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Erlinda M. Medalla, PIDS Fellow ASCC 2012 Kazan, Russia

Managing the ASEAN Economic Integration Process in the Philippines: Trade Liberalization and Facilitation. Erlinda M. Medalla, PIDS Fellow ASCC 2012 Kazan, Russia. Outline. Brief overview of Philippine trade policy Overview of Philippine trade facilitation measures Some Trade Indicators

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Erlinda M. Medalla, PIDS Fellow ASCC 2012 Kazan, Russia

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  1. Managing the ASEAN Economic Integration Process in the Philippines: Trade Liberalization and Facilitation Erlinda M. Medalla, PIDS Fellow ASCC 2012 Kazan, Russia

  2. Outline • Brief overview of Philippine trade policy • Overview of Philippine trade facilitation measures • Some Trade Indicators • AFTA commitments related to trade • Findings from the survey/questionnaire • Concluding remarks

  3. Pre-1980 Open up Unilateral Up to 2000 Doldrums  RTAs ASEAN central ≅

  4. Philippine Trade Facilitation Reforms • Customs modernization since 1996 through computerization, selectivity system (red, green, yellow), post-entry audit • Simplified export procedures through OSEDC • automated export documentation in PEZA, Subic, Clark • NSW: integrate 40 government agencies, initial focus was 10 which account for 70% of permits & clearances

  5. AFTA Trade Commitments • Zero tariffs for “substantially all trade” by 2015 • EO 850 was passed in December 2009 which brought down tariffs on imports from ASEAN, to 0 % in 2010, except for a short ‘sensitive’ list of products • ASEAN Target: 30 minute turnaround time • Customs Modernization • Establishment of NSW

  6. The direction of Philippine trade has shifted away from the US and EU to Asia, ASEAN in particular, during the past 30 years.

  7. The direction of Philippine trade has shifted away from the US and EU to Asia, ASEAN in particular, during the past 30 years.

  8. ASEAN Target: 30 minute turnaround time • Customs modernization • National Single Window • ASEAN Single Window

  9. National Single Window • Preparatory stage & process analysis: completed • Process simplification & harmonization, cross border data exchange: on-going • System up & running for 27 government agencies: electronic submission of application form, status of application viewable in the dashboard, notification via email of application status, final approval via e-means • Next step: Link between NSW and OGAs

  10. Review of progress: Survey/questionnaire • Two sets of survey/questionnaire • The questionnaire for government officials aims to gather information on aspects of ASEAN customs development and integration and the implementation of NSW and ASW. • To help assess the progress made in trade facilitation efforts of the government, the MTR also included a survey of private sector firms to determine if they have perceived improvements in customs procedures and processes.

  11. Review of progress: Findings from survey/questionnaire • Responses of BOC officials to the questionnaire on customs modernization reveal that the Philippines has implemented electronic transactions in most key customs processes. • The exceptions are in electronic export declarations and electronic certificate of origin. • According to BOC, the NSW portal is now implemented in the major seaports and airports and coverage for all is targeted by 2015. • Currently, there are 38 OGAs linked to the NSW. A total of 50 OGAs are envisioned by BOC to be linked to the NSW by 2015. • Of around 10,000 registered, around 25 % use the NSW portal.

  12. Review of progress: Findings from survey/questionnaire • Perception of customs procedures becoming fully automated rose by more than 50 percent for all customs procedures in 2011 compared with the previous year for main customs processes. • Perception of improvement higher for SMEs • The highest perception is in payments of taxes and duties (22 out of 28 who answered), followed by import declarations (16 out of 34). • Highest perception of non-automation is in support documentations (14 out of 33 who answered), followed by export declarations (13 out of 25 who answered). • These responses are consistent with the findings from the questionnaires for government officials which indicated the same areas of improvements and limitations.

  13. Concluding Remarks • Trade Liberalization • Tariffs : delivered commitments • Trade facilitation • Reforms undertaken toward NSW and ASW • In managing its ASEAN integration • Helped kept the country open • Adoption of NSW – means of good governance,not just compliance with ASW commitments • Regulatory impact: mid to long term serious reforms in business processes & customs management

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