Micro, small and medium enterprises (MSMEs) that are currently exporting or considering entering the global market can access an innovative platform to better understand and apply the export rules and procedures.
The Philippine Trade Training Center’s (PTTC) Global MSME Academy has unveiled its training platform https://e-learning.pttc.gov.ph/ offering six comprehensive courses designed to navigate the complexities of international trade.
The free courses on export procedures include rules of international trade, rules of origin for Filipino exporters, working with a pro forma invoice, reducing cross-border Inefficiencies, regulatory requirements to export food to the European Union (EU), and working with freight forwarders.
The rules of international trade course also provides an overview of the organizations that are involved in drafting, implementing and administering these rules.
“It presents the main purposes of international rules of trade, the benefits of adhering to them and the various institutions which enforce them, with a particular focus on their impact with regard to exporters. Finally, it examines the concept of trade facilitation and why it is important for SMEs who trade, or aim to trade, internationally,” the platform said.
The rules of origin module aims to provide MSMEs with enough knowledge and skills to enable them to determine the origin of goods for the purpose of availing their products of the tariff incentives under the Philippines’ preferential trade agreements, and thus to help grow their business.
This as the platform cited studies indicating that many exporters report being unfamiliar or unaware of the Philippines’ preferential trade agreements, or how to gain benefits from them.
“This is an incredible waste of economic potential. This is why it is crucial to understand rules of origin, which work as the governing provisions of preferential trade agreements to determine the economic “origin” of goods and qualify for tariff incentives,” it said.
The platform said a pro forma invoice is an important document that helps determine the processing of an export order by establishing the conditions of sale with the buyer.
“But how exactly should you go about creating this pro forma invoice? What format should you use, and what should your pro forma invoice aim to do exactly? What key elements, terms and conditions should it include? If it is the first export document you create, where does it fit into the whole export process?,” it said.
It also underscored the importance for Filipino traders of the module on reducing cross-border inefficiencies which can take many forms –from transport difficulties to border issues to simple corruption or incompetence– which make exporting more difficult, time-consuming and costly.
“As an exporter, you need to not only be aware of the various inefficiencies you will encounter, but also know how to overcome them or minimize the impact they will have on your operations,” it added.
MSMEs that wish to serve the EU market can avail of a module on the regulatory requirements to export food to the EU, a single market encompassing 27 countries with a total of 440 million consumers.
“…Despite having no internal borders, the EU still has external borders. As such, exporters of food and agri products targeting the EU need to be aware of the rules and regulations that apply to their products when sold in the EU’s common market,” the platform said.
Further, availing the working with freight forwarders course enables these firms to export more effectively.
“They can give you access to significant cost savings, especially when compared to arranging international freight transport requirements yourself. However, despite these advantages, you also need to understand, not just the commercial risks and regulatory risks involved in working with a freight forwarder, but also how to use freight forwarders to best effect to realize your export ambitions,” it added.
Meanwhile, the platform, accessible at PTTC’s e-learning site, is a collaborative development effort with the International Trade Centre.
