The package was presented by Trade and Industry Secretary Manuel Roxas II and GTEB executive director Felicitas Agoncillo-Reyes last week.
The package, which was designed in consultation with industry leaders, is intended to boost the industry’s competitiveness upon the abolition of the US export quota system. The US is the country’s largest buyer of garments.
The salient features of the package include the following: lowering of GTEB fees which would result in a P100-million savings for GTEB eyes... From Page 23
the industry; a P300-million development program for the garments industry; incentive-based quota system; and relaxed rules.
"One important component of the package is the lowering of the cost of doing business. This would result in the lowering of GTEB quota fees by 30 percent," Reyes said.
Under the new few structure, convertible quotas for big size garments will be reduced from P50 to P35 per dozen, while for small sizes, the fee will be reduced from P30 to P21 per dozen.
The reduction is expected to result in total savings for the industry of P100 million for the next three years.
The P300-million development program will be invested in programs and projects designed to improve productivity through investments in technology and skills, upgrading, trade facilitation to address speed-to-market concerns, market promotions, and product development and access to financing.
The GTEB will also use 30 percent of the free quota as incentives for productivity and growth enhancement endeavors.
These include training and skills upgrading, investments in productivity and technology upgrading, ISO certificate and social projects.