About CAEXPO
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I. Overview of Philippines
 
The Philippines is one of the most dynamic economies in the East Asia Pacific region. With increasing urbanization, a growing middle class, and a large and young population, the Philippines’ economic dynamism is rooted in strong consumer demand supported by a vibrant labor market and robust remittances. Business activities are buoyant with notable performance in the services sector including the business process outsourcing, real estate, and finance and insurance industries.
 
Real economic growth slowed in 2019, but was still strong with 6.0% year-on-year. Growth is now projected to significantly decelerate this year due to the impact of the COVID-19 (coronavirus) outbreak, including through the slowdown in trade, investment, tourism, remittances, and social distancing—including the associated community quarantine.
 
Nevertheless, economic growth is expected to rebound gradually in 2021-2022 as global conditions improve, and with more robust domestic activity bolstered by the public investment momentum.
 
In recent years, the Philippine economy has made progress in delivering inclusive growth, evidenced by a decline in poverty rates and its Gini coefficient. 
 
Philippines is one of the members of WTO, APEC and ASEAN, committing to promote regional free trade and remove trade barriers by the end of 2020.
 
Trade structure. Philippines mainly exports electronic products, mechanical and transportation equipment, other manufactured products, metals, vehicles and the parts, and fresh bananas. It mainly imports electronic products, transportation equipment, mineral fuel and lubricant, industrial machine, and cereal.
 
Import tariff. Philippines has sign bilateral trade agreements with near 40 countries and tax treaties with 36 countries and regions, which aim at promoting global trade and investment, avoiding double taxation. As a member of ASEAN, Philippines enjoys trade preference among ASEAN countries and tax exemption of most commodities in China-Philippines trade.
 
At present, Philippines is granted Generalized System of Preference Plus (GSP+) on the exports to the EU, with over 6000 categories of commodities enjoying zero-tariff treatment. In addition, the US extended the period of Generalized System of Preference (GSP) to the end of 2020, which grants preferential tariff to over 5000 categories of commodities.
 
 
II. Ease of doing business
 
1. Dealing with construction permits
 
Includes all procedures, cost, and time required for a business to build a warehouse (simple structure) 
 
Also assesses quality control and safety mechanisms in the construction permitting system.
 
New process as follow, taking Quezon City as example.
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2. Getting Electricity
 
Includes all procedures, cost, and time required for a business to get a permanent electricity connection and supply for a warehouse
 
Assesses the reliability of power supply and transparency of electricity tariffs
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III. Items that are considered restricted or prohibited from importation
 
These are items generally prohibited, except when given permission under highly controlled conditions as provided for in the law. Some of these prohibited items are the following: 

Dynamite, gunpowder, ammunitions and other explosives, firearms and weapon of war, and parts thereof
Written or printed articles, negatives or cinematographic film, photographs, engravings, lithographs, objects, paintings, drawings or other representations of an obscene or immoral character
Articles, instruments drugs, and substances designed, intended or adapted for producing unlawful abortion, or any printed matter which advertises or describes or gives directly or indirectly information where, how and by whom unlawful abortion is produced
Roulette wheels, gambling outfits, loaded dice, marked cards, machines, apparatus or mechanical devices used in gambling or the distribution of money, cigars, cigarettes or other articles when such distribution is dependent on chance, including jackpot and pinball machines or similar contrivances, or parts thereof
Lottery and sweepstakes tickets except those authorized by the Philippine government, advertisements thereof, and list of drawings therein
Any article manufactured in whole or in part of gold, silver, or other precious metal or alloys thereof, the stamps, brands or marks of which do not indicate the actual fineness of quality of said metals or alloys
Any adulterated or misbranded articles of food or any adulterated or misbranded drugs in violation of the provision of the "Food and Drug Act"
Marijuana, opium, poppies, coca leaves, heroin or any other narcotics or synthetic drugs which are or may hereafter be declared habit forming by the President of the Philippines, or any compound, manufactured salt, derivative, or preparation thereof, except when imported by the government of the Philippines or any person duly authorized by the Dangerous Drugs Board for medicinal purposes only
Opium pipes and parts thereof, of whatever material
Used clothing and rags (RA 4653)
Toy guns (LOI 1264 dated July 21, 1982)
 
As defined under Central Bank Circular No. 1389, series of 1993, as amended, regulated or restricted commodities are generally allowable importations but clearance/permits must be obtained from appropriate government agencies before they can be imported. Some of these commodities and their corresponding Regulatory Agency are as follows:.
 
Commodity Description/Commodity Group (PSCC CODE) Regulatory Agency Issuing Permit/Clearance
Acetic anhydride (513.77-01) Dangerous Drug Board (DDB)
Rice National Food Authority
Sodium Cyanide (523.81-01) Environmental Management Bureau
Chlorofluorocarbon and other Ozone Depleting Substances (511.36-03/04.511.37-00/511.38-01/511.38-09) Environmental Management Bureau
Penicillin/derivatives (541.31-00/542.13.01/542.13-09) BFAD
Refined petroleum products (Appendix 1-A) Energy Regulatory Board
Coal and Coal derivatives (321.10-00/321.21-00/ 321.22-00/322.10-00) Energy Regulatory Board
Color Reproduction Machines NBI and Cash Department (Subgroup 751.3) Bangko Sentral ng Pilipinas (BSP)
Various Chemicals for the manufacture of explosives (Appendix 1-B) PNP Firearms and Explosives Office (PNP-FEO)
Onions, garlic, potatoes and cabbage, for seedlings purposes Bureau of Plant Industry
Pesticides incl. Agricultural Chemicals (Appendix 1-C) Fertilizer and Pesticide Authority
Motor Vehicles, Parts and Components (Appendix 1-D) DTI/BOI/BIS
Truck and automobile tires and tubes, used, of all sizes (LOI, 1086-Nov. 25, 1980) DTI
No-dollar imports of used motor vehicles DTI
All commodities originating from Socialist and other centrally planned economy countries PITC
Warships of all kinds MARINA
Radioactive Materials PNRI
Legal tender Philippine currency in excess of PHP5,000 Bangko Sentral ng Pilipinas (BSP)
Others (Appendix 1-B) Bangko Sentral ng Pilipinas (BSP)
Agricultural Products produced locally in sufficient quantity (Appendix 1-F) Department of Agriculture thru the National Food Authority
 
IV. Notes of doing business
 
1. Choose a secure payment method
 
Attempt to pay by documentary letter of credit or document against payment. Be careful to sell product by credit or post-dated check.
 
2. Emphasize on the quality of products.
 
Put emphasis on the quality of products, especially food and medicines. Also, pay attention to quality of imports from Philippines, especially mineral products.
 
3. Choose a dependent shipping agency

 
Reference: 1. Chinese Ministry of Commerce Department of Outward Investment and Economic Cooperation
2. World Bank Group
3. Department of Trade and Industry
2020-10-26 08:48:58