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The Department of Trade and Industry-Bureau of Import Services launched on May 31 a dashboard that will monitor imports of industrial commodities that may be subject to trade remedy investigation
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The Import Surge Monitoring System was introduced days before the Regional Comprehensive Economic Partnership came into effect on June 3
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The ISMS can guide businesses in formulating strategies, business plans, forecasts, and in projecting market demand to increase their competitiveness
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It will help stakeholders know when there’s a surge in imports that may potentially threaten the local industry and warrant a petition to impose safeguard measures
The Department of Trade and Industry-Bureau of Import Services (DTI-BIS) has launched on May 31 a dashboard that will monitor any surge in the volume of imports, specifically of industrial products.
Introduced before the Regional Comprehensive Economic Partnership (RCEP) came into force on June 2, the Import Surge Monitoring System (ISMS) will help stakeholders know when there’s a surge in imports that may potentially threaten the local industry and warrant a petition to impose safeguard measures, DTI assistant secretary Allan Gepty said in a press conference on June 2.
“Of course the influx or inflow of imported products is also a concern with the RCEP implementation. We made sure also that we will closely monitor the importation of certain products here in the country,” he said.
Trade Secretary Alfredo Pascual also in a press conference, said, “We have established an import monitoring system to detect any unwarranted surge in import so that necessary trade remedies or policy interventions can be made immediately.”
ISMS “will empower our industries and stakeholders to monitor the competing products being imported by some companies here in the Philippines,” Gepty added.
Gepty explained that availment of trade remedies is low because industries and businesses do not have immediate information on the volume of industrial products being imported by competitors. He added they may also lack the technical knowhow on how to analyze the import volume information.
The dashboard will guide businesses formulate strategies, business plans and forecasts, and project market demand to increase their competitiveness.
DTI is mandated by Republic Act (RA) No. 8800, or the Safeguard Measures Act, to protect the domestic industry from serious injury caused by a surge in imports. One of the documentary evidence required when filing for a petition requesting for safeguard measures is the submission of an increase in import of like or directly competitive product.
Under the law, Gepty said DTI can also moto proprio initiate an investigation when it sees a potential threat to the local industry.
The launch of the ISMS is in step with the entry into force of the RCEP, which some sectors fear would flood the domestic market with cheap imports.
RCEP is a free trade agreement (FTA) between the 10 member states of Association of Southeast Asian Nations (ASEAN) and its five FTA partners (Australia, China, Japan, New Zealand and Republic of Korea). It was signed on November 15, 2020 after years of negotiation that began in 2012.
The agreement covers a market of 2.2 billion people with a combined size of US$26.2 trillion or 30% of the world’s gross domestic product. The deal will improve market access with tariffs and quotas eliminated in over 65% of goods traded, and will make business predictable with common rules of origin and transparent regulations. This aims to encourage firms to invest more in the region, including building supply chains and services, and to generate jobs.
According to Trade Secretary Alfredo Pascual, RCEP would attract more investments and trade opportunities to the country.
RCEP also enables the implementation of advanced customs procedures for participating countries, allowing for more efficient and streamlined trade within the region.
Further, under RCEP, exporters will only need to be familiar with a single set of rules of origin (ROO) in order to avail of preferential market access, compared to multiple ROO for existing trade agreements.
With RCEP, micro, small, and medium enterprises can be integrated into global value chains through access to cheaper raw materials and a reduced barrier to entry for exporting due to a flexible certification process for availing of preferential trade arrangements.
On the other hand, MSMEs which are not directly involved in exporting will be able to easily provide their goods and services to value-added firms engaged in GVCs.
