Groups buck added paperwork burden on MSMEs

by Roy Stephen C. Canivel, Philippine Daily Inquirer, 3 Nov 2020

MANILA, Philippines — Three local business groups are calling for a review of a draft circular on licensing and registration of food businesses, producers and processors, arguing that it will just be an added burden for micro, small and medium enterprises (MSMEs).

The Philippine Chamber of Commerce and Industry (PCCI), the Philippine Exporters Confederation Inc. (Philexport) and the Philippine Food Processors and Exporters Organization (Philfoodex) recently sent its joint position paper to the Department of Agriculture-Bureau of Plant Industry (DA-BPI).

In a recent statement, the groups said that the proposed circular could only lead to duplication in processes and fees throughout the supply chain because of the many agencies already involved in ensuring farm-to-table accountability of food producers and processors.

They said this was in reaction to a draft of the DA-BPI’s guidelines on licensing and registration of food business operators and facilities in the primary production and minimal processing of plant food.

“We are in a pandemic and MSMEs are already in survival mode, with about 50 percent of enterprises already closed due to weakened market demand and inability to comply with many and expensive safety protocols,” they said. “The additional burden from this regulation will slow down the recovery, if not kill the struggling MSMEs at this point of the current crisis.”

They also underscored that a number of existing accreditation systems and regulatory policies were already implemented by agencies in relation to food safety. Aside from the DA, these agencies included the Department of Health and the Bureau of Customs as well as local government units.

On top of this, exporters must also comply with the strict import requirements and standards of buyers.

They urged the DA-BPI to review the draft circular to ensure that the private sector “is not unreasonably burdened.”

They also recommended that the Anti-Red Tape Authority help streamline documentary requirements and processes toward eventual automation to improve service and efficiency and ensure business continuity of MSMEs.