DTI open to creation of ecozones for local, export marts

MANILA, Philippines - The Department of Trade and Industry (DTI) is open to the proposed creation of economic zones that would cater to both domestic and export production.

“We are looking into that proposal,” Trade undersecretary Adrian Cristobal Jr. told reporters.

The Joint Foreign Chambers (JFC) is recommending that the establishment type of economic zone or Domestic Economic and Export Zones which would be open even to firms producing for the domestic market, in line with the aim to achieve inclusive growth.

At present, locators in the Philippine Economic Zone Authority’s (PEZA) ecozones are required to have the bulk the their production for export.

The JFC said the new zones could be administered by the PEZA and put up in less-developed regions of the country where there are ample numbers of young workers available to be trained.

Cristobal said among the problems faced by businesses here is the various rules and regulations of the local government units.

“The PEZA is the model to that and the proposal is why don’t we apply that to domestic? That’s another way to solve the fundamental problem,” he said.

Trade Secretary Gregory Domingo said in a separate interview that while the idea has been proposed before, the department still needs to get PEZA’s take on the matter.

He also said that as the PEZA caters to export-oriented firms, the creation of such zones may require some changes to Republic Act 7916 which created the agency.

“If it can’t be done, we may have to change the law,” he said.

Aside from the proposed new zones, Cristobal said the government is likewise looking into exempting domestic enterprises from duties on importation of capital equipment to make them more competitive.

Currently, firms enjoy duty-free imports of capital equipment if they are registered with the Board of Investments and the PEZA.