Issues on controlled chemicals continue to hound exporters

MANILA, Philippines — Exporters are lamenting persisting issues on the implementing rules and regulations (IRR) on controlled chemicals that continue to take its toll on the competitiveness of the industry.

In a letter to Philippine National Police chief Director General Oscar Albayalde, the Philippine Exporters Confederation Inc. (Philexport) are seeking clarification from the PNP on unresolved issues on the IRR on controlled chemicals, saying the issues have remained pending since the approval of the IRR on June 2016.

“While we appreciate the objective of the IRR towards promoting and preserving national security, there are issues that have yet to be resolved which have adversely affected the competitiveness of the industry, particularly stakeholders in the housewares sector that use these regulated chemicals in their production,” Philexport president Sergio Ortiz-Luis Jr. said.

The PNP is implementing the IRR on controlled chemicals pursuant to Section 4C and 4F of Presidential Decree 1866 on illegal possession of firearms and explosives, as amended by Republic Act 9516 approved on June 9, 2016.

The Export Development Council Networking Committee on Trade Policies and Procedures Simplification (NCTPPS), which is chaired by Philexport, underscored the need for the PNP to determine threshold quantity on controlled chemicals for micro and small enterprises (MSEs) and provide guidelines on its implementation.

The Department of Trade and Industry has issued Department Administrative Order 18-01 last January with subject guidelines on certifying MSEs engaged in the business of purchasing PNP controlled chemicals.

“However, this is still cannot be implemented since the PNP is yet to determine threshold quantity for MSEs,” the NCTPPS said.

The group also urged the Department of Interior and Local Government and the PNP to review and amend EO 256 to rationalize fees for the application for controlled chemicals and the removal of fee for permit to unload, subject for consultation with relevant stakeholders.

Philexport said unloading is regarded as an integral part of the importation process and stakeholders have been clamoring for the removal of the requirement of permit to unload.