FREEPORT AREA OF BATAAN—The Department of Trade and Industry (DTI) is urging manufacturers, export producers and registered business locators here to take advantage of a preferential tariff scheme granted by the European Union (EU) that allows duty-free access to exporters from developing countries, like the Philippines.
In a forum conducted by the Authority of the Freeport Area of Bataan (Afab) recently, resource speakers from the DTI Export Marketing Bureau (EMB) and Bureau of Internal Trade Relations (BITR) said registered business locators here should maximize the competitive advantages from the EU Generalized System of Preferences Plus (EU-GSP+) in order to further expand their businesses and boost their presence in the EU market.
Trade Industry Development Specialist Jollan Margaret Llaneza of BITR told locators they could avail themselves of zero-tariff schemes under the EU-GSP+ and penetrate what is considered to be the single largest market in the world.
Llaneza said that, in particular, producers of textile, garments, apparel and shoes from the Freeport Area of Bataan (FAB) could avail themselves of duty-free export privileges under the EU-GSP+ scheme.
She said that, while EU member-countries charge a regular tax rate of 16.9 percent for exporters that are not from GSP+ members, the Philippines’s enrolment to GSP+ gave FAB locators this competitive advantage.
EMB Senior Trade Industry Development Specialist Maria Jaena Go-Aco explained the rules of origin and the procedures in exporting to EU member-countries, pointing out that the preferential tariff scheme is given to developing countries that meet the very stringent application requirements.
The Philippines was accepted formally into the EU-GSP+ on December 18, 2014, and is currently the only Asean country enrolled under the preferential tariff scheme.
Under this system, Philippine manufacturers can export more than 6,000 products to any of the 28 member-countries of the EU at zero tariff. The products that may qualify for duty-free access include coconut and marine products, processed fruit, prepared food, animal and vegetable fats and oils, textiles, garments, headwear, footwear, furniture, umbrellas, and chemicals.
In the same forum, Chairman and Administrator Emmanuel D. Pineda of the Afab encouraged companies at the FAB to avail themselves of the EU-GSP+ offer, noting the EU-GSP+ scheme provides distinct advantages to Philippine manufacturers.
“For the past several years, the authority has been actively collaborating with the DTI for promotions activities to invite more foreign investors to put up their businesses here in the Philippines, especially in the FAB. This is because the Philippines is currently the only country in Asean enrolled in the EU-GSP+ scheme. And this is an advantage that you, our FAB locators, can avail yourselves of and enjoy,” Pineda told the locators.
Pineda said in recent years, the number of FAB locators tapping the EU-GSP+ scheme actually increased from 66 percent in 2015 to 71 percent last year. “The surge in utilization rate showed more industries are finding the benefits of this scheme,” Pineda added. “This could also become the competitive edge of the FAB locators.”
AFAB Deputy Administrator for Operations Alewijn Aidan K. Ong assured the locators the Bataan authority, the DTI, and the Bureau of Customs will assist the business locators in meeting requirements for the EU-GSP+ program.