FIVE ARMED robbery incidents against ships were reported in Asia in February 2018, only one of which occurred while at sea off Basilan in southern Philippines, according to the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia-Information Sharing Centre (ReCAAP-ISC). The four others took place while the vessels were at berth in Bangladesh, India, and Vietnam. ReCAAP-ISC noted that this total number was the lowest among the 10-year reporting period covering 2009-2018. None of the incidents this year involved abduction of crew nor hijacking for the oil cargo, it added. Representatives of southeast Asian Nations met in Metro Manila on Aug. 14-15 to “strengthen efforts and to deepen cooperation for maritime safety and security in Sulu-Celebes Sea,” according to a statement released by the Philippine Coast Guard (PCG). The event was also attended by members of the US and Japan Coast Guard and observers from the embassies of US, Singapore, Australia, Denmark and South Korea. The gathering was organized by the PCG and the ReCAAP-ISC. Rear Admiral Joel S Garcia, deputy commandant for administration of the PCG and chairperson of the ReCAAP ISC Governing Council, urged the delegates to further heighten vigilance to preserve the gains earned from their unified action against vessels flagged down for piracy activities. “While the last actual incident involving the abduction of crew from ships while underway in the Sulu-Celebes Seas took place in March 2017, the threat to maritime safety and security posed by criminals and Islamists militants such as the Abu Sayyaf Group remain present. Therefore, we must not take the progress being made for granted,” Mr. Garcia added.
THE GOVERNMENT is “very concerned” about the rising price of fish amid declining production over the past five years, raising the risk of reduced access to and higher prices for a type of food deemed to be a key source of low-cost nutrition for the population.
“We’re very concerned about the price of fish. It seems that our fish catch has really been dropping since 2012. Maybe it’s because of climate change, overfishing. We don’t really know, but we’re just signaling that this is becoming a serious problem,” Finance Secretary Carlos G. Dominguez III said in a media forum yesterday.
In 2017, fisheries production fell 1% year-on-year, though the decline narrowed from 6.3% in 2016.
Inflation in fish prices was 12% in the first quarter, up from 5% a year earlier.
In June, fish prices rose 11.2%, and accounted for 0.6 percentage point of CPI growth which came in at 5.2% that month.
Economic managers are considering the import of fish more freely and at lower tariffs to contain food prices, which are becoming a contentious political issue for the government.
Also proposed for importation at a 5% tariff rate were meat, vegetables, feed wheat and corn.
The Philippine Tariff Commission conducted a public consultation on Aug. 10. Congress is scheduled to adjourn between Aug. 16 to Aug. 27, which would provide President Rodrigo R. Duterte an opportunity to lower tariffs via Executive Order.
Mr. Dominguez has said that lower tariffs are not expected to hurt government revenue significantly as tariffs and customs duties represent about 5% of Bureau of Customs collections.
He added that imports at higher volumes might offset lower tariffs.
In July, the DoF issued an economic bulletin calling for more sustainable fisheries management practices and more intensive application of technology in the fisheries sector to ensure adequate supply. It also noted that fish products have played a significant role in the elevated inflation levels of the past few months. — Elijah Joseph C. Tubayan
THE Department of Trade and Industry (DTI) said it will ask the Bureau of Internal Revenues to investigate foreign shipping lines to validate whether they are paying taxes properly on what it called “excessive” cargo charges.
In a statement Wednesday, the DTI said it continues to explore possible measures against the shipping fees, which it said are affecting the competitiveness of domestic industry.
The DTI said it is in possession of a study which identified fees allegedly imposed by some international shipping lines which it believes should not be passed on to Philippines exporters and importers and ultimately consumers.
“We are calling on all international shipping lines to put a halt to these unnecessary charges as these are unfair,” Trade Secretary Ramon M. Lopez said in the statement.
“Finally, we shall also call on the Bureau of Internal Revenue to investigate unpaid taxes arising from these charges,” he added.
The DTI said it supports the Philippine Competition Commission’s investigation into shipping charges.
“We thank the PCC led by Chairman Arsenio M. Balisacan and the commissioners, for listening to the plea of exporters and importers. We must put an end to this unfair practice of charging excessive fees as these charges increase the cost,” Mr. Lopez said.
A 2017 study jointly conducted by the DTI-Export Development Council and the National Competitiveness Council showed that shipping fees are costing the Philippine economy as much as $5 billion annually. — Janina C. Lim
THE FINANCE department has warned against rushing into a decision to select the third major entrant to the telecommunications industry, or “third player,” before the proper regulatory groundwork is laid.
“A better regulatory environment I think is the priority rather than having a third telco. The third telco is just a means to an end,” Finance Secretary Carlos G. Dominguez III said during the Kapihan sa Manila Bay forum on Wednesday.
“What the public is getting is inferior to what the public is getting elsewhere. That is the job of the regulators. Are we asking the right questions or are we rushing into something that may not help the long run because the regulatory environment is not sufficient?”
He said the ultimate objective is “better, more affordable, faster… more access to communications. That is the goal.”
“If you have a third telco and the regulation is ineffective, what’s the point,” he added.
The Department of Information and Communications Technology (DICT) has said that a third player will be selected before the end of the year, in time to start operations by 2019.
The Department of Finance (DoF) lost a standoff with the DICT after earlier insisting on largely financial criteria as the main basis for picking the third player. After industry consultations, the DICT found that stakeholders preferred to select on the basis of Highest Committed Level of Service (HCLoS), a scheme that assigns weights and awards points based on the third player’s promised investment levels, population coverage, and speeds achieved over a five-year period.
Regulatory concerns he cited include access to the government’s “dark fiber” network, the availability of frequency, a common tower policy, and interconnection rates.
Mr. Dominguez also noted an OpenSignal survey that found that the Philippines had the lowest 4G availability in East Asia.
“What does that tell you? It tells me that the regulation of the telco industry, for whatever reason, is not up to par with the region. Either it’s the law or the regulators. So maybe that is one of the issues we have to assess first,” he said.
“Are you going to force the third telco to build its own towers or are you going to make it an even playing field where everybody has towers, and must be available to everybody else. I’m not saying they should be free. Rent them out, make them available,” Mr. Dominguez said.
“Is it possible for the third telco to build its own fiber optics network? Will the frequencies available to the third telco be sufficient for them to compete on a fair basis?” he added.
The latest selection criteria, laid out in a draft Terms of Reference (ToR), requires the prospective third player to commit to at least five Megabits per second of Internet speed and P40 billion worth of capital expenditure over five years.
The DICT is set to conduct another public consultation on the draft ToR next week, to be followed by a meeting of the selection oversight committee, which is composed of representatives from the DICT, DoF, the National Telecommunications Commission, the Office of the Executive Secretary and the National Security Adviser. — Elijah Joseph C. Tubayan
THE Department of Agriculture (DA) has allowed the entry of up to 17,000 metric tons (MT) of round scad, commonly known as galunggong, which will reach markets ahead of the closed fishing season when supply of the fish is expected to dwindle.
Agriculture Secretary Emmanuel F. Piñol signed the Certificate of Necessity enabling the import of round scad on Wednesday. The timing of the permit will allow imports to arrive by Sept. 1.
On Friday, the DA and the fisheries industry agreed to set a tariff rate of 5% for such imports.
“In order to ensure national food security taking into consideration public welfare and safety… the importation of round scad up to a maximum of 17,000 MT is hereby certified as necessary to be imported by accredited fish importers,” according to the certification.
“The imported round scad under this certificate of necessity shall be unloaded only in Bureau of Fisheries and Aquatic Resources-accredited cold storage facilities and shall be sold wholesale in Navotas Fishport.”
The DA also amended an old Fisheries Administrative Order by allowing fishermen’s groups and sellers, alongside food processors, to import round scad.
Round scad, a staple protein for low-income families and therefore politically sensitive, is so far the only fish allowed for import to help shore up domestic supply.
According to the Philippine Statistics Authority (PSA) round scad output dropped 9.56% year-on-year in the first six months in 2018. More broadly, fisheries output fell 2.14% during the same period amid high fuel costs and unfavorable weather conditions.
Prices of round scad correspondingly rose 11.66% in the first six months.
The closed fishing season starts in about two months.
Mr. Piñol told reporters on Tuesday that the DA will be imposing a different suggested retail price (SRP) on imported round scad, which is frozen, as against domestically-caught, fresh, round scad.
Round scad was one of the eight non-processed agricultural commodities placed under an SRP scheme by the DA in June. — Anna Gabriela A. Mogato
