Local chemical manufacturers on Tuesday said they now have better chances of hitting their $5-billion export target, following the release of the new implementing rules and regulations (IRR) for controlled chemicals.
Gretchen Enarle, president of Samahan sa Pilipinas ng mga Industriyang Kimika or SPIK (Chemical Industries Association of the Philippines), said the “path is now clear” for the industry to reach its goals after their tiff with the Philippine National Police (PNP) has been resolved. “With the issuance of the IRR, the industry was relieved, as the list of controlled chemicals has been reduced to 32,” Enarle said told reporters in a media briefing.
The IRR was released on Tuesday, eight years after Congress enacted Republic Act 9516, which amended Presidential Decree (PD) 1866. PD 1866 codified the laws on the illegal sale, manufacture or possession of explosives or instruments used in the making of firearms or explosives.
The PNP crafted the IRR together with sectors affected by tighter chemical regulations. The joint crafting of the IRR and its immediate release were sought by local manufacturers of chemicals and semiconductors.
Last year electronics makers were forced to secure additional permits and procedures and pay more fees after the PNP tightened its regulations on controlled chemicals.
Also, the PNP added 41 new chemicals to the master list of controlled chemicals, bringing the total to 101.
Electronics and chemical manufacturers said this caused production delays as they had to wait for the issuance of permits for imported chemical substances, which they need for their factories.
Smaller companies importing common household chemicals have also been affected by the government’s tighter regulations.
Under the IRR, the list of PNP-controlled chemicals was reduced to 32, from 101, and procedures for obtaining permits and licenses were streamlined, with the approval period reduced to 10 days, from 20.
Also, the PNP will no longer collect hefty “escort fees” in the transport of chemicals. This would allow the chemicals industry to save some P9 million.
In April the chemicals sector increased its output by 5.3 percent year-on-year and was one of the top contributors to manufacturing growth in the first quarter of 2016.
As of 2015, there were 1,405 chemical manufacturers in the country, with 170,000 direct workers employed. However, data from the Philippine Statistics Authority showed that chemical exports reached only $1.9 billion in last year, 17 percent lower than the $2.3 billion recorded in 2014.