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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
When it comes to starting an export business as an MSME, the initial step generally starts at registering with the Client Profile Registration System (CPRS) of the Bureau of Customs. Successfully registered exporters are then required to fill out their Export Declarations through the E2M customs system. MSMEs which want or need assistance in processing their registration as exporters may seek aid from Negosyo Centers.
(Customs Memorandum Order Nos. 39-2008, 49-2010, 54-2010, and 7-2012; Sec. 4, Republic Act No. 10644)
The Philippine Export Development Plan for the years 2023 to 2028 has been approved via Memorandum Circular No. 23, series of 2023. Among its notable provisions are those on Micro, Small, and Medium Enterprises (MSMEs), which have been recognized for their “crucial role in promoting inclusive growth in the Philippines.”
Regarding the impact of MSMEs on the country’s export economy, the Memorandum stated that:
Philippine SMEs account for 25% of the country’s export revenues, which is higher than the equivalent of exports by SMEs in other ASEAN countries. It is also estimated that SMEs make up 60% of the country’s exporters, either as subcontractors of large firms or as suppliers of exporting companies. Some of the prominent commodity groups produced by MSMEs include garments, footwear, travel goods and handbags, wood manufactures, furniture and fixtures, and basketwork, wickerwork, and other articles of plaiting. By contributing to economic activities across the country, MSMEs have a vital role in improving the lives of Filipinos.
Hence, the Philippine Export Development Plan included the proposed initiative to set up and maintain government support to MSMEs, including “[a]ccess to financing, infrastructure, logistics, and certification requirements, providing fiscal, technical, technological, marketing, and promotional intervention.”
When it comes to starting an export business as an MSME, the initial step generally starts at registering with the Client Profile Registration System (CPRS) of the Bureau of Customs. Under this system, registrants shall apply for Electronic-to-Mobile customs registration (E2M Customs) by electronically submitting the information required for the database (Customs Memorandum Order or CMO No. 39-2008).
Those who successfully registered in the CPRS shall be issued the following electronic identification:
- Customs Client Number (CCN) and Certificate of Registration (CoR).
The registrant acquires a unique identifier in the CPRS for every role that they acquire during their transactions, and this is input and issued through a CoR; - Digital Signature.
E2M Customs shall issue a digital signature to the registrant who will be directly transacting with E2M Customs.
Successfully registered exporters are then required to fill out their Export Declarations through the E2M Customs system (CMO Nos. 49-2010, 54-2010, and 7-2012).
MSMEs which want or need assistance in processing their registration as exporters may seek aid from Negosyo Centers. Negosyo Centers are establishments set up under the Go Negosyo Act which promote the ease of doing business and access to services for MSMEs within its jurisdiction (Sec. 4, Republic Act No. 10644).
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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