EDC: Gov't order allowing new fees, fee increases could harm exports

A recent order from Malacañang authorizing government departments and agencies to increase service fees and implement new ones could negatively affect exporters’ competitiveness and the viability of local exports, said the Export Development Council. Administrative Order No. 31 directs departments, bureaus, commissions, agencies and other instrumentalities of the government to rationalize the rate of fees and charges, increase their existing rates, and impose new ones. In a position paper, the EDC said the order effectively cancelled all previous presidential orders, including one that required a go signal from the National Economic Development Authority before agencies could impose new fees. The council said most of the fees charged by government agencies for the processing of papers of exporters have already been reduced to affordable levels, or free in some cases. AO 31 cancels all of these privileges, said the EDC. It also said there was a chance that AO 31 could be abused, even though there was a preamble in the directive saying that fees must be reasonable for exporters. The council also sought clarification on whether the new order repeals Executive Order No. 554, exempting exporters from several government charges. Exporters had already voiced their concerns on the appreciation of peso against the dollar, as well as weakened demand from global markets such as Europe, China and the United States, which resulted in fewer shipments of local products in the past months. — BM, GMA News