Board of Investments (BOI) Consultation Meeting on Full Cumulation

img1

Board of Investments (BOI) Consultation Meeting on Full Cumulation Regarding Chapters 28-29, 31 and 32 covering Inorganic and Organic Chemicals, Fertilizers, Paints and Coatings –  BOI IPPS Conference Room. 

 

The objective of the meeting is to identify the sectors that can participate in the proposed Pilot Project on Full Cumulation. Aside from SPIK, Boysen (representative by Gretchen), representatives of Chemrez, PPIA and PCPI also attended the meeting.

 

The BOI has conducted a series of consultation meetings in May 2016 to update the industry on the status of the RCEP ROO negotiations and to discuss the key outstanding issues on ROO, including full cumulation. During the said consultation meetings, industry representatives were able to provide inputs, views, and initial recommendations on the proposed adoption of full cumulation under RCEP.

img1

Chemical Industry representatives from SPIK, PPIA and PCPI during the meeting with BOI on the proposed Pilot Project for the RCEP Participating Countries on Full Cumulation.

However, to date, the RCEP Participating Countries (RPCs) have yet to reach agreement on full cumulation. As an effort to find ways in moving forward on the most contentious issues in the ROO negotiations, the ASEAN RCEP Trade Negotiating Committee (TNC) has proposed to implement a three-year pilot project on full cumulation for selected sectors to assess its potential benefits and impact to RPCs. The ASEAN FTA Partners (AFP) welcomed the proposed compromise position of ASEAN on the cumulation provision. Nonetheless, they were of the view that the proposal lacks clarity particularly on the sectors that will be included in the pilot project.

Presentations on how full cumulation works and examples were shown about exporting countries of chemical products that can comply with the Rules of Origin (ROO) on Regional Value Content (RVC) 40in the ASEAN RCEP for zero tariff in FTA areas. A questionnaire was sent to the industry associations for dissemination to members to accomplish. However, only one SPIK member (aside from Boysen) accomplished the questionnaire which was transmitted to the BOI for processing. SPIK needs to have more feedback from our members regarding full cumulation so that a Position Paper can be prepared. It would be very beneficial for our members if the Chemical Industry will be included in the Pilot Project. The preparation of documents for full cumulation may seem tedious but the windfall from zero tariff can more than compensate for it.

GET CONNECTED


LIVE FEED


BLOG