edc lam 14th congress 041310

8/2/2019 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)


2/8

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)


4/8

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


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


5/8

Page 5

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.


6/8

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.


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.


7/8

Page 7

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.


8/8

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 [email protected]

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