CEBU CITY, July 7 Asia Pulse – The Department of Industry (DTI) is willing to help Cebu’s furniture industry cope with stiff competition in the export market.


DTI-7 Director Aster Caberte advised the Cebu Furniture Industries Foundation Inc. (CFIF) to first draw a roadmap for the industry.

The roadmap should identify what kind of support the industry needs from the government and what firms in the sector can contribute, she said.

“Trade Secretary Favila is willing to support the industry. But he wants to see a clear roadmap,” she said.

CFIF president Michael Basubas said aside from stiff competition, the industry does not get enough financial support form the government.

The industry is also opposing certain policies such as the Anti-Smuggling Bill, Customs Brokers Act of 2004, and the licensing requirement of the Philippine Drug Enforcement Agency (PDEA) on the importation of chemical substances with toluene, a component of paint that has further pushed the industry’s performance down.

“They could not support the export sector financially, yet they draft laws that are killing the industry,” Basubas said.

“Instead of becoming an enabler, it is the government that unwittingly imposes a lot of barriers, some of which are, in form of arbitrary policies and multiple requirements through licensing, permits and fees,” he noted.

Basubas said the policies “challenge the competitiveness” of the industry.

DTI’s Caberte said the agency is willing to facilitate talks between CFIF and other government agencies concerned, such as the Bureau of Customs and the PDEA on the issues that affect the industry.

Several industry sectors are opposing the Anti-smuggling Bill’s provision that requires payment of import duties on raw materials before exporters can withdraw the items from bonded warehouses.

Exporters are also opposing the Customs Brokers Act that disallows them from preparing and processing export documents on their own.

The law requires exporters to hire the services of customs brokers which will cause them to incur additional expenses.

Basubas also proposed that the government lift the PDEA licensing requirement if it cannot decentralize the processing of documents.

Paint used in furniture coating contains toluene, one of the substances found in shabu.

(PNA)