philippines e-commerce roadmap - july 16 draft

Enabling Business, Empowering Consumers

Philippines E-Commerce 5-Year Roadmap2015 to 2020

1

Enabling Business, Empowering ConsumersConfidential. For authorized use only.

E-Commerce Definition Philippines E-Commerce Law – Republic Act

8792. Passed June 2000. Any kind of data message and electronic

document used in the context of commercial and non-commercial activities to include domestic and international dealings, transactions, arrangements, agreements, contracts and exchanges and storage of information.

Electronic transactions made through networking among banks, or linkages thereof with other entities or networks, and vice versa.

E-Commerce Back-Office Operations Thrive (now referred to as Business Process Outsourcing)

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The Philippines’ IT-BPM Industry by Sector

Sources: BPAP, ACPI, CCAP, GDAP, HIMOAP, PSIA

67.0%

18.6%

9.0%

Share of Total PH IT-BPM, 2012100% = US$13.1 billion

VoiceKPO/Back OfficeITOHIMESOAnimationGame Dev

1.6%

1.0%

3.5%

0.4%


Philippine IT-BPO industry size2006–2012; US$ billion

x% YoY Growth

1 Philippines IT-BPO market as percentage of global offshore services market, in revenue termsSources: BPAP, ACPI, CCAP, GDAP, HIMOAP, PSIA

# FTEs(~‘000)

236 383 424 527

Global share1 5% 6% 6% 7% 8%

3.44.5

6.17.1

8.9

11.0

13.2

2006 2007 2008 2009 2010 2011 2012

34%

17%

25%

24%

CAGR:

~25%

FTEs Revenue

(US$M)

Rev % inc.

fr ’11

Voice BPO 497,000

8,697 18%

Non-voice BPO/KPO

154,380

2,470 20%

ITO 57,078 1,160 17%

Health Info Mgt & Care

45,000 460 66%

Engineering Services

10,836 206 20%

Animation 9,000 132 3%

Game Development

3,500 50 251%

TOTAL FTEs

776,794

13,174

19%

19%

284 640

9.5%

777

Philippines 2012 Performance

31%45%


Framework for the Promotion of E-Commerce in the Philippines*

5*E-Commerce Office-Department of Trade and Industry, Philippines

“Trust is central to any

commercial transaction”

I NF RA

DE V E L OPMENT


Background Last August 2014, Senator Bam Aquino

at the Senate Hearing on Trade about E-Commerce Concerns tasked the Department of Trade and Industry to develop an E-Commerce Roadmap to fulfill the implementation of the E-Commerce Law (Republic Act 8792).

Meetings began last December 2014 and the DTI E-Commerce Office is currently working on completing this roadmap.

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Vision: E-Commerce as an Economic Growth Contributor & Philippines Competitive Advantage

Business Objectives &

Success Criteria

100,000 MSMEs do

E-Commerce

E-Commerce

at 25% GDP

30% of Filipinos

doE-

Commerce

Fast & Cost

Competitive

Internet Access

Cybercrime

Enforcement &

Prosecution

Government E-Payment

Implementation

EffectiveMerchant

& Consumer Protection


Philippines ECommerce Roadmap

Internet Access

E-Government

Logistics

Consumer Protection

Law Enforcement

Tax system

Electronic Payment

E-BankingData Privacy

Information Security

Policies

Seal of Trust

Education

Sector development

Leadership


E-Commerce Supply Chain

UPSTREAM

• Internet access

• Logistics• E-Payment• E-Banking

INTERNAL VALUE CHAIN

• Consumer Protection

• Law enforcement

• E-Government

• Tax system for e-commerce

• Data Privacy Commission

• Policy Creation

DOWNSTREAM

• Seal of Trust• Education• Sector

development

• Private Sector Leadership


Upstream

Internet Access

Cost

AccessibilityWIFI

propagationPartnership

Logistics

Presence

COD

TaxesCustoms Process

ONLINE STRATEGY

Enabling Business, Empowering ConsumersConfidential. For authorized use only. 11

Deliverable – Internet Access

NEED OUTPUT TARGET DATE

PLAYERS

Lack of Internet infrastructure standards & master plan. Impacts quality performance and pricing competitiveness.

Lack of players offering Internet services

Philippine Internet Broadband Masterplan

Update the Telecommunications Law and NTC Charter.

Fair Competition Law

Get new telecoms & VAS players.

2015

2017

2015

continuing

NTC, Telcos, DTI, DOST, Congress DILG, Private Sector


Deliverable – Logistics


PLAYERS

Lack of awareness on Customs taxes and duties causes confusion among SMEs buying and selling products online.

Philippine National Trade Repository

Implementation of National Single Window Project v.2 (make it mandatory)

Philpost as COD outlet.

Approve Customs Modernization Law.

2015 BOC, DTI, DOF, BIR, DOST-ICTO, PhilPost, all concerned government agencies, Couriers, Private Sector

40 players (computerization)


Deliverable – LogisticsNEED OUTPUT TARGET

DATEPLAYERS

Various import permit documents not yet automated for application / approval.

Philippines not fully ready for cross-border e-commerce

Import permit electronic application / approval across agencies to be fully implemented. (those that are necessary only)

Guidelines for cross-border mutual recognition of digital signatures, electronic communication & contracts.

2015 BOC, DTI, BIR, PhilPost, Couriers, Forwarder, Private Sector

BOC, DTI, DA, DOH, NTC, DOF, BIR, government agencies, forwarders, courier, private sector


Upstream

E-Payment

Regulation

Arbitration

E-Wallet

Merchant Protection

E-Banking

Access

Security

Regulation

Services

ONLINE STRATEGY


Deliverable – E-Payment


PLAYERS

Lack of e-payment & e-wallet monitoring authority for non-banks offering non-legal tender services (commodity) poses risks and problems to merchants & consumers.

Regular Advisory on Non-Legal Tender Payment Services

National Retail Payment System

Payment System Act

2015 DTI, BIR, BSP, Private Sector


Deliverable – E-Banking


PLAYERS

Lack of E-Banking Services Standards hampers adoption of e-banking by all banks offering updated minimum services needed today including IBFT and Escrow.

E-Banking Services Standards (covering updated minimum e-banking services)

2015 BSP, DTI, BAP, RBAP, Private Sector


INTERNAL

Consumer ProtectionE-Promotions

Advertising Claims

Web Presence Guide

Complaints Handling

Law Enforcement

Complaints Handling

Cooperation

Public awareness

Public Attorneys

ONLINE STRATEGY


Deliverable – Consumer Protection


PLAYERS

Lack of online process for consumer complaints affects consumer confidence in doing e-commerce.

Merchant and Consumer Complaint Online Dispute Resolution Process.

2015 DTI, DOH, DA, ConsumerNet, Private Sector

The Consumer Protection Act needs to adjust and recognize changes in merchant-consumer landscape

Update the Consumer Protection Act.

Merchant / Consumer Feedback System (

Improve sales promotion approval process

Sales Promotion for Online Campaigns & Points Incentives

Online Application for Sales Promotion.


Deliverable – Law Enforcement


PLAYERS

Lack of online process for cybercrime reporting and legal assistance making it difficult for consumers to file reports and sustain their complaint.

Cybercrime Online Reporting and Legal Assistance Network

Cybercrime Investigation & Coordination Center

National Computer Emergency Response Center

2015

2016

2016

PNP, NBI, DOJ, DOST-ICTO, National Security Council AFP, DTI, BSP, Private Sector


INTERNAL

E-Government

E-Payment

Data Privacy

Transparency

Funding

Data Privacy

Commission

Complaint handling

Guidelines

Reporting of breaches, data privacy compromise

ONLINE STRATEGY


Deliverable – E-Government


PLAYERS

Lack of efficient e-government services to serve stakeholders making e-commerce redundant and tedious.

Government E-Payment Implementation Plan (use of PH-PAY)

Policy on credit card use for government agencies payment acceptance.

Expansion of the National PKI, Digital Certificate for Public & Private Sector

2015 DBM, DTI, DOST ICTO, BSP, DOF, Bureau of Treasury, Congress, Private Sector


Deliverable – Data Privacy


PLAYERS

Lack of Data Privacy Commission not giving an avenue for complaints to be filed in violation of the Data Privacy Law

Data Privacy Guidelines for the Government

Push for the creation of Data Privacy Commission

Data Privacy Guidelines for the Private Sector

2015 DTI, DBM, DOST-ICTO, DOF, Bureau of Treasury, BSP, COA, Private Sector

DTI, Private Sector


INTERNAL

Tax System

Process consultation

Electronic Invoice & Official Receipt

Tax guidelines

Education

Policy Creation

Sales Promotion Guidelines

Online Advertising Claims

Product Safety Verification

E-Government Fund

ONLINE STRATEGY


Deliverable – Policy Creation


PLAYERS

Lack of e-notary guidelines affecting implementation on e-commerce for transactions requiring notarization

Rules on E-Notary

2015 Supreme Court, Department of Justice, PNP, NBI, DOJ, DOST-ICTO, DTI, BIR, BSP, SEC, DILG, Private Sector


Deliverable – Tax System


PLAYERS

Lack of easily accessible and usable invoicing and official receipt tools for use by freelancers, online direct sellers, and small e-commerce sites online.

Build a System for Online Sales Invoice and Official Receipt Issuance

2015 BIR, SEC, DTI, Private Sector

Guidelines for Online Sales Invoice & Official Receipt Issuance

Tax simplification Push amendments to Tax Code / Law


DOWNSTREAM

Seal of Trust

Accreditation Guidelines

Privacy Seals

Security Seals

Verified Seals

EducationE-Learning Adoption

B.S. E-Commerce

Diploma E-Commerce

K-12

ONLINE STRATEGY


Deliverable – Seal of Trust


PLAYERS

Lack of seal providers to authenticate e-commerce sites offering products and services online

Accreditation for Data Privacy, Security, and Identity Verification Seal Issuers.

2015 Philippine Accreditation Bureau, DTI, BIR, BSP, SEC, DILG, Private Sector

Lack of accredited digital signatures issuers for local Internet users.

Update Guidelines on accreditation of certificate authorities.

2015 Philippine Accreditation Bureau, DTI, BIR, BSP, SEC, DILG, Private Sector


Deliverable – Seal of Trust


PLAYERS

Consumers need to know if an online store is registered and can be trusted.

BIR Registered Seal to be given to active taxpayers (at least 1 year). To be listed online.

2015 BIR, DTI, BSP, SEC, DILG, Private Sector

Sellers asking if online business requires separate registration

BIR Guideline for Online Business whether website is primary office or branch.

2015 BIR, DTI, BSP, SEC, DILG, Private Sector


Deliverable – EducationNEED OUTPUT TARGET

DATEPLAYERS

Lack of e-commerce education curriculum to meet industry demand on e-commerce adoption.

B.S. E-Commerce

E-Commerce subjectsoffering in Colleges

Masters Degree in E-Commerce

Diploma in E-Commerce offering in vocational schools

E-Commerce Education in K-12

2015 DTI, CHED, TESDA, DepEd, Private Sector


DOWNSTREAM

Sector development

Manufacturing

Retail / Wholesale

Services

Start-up

Private Sector Leadership

Associations

RITECC

Consumer Groups

Online Communities

ONLINE STRATEGY


Deliverable – Sector Development


PLAYERS

Lack of programs to support businesses in adopting e-commerce.

Establishment of E-Commerce Office in DTI to develop programs, issue policies, resolve concerns, and monitor e-commerce adoption

2015 DTI, DBM, Private Sector

One Stop Shop Business Center

DTI, SEC, CDA, DILG, BIR, private sector

National E-Commerce Metrics Development

PSA, DTI


Deliverable – Policy Creation


PLAYERS

Lack of digital certificate registration authority to facilitate in identity verification.

Philippines PKI Forum• Encourage

growth in Certificate Authority and Registration Authority entities.

2015 DTI, BIR, BSP, SEC, DILG, DOST-ICTO, Private Sector

Improve Internet Governance Towards Trustworthy & Secure E-Commerce.


Deliverable – Private Sector Leadership


PLAYERS

Lack of organized multi-private sector participation to work with the government in developing and monitoring e-commerce growth in the country.

Establishment of E-Commerce Promotion Council comprised of the government and private sector whose tasked is to work on the various deliverables in this roadmap.

2015 DTI, DBM, BSP, DOF, Bureau of Treasury, BIR, COA, DOJ, PNP, NBI, Private Sector Associations, Online Communities


Risk Management

34


RISK MANAGEMENT

RISK CONSEQUENCE

MITIGATION

CONTINGENCY

ASSIGNED

Internet speed, cost, & access not improving.

Filipinos unable to do e-commerce.

Create Internet Roadmap with telcos

Work on how to encourage more players in the market.

NTC, DTI, private sector

Unregulated payment gateways, virtual currencies and electronic wallet close shop affecting consumers.

Filipinos merchants, consumers unable to get back their funds.

Create payment gateway, virtual currency, and e-wallet regulation for non-bank entities.

Use legal means to penalize and ensure consumers will get their money back.

DTI, BSP, law enforcement, private sector


RISK MANAGEMENTRISK CONSEQUEN

CEMITIGATION CONTINGEN

CYASSIGNED

Philippines unable to participate in cross-border ASEAN Single Window

Filipinos unable to reap ASEAN Single Window opportunities and advantages.

Implement National Single Window.

Work on policies for cross border electronic communication & digital certificate recognition

Work with 3rd party players that will allow private sector entities participate and meet requirements necessary.

DTI, BOC, DOST, private sector

Cybercrime, data privacy, consumer complaint concerns increase with no resolution.

Filipinos confidence in doing e-commerce low.

Creation of merchant and consumer online dispute resolution process.

Cyber Crime Reporting & Legal Assistance

Seek cross-border legal assistance as needed for tracking cybercrime perpetrators outside of PH.

DTI, BSP, law enforcement, DOJ, private sector


RISK MANAGEMENTRISK CONSEQUEN

CEMITIGATION CONTINGENC

YASSIGNED

Consumer information privacy gets compromised

Pose damage, inconvenience to affected consumers.

Creation of Data Privacy Commission.

DTI to release data privacy guidelines on e-commerce in government & private sector

Apply penalties and legal liabilities for violating Data Privacy, Cybercrime, E-Commerce Law.

DTI, law enforcement, private sector

Unsustained leadership in e-commerce implementation.

Roadmap does not get implemented. Benefits not realized.

Private-public sector partnership towards implementation of e-commerce.

Congressional Oversight on E-Commerce to monitor roadmap.

Private sector leadership proceed with roadmap implementation and pushing government to adhere to its commitment.

Private sector groups.

Government agencies.

Congressional Oversight on E-Commerce Law


Roadmap completion timeframe TWG sign-up / Public document creation for input

elicitation: Citizen / Business Stakeholders - May 18 and June 1 Government Stakeholders - May 25 and June 8

Webinars for public consultation May 22, May 29, June 4, June 11

Philippine E-Commerce Roadmap Presentation at E-Commerce Law anniversary on June 15.

Consultation in Davao (June 30), Cebu (July 6), Baguio (July 9)

Stakeholder commitment support gathering (ongoing)

Signing of Philippines E-Commerce Roadmap (to be announced)

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For your inputs, contact We need your inputs. Copy of Roadmap

at http://bit.ly/ecomroadmap Submit your inputs to DTI E-Commerce

[email protected] 02-9765703Fax: 02-896-7889

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philippines e-commerce roadmap - july 16 draft

Government & Nonprofit

ecommerce ecommerce

ecommerce roadmap

ecommerce concerns

promotion of ecommerce

authorized use

ecommerce officedepartment

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