Home Blog Page 7489

Rules on duty exemptions for medical supplies, donated devices issued

THE Department of Finance (DoF) has approved the rules governing tax and duty-free imports of medical supplies and donated devices for use in remote learning.

In a statement Tuesday, it said Finance Secretary Carlos G. Dominguez approved Customs Administrative Order (CAO) No. 12-2020, which will serve as the implementing rules and regulations for the tax-exempt import component of Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II).

The CAO exempts importers and manufacturers from Customs duties, taxes and fees when importing medical products, equipment and supplies intended for the coronavirus containment effort.

The order also applies to devices used for online learning such as personal computers, laptops, tablets and other equipment donated to public schools, including state universities, colleges and the vocational institutions under the Technical Education and Skills Development Authority.

The exemptions will apply retroactively to include imports from June 25, or after RA 11469 or the Bayanihan to Heal as One Act (Bayanihan I) expired.

The DoF said Customs will refund taxes and duties paid for eligible imports cleared starting June 25, but the importer will have to obtain first a tax exemption indorsement from the DoF to avail of the tax relief.

The tax exemptions will be valid until Dec. 19.

Importers and manufacturers will have to secure regulatory clearances from agencies with supervisory authority over the imports, such as the Food and Drug Administration (FDA) and the Departments of Environment and Natural Resources and Health.

The DoF said donated imports of health products with clearances will be “automatically cleared,” while those not subject to FDA’s clearance will no longer need to present a certification.

The Bureau of Internal Revenue has also issued rules on the tax perks available to donors of devices for use in remote learning.

It allows donors to deduct the value of the donations from gross income, while some items are also exempt from donor’s tax and value-added tax. — Beatrice M. Laforga

US businesses say Philippines not keeping up with region in improving business climate

AMERICAN BUSINESSES said they broadly agree with the US State Department’s conclusion that the Philippine investment climate in 2020 is improving, though they believe the improvements are insufficient to keep up with its neighbors.

They added that the State Department report underplayed the impact on investment of the drug war and tax incentive uncertainty.

John Forbes, senior advisor to the American Chamber of Commerce of the Philippines, said in a mobile message Tuesday that the group agrees with the assessment of overall improvement, “but we think not enough to keep up with regional competitors.”

The State Department report found that foreign direct investment (FDI) remains low relative to other countries in the Association of Southeast Asian Nations (ASEAN). It ranked fifth out of the 10 ASEAN economies in terms of FDI  in 2019.

Mr. Forbes said that the report understates the negative impact of President Rodrigo R. Duterte’s drug war, which has killed at least 8,663 people. He added that “the recent unwillingness of the government to accept international arbitral awards” has also had an effect on investor sentiment.

Manila Water Company, Inc.and Maynilad Water Services, Inc. waived almost P11 billion in awards won from arbitration cases against the government, after they were accused of economic sabotage by Mr. Duterte.

The Permanent Court of Arbitration in Singapore in separate cases ordered the government to pay the concessionaires after the government did not reimburse foregone revenues from the regulator’s refusal to allow the concessionaires to raise rates.

Discussing the political and security environment, the report noted terrorist groups in some regions, as well as human rights concerns arising from the drug war.

“The ongoing operation continues to receive worldwide attention for its harsh tactics,” it said.

Mr. Forbes added that the report underplayed the uncertainty surrounding the pending changes in tax incentives, which could upend investors’ cost structures.

The Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) pending with the Senate proposes to cut corporate income tax as well as rationalize tax incentives.

Business groups including the American chamber recently reiterated their call to congress for the grandfathering of current incentives for exporters, such as the 5% tax based on gross income earned in lieu of national and local taxes following an initial income tax holiday period.

“Grandfathering will provide them the confidence to remain in the Philippines long-term,” the business groups said.

While Mr. Forbes said that the report is comprehensive and useful for investors, he notes that it could in the future add more positive information on sectors that have attracted substantial FDI.

The report said the Philippines has been addressing its FDI constraints, including restrictions on foreign ownership and investment and problems with red tape. It said the business environment for exporters under the Philippine Economic Zone Authority has been transparent, and noted the promise of the government’s infrastructure program.

The report noted the “pervasive and long-standing problem” of corruption in both public and private sectors. — Jenina P. Ibañez

LNG imports still ‘best option’ for PHL energy security — DoE

LIQUIFIED NATURAL GAS (LNG) imports remain the best way to address the Philippines’ power needs in the next few years, the Secretary of Energy said.

“While the LNG industry is still in its infancy stage, imports of LNG remains the best option for the Philippines at the moment to assure the country’s future energy requirements will be sufficiently met,” Energy Secretary Alfonso G. Cusi said in a message to the LNG Producer-Consumer Conference 2020.

The Malampaya field off northern Palawan is the country’s only source of natural gas and is expected to be completely depleted by 2027.

“They say that the Malampaya supply can go as far as 2027 but it does not have enough gas for the further expansion needed to provide future natural gas requirements particularly with the plan to expand application of LNG in the industrial, commercial, residential, and transport sectors,” Mr. Cusi said. 

The Malampaya gas-to-power project under Service Contract 38 accounts for 3,200 megawatts of electricity, or 21.1% of gross power generation in 2019. The field is operated by Shell Philippines Exploration B.V., along with its partners, Udenna Group’s UC Malampaya LLC and Philippine National Oil Co.-Exploration Corp.

The government is evaluating various LNG terminal proposals to hold the expected imports that will replace Malampaya’s output.

So far, it signed off on LNG terminal projects put forward by the Lucio Tan Group with Blackstone Group’s affiliate Gen X Energy, First Gen Corp. with Tokyo Gas Co. Ltd., US-based Excelerate Energy, and Energy World Gas Operations Philippines, Inc.

Among the four proposals, the Lopez group’s First Gen is poised to deliver imported natural gas as early as 2022 with the construction of its interim gas terminal starting in the last quarter of this year. The DoE (Department of Energy) last month gave the company the go signal to begin construction.

The DoE is committed to developing the Philippines as a regional LNG hub. In 2017, it passed the Philippine Downstream Natural Gas Regulation which seeks to develop an LNG market. Recently, it issued an LNG investors’ guide to aid in the government’s efforts to raise natural gas capacity. — Adam J. Ang

Near self-sufficiency in food seen possible with reforms like RCEF

AGRICULTURE Secretary William D. Dar said food production needs to be made more sustainable if it is to meet domestic demand, and added that he expects to achieve a level of near self-sufficiency with the help of reforms like the Rice Competitiveness Enhancement Fund (RCEF).

In remarks delivered for World Food Day Monday, Mr. Dar said the country’s current food adequacy level is at about 80% overall, and cited the need for further reforms to meet demand from the growing population.

“Sustainability is the key to producing enough,” he said, noting that the Philippines currently has to import to plug the gaps.

“Given the program on rice tariffication, the Rice Competitiveness Enhancement Fund, and other programs that we are now putting in place… sometime in the future… almost all of the food requirements of the country can be locally produced,” Mr. Dar said.

Mr. Dar also directed the DA’s National Rice Program and Philippine Rice Research Institute to update their plans on changing consumer preferences and requirements.

Citing the Philippine Statistics Authority, the DA (Department of Agriculture) said food production has not kept up with population growth.

“We need to take care of our commodity industry. Local production is the priority, and imports (should) be a last resort,” Mr. Dar said.

Mr. Dar also noted that in the case of rice, some farmers and millers admitted that imported rice is superior in quality and taste.

“This is a development that the DA must consider. What is needed by the country now is not just higher levels of productivity but quality rice as well,” Mr. Dar said.

The DA has targeted a rice self-sufficiency level of 93%, from 86% currently.

According to the DA’s latest food supply outlook, the best-case scenario for the year-end rice inventory is 3.42 million metric tons (MT), equivalent to a 97-day supply.

However, pork and staple fish like round scad (galunggong) are projected to be in deficit at the end of the year.

The yearend pork deficit is estimated at 231,030 MT, equivalent to 45 days’ demand, while the demand for galunggong is expected to outstrip supply by 51,765 MT. — Revin Mikhael D. Ochave

Filipino Jr. player Alex Eala now number 2 in the world

By Michael Angelo S. Murillo, Senior Reporter

THANKS to her impressive run in the recently concluded French Open juniors tournament where she reached the semifinals, young Filipino tennis ace Alex Eala saw her rankings climb to a career-best to date number two.

In the latest update of its world tennis tour juniors rankings, the International Tennis Federation (ITF) now has Eala, 15, second with 2148.75 points, just a rung below currently top-ranked Elsa Jacquemot of France (2261.25).

It was a two-spot climb for Globe Telecom ambassador Eala, who was ranked fourth in the world entering Roland Garros.

The ascent was a continuation of the steady rise of Eala, a scholar of the Rafa Nadal Academy in Spain, in the sport in the last three years.

In 2018, Eala was ranked 248 in the world. She continued to work on her game and made waves after and climbed to 11th by the end of 2019.

Early this year she cracked the top 10, climbing to fifth then to fourth.

In January, she won the 2020 Australian Open juniors doubles title with partner Priska Nugroho of Indonesia, becoming in the process the first Filipina to win a grand slam title, be it in juniors or seniors play.

“#2 World ITF Girls Junior Ranking! Happy with my performance and thank you again for all your support! It has truly been an amazing week!” wrote Eala on her official Facebook page upon learning of the latest ITF rankings.

Eala, hailing from Quezon City, had it eventful at the French Open.

She reached the Final Four before losing to now-world number one and eventual champion Jacquemot, 3-6, 2-6.

But despite falling short in her Roland Garros quest, Eala said it was a journey full of lessons which she intends to use in continuing to build up her game.

She cited “mental toughness” as key moving forward.

“Your mentality is really what differentiates you from your opponents. In a tournament like this (French Open), skill levels are very much the same. It’s really a matter of who can sustain it more,” Eala said.

Behind Eala in the latest world rankings is former number one Victoria Jimenez Kasintseva of Andorra (2023.75), followed by Diane Parry of France (1967.5) and Daria Snigur of Ukraine (1930).

Completing the top 10 are Russia’s Polina Kudermetova (1828.75), USA’s Robin Montgomery (1667.5), Germany’s Alexandra Vecic (1457.5), Belarus’ Kristina Dmitruk (1454.25), and USA’s Alexa Noel (1452.5).

Marcial relieved that PBA has restarted, says it’s ‘so far, so good’

IT took a while for the Philippine Basketball Association (PBA) to return from the coronavirus pandemic break it was forced into but now that it is back, the league is equally thankful and relieved even as it is happy to share that everything has been up and running well up to this point.

Graced anew the online Philippine Sportswriters Association Forum on Tuesday, PBA Commissioner Willie Marcial said to have the league back in action is gratifying, more so since the path to it was not easy.

“Yes, it is a big relief to have the PBA back. I felt goosebumps when we restarted on Sunday. It’s a special feeling. For a while there, we thought it was already a lost season, but we did not lose hope and to see the league back is a great feeling,” said Mr. Marcial.

“It was not easy building the bubble, but we’re now here. And we’re hoping and praying that the bubble will be a successful one. I hope everybody will stay healthy. We’re taking it a step at a time,” he added.

The PBA resumed its Season 45 with the Philippine Cup on Oct. 11 after being forced to suspend it back in March because of the pandemic.

The tournament is being held under a bubble setup at Clark City in Angeles, Pampanga.

Under the PBA bubble, which is similar to that employed in the National Basketball Association, players, coaches, and staff of the teams and the league are holed up in Clark for the duration of the tournament and shuttled to and from the hotel and the playing venue.

Games are being played at the Angeles University Foundation gym with the Quest Plus Hotel inside Mimosa serving as the official home of all the participants.

To guard against the spread of the coronavirus, the league has scheduled regular swab testing of all participants and set up protocols which it vowed to strictly enforce.

Since resuming its season on Sunday, Mr. Marcial said everything is doing well.

“So far, so good. There have been no major concerns yet. Everything that was in the plan is being followed,” the PBA chief said.

“The players are upbeat, despite the sacrifice they have to make being away from their families and all. And they know it’s not only for us, but also for the fans and the Filipinos,” he added.

Now up and running again, Mr. Marcial vowed that they in the PBA would try to continue to work and see their return have a successful conclusion.

“This is for the fans. That’s our motivation in this restart, that is to be able to give fun and entertainment to them after a long while,” he said. — Michael Angelo S. Murillo

UAAP acknowledges receipt of UST endorsement of Ayo appeal

The board of the University Athletic Association of the Philippines on Tuesday acknowledged its receipt of a letter from the University of Santo Tomas endorsing the appeal of its former men’s basketball coach Aldin Ayo to have the indefinite ban slapped on him rescinded.

In a statement, the UAAP said it has received the endorsement letter from UST which it hopes to tackle “in due time.”

Mr. Ayo was meted an indefinite ban from participating in all league events and UAAP-sanctioned activities by the Board of Trustees which ratified the recommendation of the UAAP Board of Managing Directors last month over his involvement in the alleged training “bubble” of the Growling Tigers at the coach’s hometown of Capuy, Sorsogon, beginning June.   

The supposed training bubble took place at a time when any sporting activity was still prohibited under government health and safety protocols set to guard against the spread of the coronavirus.

The UAAP handed down the sanction on Mr. Ayo based on UST’s own probe of the incident that had the coach culpable of violations, ruling that “Ayo [endangered] the health and well-being of the student athletes under his charge when he conducted the training during a government-declared state of public emergency.”

Cited, too, as reason for the decision were the governing principles of the association.

Mr. Ayo moved to appeal the ban after, saying it was “not appropriate under the circumstances,” something UST agrees to, viewing it as “too harsh.” 

His push for reconsideration gained wind recently when Sorsogon police, after conducting investigation, which was certified by Sorsogon Governor Francis Escudero, concluded that the UST team did not violate protocols as what it had involved only “farming activities,” which are allowed under existing conditions.

The police also said that the Growling Tigers were able to meet the needed requirements prior to going to Sorsogon.

These included declaring that they are not persons under monitoring (PUMs), did not exhibit any COVID-19 symptoms for 14 days and were tested accordingly prior to the trip, and secured all the necessary travel passes from the Joint Task Force COVID Shield.

The team also observed the mandatory 14-day mandatory home quarantine before they proceeded to its “personal development farm training.”

Mr. Ayo resigned from his post on Sept. 4 amid the investigation conducted on the alleged bubble while the majority of the players who were part of UST’s finals run last year have since left the team and gone elsewhere. – Michael Angelo S. Murillo

Margot’s homer, catch carry Tampa Bay to 2-0 ALCS lead

MANUEL MARGOT slammed a three-run homer and made a spectacular catch to lead the Rays to a 4-2 victory over the Houston Astros on Monday in San Diego, giving Tampa Bay a 2-0 lead in the American League Championship Series (ALCS).

Mike Zunino added a solo blast for the Rays, who are two victories away from reaching the World Series for the second time in the franchise’s 23-season history.

Game 3 in the best-of-seven ALCS is scheduled for Tuesday.

Carlos Correa homered for the Astros, who have scored three runs in the series while leaving 21 runners stranded.

Houston right-hander Lance McCullers Jr. (0-1) struck out 11 in seven innings. He gave up four runs (one earned) on four hits and a hit batter without issuing a walk.

Rays right-hander Charlie Morton (1-0) repeatedly pitched out of trouble while hurling five shutout innings. He allowed five hits, one walk and one hit batter while striking out five.

Tampa Bay right-hander Pete Fairbanks served up Correa’s homer during his two innings. Left-hander Aaron Loup retired two batters and allowed a hit in the eighth, right-hander Ryan Thompson recorded the last out of the eighth and righty Nick Anderson worked out of a jam in the ninth to notch his first career postseason save. — Reuters

Far Eastern University to hold free online chess seminar on Oct. 24

FAR EASTERN UNIVERSITY will continue to hold free online chess lessons set on Oct. 24 with an aim of empowering the youth especially those with potential but are financially challenged.

Made possible by FEU chairman Aurelio Montinola III and assisted by athletics director Mark Molina, the long webinar via Zoom, which has a morning and afternoon session, is open to all boys and girls aged 11 to 17 years old.

No less than Asia’s first Grandmaster Eugene Torre and national women’s team and FEU coach GM Jayson Gonzales will be one among the many top masters who will train and help participants improve their game.

“Helping the development of chess among young people especially the low income or less fortunate families is the main objective and mission of the program,” said Mr. Gonzales.

Janelle Mae Frayna, an FEU alumna and the country’s first and only Woman GM, is also among the trainers that also include International Masters Paulo Bersamina and Jerad Docena and Woman FIDE Master Michelle Yaon.

To register, kindly fill-out the link below: https://forms.gle/KuaCEqNTAkRMTEJP6 or please message FEU Chess Team’s official Facebook Page.

Braves ride late homers to Game 1 win over Dodgers

AUSTIN RILEY and Ozzie Albies hit ninth-inning home runs and the Atlanta Braves opened the National League Championship Series with a 5-1 victory over the Los Angeles Dodgers on Monday at Arlington, Texas.

On a night when runs were hard to come by, Riley got into a 1-2 sinker from Dodgers right-hander Blake Treinen to break a 1-1 tie in the ninth with a leadoff shot to left-center. It was the first home run of the postseason for the Braves’ No. 9 hitter after he hit eight in the regular season.

The Braves jumped in front 3-1 on a Ronald Acuna double and a Marcell Ozuna RBI single to knock out Treinen (0-1). Two batters later, Albies hit a two-run shot off Dodgers left-hander Jake McGee, his first of the postseason.

The runs came in the top of the ninth with the Dodgers serving as the home team by finishing the regular season with the best record in the National League.

In a battle of teams that entered with perfect 5-0 records in the playoffs, the Braves once again leaned on their pitching while getting home runs from Freddie Freeman in the first inning in addition to the late Riley and Albies blasts.

Atlanta left-hander Will Smith (1-0) pitched a scoreless inning to pick up the victory. Braves starter Max Fried gave up one run on four hits over six innings with two walks and nine strikeouts. Atlanta pitching entered with four shutouts in the club’s first five postseason games.

The Dodgers received a home run from Enrique Hernandez while starter Walker Buehler gave up one run on three hits over five-plus innings with five walks and seven strikeouts.

In a ballpark not known for giving up an abundance of home runs, the Braves took a 1-0 lead two batters and five pitches into the game when Freeman took a 97 mph fastball from Buehler over the wall in right-center. It was his first home run of the postseason after he hit 13 in the regular season.

Fried was getting the better of the starting-pitcher matchup against Buehler until Hernandez went deep to left field to tie the score 1-1 in the fifth inning. Hernandez was making his first start of the postseason.

Buehler gave up singles to Travis d’Arnaud and Albies to open the sixth before he was replaced by hard-throwing right-hander Brusdar Graterol, who prevented any further damage. Atlanta also loaded the bases in the eighth but failed to score.

Braves left fielder Adam Duvall left the game in the second inning when he injured his left side after hitting a foul ball. He was replaced during the at-bat by Cristian Pache. — Reuters

After successful bubble, NBA grapples with uncertain future

LOS ANGELES — As the National Basketball Association (NBA) bursts its bubble following the completion of the Finals on Sunday, the league now faces tough questions about when next season will begin and what it will look like.

The league’s three-month stay at Walt Disney World in Orlando was a huge success, with no players and coaches testing positive for COVID-19 after the virus derailed the season in March for four months.

LeBron James and the Los Angeles Lakers defeated the Miami Heat to win the championship and cap a thrilling playoffs on Sunday.

But even though the environment was safe, living on the campus required major sacrifices, and there is little appetite to return anytime soon.

“I think you wouldn’t be human if you didn’t have ups and downs in the bubble,” James told reporters on Sunday night.

“At times, I was questioning myself, should I be here? Is this worth sacrificing my family? I’ve never been without my family this long,” he said, noting that he missed his son’s 16th birthday.

The 2020-21 campaign was slated to tip off in December, but few expect that to happen given the league just wrapped up the longest season in its history and financial agreements still need to be hammered out.

The NBA has already pushed back the draft from Oct. 16 to Nov. 18 and Commissioner Adam Silver has said he doesn’t expect the season to begin this year, with January or possibly February a more likely target.

Silver, however, said he hopes to play a full 82-game season and playoffs in home arenas with fans despite the still raging pandemic, which has killed more than 214,000 people in the United States.

“Nothing has really changed with this virus,” Silver told reporters last month.

“In fact, I think the majority of states right now, cases are ticking back up again.”

He said he hopes advancements in rapid testing could make a big difference in terms of the league’s ability to potentially get fans into arenas.

“I think everybody understands just like in the country, there’s public health considerations, but the economy is a public health issue as well, so we’re working and trying to strike that right balance,” he said.

“Part of my job is to study what’s happening in other industries, what other leagues are doing, including international soccer leagues.

“So all of that’s on the table right now.” — Reuters

Coaching the Heat

Erik Spoelstra struggled, and failed, to hold back his tears as he began his post-Finals presser the other day. The Heat head coach needed the better part of a minute to contain his emotions, in large measure, because he failed to lead his charges to a championship he firmly believed they deserve. It didn’t matter that they were vast underdogs, beset by injuries to vital cogs. Forget that, heading into Game Six of the National Basketball Association title series, they faced the Sisyphean task of winning two more matches in order to see his vision through. From his vantage point, they were ready, willing, and able to buck the odds — just as they did in Games Three and Five. And, to their credit, they continued to give their all until the final buzzer. Early on, though, it became clear that their all would be nowhere near enough.

And so Spoelstra gave in to the hurt, and the fatigue, before composing himself for the unwanted chore of dissecting a gut-wrenching experience. He was still raw from the pain, and it showed even as he remained his erudite self in front of the assembled media. He was likewise thankful; for all his disappointment, he understood the gravity of what the Heat accomplished counter to conventional wisdom. They weren’t supposed to make the playoffs despite the arrival of All-Star Jimmy Butler — but they did, and as the fifth seed. They weren’t supposed to overcome the league-leading Bucks — but they did, and in runaway fashion. They weren’t supposed to upend the highly rated Celtics — but they did, and without question. They weren’t supposed to mount a challenge against the powerhouse Lakers — but they did, and how.

“We didn’t get the final result that we wanted,” Spoelstra noted wistfully. And, no doubt, he’d like to take back some decisions hindsight has exposed to have been wanting. That said, there was simply no glossing over the unfortunate hand fate dealt the Heat. He couldn’t have prepped for Goran Dragic, the Heat’s leading scorer, and Bam Adebayo, their defensive anchor, getting injured on the very first game of the Finals. In fact, the development showed yet again his brilliance as a strategist. The handicaps notwithstanding, he compelled the Lakers to treat them as equals. On offense, he devised complex sets that enabled Butler to post performances worthy of mention alongside those of the sport’s pantheon in the grandest stage. On defense, he kept the whole greater than the sum of its parts. Where others would have succumbed to the crisis, he saw opportunity, and he thrived accordingly.

Given the obstacles the Heat needed to surmount en route, Spoelstra was, perhaps, destined to fall short of his prognoses. He was left with no choice but to ride a seven-strong rotation hard after Game One, and while they competed extremely well in the intervening matches, they were running on fumes by the time the clincher rolled around. Butler was especially gassed after having expended extraordinary energy absorbing haymaker after haymaker from the Lakers — and particularly from the otherworldly LeBron James — in Game Five. And sensing the encumbrance, the series favorites pounced; the set-to was all but over at halftime.

It’s fair to argue that the Heat would have done better with extra rest. And given their tight substitution patterns, they may well have benefited from the usual gaps between Finals matches. Inside the bubble, the every-other-day-save-for-the-middle-of-the-week schedule told on their endurance. That said, resorting to what ifs necessarily requires a thorough look at the big picture: the same arrangement worked to their advantage in the previous rounds. Under the circumstances, all and sundry are right to ignore the whimper in which the Heat finished their campaign. It’s certainly not how their run will be remembered. The lasting impression of Butler will be that of a warrior emptying the tank and outplaying James (and twice!), not that of a player so weary as to prove repeatedly unable to stay ahead of the otherwise-points-starved Rajon Rondo with the season on the line. And the lasting impression of Spoelstra will be that of a champion who made no excuses as he unfailingly coaxed the best out of the Heat.

All told, Spoelstra has cause to hold his head high. He saw the end of a special season with special players, and truth to tell, he requires no hardware to validate their singular achievement. As he argued, “we’re going to remember this year, this season, this experience and that locker room brotherhood for the rest of our lives… I’m just thrilled to be able to have an opportunity to coach Jimmy and have a relationship with him and move forward chasing this dream. It’s not going to stop. We’re all wired the same.” Amen.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.