MAGNA CARTA FOR MICRO, SMAL AND c.

business activity must be within the

MEDIUM ENTERPRISES major sectors of the economy.
-seek to promote, support and encourage, agri-business refers to any business
the growth and development of micro, activity involving the manufacturing,
small and medium enterprises in all processing and/or production of
productive sectors of the economy by: agricultural produce
1. facilitating access to sources of funds, & d. must not be a branch, subsidiary or
2. doing away with stringent collateral division of a large-scale enterprise, nor
requirements of registration. may its policies be determined by a large-
> Covered enterprises: scale enterprise or by persons who are not
- any business activity or enterprise owners or employees of the enterprise.
engaged in industry, agribusiness and/or > Eligible MSMEs shall be entitled to a
services, whether single proprietorship, share of at least 10% of total procurement
cooperative or cooperation. value of goods and services supplied to the
- whose total assets, inclusive of those government, its bureau, office and
arising from loans, but exclusive of the land agencies annually.
on which the particular business entitys * DBM shall monitor compliance of
office, plant and equipment are situated, government agencies.
must have value falling under the following * Small business guarantee and finance
categories: corporation, administratively attached to
Micro: not less than P3M the DTI, shall be under the policy and
Small: more than P3M to P15M program supervision of the MSMED
Medium: more than P15M to P100M Council, and shall be charged with the
> The president shall approve a 6-year primary responsibility of implementing
MSME development plan prepared by the comprehensive policies and programs to
DTI which shall form part of the Medium assist MSMEs in al areas.
Term Philippine Development Plan, and > Venture Capital and Micro Finance Trust
shall include a component on a micro Fund shall be used mainly for venture
credit financing scheme. It shall be capital finance especially in technology-
formulated in consultation with the private oriented industries. It shall be used to
sector, validated and updated semestrally. provide collateral-free fixed and working
> MSMED Council is the primary agency capital loans to micro and small enterprises
responsible for the promotion, growth and run by those emerging out of poverty.
development of MSMEs. It may review and > Mandatory allocation of credit resources
adjust the definition of MSME upon > Lending institutions not qualified to
recommendation of sectoral orgs acquire or hold lands of the public domain
concerned, taking into account economic in the Philippines shall be permitted to bid
indicators and may use other variables. and take part in shales of mortgaged real
> Eligibility for Government Assistance property in case of judicial or extra-judicial
a. Duly registered with appropriate foreclosure, as well as avail of receivership,
agencies. enforcement and other proceedings, solely
-micro enterprises: registration with upon default of a borrower, and for a
municipal or city treasurer shall be period not exceeding 5 years from actual
sufficient compliance. possession.
b. 100% owned and capitalized by Filipinos Provided (a) in no event shall title to
(single proprietorship); at least 60% the property be transferred to such lending
(juridical entity). institution, (b) if the lending institution is
the winning bidder it may transfer its rights EMBROIDERY LAW
to a qualified Philippine national within the - Manufacturers may perform a portion of
5-year period. the manufacturing process within the
BARANGAY MICRO-BUSINESS premises while other processes to
ENTERPRISE ACT OF 2002 complete his finished products may be
- hasten countrys economic development done through subcontractors and/or
by: homeworkers.
(a) encouraging formation and growth of - Required only to ensure that the goods
BMSEs as the seedbeds of Filipino released from its bonded manufacturing
entrepreneurial talents warehouse had been previously stamped
(b) integrating those in the informal sector or cut in accordance with the pattern to be
with the mainstream economy. manufactured.
BMBE is a business entity or enterprise: COUNTERVAILING DUTIES ON IMPORTED
- engaged in production, processing or SUBSIDIZED PRODUCTS
manufacturing of products or Whenever any product, commodity, or
commodities, including agro-processing, article of commerce:
trading and services a. is granted directly or indirectly by the
- with total assets, including those arising government of the foreign country of
from loans, but exclusive of land on which origin any kind of subsidy, and
the office, plant and equipment are b. its importation has caused or threatens
situated, of not more than P3M to cause material injury to domestic
* Services shall not include those rendered industry, or has materially retarded the
in the exercise of ones profession growth or prevents the establishment of a
pursuant to a license. domestic industry
Registration: There shall be:
Each city or municipal treasurer shall - a countervailing duty equal to the
register and issue them certificates of ascertained amount of subsidy
authority free of charge and for two - which shall be in addition to any ordinary
renewable years to enable them to avail of duties, taxes and charges imposed by law
the benefits under the act. on such imported product, commodity or
Benefits: article
1. exempt from income tax ANTI-DUMPING ACT OF 1999
2. minimal bureaucratic requirements and Whenever any product, commodity or
reasonable fees and charges article of commerce is imported into the
3. LGUs encouraged to reduce the amount Philippines:
of local taxes, fees and charges or exempt a. at an export price less than its normal
BMBEs from local taxes, fees and charges. value in the ordinary course of trade for
4. Exempted from minimum wage law (but the like product, commodity, or article
still entitled to other benefits) destined for consumption in the exporting
5. Opening of GIFs of special credit window country, and
for BMBEs b. is causing or is threatening to cause
6. Creation of P300M BMBE Development material injury to a domestic industry, or
fund from PAGCOR, to be availed of by materially retarding the establishment of a
designated government agencies domestic industry producing the like
7. DTI linking or matching-up BMBEs with product.
small, medium, and large enterprises, with There shall be imposed:
incentives.
- an anti-dumping duty equal to the margin 2. for agricultural products where tariff
of dumping on such product, commodity, increase is not sufficient, quantitative
or articles. restriction may be set.
- which is in addition of ordinary duties, (duration of provisional measure shall be
taxes, and charges imposed by law on such counted as part of initial period)
imported product, commodity, or articles. Determination of Serious Injury
Nevertheless: anti-dumping duty may be - rate and amount of the increase in
less than the margin if such lesser duty will imports of the products concerned in
be adequate to remove injury to the absolute and relative terms
domestic injury. - share of domestic market taken by the
SAFEGUARD MEASURES ACT increased imports
- applies to products being imported into - changes in level of sales, production
the country irrespective of source productivity, capacity utilization profits
- DTI secretary (non-agricultural) and DA and losses, and employment.
Secretary (agricultural) determines shall
apply the general safeguard measures
upon positive final determination by tariff
commission that: (1) a product is being
imported in increased quantities, whether
absolute or relative to domestic
production, (2) as to a substantial cause of
serious injury or threat thereof to the
domestic industry.
- who may initiate action: any person,
natural or juridical belonging to or
representing a domestic industry.
- secretary may also initiate upon request
of the president; resolution of the house or
senate committee on agriculture, house or
senate committee on trade and
commerce; or motu proprio.
- Preliminary determination made by the
secretary within 30 days from filing of
petition or motu proprio initiation of
action. A positive preliminary
determination shall be transmitted to the
Tariff Commission for immediate formal
investigation.
- Tariff Commission shall complete
investigation and submit report to the
secretary within 120 days from receipt of
referral. If urgent, 60 days.
Provisional measures:
1. Tariff increase paid through a cash bond
(specific, ad valorem, or both)