TAMBULI Weekly Newsletter The Official e-Newsletter of the Federation of Philippine Industries Volume 15 Issue No. 09 04 March 2011 ______________________________________________________________________________________ FPI SUPPORTS CONFIRMATION OF FINANCE SECRETARY PURISIMA BY THE COMMISSION ON APPOINTMENTS The Federation of Philippine Industries (FPI) is strongly supporting the confirmation of Hon. Cesar V. Purisima as Secretary of the Department of Finance. FPI Chairman Jesus Lim Arranza said “Secretary Purisima is very much qualified and competent as he had previously held the positions Finance Secretary and Trade and Industry Secretary under the previous administration.” Arranza also pointed out that Purisima is well versed in tax and revenue laws, rules and regulations having had a long stint as partner of SGV & Co. Arranza who is concurrently also the Chairman of the FPI Anti-Smuggling Committee stressed that it is only under the current leadership of Sec. Purisima that the Bureau of Customs (BOC) headed by Commissioner Angelito A. Alvarez is closely coordinating with the private stakeholders particularly the Federation in the government’s drive against smuggling. He also pointed out that government was able to slap PhP100 million deficiency duties and VAT against one of the 4 importers suspected of grossly undervalued palm oil. These four companies are now being audited by the BOC’s Post Entry Audit Group (PEAG) led by Atty. Jun Ligon and their importations are now being monitored, Arranza said. “The discovery of large scale ‘technical smuggling’ on the part of these scrupulous palm oil importers was due to the strong partnership of the Federation and the BOC”, Arranza said Arranza added that while the CIIF Oil Mills Group which he heads has imported and declared imported palm oil products at US$1,300/MT, these scrupulous 4 companies declared their importations at only between US$200 to US$300/MT or a difference of US$1,100. “These companies had clearly deprived government with at least the 12% VAT due on the difference,” Arranza said. This translates to millions considering the volumes of palm oil presently being imported into the country, Arranza added. In addition, Chairman Arranza said that the Federation through Industry Technical Expert (ITE) deployed in the various ports is currently assisting the BOC in detecting technical smuggling and protect revenues due the government in terms of taxes and duties. FPI, Allies Support PWPA Bid for Relief Thru Quick DENR Action on EO 23 The Federation of Philippine Industries (FPI) and other allies of the wood-based and wood-producing industry jointly voiced their support for quick action by the DENR in implementing Executive Order 23’s evaluation and compliance of legitimate wood producing companies of their agreements with the government through DENR. 2 EO 23, issued February 1, 2011, ordered for a moratorium on the cutting of trees from natural and residual forests as key provision, among other dictates that aim to curb the effects of flooding and assist in mitigating the effects of climate change in the country. It called for the creation of a Task Force that will draw up the implementing rules and regulations (IRRs) and lead in its enforcement. FPI Chairman Emeritus Meneleo J. Carlos, Jr. said that “ while there is a felt need for this order, there is also great harm being inflicted upon the wood industry and the legitimate suppliers of logs and implementers of industrial forest management agreements or IFMA many of which are residual forests. In other words, the proper implementation of IFMAs includes the programmed harvesting of natural trees within parameters approved by the DENR. The reason that there is chaos is because the order is all- encompassing, so that net effect is a complete ban on the sourcing of our wood supply other than “those planted by man” until IFMA compliance with the rules of DENR have been confirmed.” Three weeks since the EO 23’s effectivity, prices of wood supply have begun to rise due to market perception of scarcity. Plywood which sold for P280 per panel is now priced at P335 per panel. The construction industry, dependent on wood for its formworks and other structural tools, is among the industry sectors affected by the shortage of wood products. Carlos said “this can be quickly alleviated if the DENR will prioritize the implementation of EO 23, giving priority to the major suppliers of wood, which number very few. Even in the absence of Implementing Rules and Regulations, the existing IFMA’s should be given attention, with the larger ones given the priority of review to determine compliance with the contract terms. Because once the review is done and the IFMA holder is declared in compliance, the wood producer can restart his tree harvesting and supply of logs to the wood industry.” For the greening program called for in EO 23, Carlos suggests “the upland dwellers who occupy the forest lands be given the first opportunity to participate in the program. They are already properly situated. They can benefit from the supply of seedlings to plant...More than this the government can award our upland dwellers with property or tenurial rights to the lands they now occupy. It will convert them from being “kaingineros” into forest stewards and tree planters – because tree farming is a very profitable livelihood given minimal government support.” Finally, Carlos urges “our partners in industry to provide all the material support that they can to this greening program.” Other wood industry allies that have pledged support in the bid for quick implementation of the EO 23 IRRs include the Chamber of Mining Industries of the Philippines and the Foundation for Economic Freedom. Commitment Day against Human Trafficking The Visayan Forum Foundation, Inc. with support from the United States Agency for International Development has invited the Federation of Philippine Industries, Inc. to their Commitment Day Againts Trafficking in Persons on Tuesday, March 15, 2011, 8:00 am – 5:00 pm, at the Crowne Plaza Galleria Manila, Ortigas Avenue, Quezon City. Their theme entitled “Mobilizing private sector commitments and innovations towards lasting solutions to trafficking of Filipinos” They will also hold a Commitment Weeks Against Trafficking in Persons on March 13 to 18, 2011. 3 Countdown: 24 days to the 9TH FPI Golf Classic Tournament It’s only 24 days before the 9 th Annual FPI Golf Classic Tournament on Monday, March 28, 2011 at the Tagaytay Midlands Golf Course, Tagaytay City. The number of tournament sponsors continues to increase as of today: CO-PRESENTOR: SAN MIGUEL CORPORATION . MAJOR HOLE SPONSORS: AGC FLAT GLASS PHILS INC./FLAT GLASS ALLIANCE OF THE PHILIPPINES, COCA COLA BOTTLER’S PHILIPPINES, MANILA ELECTRIC COMPANY, ORIENTAL AND MOTOLITE MARKETING CORPORATION, PETRON CORPORATION, COLUMBIAN AUTOCAR CORPORATION, PHILSTEEL HOLDINGS CORPORATION, PILIPINAS SHELL PETROLEUM CORPORATION, PHILIPPINE LONG DISTANCE TELEPHONE/SMART COMMUNICATIONS, STEELASIA MANUFACTURING CORPORATION , SUBIC BAY METROPOLITAN AUTHORITY, UNILEVER FOOD SOLUTIONS and WHEALTH INC. HOLE SPONSORS: BANCO DE ORO, BAYANTEL, DOW CHEMICAL PACIFIC LIMITED, EAST-WEST SEED COMPANY, GENERAL METAL CONTAINER CORPORATION/ ORIENTAL TIN CAN & METAL SHEETS MANUFACTURING, JT INTERNATIONAL (PHILIPPINES), INC., LINA GROUP OF COMPANIES, MABUHAY VINYL CORPORATION, MAGSAYSAY TRANSPORT & LOGISTICS, PACIFIC PAINT (BOYSEN) PHILS., INC., SAN MIGUEL PUREFOODS, SAP PHILIPPINES, SSI SCHAEFER SYSTEMS PHILIPPINES, INC., SUMMIT RIDGE HOTEL, YUTIVO CORPORATION and TANDUAY DISTILLERS INC. HOLE-IN-ONE SPONSORS: ARMS CORPORATION OF THE PHILIPPINES (M1911-A2 CAL. 45 ACP & M1911-A2 9MM PARABELLUM), MITSUBISHI MOTORS PHILIPPINES CORPORATION (MITSUBISHI ASX ACTIVE SPORT CROSSOVER), UNIVERSAL MOTORS CORPORATION (NISSAN NAVARA), and NORKIS GROUP OF COMPANIES (SUNRISER) (SR100A MOTORCYCLE). DONORS: ASIA BREWERY, INC., CEMENT MANUFACTURERS ASSOCIATION OF THE PHILIPPINES, CHEMREZ TECHNOLOGIES, INC., CHENG BAN YEK, CIIF OIL MILLS GROUP, COATS MANILA BAY, DIAMOND HOTEL, DUSIT THANI MANILA, FUTURE TRADE, EDSA SHANGRI-LA, ISS INC., GINEBRA SAN MIGUEL, GLOBE BUSINESS, KIDNEY FOUNDATION, MACROPHARMA, MAKATI SHANGRI-LA, MAXICARE HEALTH CARE, MILEAGE ASIA, PAN PACIFIC HOTEL, PENINSULA HOTEL-MANILA, PHIMCO INDUSTRIES INC., PHILIPPINE ASSOCIATION OF BLACK IRON & GALVANIZED IRON PIPE & TUBES MFTRS., INC., PHILIPPINE STEEL ROLLING MILLS ASSOCIATION, PHILIPPINE SUGAR MILLERS ASSOCIATION, RFM CORPORATION, RI CHEMICALS CORPORATION, SOFITEL PHILIPPINE PLAZA, SL AGRITECH CORPORATION, TJ’s CLEAR ART, TWA, INC., (BIOENERGY), URBAN CHEF and WELDING INDUSTRIES OF THE PHILIPPINES. Golf players who may want to join the tournament are advised to make their reservations now. The registration fee is Four Thousand Pesos (P4,000.00) and covers the cost of the green fee, golf cart for two people, caddie fee, buffet lunch, raffle ticket and giveaway items. Golf players may contact Caren 4 Manzenares or Jojit Yap of the FPI Secretariat at tel. nos. 722-3409, 584-9642 & 727-4359; or through the following e-mails: [email protected], [email protected], [email protected] and [email protected]. The tournament is organized by the FPI Golf Committee Chaired by Chris J. Nelson, Philip Morris Philippines Manufacturing Corporation, currently also an FPI Director and Chairman of FPI Ways and Means Committee; Committee Vice Chair Henry A. Tañedo, Tin Can Makers Association, also the concurrent FPI Treasurer; The Committee members are: FPI Chairman Jesus Lim Arranza,