Entrepreneurs and exporters wanting to access more markets through trade shows will save time and money once the whole process of accession to the ATA Convention is completed, according to the umbrella organization of Philippine exporters.
President Duterte signed on June 23, 2020 the Instrument of Accession to the Customs Convention on ATA Carnet for the Temporary Admission of Goods, also known as the ATA Convention or Istanbul Convention.
Following the presidential signing, concurrence by at least two-thirds of Senate members is required.
The Convention shall enter into force three months after the Philippines deposits the Instrument of Accession.
This brings the country closer to becoming part of the ATA Carnet community which has some 80 contracting parties to the Convention that provides international guarantee to the Carnet system.
Philippine accession to the Convention has long been advocated by the Export Development Council (EDC) and business organizations such as the Philippine Chamber of Commerce and Industry and the Philippine Exporters Confederation, Inc. (Philexport).
The agreement will help facilitate foreign market access for exporters, particularly micro, small and medium enterprises (MSMEs), by enabling local products to move freely across borders and be temporarily admitted to customs territories with relief from duties and taxes, especially for the purpose of trade show participation.
“Signing of the Instrument of Accession gives another positive signal to the world that we are serious in expanding our trade, particularly exports,” said Sergio Ortiz-Luis Jr., EDC vice chairman and Philexport president.
“With the ATA Carnet, there will be savings in time and money in the temporary movement of goods consistent with our thrust to ease doing business in the country,” Ortiz-Luis added.
The ATA Carnet is particularly beneficial for MSMEs interested to export and join overseas trade shows and exhibitions but baulk at the high cost of import duties and taxes.
The PCCI meanwhile said the carnet system is beneficial to businessmen and investors.
“If you are travelling abroad for an exhibition or a trade fair or even to shoot a movie and you are taking professional equipment with you, you have to pay an import duty or tax.
That is beside the hassle of being stopped by Customs officials of your country of destination, filling out and providing several forms and documents, and going beyond your intended budget for the project. The whole process would be time consuming and potentially costly. But if you have a Carnet and you enter a country which takes part in the ATA Carnet system, bringing in and out your equipment or goods is a breeze,” said PCCI president Benedicto Yujuico.
The Department of Trade and Industry earlier said implementing the system “will enable local entrepreneurs, especially the MSMEs, to participate in trade exhibits, fairs and shows overseas without paying duties and taxes.”
At the same time, the Carnet system will assist Filipino exporters “to access key target markets such as China, United States, European Union,Japan, and United Arab Emirates–all of which are signatories to the ATA Carnet,” DTI said. – Irma Isip
