1. Exporters call for info drive on PNP licensing of regulated chemicals

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1 PHILEXPORT News and Features This Media Service is brought to you by the Philippine Exporters Confederation, Inc. (PHILEXPORT). Articles from PHILEXPORT News and Features may be reproduced without permission in accredited newspapers and magazines. The editors will appreciate receiving clippings of PHILEXPORT News and Features articles used. September 18, 2015 CONTENTS 1. Exporters call for info drive on PNP licensing of regulated chemicals Philippine exporters are seeking clarification from the Philippine National Police (PNP) on the entire process of securing permits from the PNP for the importation and distribution of regulated chemicals, saying providing the complete picture will eliminate confusion. 2. Manila ports adopt truck booking system Brokers, forwarders and shipping lines transacting or calling at Manila International Container Terminal (MICT) and Asian Terminals Incorporation (ATI) terminals can now register their companies at a new electronic platform terminal appointment booking system (TABS). 3. Creation of regulatory management system to cut regulatory burden, improve regulatory quality pushed The Philippines must establish a formal regulatory management system (RMS) that will reduce regulatory burden on firms and citizens and improve regulatory quality. 4. Congress to form review group on draft bill giving CAAP total regulatory freedom Lawmakers have agreed to form a team to study and harmonize two draft bills filed in the Lower House proposing to strengthen the Civil Aviation Authority of the Philippines (CAAP) in order to improve the country's air transport safety and efficiency and maintain its Category 1 aviation status. FULL STORIES

2 1. Exporters call for info drive on PNP licensing of regulated chemicals Philippine exporters are seeking clarification from the Philippine National Police (PNP) on the entire process of securing permits from the PNP for the importation and distribution of regulated chemicals, saying providing the complete picture will eliminate confusion. The request was made by the business sector during an inter-agency meeting on regulated chemicals organized by the Export Development Council (EDC) last September 15. Francis Ferrer, chair of the EDC committee on trade policies and procedure simplification, asked for the complete process flow from Major Soledad Arciso, chief of the PNP's licensing and permits section. The appeal came as stakeholders expressed broad knowledge gaps on the matter. The PNP is the latest of many agencies companies must approach to secure permits to handle regulated materials, aside from the Food and Drug Administration, Philippine Drug Enforcement Agency (PDEA), and Department of Environment and Natural Resources, among others. "Most of us are not familiar with exactly how the procedures and the processes are done, so we will sit down with the agency concerned and try to get a process flow so that we can distribute it," said Ferrer, who is also a trustee of the Philippine Exporters Confederation Inc. (PHILEXPORT). During the meeting, representatives from the Semiconductors and Electronics Industries in the Philippines Inc. led by president Dan Lachica also brought up the benefits should some imported chemicals be deregulated based on exemptions outlined in international protocols. Entrepreneurs also pushed for a higher threshold on restricted chemicals, noting that many manufacturers just need very small amounts and that a substantial bulk would actually be needed to produce explosives. Ma. Flordeliza C. Leong, PHILEXPORT assistant vice president, said that putting up a one-stop shop that will issue all the licensing requirements for regulated chemicals will also benefit the business community. However, PDEA director Helen Maita Reyes said that they did come up with one but this was not patronized by companies, forcing them to close the service.

3 The participants agreed to look into why the one-stop shop failed to take off, among the reasons given included the location and the lack of the authorized signatories onsite. Arciso then committed to bring up all the stakeholders' concerns to higher officials, particularly revisiting the threshold as well as re-categorizing what are high-risk and lowrisk chemicals to allow for more exemptions. She said she hopes to be able to convey "positive results" by November after the forthcoming PNP consultation with stakeholders on September 22. The solutions to concerns raised is made more urgent due to the expiry on October 31 of the threemonth temporary chemical import licenses issued by the PNP. 2. Manila ports adopt truck booking system Brokers, forwarders and shipping lines transacting or calling at Manila International Container Terminal (MICT) and Asian Terminals Incorporation (ATI) terminals can now register their companies at a new electronic platform terminal appointment booking system (TABS). An advisory said registration at is required before using the TABS to visit a terminal. One account registration is allowed per company. After given a username and password, registrants are ready to make bookings by just logging in to MICT and ATI. Booking, which begins this October 1, is a simple three-step process: upload your container details, search for available bookings and confirm bookings with container numbers. Only available containers listed can be booked, while pending ones cannot be booked. Meanwhile, with the TABS in place at both the MICT and ATI terminals, a more organized in- and out-flow of containerized cargoes from both terminals is expected for a more efficient and productive Philippine supply chain. Brokers, forwarders and shipping lines can benefit from this electronic platform for booking containers as there will be reduced queues at the port since there will be enough yard resources to serve all trucks within their appointment window; and a managed and consistent flow of trucks spread throughout a 24 by 7 period. Deemed a proactive alternative to counterproductive truck bans, the government expects that the operation of TABS can ease traffic on the roads and avoid another port congestion.

4 3. Creation of regulatory management system to cut regulatory burden, improve regulatory quality pushed The Philippines must establish a formal regulatory management system (RMS) that will reduce regulatory burden on firms and citizens and improve regulatory quality. Gilberto Llanto, president of state think tank Philippine Institute for Development Studies (PIDS), noted that the government has to exercise firm leadership and political will in lowering regulatory burden. "It can start by issuing an Executive Order announcing RIA (Regulatory Impact Analysis) as a whole-of-government policy, and not for sector regulators alone," he said in a paper. Llanto pushed for the creation of an institution such as the contemplated Office of Regulatory Practice that will oversee the conduct of RIA in national government regulatory agencies. He said among the challenges to the creation of a formal RMS in the country is the lack of strong central oversight body or institutional mechanism that systematically coordinates and reviews efforts on new regulations or amendments to existing regulations contemplated by different regulators. "Regulatory agencies should build capacity in undertaking RIA and formulating regulatory impact statements. The role, mandate, and stock of regulations of regulatory agencies should be reviewed to reduce regulatory burden," he noted. To this end, Llanto said government oversight agencies such as the National Economic and Development Authority (NEDA) should ensure a more intensive involvement of the private sector, civil society, academe, research institutions and media in regulatory reform. There are four elements of RMS: regulatory quality tools, regulatory processes, regulatory institutions and regulatory policies. Philippine regulatory framework includes market-friendly regulations, rules, laws, administrative and executive orders that try to provide the policy and regulatory environment as well as incentives for increased private participation in the marketplace. 4. Congress to form review group on draft bill giving CAAP total regulatory freedom Lawmakers have agreed to form a team to study and harmonize two draft bills filed in the Lower House proposing to strengthen the Civil Aviation Authority of the Philippines

5 (CAAP) in order to improve the country's air transport safety and efficiency and maintain its Category 1 aviation status. The Committee on Transportation of the House of Representatives decided in a meeting on September 16 to form a technical working group (TWG) composed of representatives from the public and private sectors that will look at merging the draft bills that push to fortify the CAAP's capability to address remaining inefficiencies in the national civil aviation industry. House Bill (HB) No introduced by Representative Cesar Sarmiento and HB No authored by Representative Ben Evardone both aim to strengthen CAAP by amending Republic Act (R.A.) No. 9497, or the Civil Aviation Authority Act of 2008, which created the authority. Sarmiento, who is also the committee chair, said that one of the key points of his bill is the grant of fiscal and administrative autonomy to CAAP, which though enshrined in R.A. No. 9487, was superseded with the passage of Republic Act No R.A. No.10149, also known as the GOCC Governance Act of 2011, established the Governance Commission for Government-Owned or -Controlled Corporations (GCG), which is the central advisory, monitoring, and oversight body with authority to formulate, implement, and coordinate policies governing GOCCs, one of which is CAAP. "There is a need to amend the [CAAP] law so that the granting of the fiscal autonomy would be retained by CAAP," Sarmiento said. Other features of the bill are a proposal to increase the CAAP board members from seven to 11 "with the additions of the Department of Tourism and Department of National Defense secretary as well as representatives from the public and private sector." Moreover, "there will be an expansion of the powers of the board, including the powers to approve local and foreign travel policy, exercise eminent domain and conduct investigations." Sarmiento also recommends strengthening the office of the director-general including "the vesting of disciplinary and appointing powers as well as the expansion of his or her term of office from four to six years." Too, he advocates the "possible delegation of any or all powers from the CAAP board to the director-general subject to control and supervision of the board." Similarly, the Evardone bill called for the enhanced fiscal autonomy of the CAAP by amending pertinent provisions of R.A. No This, it explained, is to enable the authority to "fully address the still perceived deficiencies" in the Philippine civil air transport industry and "ensure the country keeps its Category 1 status that paved the

6 way for the lifting of the ban by the EU on Philippine carriers to mount flights into Europe." Other significant amendments proposed in this bill include increasing the term of the director-general from the present four years to seven years and the exemption of CAAP from the Salary Standardization Law in order to attract quality safety inspectors and technical staff. Lt. Gen. William Hotchkiss III, director-general of CAAP, said during the meeting that R.A. No was "our very first step towards conforming with international standards and practices in so far as administration of safety oversight is concerned." He further stressed the importance of strengthening the law "so that it can truly be an autonomous or an independent agency that is free from political interference which is one of the conditions or recommended practices internationally for a civil aviation authority... so that it is a strong agency that can truly regulate the aviation industry." On the part of the GCG, Commissioner Rainier Butalid said they did not have sufficient time to go over all of the provisions of the proposed bill but added, "Offhand, the Governance Commission for GOCCs is guided primarily by the Governance Act of 2011 which this body approved last There are provisions in the proposed bill which impinge on the provisions of Republic Act " Commenting on the fiscal autonomy of CAAP, for one, he said that while sustainability is laudable, "it must perforce take into consideration accountability" and the need for "an oversight body to make sure that the accounting processes or auditing shall be thoroughly monitored and observed." Butalid said the commission will be submitting their comments on the provisions of the bill within two days.