Exporters group mulls Custom-bonded warehouses | SunStar

Exporters group mulls Custom-bonded warehouses

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Exporters group mulls Custom-bonded warehouses

Tuesday, September 19, 2017

THE Philippine Exporters Confederation (Philexport) in Davao Region pushes for a Custom-bonded warehouse (CBW) to help lower the export cost of small-scale exporters in the region.

As the export industry of the region does not solely rely on the export of raw fruits but processed and value-adding products as well, Philexport chairman Domingo Ang said the CBW under Philexport would implement tax-free import of raw materials needed to process the products such as sugar. Sugar used for processing banana chips in the region is often imported, said Ang.

“It will be beneficial to the exporters. It will be a big help including for the packaging plastics, everything. So far, those that enjoy these benefits are the multi-national enterprises. But we are supposed to help the small ones,” said Ang.

He added exporters can save about 10 to 15 percent of the cost with the removal of the import tax for certain commodities that will be used by exporters. Ang said the amount will be a big help especially to the small farmers.

Within the year, Philexport hopes to get the approval of Bureau of Customs for the CBW, which, Ang said, they had been working out for quite a while now. When approved, CBW will be a centralized warehouse that will be located in Davao City and will be handled by Philexport Davao.

Ang said the warehouse will benefit the small farmers all the more with the implementation of the proposed Banana Industry Development Council.

He said the two would complement each other in addressing the issues of the industry.

Published in the SunStar Davao newspaper on September 19, 2017.

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