TAMBULI Weekly Newsletter The Official e-Newsletter of the Federation of Philippine Industries

Volume 17 Issue No. 35 04 October 2013 ______

FPI CONDUCTED INDUSTRY ORIENTATION TO DOJ & NBI

The Federation of Philippine Industries (FPI) conducted an Industry Orientation to the Department of Justice (DOJ) and the National Bureau of Investigation (NBI) on September 27, 2013 at the Constellation, Diamond Hotel, . The orientation is in accordance with the Memorandum of Agreement (MOA) which was signed by the DOJ and the FPI during the anti- smuggling summit.

To beef up the government’s anti-smuggling campaign, FPI Chairman Jesus Lim Arranza shared that orientation was conducted to present the industry profile of the various Industry Associations of selected local manufactures to DOJ & NBI particularly on the: a) nature of the industry, b) collateral industry linkages and c) vital economic statistics relative to employment, imports, exports, and contribution to tax revenues.

He added that the current problems of the various industries were likewise discussed covering the a) nature and scope of smuggling problem, b) modus operandi of the smugglers, c) damage effect of smuggling to the Industry, and d) remedies/recommendations.

Chairman Arranza revealed that this is an important strategic Public Private Partnership (PPP) since the legal expertise of the DOJ prosecutors will be further complemented by the support of the local manufacturers who are hardest hit by smuggling. The various experiences of the different manufacturing sectors on the ground as well as data gathering will be shared by the latter particularly on the modus operandi of the unscrupulous importers. Moreover, the FPI will be assisting the DOJ & NBI in the building, prosecution, and monitoring of these cases under the direct control and supervision of the DOJ, Chairman Arranza added.

FPI issues concern on cigarette smuggling

The Federation of Philippine Industries (FPI) issued its concern regarding the new modus operandi on cigarette smuggling in the country.

A small player in the cigarette industry which used to corner a miniscule portion of the market has made a meteoric leap and now has 18.7% share of market. Interestingly, this company sells its products to retailers at P16.00 per pack. Simple arithmetic will show that after paying excise tax of P12 and the 12% VAT, the company is left with P2.30 to cover direct material cost, factory overhead and operating margins. Indeed, it is impossible to manufacture low-priced cigarettes at that amount especially for a small scale manufacturer with lower economies of scale.

Hence, this unfair practice can undercut the competition thru low prices which is made possible through illicit trade practices. Independent market research study shows that the company’s volume in the trade is much higher compared to the actual withdrawals it reports to the Bureau of Internal Revenue.

Moreover, there is possible under-payment of customs duties and taxes, under-valuation of raw materials, and diversion of raw materials imported under warehousing entries which were used for domestic production without payment of duties and taxes. If proven true, this practically creates an unlevel playing field. Worse, it is also inimical to the stability of the country in general considering that it is cheating on the excise tax which is due to the government to fund its various sensitive programs.

TARIFF COMMISSION PUBLIC HEARING ON THE APPLICATION FOR EXTENSION OF SAFEGUARD MEASURE AGAINST THE IMPORTATION OF STEEL ANGLE BARS

Pursuant to paragraph 2, Section 16 (Monitoring) of R.A. 8800 otherwise known as The Safeguard Measures Act, a public hearing will be held at the Conference Room of the Tariff Commission, 5 th Floor Philippine Heart Center Building, East Avenue, Diliman, , on October 10, 2013 at 9:00 a.m.

All interested parties shall be given the opportunity to be present, to present evidence and to be heard with respect to the progress and specific efforts made by the domestic steel angle bar industry to facilitate adjustment to import competition.

For particulars, please inquire from the Task Force on Safeguards Investigation on Steel Angle Bars (headed by Ms. Angelita R. Fernando) at Tel. Nos. 928-8419 and 926-8731 .

The 3 RD Philippine Manufacturers and Producers Summit:

The Federation will stage the 3 rd Philippine Manufacturers and Producers Summit - adopting the theme “Inclusive Employment through Industrialization” on November 14, 2013 (Thursday) 9:00am to 3:00pm at the Hotel InterContinental Manila, City. This year’s summit will also be highlighted with the Sustainable Development Recognition Awarding.

FPI Annual Sustainable Development Recognition Ceremony:

The Federation of Philippine Industries (FPI) will hold its Annual Sustainable Development Recognition Ceremony on November 14, 2013, Thursday, 9:00am to 3:00pm at the Hotel InterContinental Manila. The said award will be given to Corporations, Industry Associations and Local Government Units (LGUs) that have demonstrated exemplary practices in the following categories, namely: Corporate Social Responsibility (CSR), Management of Waste, Optimum Use and Recycling of Resources and Health and Safety. The deadline for the submission of the survey forms will be on or before October 14, 2013 at the FPI Secretariat. Industry Associations and Corporations which are not members of the Federation are also free to participate in this event. The completed forms will be forwarded to the respective judges for each criterion. The judges will then decide who among the applicants will be recognized as outstanding in each area of Sustainable Development.

For particular, please feel free to contact the FPI Secretariat at Tel. No.722-3409, 584- 9642 or email us at [email protected] , [email protected] , [email protected]

Proclamation 656

Malacañang declared October 28, 2013, Monday as a special (non-working) holiday throughout the country for the Synchronized Barangay and Sangguniang Kabataan (SK) Elections.

REGULAR HOLIDAYS AND SPECIAL DAYS FOR 2014

On September 25, 2013, President Benigno S. Aquino III issued Proclamation No. 655 declaring the following Regular holidays, Special (non-working) days, and Special Holidays (for all schools) in 2014:

A. Regular Holidays

1) New Year’s Day - January 01 (Wednesday) 2) Araw ng Kagitingan - April 09 (Wednesday) 3) Maundy Thursday - April 17 4) Good Friday - April 18 5) Labor Day - May 01 (Thursday) 6) Independence Day - June 12 (Thursday) 7) National Heroes Day - August 25 (Monday) 8) Bonifacio Day - November 30 ( Sunday) 9) Christmas Day - December 25 (Thursday) 10) Rizal Day - December 30 (Tuesday)

B. Special (Non-Working) Days

1) Chinese New Year - January 31 (Friday) 2) Black Saturday - April 19 3) Ninoy Aquino Day - August 21 (Thursday) 4) All Saints Day - November 1 (Saturday) 5) Additional special (non-working) days - December 24 (Wednesday) - December 26 (Friday) 6) Last Day of the Year - December 31 (Wednesday)

C. Special Holiday (For All Schools)

1) EDSA Revolution Anniversary - February 25 (Tuesday)

The proclamations declaring national holidays for the observance of Eid’l Fitr and Eidul Adha shall hereafter be issued after the approximate dates of the Islamic holidays have been determined in accordance with the Islamic calendar (Hijra) or the lunar calendar, or upon Islamic astronomical calculations, whichever is possible or convenient. To this end, the National Commission on Muslim Filipinos (NCMF) shall inform the Office of the President on which days the holidays shall respectively fall.

LEGISLATIVE COMMITTEE HEARING

Senate

Monday, October 7 Time & Venue Agenda

Environment & Natural 10:00 A.M. Organizational Meeting Resources Sen. L.M. Tañada Room 2/F Right Wing, Senate Briefing by the Department of Environment and Natural Resources on the status of the environment in the country and the Agency’s priority legislation/s

Briefing by the concerned government agencies and stakeholders on the status of the rehabilitation of Manila Bay

Wednesday, October 9 Time & Venue Agenda

Finance 10:00 A.M. Continuation of the briefing by the Sen. C.M Recto Room Sen. Development Budget Coordination Committee J.P. Laurel Room 2/F Right (DBCC) on the 2014 National Expenditure Wing, Senate Program (NEP)

House of Representatives

MONDAY, 07-OCTOBER-2013 Committee/Sub-Committee Time and Venue Agenda/Resource Person HIGHER & TECHNICAL 09:30 AM Technical Working Group meeting on: EDUCATION Conf. Rms. 1&2 RVM Bldg. HBs 28, 379 & 441 – Establishing and providing for free college and technical- vocational education (Reps. Raul Del Mar, Christopher Co and Antonio Tinio) HB 1289 – Establishing a voluntary student loan program by banks and government financial institutions, providing incentives therefor (Rep. Roman Romulo) HBs 29, 41, 417, 962, 1596, 2351 & 2710 – Providing scholarship grants to students in technical-vocational and tertiary/college education (Reps. Raul Del Mar, Mariano Piamonte Jr., Arthur Yap, Francisco Ashley Acedillo, , Alfredo Vargas III, Marcelino Teodoro and Catalina Leonen- Pizarro) HBs 265, 1191 & 2364 – Strengthening the ‘Study Now Pay Later Plan’ for post- secondary education (Reps. Eric Olivarez, Marcelino Teodoro and Mariano Piamonte Jr.) HBs 543, 1260, 1531, 1767, 2358 & 2405 – Requiring all colleges and universities to provide scholarship grants to a portion of their student population who are poor but deserving students (Reps. Lani Mercado-Revilla, Reynaldo Umali, Marcelino Teodoro, Joseph Gilbert Violago, Evelio ‘Bing’ Leonardia and Neil Benedict Montejo) HBs 600 & 1630 – Creating a National Student Loan Program for college education for the poor and appropriating funds therefor (Reps. Erlinda Santiago and Rufus Rodriguez) HB 643 – Instituting a Public Administration and Governance Scholarship Program (Rep. Christopher Co) HB 1398 & 2876 – Creating a National Student Loan Board to formulate and implement a national student loan program for the poor, and appropriating funds therefor (Reps. Harlin Abayon and Diosdado Macapagal Arroyo) HBs 1482, 1867, 2468, 2578, 2775 & 2897 – Providing for a comprehensive and unified system of student financial assistance for higher and technical education, thereby rationalizing access, appropriating funds therefor (Reps. Bellaflor Angara-Castillo, Romero ‘Miro’ Quimbo, Marcelino Teodoro, Mariano Piamonte Jr., Roman Romulo and Mark Villar) HB 2874 – Institutionalizing a 'Tulong- Dunong Program' for students of underprivileged families, appropriating funds therefor (Rep. Diosdado Macapagal Arroyo) WEDNESDAY, 09-OCTOBER-2013 Committee/Sub-Committee Time and Venue Agenda/Resource Person JUSTICE 09:00 AM “Comparative International Criminal Nograles Hall SWA Bldg. Law†(Lecture by Dr. Ulrich Siebel, Director of the Max Planck Institute for Foreign and International Criminal Law, Freiburg, Germany)

Prepared by the FPI Secretariat

Unit 701 Atlanta Centre Condominium, #31 Annapolis St., Greenhills, San Juan City Tel. Nos. 722-3409, 584-9642 & 727-4359 i Fax No. 722-9737 E-mail: i [email protected] i [email protected] [email protected] [email protected] iWebsite: www.fpi.ph