PRESIDENT Rodrigo Duterte has ordered the revival of barter in Mindanao in a bid to promote growth and order in the war-torn region.
Under Executive Order (EO) 64, Duterte said reviving barter in Mindanao would not only create jobs and business opportunities, but would also strengthen trade and commerce among member-states of BIMP-Eaga, or the Brunei Darussalam-Indonesia-Malaysia-Philippines-Association of Southeast Asian Nations (Asean) Growth Area.
"Brunei Darussalam-Indonesia-Malaysia-Philippines-Asean Growth Area (BIMP-Eaga) is linked by a long history of trade and economic, with barter as a major form of commercial exchange," EO 64, inked on October 29, read.
"Barter is an ancient commercial practice among our people in the Southern Philippines, which continues to thrive and evolve as a living tradition until the present day," it added.
Section 104 of Republic Act (RA) 10863 or the Customs Modernization and Tariff Act provides that all goods imported into the Philippines shall be subject to duty upon importation, including goods previously exported from the Philippines, except as otherwise provided by law.
Under Article 5, Section 2(e) of RA 11054 or the Organic Law for the Bangsamoro Region in Muslim Mindanao, the Bangsamoro government shall exercise its duty over barter and countertrade, without prejudice to the general provision of the President.
The Asean Free Trade Agreement and the Asean Trade in Goods Agreement (Atiga) institute effective preferential tariff scheme, requiring member states to eliminate import duties on several products traded within the region, except for rice, corn and sugar.
Import duties were eliminated in 2010 for the Asean-6 composed of Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand, and in 2015, with flexibility until 2018, for Cambodia, Laos, Myanmar and Vietnam.
Duterte's order to revive barter in Mindanao was consistent with his administration's 10-point socio-economic agenda to promote rural and value chain development.
The President's EO also established the Mindanao Barter Council (MBC) to supervise, coordinate, and harmonize policies, programs and activities on barter in the southern Philippines.
The principal office of the MBC, which will be attached to the Department of Trade and Industry (DTI) for policy and program coordination, will be in Jolo, Sulu.
The council will be chaired by Trade Secretary, and vice chaired by Mindanao Development Authority chair and Bureau of Customs chief.
Other members include Finance, Foreign Affairs, and Agriculture departments; DTI's office in the Autonomous Region in Muslim Mindanao (Armm); Maritime Industry Authority; Philippine Coast Guard; and Philippine Ports Authority.
The MBC was tasked to facilitate the establishment of an enabling environment conducive to the growth and development of barter in Mindanao.
It was also mandated to formulate and issue rules and regulations on the registration of qualified traders authorized to engaged in barter, including imposition of reasonable registration fees and facilitation of all documentary requirements necessary to avail of the zero-tariff benefits under the Atiga.
EO 64 also instructed the council to issue comprehensive guidelines governing barter; review existing policies, rules and regulations of government agencies that affect all aspects of barter; and submit recommendations to the President and Congress.
Barter ports would be established in the ports of Siasi and Jolo in Sulu, and Bongai in Tawi-Tawi. Creation of other barter ports would be subject to the President's approval, upon the MBC's recommendation.
Under EO 64, goods traded under the barter system should enter Philippine territory only through barter ports. Products enjoying tariff protections or quantitative restrictions like rice, corn and sugar should still be regulated by applicable laws, rules and regulations.
Qualified traders of allowable barter goods should import or export only after securing the required goods declaration or export declaration, clearances, licenses, and any other requirements prescribed under existing laws. (SunStar Philippines)