Philexport urges removal of regulatory control on chemicals
Restrictions affecting handicraft makers
Handicraft exporters are asking for the permanent deregulation of basic chemicals used in the manufacture of their products.
According to the Philippine Exporters Confederation Inc. (Philexport), micro handicraft enterprises are appealing to the Philippine National Police (PNP) to lift regulatory control over chemicals such as hydrochloric acid and hydrogen peroxide which are widely used as cleansing agents by handicraft makers.
The handicraft exporters said continued government control of these substances would slowly kill the industry.
The PNP last year added 41 chemicals to its master list of regulated substances as part of security efforts against terrorist acts.
The expanded list of controlled chemicals include common household chemicals often used by manufacturers, particularly those in the electronics and semiconductor sectors.
Companies that use the listed chemicals are required to secure a permit from the PNP to import, handle, or transport them.
Last December, the PNP announced the temporary suspension of the regulation of commonly used chemicals until Feb. 9 this year.
It was eventually extended to April or until the implementing rules and regulations (IRR) is finalized.
Three technical working groups (TWG) were also formed to raise the concerns of affected micro, small and medium enterprises (MSMEs).
Philexport, which is a member of the TWG, said the MSME inputs are supposed to be part of the IRR that would be enforced in May this year after going through the required legal procedures.
According to Philexport, handicraft exporters argued the industry’s survival depends on numerous micro enterprises that contribute labor and materials to complete an export product.
“These micro entrepreneurs only need a very small amount of cleansing chemicals to clean and bleach the handicraft materials or items, like wood, sea shells, abaca fibers and many others,” Philexport said.
Floro Salinas, proprietor of FNDG Shells and Handicrafts based in Batangas, cited the case of a $10-million order for Philippine
seashell products from the US that was cancelled when micro entrepreneurs could not deliver to the exporter the specific items.
“Result is cancellation and a big loss to the buyers, the exporters and the micro- entrepreneurs, ( and) not only money but good business relationship was damaged. Some additional damage (was) made by those exporters who delivered a sub-standard quality of goods when the foreign buyers detected and rejected the sub-standard items,” Salinas said.
“These micro entrepreneurs must have easy access to these chemicals like before when they could just buy the muriatic acid or hydrochloric acid in grocery stores and hardware stores, or at least give them easier access to these chemicals,” he added.
Dan Lachica, president of the Semiconductor and Electronics Industries in the Philippines Foundation, Inc., said the draft IRR for the law was circulated last Feb. 7 for comment by concerned industries.
“It is in our earnest prayer that PNP and the private sector will finally reach an agreement on the chemical regulations on March 7, which is the scheduled date of the next TWG meeting,” Lachica said.