The Department of Trade and Industry (DTI) will hold a public hearing to streamline the criteria and procedure in the listing and removal of shelf keeping units (SKU) on basic goods and prime commodities (BNPCs) in the Suggested Retail Price (SRP) Bulletin under its jurisdiction.
This developed as the DTI, which issues the Suggested Retail Price (SRP) Bulletin containing the specific SKUs of BNPCs with price adjustment, came up with a draft Department Administrative Order (AO) that seeks to establish “Guidelines for Suggested Retail Price Bulletin Listing and Delisting of basic necessities and Prime Commodities under DTI Jurisdiction” for systematic evaluation, processing, and action on recommendations. The virtual public hearing is scheduled next week, June 14 and 15.
The draft AO seeks to establish certain criteria as basis in the delisting and or delisting process to ensure adequate supply and reasonableness of prices of shelf keeping units (SKUs) or products listed as part of BNPCS. The DTI regularly evaluates and publishes the SRP of BNPCs to ensure reasonableness of prices.
The draft identifies the BNPCs under the jurisdiction of the DTI based on Republic Act 7581 as amended. The basic commodities include bread, canned fish and other marine products, potable water in bottles and containers, processed milk, locally manufactured instant noodles, coffee, salt, laundry soap, detergents, and candles.
The prime commodities are flour, processed and canned pork, processed and canned beef, vinegar, fish sauce (Patis), soy sauce, toilet soap, paper, school supplies, cement, clinker, G.I. sheets, hollow blocks, construction nails, batteries, electrical supplies, light bulbs, and steel wires.
There are 212 SKUs or specific items under the covered BNPCs. To list or delist an SKU, the draft DAO requires the petitioner, either the DTI, manufacturer, or consumer, to submit documents to the DTI-Consumer Protection and Advocacy Bureau (CPAB).
If the request is DTI initiated, the draft DAO stated that agency should submit a memorandum for CPAB from the Fair Trade Enforcement Bureau/Regional Office (FTEB/RO) with the recommendation. It should also submit a copy of the market study supporting the request for listing of the SKU in the DTI SRP Bulletin with monitored prices for the immediate preceding three-month period in their area of jurisdiction.
The DTI should also submit other documents that the CPAB may deem necessary, such as sales report, inventory level for listing and study on socio-economic class and market study for delisting of SKUs.
If the request is manufacturer initiated, the manufacturer must submit a letter request signed by the company president or representative with supporting documents such as those containing details of the frequency of the replenishment and stock inventory of the supplies, sales report, study on socio-economic class.
The manufacturer must also submit proof of authority to represent the manufacturer as evidenced by any relevant document.
In the listing of SKUS, the draft DAO stated the CPAB shall consider four factors in the preceding three –month period -- salability/viability of the product, affordability of the product, availability/accessibility of the product, and sustainability of the supply and demand.
On requests for delisting of SKUs, the draft DAO said that CPAB will consider in their evaluation – consumer demand; product salability; affordability; non-availability of SKUs in the retail market as the stocks have been phased out or depleted; frequency of the replenishment and stock inventory of finished goods, raw materials and supplies; and continued availability of the BNPC, in the retail shelves as showed in the latest Price Monitoring Report.