Handicrafts stakeholders say AO 31 will hurt industry

Handicrafts industry stakeholders such as the Philippine Chamber of Handicrafts Industries will submit a position paper to the government on the negative effect that Administrative Order No. 31 could have on the industry. Chamber president Dennis Orlina said that AO 31, which authorizes increases in government fees and charges, will affect the industry "because our raw materials are sourced in the countryside," and barangay fees are also covered by AO 31. Because of this, he said, production costs could increase by seven to 10 percent. Orlina added that the government should instead consider Executive Order No. 554, which exempts exporters from several government fees and charges. "Competitiveness is still an issue in the country and the cost of doing business is still high," he said. Orlina added that “the margins are very small" and that exporters cannot pass on the cost of higher government fees to customers as “buyers are not changing their budget.” The Export Development Council already sent a position paper to the government outlining similar arguments. — BM, GMA News