Panayam kay DTI Consumer Protection Group Asec. Mary Jean Pacheco
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00:00 in the implementation of Executive Order No. 41
00:02 or the suspension of the collection of pass-through fees.
00:06 We will discuss this with Assistant Secretary Mary Jean Pacheco,
00:12 Consumer Protection Group of the Department of Trade and Industry.
00:15 Asic Pacheco, good afternoon and welcome to the new Philippines.
00:20 Good afternoon, Ma'am Nina. Good afternoon, ADG, Usec, John.
00:26 Thank you, thank you for inviting DTI to your show.
00:31 Nina, we've been friends for a long time.
00:33 I was saying that Usec is my habit, but ADG is also fine.
00:39 We have a lot of programs together.
00:41 So, let's talk about our IRR.
00:45 We just asked for an update on the implementing rules and regulations of Executive Order No. 41
00:50 that will suspend the collection of pass-through fees on transported goods in our country.
00:57 Oh, ADG, I know this is close to your heart
01:01 because we are partners here, Ma'am Nina, with DILG.
01:05 You know, our stakeholders were very happy,
01:11 truckers, logistics providers, manufacturers.
01:15 I'm sure. The President issued Executive Order 41.
01:21 So, the question is, how is the implementation?
01:25 So, our IRR is already in progress,
01:30 and the government has already issued six.
01:33 Oh, so we're already in the IRR stage. Yes, sir.
01:36 So, hopefully, it will be signed.
01:39 Because the consultation is already done, we're already here in the legal scrubbing.
01:44 You know this, right?
01:45 So, we're already in the legal scrubbing, as I said.
01:48 DILG, DILG, DTI, DPWH, DOTR, ARTA, and DOF.
01:58 Because DOF is the Bureau of Local Government Finance.
02:03 It's part of this.
02:05 So, we just have to wait and when it's signed, it will be effective.
02:10 But when do you think it will be?
02:12 Oh, sir, I hope this week.
02:14 Within the month?
02:15 Yes.
02:16 Oh, so it's already close.
02:17 Yes, it's close. I hope it will be effective.
02:19 Who's the agency?
02:20 No, I don't want to hear it.
02:22 No, sir, we became very consultative.
02:29 And we also saw that the EO, because there are details.
02:34 Because, ma'am, the issue here is that the President issued an executive order
02:41 reminding local governments that pass-through fees are prohibited.
02:46 Yes.
02:46 If it's the national road, it's prohibited.
02:50 The local, we know that our local governments have authority to impose fees.
02:58 But our President is talking about the fact that while the price is a bit high,
03:05 to help reduce the logistics cost, we will suspend it first.
03:10 That's our call to local government units.
03:14 So, how is it, speaking of the LGUs,
03:17 the work of our local government units in the draft of the Joint Administrative Order?
03:25 So, the good thing is when the President signed this,
03:32 because there's really a section 2, I remember, the evaluation of ordinances.
03:37 So, the DILG immediately approved this.
03:42 The DILG, he really ordered his regional directors, the DILG Secretary,
03:50 to review all the ordinances relative to the sections that we saw here in EO 41.
04:00 So, immediately, because my numbers are really correct,
04:04 1,500 municipalities, ma'am.
04:08 But I also have a number that I learned from the DILG,
04:13 the 221 provinces and cities.
04:17 Because it's complicated,
04:21 that under the local government code,
04:23 the local government units have taxing power,
04:31 especially for provinces and cities.
04:34 But because of this, all of them, including municipalities,
04:38 have 1,500. But only a few, sir, came out of the DILG memo.
04:45 Only a few are really imposing.
04:47 So, just here in the Megawing, Metro Manila area, and NCR Region 4,
04:53 those are the areas that were really seen.
04:57 And the good thing is we also saw the quick suspension.
05:04 Because that's what I want to ask you, Ginny.
05:06 Because other LGUs say, "We have ordinances."
05:10 But our President said, "If it's national roads, you don't have authority."
05:15 It means that the ordinances are problematic.
05:17 How about local roads?
05:20 What will be our advice to LGUs that there are ordinances in local roads?
05:26 Correct. So, that's what we really learned,
05:29 that ordinances really need to be amended.
05:32 Because they issue ordinances.
05:34 We also have that since ordinances are issued,
05:39 ordinances should be amended.
05:40 Those are the things we are monitoring.
05:43 And the good thing about this, sir, is that we also have reports
05:50 from the private sector.
05:52 Because others don't have ordinances.
05:55 But there are those who impose stickers.
05:58 There are those who don't have legal basis but impose stickers.
06:01 So, DILG said, "Help us, DTI, to identify those."
06:08 So, that's our partnership.
06:10 The information we get comes from the private sector.
06:14 And we give it to DILG.
06:17 Okay, so just to give us an idea, ma'am,
06:19 can you give us an example of how much approximately
06:25 a trucker spends per month because of these pass-through fees?
06:31 Oh, my.
06:32 So, ma'am, what I can share is what truckers say.
06:38 Because it's different.
06:40 So, there are truckers who have different pass-through fees
06:45 and different charges.
06:46 This is what they called on the government,
06:51 "Can we remove that?"
06:52 Because it's different, ma'am.
06:53 So, there are municipalities that, per truck type,
07:00 if you're a 10-wheeler, there are other municipalities,
07:02 it's P250 per truck.
07:04 If you have a smaller truck, it's P150 per truck.
07:09 There are also those who charge P2,000 per truck.
07:14 There are those who charge P300 per entry.
07:17 It's really different, ma'am.
07:18 So, it's really--
07:18 This is a bit confusing.
07:20 Yes.
07:20 So, what can we do about that?
07:22 Because there are people who reacted to this.
07:24 They said, "These classifications are different."
07:27 Can I just give an example?
07:29 In Biñan City, in Cahuayan City,
07:32 and others have different classification for trucks.
07:37 Okay?
07:37 They look at the number of wheels.
07:40 Not the weight of the truck.
07:43 Because when LTO classifies,
07:47 the weight of the truck should be on the weight
07:50 and not on the number of wheels.
07:52 So, what is the weight, the number of wheels?
07:55 So, ma'am, we're really discovering that
07:58 the local government is really different
08:01 in how they impose.
08:03 And in fact, that's why this group is really studying
08:09 because of the EO, there's ARTAN,
08:12 there's DPWH, DOTR, DILG,
08:16 and the Bureau of Local Government.
08:18 Because the standards, ma'am, right?
08:20 So, how do we--
08:23 How much amount will we limit?
08:25 Is it by entry?
08:27 Or is it--
08:29 For example, the national is prohibited.
08:32 For example, your local road.
08:34 If your local road is just one kilometer,
08:37 and the other local road is five kilometers,
08:41 how much will you pay for that?
08:43 So, ma'am, this is the issue, the standards.
08:46 That's what we discussed with DILG,
08:49 you know, we're with them, and with BLGF.
08:51 So, the standards really need to be determined.
08:55 But for now, I hope it's not there.
08:58 But for now, suspended.
09:01 Yes.
09:02 ADG, again, it's really stated in the EO,
09:08 the president, that if it's national, it's prohibited.
09:11 But when it comes to the local,
09:15 we are urging the local government units to suspend.
09:20 That's what we're talking about.
09:22 And by the way, the groups of LGUs,
09:27 they immediately said they support the League of Municipalities,
09:32 LMP, Philippine Counsellors League, PCL,
09:36 Union of Local Authorities of the Philippines, ULAP,
09:39 the Vice Mayors League of the Philippines, VMLP.
09:42 All of those gave support to the EO that the president issued.
09:48 Yes, let's remove that.
09:50 We, in Bagong Pilipinas, we're called by Nina.
09:52 We're called by the LGUs.
09:56 Anyway, your organizations issued a statement of support.
10:00 So, let's remove that because it adds to the price.
10:03 That's right.
10:05 It will also go to the consumers.
10:07 That's it.
10:08 But some suspended.
10:10 But we receive complaints that
10:12 "Okay, it's suspended, but what about the apprehension?"
10:15 Or what else?
10:17 Because the IRR is not yet issued.
10:19 So, when the IRR is issued,
10:21 it will be stopped immediately.
10:23 Maybe.
10:24 And what the DILG told us is very clear.
10:29 That if someone complains that they were a victim of this,
10:33 they should tell them.
10:34 And the DILG can do that
10:36 because the DILG has a show-cause order authority.
10:40 So, Jean, someone also asked us here,
10:42 "Are the pass-through fees still included
10:45 that are imposed by subdivisions?"
10:47 Yes, right?
10:49 But you know, that's true.
10:51 Even in the provinces, sometimes,
10:53 for example, you'll pass through,
10:55 you'll pass through a place,
10:57 and suddenly, there's a cow or a cow,
10:59 even if you're not tracking.
11:00 That's it.
11:02 That's a piece of cake.
11:04 It's a way for them to earn then, maybe.
11:06 But what if...
11:08 But let's go back to what we said.
11:10 Because the track is what holds our food.
11:15 For example, you're an exporter,
11:18 your raw material.
11:19 So, it's really important that the track,
11:21 we really know whether it's raw material or consumer goods.
11:25 So, let's not do it
11:27 because we're also affected.
11:34 So, there's a question.
11:36 Use of division.
11:37 Unfortunately, this is really a local government.
11:41 But you know, sir,
11:42 during our conversations with the private sector,
11:45 not only would be the subdivisions,
11:47 but also the processing zones, export zones.
11:51 So, those are the things that we said,
11:54 "Let's do it slowly.
11:55 Let's fix this."
11:56 But the government is listening
11:59 to what the President really needs.
12:01 Reduce the logistics cost.
12:03 So, that's what the DPI is doing.
12:07 As in, my suggestion is,
12:09 the LGUs have an ordinance,
12:11 they have lawmaking powers.
12:13 So, they should ban in their own area,
12:15 the pass-through fees of subdivisions.
12:17 They should.
12:18 Right?
12:20 That's my suggestion.
12:21 Right?
12:23 Let's see who will listen to the suggestion.
12:26 Let's monitor.
12:27 You're the monitors of the NSC.
12:31 We'll do a witch hunt.
12:32 Oh my God.
12:34 Okay.
12:36 For our consumers,
12:38 how big will be the impact
12:40 of the suspension
12:42 of the pass-through fees on the price
12:44 of the goods,
12:46 when this is implemented?
12:48 Ma'am, it's hard for me to give numbers
12:50 at this point in time,
12:52 but I can share a story.
12:54 In one of our meetings,
12:56 Secretary Pascual's meeting with the manufacturers,
12:58 in a meeting,
13:00 in one meeting with the Secretary,
13:02 there were manufacturers
13:04 who said, immediately,
13:06 they felt it.
13:08 They felt it.
13:10 It's hard to quantify at this point in time,
13:12 but we believe
13:14 in what a big manufacturer said,
13:16 who said that
13:18 when the EO was announced,
13:20 immediately,
13:22 our locals,
13:24 I'd like to give credit,
13:26 I mean,
13:28 I'd like to give a shout-out to Manila.
13:30 Manila was the first one
13:32 who said that
13:34 they will remove
13:36 the pass-through fees.
13:38 Good job, Mayor Honey Lakmula.
13:40 You were the first one.
13:42 So, Asek,
13:44 do you think this will have an effect
13:46 on Christmas, especially on the purchase,
13:48 on the price of the goods.
13:50 The key with your questions,
13:52 we should get the amount.
13:54 Because, as they say,
13:56 logistics is only a certain
13:58 percentage of total cost.
14:00 But nonetheless, because of this impact,
14:02 we believe that
14:04 it won't
14:06 add up, right?
14:08 So, we always tell manufacturers,
14:10 don't raise
14:12 the price, because
14:14 the government is trying to
14:16 lower your operating costs.
14:18 And this EO announcement
14:20 is a proof
14:22 that the government is really trying
14:24 to lower
14:26 the logistics cost.
14:28 Ma'am, we have a question
14:30 from our media partner,
14:32 Patricia Lopez of IBC 13.
14:34 Christmas is coming.
14:36 Will the price increase?
14:40 We're different, holiday and food.
14:42 You can't escape.
14:44 Will the price increase
14:46 for holiday food
14:48 and beverage?
14:50 Is there an exact date
14:52 for the price increase?
14:54 And how much is the increase in price?
14:56 So,
14:58 you were the first one, ma'am, but we will
15:00 hold a meeting.
15:02 It's exclusive.
15:04 We have a meeting
15:06 with our Noche Buena manufacturers.
15:08 Because now, it's already
15:10 December, so it's really
15:12 time to buy
15:14 Noche Buena.
15:16 So, DTI always
15:18 releases
15:20 Noche Buena guides.
15:22 So, what we're saying is
15:24 we're talking to the manufacturers.
15:26 And one of the manufacturers that we talked to
15:28 is the meat processors.
15:30 The meat processors said
15:32 that
15:34 their production cost
15:36 was increased by 15% to
15:38 20%. But
15:40 because they want
15:42 the Filipinos to be
15:44 happy,
15:46 it's just low.
15:48 Because of inflation, as Secretary Pascole said,
15:50 the sum of
15:52 the products
15:54 is 0% to 4%.
15:56 So,
16:00 it's very minimal.
16:02 So, this is what we're saying
16:04 to DTI, to the buyers.
16:06 Let's start
16:08 with the ham.
16:10 Because we always buy ham.
16:12 It's delicious with pandesal and cheese
16:14 in the morning.
16:16 There are so many
16:18 kinds of ham.
16:20 There are so many kinds
16:22 of ham. Not all of them
16:24 increase based on
16:26 our monitoring.
16:28 And
16:30 that's what we saw.
16:32 We collected
16:34 the manufacturers'
16:36 SRP, and not all
16:38 of them increased.
16:40 So, what's our advice?
16:42 We should choose
16:44 what's right for
16:46 our budget and taste.
16:48 So, you'll see,
16:50 when DTI released
16:52 our Noche Blanca Guide, all of the
16:54 manufacturers are there.
16:56 Because what we want is
16:58 to learn how to choose and be
17:00 watched. So, when we go to
17:02 the grocery,
17:04 we know what to buy.
17:06 Because we already chose.
17:08 I can buy this, my pocket can do it,
17:10 my budget can do it. And I also
17:12 know this brand.
17:14 It's good to have options.
17:16 There's no choice.
17:18 You can buy the most expensive one.
17:20 If you're a social person,
17:22 you can buy the expensive one.
17:24 Miss Ninja, you have a budget.
17:26 You have a budget.
17:28 Miss Ninja, one more thing.
17:30 The ham has 1.5 kilos,
17:32 1 kilo, 500 grams,
17:34 800 grams. If you're alone,
17:36 you can buy 2. Don't buy
17:38 1 kilo of ham.
17:40 Let's go on a diet.
17:42 It's 2023. Let's start
17:44 with the New Year's Resolution.
17:46 But ma'am, before we let you go,
17:48 can you talk to us? Let's talk
17:50 quickly. You have a Cashless
17:52 Expo. I'm excited
17:54 because I'm also an entrepreneur
17:56 in small businesses. How can
17:58 we take advantage of this
18:00 Cashless Expo?
18:02 We were talking earlier,
18:04 we're from the press conference
18:06 of Cashless Expo.
18:08 This is the first time
18:10 with the private sector.
18:12 What organizes this is GO Digital
18:14 Philippines. But the partners
18:16 from the government would be the Department of Trade,
18:18 the Banco Central, and the
18:20 Department of Agriculture.
18:22 This is the
18:24 advocacy of the government
18:26 to promote digital payments
18:28 because we said that it's safe
18:30 to use
18:32 digital wallet.
18:34 You can use credit card,
18:36 debit card. This Cashless
18:38 Expo that will be held
18:40 from November 17 to 19
18:42 at the World Trade Center,
18:44 you can buy
18:46 our local
18:48 products.
18:50 We have 14 regions
18:52 in our Cashless
18:54 Expo. We also have
18:56 Agri because
18:58 we have cheap vegetables
19:00 from
19:02 Nueva Vizcaya.
19:04 By the way,
19:06 the BSP and the banks
19:08 are also there.
19:10 If you are
19:12 do not bring
19:14 cash.
19:16 It's prohibited.
19:18 But if you
19:20 don't have
19:22 Gcash,
19:24 for example,
19:26 don't worry. Go there
19:28 and we will help you.
19:30 The bank is there to help you
19:32 with these e-wallets.
19:34 You said that if you are a merchant,
19:36 you can only receive up to
19:38 50,000. So you can take
19:40 advantage of this. You can increase
19:42 your limit.
19:44 Thank you, Ma'am Nina.
19:46 What we always say
19:48 now is that we promote
19:50 P2M. This is
19:52 Peer to Merchant.
19:54 The other one is P2P.
19:56 We have a lot of P2P.
19:58 You and I all have Gcash.
20:00 But,
20:02 okay, Maya,
20:04 when it comes to businessmen,
20:06 we really want to encourage them
20:08 to use P2M.
20:10 So that your limit will not be small.
20:12 Sometimes,
20:14 you will see that you will buy a lot.
20:16 "Oh, I can't. I can only use
20:18 Gcash number."
20:20 Because it's P2P. But if you are a merchant,
20:22 P2M merchant.
20:24 I hope you can invite us.
20:26 We don't have time.
20:28 We have a long discussion.
20:30 Thank you very much for your time.
20:32 Assistant Secretary Mary Jean Pacheco,
20:34 Consumer Protection Group of the Department
20:36 of Trade and Industry.
20:38 Thank you.
20:40 (upbeat music)