The electronics industry is seeking exemption from the Commission on Elections’ (Comelec) regulations requiring manufacturers to secure a certificate for the transport of certain chemicals used in cleaning of electronics components during the election period.
Comelec’s prohibition “will mean additional costs and undue delay to the industry,” Dan Lachica, president of the Semiconductor Industries of the Philippines Foundation Inc. (SEIPI) said in an interview on Sunday.
The industry has not had any incident of misuse or diversion of chemicals the past 50 years, Lachica said without discussing the details of the supposed delays and extra cost that the industry could incur.
In a separate interview also on Sunday, Tereso Panga, director-general of the Philippine Economic Zone Authority, said the agency supports the position of SEIPI for an exemption.
The requirements are the Certificates of Authority to Transport (CA-TT) and Certificates of Authority to Acquire Chemicals (CAAC).
The chemicals being used by the electronics makers are already regulated by the Philippine National Police-Firearms and Explosives Office (PNP-FEO), Panga said in justifying the exemption.
The Comelec ban has taken effect on January 12 and will be good until June 2025.
Panga said in past elections, there have been delays in the issuance of the required certificates, which consequently caused production disruptions, shutdown of operations, and abandonment of registered business enterprises’ (RBEs) importation in the ports.
Panga said manufacturing companies like SEIPI members registered with PEZA use chemicals such as sulfur powder, nitric acid, hydrogen peroxide, and potassium permanganate among others and are regulated by the PNP-FEO to ensure these are not misused or diverted to criminals and terrorists.
But Panga said manufacturers using regulated chemicals only form a small fraction of permit applicants during the election period compared to gun owners or ammunition applications.
Panga said that during the gun ban at election time, RBEs importing and transporting chemicals that are regulated already by the PNP-FEO are also required to secure a CA-TT from the Comelec Committee on Ban on Firearms and Security Concerns.
“We urge the Comelec to just exempt the export-oriented ecozone locators from the CA-TT as it is a redundant document with that of PNP. Adopting a risk-based approach, the same can be delegated to PNP to facilitate prompt issuance of a consolidated permit for importation and transport of regulated commodities,” Panga said.
Panga said as early as November last year, PEZA advised locators to file their CA-TT to ensure unhampered operations of locators during the Comelec ban.
He added that PEZA has been steadfast in raising the need to streamline the processing of CA-TT application with Comelec and PNP.
With the CA-TT online application formalized and launched last year, PEZA released MC No.
2024-055 to update its stakeholders on this change, encouraging them to file as early as
November so as to avoid repeat of the 2022 delay.
PEZA has always worked closely with Comelec to address the matter and has likewise invoked the intervention of the Anti-Red Tape Authority (ARTA) on the issuance of the CA-TT, Panga said.
In a letter dated May 25, 2023 to Comelec, PEZA formalized the request for exemption citing the following: the Omnibus Election Code specifies that the prohibition during the gun ban on election period covers firearms and deadly weapons only, and does not mention the prohibition of chemicals and; PEZA closely monitors the movement of goods (including chemicals) by our export-oriented RBEs and these are covered by corresponding PEZA permits, thus, the possibility that these materials are being used for explosives or illegal activities or diverted to the domestic market is very slim.
However, Panga said the request was denied by Comelec, prompting PEZA to bring it up with the Office of the Special Assistant to the President on Economic and Investment Affairs (OSAPEIA) and ARTA.
In a meeting led by OSAPEIA Secretary Frederick Go on February 5, ARTA in a social media post on Sunday said “it was agreed the SEIPI will be asked to submit a petition to the Comelec to … to expedite the CA-TT and CAAC. “
The ARTA post said the participants of the meeting further recommended the inclusion of a “green lane” for semiconductor and electronics companies with track record.
Panga suggested that lawmakers should revisit the archaic law that requires all those that import regulated chemicals — regardless how small or little is the regulated ingredient — that are tagged as precursor to explosives or drugs, to comply with the PNP -FEO permit.
“This is not in keeping with the best practices of other countries in promoting and facilitating trade and investments,” he said.
“(Government) should come up with a consolidated list of regulated chemicals, common chemical orders and harmonized permits facilitation system to conform to the ARTA’s Ease of Doing Business policy. Importation, transport and movement of regulated chemicals top the list of our ecozone locators’ recurring concerns—including the CA-TT during election ban,” Panga said.
