Wednesday, July 22nd, 2009

May 2009

 

Top 10 Philippine Exports for All Countries: May 2009
(Year-on-Year Growth Percent)
Gainer		Losers
Other Products Manufacture from Materials Imported on Consignment Basis	6.20	Petroleum Products	-62.00
		Cathodes and Sections of Cathodes, of Refined Copper	-44.70
		Coconut Oil	-40.00
		Metal Components	-29.40
		Electronic Products	-26.80
		Articles of Apparel and Clothing Accessories	-26.50
		Tuna	-21.20
		Ignition Wiring Set and Other Wiring Sets Used in Vehicles, Aircrafts and Ships	-18.00
		Woodcrafts and Furniture	-16.40

 

 

 

 

MAY 2009 MERCHANDISE EXPORTS PLUMMETED BY 27.0 PERCENT

 

Export earnings in May 2009 dropped by 27.0 percent to $3.087 billion from $4.225 billion registered in May 2008.  Compared to previous month’s level, however, it rose by 10.1 percent from $2.803 billion in April 2009.  Aggregate merchandise exports from January to May 2009, on the other hand, declined by 34.5 percent to $13.814 billion from $21.096 billion reported a year earlier during the same five-month period.

 

Electronic Products amounted to $1.811 billion which accounted for 58.7 percent of the total export revenue in May 2009; lower by 26.8 percent from $2.474 billion recorded in May 2008.  However, month-on-month, it climbed to 7.6 percent from $1.684 billion in April 2009.

Articles of Apparel and Clothing Accessories accounting for a 3.6 percent share of the total accounting for a 3.6 percent share of total exports continued to be the RP’s second top earner in May 2009 with revenue valued at $110.31 million or a negative growth of 26.5 percent over last year’s figure of $150.16 million.   

Cathodes and Sections of Cathodes, of Refined Copper followed as the third top earner in May 2009 with total export earnings of $85.83 million or a share of 2.8 percent to the total export receipts.  It fell by 44.7 percent from $155.14 million in May 2008.

Woodcrafts and Furniture ranked fourth in May 2009 and contributing 2.6 percent to the total export receipts was with revenue amounting to $78.84 million. This value decreased by 16.4 percent from its year ago level of $94.27 million.

Ignition Wiring Set and Other Wiring Sets Used in Vehicles, Aircrafts and Ships (consisting only of electrical wiring harness for motor vehicles) with 1.9 percent share to the total export receipts ranked fifth with value posted at $57.11 million.

Rounding up the list of the top ten exports for the month of May 2009 were Other Products Manufactured from Materials Imported on Consignment Basis ($53.00 million and the only commodity group that exhibited a positive annual growth of 6.2 percent for May 2009); Coconut Oil (crude and refined: $38.14 million); Metal Components excluding brakes and servo brakes: $35.00 million); Petroleum Products including refined petroleum products, manufactured from crude petroleum oil imported on consignment basis: $33.78 million); and Tuna including fresh, frozen, prepared or preserved in airtight containers: $30.70 million).. 

Total receipts from the top ten exports reached $2.334 billion, or 75.6 percent of the total exports.

Fig. 1  Philippine Top Five Exports: May 2009 and 2008

 

Japan still emerged as the biggest overseas market for Philippine goods with a 16.4 percent share in the total value of merchandise exports in May 2009.  The US slid to second place with a 16.0 percent share.  China (9.8%), the Netherlands (9.3%) and Hongkong SAR (8.5%) completed the top five biggest sources of receipts from overseas sales in May.

 

Other top ten markets for May 2009 were Singapore, Republic of Korea, Germany, Taiwan and Malaysia.

 

Source:  National Statistics Office

Report release July 10, 2009

 

 

Wednesday, July 22nd, 2009

In order that exporters will not be charged 12% VAT on purchases made from suppliers of raw materials and packaging materials used for manufacturing export products, the suppliers should be VAT registered and should apply separately for Effectively Zero-rated VAT. This is in compliance with the provisions of the BIR Revenue Memorandum Order No. 7-2006. The phrase “Zero-rated VAT” must be printed on the Official Receipts/Invoices of suppliers to comply with the invoicing requirement of the VAT Law, according to Ms. Grace Lacerna, Chief, BIR – Audit Inspection,  Tax Exemption and Incentives Division (AITEID).

If exporters have paid the VAT for such purchases, they can apply for the tax credit on input tax of imported raw materials and packaging materials used in the production of export products within 2 years. BIR will issue Tax Credit Certificates (TCC) after audit of each application. These TCCs may be applied in the payment of Corporate Income Tax and Value Added Tax liabilities (except withholding tax). For more information, contact BIR-AITEID at Tel. Nos. 928 8117 / 926 5416.

Source: EDC Newsletter, 04-May-2009

Monday, July 20th, 2009

EXPORTERS MUST ADOPT RADICAL changes in doing business—such as diversification of markets and products, while the government should provide more assistance to the sector to ensure that the Philippines will not be left behind when the global economy takes off from the current turmoil.

This was according to the Bangko Sentral ng Pilipinas, which noted that the sluggish performance of the export sector could be blamed for the economy’s dismal performance in the first quarter.

“We are in an economic environment that markets and authorities have never experienced before. Pundits have said the world is moving into a ‘new normal.’ Therefore, if economic agents, including exporters, expect to survive the changing norm, it can’t be business as usual for them,” BSP Governor Amando Tetangco Jr. told reporters.

“New normal” is defined by experts as a post-crisis era when there is economic and financial stability, but at lower potential growth rates than before.

There is a consensus among economists that the crisis had already bottomed out and that the world was on its way toward stabilization, although in a very gradual manner. Tetangco, however, said work must be done to make sure the Philippines would be able to participate when the recovery happens.

A crucial effort, he said, was the development of the export sector, making it more resilient to external shocks. Given that potential growth of many economies may be slower than the pre-crisis period when recovery happens, he said exporters should implement measures to post decent earnings.

“Our exporters should look at new markets for trade and funding sources. On the part of the government, it should provide the appropriate incentives and build the infrastructure to attract investments,” Tetangco said.

At present, the government provides various fiscal incentives to the export sector. These include tax relief, and exemption from some fees and import duties on capital goods.

Michelle V. Remo