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Arroyo Removes Several Export Fees

Philippines President Gloria Macapagal-Arroyo this week signed Executive Order No. 554, which eliminates fees on clearances, inspections, permits, and certificates for the export sector. The order also scrapped other documentation requirements. In a statement, Ms. Arroyo said the elimination of the fees and charges on several export procedures is aimed at improving the competitiveness of the said sector in the international market.

The order was directed to all departments, bureaus, commissions, agencies, offices as well as government corporations. Ms. Arroyo believes the fees and charges were undermining the competitiveness of the export industry in the Philippines. She cited the 6.5 percent growth in the export market for the Philippines between 2001 and 2005, which bodes well for the country`s economic growth.

The fees on commodity export clearance requirements were not covered by the executive order, so as not to violate the country`s international commitment. Export limits as a result of existing import quotas in other countries such as sugar, will be exempted from the order. Several U.S. companies based in the country have also shut down recently, indicating a vast change in the economy of the many-island nation.