DTI, Korean tech institute partner for digital platform development

The Department of Trade and Industry (DTI) and the Korea Institute for Advancement of Technology (KIAT)  are preparing to develop and implement an origin management system project, which aims to optimize the Philippine free trade agreement (FTA) with South Korea and its other preferential trade arrangements.

The "Origin Management System for Promoting FTA" project officially commenced through the signing of the Record of Discussions (ROD) last Nov. 29 at the DTI International Building.

“The best time to prepare for an FTA’s entry into force is before it is even implemented or while it is being negotiated,” DTI Undersecretary for Industry Development Ceferino S. Rodolfo said during the signing event.

He noted that the Philippines-Korea FTA was intensively negotiated with key stakeholders, including business associations, local government units, and workers' groups, among others, to ensure the potential benefits are realized in the first year of its implementation.

He added that the DTI aims to replicate the Philippines-European Free Trade Association (EFTA) FTA's successful implementation, which reversed the country's trade deficit in its first year.

“This is the first time we have undertaken such a project – mainstreaming the use of technology and digital services to make exporting and availment of FTAs more accessible to Philippine exporters. We are grateful to the Korean government for funding this Project,” Rodolfo added. 

This is also the first project embarked on by the KIAT outside of Korea and is a milestone achievement for a stronger Philippines-Korea partnership, according to the DTI.

Aside from increasing the utilization of existing Philippine FTAs and preferential trade arrangements, the project also aims to enhance the international competitiveness of Philippine micro, small, and medium enterprises (MSMEs), and reduce the time and costs of Philippine manufacturers and traders to comply with rules of origin requirements of FTAs and Generalized System of Preferences (GSPs). 

Key features of the project include the development of an Origin Management System which will enable exporters to determine whether its export product qualifies under the respective rules of origin (ROO) requirements of FTAs/GSPs by inputting relevant information in the platform; and an artificial intelligence (AI)-enabled HS classification tool that will enable exporters to determine the appropriate HS code/s for their product/s.  

The project will run for 30 months, from July 2023 until December 2025, which will be led by the Korea Trade Network (KTNET), Korean government’s designated trade automation business service provider, serving as the implementing consortium for this project; and the DTI- Export Marketing Bureau as the implementing lead for the Philippines side. 

Further details of the project will be presented during the 2023 National Export Congress on Thursday, Dec. 7 at the Sheraton Manila Hotel, Pasay City.