Philippine businesses exporting agricultural products, processed agri-food and fish to British markets can utilize a handbook to meet regulatory requirements and leverage the United Kingdom’s (UK) Developing Countries Trading Scheme (DCTS) to thrive in international trade.
The Philippines-Great Britain Export Handbook, https://www.intracen.org/file/handbook-philippinesagripdf, outlines step-by-step guides on topics such as business registration in the Philippines and preparing to export, meeting product and production requirements, UK safety and sustainability standards, understanding customs and related procedures, transport and logistics, and using the DCTS which offers special trade benefits.
“Under the United Kingdom Developing Countries Trading Scheme (DCTS), the Philippines is an ‘Enhanced Preference’ country, which means that Philippine exporters can benefit from zero tariff rates on 92% of product lines,” the handbook said.
To export to the UK using the DCTS, Philippine businesses need to determine the tariff that applies to their product based on their country, understand the rules of origin (ROO) for their products, identify applicable standards and regulatory requirements, and claim preferences under the DCTS.
ROO specifies the extent to which producers/exporters can buy raw materials from other countries and still claim that the product is Philippine in origin, to benefit from the preferential tariff rates.
“To claim preferences, Philippine exporters must confirm that they are eligible to do so and provide documentary proof of the origin of the goods, in the form of an origin declaration or Form A. Exporters must note that this documentary proof of origin is mandatory to claim the preferential tariff rates under the DCTS. Note that in practice, this step is completed before discussing and signing a sales contract,” it said.
After business registration, the next phase involves meeting all necessary production standards and product specifications to successfully export to Great Britain.
The handbook said producers must adhere to compulsory requirements stipulated by British legislation, and voluntary requirements that, while not legally required, are often demanded by purchasers and end users.
The latter include voluntary sustainability standards (VSSs) demonstrating that making a product did not hurt the environment or the people who made the product. These are voluntary and proof of good environmental, agricultural and social practices.
“VSS certifications assure consumers about the quality of the product and that it meets certain criteria, fulfilling their expectations. Businesses can benefit from VSS certifications because they increase the business’s credibility with consumers, provide access to new markets and opportunities, reduce operational costs, increase the adaptability of the business to climate change, etc.,” it said.
The handbook said selecting the right transportation and logistics is an integral part of the export process.
Incoterms, or International Commercial Terms, provided in the sales contract will specify which party will be responsible for identifying the right transportation and arranging for carriage, freight insurance, pre-shipment inspections and delivery to the final destination. Proper and transparent transport documentation is crucial in case of consignment-related disputes.
“Small exporters with small volumes of exports can benefit from the services of freight forwarders and local transportation companies,” it added.
Meanwhile, the Philippines-Great Britain Export Handbook was launched by the Department of Trade and Industry Export Marketing Bureau, host of the SheTrades Philippines Hub; International Trade Centre and British Embassy in Manila last March 27.