edc lam 14th congress 041310
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assessment as to the significance of these
legislative advocacy initiatives in providing a
sound policy framework for export devel-
opment, as well as other areas of concern
which needs to be addressed.
Fourteenth (14th) Congress is an auspi-
cious period for the Export Develop-
ment Councils legislative advocacy,
having successfully sought approval of
the following legislations: Magna Carta
for MSMEs (RA No. 9501), Amend-
ments to Customs Brokers Act (RA No.
9853), and the RP Accession to the In-
ternational Convention on the Simplifi-
cation and Harmonization of Customs
Procedures, also known as Revised
Kyoto Convention (Senate Resolution
No. 220)
Also, the bill limiting the liability of ship-agents
in the tramp service, which was closely moni-
tored and participated by the EDC during the
13th Congress was already enacted into law
(RA No. 9515),
EDC likewise attended to Congress delibera-
tion of the following priority legislations
namely: Anti Smuggling Bill, Customs and
Tariff Modernization Bill, Philippine Maritime
Act and Fiscal Incentives Rationalization Bill,
which also significantly progressed both in
Senate & Congress
Succeeding sections further aims to provide
EDC achieves four in 14th Congress
14th Congress, End-of-the-Period Report
Networking Committee on Legislative Advocacy & Monitoring (NCLAM)Volume 1, Issue 1
EDC Legis lat ive Advocacy
Performance
The Inside StoryChapter 1: EDC Legislative Advocacy Milestones:
Where do the efforts lead?
Chapter 2: Policy & Legislative Advocacy Challenges
More &
expanded
financing...
(p.2)
Towards
Stronger
Customs
reform...
(p.3)
Updating
the EDA
Charter..
(p.6)
High
cost of
shipping
(p.7)
Thousand
of
legislative
proposals..
(p.8)
Prevented
anti-trade
facilitation
regulations...
(p.4)
Other
legislative
issues in
the pipe-
line..(p.8)
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Enactment of R.A. No. 9501envisions to make more financing available to
entrepreneurs as well as making it more accessible to smaller ones
Page 2
EDC Legis lat ive Advocacy Per formance
ensure that key provisions ofthe law will effectively be im-
plemented.
The said law expects to putforward competitiveness of RPexports, as 90% of the export-
ers are MSMEs.
Where do the efforts lead?
1) Towards exporters increased access to financing
tive modes of compliance andincreases penalties for non-compliance to ensure that the
money will be lent to MSMEs.
The law also strengthens theconcerned institutions to furtheraid in the effective implementa-tion of the law. MSMED Council,chaired by the Trade Secretary,ensured wide representation ofthe MSME sector: representingLuzon, Visayas and Mindanao.The law also facilitates additionalsources of funding, as ninetypercent (90%) of the penaltiescollected from administrativesanctions and others shall go toMSMED Council. The said institu-tion can also accept private sec-
tor donationsfor its activi-ties and op-erational
expenses.
To comple-ment the
growing de-mands forfinancing, thelaw furtherstrengthens
Republic Act No. 9501 also
known as Magna Carta for
Micro, Small and Medium
Enterprises (MSMEs) is one
of the first milestones in the
EDCs legislative advocacy in
14th Congress.
Principal amendment to the origi-nal law is the inclusion of microenterprises as qualified benefici-aries to the assistance and incen-tives provided by the said law. Italso increased the mandatoryallocation of all lending institu-tions for MSMEs by allocating atleast 8% of their loan portfolio tomicro and small businesses and2% to medium enterprises. Thelaw also eliminates banks alterna-
the Small Business & GuaranteeFinance Corp (SBCorp) by in-creasing its capitalization andexempting it from the salarystandardization law therebykeeping the institution equipped
in lending to MSMEs.
It also created a CongressionalOversight Committee on Micro,Small & Medium Enterprise De-velopment (COCMSMED) to
The enacted measures has just been approved. MagnaCarta for MSMEs has just turned one year old, whileCustoms Brokers Act Amendments and Senate Ratification ofRKC has just been approved few months ago. It is therefore
quite impossible yet to measure their benefits.
But reviewing their core messages will bring us to the pictureof what those legislations has aimed from the very start of its
conceptualization. It could reveal its significance of providing asound policy framework to export development. Hence, the
goal of this chapter.
esident Arroyo signing the copy of RA No. 9501, May 2008
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As a CP, the countryis also expected tocomplete the com-puterization of itsimport & exportdocumentation sys-tems and operations.These measures arecontained in theNational Strategy forRKC Accession,Compliance andImplementation, fullysupported by the
Export Development Council,under Resolution No. 6-2007.
Once the Instrument of Acces-sion (IA) and the Resolutioncontaining the Senate Concur-rence to RKC, are transmitted tothe World Customs Organiza-tion (WCO), the Philippines willbe the third member of the As-sociation of Southeast AsianNations (ASEAN) to accede tothe Convention, along with Viet-
nam and Malaysia.
Exporters reallowed to sign
export declarations
The country became more com-pliant to RKC even before ittechnically acceded last February2010, as President Arroyo signedinto law Republic Act No. 9853,amending the Customs
Brokers Act of 1994 (RA No.
9280) last December 15, 2009.
RA No. 9853 specifically amendsSection 27 of the old law, allow-ing exporters to sign exportdeclaration by themselves. How-ever, import entry must besigned importer/consignee/owner
together with a customs broker -all of which is entirely limited toCustoms Brokers under the oldlaw. The export industry wasadvocating its amendment sincethe 13th Congress to keep thecost of doing business competi-
tive.
Earlier on, Section 27 of RA 9280was identified among one of thelaws which needs to be amendedto become RKC compliant. Inthe international practice, asadopted by RKC prescribes thatany person having the right todispose of the goods shall be enti-
tled to act as declarant (Standard
3.6), and persons concerned shallhave the choice of transacting busi-
ness with the Customs either di-
rectly or by designating a third party
to act on their behalf (Standard
8.1)
RA 9853 also amends Section 29,allowing the business of customsbrokerage provided that it willhire the services of at least one
customs broker, and a minimumpaid-up capital of at least
P1,000,000.00.
Senate has finally concurred,under Resolution No. 220,
the Philippine Accession to
the International Convention
on the Simplification and
Harmonization of Customs
Procedures, also known as
the Revised Kyoto Conven-
tion (RKC), February 1, 2010.
RKC standards & recommendedpractices prescribes principles ofgood governance in CustomsOperations, primarily designed toincrease the Contracting Partys
trade efficiency & competitive-ness.
Senator Miriam Defensor-Santiago, the principal sponsor,expressed optimism that with theadoption of the rules by the Bu-reau of Customs (BOC) andother agencies involved in thecountrys international trade,foreign investors who have beenshying away from the country inprevious years may come back.She likewise said that with cus-
toms practices, forms and sys-tems at par with those practicedby our major trading partners,the Philippines will have an effec-tive tool in bolstering its export
and import trade.
Massive reforms are expectedwithin three-year period, as RPwill be required to align its exist-ing legislations to RKC. This in-cludes amendment of laws (theTariff and Customs Code) andother administrative issuances bythe BOC and other concerned
agencies. Accession to RKC willlikewise protect the country fromlegislations which are against
trade facilitation principles.\
Page 3
Volume 1 , I ssue 1
Under RKC, the country will be compelled to modernize the
Bureau of Customs to become more responsive to the global
trade.
2) Towards a more stronger Customs reforms,
& cost-efficient trading procedures
RKC is the fastest and most effective
way of declaring globally that trade &
investments are facilitated in the
Philippines & that the regulatory
environment favorably compare with
the best in the world (G.Parayno)Sen. Santiago, formally endorsing to the Senate its favorable
concurrence to RP Accession to RKC, in her sponsorship
speech last 27 January 2010
Some Advocacy Initiatives for
RKC Accession
DTI International Group (and BOC)wrote to SCFR Chair Sen. MiriamDefensor Santiago, reiterating sup-port to RP Accession to RKC, andrequested possible delivery of spon-sorship speech to commence ple-nary deliberations on the matterbe-fore end of 14th Congress(December 4, 2009).
EDC facilitated discussions with theFederation of Philippine Industries(FPI) to clarify its concerns on con-sistency of RP Accession to RKCvis--vis Senate Bills on Anti Smug-gling. Issues resolved (November13, 2009).
Representatives from DTI, EDC andPHILEXPORT conducted courtesyvisits with the Chief of Staffs of theSenator-members of the SCFR(October 2009).
EDC published primer on RP Acces-sion to RKC aimed to aid to theprocess of a well-informed decisionmaking of the Senators (August2009).
DTI-BETP provided technical assis-
tance to SCFR re level of signifi-cance of RP trade to RKC Contract-ing parties (CPs). Identified thatabout 84% of RP exports, 61% ofRP imports, and 71% of RP TotalTrade go to 59 RKC CPs in 2008(June 1, 2009).
EDC conducted RKC AdvocacyStrategy Workshop with DTI, BOC,DFA, PHILEXPORT, NCC, and otherstakeholders (March 26, 2009)
Conducted series of luncheon brief-ing with the Senator Chief of Staffsto facilitate awareness on RKC(May-June 2008)
Submitted to SCFR Chair a consoli-dated position of DTI, EDC, andNCC expressing full support to RPAccession to RKC (May 19, 2008).
Forged formal partnership/cooperative agreements betweenand among BOC, EDC, NCC &PCCI on RKC Advocacy thru aMemorandum of Understanding(April 16, 2008).
EDC issued Resolution No. 6-2007
expressing full support to RP Acces-sion to RKC (March 23, 2007).
Conducted gap analysis on existinglegislations vis--vis RKC standardsto access RPs level of compliance &identify applicability of RKC to RPsetting (2006)
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Many of the laws being filed in Congress have sincere and noble objectives. However, some of them uninten-
tionally pose negative effects in advancing the development of RP exports. The EDC NCLAM proactively par-
ticipated the deliberation of the following legislations to ensure that its provisions will be aligned with the prin-
ciples of trade facilitation.
Anti Smuggling Bill
Page 4
EDC Legis lat ive Advocacy Per formance
Customs Bonded warehousing, an internationally accepted prac-
tice, was allegedly used as vehicle for smuggling and was proposed
to be abolished in various bills.
3) Pursued Common Good
Prevented enactment of anti-trade facilitation regulations
is still pending with the Com-mittee on Ways and Means.
If left unapproved, proposed
amendments may be consoli-
dated to the proposed Cus-
toms & Tariff Modernization
Act, which overhauls the ex-
isting TCCP in the next Con-
gress to align with interna-
tional standards, according to
the Senate Tax Study & Re-
search Office (STSRO)
especially in assisting in the im-
portations of our small export-
ers, as well as the continued use
of surety bond as a cost-effective
guarantee alternative. In ex-
change of its effective phase out,
stringent regulations were im-
posed to discourage smuggling
activities through the said venues.
EDC also advocated adherence
to 9-month (extendible to
3months) storage and 30-day
liquidation period in CBWs, as
prescribed under international
standards, and warehousing of
finished articles to fit in the spe-
cial requirements of manufactur-
ing exporters.
EDC likewise opposed the impo-
Recognizing its critical role
to competitiveness and the
unique attributes of the ex-
port industry, the Senate and
the House of Representa-
tives favored the Councils
advocacy to restore ware-
housing facilities and other
existing trade practices in
the Anti Smuggling Bill. The
said bill principally amends theTariff & Customs Code of the
Philippines (TCCP) to further
strengthen its provisions that will
institutionalize measures to curb
smuggling in the country.
In the series of hearings, EDC
emphasized the importance of
customs bonded warehousing
sition of additional/unnecessaryrequirements e.g. import quotas/
quantitative restrictions in ware-
housing (minimum access vol-
ume) additional export markings,
and submission of a stowage plan,
& certificate of landing from the
country of origin, upon arrival of
the vessel,
House of Representatives already
approved the bill in 3rd reading
last January 26, 2010. Meanwhile,
the counterpart bill in the Senate
To discourage smuggling, EDC strongly advocated for the adoption of policies
that will prescribe maximum use of information technology to reduce human
interface in customs transactions. This is principle is likewise enshrined under
RKC
harder way for exporters to
recover their losses whenever
their cargoes are damaged or
lost during transshipment.
RA No. 9515 updates thearchaic provisions of the
Code of Commerce of the
Philippines.
Enactment of RA No. 9515
puts a victorious end to the
pending advocacy of the
EDC in the 13th Congress to
only limit the said regula-
tions to those agents en-
gaged in the tramp ser-
vice. This is to prevent a
Liability of Ship Agents in the Tramp Service
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Volume 1 , I ssue 1
Rationalization of Fiscal Incentives
inevitably affect the competitive-ness of exports.
Upon careful study of the bills,
NCLAM found that some of the
incentives which was already
granted under specific laws could
inevitably be phased-out. This
however, is not the goal of the
bill, according to the Board of
Investments. It was only estab-
lished to provide a uniform set of
incentives to effect easier admini-
stration.
This unfortunately included the
incentive under the Export De-
velopment Act providing export-
ers exemption from PD 1853 or
the advanced payment of import
duties & taxes upon opening of
letter of credit or via other in-
struments.
Some incentives are not neces-
sarily for exports, (sector specific
& domestic oriented), but are
identified either as integral part
of the exports supply chain or
part of the EDCs revenue
streams.
The agri-fishery sector, whose
duty free importation of raw
materials and machineries
granted under Agriculture &
Fisheries Modernization Act was
included in the repealing clause
of the bills. The same happened
with the jewelry industry, which
removed its exemption from
paying excise tax, as provided
under Jewelery Act of 1998 (RA
8502), provided it will be utilized
for exports.
The latter set of incentives hasbeen reconsidered in the House
of Representatives (HB No.
5241), which was already ap-
proved on 3rd Reading, while thesame including the critical EDA in-
centives were restored under the
Senate Bill pending on 2nd Reading.
Exporters Redefined
Under the Export Development Act
and the Omnibus Incentives
Code of 1987, an exporter can
be granted incentives if they have
achieved at least 50% export
sales during the previous year.This was however increased to
70% in the proposed bills.
EDC opposed the measure since
some uncertainties in the situation of
the global market may warrant the
said requirement futile, especially to
small and medium exporters. This
was experienced in the recent global
economic crisis, where buyers have
been canceling orders. Hence forcing
exporters to resort to the domestic
market to resuscitate their busi-
nesses.
As a compromise,
BOI recommended in
the Senate Bill some
flexibilities, that for
some circumstance,
the Board may reduce
the 70% requirement,
but in no case it will
be lower than 50%.
Mr. Oscar Barrera,
chair of the NCLAM,
affirmed that incen-
tives should be used
as an instrumentality
for enterprises to
export more and ex-
pand. However, he
emphasized that other legislationsshould be in-place to encourage the
start-up and growth of small export-
ers.
Incentives to Boost Exports
Despite the pressing need of the
government to implement reve-
nue saving measures, Congress
recognized the need to provide
wider range of fiscal incentives to
boost export industry. Bills ap-
proved in both Houses granted
the following:
1) Income Tax Holidays
2) Reduced Income Tax of 15%
3) Net Operating Loss Carry-
over (NOLCO)
4) 5% Gross Income Earned
(GIE, in lieu of all national &
local taxes)
5) Accelerated Depreciation
6) Double deduction for train-
ing, and research & develop-
ment expenses
7) Tax & Duty Free Importa-
tion of Source Documents
8) Exemption from wharfage
dues & export tax
During public hearings, Prof.
Renato Reside, Professor of the
UP School of Economics ex-
plained to the legislators the
peculiarity of the export industryand the economic advantage of
implementing it. He explained
that exporters will be most sen-
sitive to incentives because they
compete on the basis of price in
the overseas markets.
A Call for a Cautious Process
of Harmonizing Incentives
Despite that Congress recog-
nized the special need of export
industry, several provisions might
Empirical & economic studies
indicate that among investors, the
exporters will be most sensitive to
incentives because they compete
on the basis of price in the
overseas markets.
Prof. Reside, UP School of Economics
Fiscal Incentives are necessary
to stimulate innovation. Incen-
tives increases their financial
capability to adopt new tech-
nologies, thereby increasing
their productivity.
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The Export Development Council
has formally initiated the move to
further strengthen its charter, RA
7844, or the Export Development
Act of 1994 (EDA) during the EDC
Strategic Workshop sponsored by the
TRTA2 and EU at the Holiday Inn, Clark,
Pampanga, 5-6 February 2010. In the said
meeting the Council identified the follow-
ing provisions of the laws, which needs
legislative action.
Sanctions
Section 7(f) of EDA provides the Council
the quasi judicial authority to sanction any
government agency, officer/employee and/
or private sector entity that impedes effi-
cient exportation of Philippine goods.
Page 6
Strengthening of Export Development Act of 1994, deemed necessary
Challenges at hand
Despite the efforts earlier mentioned,
there still much homework waiting to bedone, and challenges needed to overcome.
The following are the pre-identified key areasof exports concern which needs legislativeinterventions & particular attention by theCouncil.
EDC Legis lat ive Advocacy Per formance
However, it was found that the present ar-
chitecture of the act renders the provision
legally undoable. In 2003, DTI Office of Legal
Affairs (OLA) found that the said provision
of the law has no teeth; it lacks necessary
standards in the grant of quasi-judicial pow-
ers, and failed to specify sanctions that shall
be imposed by the EDC. Sanctions, however,
specified under Sec.21 of the law was found
to be independent from Sec.7(f)
The EDC tried to remedy the said gap
through a supplemental IRR but the Depart-
ment of Justice remains silent if the pro-
posed measure is sufficient to fill the said
gap. The EDC is therefore left with seeking
Congressional action to realize said author-
ity.
What is really important is the implementa-
tion of sanctions. Once we could able to
implement sanctions, everything will fall into
places determined said by Mr. Sergio Ortiz-
Luis, Jr. Vice Chair of the EDC.
Limiting Provisions
Mr. Jason Lao, Executive Director of DTI
Foreign Trade Service Corps likewise chal-
lenged the members on updating fundamen-
tal principle/provision in the law: the defini-tion of exporter.
Exporter is currently defined under law as a
person (natural or juridical) engaged directly
or indirectly in the production, manufacture,
or trade of products or services which earns
at least fifty (50%) of its normal operating
revenues from the sale of its products or ser-
vices abroad for foreign currency
You may have to rethink whether your prin-ciple should be on the economic activity in
itself, by acknowledging the process of export-
ing as to be covered under the legal frame-
work, rather than defining it in terms of reve-
nue. This matters of all legal framework that
support and assist the exporters (e.g. service
& incentive) as defined by it. If you dont fall in
that threshold, you are not recognized in this
law as an exporter raised by Dir. Lao.
Dir. Lao also raised the limiting provision onthe definition of services and its coverage.
Currently, services rendered by overseas
contract workers is not covered by the EDA
definition but is defined under mode 4 of
GATT to which the country is a signatory.
Services is likewise limited to information
technology services, construction services &
other as defined jointly by DOF and DTI.
Privatization
Discussions on pursuing any further the priva-tization of export promotion functions were
also raised since the legislature is no longer
determined to fund such exercise.
Mr. Sergio Ortiz-Luis, Jr., discusses the necessary meas-res to strengthen the Export Development Act, par-cularly the implementation of sanction provisions athe EDC Strategic Workshop, Holiday Inn, Clark, Pam-
anga, 5-6 February 2010.
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Volume 1 , I ssue 1
(SRNH) provided exporters as
well as domestic shippers an
alternative low cost mode of
sea transport.
To sustain Ro-Ro as an low
cost alternative, NCTL rec-
ommended that a policy
should be in place that will
declare all roads that are part
and will be part of the Road
RoRo Terminal System
(RRTS) as national roads. This
will prevent the collection by
LGUs of illegal toll fees, also
allow chasis Ro-Ro opera-
tions, standardization of RoRo
terminals and ships.
Earlier Initiatives
The said recommendations
were forwarded to DOTC,
who was tasked by President
Arroyo through Memorandum
Order No 244 to craft an
omnibus law on Maritime
Industry. This was finalized
under HB 6828 which remains
pending under House Com-
mittee on Transportation.
However, some of the pro-
posed policy reforms were
not included in the bill.
Lowering the cost of shippinghas been an advocacy of the
EDC for several years.
about by Philippine Ports Author-
itys (PPA) undesirable mix of
functions under PD 857: develop-
ment, maintenance, ownership,
operation, regulation of ports. It
can even share from cargo han-
dling revenues. In many cases,
conflict of interest arises in the
practice of these powers. These
regulatory and developmental
functions needs to be separated,
and transform PPA to purely aregulatory agency removing its
authority to share from cargo
handling revenues. Increase pri-
vate sector representation in
PPAs Board and inclusion of
other government stakeholders
like DA is recommended.
2) Implement Effective Competition
among Domestic Shipping Industries
Cost of inter-island shipping
in the country remains one
of the highest among theneighboring countries in the
ASEAN region. This was re-
vealed in the study done by the
Center for Research & Commu-
nication (CRC) last 2007.
Whereas, more than 90% of the
total merchandise trade is car-
ried through maritime transport,
addressing this high cost of ship-
ping will make RP exports of
goods more competitive in termsof production cost..
Structural & Legal
Impediments
These rising costs, however,
were found to be bound by unre-
sponsive charters of agencies
involved in the shipping industry.
The EDC Networking Commit-
tee on Transport & Logistics
identified the following policy
recommendations to address
these structural & legal impedi-
ments.
1) Separate Regulatory & Develop-
mental Functions of PPA
According to the NCTL, the
unstoppable rate increases in the
cargo handling fees are brought
Though RA 9295 (Domestic Ship-
ping Development Act of 2004)
effectively deregulated the do-
mestic shipping industry, it may
only set their own rates, if
effective competition is fos-
tered, according to Sec.8 of the
law. NCTL recommends that this
precondition be strictly observed,
and implemented through MA-
RINA who is empowered to ex-
ercise regulatory intervention onthe matter.
3) Attract New Players
Encouraging new players is neces-
sary to foster effective competi-
tion In order to attract registry
of foreign shipping lines, Increase
in foreign equity in overseas ship-
ping , which is currently limited to
40% under the Philippine Over-
seas Shipping DevelopmentAct, is recommended.
Amendment of Section
1009 of the Tariff & Cus-
toms Code will allow re-
allow foreign transshipment
of goods without making
compromise to the Cabo-
tage principle.
4) Promote & Expand
Ro-Ro Shipping
Opening up of Strong Re-
public National Highways
Considering the archipelagic nature of the country, making
the countryside more accessible to the market is one of the
biggest challenge in realizing the vision of a modernized agriculture as key
springboard to rural development & poverty alleviation. Aside from inade-
quate infrastructure, the state shall address the high cost of shipping to en-
courage farmers to explore the unlimited opportunities in the global market.
RP Shipping Cost, still the highest among the ASEAN Region
Maritime Industry serves to carry more than 90% of merchandise trade (both local & international) inthe country. Hence, its major role in the development of exports. The table above (data from CRC
study, 2007) will show the ailing need for the country to lower its cost of shipping to be competitive.
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In 14th Congress alone (as ofFeb.2010), a total of 7196 bills are
filed in HOR and 3589 bills are
filed Senate. There are risks that
some of these bills pose threats
NCLAM is one of the six Networking Com-mittees under the Export DevelopmentCouncil. It assists the Council in the effectiveimplementation of the Export DevelopmentAct through advocacy of necessary legislative
measures that shall promote exports.
NCLAM adopts public-private partnership inits operations. It is composed by distin-guished leaders & advocacy managers from
the private sector (PHILEXPORT, PCCI), keyofficials in the relevant government agencies, practitioners in the legisla-ture, and legal experts. It likewise draws expertise from other Net-working Committees and other allied organizations in resolving various
issues.
Services/Assistance Offered:
1. Legislative advocacy- for the identified priority legislations, NCLAMprovides full advocacy assistance to effect passage of the legislation.Assistance may include: a) networking with key offices in Congress;b) assistance in the preparation of advocacy materials; c) advisory
strategies for advocacy dynamics in Congress.
2. Policy Assessment & Evaluation Support - NCLAM assist in evaluating
legislative issues for possible action of the Council. This coversboth proposed legislations (bills) and existing laws relevant to ex-
port development.
3. Bills monitoring- NCLAM regularly monitor the development of
relevant and priority legislations identified by the Committee.
EX-OFFICIO MEMBERS: Mr. Oscar Barrera Chairman (PHILEXPORT
Trustee) Mr. Wilson Wy-Tiu; Vice Chair, Private Sector (PELSPI); Atty. Luis
Catibayan, Vice Chair, Government Sector (DTI Bureau of Import Services);
Mr. Joseph Donato Pangilinan, EDC Representative; Amb. Francis Chua,
Ms. Mary Antoinette Robles (alt), National Competitiveness Council
(Legislature); Ms. Nora Lao, Atty. Clemente San Agustin, Ms. Liza
Leong, PHILEXPORT; Mr. Crisanto Frianeza, Mr. Emmanuel Domingo
(alt), PCCI; Atty. Benjamin Subido, DTI Office of Legal Affairs; Ms. Abigail
Zurita, Mr. Elvin Viloria (alt), DTI Office of Policy Research; Atty. Rhodora
Roy-Raterta, Committee Specialist; Francis Sune, Vergel Castro, Secretariat.
to the export industry and runcounter to countrys competi-
tiveness objective, the principles
of trade facilitation and reducing
the cost of doing business.
The case happened in 2004 upon
enactment of RA 9280 or the
Customs Brokers Act, which
effectively required exporters to
hire customs brokers in signing
export declarations and RA
9290, which deregulated the
shipping industry, without neces-
sary checks, thereby both lead-
ing to increasing costs.
In response to these challenges,
EDC NCLAM formalized a team
that will regularly screen the
relevant bills filed that have po-
tential impact to exports.
EDC NCLAM also aims to
strengthen the established link-
ages in key offices of Congress &
create new ones, as necessary,
to aid in sourcing up-to-dateinformation as to the develop-
ments of identified priorities &
relevant issues.
Other Legislative Issues in the Pipeline
Need to strengthen monitoring of thousand bills
ity and affordable inputs to pro-
duction. Compliance to this rul-
ing is also in accordance to our
commitments to our develop-
ment partners (WB and IMF) and
render liberalization of key sec-tors effective (e.g. shipping line,
airline, ports, power)
Relevant bills: SB 3107
Customs & Tariff Moderniza-
tion Act (CTMA) - As a con-
tracting party to RKC, the coun-
try is required to align existing
laws with the standards and rec-
ommended practices it pre-
scribes,
This seeks to amend provisions
and update the Tariff & Customs
Code (TCCP) in accordance to
international standards in cus-
toms procedures & practices.
Relevant bills: HB 5342
National Transportation
Policy Framework - this aims
to provide the country a working
legal framework to improve effi-
ciency of the transportation sec-
tor performance. This also seeks
to strengthen a national frame-
work plan to guide the infrastruc-
tural development.s in the coun-
try thus making transport pro-
jects and investments coherent
with national development and
economic goals, while responding
to the needs of the local stake-
holders.
Source: DOTC
Below is a list of several bills that
remained pending to Congress,and proposed bills drafted by
various agencies which the EDC
NCLAM is considering for fur-
ther actions in the 15th Con-
gress.
Export Control of Weapons
Mass Destruction - the said
legislation propose to regulate
shipments of dual-use items to
prevent incidence of mass de-
structions. It should be ensured
that regulations are aligned with
the principles of trade facilitation.
Relevant bills: HB 6268, SB 3268
Competition Policy (Anti
Trust Regulation) - It is neces-
sary to enact a National Compe-
tition Policy to promote a level
playing field and rid the country
of harmful monopolies, cartels,
and anti-competitive activities.
These laws shall promote easier
and more effective entry of new
players in the market, which in
turn will improve access to qual-For queries please contact EDC NCLAM Secretariat @ 890-4645, or
email at nclam@edc.net.ph
In 14th Congress (2007-2010) a total of10,800 bills were filed in both Chambers ofCongress; some of which have hiddenthreats & opportunities to exports. Strin-gent monitoring is deemed necessary
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