Wednesday, October 18, 2006 Exporters study ways to deflect bad effects
THE umbrella organization of exporters in Cebu vowed to continue looking for ways to cushion industry players from the negative effects of the strengthening of the peso and present these to President Arroyo for consideration.
In an interview, Confederation of Philippine Exporters Cebu (Philexport-Cebu) president Allan Suarez said exporters do not share the government’s belief that a stronger peso means a stronger economy.
But exporters understand the government’s stand not to meddle in the movement of foreign exchange in the country, he said.
“We will just have to constantly think of ways to minimize the operations cost of exporters,” he told Sun.Star Cebu.
In a meeting with President Arroyo during her recent visit to Cebu, Philexport raised issues and suggestions that can help minimize the cost of operations of exporters.
These are: cross-application of tax credits issued by the Bureau of Internal Revenue and the Bureau of Customs; granting exemptions to exporters from fees and charges collected by the Bureau of Plant Industry (BPI), and from the requirement that a BPI official must be present during the phytosanitary treatment of container vans; and exemption of exporters from paying holiday wage premium during the four-day Association of Southeast Asian Nations Summit holiday in December.
The group also told the President that exporters at the Mactan Economic Zones 1 and 2 are suffering from the high cost of electricity.
They said the high cost of imported materials for fashion accessories is also hurting exporters.
The industry has asked the President to subsidize the sector’s marketing programs as well as trade missions and shows abroad.
Suarez said among the suggestions they raised, only the scrapping of BPI quarantine inspection fees and the exemption of exporters and allied operators from the four-day Asean Summit holiday premium payment were accepted in the meeting with Arroyo.
He said the President will mandate the Department of Finance to conduct a study on the viability of the exporters’ request for them to be allowed to cross-apply or use their tax credits from BOC and BIR with either agency.
He said Philexport-Cebu will continue to pray the President will be able to address the other concerns raised by the sector.
Earlier, Cebu-GTH (gifts, toys and houseware) Manufacturers and Exporters Association Inc. president Jenefer Cruz said a 50-percent subsidy from the government on the participation of exporters in international trade fairs would be a great help to the industry. (JBN)
