No pressing need for DTI reforms, says incoming chief

Mercurio, Richmond (2016, June 20). The Philippine Star. No pressing need for DTI reforms, says incoming chief. Retrieved from http://www.philstar.com/business/2016/06/20/1594535/no-pressing-need-dti-reforms-says-incoming-chief

MANILA, Philippines – Change is coming with the Duterte administration but that may not be necessary to the Department of Trade and Industry (DTI), said incoming secretary Ramon Lopez who sees no need to initiate drastic reforms in the agency.

“It’s not complicated because DTI as we all know is doing a lot of good things so definitely all the good programs will have to continue and even be enhanced. Of course there will be a continuing review of programs that will probably be prioritized and less prioritized,” Lopez said in an interview.

“In terms of the officials, I gave my commitment for continuity. I’m willing to retain the undersecretaries and assistant secretaries, The question is if they also want to. But for me, I’m open but I have to also review their performance,” he added.

Lopez said he met with outgoing Trade Secretary Adrian Cristobal Jr. last week to discuss and facilitate the transition at the agency.

ccording to Lopez, incoming president Rodrigo Duterte has only two primary mandates for him as head of the country’s trade and investment promotions agency – uplift the quality of life of Filipinos through entrepreneurship and no corruption.

“At the focus of the incoming president is uplifting the poor, the quality of life through entrepreneurship, through business. To support the growth of micro, small and medium enterprises (MSMEs) through interventions and to build a climate that is conducive to business,” he said.

“So the priorities will be programs that will help MSMEs like enabling training and accelerate further Negosyo Centers and shared-service facilities,” Lopez said.

In terms of the country’s international trade negotiations, the incoming DTI chief has likewise aired his full support at pursuing them.

“No change because I am all for fair trade and liberalization. Calibrated liberalization is the way to go, we cannot backtrack. We are part of the global system and if we backtrack, we will be out of that global system,” Lopez said.

“What we are going to do is work on how we can maximize these free trade agreements (FTA) so that it can benefit not only the existing (exporters), but even those who are not yet exporting. That not only the big firms will benefit but even the small ones,” he added.

The Philippines has started last month initial round of negotiations for an FTA with the 28-member European Union (EU).

The negotiations will aim to conclude a deal that covers a broad range of issues such as elimination of customs duties and other barriers to trade, services and investment, access to public procurement markets, and additional disciplines in the area of competition and protection of intellectual property rights.

In addition, the Philippines is hoping to join the Trans-Pacific Partnership, the 12-country economic bloc which currently accounts for more than a quarter of world trade.

“I think Mr. Lopez’ experience on the ground with MSMEs will really be a big boost to what DTI does, from ease of doing business all the way to international trade. His experience in capacity building of MSMEs is really the starting point. We have to simplify rules for businesses to benefit MSMEs, they have to be front and center. We negotiate trade agreements so they can import and export,” Cristobal said.

Prior to his appointment, Lopez has been the Philippine Center for Entrepreneurship-Go Negosyo’s executive director for the past 11 years and has served the business sector for 22 years.

Dominguez readies Customs reforms

Magtulis, Prinz (2016, June 15). The Philippine Star. Dominguez readies Customs reforms. Retrieved from http://www.philstar.com/business/2016/06/15/1592969/dominguez-readies-customs-reforms

In this April 2016 photo, Incoming Customs Commissioner Nicanor Faeldon speaks at a press conference at the Philippine Star building in Manila. Philstar.com / Efigenio Toledo IV

In this April 2016 photo, Incoming Customs Commissioner Nicanor Faeldon speaks at a press conference at the Philippine Star building in Manila. Philstar.com / Efigenio Toledo IV

To rid agency of ‘most corrupt’ tag

MANILA, Philippines – The incoming administration will initiate reform measures at the Bureau of Customs to rid the agency of corrupt practices, incoming finance secretary Cesar Dominguez said yesterday.

“The public is telling us something and we better listen. Are we going to change? Otherwise we will have to force it,” Dominguez said.

“The perception of Customs as the most corrupt agency has to stop,” he added.

Dominguez met with outgoing Customs commissioner Alberto Lina and his successor, Nicanor Faeldon to facilitate the transition at the agency.

ustoms’ tag of being “most corrupt” came from a survey of Social Weather Stations in August last year where it was rated “very bad” by businessmen. Lina could not be reached for comment yesterday. The Department of Finance (DOF) oversees revenue offices such as Customs.

Under incoming president Duterte, Faeldon said the BOC would focus more on trade facilitation instead of just revenue collections.

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The bureau, which traditionally accounts for a fifth of state revenues, had persistently fallen below its collection targets and was even down two percent from previous year as of the first quarter.

Specifically, Customs collected P90.5 billion as of March, lower than P92.3 billion raised in the same period last year, Treasury data showed.

“Performance indicators should contain grading on ease of doing business and facility of trade,” Faeldon said in the same statement.

Transparency will also be prioritized, Faeldon said, adding he will improve accuracy in product valuations by adopting a “trade transparency unit” similar in the US.

Valuations are used as bases for the amount of Customs duties. Under the present administration, weekly valuations of select products were made public through the Customs website.

According to Faeldon, there should be a “daily” monitoring of shipment valuation coupled with updated scanning systems to prevent smuggling.

On the flip side, Faeldon said he would keep the ongoing graveyard shifts and 24/7 operations of Customs personnel, which was meant to declog ports.

For his part, Dominguez said he would continue filing charges against smugglers and erring Customs officials under separate programs to deter illicit trade and raise revenues.

Dominguez, however, expressed dismay that no Customs officer has been fired despite pending cases with the Ombudsman.

As of May 15, there were a total of 282 cases against revenue officials filed by the DOF’s Revenue Integrity Protection Service, 157 of which were filed since 2010.

The cases involved 282 personalities, 216 of whom were sued before the Ombudsman, 61 before the Civil Service Commission and five were referred to their concerned agencies for action.

Of the persons sued, 24 were dismissed from office under President Aquino, while 29 others were suspended and six were fined, DOF data showed.

“We will file as many cases against violators… as we have evidence to justify such actions,” Dominguez said.

“As leaders of the institution, you have to send the message down…,” he said in the statement.

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