TAMBULI Weekly Newsletter

Volume 12 Issue No. 16 16 May 2008

AGC FGP RECEIVES ENVIRONMENTAL PERFORMANCE AWARD

In recognition to their innovative system for environmental protection, Mr. Emmanuel Y. Go, president of the AGC Flat Glass Philippines, Inc. (AGC FGP) received a trophy from Executive Secretary Eduardo R. Ermita and Atty. Lilia de Lima, director general of the Philippine Economic Zone Authority (PEZA) during the 13th Investors Night, which was recently held at the World Trade Center.

AGC Flat Glass Philippines, Inc. emerged as one of the top companies awarded by PEZA out of 1,700 registered companies located in eco-zone areas. The criteria used for judging were: (a) Adoption / Implementation of Environmental Management System (EMS) based on ISO 14001:2004; (b) Sustained compliance with environmental regulations and non-issuance of any Notice of Violation (NOV) or Cease and Desist Order (CDO); (c) Demonstrated continuous improvement in waste management system, energy conservation, efficient materials and water use as well as, air pollution prevention, and (d) Implementation of its community outreach programs / projects geared toward environmental rehabilitation and protection.

UPDATES ON FPI - INTERNATIONAL TRADE AND POLICY COMMITTEE

The Bureau of International Trade Relations (BITR) is currently reviewing the ASEAN – India Free Trade Area (AIFTA) product list covering 5,224 tariff lines, of which 80% will go to Normal Track.

In this connection, the International Trade Policy Committee chaired Mr. Mario Jose E. Sereno will be holding a meeting today, May 16, 2008 (Friday) from 2:00-5:00 p.m. at the FPI Secretariat, Unit 701 Atlanta Center Condominium, #31 Annapolis Street, Greenhills, San Juan, Metro Manila in order to review the Sensitive Lists of the ASEAN-India Free Trade Area (AIFTA) and the Non-Agricultural Market Access (NAMA).

UPDATES ON FPI - ANTI-SMUGGLING COMMITTEE

Unknown to many, there are cases of fictitious importers and Customs Bonded Warehouse (CBW) operators accredited by the Bureau of Customs (BOC) who do not liquidate the goods they consumed in their manufacturing process. Worse, some of them have diverted their finished products into the domestic market instead of re-exporting their goods.

It is in this context that President Arroyo encouraged the participation of the private sector in the accreditation of importers and CBW operators. So much so that she instructed Commissioner Napoleon Morales to implement immediately the inclusion of FPI president Jesus Arranza in the newly re-organized Accreditation Committee of the Bureau of Customs last May 2, 2008 during the FPI General Assembly held at the InterContinental Hotel in Makati City.

At present, FPI in coordination with the BOC and other stakeholders, are monitoring the importation of various tax-and-duty-free goods through Customs Bonded Warehouses (CBWs). Some of these imported goods that pass through the customs bonded warehouses are ceramic tiles, textile and garments, steel products, resins, among others.

Recently, the CBW Committee members reviewed the various types of applications they received from importers and CBW operators. The following types of applications are listed below:

1. Application for Authority to Establish/Operate a Customs Bonded Manufacturing Warehouse : Conway Polysack Supply, Inc ., is currently leasing its manufacturing warehouse located at No.1515 Boston Ave., Meycauayan Industrial Subd., Mecauayan City, . Conway is registered with the Securities and Exchange Commission (SEC) as a manufacturer of plastic woven sacks and other

1 plastic products. The company’s raw material requirements are: (a) 1,181 MT of polypropylene or polyethylene, and (b) 196 drums (200L per drum of lubricant). The company’s finished products will be exported to Vietnam, Malaysia, Thailand, Myanmar, and Indonesia.

2. Application for Renewal of a CBW License : HANJIN Garments, Inc ., is now working for the renewal of its expired CBW No. G-1706, which is under the supervision and control of the Garments/Textile Manufacturing Bonded Warehouse Div., Port of Manila. Its plant/warehouse is located at No.74 Gatchalian Subd., Brgy. Banay-Banay, Cabuyao, . The company imports its raw materials on consignment basis and manufactures ladies’ pants, blazers and blouses for export to USA. This application was deferred pending further review by the Committee;

Another applicant is the RNB Garments, Inc ., operator of CBW No. G-1547 located at Sitio Burol, Brgy. San Juan, Taytay, . It manufactures men, ladies and children’s pants. The firm imports fabric and accessories. Deferred.

3. Application for Relocation of Plant / Warehouse : Asian Bonded Warehouse Corporation , for the account of Trendy Plastics Manufacturing, Inc., has requested the CBW Committee for the relocation of its existing warehouse from No. 753-D H-way, San Bartolome, Novaliches, QC to Block 2, Lot 2 and 3, Sterling Technopark, Brgy. Bancal, Carmona, ;

FAO MCGK Woodworks, Inc., is an accredited member of Luzon Rattan Industries, Inc. and operator of CBW No. C-1208. They are relocating its warehouse from F. Legaspi St., Maybunga, Pasig City to 33 Dela Cuesta St., Muzon, Taytay, Rizal.

4. Application for Accreditation as member of a ‘mother’ CBW operator : Universal Stainless Ware Manufacturing Co., Inc ., Republic Chemical Industries, Inc . and Accutech Steel & Service Center, Inc . are members of the Philippine Bonded Warehouse Services, Inc. which operate under CCBW No. 1415.

Republic Chemical Industries, Inc. manufactures industrial and household adhesives, sealants, specialty coatings, insulation, packaging and other related products. Universal Stainless Ware Manufacturing Co. Inc., on the other hand, manufactures various stainless wares for export. While Accutech Steel & Service Center, Inc . is engaged in the manufacture and fabrication of various steel products. All applications were deferred for further review.

5. Application for Transfer of Accreditation from one CBW Operator to Another : SEE’s International Food Corp. , for transfer of accreditation from Tradeport International Linkage Corp to Luzviminda Bonded Warehouse Services. The application was for its Davao plant located at Km. 22, Brgy Budbud, Bunawan, Davao City as member of Luzviminda Bonded Warehouse Services, which is the operator of CCBW No. 107 (also in Davao). SEE’s is an active member of Tradeport International Linkage Corp., operator of CCBW No. 1338 located at Manila for their registered plant in Meycauayan, Bulacan.

6. Application for Increase/Decrease of Importable Raw Materials : First Art Craft Corporation is the operator of CBMW No. 42 located at San Isidro, Talisay City, Cebu. The company’s monthly raw material requirements are: Acetate Rayon (1,600 kgs.), Foamlite Resin R (1,560 kgs.), Foamlite Resin T (1,560 kgs.), White Paper (30x30 mm, 240,000 pcs.), White Paper (312x20mm, 320,000 pcs.), White Paper - printed (176,000 pcs.), Wrapping Papers (312,000 pcs), among others.

Cebu Suntech Manufacturing Corp . is the operator of CBMW #55 whose warehouse is located at San Isidro, Talisay City, Cebu. It manufactures light box with stained glass design. The company requires the following raw materials on a monthly basis, to wit: (a) aluminum thin plate (1,320,000 pcs.), (b) Japanese paper, (c) plywood, polyester non-woven, (d) rayon braided blade, (e) rubber band, (f) sawn lumber and (g) woodworking glue, among others.

For inquiries or comments, please contact the FPI Secretariat at tel. no. 722-34-09.

2 SCHEDULED PUBLIC HEARINGS

House of Representatives

May 19, 2008 (Monday) Time & Venue Agenda WAYS & MEANS 09:30 AM HR 442 – Inquiry into the reported R.R.Andaya Hall irregularities in the issuance of tax credit certificates by the one-stop-shop tax credit and duty drawback center of the Department of Finance defrauding the government billion pesos worth of tax credit certificates (Deputy. Speaker Arnulfo Fuentebella)

HB 595 – Imposing a 10% ad valorem tax on flavored or coloured syrups exclusively used in the manufacturing of sofdrinks by inserting a new section, thereby amending for the purpose Chapter VI, Title VI of the National Internal Revenue Code of 1997, as amended (Rep. Danilo Suarez)

Substitute bill to HB 703 – Converting the Tagum National Trade Sc hool in the city of Tagum, province of into an institute of technology to be known as the Davao del Norte Institute of Technology (Rep. Raul Olaño)

Substitute bill to HB 1534 – Establishing the special economic zone and freeport in the pro vince of , creating for this purpose the Ilocos Sur Special Economic Zone and Freeport Authority (Rep. Ronald Singson)

GOVERNMENT REORGANIZATION 01:30 PM HBs 336, 2473 & 2698 – Rationa lizing jt. w/ HOUSING & URBAN RVM Bldg. Conf. Rm. the housing sector, creating the DEVELOPMENT 1&2 Department of Housing and Urban Development, defining its structure, and providing for its powers and functions (Reps. Joseph Emilio Abaya, Rozzano Rufino Biazon & Rodolfo Valencia) HB 402 – Omnibus Housing and Urban Development Act (Rep. Eduardo Zialcita) HB 429 – Creating the Department of Housing and Resettlement, abolishing the existing housing agencies, defining its powers and functions (Deputy Speaker Raul Del Mar) HIGHER & TECHNICAL EDUCATION 01:30 PM Technical Working Group jt. w/ BASIC EDUCATION RVM Bldg. Conf. Rm. 5

3 May 19, 2008 (Monday) Time & Venue Agenda NATURAL RESOURCES 01:30 PM HB 1403 – Instituting independent health RVM Bldg. Conf. Rm. and environmental assessment for all 9&10 mining projects, a mending for the purpose the Philippine Mining Act of 1995 (Rep. Carmencita Reyes) HBs 1793– Repealing RA 7942 or the Mining Act of 1995 (Rep. Teodoro Casiño)

HB 2869 – Amending Chapter IV Sec. 20 of RA 7942 by facilitating the approval as well as cancella tion of exploration permits (Rep. Al Francis Bichara) HB 3024 – Regulating the trading of minerals, amending chapter IX Sec. 54 of RA 7942 (Rep. Al Francis Bichara)

HR 74 – Directing the Department of Environment and Natural Resources to submit, within forty-five (45) days of receipt of this resolution, to the Committee on Natural Resources of the House of Representatives, in aid of remedial legislation, its detailed inventory, evaluation and recommendations on existing mining permits, contracts and agreem ents, wherein the permitees, grantees and parties to the contracts thereto are non- compliant with the stipulated terms and conditions, non-performing with respect to work obligations of applicable law, such that valid cause may exist to revoke, cancel or r escind existing mining permits, contracts and agreements, in order to open up opportunities for exploration and/or development of natural resources to bonafide investors with technical and financial capability (Rep. Luis Villafuerte)

May 20, 2008 (Tuesday) Time & Venue Agenda BANKS & FINANCIAL INTERMEDIARIES 09:30 AM HR 472 – Investigation into the RVM Bldg. Conf. Rm. establishment & operation of a fixed 9&10 income exchange (FIE) & over-the- counter (OTC) market for government securities (Rep. Luis Villafuerte)

HR 473 – Investigation into the effects on the government securities market of the registration and accreditation of the Philippine Dealing & Exchange Corporation as an FIE and OEC market operator (Rep. Luis Villafuerte)

4 HR 489 –Inquiry into the statutory basis of the Bangko Sentral ng Pilipinas (BSP) in establishing the special deposit account (SDA) as a monetary tool to mop-up excess liquidity and control the volume of credit (Rep. Luis Villafuerte) ECONOMIC AFFAIRS 09:30 AM Technical Working Group RVM Bldg. Conf. Rm. 6 ENERGY 09:30 AM Continuation of the deliberation on power RVM Bldg. Conf. Rm. rates 7&8 FOOD SECURITY 09:30 AM HBs 3711 & 3870 – Institutionalizing RVM Bldg. Conf. Rm. 11 state policies on food security (Reps. Eduardo Nonato J oson and Leonila Chavez) AGRICULTURE & FOOD 01:30 PM HB 3837 – Promoting corporate farming RVM Bldg. Conf. Rm. and providing incentives thereof 1&2 (Speaker Prospero Nograles)

Privilege speech - On the shortage of BT Corn seeds in the country (Rep. Mark Cojuangco) BASIC EDUCATION AND CULTURE 01:30 PM FOR CONFIRMATION RVM Bldg. Conf. Rm. 4 LEGISLATIVE FRANCHISES 01:30 PM HB 3729 – Granting the National Grid RVM Bldg. Conf. Rm. Corporation of the Philippines a franchise 9&10 to construct, install, finance , manage, improve, expand, operate, maintain, rehabilitate, repair and refurbish the nationwide transmission system and the grid in the Republic of the Philippines (Speaker Prospero Nograles) May 21, 2008 (Wednesday) Time & Venue Agenda INFORMATION COMMUNICATIONS 09:30 AM FOR CONFIRMATION TECHNOLOGY RVM Bldg. Conf. Rm. 7&8

TURKISH EMBASSY AND TUSKON INVITES FILIPINO ENTREPRENEURS AND INDUSTRIALISTS FOR THE TURKIYE-ASIA / PACIFIC FOREIGN TRADE BRIDGE II IN ISTANBUL, TURKEY

The Embassy of Turkey in cooperation with the Confederation of Businessmen and Industrialists of Turkey (TUSKON) is inviting Filipino businessmen and industrialists to attend the Turkiye-Asia / Pacific Foreign Trade Bridge II starting June 16-20, 2008 to be held at the WOW Convention Center in Istanbul, Turkey. Basically, the objectives of the activity are: (a) Keeping the global communication network open and initiate integration between Turkish and Pacific-based businessmen, following recent global economic developments; (2) Showing the methods related to the industrialization of family companies; and (3) Sharing the knowledge, experience and relations between Turkish and Pacific-based businessmen, which may be necessary in doing business in either national or international arena.

This year’s event include one-on-one business meetings between members of the Turkish delegation and representatives of Philippine companies who are interested to do business in Turkey (i.e., sourcing of products, product promotion and marketing, partnership building or joint venture agreements, investment opportunities, etc.)

5 The organizers of the activity represented in the Philippines by Turkish directors - Mr. Yusuk Ozdenir and Mr. Kadir “Kevin” Bulbul said that the delegates would have to shoulder their own airfare and accommodation costs in Istanbul, Turkey. The TUSKON members will sponsor the other expenses of the delegates that include meals and transportation around the cities in Turkey.

Founded in 2005, TUSKON is a non-government organization formed by regional federations of business communities, which represents 9,500 businessmen who are engaged in various activities of 124 business organizations.

Interested applicants who may wish to fill-up their Application Forms can e-mail [email protected] / [email protected] . Better yet, inquire directly at telephone nos. 724-21-77 / 744-31-58 / 723-73-07 .

WATCH OUT FOR PHILINDEX 2008

The Federation of Philippine Industries (FPI) is now formally organizing its 2 nd Philippine Industry Exposition (PHILINDEX 2008) which is slated on December 12, 13 & 14, 2008 (Friday, Saturday and Sunday), 10:00 AM – 9:00 PM at the Mega Trade Hall, SM Mega Mall, EDSA, Mandaluyong City.

This annual major event will showcase locally made products particularly those produced and manufactured by the 38 Industry Associations and 70 Corporate/Associate members of FPI. Part of the program for PHILINDEX 2008 would be the planned job fair during the occasion.

FPI Secretariat

Unit 701 Atlanta Centre Condominium, #31 Annapolis St., Greenhills, San Juan City Tel. Nos. 722-3409 721-9642 & 727-4359 i Fax No. 722-9737 6 E-mail: [email protected] i [email protected] i Website: www.fpi.ph