export.

PH exports to EU grew by 31%

The Department of Trade and Industry (DTI) welcomed another milestone for Philippines (PH) and European Union (EU) trade relations as export products hit a 31% growth wherein EUR 2 billion-worth of PH products were exported through EU’s Generalised Scheme of Preferences Plus (GSP+).

“We are pleased to hear of the significant increase of our exports entering the EU market through the GSP+. This trade preference has benefitted several communities in the Philippines and opened opportunities for our Micro, Small, and Medium Enterprises (MSME). In the same manner, it has allowed our MSMEs to be more competitive in the local and foreign market,” said Trade Secretary Ramon Lopez.

The 31% of total PH merchandise exports to the EU amounted to USD 8.4 billion in 2017. This made the EU the third largest export partner of PH.

In the EU Trade Preferences Monitoring Report released on 19 January 2018, the robust trade relations between the two parties was highlighted with EUR 2 billion-worth of PH exports in 2017 benefitting from the GSP+ compared to the EUR 1.66 billion in 2016.

A major increase was in food and agriculture exports such as animal products, fish and related products, prepared food, and edible fruits. Likewise, automotive parts, leather, textile, and footwear showed significant growth.

Since the beginning of the preferential treatment in 2014, both PH and EU have enjoyed the mutual benefits of GSP+ by letting Filipino MSMEs participate in a bigger value chain and giving the EU market more options for their consumers.

Local communities can take advantage of the export opportunities under the GSP+, like fishermen in General Santos and coconut farmers in Lanao del Norte, as their products can join those by other MSMEs in contributing to EU’s dynamic market.

“We acknowledge that the GSP+ has been an important tool in making the country’s economic growth more inclusive. It also encourages investors to come in and provide job opportunities to many Filipinos,” Sec. Lopez said.

Meanwhile, dialogue on the expansion of the trade preference is ongoing between PH and EU, with both parties continuing to engage through relevant government agencies and other existing mechanisms.

*This is Press Release