Department of Trade and Industry

Bam: Consumer Act amendments to give DTI more teeth, cover ICT

In a move to give the Department of Trade and Industry (DTI) more teeth against erring businesses and enhance consumer protection, Sen. Bam Aquino has filed a measure amending the 24-year-old Consumer Act of the Philippines.
 
“In order to build stronger commercial systems and maintain thriving markets, there is a need to bolster the rights of consumers and we need to do this at the soonest possible time,” Sen. Bam said in Senate Bill No. 1241 or the Revised Consumer Act of the Philippines.
 
“The measure aims to amend the 1992 Act in order to address the current issues facing our consumers and markets,” added Sen. Bam, chairman of the Committee on Trade, Commerce and Entrepreneurship in the 16th Congress.
 
If enacted into law, the measure gives the DTI authority to close down any establishment caught in the act of selling, distributing, manufacturing, producing, displaying or importing hazardous and defective products.
 
It also increases administrative fines against erring businesses from P50,000 up to P10 million. The current law imposes a fine of P500 to P300,000.
 
“The fines should amount to five percent of the gross value of sales of the consumer product or service subject to the consumer complaint,” he stressed.
 
The amendments include provision for new information and communications technologies (ICT), such as mobile phones and internet, which is crucial with the advent of the e-commerce industry.
 
In addition, the bill provides greater protection to consumers, particularly from false and deceptive advertising using mobile phones and the Internet.
 
“Proposed provisions in this measure also aim to better protect consumers from dangerous and unsafe products and abusive sales practice,” said Sen. Bam.
 
The proposal also reiterates the eight consumer rights (rights to basic needs, safety, basic information, choose, representation, redress, consumer education and healthy environment) and five consumer responsibilities (critical awareness, action, social concern, environmental awareness and solidarity).
 
Furthermore, the measure mandates manufacturers to maintain a consumer hotline or service center that consumers can easily reach for complaints and inquiries by phone, email or other effective means.
 
In addition, foreign products with labels written in foreign characters or language will be allowed entry into the country only if they have a corresponding English or Filipino translation.
 
The measure will place the National Consumer Affairs Council (NCAC) under the Office of the DTI Secretary to give it more independence and power.
 
It will also be expanded to include the Bangko Sentral ng Pilipinas, Department of Energy, Department of Environment and Natural Resources and the Department of Information and Communication Technology. 
  
Businesses offering price-discounted rates for single or bulk purchase of products or services will be exempted from the requirement to secure a sales promotion permit , alleviating them of the added burden. This move will help to facilitate e-commerce in the country.

 

Iloilo Entrepreneurs to Enjoy Access to Capital from Negosyo Center

ILOILO CITY — Entrepreneurs and would-be businessmen will now enjoy access to financing and other assistance with the opening of the country’s second Negosyo Center onFeb. 6 at the Department of Trade and Industry (DTI) building this city.

Senator Bam Aquino, author of Republic Act 10644 or the “Go Negosyo Act”, will formally open the Negosyo Center together with several local and DTI officials, led by Secretary Gregory Domingo, Undersecretary Zenaida Maglaya, Iloilo Governor Arthur Defensor, City Mayor Jed Patrick Mabilog and League of the Municipalities of the Philippines Iloilo Chapter Head Neil Tupas.

The “Go Negosyo Act” provides for the establishment of Negosyo Centers in provinces, cities and municipalities in the country.

“The opening of a Negosyo Center in Iloilo City will boost the development of micro, small and medium enterprises, creating jobs and livelihood in the community,” said Sen. Bam.

Sen. Bam said the Negosyo Center will provide a unified and simplified business registration process, thus helping ease of doing business and fast-track government processes in putting up a business in Iloilo City.

“By making business registration simpler and more efficient, we hope to encourage more Filipinos to start their own small businesses to stimulate the local economy,” Sen. Bam emphasized.

Iloilo has been ripe for investment and economic growth. In 2012, it recorded an impressive expansive growth of 7.5%, even surpassing the national growth rate of 6.6%.

Aside from ease of doing business, Sen. Bam said the Negosyo Center will help link up entrepreneurs with microfinance institutions that provide financing without collateral.

“We aim to develop and spur the rice, sugar cane, hog and commercial fishery industries of Iloilo. We want them to grow into bigger businesses and be able to compete in larger markets,” added Sen. Bam

In addition, the Negosyo Centers will provide courses and development programs, training, advice on business conceptualization and feasibility, management, capability building, human resources, marketing and other support services.

Life Bank Foundation Inc. president Manuel Perlas hailed the establishment of the Negosyo Center here, saying it will open up horizon for entrepreneurs to enhance their business skills and expand their networks.

“We hope this will reinforce the growth of bayanihan economics that is critically needed for poverty eradication to take root throughout the country,” Perlas said.

The Negosyo Center in Iloilo City is the second in the country, next to Cagayan de Oro, which was established last November.

As mandated by RA 10644, Sen. Bam expects that around 100 Negosyo Centers will be established in different parts of the country this year.

“With the help of DTI, I hope we can reach or even exceed our target for this year,” Sen. Bam said.

First Negosyo Center Launched in Cagayan de Oro

It’s all systems go for the Go Negosyo Act with the launching of the country’s first-ever Negosyo Center today (Thursday) in Cagayan de Oro City.

“The opening of the first Negosyo Center in the country eases the doing of business in the city, as it will help fast-track government processes in putting up a business,” said Senator Bam Aquino, author of Republic Act 10644 or the Go Negosyo Act.

“The Negosyo Center will boost the development of micro, small and medium enterprises, creating jobs and livelihood in the community,” the senator added.

Aquino said the Cagayan de Oro Negosyo Center will be the first of many, as RA 10644 mandates the creation of such in all provinces, cities, and municipalities in the country.

“We are closely working with the Department of Trade and Industry (DTI) to establish more Negosyo Centers all over the country,” Aquino said.

Aquino said Negosyo Centers will provide a unified and simplified business registration process, making it easier for entrepreneurs to register and start up their businesses, as well as gain access to sources of financing.

“By making business registration simpler and more efficient, we hope to encourage more Filipinos to start their own small businesses to stimulate the local economy,” Aquino added.

In addition, the Negosyo Centers will provide courses and development programs, training, advice on business conceptualization and feasibility, financing, management, capability building, human resources, marketing and other support services.

“We call on the businessmen and entrerpreneurs of Cagayan de Oro to engage with the Negosyo Center and give feedback on its operations so we can continuously improve its services to the public, as we replicate it nationwide,” Aquino added.

The DTI provincial office at the ground floor of Antolin Building in Cagayan de Oro City will house the first Negosyo Center in the country.

Aquino will attend the launch together with invited local officials, Cagayan de Oro City Vice Mayor Caesar Ian Acenas, Misamis Oriental 1stDistrict Rep. Peter Unabia and Governor Vicente Emano.

Also attending the event are DTI undersecretary Zenaida Maglaya, DTI Misamis Oriental provincial director Eliza Pabillore, assistant director Jerry Clavecillas of the Bureau of Small and Medium Enterprises Development and assistant regional director Linda Boniao of DTI Region 10.

The DTI will also sign a memorandum of agreement (MOA) with several industry partners to provide technology enablement and coaching sessions for MSMEs.

Transcript of Sen. Bam Aquino During the Budget Hearing of DTI

On Port Congestion

 

SECRETARY GREGORY DOMINGO: The problem came in three phases and each phase had a different sort of problem although they were quite interrelated. The first phase was when the Manila truck ban was imposed in February and for the next month or so, the problem was the movement of trucks in and out of the port.

When we talk about the port congestion, tatlo iyon. One is the truck capacity in and out. The second is the container yard capacity and third is the ship site capacity, which is the loading and unloading of vessels.

Sa first phase po, ang problema doon ay truck capacity. Nalimit ang ikot ng truck so nangyari po, ang ship site di tumigil dahil padating pa rin ang barko so na-affect ang container yard capacity.

Umakyat po nang umakyat iyong number of containers sa port so iyon po ang second phase naman.

Una, iyong truck capacity ng impact for one month. After one month, napuno po ang ating container yard so it became a container yard limitation. Plus, the truck capacity limitation tapos nung naresolba na iyong mga truck ban tsaka nakagawa ng ruta, we moved to the third phase, which was about a month ago wherein the truck capacity limitation were basically improved drastically.

Ngayon, ang lakas na po ang daloy ng truck. Before Thursday, Friday last week, we were doing 9,000 trips per day from a low of 3,000 a day during the truck ban.

Pero ang nangyari po ngayon is, ang problema ngayon nag-iba na. Iyong ship site ang naging problema because there are more containers being brought in than being taking out.

Ngayon, ang container yard capacity umakyat po ang utilization. ICTSI (International Container Terminal Services, Inc.) is about 100 percent while ATI (Asian Terminals, Inc.) is about 92 percent.

Pag masyadong mataas ang container yard utilization, lalagyan na naman nila ng containers ang circulation roads which limit the movements of the crane, movements of the truck. Baka ma-affect na naman ang throughout ng trucks so doon po tayo.

Ang solution po dati ay utilize Batangas port. Now Batangas port is now fully utilized. Gamit na gamit po ang Batangas port ngayon.

Pangalawa po, we are now using the port five out of seven days a week. That’s a 20 percent limitation on capacity. We are now encouraging the companies at saka mga brokers and everybody to utilize the extra two days.

Kung magawa po ang extra two days na iyon, then ma-stabilize ang situation po. Then pagdating ng first quarter during the lean season, then we can clear a lot of the congestion sa port.

Pero now na ‘ber’ months na tayo where iyong dating ng containers ay napakalaki, mahirap nating ma-reduce ang port congestion. All we can hope for is really optimize it para hindi ma-hamper masyado ang movement ng goods.

 

Sen. Bam Aquino: During our hearing, napag-usapan iyong pagbabawas ng mga containers and I think the goal was x thousand a day na mailalagay sa PEZA zones.

 

Has that helped out? Nabawasan ba ang containers natin because of those new areas?

A: From our last hearing po, lahat po ng nasabi roon, karamihan nagawa na po. Like the movement of containers to the port, iyong movement of seized containers ng Customs so that’s in fact some is ongoing still. Iyong pagbukas po ng container yards outside the port, gaya sa PEZA, nangyari na po. So marami na pong nadagdag na container yard capacity.

 

Q: But has that lessen the number of containers? If I’m not mistaken, 80,000 containers ang capacity. And you wanted it to bring down to 60 to 65 thousand right?

A: Nasa mga 78,000 yata po tayo ngayon.

 

Q: So by three thousand natin naibaba because ber months na, mas dumarating ang mga ships basically?

A: Oho, tsaka hindi nailalabas ang containers. Let’s say mag-unload tayo ng 4,000 containers, pero mag-lo-load tayo 3,000 lang kaya nadadagdagan per day. Kailangan mag-usap talaga ay with the shipping lines but they have to cooperate.

 

Q: How about domestic shipping lines natin?

A: Hindi po affected.

 

Q: So the port congestion issue, you’re saying, will continue until 2015?

A: Opo.

 

Q: We’re hoping na kapag nag-lean months in the first quarter of 2015, doon tayo mas magbabawas ng containers

A: Opo, during the first three months of 2015.

 

Q: The traffic in NLEX that happened for a few days, that’s a direct consequence of us opening up the lanes sa port?

A: Ang understanding ko po hindi nasunod ang ruta. Na-divert to smaller roads kaya nagkabuhol-buhol po ang traffic.

I guess we didn’t have enough enforcers so it was being ran by the local city government iyong enforcement. So now ang dinecide po ng Palasyo is that the routes going from NLEX to the port will be manned by MMDA and the national police.

 

Q: That special route will be there until 2015?

A: Until ma-resolve po ito. Hopefully, first quarter of next year.

 

Q: There’s no other way to speed up the process of taking out the containers?

A: Kung magawa natin seven days a week. Napaka-critical po iyon. If we’re able to use the additional 20 percent, that will solve almost all of our problems.

 

Q: From the time we had a hearing, di pa rin operational ang port ng weekends and Monday morning?

A: We’ve been pushing. The chambers are part of the task force. Hindi rin nila matulak.

 

Q: Kanina, secretary you mentioned the 9,000 trips?

A: In and out po.

 

Q: Roughly we can only do maximum 4,500 na release per day? We cannot increase that 4,500 to a higher amount?

A: Puwede po. May nakita na po akong report na umakyat ng 9,300. I think hanggang 10,000.

 

Q: So we need to basically, kung one, we need to work during the weekends and that’s dependent on the private sector and our processes need to double out para pabawas tayo at hindi padagdag.

 

 

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