DOF SEEKS IMPLEMENTATION OF MERCHANDISE PASSPORT SYSTEM

To help showcase Filipino-made products globally and help local businesses to take advantage of opportunities in foreign markets, the Department of Finance (DOF) is seeking the full implementation of the international merchandise passport in the Philippines.

The DOF said on July 26 that the ATA Carnet, one of the agency’s ongoing efforts to improve ease of doing business, is an international customs document serving as a merchandise passport or passport for customs clearance.

The ATA, which stands for the combined French and English words “Admission Temporaire – Temporary Admission,” is accepted by an international network of 81 customs administrations.

“With this system, we now offer them [Filipino businesses] cost-effective access to international trade exhibitions that would have otherwise been prohibitive for them to attend in the past,” DOF Revenue Operations Group (ROG) Undersecretary Charlito Martin Mendoza said.

“This will increase export and import activities, enhance our trade balance, drive job creation, and attract foreign investments,” he added.

INVESTMENTS UNDER CREATE ACT REACHES P1.2 TRILLION

At least 1,200 projects with total investments of over P1.2 trillion have been approved under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act as of June 30.

The Department of Finance (DOF) said on July 25 that approved projects under the CREATE Act since April 2021 to June this year has reached 1,239, with P1.27 trillion in committed investments that are expected to generate 159,486 new jobs.

The CREATE Act establishes a performance-based, time-bound, targeted, and transparent tax incentives regime in the country.

Incentivized projects or activities under the key structural tax reform aim to achieve performance metrics to ensure that the grant of fiscal support to registered business enterprises leads to higher economic returns.

GOVERNMENT BUDGET DEFICIT DOWN TO P209B IN JUNE

The national government’s budget deficit in June went down to P209.1 billion from P225.4 billion of the same month last year, driven by increased revenue collection.

The Bureau of the Treasury’s (BTr) said on July 24 that that public revenues during the month amounted to P296.5 billion, higher by 10.93% compared to last year’s P267.3 billion.

BTR data showed that the collection of the Bureau of Internal Revenue (BIR) reached P172.5 billion for an increase of 4.71% year-on-year, while the Bureau of Customs slightly increased its revenues by 0.67% to P74.6 billion.

Government expenditures, meanwhile, reached P505.6 billion, or higher by 2.62% from previous year’s P492.7 billion.

“The increase was mostly attributed to the implementation of capital outlay projects of the Department of Public Works and Highways, and the Department of National Defense under its Revised AFP Modernization Program, the preparatory activities of the Commission on Elections for the 2025 National and Local Elections, and the higher National Tax Allotment shares of LGUs,” said the BTr.

DTI SEEKS AMENDMENTS TO INTELLECTUAL PROPERTY LAW

The Department of Trade and Industry (DTI) will seek amendments to the Republic Act (RA) 8293 or the Intellectual Property (IP) Code of the Philippines.

At the 2024 post-State of the Nation Address (SONA) Discussions in Pasay City on July 23, Trade Secretary Alfredo Pascual said he will recommend to President Ferdinand Marcos Jr. some amendments that will intensify the enforcement of IP law.

“To support the startups, we need a strong intellectual property law. We have an existing one and I’m going to present to the President, hopefully soon, the proposed amendments to this law so we can strengthen the enforcement of the law and the further protection of intellectual property owners against piracy and counterfeiting,” he said.

For his part, DTI Undersecretary Jose Edgardo Sunico said the amendments will seek a modernized IP framework to enhance the enforcement against online piracy, and boost IP education.

“This will create a safer digital environment, foster innovation, and support economic growth while ensuring we meet international standards,” Sunico said.

RECTO ASSURES DISPLACED POGO WORKERS

The Department of Finance (DOF) is assuring the workers of Philippine Offshore Gaming Operators (POGOs will be provided new employment opportunities.

This, after President Ferdinand R. Marcos Jr., in his third State of the Nation Address on July 22 that POGOs must wind down and cease operations by the end of the year.

“We have until the end of the year to ensure that all displaced Filipino workers will have new jobs and I think that is more than enough time. The DOF will work closely with the Department of Labor and Employment (DOLE) to ensure that the workers’ incomes will not be severely disrupted and that we provide them with proper reskilling and upskilling training for new employment,” Finance Secretary Ralph Recto said in a statement.

The DOF estimates showed that the net cost of POGO operations amounted to P99.52 billion annually while the estimated total economic benefits reached P166.49 billion per year.

PH DIVERSIFYING TRADE PARTNERS

The government continues to diversify its trade partners by forging free trade agreements (FTAs) with other countries outside its traditional partners.

Department of Trade and Industry (DTI) Undersecretary for International Trade Group Allan Gepty said on July 22 that the country remains on track to meet its timeline when it comes to free trade agreement (FTA) negotiations.

Gepty said the Philippines and the European Union (EU) will resume formal negotiations by October.

“This coming October, 14 or 18 if I’m not mistaken, we’ll now start the next round of negotiation,” he said.

Also, the elements and chapters that will be discussed in the next round of talks will be more comprehensive.

Trade Secretary Alfredo Pascual and European Commission (EC) executive vice president Valdis Dombrovskis also jointly announced on March 18 the resumption of negotiations of the Philippines-EU FTA after these were put on hold in 2017.

Gepty also reported that the Philippines and the United Arab Emirates recently concluded the second round of negotiations.

(Photo from PNA by Ben Briones)