Philippines compromised for Allowing China Export to Europe used the Philippines to avoid TAX

Bloomberg reported 27 Nation bloc in Europe Extends Levy on Chinese Stainless-Steel Screws to Philippines.

The European Union extended to the Philippines a tariff on stainless-steel screws and bolts from China, saying Chinese exporters used the country to evade the levy meant to aid EU producers like Italy's Bontempi Vibo SpA.

The EU said Chinese exporters of stainless-steel fasteners shipped them to Europe via the Philippines to dodge the 27.4 percent duty. This is the outcome of a probe that also covered Malaysia and Thailand, where the EU concluded that no Chinese circumvention took place.

The import tax "was circumvented by trans-shipment via the Philippines," the 27-nation bloc said in a decision today in Brussels. The extension exempts two Philippine companies -- Multi-Tek Fasteners Inc. and Rosario Fasteners Corp. -- and will take effect after publication in the EU's Official Journal within a week.

The EU renewed the trade protection against China in January 2012 for another five years to help European producers that also include Bulnava Srl of Italy, Germany's Reisser Schraubentechnik GmbH and France's Ugivis SA counter below-cost, or "dumped," imports from the Asian country. The 27.4 percent levy is the maximum of three rates, which depend on the Chinese exporter. The lowest levy is 11.4 percent.

At the time, the EU also reimposed for five years anti- dumping duties as high as 23.6 percent on stainless-steel fasteners from Taiwan.

The extension of the maximum levy against China to the Philippines is the outcome of a circumvention probe that the EU began last June and will apply retroactively to imports as of that time, when the bloc also began to register shipments of stainless-steel fasteners from the Philippines.

Source: Bloomberg 

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WEF lists Philippines as one of tourism sector's “rising stars”

(Updated 11:54 a.m.) The World Economic Forum reported on Thursday that the Philippines now one of the world's "rising stars" and the most improved Asian nation in terms of travel and tourism.

The Philippines "is the most improved country in the region," WEF said in its "Travel and Competitiveness" report, noting the country's "comparative strengths" in natural resources, price competitiveness, and a "very strong" prioritization of the sector.

In the WEF ranking of 140 countries, the Philippines placed 82, up from 94 in the WEF 2011 list that  covered 139 countries.

"Government spending on the sector as a percentage of GDP (gross domestic product) is now first in the world, and tourism marketing and branding campaigns are seen to be increasingly effective," the WEF report read, referring to the Aquino administration's tourism initiatives and branding—"It's more fun in the Philippines"—campaign.  

"In addition, the country has been ensuring that several aspects of its policy rules and regulations regime are conducive to the development of the... sector," it added.

WEF listed better protection of property rights, more openness toward foreign investments, and few visa requirements for foreign visitors as areas where the Philippines fared well in terms of policy.

In a statement on the report's release, WEF called the Philippines along with Panama—whose ranking jumped to 37 from 52—as the world's "rising stars" due to " policy improvements supporting the [travel and tourism] industry."

The report noted the Philippines should improve on other areas to further raise its ranking.

"However, other areas—such as the difficulty of starting a business in the country, in both cost and length of the process—remain a challenge," the report  read.

"Moreover, safety and security concerns; inadequate health and hygiene; and underdeveloped ground transport, tourism, and ICT (information and communications technology) infrastructure are all holding back the potential of the economy's competitiveness," it added.

Last month, Tourism Secretary Ramon Jimenez said his department is targeting a bigger contribution of  tourism to the GDP and partnering with other agencies in improving travel infrastructure and policies.

The government wants to attract 10 million foreign tourists in the country. Last year, there were 4.3 million foreigners who traveled to the Philippines.

The WEF report, meanwhile, noted that Switzerland remained as the world's most competitive travel and tourism destination in 2013.

Germany maintained its second best ranking, while Austria inched up to the third spot from fourth place.

Conceived in 1971 by European business leaders, WEF is an independent international organization that aims to engage business, political, academic and governments to shape global, regional and industry agendas.

The Travel and Tourism Competitiveness Report 2013 assessed 140 economies based on the extent of  factors and policies in place to develop and make the sector more attractive. — Siegfrid Alegado/VS,

GMA News

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China Naval Fleet Haixun 21, 31, 166 Arriving West Philippines Sea; Warship BRP Alcaraz again delayed

Philippine Warship BRP Ramon Alcaraz

Despite the Philippines' repeated protests and condemnation of China's incursions into the West Philippine Sea (South China Sea), a fleet of Chinese surveillance ships has again sailed into the contested waters on "regular patrol missions," Chinese state media reported.

The Maritime Safety Administration of Hainan said the fleet composed of the Haixun 21, the Haixun 31 and the Haixun 166 left the province's Sanya port for patrols in the disputed waters, according to a report in China's state-run Xinhua news agency.

"The missions will strengthen china's maritime law enforcement capacity and test the patrol team's rapid response abilities in the disputed Sea," the report said.

The patrols "will monitor maritime traffic safety, investigate maritime accidents, detect pollution, and carry out search and rescue work," it added.

The patrol is China's second known ship deployment in the West Philippine Sea. It previously dispatched two ships from the city of Guangzhou in southern China.

China earlier announced fishery patrols in the West Philippine Sea, prompting "strong objection" from the Philippines.

The Department of Foreign Affairs did not immediately issue any statement on Saturday but it had many times in the past condemned similar Chinese patrols as violations of the Philippines' established maritime borders.

The Philippine government in January went to a United Nations (UN) arbitral panel to put a stop to China's incursions in the West Philippine Sea. The legal action also seeks to invalidate China's nine-dash line claim, which places almost all of the West Philippine Sea islands within Chinese territory.

China has refused to participate in the compulsory process, a decision that could boost the Philippines' case before the ad hoc tribunal, says a world expert on international law.

"If China does not participate, it will not be able to submit evidence and make legal arguments. So it's really strengthening the Philippines' chances at the tribunal," said Tom Ginsburg, a professor of international law at the University of Chicago.

He conceded, however, that while any UN tribunal decision on the case would be binding, China's compliance would be another matter.

2^nd PHL Warship Again delayed for more sophisticated Trainings for Mk38 Mod 2

The arrival of the BRP Ramon Alcaraz, the second warship acquired by the Philippines from the United States, has been moved to August due to the need to conduct more training for its crew.

Navy spokesman Lt. Cmdr. Gregory Fabic said yesterday that the training of Filipino sailors and the refurbishment of the vessel are still ongoing.

"Their trainings are extensive, training in terms of equipment and shipboard evolution. The travel time takes about two months so it will arrive in August," Fabic said in Filipino.

BRP Ramon Alcaraz will have two Mk38 Mod 2 automatic cannon systems and will be among the first ships in the world to be equipped with state-of-the art cannon systems.

The Mk38 Mod 2 is designed to counter high-speed maneuvering surface targets which system would be installed also in almost all US surface ships by 2015.

Defense officials previously said the BRP Alcaraz would arrive in the country by January or February this year. The schedule was pushed back to April, with officials citing the same reason – the need for Navy personnel to undergo training.

Fabic noted that the use of the ship's equipment requires technical knowledge.

"The (pieces of) equipment are sophisticated like those used for navigation, fire control," he said.

RP Alcaraz was acquired from the US Coast Guard, after the acquisition of BRP Gregorio del Pilar in 2011, and was largely used for drug and migrant interdiction, law enforcement and search and rescue.

The acquisition of the naval assets was intended to enhance the military's maritime defense capability.

Security officials bared plans to fast-track the military's upgrade program amid efforts by China to shore up its presence in the West Philippine Sea (South China Sea). Officials, however, maintain that the upgrade efforts are not directed against any country.

BRP Alcaraz can accommodate up to 180 officers and sailors. The vessel was named after Commodore Ramon Alcaraz, a Navy officer who commanded a patrol boat that shot three Japanese aircraft during World War II.

The government spent more than ₱600 million to acquire the ship.

The defense department plans to acquire two more warships within the first quarter.

Among the countries that are ready to provide defense assets are US, Italy, South Korea, Spain, Israel, Croatia and Australia.

With reports from RFTBP, philSTAR, and INQUIRER

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