Friday, February 11, 2011

Trade Requirements in Philippines and South Korea


Trade Requirements
  1. Documentation Requirements
Philippines
The following are the documentary requirements needed when exporting:
1.    Export Declaration Form (ED) – should be filed up before shipment of goods. It is available in Bureau of Export Trade Promotion. (BETP), Department of Trade and Industry (DTI), Bureau of Customs Processing Unit, and PhilExport offices.
2.    Commercial/Proforma Invoice – Document attached to the Export Declarations, prepared by exporter including the full details of a shipment.
3.    Packing List
4.    Export Commodity Clearance/Export Permit – If the product or buyer requires this permit, can secure from the proper government commodity office, in our case from Bureau of Food and Drugs and Department of Agriculture.
5.    Certificate of Origin – shall refer to the exporter, certified by the Bureau of Customs that his exports complies with the origin requirements specified.
6.    Bureau of Fisheries and Aquatic Resources (BFAR) – must have Hazard Analysis Critical Control Point (HACCP) compliance. Export permit issued by BFAR’s central office.

           

Korea
            The following are the documentary requirements needing when shipping to Korea:
1.    Invoice
2.    Bill of Lading or Airway Bill – issued by an ocean carrier; it is a receipt for goods and contract for carriage.
3.    Packing List
4.    Certificate of Origin – not required if there is “Made in the Philippines” on the label.
5.    Ingredient List
6.    Processing Method
7.    Certificate of Production Date
8.    Packing Material
  1. Regulatory Environment
Philippines
            Regulation of business. For sole proprietorship they are required to register at the Bureau of Trade Regulation and Consumer Protection (BTRCP) and for the partnership and corporations they are required to register at the Securities and Exchange Commission (SEC).
            Competition Policy.  To encourage free market enterprise is the general theme of the Philippine law on competition policy.
            Price Controls. Through the supply and demand and the interplay of market forces the prices in the Philippines are determined. The government can enforce controls on the price for the consumers on the prime commodities to remain the prices reasonable to the consumers Under Price Act of 1992. This does not deny valid business a fair return on its investment. Through the Department of Commission government also monitors domestic petroleum prices.
            Monopolies and antitrust. The Philippine Constitution entails the government to regulate or prohibit monopolies if that is in the public interest. Based on the Revised Penal Code of 1930, the central issue here is not whether a monopoly exists, but whether the monopolist uses its power to alter the price of a product or to restrain free competition in the market. These also prohibit any combination or restrain trade to artificially prevent free competition in the market.
           
Acquisition and mergers. There are no restrictions on acquisition, mergers or consolidations, unless they will result in unfair competition, will restrain trade to artificially prevent free competition in the market, or will result in foreign ownership that violates Foreign Investment Negative List. Mergers involving two corporations must be approved by a majority vote of the board of directors and trustees, by the stockholders owning ore representing at least two-thirds of the outstanding capital of the constituent corporations, and by the SEC.
            Imports and exports. Philippines permit the importation of all merchandise. The importation of certain commodities is, however, regulated or prohibited for reasons of public health and safety, national security, international commitments, or to facilitate the development or rationalization of local industry. On the export side, the Trade and Industry Development Council has a mandate to define the overall trade development strategy for the country based on the development of a strong domestic industrial base and directed towards global competitiveness.
            Consumer protection. Consumer Act of the Philippines of 1992 establishes standards of conduct for business and industry and provides protection of the interests and general welfare of consumers. It protects consumers against hazards to health and safety, and against deceptive, unfair and unconscionable sales acts and practices.
           
Pollution Control. Philippine Clean Air Act of 1999, primarily administered by the Department of Environment and Natural Resources (DENR), establishes the maximum permitted emission levels for hazardous air pollutants. The penalties for violating the pollution standard include fines, and the suspension of operations until proper environmental safeguards are put in place.
To protect the country’s water bodies from pollution from land-based sources (industries and commercial establishments, agriculture and community/household activities is the aim of the Philippine Clean Water Act of 2004 (Republic Act No. 9275).  To prevent and minimize pollution through a multi-sectoral and participatory advance in relating to all the stakeholders they provided a broad and integrated strategy.
            Patents, Trademark and Copyrights. Intellectual Property Code of the Philippines sets out the role of the intellectual property office. The code is consistent with the intellectual property law used internationally, and affords traditional right and protections to the owners of intellectual property. (Source: Doing Business and Investing in the Philippines, 2002)
South Korea
Regulation of Business. Korea Investment Service Center is offering a complete and supportive service such as representation in civil petition related affairs and investment consultation for foreign capital invested companies and for foreign investors. It is established at the Korea Trade and Investment Promotion Agency.
Competition Policy. Fair trade laws and policies aimed to establish fair and free competition among enterprises by creating a pro-competitive market structures and securing equality in trading practices. Thus, it is the basic principle of market economy. These are practiced in persuading modern business activities, protecting consumer rights and interests, and supporting a balanced development of the national economy.
Price Control. In South Korea, there is no price control.
Monopolies and Antitrust. Anti-monopoly and Fair Trade Act (AFTA) passed in 1980 is the basic antitrust statute of Korea.  Prohibiting abuse of market-dominant positions, avoiding too much concentration on economic power and controlling improper concerted and unfair business is a manner of encouraging fair and free in the market by the AFTA. Thus, it will motivate creative business activities in protecting consumers and promoting balanced development of the national economy. The ultimate goal of Korean antitrust law is to improve consumer welfare and economic efficiency like in most other nations.
Imports and Exporter. The External Trade Act super-sides three laws, which are the Export Union Act in 1961, the Trade Transaction Act of 1967 and the Plant Export Promotion Act of 1978. It has been effective from July 1, 1987. To supply a new system for dealing with trade that will facilitate the government to deal efficiently with the active trade environment at home and abroad is the intention of the new law Basic intentions of the Act are:
-          The private sector that carries out both imports and exports, as part of a transition from government-management trade to trade should phase out the restrictions on it.
- In order to reduce trade conflicts and problems with trading partners, they should guarantee the maximum possible extent that trade will be conducted in a fair and ethical manner.
- In dealing with the effects of import flow arising after the liberalization, they should create an institutional framework.
-To easily understand and apply the system of laws by the people involved in trade they should simplify and consolidate the system.

Consumer Protection. Since its enactment in 1980, the Consumer Protection Act has been a basic law in the area of Consumer Protection. Planning
·         Local government and businesses and the role of consumer organization should provide the obligations of the state to protect the fundamental rights and interests of consumers. To specify the organization and purpose of the Korea Consumer Protection Board (KCPB).
·         To make the general stipulations of execution and preparation of the policies for consumer protection.
     Pollution Control. The management of urban air quality is very difficult because Seoul and its vicinities take up only 12 % of the total national land area yet it accounts for 46% of the total population and vehicles. The social costs imposed by air pollution arrived at 10 trillion Won (8.7 billion USD) and the air pollution level in the region marks 1.7-3.5 times higher than those in other major cities globally. The Ministry of Environment being against these serious challenges, has been promoting the Special Measures for Metropolitan Air Quality Improvement that includes total air pollution load management, emission trading system, and mandatory purchase of low emission vehicles.
 In December 2003, the Special Act on Metropolitan Air Quality Improvement legislates due to such efforts By 2012 they plan is to invest 6 trillion Won (5.2 billion USD) to promote the Special Act in stages, which will direct to a important reduction of major pollutants including particular matters and sulfur oxides.
·          The Ministry of Environment has set the emission standard on each pollutant and is expanding the restrictions in stages to control point pollution sources (e.g. particulate matters, SOx, NOx) coming from the industrial sites. To make a stronger control over the large-scale industrial activities, the industrial sites were categorized into five groups according to the amount of annual emission discharge.
Patents, Trademarks and Copyrights. On December 13, 1961 Law No. 950 the Korean Patent Law was enacted. It has been revised many times in answer to the changing conditions in industry and intellectual property, both domestic and international since then. The most recent amendments were made to correspond to the Korean intellectual property laws with the Trade-Related Aspects of Intellectual Property Rights (TRIPs) Agreement, which are effective as of July 1, 1996. The stipulation of a twenty-year patent term is of particular note. The changes to the opposition procedure, effective July 1, 1997, and the changes to the trial system, effective March 1, 1998 were included in the upcoming amendments.

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