FPI–PSMA–TESDA OPLAN SKILLS & COMPETENCY UPGRADE, THE NEXT STEP FORWARD

The PSMA-TESDA-FPI Skills Mapping Workshop, one of the core activities of the Committee On Academe, under the Chairmanship of Director Ramon C. Agustines, was successfully carried–out last June 17, 18 & 19, 2008 in Bacolod City, Negros Occidental.

The Project intends to enhance the skills and competencies of PSMA’s human resources vis-à-vis the continuing modernization of their sugar milling/refining machineries and facilities. This is being accomplished by availing of TESDA’s training expertise and resources, as coordinated by the FPI.

The accomplishment of the 3–day workshop indubitably compels the stakeholders to proceed to the next stage of the training intervention, which is the formulation of two new training regulations vital to the sugar industry. Witnessed by the dynamic and forbearing involvement of several of PSMA’s members, i.e. Central Azucarera De La Carlota, Inc., Central Azucarera Don Pedro, Inc., Central Azucarera De Tarlac, Busco Sugar Milling Company, Hawaiian–Philippine Company, Lopez Sugar Corporation and Victorias Milling Company, Inc., the next stage would now require experiential and technical inputs coming from the shopfloor experts (the mechanics, operators and technicians) of the sugar milling establishments.

FPI WEBSITE, ITS JOBSEEKERS SECTION BEING GEARED UP FOR

USER ACCEPTANCE TESTING

The FPI Committee On Academe, chaired by Director Ramon C. Agustines is confident that the re-launching of its improved FPI Website, concurrent with its FPI Jobseekers Section, will positively redound to the benefit of its members on two levels, particularly –

the system will essentially expedite harmonizing 1) the graduates of universities and colleges, seeking engagement, with that of the “white collar” human resources needs of the industry, i.e., the FPI member companies. This will be operationalized, at the outset, with the University Of The East, given that a memorandum of understanding exists between the two entities, specifically addressing aforementioned concern. Correspondingly, the same system is designed so as to ensure outstanding ease of accessibility, operation and user friendliness, for the employers, while posting their job vacancies, as well as, graduates, while uploading their resumes.

FPI SCHEDULES MEETING WITH DOE SECRETARY FOR

ENERTECH In view of the oil and energy crisis, FPI President

Jesus Arranza introduced Mr. Guillermo Simeon of Enertech Systems Industries, Inc to Secretary Angelo Reyes of the Department of Energy (DOE) last June 16, 2008 held at the Office of the DOE Secretary, PNOC Building, Fort Bonifacio Complex, Taguig City. The other attendees in the meeting were Mr. Roberto Zuniga, Atty. Rufino Margate, Jr., and Mr. Dodgie Quitangon.

turn to page 4 and 5

turn to page 7

turn to page 7turn to page 7

8

FPI Director/Vice-President For

Agriculture, V. Francisco Varua

(left) expounding the potential benefits

of TESDA’s role in enhancing the skills/

competencies of the sugar industry’s

workforce. Directors Ramon C. Agustines,

FPI Committee On Academe Chairman

& FPI President Jesus Lim Arranza, (middle & right, respectively)

listen.

Skills Mapping Workshop In Action !!! - the activity during its paces.

from left to right: Guillermo Simeon - Enertech CEO/President; Angelo Reyes - Department Of Energy (DOE) Secretary; Jesus Lim Arranza - FPI President; Atty. Rufino Margate Jr. - FPI Secretary General; and Roberto Zuñiga - Enertech Vice-President

EXECUTIVE EDITORS:

Jesus L. Arranza;

Henry A. Tañedo;

George S. Chua;

Renato R. Ermita.

Conributors:

A. Articles-Jesus L. Arranza

FPI President & Chairman of Anti-Smuggling Committee

Atty. Rufino M. Margate Jr. Secretary General

bernard m. felicianoTechnical Staff-Media Affairs

Gregorio QuitangonTechnical Staff

B. Technical Inputs-

Judanito F. Yap IT Specialist

C. General Services-Ellen R. Cusilit

Communications and Follow-up Calls

Judanito F. Yap &

Allan A. Salvador P.O. Box Relocation and

Materials Distribution

Jocelyn C.Delos Santos; Accounting Functions

The TAMBULI Magazine, entered as a third-class mail matter at the Makati Central Post Office and published once a month, is the official publication of the Federation of Philippine Industries, Inc., with editorial office located at Suite 701 Atlanta Center, Annapolis St. Greenhills, City San Juan, Philippines. Tel. Nos. 722-3409; 721-9642; 727-4359; Fax: 722-9737 ; E-mail: fpi@fpi.ph or fpi@philonline.com; Website: http://www.fpi.ph

The views expressed in any articles or items appearing in the magazine, are those of the authors and do not necessarily reflect those of the FPI Management.

To contribute any articles, whether in the form of an industry situation analysis, position papers, or feature articles touching on issues related to industry/trade, banking and finance, environment, labor, energy and so forth, please contact the FPI Secretariat in the same address given above.

T a m b u l i

E d i t o r i a l B o a r d

For queries on subscription and/or to advertise, please contact the FPI Secretariat in the same address / contact numbers given above.

Ricar Jay M. LingatongConcept and Layout-Design

Cover & PagesPrinters

PORTAL REQUIRES ACCESS TO IFM AND THE USE OF MASTER BILL OF LADING AND ORIGINAL INVOICE

During the recent meeting of the Ports Transparency Alliance (PORTAL), the revenue watchdog created by President Arroyo to ensure greater transparency and accountability in tax collection, FPI President Jesus Lim Arranza submitted to DOF Secretary Teves several disturbing documents exposing the discrepancy in the inward foreign manifests (IFM) / Master Bill of Lading (MBL), House Bill of Lading (HBL) and the actual contents of the container. It was quite amusing that garlic was declared in the MBL while the HBL declared it as hand tools. When the apprehending officers inspected the container, they discovered neither garlic nor hand tools but onions - a regulated agricultural product.

According to Mr. Arranza, what is more alarming is that various BOC Departments including the Office of the Commissioner were furnished a copy of the MBL, a copy of the invoice and HBL which they could readily compare and validate and yet, it still slipped the BOC.

In this context, Secretary Margarito Teves instructed the Bureau of Customs (BOC) to provide the Department of Trade and Industry (for non-agricultural products) and the Department of Agriculture (for agricultural products) a copy of the IFM / MBL. He also directed the BOC to issue a Customs Administrative Order to use only the MBL and original invoice to prevent smuggling. Presently, the BOC allows the consolidators to submit HBL and photocopy of the invoice in lieu of the MBL and original invoice (see Figure 1. Consolidators’ Industry)

Figure 1. Consolidators’ Industry

Shipping Lines Consolidators

Importers/Brokers

Inward Foreign •Manifest (IFM) / Master Bill of Lading:

21 copies/advance copiesCustoms’ Piers

Inspection Division receives the IFM;

For distribution to different units in the BOC, as follows:Office of the •District CollectorOffice of the •CommissionerInvestigation and •Enforcement OfficeManagement •Information System and Technology Group (MISTG)Arrastre Office•

The hard copy of the electronic data manifest is submitted to the Arrastre for their server.

The Shipper advises the Consolidator •that shipment had arrived.

The Consolidator will now advise the •ultimate consignee that his shipment had arrived.

The Consolidator will chop the •House Bill of Lading and container guarantee.

The Consolidator will now encode to •their electronic manifest and when encoded, the Consolidator will submit electronic manifest to Arrastre.

There will be two (2) kinds of data •in electronic manifest and for the Arrastre, namely:

For the Master Bill of Lading 1) (MBL)For the House Bill of Lading 2) (HBL)

The Arrastre, upon receipt of the entry •from Cash Division, will now match the Master Bill of Lading and House Bill of Lading. The Computer Operator will delete the Master Bill data to conform with the House Bill of Lading.

The Importer/ Broker, upon a. advise of the Consolidator, will bring copy of the House Bill of Lading together with the Letter of Guarantee to the concerned party.

The Broker will file the entry b. with the House Bill of Lading attached instead of the Master Bill of Lading.

To date, the FPI Jobseeker Section, namely – the JobSeeker, Employer and Administration Modules are all 100% completed and functioning. User Acceptance Testing (UAT) is still being carried–out as part of the test run protocols. Final enhancements will then be effected before finally proceeding to jobsite migration to the FPI server.

the upgrading made in the website 2) would also provide FPI with the flexibility to maximize membership exposure, using the Internet, as an effective promotional and advertising medium.

Consequently, the FPI Secretariat will be sending out blank forms for interested members to fill–up regarding their industry/company profile and principal product lines.

Simultaneous with the Federation’s support to its members in need of exposure is the value–added service of including the members’ product in the preparation of materials and supplies produced and manufactured in the Philippines, to be submitted to the Government Procurement Policy Board, in line with the provisions of Administrative Order No. 227.

Benevolently supporting FPI in this project is the KAISA Consulting, a firm under the aegis of its president, FPI Director Ramon C. Agustines and managed by Ms. Teh Opinion, KAISA’s Managing Director. article filed by: bernard m. feliciano

Mr. Simeon presented to Secretary Reyes the Enertech’s new boiler system technology as an alternative renewable source of generating energy using rice hull as fuel to replace oil fired boilers. The boiler can also use agricultural wastes such as coconut shell, corn husk, bagasse, sawdust, wood chips and even coal. Compared with the European and Western boiler manufacturers, Enertech’s new breed of integrated power generation and delivery system performs better in terms of fuel consumed per unit of energy whether for steam production or for power/electricity generation (excerpts from the Tambuli Magazine May Issue).

Moreover, Mr. Simeon stressed that their boiler system using rice hull reduces fuel cost by up to 80% compared to bunker oil firing, therefore, generates more income and savings for their clients in the Philippines and in the Asian region. Rice hull as fuel, is also beneficial to their customers because rice hull ash which is high in silica, can now be exported to Europe for sale to steel producers who use it for ladle and tundish insulation at 200EU$ per metric ton. Rice hull ash can also be used as an absorbent in cleaning liquid waste spills.

In the meeting, Secretary Reyes recognized the importance of Enertech’s boiler technology to reduce the country’s dependence on fossil fuel given the energy crisis gripping the nation. He ordered Mr. Mario Marasigan, director of Energy Utilization Management Bureau to immediately conduct ocular visit in the boiler plant of Enertech Systems Industries, Inc based in Marilao, Bulacan.

Meanwhile, USec Ramon G. Santos requested Mr. Simeon and Mr. Zuniga to submit all pertinent documents of Enertech Systems Industries, Inc so that the DOE may accredit their company and in the process, they may be granted a zero-VAT classification by the Bureau of Internal Revenue (BIR) as government’s incentives to business investors and local manufacturers of equipment using renewable energy. In effect, this will reduce the cost of Enertech boilers allowing them to compete with other imported boilers.

- excerpted from the Tambuli Newsletter 06-27-08

Kaisa Consulting is a leading provider of professional management and consulting services in intergrated enterprise solutions. Kaisa Consulting also offers world-class and affordable integrated enterprise courses in SAP through the Kaisa Academy, the only accredited SAP Academy in the Philippines today.

5/f RAMCAR Center, 80-82 Roces Avenue, Diliman, Quezon City, Philippines 1104Telephone: +63.2.370.1100Fax Number: +63.2.373.2325URL: www.kaisa.com

In the same way, this has now required allocation of additional pecuniary and physical resources.

In the labor–management relations perspective, what this does is make possible for management to engage the active participation of labor (and their unions, if present) in a conducive high trust and mutually beneficial enabling context, mediated by an inherently non–adversarial, non–antagonistic third party government agency.

For one thing, organizationally speaking, the transfer of knowledge and technical skills benefiting labor provides latitude for the company to integrate the higher level of workers’ competency to its efficiency and productivity programs.

Furthermore, being able to come out with the said two training regulations, critical to the sugar milling and refining, standardizes the required skills, competencies and qualifications applicable across the whole of the sugar industry in the Philippines. This ensures four things, one – the skills and competencies of PSMA’s human resource will become at par with the global benchmark; two – efficient operational processes is achieved, in a sustained basis, in the manufacture of quality conforming product; three – concern over worker turn–over is addressed; and four – generation of employment is initiated.

In the final analysis, the stakeholders has to arrange a conference with TESDA Secretary, Mr. Augusto Boboy Syjuco, through the FPI President, Mr. Jesus Lim Arranza, for the possibility of accommodating the unique training needs of the sugar industry, as represented by FPI, in terms of cost considerations and other needed resources, particular to – 1) making available the training scholarships, with regard to existing training regulations, to the workers of PSMA member companies; 2) the formulation, certification and promulgation of the essential training regulations critical to the sugar industry; and 3) possible replication of the scheme to other interested FPI industry association members.

article filed by: b. m. feliciano

from page 1 from page 1 from page 1

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In a continuing series of presentations, the Tambuli Monthly Magazine introduces the FPI’s –

BRIEFING PAPER ON SMUGGLING IN THE PHILIPPINES

Which was tackled in the COMMITTEE On WAYS And MEANS joint w/ the COMMITTEE On FINANCE Public Hearing held last June 30, 2008, 10:00am Sen. Padilla Room, 2ND Floor, Senate Of The Philippines, Pasay City

SUBJECT BRIEF DISCUSSION ANNEX

1. What is smuggling? Smuggling, as defined under Section 3519 of the Tariff and Customs Code of the Philippines, “is an act of any person who shall fraudulently import or bring into the Philippines, or assist in so doing, any article, contrary to law or shall receive, conceal, buy, sell or in any manner facilitate the transportation, concealment, or sale of such article after importation, knowing the same to have been imported contrary to law. It includes the exportation of articles in a manner contrary to law. Articles subject to this paragraph shall be known as smuggled articles”.

2. Kinds of smuggling. 2.a Outright smuggling - means smuggling that takes place in the isolated beaches of the archipelago with no import documents and include “swing operations” in the ports of entry.

2.b Technical smuggling - takes place through undervaluation, underdeclaration of the volume shipped, misdeclaration, misclassification, and diversion of cargo.

2.b.1 Undervaluation - Undervaluation occurs when the importers declares the imported articles at less than its dutiable value.

2.b.2 Underdeclaration - Underdeclaration of volume happens when the importer declares imported shipment at less than its dutiable weight, measurement or quantity.

2.b.3 Misdeclaration - There is misdeclaration when an importer does not use the correct description of the imported articles corresponding to what is provided in the HS Codes of the TCCP.

2.b.4 Misclassification - Misclassification occurs when it does not conform to the correct and specific description of the imported articles corresponding to what is given in the HS Codes of the TCCP..

3. Extent of smuggling in the Philippines.

3.a Macro figure:

Philippine trade statistics versus the IMF trade records.Based on IMF records 2002-2007 = US$284.70 Billion Based on BOC records 2002-2007= US$195.01 BillionBased on NSO records 2002-2007= US$274.27 Billion ----------------------Total disparity of IMF & BOC US$89.69 Billion Total disparity of NSO & BOC US$79.26 Billion

Average annual disparity of IMF vs BOC Records : US$14.95 Billion Total annual revenue loss in pesos : PhP142.03 Billion

Average annual disparity of NSO vs BOC Records : US$13.21 Billion Total annual revenue loss in pesos : PhP125.50 Billion

Per records of the International Monetary Fund (IMF), the total exportation to the Philippines from 2002 to 2007 amounted to US$284.70 Billion while the Bureau of Customs’ (BOC) records only showed US$195.01 Billion or a disparity of US$89.69 Billion. The average annual disparity therefore is US$14.95 Billion or the equivalent of PhP747.50 (US$1 = PhP50). Assuming that 12% of VAT is to be paid, this means PhP89.70 Billion and an average duty of 7% will give us PhP52.33 Billion or a total revenue loss of 142.03 Billion. The discrepancy is most likely due to smuggling. BOC said smuggling rose to PhP65 Billion.

3.b Micro figure:

The above revenue loss is validated by the disparity in ceramic tile importations. Based on BOC Records 2002-2007 = 35,456,458.18 SQMBased on Magazine/China Records 2002-2007 = 43,647,801.00 SQM -------------------------Total disparity: 8,191,342.82SQM

(17,186,620.84SQM if 2005 importation is disregarded due to the absence of comparable data from China & Tile Magazine)

Total revenue loss in pesos: PhP1.2 Billion Note: China Customs except for the 2004 data refused to furnish a copy of their tile exportations to the Philippines.

ANNEX

A to A-2 B to B-2 C to C-4

D

D-1

E to E-1

COMMITTEE ON ANTI-SMUGGLING UPDATE REPORTS

artic

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: b. m

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In li

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t the

Meg

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Mal

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SA, M

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PHIL

IND

EX 2

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will

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FPI

Mem

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wou

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will

be

on a

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at

2nd P

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ippi

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Ind

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s E

xpo

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(P

HIL

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) 20

08

Do yo

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ufac

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d goo

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have

the e

xpos

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Wel

l, sho

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l at t

he....

6 3

to be continued

from page 8

4 5