FREEPORT AREA OF BATAAN – Officials of the Department of Trade and Industry (DTI) and the Authority of the Freeport Area of Bataan (AFAB) encouraged manufacturers and export producers here to take advantage of a preferential tariff scheme granted by the European Union (EU) that allows duty-free access to exporters from developing countries like the Philippines.

In a forum conducted AFAB recently, resource speakers from the DTI Export Marketing Bureau (EMB) and the Bureau of Internal Trade Relations (BITR) said that registered business locators here should maximize the competitive advantages from the European Union Generalized System of Preferences Plus (EU-GSP+) in order to further expand their businesses and boost their presence in the EU market.

AFAB Chairman and Administrator Emmanuel D. Pineda said companies at the FAB should avail of the EU-GSP+ offer, noting that the EU-GSP+ scheme provides distinct advantages to Philippines manufacturers.

According to Trade Industry Development Specialist Jollan Margaret Llaneza of BITR, business locators could avail of zero tariff schemes under the EU-GSP+ and penetrate what is considered to be the single largest market in the world.

Llaneza said that, in particular, producers of textile, garments, apparels and shoes from the Freeport Area of Bataan (FAB) could avail of duty-free export privileges under the EU-GSP+ scheme.

She said that while EU member-countries charged a regular tax rate of 16.9% for exporters that are not from GSP+ members, the Philippines’ enrolment to GSP+ gave FAB locators this competitive advantage.

Meanwhile, EMB Senior Trade Industry Development Specialist Maria Jaena Go-Aco explained the rules of origin and the procedures in exporting to EU member-countries, pointing out that the preferential tariff scheme is given to developing countries that meet the very stringent application requirements.

The Philippines was accepted formally into the EU-GSP+ on December 18, 2014 and is currently the only ASEAN country enrolled under the preferential tariff scheme.

Under this system, Philippine manufacturers can now export more than 6,000 products to any of the 28 member-countries of the European Union at zero tariff. The products that may qualify for duty-free access include coconut and marine products, processed fruit, prepared food, animal and vegetable fats and oils, textiles, garments, headwear, footwear, furniture, umbrellas, and chemicals.

In the same forum, Pineda reminded locators that the Philippines is currently the only country in ASEAN that is enrolled in the EU-GSP+ scheme. He added that this is an advantage that FAB locators can avail of and enjoy.

He said that in recent years, the number of FAB locators tapping the EU-GSP+ scheme has actually increased—from 66 percent in 2015 to 71 percent last year.

“The surge in utilization rate showed that more industries are finding the benefits of this scheme,” he added. “This could also become the competitive edge of the FAB locators.”

For his part, AFAB Deputy Administrator for Operations Alewijn Aidan K. Ong assured the locators that the Bataan authority, DTI, and the Bureau of Customs will assist the business locators in meeting requirements for the EU-GSP+ program. – Henry Empeño