Exporters welcome DTI rules on microbusiness

MANILA, Philippines – Local exporters are cheering the issuance of a new set of rules that relaxes the availment of incentives among barangay micro-business enterprises (BMBEs).

The Department of Trade and Industry (DTI) approved Administrative Order 16-01 amending the implementing rules and regulations of the Go Negosyo Act and BMBE Act of 2002 which previously authorized local government units to approve the certificate of authority to registered BMBEs.

“We welcome this development as a way to facilitate the registration and approval of incentives for BMBEs. Many BMBEs have complained about the difficulty in dealing with some LGUs on this matter,” Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. said.

BMBEs refer to any business entity or enterprises engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading, and services whose total assets, excluding land, shall not be more than P3 million.

Under the new administrative order, the DTI becomes the sole agency tasked to issue a certificate of authority to registered BMBEs at Negosyo Centers or at DTI offices where Negosyo Centers have not been set up.

Prior to its issuance, BMBEs register at the office of the treasurer of the city or municipality where the business is located.

“The registration and issuance of the CA is free of charge. Through the Bureau of Small and Medium Enterprise Development, the DTI is mandated to promote and develop MSMEs in the country by initiating and implementing programs and projects addressing the specific needs of these businesses. Any person, natural or juridical, such as partnership, corporation, association and cooperative, having the qualifications and none of the disqualifications shall be eligible to register as BMBEs,” Philexport said.

“We encourage micro enterprises to register their businesses and avail of the incentives under the BMBE Law,” DTI Undersecretary Zenaida Maglaya added.

Maglaya said registered BMBEs could avail of government incentives that include exemption from the payment of income tax for income arising from the operation of the enterprise, exemption from the coverage of the minimum wage law, special credit window of government financing institutions that will service the needs of BMBEs, as well as technology and marketing assistance.

Administrative Order 16-01 was published on May 11 this year and would take effect after 15 days.

The BMBE Act of 2002 recognizes the role of BMBEs as an essential driving force for the country’s economic development as they are considered as “seedbeds of Filipino entrepreneurial talents and strengthening them would increase job generation, provide livelihood and augment Filipinos’ quality of life.”