Ever wondered why Philippine-made products are scantily featured in international trade exhibits and fairs abroad?
Or how come Filipino talents can’t hold concerts the same way other foreign bands can? How come Filipino filmmakers or broadcasters can’t show a lot of images when shooting overseas?
One of the reasons, or perhaps the thousands or million dollars worth of reason, is customs taxes.
Starting April 17, 2022, they will finally get their fix.
The Philippines have finally acceded to the Convention on Temporary Admission, which allows Filipino exporters, filmmakers, rock bands and other services to bring their goods for temporary project without having to pay duties and taxes. All they have to do is secure a single document called ATA Carnet (pronounced kar-nay) or what importers call “Merchandise Passport.”
In a news statement, the Department of Foreign Affairs said Philippine Ambassador to Brussels Jose De Vega deposited the Instrument of Accession of the Convention at the World Customs Organization (WCO) last January 17. The accession came 18 months after President Duterte ratified the treaty, and two months after the Philippine Senate concurred it.
As a signatory to the ATA System (ATA and Istanbul Conventions), the Philippines is also bound to lift the imposition of tariffs and other customs duties on goods being imported from 87 countries and territories which are party to the Convention. These specific goods are allowed “temporary admission” and are intended for re-exportation within one year.
WCO Secretary General Kunio Mikuriya accepted the accession document and expressed his best wishes for the Philippines. Ambassador De Vega and Secretary Mikuriya said the Philippine accession would benefit not just the Philippines but also its economic partners such as the Asean.
The Export Development Council (EDC), Philippine Chamber of Commerce and Industry (PCCI) and the Philippine Exporters Confederation Inc. (PHILEXPORT) said they have long advocated being included in the ATA Systems community. They said micro, small and medium enterprises (MSMEs) can have more savings in time and money when they join trades and exhibits overseas.
PCCI President Benedicto Yujuico also said aside from savings from taxes and duties, the ATA System will simplify Customs procedures. Gone are the days when exporters will need to fill out several forms and documents, which are time-consuming.
Senator Aquilino “Koko” Pimentel III had earlier said ATA System will also benefit Filipino athletes who have to carry assorted equipment from country to country for training or competition, as well as media personnel and journalists who need to carry laptops, cameras and tripods to cover various political hot spots.
After the Covid-19 pandemic, the foreign affairs committee chair also sees that high-value scientific equipment will be brought from country to country for demonstration.
When disaster strikes the country again, humanitarian organizations or countries can also bring in water purification equipment, aircraft, electrical power plants, telecommunications installations, and transportation development without too much Customs hassles to help in the reconstruction and recovery projects.
Notwithstanding the revenue losses, the Bureau of Customs would benefit from the codified ATA Carnet System. “BOC [Bureau of Customs] would no longer need to use valuable time and resources processing temporary admission of scientific, professional and other goods and equipment,” he said. The BOC would only need to monitor if the ATA goods “fail to be totally re-exported.”
Aside from products for trade fairs, media equipment and athletic gears, other merchandise items that can be imported under the ATA System are:
1. Aerospace
2. Agricultural equipment
3. Antiques and antiquities
4. Art such as paintings, sculpture and installations
5. Circus animals, props, sets, costumes
6. Computer equipment including routers, networking devices
7. Construction and mining equipment
8. Defense and military items, security and surveillance, aircraft, unmanned vehicles
9. Diagnostic devices
10. Electronics including laptop computers
11. Jewelry
12. Livestock
13. Medical devices
14. Research and scientific equipment
15. Robots and robotic devices
16. Telecommunications
17. Trade show exhibit booths
18. Water equipment
The country’s top trading partners of the Philippines — China, US, Japan, Hong Kong, Singapore, Thailand, Germany, South Korea, and The Netherlands — are also members of the ATA System. Taiwan, which is also one of the country’s top 10 trading partners, is not a party. Taipei has its own special, bilateral ATA Carnet with 41 other countries.