Industries to save P2.4B from streamlining

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    Telecommunication companies and manufacturers are set to save as much as P2.4 billion due to the streamlining of processing in their industries.

    In his presentation at a forum hosted by the Davao Chamber of Commerce and Industry over the weekend, Anti-Red Tape Authority director-general Jeremiah Belgica said logistics cost savings accruing to manufacturers will be a staggering P1.9 billion a year based on the standard cost model calculation.

    The amount represents tariff for companies , professionals/middlemen and opportunity costs that manufacturers have to shell out to move their products.

    Belgica said companies at present pay P2.23 billion in additional costs for logistics but this will drastically fall to P378.83 million once processing goes digital.

    The government has mandated all port users to file and submit all requirements and to pay fees online. From 209 steps, processing of permits will be down to 24 by the end of the year, an 88 percent reduction and a similar proportion in the number of days to process them to just 35 from 271.

    The reforms also call for the issuance of a single pass or ticket to all movers of goods, particularly of exporters, rather than multiple permits to move products from one local government unit to another.

    In telecoms, Belgica said savings in the cost of licensing 10,000 towers could reach P573 million.

    The processing of permits is cut to 8 from 13 in number of steps; 35 from 86 in documentary requirements and 16 from 241 in the number of days.

    The cost of licensing at present is about P1 billion but this will be reduced to P451.79 once those reforms are implemented.

    Belgica said ARTA will launch reforms on the housing sector before the end of the year.
    He said these reforms are part of ARTA’s empowerment and enforcement functions in accordance to the Ease of Doing Business Law. – I. Isip

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