PinoyBusiness.ORG - Home » Import Export http://pinoybusiness.org Thu, 09 Feb 2012 23:52:38 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Philippines bans chocolate milk from Japan http://pinoybusiness.org/2011/03/24/philippines-bans-chocolate-milk-from-japan/ http://pinoybusiness.org/2011/03/24/philippines-bans-chocolate-milk-from-japan/#comments Fri, 25 Mar 2011 02:22:58 +0000 Roy http://pinoybusiness.org/?p=3968 The country temporarily bans chocolate milk products from Japan after the March 11 earthquake, although it was just a verbal order issued by Bureau of Animal Industry (BAI) Director Efren Nuestro. Philippines joins other countries like Russia, Canada, Australia and Singapore, among the list of countries which banned Japanese food imports as radioactive steam wafted anew from the Fukushima Dai-chi Nuclear Power Station.

Nuestro said that a formal order is already being drafted canceling a previous clearance for the import of Japanese chocolate milk products. “We will recall the veterinary quarantine clearance for chocolate milk products that were shipped into the Philippines after March 11.”

Together with the BAI, the Bureau of Fisheries and Aquatic Resources (BFAR), would screen animal-based products from Japan for abnormal radiation levels and recommend the suspension of the importation of suspect items. The two agencies are both under the Department of Agriculture.

A random sampling of mackerel from Japan would be conducted to determine if they have a high radioactivity level, said BFAR Director Malcom Sarmiento. According to him, the country imported 4,000 tons of mackerel from Japan last year for food processing.

Quarantine officer Rico Capulong said that the Philippine custom authorities are also keeping a close watch on any imports from areas of Japan that were close to the stricken nuclear plants. “Not all parts of Japan were affected. There are certain areas that we are concentrating on,” he said.

Meanwhile, three United Nations agencies issued a joint statement in Geneva, pledging their commitment to “mobilizing their and expertise” to help Japan, noting that “food safety issues are an additional dimension of the emergency.”

The three agencies, International Atomic Energy Agency, World Health Organization, and the Food and Agriculture Organization, said Japan was taking the right action. “Food monitoring is being implemented, measurements of radioactivity in food are taking place and the results are being communicated publicly,” the three agencies added.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2011/03/24/philippines-bans-chocolate-milk-from-japan/feed/ 0 PCCI opposed overtime payments for BI personnel http://pinoybusiness.org/2010/02/05/pcci-opposed-overtime-payments-for-bi-personnel/ http://pinoybusiness.org/2010/02/05/pcci-opposed-overtime-payments-for-bi-personnel/#comments Sat, 06 Feb 2010 01:33:01 +0000 Roy http://pinoybusiness.org/?p=3210 The Senate Bill 3404 or the Philippine Immigration Act of 2010 has provision that raised concern to some business sectors. Section 30 of the said act grants Immigration Officers the power to assign personnel to do overtime work at rates fixed by him when the services rendered is to be paid for by the shipping companies, airlines or other persons served.

The Philippine Chamber of Commerce and Industry (PCCI) sent a position paper opposing the said provision. The PCCI said that passing on to airline and shipping firms the proposed granting of overtime fees to immigration employees is an additional cost of doing business and would affect the country’s already beaten competitiveness.

The services rendered by the BI personnel in seaports and airports is for the protection of the State and is therefore consider public service.  The said  PCCI that the said provision is exactly against the principle of public service, and goes entirely against the collective efforts of the government and the private sector to help our country move up in the international competitiveness ranking, specifically from the bottom third to the upper third of the global ranking.

“To further boost the long-term competitiveness of the Philippines through enhanced international connectivity, we strongly recommend the deletion of the specific provision authorizing the BI Commissioner to fix the overtime rates and to charge them to the airlines, shipping companies and other persons served. This recommendation was submitted as major resolution to Her Excellency during the 35th Philippine Business Conference last October 2009,” the PCCI said.

The business chamber instead suggested that the additional overtime fees should be underwritten by the agency concerned, duly integrated in the General Appropriations Act. It also warned that the passing of overtime fees of BI personnel would increase the cost of doing business in the country for both local and foreign airlines and shipping companies.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2010/02/05/pcci-opposed-overtime-payments-for-bi-personnel/feed/ 0 New Adminstrative Order on imported raw material may affect prices next year http://pinoybusiness.org/2009/12/28/new-adminstrative-order-on-imported-raw-material-may-affect-prices-next-year/ http://pinoybusiness.org/2009/12/28/new-adminstrative-order-on-imported-raw-material-may-affect-prices-next-year/#comments Tue, 29 Dec 2009 11:35:45 +0000 Roy http://pinoybusiness.org/?p=3078 The Federation of Philippine Industries (FPI) warned that prices of goods with imported raw material sold in the country would likely increase next year. That is once the government has implemented the law requiring all imported bulk and break bulk cargo to be surveyed by an accredited surveying company at the port of origin.

At present, there is only one firm accredited by the government to do all the inspection of all imported goods. FPI said the Committee for the Accreditation of Cargo Surveying Companies (CACSC) headed by Secretary Narciso Y. Santiago Jr. only accredited Cotecna Philippines.

As an accredited surveyor, Cotecna is required to issue a report on the quantity, grade of all cargo shipments bound for the Philippines.

This raised concerns to all groups who imports raw materials.

The Philippine Association of Flour Miller (Pafmil) said that the implementation of the order on January 4 may delay the discharge of wheat shipments already in transit to the Philippines, and it may lead to the payment of demurrage charges of around $20,000 to $30,000 per day per vessel. Pafmil said this will eventually affect the consumers because of the resulting higher cost of flour and bread products.

The Philippine Iron & Steel Institute (PISI) said that the government should accredit sufficient number of surveyors, instead of only one firm doing the surveying of the shipments, to ensure transparency, required expertise to handle the various kinds of products, and freedom of choice to ensure competitive prices and good service.

Because of these, and other concerns, FPI is asking the government for the deferment of the implementation of the Malacañang-issued Administrative Order 243-A on Bulk and Break Bulk Cargo Clearance Enhancement Program for 90 days.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/12/28/new-adminstrative-order-on-imported-raw-material-may-affect-prices-next-year/feed/ 0 RD Corp. to expand tuna cannery business http://pinoybusiness.org/2009/12/21/rd-corp-to-expand-tuna-cannery-business/ http://pinoybusiness.org/2009/12/21/rd-corp-to-expand-tuna-cannery-business/#comments Mon, 21 Dec 2009 23:25:25 +0000 Roy http://pinoybusiness.org/?p=3036 The RD Corporation, a Filipino owned company, is planning to expand its investment in the tuna cannery business and is earmarking about $15 million for its prospect. This was disclosed by RD Group chairman Rodrigo Rivera, who said that they will be starting the new cannery by the first quarter of 2010 and will be based in General Santos City. The group has already existing 6 canneries in the city.

With the planned cannery plant, the company hopes to increase their output of 140 tons per day to 200 tons daily. What more, the new plant will also create about 1,200 to 1,500 new jobs in the area. According to Rivera, tuna cannery is a very labor intensive business.

The company has 11,000 employees at present, of which 7,000 are in General City. Rivera said that 90% of their workforce is women.

Aside from the Philippine operations, RD Corp also has cannery plants in Indonesia and Papua New Guinea. The Indonesia plant produces 80 metric tons, while the Papua New Guinea plant produces 200 metric tons.

In the Philippines, they are the biggest exporter of canned tuna, with about 380 million metric tons of exports per year. RD Corp. exports 14 containers every day, and one container costs $40,000, said Rivera. Their exports comprised 30% of their canned tuna production. Aside from exporting canned tunas, they also sell scrap of fish overseas.

The RD Group is composed of four fishing companies. These are RD Fishing Industry Inc., RD Tuna Ventures Inc., South Sea Fishing Ventures Philippines Inc. and Asia Pacific Allied Fishing Ventures Corp.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/12/21/rd-corp-to-expand-tuna-cannery-business/feed/ 0 Lamoiyan eyeeing Chinese market http://pinoybusiness.org/2009/09/11/lamoiyan-eyeeing-chinese-market/ http://pinoybusiness.org/2009/09/11/lamoiyan-eyeeing-chinese-market/#comments Sat, 12 Sep 2009 13:25:10 +0000 Roy http://pinoybusiness.org/?p=2295 After successfully breaking in foreign-dominated toothpaste market in the Philippines, Filipino-owned Lamoiyan Corp., manufacturer of the Hapee toothpaste brand is looking to capture the Chinese market as well.

Company president and chief executive Cecilio Kwok Pedro said they have decided to be more aggressive, and soon they will be exporting Hapee toothpaste to China. At present, Lamoiyan has been exporting its products to Vietnam, Cambodia, Brunei, Papua New Guinea and the Middle East.

Pedro, who believes that in every crisis there is an opportunity, said they will be competing with international companies in China. The company will employ its cost-competitive advantage in the consumer market = the same formula it used to capture the heart of the Filipino consumers.

To help them in their quest of expanding their market, Pedro said Lamoiyan is putting emphasis on participating in trade fairs as its main strategy. In 2008, the company participated in a trade fair in Dubai where it was able to bag a distributorship deal.

For this year, Lamoiyan will be joining for the first time the China-ASEAN Expo 2009 (CAEXPO). It is an annual event which serves as the platform for exporters eyeing the Chinese market.

CAEXPO 2009 is led by the Center for International Trade Expositions and Missions (CITEM) and the export promotions agency of the Department of Trade and Industry. The annual event is a celebration of more than a thousand years of trade and cultural exchanges between China and Southeast Asian nations.

Started in 2003, the annual has, over the past five years, generated a total of 119,000 trade visitors, $6.52 billion in trade volume, and international investments cooperation projects worth $28.62 billion.

The Philippines will be promoting its trade, tourism and investment opportunities to over 10,000 trade buyers from China and all over South East Asia who will be attending CAEXPO. Together with the Philippines, other countries joining the event are Brunei, Cambodia, Indonesia, Laos, Malaysia, Singapore, Thailand and Vietnam.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/09/11/lamoiyan-eyeeing-chinese-market/feed/ 0 DOT hopes to tap foreign buyers as agent in the upcoming Phitex http://pinoybusiness.org/2009/08/22/dot-hopes-to-tap-foreign-buyers-as-agent-in-the-upcoming-phitex/ http://pinoybusiness.org/2009/08/22/dot-hopes-to-tap-foreign-buyers-as-agent-in-the-upcoming-phitex/#comments Sun, 23 Aug 2009 16:52:14 +0000 Roy http://pinoybusiness.org/?p=2087 In its bid to boost further the country’s tourism industry amid the global recession, the Department of Tourism is setting up business meetings between local tourism industry players and foreign buyers.  Tourism secretary Ace Durano said, “In effect, the foreign buyers conduct the onsite consumer marketing for us in their respective countries.”

He added, the business meetings will be conducted next month, and will be part of the Philippine Travel Exchange (Phitex) 2009, on September 2 to 4 at the SMX Convention Center, which is spearheaded by DOT through the Philippine Convention and Visitors Corp.

The DOT expects Phitex 2009 to attract at least 183 travel wholesalers and tour operators from 27 countries and territories. These include Australia, Canada, China, Denmark, Finland, France, Germany, Greece, Hong Kong, India, Italy, Japan, Malaysia, Middle East, New Zealand, Russia, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, Ukraine, United Kingdom and United States.

But the event is not all for the foreign tourism players, because local delegates to the exhibition and conference will be treated to education seminars on foreign markets. Foreign participants, on the other hand, will be given pre-event tours. The business meetings between the local players and foreign buyers would take place on the second day of the event.

Durano said, “The business meetings are regarded as the most important part of Phitex. A total of 28 pre-scheduled appointments will be given each delegate for the table-top discussions. But considering the significant number of delegates, additional business appointments may be set ‘unofficially’ during the breaks and various social functions throughout the event.”

Through the business meetings, Durano said “the Philippine tourism brand gets promoted directly over the counter or at the point of sale” to consumers globally, as the foreign buyers themselves were expected to do the promotions for the Philippines in their countries.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/08/22/dot-hopes-to-tap-foreign-buyers-as-agent-in-the-upcoming-phitex/feed/ 0 Garment exporters lobby for tariff-free exports to US http://pinoybusiness.org/2009/08/18/garment-exporters-lobby-for-tarif-free-exports-to-us/ http://pinoybusiness.org/2009/08/18/garment-exporters-lobby-for-tarif-free-exports-to-us/#comments Wed, 19 Aug 2009 21:45:18 +0000 Roy http://pinoybusiness.org/?p=2062 A recent proposal in the US Congress could save the Philippine garment sector. US House Resolution 3039 or “Save Our Industries Act of 2009” proposes duty-free status for Philippine garment exports, as long as they are made of American fabric.

Because of this, garment exporters are planning to bolster their lobbying efforts aimed at gaining duty-free access to the US market, and this time they’ll be angling for support from American retail brands.

A  Confederation of Garment Exporters of the Philippines (CONGEP) official said that industry leaders are set to meet with US-based firms in September. CONGEP Executive Director Teresita Jocson-Agoncillo said that these efforts would help persuade the Washington to pass into law, the proposal eliminating tariffs on Philippine-made apparel.

“There’s a lot of work to be done from our side. We are sending pockets of business missions to textile millers in US southern states to say we’re interested in sourcing from them,” Jocson-Agoncillo said, and added, “Then we have to get the buyers locked in. fabrics are nominated by the buyers. The Gap, for instance, sources its denim from the US like China, India, or Bangladesh.”

“But there are now about seven to 10 buyers that are supporting it quietly. We have identified fabrics and garment types that can work considering shipment costs. We’re working on a forum to meet these big buyers on the third week of September in New York,” she continued.

The US House proposal could help save the Philippine garment sector, whose export sales have stagnated at an annual $2-2.25 billion since 2005 when special treatments in the form of export quotas were lifted.

Once the proposal is passed into law, CONGEP said it could add $1.1 billion to their annual sales during the first year of its implementation, while investments worth $480 million for garment factories could flow in during the first two years.

The American Chamber of Commerce of the Philippines is amendable to the scheme. Robert M. Sears, the group’s executive director said, “It could be a great thing. We’re supportive of it.”

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/08/18/garment-exporters-lobby-for-tarif-free-exports-to-us/feed/ 0 Philippines will be exporting corn to Vietnam http://pinoybusiness.org/2009/08/13/philippines-will-be-exporting-corn-to-vietnam/ http://pinoybusiness.org/2009/08/13/philippines-will-be-exporting-corn-to-vietnam/#comments Fri, 14 Aug 2009 12:51:19 +0000 Roy http://pinoybusiness.org/?p=2179 The government announced that for the first time, the Philippines will be exporting yellow corn and its first shipment would be for Vietnam. This was confirmed by Agriculture Secretary Arthur Yap, who said that the National Food Authority (NFA) already had talks with authorities in Vietnam, and they have committed to prioritize buying Philippine corn.

According to the Department of Agriculture, NFA would be buying local corn at P10 per kilo and sell it to Vietnam at P9 or P8. This is being done just to get rid of the excess corn supply. “The government is ready to export 50,000 to 150,000 metric tons (MT) of corn. This will come from Isabela, Pangasinan, Mindoro, Bukidnon and others,” said NFA Administrator Jessup Navarro.

NFA spokesperson Rex Estoperez said however that the schedule for the shipment to Vietnam has yet to be set. He said the government had to make sure that the corns to be exported are of high quality.

Corn farmers, on the other hand, are wary, while they welcome the news about the exportation of their produce to Vietnam, they are asking why the NFA would be buying them P10 per kilo when it announced in May that they will give them a support price of P13 per kilo. They also questioned why NFA would sell at a loss when, according to them, corn could sell for P14 to P15 in the international market.

“They government authorities are at least addressing the problem they created when they did not conduct proper consultations before allowing duty-free importation of feed wheat,” Philippine Maize Federation (Philmaize) president Roger Navarro said in an interview.

Due to the influx of feed wheat, which is a substitute for corn in livestock feed, corn prices fell down to as low as P4 per kilo this harvest season. The Philmaize is also urging the government to engage farmers in consultations and make good of its announcements about releasing funds for corn procurement.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/08/13/philippines-will-be-exporting-corn-to-vietnam/feed/ 0 Importation http://pinoybusiness.org/2009/08/09/importation/ http://pinoybusiness.org/2009/08/09/importation/#comments Mon, 10 Aug 2009 07:11:34 +0000 annie http://pinoybusiness.org/?p=1838 Importation is the commercial activity of bringing into the country products or services coming from other countries. As importing products or services can be of help to the country, the Philippines has established its own rules and regulations in terms of importation to protect the interest of its people and its economy.

Upon every importation, all types of article in the Philippines will be subject to duty. Previously exported articles, once will be imported again, will also be subject to duty. Exception to duty is possible if it is specifically provided for in the Tariff and Customs Code.

Importation Beginning and Termination

When a carrying vessel or ship, which has the intention of unlading, enters the Philippines’ area of responsibility, the importation begins. On the other hand, upon payment of duties, taxes and other charges due which the articles of law has established, or secured to be paid at an entry port and have been granted the legal permit for withdrawal, the importation is then deemed terminated. In cases that the articles being imported are free of duties, taxes and other charges, importation is deemed terminated if they have legally left the jurisdiction of Customs.

Not everyone is authorized to make import entry. These are the following that has authority to make import entry.

  • Importers as well as other persons who holds a bill of lading.
  • A licensed broker of custom that acts under the authorization of a holder of the bill; and
  • A person who has the power to act as attorney-in-fact or agent for each other. (The Port of Collector should approve the duly notarized power of attorney and it is the only continuing power that may be accepted or recognized.)

Filing of entry must be made in the Customhouse within 30 days starting from the date that the last of the package from the vessel is discharged. “Ipso Facto” forfeiture of the goods or shipment will be the result if an importer fails to file the entry as it constitutes implied abandonment.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/08/09/importation/feed/ 0 Export Products’ Destinations http://pinoybusiness.org/2009/08/07/export-products%e2%80%99-destinations/ http://pinoybusiness.org/2009/08/07/export-products%e2%80%99-destinations/#comments Sat, 08 Aug 2009 06:53:51 +0000 annie http://pinoybusiness.org/?p=1809 To identify the foreign markets that offer the best potential for a product to be exported, a research about the market is necessary. Firms that are just new to the exporting industries should consider the demographic and physical environment as well as the political, social, and cultural environment of the targeted market. The market accessibility, the economic factors and the potential of your product are the other things to be paid attention to in venturing into export. A firm will be able to foresee the demand for products or services that you offer and how well your product will perform in targeted market if a thorough market factor assessment is conducted.  The market factor assessment must be conducted on up to ten countries which have potential export opportunities to be able to determine two or three possible foreign markets.

The following will help you identify the appropriate locations to export your products:

  • Check if there is a need for the product in the target market
  • Determine the general level of acceptance of your target market towards imported products
  • Determine the overall population of each country taking into consideration growth and trends of density
  • Categorize the adequate age groups that you are targeting
  • Determine the population located in the different area such as suburban, rural and urban areas
  • Check if your product could be affected by the climatic and weather variations in the area
  • Consider the distance of shipment from the point of origin to different target countries
  • Determine the average age and the quality of transportation and infrastructures of telecommunications
  • Check if the local distribution networks are adequate
  • Verify if the system of government is conducive for conducting a business
  • Find out the degree of government involvement in private business transactions
  • Verify the attitude of the government towards foreign product importations
  • Determine the stability of the political system of the target country
  • Determine the target country’s commitment to promoting a higher level of imports and exports
  • Find out the GNP of each target market and each country’s balance of payment
  • Determine the target country’s percentage of import to export ratio
  • Determine the target country’s regulations on exchange rate and its variations on inflation rate
  • Find out the target country’s per capita income and if its levels of income are increasing
  • Determine the discretionary income percentage that can be spent on the goods of consumers
  • The percentage of the population which belongs to the middle class should be identified
  • Determine the degree of similarity between the target market and the home market
  • Fid out if transformation and or adoption of products or services are needed to suit the requirements of the market
  • Determine each country’s legal aspect on the distributor agreements
  • Find out the requirements on documentations and other import regulations
  • Determine if the market is available to foreigners. There are market which appear to be free and open but is closed to foreigners
  • Find out the laws regarding intellectual property protection that would affect your products and services
  • Determine the tax rate on repatriated profits and if the laws on tax are fair to foreign investors
  • Determine the number of foreign competitors in the market and the country of origin of the competitors

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/08/07/export-products%e2%80%99-destinations/feed/ 0 Exporting Processes and Requirements http://pinoybusiness.org/2009/08/06/exporting-processes-and-requirements/ http://pinoybusiness.org/2009/08/06/exporting-processes-and-requirements/#comments Fri, 07 Aug 2009 06:45:59 +0000 annie http://pinoybusiness.org/?p=1796 Engaging in exporting is beneficial not only to ones firm but to the country as well. Being familiar with the process and documentation requirements in the export industry is necessary for a firm to ensure smooth flow of transactions.

The very first step in venturing into the export industry is identifying and reaching for foreign buyers. The Bureau of Export and Trade Promotion keeps a list of foreign buyers together with the type of product that they would want to import. An exporter who would want to engage in the industry of exporting is advised to tender complete information about the company and the product to the said agency. For firms located in provinces, information about foreign buyers may be obtained through the Department of Trade and Industry (DTI) Regional or Provincial Offices. Commercial trade offices abroad, foreign embassies, banks, and other trade promotion organizations as well as trade magazines are relevant sources of information about prospective buyers. And with the continuous booming of the world of technology, Internet may also be a useful source of importing buyers.

Negotiations with an export contact may be in different forms and may include variety of points which means that being conversant in the important details about your offerings is important. Negotiation with foreign buyers often starts with a business offer. Usually, information must be shared with your prospective buyers like the type of your product including its packing, availability, price, quantity as well as the shipment and the terms of payments. A sample must then be shipped to the foreign buyer. If the buyer is interested with your offerings, it will send a purchase order to the exporter and the process is now set.

The procedures and documentation required in exporting are as follows:

1. For confirmation of an order, a pro-forma invoice must be sent by the exporter to the foreign buyer upon receipt of a purchase order. When the buyer signs and returns the pro-form invoice, an order is confirmed.
2. The Export Declaration Form (ED) must be completed once the goods are ready for shipment.
3. If the product is included in the list of regulated products, the exporter must secure export commodity clearance or export permit from the government commodity office. This may also be needed even if the product is not included in the regulated products list if the buyer requires it.
4. For the approval of Authority to Load, the ED form attached with supporting documents must be submitted to the Bureau of Customs (BOC) Processing Unit.
5. For cargos transported through ship, wharfage fee and arrastre charges are paid.
6. The inspector from customs signs the Report of Loading (sea freight) or Report of Lading (air freight) upon the loading. The Bill of Loading (B/L) from the shipping line or the Air Waybill (AWB) from the airlines must also be secured by the exporter.
7. Upon request of the exporter, the BOC issues the following documents when the cargo is loaded.
• General Certificate of Origin- this is needed for export products that are not availing of preferences under Generalized System of Preferences (GSP).
• Certificate of Origin, Form A- this is for products covered by GSP
• Certificate of Origin, Form D- this certificate is for export products covered by the ASEAN Common Effective Preferential Tariff Scheme (ASEAN – CEPT).
• Shipment Certificate
8. If export payment or negotiation is coursed through Authorized Agent Banks (AAB), they must be provided by the exporter with a copy of the approved ED form and other shipping documents for record purposes.

The original commercial and shipping documents are mailed back to the foreign buyer if shipments are prepaid.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/08/06/exporting-processes-and-requirements/feed/ 1 Export-Ready http://pinoybusiness.org/2009/08/06/export-ready/ http://pinoybusiness.org/2009/08/06/export-ready/#comments Fri, 07 Aug 2009 06:32:23 +0000 annie http://pinoybusiness.org/?p=1781 Exporting a product provides a lot of opportunities and advantages to local enterprise. Unfortunately, the brilliant opportunities that the worldwide marketplace offers are not being taken advantage of by many firms. Compare to the earlier forms of trades, opportunities for exporting a business have been extraordinarily created nowadays with the massive restructuring of political boundaries, the signing of new trade agreements which have resulted to the emergence of trade blocs, the opening of new consumer blocs, and the new World Trade Organization (WTO).

The Philippines has a global economy being influenced by the access to manufacturing technology worldwide. This has turned manufacturers to produce cheaper, faster and better products that will make be more competitive manufacturers. The rivalry in establishing economies has been more serious especially with developing countries which have links to global communications and electronic access to information.

Capitalizing on these types of market shifts and exporting are advised with the following reasons:

  • Exporting can increase sales and profits- Expansion into international market is expected to improve profitability especially if the firm is already performing well in the local market.
  • Expand share in the global market- a lot of things can be learned from competitors in exporting. Through analysis on the strategies of the competitors, a firm’s share in the global market can be gained.
  • Dependence on existing local markets is reduced- through exporting; the firm will not solely rely on the customers from the domestic market but to foreign market as well strengthening its marketing base.
  • Steady market fluctuations- through the global markets, firms can be freed from economic changes, unreliable consumer demand and seasonal fluctuations in the domestic economy.
  • Maximize excess capacity of production- utilization of production capacity as well as the length of production runs could be increased through exporting.
  • Improve competitiveness- with exporting, not only the firms competitiveness is enhanced but as well as the country’s. Improved balance of trade through exporting benefits the country.
  • Create job opportunities- Many people can have jobs if a firm invest in exporting
  • Aids in decreasing trade shortage- trade gaps continue to raise from import payments but the earnings from exporting decreases this gap.

To help firms that are potential exporters, trade promotion organizations have been established throughout the Philippines.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/08/06/export-ready/feed/ 0 Retail Trade http://pinoybusiness.org/2009/08/03/retail-trade/ http://pinoybusiness.org/2009/08/03/retail-trade/#comments Tue, 04 Aug 2009 05:38:04 +0000 annie http://pinoybusiness.org/?p=1707 Retail Trade is defined as “any act, occupation or calling of habitually selling direct to general public merchandise, commodities or goods for consumption subject to certain exceptions.” On March 26, 2000, Republic Act No. 8762 entitled Retail Trade Liberalization Act took effect which allowed foreign investors to engage in the retail trade in the Philippines if the participants meet the capitalization, net worth and other requirements which the act had set.

Ownership of foreigners on retail enterprise is categorized into four.

Category A- Retail venture which has paid- up capital of less than US$2, 500, 000 on its equivalent in peso. Owner of this type of enterprise is limited to Filipinos.

Category B- a retail enterprise with paid-up capital amounting between US$250 million and US$750 million. In this category, foreign investors are allowed to fully own the enterprise.

Category C and D- a retail enterprise which has paid-up capital greater than US$750 million. This is also open for full ownership to foreign investors.

To qualify as foreign retailers in the Philippines, a foreign entity must have at least US$200 million net worth for categories B and C and at least US$50 million net worth for category D, the foreign entity must own at least 5 retail stores of franchise in other countries or at least a branch that has a capitalization of not less than US$25 million, the foreign retailer must also have a five-year track record in retailing and the country of its origin should offer the same benefits to Filipinos.

A foreign participant must secure a certification of which confirms the inward remittance of its minimum capital investment. The said certification should be obtained from Bangko Sentral ng Pilipinas (BSP) and Department of Trade and Industry (DTI). Unless notification has been made to SEC and DTI, the foreign investor is required to maintain the minimum capital amount.

A foreign retailer must also observe that in accordance to the Retail Trade Liberalization Act which is effective up to March 2010, a product made in the Philippines must make up of at least 30% of the total inventory cost of foreign retailers if classified under Category B or C and under Category D, the figure is 10%; foreign retailers trade are limited only to its accredited store; and 30% of the share of Category B or C establishments with at least 80% foreign- ownership are required to be shared to the public within eight years after the launch of operation.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/08/03/retail-trade/feed/ 0 Government lifts limit on export banana industry http://pinoybusiness.org/2009/08/01/government-lifts-limit-on-export-banana-industry/ http://pinoybusiness.org/2009/08/01/government-lifts-limit-on-export-banana-industry/#comments Sun, 02 Aug 2009 10:47:50 +0000 Roy http://pinoybusiness.org/?p=1903 Banana has become one the Philippine’s major export products because of the growing global demand. In line with this development, President Gloria Macapagal-Arroyo recently signed Executive Order 807 which lifted the limit of hectarage for banana export plantation.

The lifting on the limit of the hectarage for banana export plantation was based on the recommendation of the National Economic and Development Authority (NEDA) board.

Said EO is part of the government’s medium-term goals of developing new land for agribusiness in order to create more job opportunities and strengthen global competitiveness. NEDA said that the EO will allow plantations to further expand and improve the country’s position in the global export banana industry.

The banana industry has expanded its need for resources over the years. Such needs are manpower and land, with the total area of which would eventually exceeds the 26,250 hectares limit set under previous government rules.

In addition to the lifting on the hectarage limit, EO 807 also dissolved the Banana Industry Export Committee and instead mandated the Department of Agriculture (DA) to oversee the banana export industry in accordance to existing land use policies and plans of the national and local governments with due considerations to global market demand and conditions. DA is also responsible for the managing of the social and environmental impacts of expanding banana plantation areas.

The limitation on the banana hectarage dates back in the 1970s when the government issued a Letter of Instructions (LOI) to banana exporters to regulate the production and supply of export bananas. The said LOI sets the number of allowable export banana plantation areas and allocate the same to only 19 pre-identified growers and plantations. In October 2008, the issues faced by the export banana producers were initially raised by the NEDA board regional development committee.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/08/01/government-lifts-limit-on-export-banana-industry/feed/ 0 Goodyear to Shut Down RP plant http://pinoybusiness.org/2009/07/28/goodyear-to-shut-down-rp-plant/ http://pinoybusiness.org/2009/07/28/goodyear-to-shut-down-rp-plant/#comments Wed, 29 Jul 2009 11:46:23 +0000 PinoyBusiness http://pinoybusiness.org/?p=1716 Around 500 employees will be displaced as Goodyear Tire and Rubber Co. decided to close its manufacturing plant in Las Pinas City on September 30 this year.

Goodyear Philippines Inc. Managing Director Dave Morin said the facility’s operating costs were no longer competitive after it lost its export business.

Morin said exports consist 45 to 50 percent of Goodyear’s business in the country. He said losing it, it was necessary to make some changes on their cost structure. “We need to close our manufacturing operations here and just import tires from our sister companies in the region,” he explained.

Goodyear Philippines would continue to provide the tire requirements of its replacement and original equipment customers by sourcing its supply from plants in Indonesia, Malaysia and Thailand.

“The domestic market is improving but it can’t grow at a rate fast enough to offset the loss in our export business,” Morin added.

The company started to feel the impact of the global recession late 2008 when its export business significantly shrank. To stay fluid, the company cut down seven percent of its total workforce, retrenching 46 employees.

Morin said that at the time, the company hoped the export business would bounce back. “But it has not come back and we do not anticipate it will in the future.”

The managing director said that employees who will be displaced will be given retrenchment packages that “far exceeds what is legally required.”

He added that the company has also set aside P1 million for “transitional programs” which would help the workers establish alternative livelihoods.

Despite closing its manufacturing facility, Goodyear Philippines would keep its presence in the country through its dealer network, Morin said.

The company would keep 100 of its employees for the sales and marketing, distribution and administrative function of its business.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/07/28/goodyear-to-shut-down-rp-plant/feed/ 0 Increased production of face masks as demand also increases http://pinoybusiness.org/2009/05/03/increased-production-of-face-masks-as-demand-also-increases/ http://pinoybusiness.org/2009/05/03/increased-production-of-face-masks-as-demand-also-increases/#comments Mon, 04 May 2009 13:11:02 +0000 Roy http://pinoybusiness.org/?p=1036 In the light of the fear brought about by the potential outbreak of the A/H1N1 influenza virus, or more commonly know as the swine flu virus, a factory in Bataan Economic Zone (BEZ) has hiked up its production of face mask, bandage, isolation gowns and other medical garments.

Medtex, a Taiwanese company which has been operating at BEZ since 1991, is now said to be producing up to 150,000 pieces of face mask daily, which is more than three times of its normal production before the scare of swine flu virus started last month in Mexico.

Juanito Barles, deputy production supervisor of Medtex, said that their marketing department has asked them for more output, that’s why there is a radical increase in their face mask production this month. “Before the virus outbreak, we used to have only one shift. But because of the present demand and bulk orders from the marketing department, we are now implementing three shifts daily,” he said.

Most of Medtex’s products are shipped to the United States. Barles said they use imported materials, and the only problem he sees right now is the delays in the importation of their raw materials, which are not available locally.

The isolation gown section on the other hand, is now required to produce 500,000 pieces a month, as per the firm’s marketing department. Because of the increased demand, Barles said they have no choice but to hire more workers. He said the company would need at least 82 sewers per shift in its isolation gown section in order to meet the increasing demand from the market.

According to Wei Chung Li, Medtex plant manager, their products are of high quality and based in international standards. He said Medtex also maintains hospital garments factories in China, Taiwan and Cambodia, which are all ready to accommodate bulk orders from the US when the outbreak worsens.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/05/03/increased-production-of-face-masks-as-demand-also-increases/feed/ 1 Customs 30-minute import processing to be implemented soon http://pinoybusiness.org/2009/04/02/customs-30-minute-import-processing-to-be-implemented-soon/ http://pinoybusiness.org/2009/04/02/customs-30-minute-import-processing-to-be-implemented-soon/#comments Fri, 03 Apr 2009 16:22:05 +0000 Roy http://pinoybusiness.org/?p=955 The long time dream of most importers getting their goods at the shortest possible time is about to become a reality, in fact, it will only take them 30 minutes flat! That is what Bureau of Customs (BOC) Commissioner Napoleon L. Morales promised.

Morales is confident of this because they have already tested the system at the Batangas port in the later part of March. Soon, all other ports in the country, including the largest, will have the internet-based shipment release system implemented. This system will allow the importers to receive their goods within 30 minutes.

The new internet-based system called Imports and Assessment System (IAS) will soon be implemented in the Manila International Container Port (MICP), the Port of Manila, and the Port of Limay in Bataan. This enhancement project is but part of the many major project supported by the e-Governance funds of the Office of the President.

The IAS is intended to harmonize, rationalize, and streamline imports and exports processing, aside from enhancing trade facilitation between the agency and its stakeholder. Procedures for transactions were indicated under the electronic-to-mobile system, as covered in the recently-issued Customs Memorandum Order 10-2009.

To ensure the successful implementation of the new system, it was first implemented at the Batangas port. The test run resulted in six import entries were validated from March 21 to March 31.

“We have long envisioned great comfort for our clients when they make transactions with us, and to make sure we make new system processes run smoothly for them, we are piloting Imports and Assessment System in Batangas, where high costs but low volumes of import trade are traditionally documented, before we implement them nationwide,” said Morales.

With the new, and hopefully more efficient system, it is likewise expected that red tape would be lessen and importers will get their items from the agency without being given a hard time.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/04/02/customs-30-minute-import-processing-to-be-implemented-soon/feed/ 0 BFAD orders recall of imported pistachio products http://pinoybusiness.org/2009/04/01/bfad-orders-recall-of-imported-pistachio-products/ http://pinoybusiness.org/2009/04/01/bfad-orders-recall-of-imported-pistachio-products/#comments Thu, 02 Apr 2009 13:57:42 +0000 Roy http://pinoybusiness.org/?p=952 Following the announcement of the US Food and Drug Administration (FDA) of some pistachio nuts being contaminated with salmonella, their local counterpart, the Bureau of Food and Drugs, (BFAD) ordered a recall on pistachio products sourced from manufacturer Setton Pistachio in California.

BFAD director Leticia Barbara Gutierrez said their inspectors have already collected some samples of the products and are now in the process of testing them for salmonella.

Gutierrez said she had already asked the four licensed pistachio importers in the country who are sourcing their products from the US, to pull out their pistachios product via recall order. She also said that importers, companies and manufacturers have 15 days to recall their products once the order is issued.

The FDA said, news of salmonella in pistachio breaks out last March 24 when Kraft Foods said that its product “Nature Trail Mix” was found contaminated. They have since recalled their product. They told FDA that the source of the contamination was pistachio from Setton.

So the US FDA, together with the California Department of Public Health, said they were investigating the pistachio products from Setton Pistachio because of the contamination. They also confirmed that the company has already stopped distribution of pistachios and will issue a voluntary recall of their products, involving approximately one million pounds.

Locally, BFAD are still trying to determine which brands of pistachio products in the country were sourced from Setton.

Meanwhile, the Bureau of Customs (BoC), said it is already on the alert for the possible entry of contaminated pistachios in country, and said that they will not release any product included in the BFAD recall order.

It was confirmed by the health authorities that the pistachio products are indeed being exported to the Philippines. The batch of allegedly tainted pistachio products was traced to have been manufactured last December, according to the US FDA transmittal.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/04/01/bfad-orders-recall-of-imported-pistachio-products/feed/ 1 Memorandum of Understanding signed between RP and Papua New Guinea http://pinoybusiness.org/2009/03/30/memorandum-of-understanding-signed-between-rp-and-papua-new-guinea/ http://pinoybusiness.org/2009/03/30/memorandum-of-understanding-signed-between-rp-and-papua-new-guinea/#comments Tue, 31 Mar 2009 14:23:27 +0000 Roy http://pinoybusiness.org/?p=943 A Memorandum of Understanding (MoU) on fisheries, which pledged to strengthen two-way trade and investment, has been signed between the government of Philippines and Papua New Guinea. The two countries entered into the understanding when Papua New Guinea Prime Minister Michael Somare visited the Philippines.

Somare met with our president Gloria Macapagal-Arroyo during his visit country at the Shangri-La Resort and Spa in Boracay Island last Monday. After the bilateral meeting of the two leaders, Agriculture Secretary Arthur Yap and Papua New Guinea Fisheries Minister Ben Semri signed the MoU, according to the Palace.

In a statement released by Malacañang, the signed MoU will help the two countries facilitate technology transfer in aquaculture development, promotion of shipping, ventures, investments, technical training, joint research, and “strategic complementation” of each country’s plans in the “Coral Triangle,” which is the waters between the Philippines, Indonesia and the Pacific Islands.

Stated in the MoU: “This Memorandum of Understanding on fisheries cooperation mirrors the commitment of both parties to the goal of securing a productive and sustainable future for their respective fishing industries through joint exploration, development and implementation of priority development undertakings.”

The two nation leaders both agreed that the MoU will further the countries’ bilateral relations and will pave the way for future bilateral agreements on technical and development cooperation, taxation, investment promotion, and air services.

As stated in a joint statement which was issued after the expanded bilateral meeting between Arroyo and Somare, and their respective officials, “Both leaders hoped that the state visit would also spur potential new exchanges of expertise such as university lecturers, teachers, doctors, technocrats, social, and civil society workers.”

Somare said the Philippines ranked sixth among Papua New Guinea’s major trading partners. The two-way trade between the two countries, centered on fishing, is at P1.6 billion ($33.20 million) per year.

Possibly Related Topics to Read

]]> http://pinoybusiness.org/2009/03/30/memorandum-of-understanding-signed-between-rp-and-papua-new-guinea/feed/ 0 Filipina entrepreneur promotes RP products in Australia http://pinoybusiness.org/2009/03/14/filipina-entrepreneur-promotes-rp-products-in-australia/ http://pinoybusiness.org/2009/03/14/filipina-entrepreneur-promotes-rp-products-in-australia/#comments Sun, 15 Mar 2009 15:47:20 +0000 Roy http://pinoybusiness.org/?p=850 Antoinette Easton, a Filipina who is now residing in Australia, is passionate about angels. She loves angels, especially those in the nativity scenes. This passion about angels inspired Easton to start a business selling products made in the Philippines.

Now, this entrepreneur has helped create jobs for the Filipinos in the country as she promotes Philippine products in Australia.

It started when she went back home to the Philippines one day and saw all the angels in her mother’s home. She loved the angels, especially since they were something that she hasn’t seen before. Easton said “I really love this angel maybe we could supply it in Australia because we haven’t seen anything like that.”

So when she came back to Australia, she ordered a few boxes from the Philippines and tried to sell them to gift shops in Victoria, literally going door to door. That was in 1998. She got her big break when she joined a trade show and her angels where well-received. The downside of the business though is that they were seasonal.

And just like most businesses, she was not spared from the global economic crisis too. She said business has slowed down because of the current economic situations, but she is committed in helping her fellow Filipinos back home, that is why she still continuing with the business even though sales come in piece-meal basis only.

She is still happy to stay in the business, and is not about to give up in spite of the crisis. The fact that she is actually helping a lot of Filipinos by helping create jobs because of her orders, Easton is sensing a feeling of pride and fulfillment.

Call her stubborn, but recession is not about to slow down this Filipina entrepreneur, she is even planning to introduce new products which are affordable to be able generate sales even in such a gloomy economy.

Random Posts

]]> http://pinoybusiness.org/2009/03/14/filipina-entrepreneur-promotes-rp-products-in-australia/feed/ 1