Consumer group warns vs lifting of price freeze on basic goods

MANILA - Lifting of price freeze on basic necessities may lead to price increases on essential goods, a consumer welfare group warned Friday, as the government begins to relax lockdown rules in various parts of the country.

Laban Konsyumer said that if the price freeze on basic goods ends on Friday, retailers and manufacturers will take advantage and increase prices immediately.

“Ang signal niyan sa mga negosyante, 'Oh, umpisahan na natin 'yung ating mga proposal for price increases,” said Laban Konsyumer president Vic Dimagiba.

(That's a signal for merchants to say, "Oh, let's start our proposals for price increases.")

The Department of Trade and Industry (DTI), Department of Agriculture (DA), and Department of Health (DOH) on May 8 issued joint memorandum circular (JMC) No. 2020-01 entitled "Price Freeze under a State of Calamity throughout the Philippines due to the Coronavirus Disease 2019."

Under that JMC, prices of basic necessities under the jurisdiction of the DTI, DA, and DOH were fixed at their prevailing levels, effective until Friday. These included food, water, agricultural products, medicine, and medical supplies.

Dimagiba said the agencies can recommend to President Rodrigo Duterte to extend the price freeze.

“Kung ang intention at spirit ng Bayanihan to Heal as One Act ang ating susundin, hindi mo basta-basta pwedeng i-lift. Even then, kung talagang gustong tumulong ng pamahalaan, itong mga regulators [should] ensure na ang presyo ay stable. Wala nang magsasamantala na, magtataasan ng presyo,” he said, citing the measure, which strictly prohibits overpricing and hoarding of goods during the pandemic.

(If we are following the intention and spirit of the Bayanihan to Heal as One Act, we can't just lift the price freeze. Even then, if the government really wants to help, these regulators should ensure prices are stable. No one should take advantage, increase prices.)

But Trade Undersecretary Ruth Castelo explained that they have to follow the Price Act, which states that any price control in the country should be effective not for more than 60 days. She said this is why different agencies are also issuing suggested retail prices (SRPs).

“Between the Executive Order of the President and a law passed by the Congress, promulgated by Congress, susundin natin siyempre 'yung Price Act,” she explained.

(Between the Executive Order of the President and a law passed by the Congress, promulgated by Congress, we should follow the Price Act.)

“Mayroong mga measures naman provided in the Price Act like the mandatory price ceiling. Upon the lifting of the 60-day-period, pwedeng mag-recommend ang implementing agencies ng price ceiling to the President, and then when the President approves it, yun ang i-implement natin na presyo but we have the suggested retail price which is strictly enforced,” she added.

(There are measures in the Price Act, like the mandatory price ceiling. Upon the lifting of the 60-day-period, implementing agencies can recommend price ceilings to the President, and then when the President approves it, they will be implemented by us, but we have the suggested retail price which is strictly enforced.)

She said that the DTI has been coordinating with law enforcement groups such as the police, military and the National Bureau of Investigation as early as January, during the Taal Volcano eruption to strictly enforce implementation of the SRPs.

“Remember in the Price Act, ang fini-freeze natin ay prevailing price. Magkakaiba 'yun per region, per province. Very challenging ang implementation namin ng price freeze per province. meron pang iba per municipalities, unlike the suggested retail price that we have that covers all regions and provinces in the country.”

(Remember in the Price Act, what we are freezing our prevailing prices. They are different per region, per province. Our implementation of price freeze is very challenging as they differ per province and even per municipalities, unlike the suggested retail price that we have that covers all regions and provinces in the country.)

She assured the DTI will not approve pending requests from manufacturers of processed milk, detergent soap, processed canned goods, and condiments to increase prices anytime soon, while the country is still fighting COVID-19.

DTI chief Ramon Lopez earlier said that while the Philippines stays under state of calamity due to the COVID-19 pandemic, price freeze will stay in place.

"We will just renew the price freeze. Kasi nasa batas, 60 days lang ang price freeze (Under law, price freeze is only for 60 days). Pagka-state of calamity, price freeze talaga (During state of calamity, price freeze is really implemented)," he said.

Agriculture Secretary William Dar meanwhile they will look into expanding the SRPs of agricultural and fishery products to include more items that were previously not covered. He also appealed to retailers and producers not to take advantage of the situation.

“Kung wala kaming basehan sa prize freeze, pag-aaralan namin kung pwede na yung suggested retail price mechanism. Let me again request everyone not to take advantage during calamities or pandemic like COVID-19. Tulong-tulong po tayo sa ating mga mamamayan, mga magsasaka, mangingisda at tsaka consuming public," he said.

(If we don't yet have any basis on prize freeze, we will study if the suggested retail price mechanism is okay. Let me again everyone not to take advantage during calamities or pandemic like COVID-19. Let us help our citizens, farmers, fishermen and consuming public.)

news.abs-cbn.com

Noche Buena price watch: 'Premium' may rise, cheaper brands steady

MANILA — The retail price of some premium Christmas food items like ham will likely increase, as higher manufacturing costs offset lower pork prices due to the African swine fever outbreak, the trade department said.

Manufacturing costs rose 30 to 60 percent, which could push the prices of premium fare for Noche Buena by 2 to 9 percent. Some traders also imported meat requirements for Christmas hams, said Trade Secretary Ramon Lopez.

Prices of cheaper products did not move, Lopez told DZMM.

"Takot din silang maipasa ang presyo kasi walang bibili e saka baka lumipat sa ibang brands," he added.

(They're also afraid to increase prices because consumers might not buy or patronize other brands.)

The DTI is inspecting markets daily to ensure that chicken prices do not exceed P180 per kilo as consumers switch to poultry from pork.

African swine fever does not affect humans despite causing hemorrhagic fever in pigs that almost always ends in death. An outbreak of the virus in parts of Rizal and Bulacan provinces has prompted authorities to cull around 7,000 hogs.

Pork accounts for 60 percent of meat consumption in the Philippines, the world's 8th biggest pork producer by volume, with its swine industry estimated at P260 billion, the Department of Agriculture earlier said.

source: news.abs-cbn.com

Qualifying for a Mortgage When You’re Self-Employed

When John Kennedy observed that “life is unfair,” at a press conference in 1962 he wasn’t referring to the challenges self-employed workers would face getting a mortgage fifty years later—but he would have been right.

If you are one of the 14.6 million people in the US[1] who make a living working for yourself—about 10 percent of the total workforce—you don’t fit neatly into the profile of borrowers whose income can be easily documented for a mortgage application.

Tax returns don’t tell the whole story

It’s not impossible to get a mortgage if you are your own boss, but you’ve got to jump through some extra hoops to qualify.  That’s because self-employed borrowers typically have to provide two years’ worth of tax returns, which lenders will want to obtain directly from the IRS.

Yet tax returns often don’t accurately reflect their take-home pay.  Self-employed people typically take advantage of a slew of tax deductions related to their businesses, from retirement plans to home offices.  These reduce their taxable income, but they also reduce their adjusted gross income, which is what lenders look at for proof of income.

In some cases, mortgage lenders will allow certain deductions to be added back to the income such as depletion, depreciation or a large, nonrecurring item.

Plan ahead if you can

One solution is to plan ahead and write off fewer expenses for the two years leading up to applying for a mortgage, a strategy that could either cost you significantly at tax time or require you to refile you taxes after your mortgage is approved.

Another suggestion is to separate your personal funds from your business by using a credit card devoted to your business expenses, then convince a lender that the debt isn’t against you because it belongs to the business.  Finding the right lender could still be difficult, and you could still miss some of the most popular deductions, such as home businesses and cars used for business.

Timing is also important.  Self-employed workers typically have highly volatile businesses.  By using income averaging over 24 months, borrowers can avoid declines in income from one year to the next.

Reduce debt to improve your chances

The reason lenders want to see your income is because they need it to determine whether you have enough income to make you monthly debt obligations, a calculation expressed as your debt to income ratio. The median DTI for recurring debt on closed conventional purchase loans today is about 35 percent for recurring debt payments.[2]

By reducing or eliminating your recurrent debt payments, such as your car or student loans, you can reduce your DTI ratio, which will help you qualify for a larger mortgage.

source: totalmortgage.com

DTI forms investigation panel amid Montero acceleration issues

MANILA - An investigation team has been formed to look into the incidents of alleged sudden and unintended acceleration of Mitsubishi Montero units.

The Department of Trade and Industry (DTI) said the investigating panel will launch an investigation on the alleged incidents involving the vehicle type released from 2010 to 2015.

The panel is also tasked to issue notices to stakeholders concerned to seek their inputs and comments on the matter.

After two weeks, the panel will be required to submit a report and recommendation on the issuance of the appropriate order for its mandatory product recall, prohibition or seizure from public sale, or distribution of the vehicle.

The members of the investigating team are DTI director Anselmo Adriano, Claire Cabochan and Danilo Enriquez.

DTI earlier said it cannot order the car company to recall the vehicle because it does not have the capability and "technical know-how" to do so.

Mitsubishi Motors Philippines, meanwhile, said a total of 97 cases of Sudden and Unintended Acceleration (SUA) have been reported in the country so far.

source: www.abs-cbnnews.com

Now you can track your 'balikbayan box' online

MANILA, Philippines - Waiting for the balikbayan box your relatives sent from abroad? Now you can find out the package's status through an online tracker launched by the Bureau of Customs.

On Tuesday, the BOC launched an online tracker where recipients of balikbayan boxes can check on the status of their packages.

The online tracker can be found on the BOC Balikbayan Box Tracker microsite.

The tracker contains information on all balikbayan box shipments lodged with the Bureau, including its country of origin, Bill of Lading (BL) number, name of the foreign forwarder, name of the local forwarder/broker, date entry filed, date cleared, and current status.

To track the shipment of your balikbayan box, the recipient should know the name of the forwarder and the BL number.

"This is our way of helping our kababayans find their boxes when they encounter problems. We have received several complaints from OFW families blaming BOC for lost boxes. With this tracker, the public will not be given the run-around by people responsible for delivering their balikbayan boxes," Customs Commissioner John P. Sevilla said.

While you can now track your balikbayan box, it is still likely that packages that were sent in October or November would arrive by early 2015 due to the port congestion. Cargo forwarders earlier said only balikbayan boxes sent on or before August will make it this Christmas.

Less complaints?

The Department of Trade and Industry said it expects the online tracker to lessen consumer complaints on loss, non-delivery and pilferage of balikbayan boxes.

"The tracker can serve as a venue for accredited Philippine sea freight forwarders to police their own ranks and prevent questionable acts and dealings,” said Trade Undersecretary Victorio Mario A. Dimagiba.

The DTI urged Filipinos to contract services of cargo forwarders accredited by the Philippine Shippers Bureau. The list can be found in the DTI website.

The DTI also warned OFWs to be wary of cargo forwarders offering services at fees that are way below or way above current industry rates.

An estimated 5.5-million balikbayan boxes are sent to the Philippines each year, about 40 percent of which arrive in the months leading to Christmas season.

source: www.abs-cbnnews.com

DTI releases IRR for 'Lemon Law'

MANILA – The Department of Trade and Industry (DTI) has announced the start of the implementation of the "Lemon Law" that will protect brand new buyers from defective vehicles.

One of the pertinent provisions of the implementing rules and regulations (IRR) is the mechanism for complaints up to the adjudication process.

A complaint can have four attempts at bringing up the defect of the vehicle to the DTI before a final decision can be made by the DTI secretary.

Under the process of mediation, the consumer has to demonstrate the defect in the presence of the dealer; the dealer receives and accepts the defect; dealer then tells the consumer the estimated time it takes to repair, but it has to be within 15 days; and the consumer will then authorize the repair and wait for 15 days.

If the defect recurs, another complaint can be brought to the DTI until the fourth attempt is exhausted.

If the defect occurs again, the fifth complaint will be elevated to the DTI secretary, whose decision becomes final and unappealable.

"The Lemon Law did not take the warranty period, it does not impair the rights of the consumers," said Trade Undersecretary Vic Dimagiba, emphasizing that the warranty period will still be observed hand in hand with the provisions of the Lemon Law.

According to Trade Secretary Gregory Domingo, it's possible that the DTI will publish the list of car brands that have many complaints under the Lemon Law, if it becomes necessary.

Car manufacturers group CAMPI, on the other hand, said the law will bridge the gap between consumer and the auto industry and realize what customer satisfaction is.

source: www.abs-cbnnews.com

DTI moves to lessen undelivered balikbayan boxes

MANILA -- The Department of Trade and Industry on Wednesday signed an agreement with the Association of International Shipping Lines Inc. (AISL) in a bid to curb the number of missing or undelivered balikbayan boxes to the country.

In a statement, the DTI said this partnership will involve information-sharing of lists of accredited sea freight forwarders and those with pending administrative cases or complaints.

"With the proper information from DTI, the shipping lines may refuse carriage of consolidated balikbayan box shipments if the foreign consolidator is in DTI's Advisory of those companies, and/or the Philippine Agent/Freight Forwarder [has] complaints [against it] at DTI or has no DTI accreditation to engage in freight forwarding business," the Trade department said.

There are currently 633 eligible firms in the list made by DTI's Philippine Shippers' Bureau, which implements an accreditation scheme for freight forwarders as mandated under Executive Order No. 514.

The DTI hopes to pull down the number of complaints-- already at 550 since 2008 -- from missing and undelivered balikbayan boxes by tapping the AISL, which is composed of 41 container shipping lines that carry around 85% of the volume of Philippine export and import goods.

source: www.abs-cbnnews.com

Negros To Promote Arabica Coffee At Next FOODEX In Japan

MANILA, Philippines — Negros province is eyeing a slice of the US$9-billion global market for Arabica coffee as it joins the Philippine delegation for the first time in the upcoming 37th International Food and Beverage Exhibition or FOODEX Japan 2012 slated on March 6-9 at Makuhari Messe in Chiba, Japan.

Led by the Department of Trade and Industry (DTI) through the Center for International Trade Expositions and Missions (CITEM), the Philippine presence in the fair affirms the country's long-term strategy to further deepen ties with Japan, historically one of the Philippines' strongest trade partners.

"Targeting Japan's emerging organic market is part of our aggressive exploration of new niché areas for our food products, even as we also aim to improve the competitiveness of our manufacturers by exposing them to international benchmarks," said Rosvi C. Gaetos, Executive Director of CITEM.

Representing Negros Island's participation is the Negros Island Sustainable Agriculture & Rural Development Foundation, Inc. (NISARD) under the leadership of Negros Occidental Governor Alfredo Maranon, Jr. NISARD's Arabica Coffee Expansion Program envisions to grow one million organic Arabica trees by 2013, in order to position the island as a major supplier of organic Arabica coffee in Asia.

The program establishes organic Arabica coffee nurseries in various assisted community organizations in Mt. Kanla-on Natural Park (MKNP) and in the Northern Negros Forest Reserve (NNFR) to protect the remaining forest cover in these areas. It also provides additional income to the coffee farmers and equips them to serve the needs of the local market and eventually export in the future.

"While Negros Island currently has more available Robusta coffee trees than Arabica, our goal is to capitalize on the internationally preferred Arabica variety and have a sustainable supply within three to four years," said Rommel T. Ledesma, General Manager of NISARD.

"FOODEX Japan is an excellent opportunity to generate buzz on our goal to becoming Asia's organic food bowl and to generate more awareness on the advantages of healthy, naturally grown food. Japan is the world's third largest importer of coffee and as a market has great potential for organic agro-based products. We look forward to building partnerships with Japanese investors to help us further these goals," he said.

Aside from organic coffee, Negros Island will highlight its other organic products including muscovado sugar, unpolished rice, herbal products, and essential oils.

source: mb.com.ph