Gov’t to issue rules on Mindanao barter trade revival

The government will issue in the next two months rules on President Duterte’s plan to revive the barter trade in Mindanao, the Department of Trade and Industry (DTI) said.

Trade Secretary Ramon Lopez, who will serve as the chairperson of the newly created Mindanao Barter Council (MBC), told reporters yesterday the council would still need to come up with the rules and procedures on allowable goods and limit on the amount of transaction to be covered by the barter scheme.

Signed by Duterte on Oct. 29, Executive Order (EO) 64 seeks to revive the barter system in Mindanao to promote growth and development in the region.

Under the EO, the MBC will be created to oversee and harmonize policies, programs, and activities on barter in the southern part of the Philippines.

The MBC will be comprised of the DTI secretary as chairperson, the Mindanao Development Authority as chairman and Bureau of Customs commissioner as vice chairpersons, as well as representatives from agencies such as the Department of Finance, Department of Foreign Affairs, Department of Agriculture, DTI-Autonomous Region in Muslim Mindanao, Maritime Industry Authority, Philippine Coast Guard and Philippine Ports Authority.

The MBC will be attached to the DTI and will have an office in Jolo, Sulu.

Part of the MBC’s functions is to issue rules and regulations on the registration or accreditation of qualified traders authorized to engage in barter, including registration fees and facilitation of all documents to avail of the zero tariff benefits under the Association of Southeast Asian Nations (ASEAN) Trade in Goods Agreement (ATIGA).

In place since 2010, the ATIGA removed import duties for 98.7 percent of products excluding rice, corn and sugar of ASEAN member states.

The MBC will issue guidelines on the mechanism for the valuation of goods, a list of allowable barter goods, as well as measures to prevent smuggling and circumvention of Customs laws.