Globalization and International Trading (Import/Export)

[jpdm]

^US and Canada has a combined population of just 400 million plus but have land areas that are 2nd and 4th largest land areas in the world (China is 3rd).US and Canada combined perhaps have the resources (mineral, technology) that can surpass China. China is dependent on foreign investments, technology and exports. US and Canada are home to the best TNCs and MNCs in the world.

[Nabartek]

I agree. Also, I think the government should punish companies who "import" workers when there are willing workers. I mean, these companies are not only contributing to high unemployment among Americans and greencard holders but also duping H-visa holders with less than "standard" wages.

I think it was mwga who posted a link to that report...

[TambayBlues]

Originally Posted by Nabartek

I agree. Also, I think the government should punish companies who "import" workers when there are willing workers. I mean, these companies are not only contributing to high unemployment among Americans and greencard holders but also duping H-visa holders with less than "standard" wages.

I think it was mwga who posted a link to that report...

Hiring foreign workers is but one aspect of globalization which the Western nations invented. So they should learn to live with both positive and negative effects of it. The US government itself is partly to blame since due to over regulation which adds to the operating costs of private companies, not to mention high taxes both at the county, state and federal level which compels these TNCs to seek "creative" ways to stay afloat. America should be thankful that at least the foreign workers still pay taxes and Social Security which doesn't really provide any guaranteed benefits coz of the temporary immigration status of the workers among other things. The companies could also have outsourced those jobs instead of bringing foreign labor to the US and that would've been even worse.

[Nabartek]

Originally Posted by TambayBlues

Hiring foreign workers is but one aspect of globalization which the Western nations invented. So they should learn to live with both positive and negative effects of it. The US government itself is partly to blame since due to over regulation which adds to the operating costs of private companies, not to mention high taxes both at the county, state and federal level which compels these TNCs to seek "creative" ways to stay afloat. America should be thankful that at least the foreign workers still pay taxes and Social Security which doesn't really provide any guaranteed benefits coz of the temporary immigration status of the workers among other things. The companies could also have outsourced those jobs instead of bringing foreign labor to the US and that would've been even worse.

I am pointing out the workers that are hired by companies where there is still an abundant pool of GC holders and citizens themselves...

MGWA posted a video about it earlier. It's still in this thread.


The problem in the US is corporatism. The PAC is "legalized bribing" IMO.

[Mercato]

hell wrong thread.

[TambayBlues]

Originally Posted by Nabartek

I am pointing out the workers that are hired by companies where there is still an abundant pool of GC holders and citizens themselves...

MGWA posted a video about it earlier. It's still in this thread.


The problem in the US is corporatism. The PAC is "legalized bribing" IMO.

Just being a member of the able bodied pool of American or GC holder workers doesn't necessarily mean one has or still has the skills to do the job and that is one facet of the problem. There is also the serious skills shortage in the US to begin with because they are not producing the same number of engineering and science related graduates like they used to. And those that do have the skills would rather work for the wages they ask for rather than what the company is willing to pay. There are also workers who've been "deskilled" or lost their skills altogether due to long periods of unemployment. IMO, pay scales for skilled jobs should be dictated by market dynamics based on supply and demand and not by any legislation or regulation. Corporatism is but a natural offshoot of the need to organize and have some representation or voice in policymaking which is at the very heart of the principle of checks and balances in a democracy and is not by itself a "problem". It may be perceived to slow things down or even serve as an impediment depending on the situation but the resulting decisions based on consensus from different groups would have a firmer ground to stand on in the long run.

[jpdm]

Puro nalang bukang bibig ng DTI liberalization imbes na ayusin at protektahan ang domestic industries tulad ng ginagawa ng ASEAN nations!

Bobo at gago talaga ang DTI! Bobo talaga si Secretary Gregory Gago Domingo at mga tanga tulad ni Usec. Cristobal at stupidong Tariff Commission!

Mga BOBO kayo!!!

DTI okays lower safeguard tariff for testliner boards



By Czeriza Valencia
(The Philippine Star)
Updated May 04, 2012


MANILA, Philippines - The Department of Trade and Industry (DTI) has approved reduced safeguard duties on imported testliner boards as the local industry shows determination to compete.

Testliner boards are the basic material, usually made of recycled paper, used to produce corrugated boxes for the packaging of consumer products.

Trade Secretary Gregory Domingo has approved the reduced duties on imported testliner boards at P1,274.90 per metric ton for the period of April to June 12, 2012, and P1,211.15 per metric ton from June 13, 2012 to June 14, 2013.

The safeguard measure, initially issued in July 2011, aims to help the domestic industry adjust to import competition. Based on the Tariff Commission’s recommendation, a duty of P1,342.00 per metric ton was imposed during the first year of implementation.

The 2011 order on safeguards on testliner boards states that the definitive safeguard measure will be imposed for three years and will be liberalized on the second and third year of implementation after an annual review.

As provided in the Safeguards Act (RA 8800) and the World Trade Organization (WTO), the institution of safeguard measures are permitted in cases of import surge of like or directly competitive import products that threaten the domestic industry.

Trade Undersecretary for Industry Development and Trade Policy Adrian Cristobal Jr. said the government is committed to liberalize the economy but at the same time help the local industries to become competitive.

He said that since the implementation of the safeguard measure on imported testliner boards, domestic sales increased by 21 percent in 2011. Capacity utilization rate of manufacturing facilities rose by 13 percent and consequently, domestic production also increased by 13 percent last year.

“The domestic industry appears determined to compete, and has undertaken serious efforts to modernize and adjust,” said Cristobal.(Bobo!!)

During the implementation of the measure, the Tariff Commission monitors the adjustment plans of the industry.

http://www.philstar.com/Article.aspx...ticleId=803316

[jpdm]

Good news naman!

Concepcion to export refs to Asean starting next yr


By Czeriza Valencia
(The Philippine Star)
Updated May 04, 2012


MANILA, Philippines - Concepcion Durables Inc. (CDI), the maker of Condura refrigerators, will start exporting units to member states of the Association of Southeast Asian Nations (ASEAN) next year, therefore expanding its production capacity in its Cabuyao, Laguna facility.

In an interview during the launch of their new products in Makati Wednesday night, CDI president and chief operating officer Ton Concepcion said the firm will begin exporting to Vietnam.

“The brands that are in ASEAN countries are the brands that are also here but we beat them here so we can beat them there as well,” he said. “We will customize the refrigeration needs of their local market. Like here in the Philippines, we make refrigeration units that are fit for businesses.”

The five-year-old firm intends to expand their current market share to 50 percent from the current 34 percent in the next five years driven mostly by domestic consumption.

CDI targets sales of P4 billion this year, with 250,000 units from 170,000 last year.

Five years ago, CDI sales were placed at P500 million.

In the first quarter this year, sales grew 40 percent to 150,000 units from 30,000 units sold in the same period last year.

Concepcion said the company’s sales performance is helped by the aggressive growth in property development



“There were always people looking for refrigerators to put in their new places,” he said.

To respond to the expansion of its operations, Concepcion said CDI is expanding its production capacity next year to about 400,000 refrigerator units from the current 200,000 units. Its current workforce will also be increased from 2,000 workers to 3,000 direct workers.

The five-year-old Condura Durables is a unit of Concepcion Industries Inc. that manufactures and assembles airconditioning brands Condura, Kelvinator and Carrier.

Conception said the company will expand their refrigeration line for local distribution this year.

CDI on Wednesday launched the fifth generation of the Condura Negosyo Series and the Negosyo Style series, units that were designed for business use but can also be used as a stylish home appliance.

The Negosyo Series has three times for freezer space, two times more chiller space. It also promises to be energy efficient. It comes in a single door, two-door and freezer variants, while the Negosyo Style Series offers single door and two door options in dragon red, pristine white, satin cream,a nd silver chic colors. Prices start at P10,000.

http://www.philstar.com/Article.aspx...ticleId=803324

[april boy]

Good news from the only local brand ref manufacturer in the country. The Panatag issue gives us a good reason to develop our own manufacturing capability so that we will not be dependent on say Chinese or other foreign products.

[Greenfield]

I think its about time that the government should have a program to diversify our exports and encourage local businessmen to identify industries that can replace imports to generate more local employment.

[jpdm]

This will kill the Philippine economy if not stop or minimized drastically.

This article is worth reading.

Problems in Customs weaken drive vs smuggling



By: Michelle V. Remo
Philippine Daily Inquirer
12:56 am | Tuesday, June 5th, 2012
share6152

(First of three parts)

Smuggling, despite current efforts to at least curb it, continues to be one of the biggest headaches of the government and local industries.

While the government heavily relies on borrowings—domestic and foreign—to finance the cost of running the country, deliver social services and set up vital infrastructure, it is still losing potentially huge revenues yearly due to smuggling.

In a recent speech, President Aquino said oil smuggling alone would cost the state some P40 billion a year. Estimates of total revenue loss due to smuggling of goods into the country vary, but officials said the amount was so huge that, if collected, it could be more than enough to cover the government’s budget deficit, which could reach P200 billion this year.

Goods are brought into the country illegally or without paying the proper taxes either through outright smuggling or technical smuggling. The latter is done through misdeclaration or misclassification of goods imported or underdeclaration of the values of the products shipped in.

The list of smuggled products is long and the kinds of goods vary, from oil and vehicles to electronics and agricultural produce.

In a speech during the 110th anniversary of the Bureau of Customs (BoC), the President said smuggling was being perpetuated by the bureau, through its system and practices, and that instituting reforms there would be a difficult and complicated process. But Aquino vowed to step up the campaign against smuggling during his administration—offenders would be put behind bars and reforms set in place to end the culture of corruption in the bureau.

To date, however, no one has been put behind bars, although 44 cases have been filed against suspected offenders since August 2010.

Business hopeful

The Aquino administration’s promise to toughen its stance against smuggling failed to excite the people and the business sector, in particular. It was, after all, not the first administration to make such a promise. Still, businessmen hold to a glimmer of hope that, this time around, something more meaningful will be done.

Traders belonging to the Philippine Exporters Confederation (Philexport) and the Philippine Chamber of Commerce and Industry (PCCI) said smuggling not only deprived the government of much-needed revenue, it also posed unfair competition to local industries.

Although smuggling is a difficult problem and has deep roots in the economy, the business sector still hopes that the government will soon be able to make a dent in the campaign against smuggling, said Sergio Ortiz Luis, president of Philexport and chairman of PCCI.

Routinely, authorities and even business groups receive reports of smuggling activities, Ortiz Luis said. But the lack of manpower and resources, along with problems in governance, enabled smugglers to carry on with their activities.
There is also the lack of will power and resolve on the part of the government to eradicate smuggling, which allows this illegal trade to thrive.

“The problem [is], the Bureau of Customs does not have enough people to monitor smuggling in all the ports and airports in the country,” Ortiz Luis said.
One of the most common ways of bringing goods illegally into the country is through balikbayan boxes, which may contain commercial quantities of clothes, medicines, bags, shoes and even agricultural products. These goods are misdeclared “for personal consumption.”

“There are a lot of Chinese goods coming in through balikbayan boxes. Detecting smuggling is difficult when items come in through these boxes because they appear to be for personal consumption,” Ortiz Luis said.
In the Philippines, where at least 10 percent of households have family members working abroad, balikbayan boxes are a common thing to see in airports and seaports, and smugglers take advantage of this fact by making their goods appear to be for personal use.

Oil, steel and food

In terms of value, oil accounts for the bulk of the estimated revenue loss due to smuggling, BoC estimates showed. Of the 44 smuggling cases worth P60 billion filed by the BoC’s Run After the Smugglers (RATS) team from August 2010 to September 2011, oil products accounted for about P47 billion.

“Oil is one of the most commonly smuggled items because it is very easy to dispose of,” a customs employee, who asked not to be named but who had worked several times in anti-smuggling operations, told the Inquirer.

Oil products are either smuggled in outright or are shipped legally with the values underdeclared.

Smuggling cases involving oil products are often difficult to investigate. When the goods are shipped in, most of the time with the aid of unscrupulous Customs people, they are quickly sold even before the investigation builds up, the source said.

Steel is another commonly smuggled product, the BoC source said. With steel products, profits are high due to the current boom in construction.

Food products, which account for the biggest share in household spending of average Filipino families, are also among smugglers’ favorites.

Permits to smugglers

In times of lean harvests, the government allows cooperatives to bring in food products from abroad to ensure that there is adequate supply. The Department of Agriculture issues import permits to cooperatives so they can import food products. However, some of these cooperatives sell their import permits often to smugglers.

“Some cooperatives do not have enough capital to do the importation themselves, so they just sell their import permits. What happens is that smugglers take advantage of the opportunity by buying those import permits,” the Customs source said.

Smuggling activities become rampant when farm outputs are low.
There are times when smugglers of food items are caught and are made to pay the necessary duties and taxes, but there are also cases when they escape punishment partly due to corruption in the BoC, the source said.

The business sector believes a significant part of the smuggling problem can be traced to the country’s unguarded coastlines. It does not help that the Philippines is an archipelago, making it easy for smugglers to slip goods into the country tax-free through ports not regularly watched by the Coast Guard or Customs personnel, said Ortiz-Luis.

A number of smuggling cases also occur in freeport zones. These enclaves can bring in duty-free goods for processing and re-exportation, or for consumption within the zone. But the importers often bring the goods to local markets for sale.

Difficult fight

Customs Commissioner Rozzano Rufino Biazon, appointed to the BoC’s top post in September last year, admits that the system and practices in the bureau make it difficult to curb smuggling.

“Customs’ problems are severe and deeply rooted,” Biazon said in Filipino.
A recent audit ordered by Biazon revealed that a significant number of the estimated 17,000 names of BoC-accredited importers turned out to be fictitious.

This does not only mean serious inefficiency but also corruption in the bureau, said Biazon, a former congressman.

Smugglers use fake company names to evade detection, he explained. Customs personnel who go after smugglers often return empty-handed because they chase after dummy companies with false addresses.

“The big question is, ‘How were fictitious companies with fictitious addresses able to get accreditation from the BoC in the past?’” Biazon said.

The fact that the BoC is still not fully automated also contributes to the problem of smuggling.

Whenever customs employees deal with importers or their representatives face to face, rather than electronically, illegitimate transactions may occur, Biazon said.

Simply put, the bureau chief said, the BoC provides an environment conducive to smuggling.

To make matters worse, legitimate businessmen have a difficult time operating in the same environment.

“There are instances when legitimate businesses are given a hard time by BoC personnel. The companies are not smuggling goods, but they find it difficult to have their imported good released by the BoC because they do not give something (to customs personnel),” Ortiz Luis said.
(To be continued)

http://business.inquirer.net/category/editors-pick

[Parchie]

Originally Posted by Nabartek

I agree. Also, I think the government should punish companies who "import" workers when there are willing workers. I mean, these companies are not only contributing to high unemployment among Americans and greencard holders but also duping H-visa holders with less than "standard" wages.

I think it was mwga who posted a link to that report...

MNCs will always send their managers to any host country they are operating on. But sometimes, they will be masking their very own production workers as "technical advisers" to work here in our country. Seen that, worked with some before in my other life. To be honest, our kids are better workers than those I have rubbed elbows with!

For me, as long as there is reciprocity, everything gets balanced out. Not unless, our government agencies in-charge surrender our own rights to be working in our own land! Big, big problem as you just have painted!

[TambayBlues]

Looks like a global trade war is looming on the horizon due to EU Emissions Trading Scheme. I guess we won't be as affected since PAL ceased flying to Europe a long time ago but this issue might escalate further and depress worldwide air travel due to higher airfares being passed on to consumers by those airlines complying with it's regulations. It could also seriously complicate matters in what is an already fragile situation in the Eurozone which is still trying to come to grips with their economic crisis.

It seems to me that this ETS scheme is an effort by the Europeans to create an asset class out of nothing which can eventually be sold/traded and help finance the debt service of bankrupt economies like Greece etc. similar to what the US did when they invented Credit Default Swaps during the time of Greenspan.

Airline Industry: EU Emissions Trading Scheme Could Risk Trade War
http://www.guardian.co.uk/world/2012...?newsfeed=true

India-China Fail to Comply with EU ETS - Trade War on the Horizaon?
http://www.flightglobal.com/airspace...ade-84637.aspx

Russia Fires First Shot in EU Aviation Emissions Trade War
http://www.guardian.co.uk/environmen...missions-trade

China Halts 10 More Airbus Orders in EU Row
http://www.reuters.com/article/2012/...82E0P820120315

[Greenfield]

As other economies are fading and declining, China's economy is still growing. problem is with China's economy relying on its huge export receipts, what will happen to its economy if its export markets cannot anymore absorb its exports?

[Christendom]

Originally Posted by lgseccionph

PGMA calls for new world order in fight against global warming

COPENHAGEN, Dec. 18 (PNA) -- President Gloria Macapagal-Arroyo late Thursday issued an appeal for collective action by all nations to address the harsh effects of global climate change, as she stressed that participating countries must not leave the unprecedented summit “without a deal.”

for me this is not a good solution,,,mas lumaki pa nga pag meron ng new world order but this would be happens worldwide someday and gradually started it from these days- the new world order will enjoy to empire the whole world but for 3 and half years only, and then sa wakas the globalization would end over......

yeah and look at also our phils now,,,but then outsourcing is just only a temporary...

Originally Posted by Greenfield

As other economies are fading and declining, China's economy is still growing. problem is with China's economy relying on its huge export receipts, what will happen to its economy if its export markets cannot anymore absorb its exports?

yep, china with their arms forces that someday marches going to the megiddo valley in israel together with india and russia...china pls complete your numbers of cavalries that reaches to approximately 200M and then after on it your dooms is so draw near...sa wakas the globalization would end over

[Homie_Puan]

hope that the end is near for globalization.

[TambayBlues]

Good news and a step in the right direction. Though I have my doubts if this can be sustained even after a change of leadership in Malacanang it is a step in the right direction.


Customs RATS Secures first CTA Conviction

MANILA, Dec. 17 (PNA) — The myth that the Bureau of Customs (BOC) Run After The Smugglers (RATS) could not secure a single conviction from all the cases filed against all its accused before the Court of Tax Appeals (CTA) has been broken when a trader who misdeclared his vehicle shipment as replacement parts was convicted by the said court on December 12, 2012.

Customs Commissioner Ruffy Biazon has announced that the RATS group through the efficient handling/prosecution by the Legal Service Lawyers has successfully secured the conviction of Roel Paquit Sayson, guilty beyond reasonable doubt of the crime of Violation of Section 3601, in relation to Section 2530, paragraphs f, l (3), (4) and (5) of the Tariff and Customs Code of the Philippines.

Last February 7, 2008, Sayson was found with evident intent to defraud the Philippine government of legitimate duties accruing to it from merchandise imported into this country from Korea, on board the vessel S/S Maas Trader, to wit: 1.) declared Used Truck Replacement Parts – Bills of lading Nos.0058000965 and 0058000969 (both found to contain each 6 units of Kia Sportage) and, 2.) declared Used Truck Replacement Parts in Bill of Lading No.0058000970 (found to contain 3 units of Hyundai Galloper).

These were found to have been prohibited importation under Section 3 of Executive Order No. 156 and relevant customs laws, rules and regulations.

Estimated taxes and duties of the above-mentioned items amounted to One Million Seven Hundred Seventy Nine Thousand Seven Hundred Seventy Pesos and Sixty One Centavos (Php1,779,770.61).

The accused was meted a penalty of not less than eight years and one day, to twelve years imprisonment, and to pay a fine in the amount of eight thousand pesos (Php 8,000.00)

According to Biazon this sends a strong signal that the BOC is focused, with unrelenting unwavering campaign against Customs violators and other potential tax cheats and that violators of Customs laws, Rules and Regulations shall be dealt with strictly in accordance with the strong arms of the law.

Confident that this indeed bears a positive indication for smugglers to think twice before similar inadvertent acts are committed, Deputy Commissioner Atty. Peter M. Manzano, RCMG and Concurrent Chief RATS Group, accepted the challenge for a more vigilant pursuit of violators of the Tariff and Customs Laws. (PNA)

[hakz2007]

Handicraft exporters eye 10 pct growth in 2013 on new markets

MANILA - Handicraft exports are poised to grow by a tenth this year on the back of a growing market in Africa, Asia, Europe and South America for Philippine-made designs, the Philippine Chamber of Handicraft Industries Inc (PCHI) said.

In a statement over the weekend, PCHI president Dennis A. Orlina said handicraft exporters are eyeing more shipments to “high growth and emerging markets” to exceed 2012’s estimated $130-milion worth of exports.

Read more

[skyscraper2012]

Neda: Philippine export performance best in Asia
http://business.inquirer.net/102127/...e-best-in-asia

Philippine merchandise exports topped those of other Asian countries in the first 11 months of 2012, the National Economic and Development Authority (Neda) said Thursday.

Merchandise exports earnings in November grew 5.5 percent to $3.551 billion, from the $3.366 billion seen the previous year. This brought year-to-date exports to $48.026 billion—7 percent up from the $44.898 billion recorded in the same period of 2011, the National Statistics Office said.

The growth was due to higher value in shipments of such commodities as metal components, woodcraft and furniture, electronic products, cathodes, refined copper and ignition wiring sets, and other parts used in manufacturing vehicles, aircraft and ships.

The next-best performers were woodcraft and furniture ($271.32 million, 56 percent up from $173.9 million), apparel and clothing accessories ($113.7 million, 13.1 percent down from $130.76 million), and electrical wiring harness for motor vehicles ($109.7 million, 6.2 percent up from $103.31 million).
Metal components excluding brakes grew the fastest among the country’s top exports with shipments worth $129.05 million—163.5 percent up from $48.97 million.
Receipts from the top 10 exports reached $2.557 billion, accounting for 72 percent of the total.

Japan was the top destination of Philippine exports accounting for 20.8-percent share of the total with receipts worth $740.21 million.

The United States followed with $458.37 million in receipts, while Hong Kong received shipments worth $373.81 million.

[skyscraper2012]

Exports up 7% to $48.026 B in Jan-Nov
By Louella D. Desiderio (The Philippine Star) | Updated January 11, 2013 - 12:00am
http://www.philstar.com/business/201....026-b-jan-nov

MANILA, Philippines - Merchandise exports grew seven percent from January to November last year to $48.026 billion from the $44.898 billion posted during the same period of 2011,according to the National Statistics Office.

Export earnings of the country continued to rise in November from a year ago on the back of higher value of shipments of electronic products and other commodities, the NSO said.

The statistics agency reported yesterday the value of the country’s exports rose 5.5 percent to $3.551 billion in November from the previous year’s $3.366 billion.

Electronic products, the country’s top export, went up 13.3 percent to $1.734 billion in November from last year.

Other commodities which posted higher value of shipments were metal components, woodcrafts and furniture, cathodes and sections of cathodes, of refined copper and ignition wiring set, and other wiring sets used in vehicles, aircrafts, and ships.

Export receipts of metal components reached $129.05 million, which surged 163.5 percent from last year.

Business ( Article MRec ), pagematch: 1, sectionmatch: 1
Revenues from shipments of woodcrafts and furniture amounted to $271.32 million, 56 percent higher than a year ago.

The value of cathodes sections of cathodes, of refined copper reached $71.56 million increasing by about 10 percent from last year.

Payments for shipments of ignition wiring set and other wiring sets used in vehicles, aircrafts and ships, climbed 6.2 percent to $109.7 million from last year.

By country of destination, the NSO said Japan remained the major market for exports accounting for 20.8 percent of the total with revenues amounting to $740.21 million.

Philippine Exporters Confederation president Sergio Ortiz-Luis, Jr. said in a telephone interview yesterday that given the latest data, full-year exports for 2012 may not reach the 9 to 10 percent target as shipments of commodities are not growing as expected.

“Our expectation is high 6 or low 7 percent (growth) for the year (2012),” he said. - Well, their expectations had been met