MANILA, Philippines – The Philippine chemical industry is poised for uninterrupted growth starting this year following the approval and signing of the implementing rules and regulations (IRR) on controlled chemicals.
“We have here now a reasonable and evidence-based policy that benefits the economy and society without threatening national security. The promulgation of the IRR fully indicate that the safety of our countrymen is paramount as the IRR supports the regulation of storage, transport, and handling of chemicals which can be used to create bombs,” Trade and Industry Secretary Adrian Cristobal Jr. said.
“At the same time, the IRR also supports industry development particularly in the area of ease of doing business in the country as the regulation streamlines and rationalizes the processes, benefiting not just the chemicals industry, but backward and forward linked industries as well including manufacturing, agriculture, health, and research and development,” Cristobal added.
DTI said among the salient features of the IRR include the reduction of the list of PNP controlled chemicals from 101 to 32 (15 of which are labeled as high risk and 17 low risk), streamlined procedures in filing applications for permits and licenses, reducing the days of approval from 20 to 10 for new applications, and non-imposition of police escort fees and accreditation of logistics providers.
The IRR is a product of the consolidated inputs and insights of various stakeholders on the categorization of chemicals, streamlining of processes, and accreditation of logistics providers and company-owned trucks and service vehicles on controlled chemicals.
Knowing that certain chemicals are being used in the manufacture of explosives, the PNP with its mandate to maintain peace and order earlier implemented strict regulations on certain chemicals which were subsequently included in the Bureau of Custom’s regulated import list.
“However, this regulation was not adequately communicated to the public and the large number of applicants applying for PNP licenses and permits resulted in long processing times for licenses and permits to purchase, import, export and transport controlled chemicals,” Semiconductors and Electronics Industries in the Philippines Foundation Inc. president Dan Lachica said.
“Moreover, exorbitant escort fees were also collected for the movement of these chemicals. These series of events have adversely affected multiple businesses and research and development facilities, and resulted in several line shut downs and revenue losses among different industries including the electronics, chemicals, cosmetics, fertilizer, handicraft, as well as the MSMEs,” Lachica said.
According to Lachica, the impact of a delay in the delivery of a chemical to a manufacturer would result in losses of between $200,000 and $1 million a day.
With the local chemical industry regarded as an important sector in the economy, the Chemical Industries Association of the Philippines (CIAP) said the release of the IRR would aid the sector in achieving its short term and medium term targets.
CIAP president Gretchen Enarle said the industry is on track to achieve its $5 billion export revenue target and 200,000 direct employment by year-end.
By 2022, the local chemical industry is expected to become a $10 billion industry.