IPP 2014-2016

The manufacture of chemicals is among the preferred activities in the IPP. This includes the production of petrochemicals and its derivatives, including, but are not limited to, the manufacture of derivatives from ethylene such as ethylene dichloride (EDC) and vinyl chloride monomer (VCM); olefins and polyolefins [Polyethylene (PE), Polypropylene (PP), Polystyrene (PS), and Polyvinyl Chloride (PVC)], derivatives from propylene, derivatives from mixed C4, and aromatic derivatives.

BPS Product Certification Scheme

The DTI’s Bureau of Product Standards lists certain petrochemicals products as among the products for mandatory certification under mechanical/building and construction materials.

The certification of petrochemicals products is guided by the Philippine Standard (PS) Quality and/or Safety Certification Mark Scheme.

Industry Development Program

The Technical Working Group (TWG) for the Chemicals Industry Cluster – which includes petrochemicals – serves as the coordinating mechanism through which industry concerns are addressed. The TWG is organized into four action tasks, namely:

• FOR TRADE & INVESTMENT MATTERS – covering issues regarding industry clustering, tariff concerns, smuggling, and trade and investment promotions;
• FOR TALENT DEVELOPMENT & INNOVATION – covering issues on skills development and introduction of innovation and process;
• FOR EASE OF DOING BUSINESS – covering issues on assistance that the government could provide the industry as regards streamlining the permit and documentary requirements which overlaps among various agencies; and
• FOR ENVIRONMENTAL PRACTICES – covering issues on plastic banning, life cycle assessment (LCA) and the use of the same as basis of scientific and technological studies in crafting laws that would affect the industries.

Among the TWGs activities are the following:

• Ease of Doing Business. With the release by the DENR of EMB MC 2014-003 (or the Supplemental Guidelines for DENR AO 2007-23, prescribing additional requirements for the issuance of the priority chemical list (PCL)), the TWG was able to obtain a PCL exemption for the industry. In addition, a series of workshops for Ease of Doing Business from January to February 2015 was conducted to come up with a roadmap to streamline the processes of issuance of permits and licenses by various regulatory agencies for the chemicals industry.
• Human Resource Development. TESDA and SPIK conducted a workshop in consultation with the various chemicals industry associations in October 2014 to come up with Training Regulations for a) plant process operators and b) QA/QC laboratory technicians. These training regulations are currently being reviewed by TESDA. After finalizing the training regulations, TESDA and SPIK shall proceed to work on the Assessment Tools for the skills identified.
• Life Cycle Analysis (LCA) for Plastic Packaging. In view of the increasing number of LGU’s banning the use of plastics, the conduct of LCA on plastics has become a priority. This is also pursuant to R.A. 9003’s mandate for DTI to come up with a non-environmentally acceptable products (NEAP) list. In December 2014, the initial results of the LCA Study were presented by the Chairman of the Plastics Industry TWG. The LCA Consultant from DLSU presented to the group his simulation results.
• JGSOC Naphtha Cracker. The JG Summit Olefins Corporation (JGSOC) confirmed that the first Naphtha Cracker Plant in the Philippines started its commercial operations on November 1, 2014. Currently, the downstream polymer plants of JG Summit Petrochemical Corporation (JGSPC) are already using polymer-grade ethylene and propylene manufactured from the JGSOC Naphtha Cracker Plant to produce polyethylene (PE) and polypropylene (PP) resins, for sale to both domestic and export markets. JGSOC also started to export pyrolysis gasoline (pygas).
• Greening the Industry Roadmaps. In the 2nd Scoping Mission for Greening the Industry Roadmaps project conducted by GIZ, the Plastics Industry was identified as one of the priority sectors. Following this, BOI and PPIA collaborated in conducting a workshop on ISO 14000-Environmental Management and ISO 50001-Energy Management System Standard for PPIA-member companies in February 2015.
• Reverse Trade Agreement. Pacific Paint (Boysen) Philippines, Inc. has entered into an MOU with SHDA on September 26, 2014. BOYSEN would be supplying SHDA with white latex paint for their housing projects. There have been similar negotiations between SHDA and two (2) other paint companies (Davies Paints Philippines, Inc. and Campbridge Paint, Inc.).
• Product Standards for Paints. In 2014, the BPS-TC on Paints re-convened and agreed that the priority products would include Semi-gloss Latex, Gloss Enamel, and Alkyd Metal Primer Products. The product standard for Semi-gloss latex topcoat for white and light tints was finalized.
• Comprehensive Tariff Review. A Comprehensive Tariff Review (Line-by-line tariff review) for the chemicals industry was conducted, in preparation for ongoing and future FTA negotiations. The Chapters reviewed include Chapters 28, 29, 31, 32, 33, 34, 35, 36, 37, and 38. Chapter 39 remains under review, with the PPIA and APMP finalizing their position papers.
• ASEAN-Japan Chemical Safety Database (AJCSD) Seminar. The AJCSD’s objective is to come up with a database of all regulated chemicals in ASEAN and Japan, as well as share chemical regulatory information among ASEAN countries. A mini-seminar on the AJCSD Project was facilitated by experts from the Japan Ministry of Economy, Trade, and Industry (METI) and the National Institute of Technology and Evaluation (NITE). The TWG, regulatory government agencies, and the private sector have also agreed to establish a national database containing the regulations for Philippine chemical products. BOI is currently coordinating with PEZA to assess the feasibility of using their Chemical Importation Tool (CIT) database facility for this purpose.

Association of Petrochemical Manufacturers of the Philippines (APMP)

Board of Investments (BOI)