With its strategic location, the Philippines is a natural gateway to the huge Asian market and its ASEAN affiliation provides opportunities for access to the ASEAN Free Trade Area. The Philippines is undergoing strong economic recovery due to the strong reforms instituted. Financial indicators have improved rapidly, bringing down interest rates and creating the preconditions for faster development.

The Philippines has three branches of government, i.e., Executive, Legislative and Judiciary. Each branch is co-equal and the Legislative and Judiciary are mandated to scrutinize economic policies, among others, which makes doing business in the Philippines complicated. Moreover, the country’s effort to adapt to globalization through continuous review of its policies has resulted in an increasing number of and ever-changing regulatory requirements.

Customs Compliance & Advisory

BCIT’s strength lies in its team of customs and trade specialists with vast experience dealing with Philippine customs and tariff matters. Tariff and related matters are handled by an inter-agency committee comprising of different government agencies, with which BCIT Philippine team has established long standing relationships.

Specifically, BCIT assists clients in:

• Reviewing transaction, documentation, supply chain and financial flows, identifying the cost-savings opportunities as well as assessing the risks;

• Providing up-to-date information about the conditions and criteria for granting privileges, in order to identify cost-saving opportunities as well as minimize risks;

• Determining the tariff classification and benefit from a possible lower dutiable value by identifying the correct and appropriate tariff classification;

• Determining the declared value of imports for customs purposes. This includes advice relating to dutiable elements not included in the invoice price as well as possible exclusion of certain costs, partially or wholly, from the transaction value resulting in lower customs value and thus, reduced payable duty/tax;

• Reviewing importations to ensure that information provided to Philippine Customs is accurate and complies with the relevant rules and regulations;

• Reviewing goods and document flows, correspondences, internal controls and systems, contracts and agreements;

• Reviewing and updating transfer pricing policies from the perspective of indirect tax planning and assisting in risk analysis;

• Developing a reliable and practical internal system to ensure customs compliance;

• Training relevant personnel to ensure that they understand the customs issues and know how to manage them effectively; and

• Identifying the best approach to take when engaging Philippine Customs on specific customs matters, ensuring that the applicable evidence, documentation and/or justification is put forward to obtain the correct outcome.

Strategic Business Advisory

Bryan Cave International Trade works with clients to develop the most optimal solution for their investment and business strategies in the Philippines. We assist clients on:

• Corporate structuring options and related considerations including labor, tax, and incentive programs for the establishment of an entity in the Philippines;

• Structuring their operations to capitalize on certain special schemes, such as Board of Investment (“BOI”) incentive programs, bonded warehouse schemes, special economic zones, freeport zones and export processing zones, as well as assisting clients to obtain the official approvals on participation in the schemes; and

• Reviewing business compliance with the reporting requirements of the agencies implementing the special incentive schemes to avoid penalties and continue benefiting from the incentives available to the clients.

BCIT also prepares customized reports for clients, monitoring and analyzing the evolving regulatory and administrative environment in the Philippines, and in the Asian region, affecting customs, trade and investment. BCIT advises clients on the movements in policy directions, regulatory changes and competitive developments that would affect their business and operations, including cost of doing business.  BCIT offers insights into the latest policy thinking, as well as government decisions and actions with regard to specific issues or sectors. Such insights and information assist client in their strategic planning, and, if necessary, enable them to engage the government on changes in the policies/regulations that would affect their business.

WTO & FTA Advisory

Many of Bryan Cave International Trade’s consultants are former trade and investment officials with experience negotiating free trade agreements (“FTAs”) and at the World Trade Organization (“WTO”). We assist clients in:

• Monitoring the status and direction of the Philippines’ on-going FTA discussions and analyzing the implications of the on-going discussion in relation to a client’s business and operations;

• Understanding the interpretation and application of the FTAs that the Philippines has entered into;

• Reviewing government programs relating to the industrial and services sectors for compliance with WTO rules and FTA obligations;

• Avoiding potential WTO-related problems in transactions (e.g., addressing discriminatory regulations and barriers in the services and other sectors), as well as on leveraging on WTO rules to obtain fair treatment and/or to increase market access; and

• Devising investment schemes, incentive programs and other tax and regulatory structures that are compliant with WTO rules and FTA requirements for presentation to the government.