The Philippines Trade Facilitation Challenges for Women Traders and Customs Brokers Survey findings and recommendations © 2021 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclu- sions set forth. 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COVER PHOTOS: •   Manila, Philippines © Marfil Graganza Aquino/Pexels •   Woman in craft market © Pink Mean/Pexels •   Meeting of the Philippine Chamber of Commerce and Industry © Deborah Campos/World Bank Acknowledgements Abstract The WBG team would like to recognize the government of the This report summarizes the main challenges that cross- Philippines for its invaluable contribution to the project, includ- border traders and customs brokers at the firm level are facing ing through the provision of trader and customs brokers related to import and export processes and procedures in data. The team would also like to express gratitude to all the Philippines. This report also includes recommendations to survey participants that provided information to support the address the challenges identified, primarily within the scope study. of the World Trade Organization’s Trade Facilitation Agreement (WTO TFA). The work related to the survey and this report was led by Heidi Stensland Warren, Aileen Yang, Roberto Martin Nolan The work related to this report was undertaken as part of a Galang, Zachary Ochola Ochieng, and Mariyam Raziyeva from larger package of technical trade facilitation support to the the World Bank Group (WBG). The team benefited from guid- government of the Philippines. The overall objective of this ance and useful comments from colleagues across the World work was to identify specific barriers, broken down by gender, Bank and the International Finance Corporation. Rollout of that men and women-led companies (also referred to as the survey and analysis was conducted by A2F Consulting, “traders” or “trade firms”) and customs brokers face in the supported by REECS. cross-border trade of merchandise goods.1 Where possible, the work highlighted the experiences of ethnic minorities and people with disabilities. This report provides the foundational Financial support for this work was provided by the UK baseline for the ongoing reform program of the Bureau of Government through the Trade Facilitation Program in Middle Customs and the newly established Philippine Trade Facilitation Income Countries. Committee, and is a companion piece to the other research papers that measure specific trading outcomes and regulations by bringing in the voice of the private sector to the assessment of the trade context of the country. The collection of data for this report was done via phone survey interviews across the Philippines. The work built upon similar surveys in other countries, and the methodology was developed by the World Bank Group.2 The data collected in connection with the surveys and information from the analysis contribute to the field of literature on the trade facilitation and gender. This data adds to the increasingly important dialogue on how to mainstream gender and inclusivity issues into trade policy, and it may be useful to the government, development organizations and others in ensuring that trade facilitation interventions can benefit all traders equally. 1 The survey and this report is focused on trade of merchandise goods and does not cover trade in services. This is because the WTO TFA — the primary scope of the study — pertains to the movement, release, and clearance of goods and not services. 2 See reports from similar studies undertaken in the Pacific Islands and Timor-Leste here: https://www.worldbank.org/en/programs/trade-facilitation- support-program/publication/trade-facilitation-challenges-for-women-traders- in-the-pacific-region. 1 The Philippines Number of active cross-border trade firms The Environment for (2020–2021): 24,6843 Working Women in the Philippines Number of active customs brokers The Philippines scored 78.8 out of 100 — slightly higher (2020–2021): 1,8694 than the regional average — in the 2021 Women, Business and the Law index, which is structured around the Capital city: Manila lifecycle of a working woman. According to the World Development Indicators Database, only 49 percent of Region: East Asia and Pacific women aged 15-64 are in the labor force compared to 75 Income category: Lower-middle income5 percent of men in the same age group. A 2017 study by the Philippine Institute for Development Studies found that Population (2020): 109,581,0856 women are more disadvantaged in terms of vulnerable GDP (current US$ thousands, 2020): 361,489,354.357 employment (i.e., self-employment and family work) that Est. GNI per capita woman/man (2019 based on 2017 PPP$): is often unpaid or underpaid. The OECD, however, finds 7,843/11,6948 that the Philippines has a strong policy foundation for women’s entrepreneurship development — especially for Labor force participation rate (% of total pop. ages 15–64, women’s micro, small, and medium-sized enterprises — 2019) women/men: 49/759 such as through the Magna Carta for Women (which covers Merchandise exports and imports (% of GDP, 2020): 42.7 the “right to livelihood, credit, capital and technology” in pursuit of business opportunities) and the “Go Negosyo Top exports (2020): Electronic products; other manufac- Act” (which calls for the establishment of business support tured goods; machinery and transport equipment; other centers to encourage women entrepreneurship and to mineral products; ignition wiring set and other wiring sets respond to their needs). used in vehicles, aircrafts and ships (only of electrical wiring harness for motor vehicles)10 Top imports by value (2020): Electronic products; mineral fuels, lubricants and related materials; transport equipment; industrial machinery and equipment; iron and steel11 WTO Trade Facilitation Agreement ratification date: October 27, 2016 3 This number is based on the list of firms provided by Bureau of Customs and included firms that were not be eligible for the survey. 4 This number is based on the list of customs brokers provided by Bureau of Customs and included duplicates. 5 GNI per capita between $1,046 to $4,095. Data source: The World Bank. 2021. Data: World Bank Country and Lending Groups. Accessed 2021. https:// datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank- country-and-lending-groups. 6 The World Bank. 2021. World Development Indicators Database. Accessed 2021. https://databank.worldbank.org/source/world-development-indicators. 7 Ibid. 8 United Nations Development Programme. 2021. Human Development Data Center. Accessed 2021. http://hdr.undp.org/en/data. 9 World Development Indicators Database. 10 Philippine Statistics Authority. 2021. Highlights of the 2020 Annual Final International Merchandise Trade Statistics of the Philippines. Accessed 2021. https://psa.gov.ph/statistics/annual-foreign-trade. 11 Ibid. 2 Key recommendations based on survey findings Initial findings demonstrate an opportunity to improve the design of trade facilitation interventions to better address traders’ needs (women in particular), e.g., by: Fully implement the WTO TFA Enhance government by streamlining processes and consultations with the procedures private sector Improve official gender- Offer better guidance disaggregated collection and appropriate explanation of trader data on penalties Promote the role of the NTFC and gender sensitize Explore the reasons for its action plan detention of goods Promote the use of the Promote pre-arrival Philippine National Trade processing of goods Repository Ensure official regulations and procedures across Make formal grievance border agencies are easy procedures more transparent to find and understand and effective Offer targeted information sessions, workshops, and Promote the role of women training session for women in trade associations traders Re-assess and better advertise port operating hours 3 City of Makati, Philippines © Dominic Chavez/World Bank 4 Contents Executive Summary 8 1 Summary of Sample and Methodology 12 2 Key Survey Findings 16 Respondent Demographics and Business Profile 17 Profile of Traders and Customs Brokers Surveyed 17 Import and Export Activity 21 Impact of COVID-19 24 Main Challenges to Expanding Business 27 Trade Facilitation-Specific and Other Findings 29 Moving Goods and Use of Intermediaries 29 Port Opening Hours 31 Access to and Understanding of Official Border Regulations and Procedures 33 The National Trade Facilitation Committee (NTFC) and Membership in Trade/Industry Associations 35 Consistency in Implementation of Border Procedures 37 Consultative Mechanisms 37 Electronic Import/Export Declarations 39 Pre-Arrival Processing of Goods 40 Electronic Payments and Other Payments 41 Detention of Goods 44 Official Grievance Procedures 46 Safety and Security at the Border 47 3 Recommendations Based on Survey Results 50 4 Remaining Analytical Gaps 54 Annex 1  Description of Sample and Methodology 56 Annex 2  Port Profiles 60 Bibliography 64 5 List of Figures Figure 1. Proportion of Respondents that Self—Identify as Having Disabilities by Survey Population Group 17 Figure 2. Proportion of Respondents that Self—Identify as Having Disabilities by Gender 17 Figure 3. Proportion of Respondents Self-Identifying as Belonging to an Ethnic Minority Group by Survey Population Group 17 Figure 4. Proportion of Respondents Self-Identifying as Belonging to an Ethnic Minority Group by Gender 18 Figure 5. Proportion of Firm Sizes Led by Gender of Traders 18 Figure 6. Proportion of Firms by Size and Gender of Customs Brokers 18 Figure 7. Proportion of Firm Sizes Led by Traders that Self-Identify as Having Disabilities 18 Figure 8. Proportion of Firm Sizes Led by Respondents that Self-Identify as Belonging to Ethnic Minority Groups 19 Figure 9. Age of Trader Respondents by Gender 19 Figure 10. Number of Years the Respondents have been Engaged in Cross-Border Trade 19 Figure 11. Proportion of Traders with Caretaking Responsibilities that Impact Ability to Trade Across Borders 20 Figure 12. Sources Used to Finance Trading Business by Gender 20 Figure 13. Sources Used to Finance Trading Business by Firm Size 21 Figure 14. Proportion of Importers/Exporters by Gender 21 Figure 15. Export Destination by Gender (Trade Firms) 21 Figure 16. Import Origin by Gender (Trade Firms) 22 Figure 17. Export Destination by Gender (Customs Brokers) 22 Figure 18. Import Origin by Gender (Customs Brokers) 22 Figure 19. Main Commodities Exported 23 Figure 20. Main Commodities Imported 23 Figure 21. Frequency of Export/Import by Gender 24 Figure 22. Frequency of Export/Import by Firm Size 24 Figure 23. COVID-19 Pandemic has Impacted Respondents’ Ability to Undertake Cross-Border Trade 24 Figure 24. Effects of the Pandemic on Cross-Border Trade/Customs Brokers Activities 25 Figure 25. Hours Spent Complying with Customs Inspection has Changed 25 Figure 26. Hours Spent Complying with Agricultural Quarantine has Changed 25 Figure 27. Hours Spent on Payment of Official Fees for Import/Export has Changed 26 Figure 28. Hours Spent Complying with Product Standards has Changed 26 Figure 29. Perception of Information Received from the Government on Changes to Border Processes and Procedures Caused by the Pandemic 27 Figure 30. Main Challenges Traders Face in Further Expanding Their Businesses (Based on Ranking of Top 3 Challenges) 28 Figure 31. Main Challenges Customs Brokers Face in Further Expanding Their Businesses 29 Figure 32. Proportion of Trade Firms that Use Customs Brokers 29 Figure 33. Reasons for Hiring Customs Brokers 30 Figure 34. Reasons for Not Using Customs Brokers 30 Figure 35. Perception of Port Operating Hours 31 Figure 36. Restrictiveness of Opening Hours by Port (Traders) 32 Figure 37. Restrictiveness of Opening Hours by Port (Customs Brokers) 32 Figure 38. Proportion of Traders and Customs Brokers That Face Difficulties When Looking for Information on Official Regulations and Procedures Related to Border Processes and Procedures 33 Figure 39. Types of Difficulties Faced 33 Figure 40. Proportion of Respondents Belonging to an Ethnic Minority Group that have Difficulties looking for Information on Official Trade Regulations 34 6 Figure 41. Sources for Finding Information on Official Regulations and Procedures 34 Figure 42. Proportion of Respondents that Perceive Regulations to be Easy to Understand 35 Figure 43. Proportion of Traders that are Aware of the NTFC’S Existence 35 Figure 44. Proportion of Respondents that are Members of Business or Trade/Industry Association 35 Figure 45. Reasons for Not Joining an Association 36 Figure 46. Traders with Disabilities that are Members of Business Trade/Industry Associations 36 Figure 47. Respondents that Belong to Ethnic Minority Groups that are Members of Business Trade/Industry Associations 36 Figure 48. Perception that Border Process are Consistently Implemented by Border Officials 37 Figure 49. Respondents are Regularly Consulted on Changes to Trade Process/Procedure 37 Figure 50. Sources of Consultations on Changes to Official Trade Processes 38 Figure 51. Perception that Feedback is Taken into Consideration by Gender 38 Figure 52. Perception that All Required Forms and Documents Related to Import/Export Activities can be Submitted Electronically to All Border Agencies 39 Figure 53. Perception of How Forms and document Must be Submitted to Customs 39 Figure 54. Perception of How Forms and Document Must be Submitted to Other Border Agencies 39 Figure 55. Proportion of Respondents that Submit for Pre-Arrival Processing of Shipments Prior to Arrival at Port 40 Figure 56. Reasons for Not Submitting for Pre-Arrival Processing 40 Figure 57. Pre-Arrival Processing Frequency 41 Figure 58. Perception that Official Fees Associated with Cross-Border Trade can be Paid Electronically in One Single Payment 41 Figure 59. Methods of Paying Official Fees and Charges Related to Border Processes and Procedures by Gender 42 Figure 60. Proportion of Respondents that Have Paid Speed Money to Government Officials in the Past Year to Facilitate Processing of Goods 42 Figure 61. Frequency of Making Speed Money Payments to Government Officials in the Past Year 42 Figure 62. Estimated Cost of Payments of Unofficial Fees to Government Officials as a Percentage of the Value of the Goods 43 Figure 63. Proportion of Respondents that Paid Speed Money to Private Entities in the Past Year to Facilitate Processing of Goods 43 Figure 64. Proportion of Respondents that have had Detention of Goods Without Being Promptly Informed 44 Figure 65. Frequency of Detention Without Being Promptly Informed 44 Figure 66. Reason Normally Given for the Detention of Goods 45 Figure 67. Proportion of Goods Detained Without Being Promptly Informed by Port 45 Figure 68. Perception that Guidance and Explanations on Penalties and Official Appeals Processes are Clear and Easy to Access Across Government Entities 46 Figure 69. Perception of the Effectiveness of Formal Complaint/Grievance Procedures in Addressing Respondents’ Concerns 47 Figure 70. Proportion of Respondents that Regularly Visit the Ports to Undertake Trade Processes and Procedures 47 Figure 71. Types of Negative Behaviors Experienced at the Port, Freeport, or Economic Zone by Gender 48 Figure 72. Sources of Negative Behavior 48 Figure 73. Main Port (Air or Sea) Utilized by Traders and Customs Brokers 61 Figure 74. Main Ports Utilized by Gender 62 Figure 75. Main Ports Utilized by Firm Size (Customs Brokers) 63 7 Meeting of the Philippine Chamber of Commerce and Industry © Deborah Campos/World Bank Executive Summary The COVID-19 pandemic highlighted the urgent need for trade facilitation reforms to expedite the movement, release, The WTO Agreement on Trade Facilitation (WTO TFA) and clearance of medical goods and protective equipment contains provisions for expediting the movement, through borders. Trade facilitation initiatives help countries release, and clearance of goods, including goods in reduce the time and cost for cross-border trade by stream- transit. The TFA sets out measures for customs lining procedures and processes for products moving across compliance issues and for effective cooperation borders, and improved trade facilitation will significantly increase between customs and other appropriate authorities global GDP. on trade facilitation. Trade facilitation measures can help to reduce transaction costs to import and export The Philippines is an archipelago composed of more than with simplified, transparent trade procedures. The TFA 7,000 islands. Trade in goods represented 43 percent of the is particularly important for developing countries as they Philippines’ GDP in 2020 while trade in services constituted strive to increase exports and overall trade and to 14  percent of GDP. The Philippines is especially challenged strengthen domestic economic activity. with infrastructure and connectivity issues that restrict trade activities.12 In addition, the Philippines experienced a series of unexpected events in 2020, such as the Taal Volcano erup- tion and the spread of the COVID-19 virus that limited trade.13 Consequently, the volume of imports of goods declined by 22.7  percent during 2020, while the volume of exports of Survey respondents included: goods contracted by 12.8 percent.14 ◾ Traders ( also called trade firms) that engage in cross-border import and/or export of goods (at One way to foster trade recovery and increase future trade the firm level and disaggregated by the gender of the flows is to implement trade facilitation measures that improve firms’ owner or manager) border processes and procedures, such as the ones found ◾ Customs brokers that provide cross-border trade in the World Trade Organization’s Trade Facilitation Agree- services — to help facilitate customs clearance and ment (WTO TFA).15 WTO TFA measures are assumed to be other import/export processes and procedures — to non-discriminatory and apply to all traders in their design; traders (at the firm level and disaggregated by the however, these measures may not necessarily impact or gender of the respondent) benefit all traders in similar ways. There is little research on how trade facilitation interventions impact disadvantaged and vulnerable groups (such as women, those that identify as belonging to ethnic minority groups, or those that have dis- abilities) at the firm level. Closing this knowledge gap will facil- sample populations consisted of (i) women and men owned itate improved design of effective and inclusive policy reforms and/or managed (led) firms engaged in cross-border trade and program interventions. and (ii) customs brokers that offer cross-border trade services on behalf of traders.16 To this end, the World Bank Group designed a study to iden- tify the gender specific obstacles that traders (also called The survey revealed several trade facilitation challenges faced “trade firms” in this report) and customs brokers face by the cross-border traders and customs brokers that partic- when undertaking cross-border trade of merchandise goods, ipated in the study, regardless of gender, e.g.,: with particular focus on the areas covered in the WTO TFA but also beyond (such as safety and security at the border as ◾ Twenty-eight percent of women and 27 percent of well as the impact the COVID-19 pandemic). Between June men traders ranked bureaucratic and burdensome border and September 2021, a phone survey of 2,101 trade firms and processes as their top challenge to further expanding 323 customs brokers was carried out across the country. The their business to international markets. 12 FAO. 2017. FAOSTAT Philippine Country Indicators. Accessed 2021. 16 Trading refers to cross-border trade. Traders in this note refers to representa- tives of firms importing and/or exporting across borders. In this survey, the World 13 The World Bank. 2020. Philippines Economic Update, June 2020 : Braving Bank Enterprise Survey’s definition of firm sizes is used: micro (1–4 employees), the New Normal. Report, Washington, D.C.: World Bank. small (5–19 employees), medium (20–99 employees), and large (100 employees and above). A firm is “woman owned” if (1a) ≥ 51 percent of the shares are owned 14 International Monetary Fund. 2021. World Economic Outlook Database. by a woman or (1b) ≥ 20 percent is owned by a woman; (2) it has ≥ 1 woman as October. CEO/COO/President/Vice President; and (3) has ≥ 30 percent of the board of directors composed of women (where a board exists). “Managed” refers to the 15 The Philippines is composed of over 7,000 islands; the use of the word highest management individual in the firm. Women-led in this note refers to a “border” in this report is referring to ports and airports (not land borders). firm own or managed by a woman. 9 ◾ The majority of traders and customs brokers busi- ◾ While the majority of traders and customs brokers nesses’ have been impacted by the pandemic, largely find regulations and processes easy to understand, because of delays for goods to be cleared and less slightly fewer women customs brokers than men cus- demand for their products and services. toms brokers reported that official regulations and pro- cesses are easy to understand (81 percent of women ◾ About half of traders and customs brokers believe customs brokers compared to 86 percent of men cus- that port working hours are restrictive to their business toms brokers). operations and ability to trade. ◾ With regard to information received from the gov- ernment on changes to border processes as a result ◾ Almost one-quarter of traders and more than one- of the COVID-19 pandemic, more women than men third of customs brokers report facing difficulties finding traders reported a lack of clarity with the information information on official regulations related to border pro- received (21 percent of women compared to 17 percent cesses and procedures. of men). ◾ Traders and customs brokers need to go to multiple ◾ Fewer women traders are aware of the existence of sources to find information on official regulations and the NTFC (52 percent of women compared to 62 percent procedures on border processes. Personal networks and of men). customs brokers are a primary source of information on official regulations for traders. ◾ Fewer women are members of trade or industry asso- ciations (56 percent of women compared to 63 percent ◾ Around one-third of traders and customs brokers of men traders and 91 percent of women compared to find that guidance and explanations on penalties and 95 percent of men customs brokers). They reportedly how to make official appeals are not clear or easy to do not see a need for the networking opportunities, can access across government entities. access information elsewhere, and also are discour- aged from joining due to high membership fees. ◾ Around two-thirds of traders and customs brokers are not regularly consulted on changes to official pro- ◾ Among the traders that are regularly consulted, less cesses and procedures and when they are, many feel than half believe that their feedback is taken into con- their feedback is not taken into consideration. sideration, with more women traders reporting their feedback is not taken into consideration compared to their men counterparts (21 percent of women compared ◾ A proportion of traders believe the use of customs to 15 percent of men). brokers is mandatory by law. ◾ While the majority of traders and customs brokers The differences between women and men respondents to reported that they can submit all required documenta- the survey did not indicate a large gap between the gen- tion electronically, slightly fewer women traders and cus- ders. In fact, the findings demonstrate only minor differences toms brokers reported that all required documents can between genders in some areas of trade facilitation, which be submitted electronically (85 percent of women com- is a testament to the government of the Philippines’ efforts pared to 88 percent of men traders). There was no major to deliver trade facilitation initiatives that benefit men and difference between men and women customs brokers women traders and customs brokers quite similarly. The survey (78 percent of women compared to 79 percent of men). did, however, point to a few specific challenges that dis­ proportionally impact women-led compared to men-led Because a quota sampling methodology was utilized for data firms and customs brokers: collection, there were no attempts to undertake testing of sig- nificance as this test is only appropriate in probabilistic sam- ◾ When looking for information on official border regu- pling procedures. The differences highlighted are subjective and lations, more women customs brokers face these chal- based on the observed proportions. With that said, it is critical to lenges: not all agencies keep information up to date (for continue a strong focus on closing the gender gaps in economic 44 percent of women compared to 31 percent of men), opportunities and voice in the Philippines, including in trade. official government websites and enquiry points are not responsive (for 33 percent of women and 22 percent of The next section of this report summarizes the sampling men), and there is a lack of comprehensive information methodology. Section two presents the survey findings, and across agencies (for 51 percent of women compared to section three provides recommendations to address the chal- 45 percent of men). lenges identified in section two. 10 Manila, Philippines © Casipit/Pexels 11 Port, Davao City, Philippines © Johnmark Barit/Pexels 1 Summary of Sample and Methodology Efforts to identify the universe of traders in the Philippines Table 1. Breakdown of Survey Respondents by Gender began in 2020. Based on data from the Bureau of Customs, and the Size of Firms That They Lead there were 24,684 trade firms registered with unique Tax Iden- tification Numbers in 2020.17 Remediation of the list reduced Trade Firms Customs Brokers the number of firms eligible to participate in the survey to Firm Size Women Men Total Women Men Total 12,866 because some of the entries were either (i) duplicates or (ii) based in economic zones.18 A list of 1,869 customs brokers Micro 15% 12% 14% 57% 54% 55% was also received from the Bureau of Customs. Small 41% 45% 43% 30% 33% 32% Medium 32% 32% 32% 9% 7% 8% Two questionnaires were designed to collect data in the Philip- Large 10% 10% 10% 4% 3% 3% pines and were translated from English into Tagalog for respon- dents that preferred this language. The questions were largely Don’t Know 0% 1% 0% 0% 2% 1% focused on areas related to the WTO Trade Facilitation Agree- Prefer not 1% 0% 1% 1% 1% 1% ment (including, but not limited to access to information, con- to say sultations, detention of goods, and the National Trade Facilitation Total 100% 100% 100% 100% 100% 100% Committee), but also touched upon safety and security issues at the border as well as the impact of the COVID-19 pandemic. Note: The World Bank Enterprise Survey’s definition of firm sizes is used: micro (1–4 employees), small (5–19 employees), medium (20–99 employees), and large (100 employees and above). Firm size was self-reported by interviewed To best achieve the goals of implementing the survey in light firms. Percentages may not add up to 100 percent due to rounding error. of available resources and time constraints, a quota sampling methodology was utilized to interview the cross-border trade firms (also referred to as “traders”). Quota sampling is a non- Based on this methodology, 8,729 active cross-border trade probabilistic sampling technique where the assembled sample firms were contacted to participate in the survey. The respon- typically has the same proportions of individuals as the entire dents were chosen randomly from the field list using STATA. population with respect to known characteristics, traits, or In cases where respondents were reluctant to participate, focused phenomenon. Trade flow type (import, export, or both) the contact information was invalid,20 or participants were and gender were the characteristics used for the traders in the not reachable, a replacement strategy was applied involving Philippines. Where the proportions did not reflect the real popu- the substitution of one firm from the sample with another one lation distribution, the results were weighted in order to reduce/ within the same category (i.e., exporter, importer, or importer/ eliminate any potential biases.19 For customs brokers, the overall exporter). sample size was computed by utilizing the formula to calculate sample sizes for a simple random (probabilistic) sample. The A total of 2,101 women and men traders were interviewed 1,869-population size, a 95 percent confidence level, and a in the Philippines over the telephone between June and five percent margin of error was used in order to approximate September 2021. A 24 percent response rate was achieved. what would have worked in a probabilistic sample. Of the 2,101 firms interviewed, 44 percent are led by men and 56 percent are led by women. About 13 percent of traders export only, about 76 percent import only, and 11 percent both export and import. 17 The study targeted firms that have engaged in more than two transactions 20 The field list for trade firms was reduced to around 10,000 following further over a 12-month period. clean-up procedures that identified firms ineligible to participate in the sur- vey due to reasons such as (1) being duplicates, (2) having incomplete contact 18 Firms located in economic zones were excluded from the study because information, (3) missing contact phone number and were unresponsive to email they have special importation procedures and incentives, which means they to obtain a contact phone number. do not have the same experience in dealing with customs than other importers. 19 Because the population distribution by gender was not known beforehand, a 50:50 (women: men) gender ratio was set to ensure enough women and men traders were interviewed. 13 Out of the 1,869 customs brokers identified in the Philippines, The survey was limited to identifying constraints that exist- 1,389 were contacted and 323 were successfully interviewed ing traders face. Therefore, it may suffer from a selection bias using a simplified version of the trader questionnaire. A response in that it did not explore obstacles to engaging in trade among rate of 23 percent was achieved. Of the 323 customs brokers, women firms who currently only trade domestically (possibly 57 percent are led by men and 43 percent are led by women.21 as a result of barriers to cross-border trade). Exploring the rea- sons of non-engagement in cross-border trade would require Table 1 provides a summary breakdown of trader and customs a deeper assessment of why non-trading women firms do not brokers survey respondents by gender and size of firms. trade, which goes beyond the scope of this survey and likely also the WTO Trade Facilitation Agreement. Given that a quota sampling approach was employed, the findings in this report are representative of the population Annex A provides a more detailed description of the survey characteristics that were used to form the quotas, though sample and methodology. might be limiting in that it may not be representative for some of the population characteristics of the country at large. 21 Based on gender information captured from the survey respondents and those that declined to be interviewed, the gender breakdown in the trader pop- ulation was 53.5 percent women. To adjust for potential non-response bias, and over-coverage of some population groups, post-stratification weights were thus applied to the analysis based on these data. Similarly, weights were applied to the customs brokers survey analysis, based on the population level data, which indicate a women population of 45 percent. 14 Subic, Philippines © Nate Hovee/Pexels 15 Primitiva Vanderpoorten, hotel owner, Luna © UN Women/Norman Gorecho 2 Key Survey Findings The survey findings are presented in three parts. Part A pro- Figure 1. Proportion of Respondents that Self— vides an overview of the demographics of the survey respon- Identify as Having Disabilities by Survey dents, the trade profile of the firms interviewed, as well as the Population Group impact of the COVID-19 pandemic; part B highlights the main 100% challenges to expanding business; and part C reports the 90% trade facilitation-specific findings along with other issue areas outside of trade facilitation (such as safety and security). 80% 70% 60% Respondent 50% Demographics and 40% 30% Business Profile 20% 10% 2% 1% 0% Customs Brokers Trade Firms Profile of Traders and Customs Brokers Surveyed ◾ The share of respondents with disabilities is relatively Figure 2. Proportion of Respondents that Self— small and most are men. Of the sample of 323 customs brokers, Identify as Having Disabilities by Gender five responded that they have a disability (two percent). Of the 100% sample of 2,101 traders, 21 responded that they have a disability 90% (one percent). In terms of gender, 55 percent are men, and 80% 45 percent are women (see Figures 1 and 2). 70% ◾ A greater proportion of men traders and customs brokers 60% 55% self-identified as belonging to an ethnic minority group 50% 45% compared to their women counterparts. Six percent of 40% customs brokers and two percent of traders responded that 30% they belong to an ethnic minority group. By gender, there are more men traders (54 percent) and customs brokers (75 percent) 20% than women traders (46 percent) and customs brokers (25 per- 10% cent) that identified as belonging to an ethnic minority group (see 0% Figures 3 and 4). Women Men ◾ Over half of the interviewed trade firms are women-led Figure 3. Proportion of Respondents Self-Identifying firms, but less than half of the interviewed customs brokers as Belonging to an Ethnic Minority Group by Survey are led by women. The distribution of firm size led by men Population Group and women traders is similar, though slightly more women traders lead micro firms, and slightly more men traders lead 100% small firms. Similarly, slightly more women customs brokers 90% lead micro firms while more men customs brokers lead small 80% firms. More women customs brokers also lead medium and large firms than men customs brokers (see Figures 5 and 6). 70% 60% ◾ Almost half of surveyed traders with disabilities lead 50% small-sized firms (48  percent). Fourteen percent lead 40% micro, 33 percent lead medium, and five percent lead large- 30% sized firms (see Figure 7). 20% 10% 6% 2% 0% Customs Brokers Trade Firms 17 Figure 4. Proportion of Respondents Self-Identifying Figure 6. Proportion of Firms by Size and Gender as Belonging to an Ethnic Minority Group by Gender of Customs Brokers 100% 100% 90% 90% 80% 75% 80% 70% 70% 60% 57% 60% 54% 54% 50% 46% 50% 40% 40% 33% 30% 30% 25% 30% 20% 20% 9% 7% 10% 10% 4% 3% 0% 2% 1% 1% 0% 0% Women Men Micro Small Medium Large Don’t Prefer know not to Customs Brokers Trade Firms say Women Men Figure 5. Proportion of Firm Sizes Led by Gender Figure 7. Proportion of Firm Sizes Led by Traders of Traders that Self-Identify as Having Disabilities 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 48% 50% 45% 43% 41% 40% 40% 32% 32% 33% 32% 30% 30% 20% 20% 14% 14% 15% 10% 12% 10% 10% 10% 5% 10% 0.3% 1% 1% 0.3% 0% 0% Micro Small Medium Large Don’t Prefer Micro Small Medium Large know not to Trade Firms: Disabled Trade Firms: Non-Disabled say Women Men 18 ◾ More traders and customs brokers that identify with an Figure 8. Proportion of Firm Sizes Led by Respondents ethnic minority group lead small-sized firms than other that Self-Identify as Belonging to Ethnic Minority Groups firm sizes (see Figure 8). 100% 90% ◾ The surveyed women traders are younger than men traders. Forty-seven percent of traders are within the 35–44 age 80% group, and 25 percent are within the 45–59 age group. Almost 70% a quarter of traders are between the ages of 25–34, six percent 60% are age 60 years and above and one percent of surveyed traders 50% 50% are younger than 25 years. Across genders, the analysis shows 40% 40% 35% that women traders (45 percent) are typically in the 35–44 age 33% group, followed 27 percent in the 25–34 age group, 22 percent 30% 20% in the 45–59 age group, four percent in the 60 years and above 20% 10% age group, and two percent in the 24 and younger age group. On 10% 7% the other hand, 49 percent of men-led firms are in the 35–44 age 0% 0% group, followed by 28 percent in the 45–49 age group, 15 per- Micro Small Medium Large cent in the 25–34 age group, and eight percent in the 60 and Trade Firms Customs Brokers over age group (see Figure 9). ◾ Most traders have many years of cross-border trading Figure 9. Age of Trader Respondents by Gender experience, though women traders have slightly less expe­ 100% rience than men traders. Almost one-third (32 percent) of 90% interviewed firms have spent 5–9  years engaging in cross- 80% border trade, followed by 27 percent having 15 years or more of experience, 24 percent having 0–4 years, and 18 percent having 70% 10–14 years of experience. Analyzing across gender, men traders 60% 49% are more experienced, with 47 percent reporting 10 or more 50% 45% years, compared to 42 percent of women traders. In contrast, 40% 58 percent of women traders have less than 10 years of experi­ 27% 28% 30% enced compared to 53 percent of men traders (see Figure 10). 22% 20% 15% 8% 10% 2% 1% 4% 0% Up to 24 25–34 35–44 45–59 Over 60 Women Men Figure 10. Number of Years the Respondents have been Engaged in Cross-Border Trade 100% 90% 80% 70% 60% 50% 40% 33% 31% 28% 30% 25% 25% 22% 20% 17% 19% 10% 0% 0–4 years 5–9 years 10–14 years 15 years or more Women Men 19 ◾ Overall, 80  percent of traders stated that caretaking ◾ More traders use official bank loans to finance their responsibilities (of children and/or elderly) do not impact businesses than other forms of financing, while more cus­ their ability to trade across borders. Similarly, nine percent toms brokers use personal savings than other sources. For do not feel caretaking responsibilities are a major concern traders, the majority use official bank loans (35 percent) and since they have help at home, and nine percent only attend to personal savings (21 percent) to finance their business. The these duties in the mornings and evenings. Only two percent least used method of financing for traders is through relatives of women and men traders stated their caretaking responsi- or friends (2–3 percent). There are no major differences in the bilities affect their ability to conduct their cross-border trade way men and women traders finance their trading business. activities (see Figure 11). Among the customs brokers, the majority of customs brokers utilize personal savings to finance their business (55 percent of men and 39 percent of women respectively) (see Figure 12). Figure 11. Proportion of Traders with Caretaking Responsibilities that Impact Ability to Trade Across Borders ◾ By firm size, the most used mode of financing is offi­ 100% cial bank loans, except for one-third of micro-sized trade 90% 83% firms that use personal savings. Forty-five percent of 80% 78% large firms, 38  percent for medium firms, and 35  percent of small firms report using official bank loans. Micro firms are more 70% likely to use personal savings as their main financing source 60% (33 percent), whereas only 14 percent of large firms reported 50% personal savings as their source of business financing. Other 40% financial sources, such as venture capital and equity financing, 30% are important sources of finance for large (21  percent) and medium sized firms (18 percent) (see Figure 13). 20% 10% 7% 10% 10% 7% 2% 2% 0% No, I have No, I only spend No, I have Yes no major mornings/ help at home caretaking evenings with these responsibilities on these responsibilities responsibilities Women Men Figure 12. Sources Used to Finance Trading Business by Gender 100% 90% 80% 70% 60% 55% 50% 39% 40% 35% 36% 29% 30% 21% 21% 21% 21% 19% 18% 18% 18% 16% 20% 14% 13% 14% 12% 7% 8% 9% 9% 8% 7% 10% 4% 7% 3% 2% 0% Official bank Other Personal savings Relatives/friends Any other (e.g., I don’t use any Prefer not to say loan loans/grants venture capital, of these equity financing) Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Note: Respondents can select more than one category, so totals may add to more than 100 percent. 20 Figure 13. Sources Used to Finance Trading Business by Firm Size 100% 90% 80% 70% 60% 50% 45% 38% 40% 35% 33% 27% 28% 30% 24% 23% 19% 18% 20% 20% 21% 18% 17% 20% 14% 15% 15% 11% 11% 12% 10% 11% 8% 10% 5% 2% 2% 2% 0% Official bank loan Other Personal savings Relatives/friends Any other (e.g., I don’t use any Prefer not to say loans/grants venture capital, of these equity financing) Micro Small Medium Large Note: Traders can select more than one category, so totals may add to more than 100 percent. Import and Export Activity of women-led firms state they import from within and beyond East Asia and the Pacific; and 10 percent of men and women- ◾ Most trade firms (76 percent) are importers, regardless led firms import from beyond East Asia and the Pacific only. of gender. Out of the remaining 24 percent of firms, 14 per- When breaking down exporters by firm size, the main dif- cent are export-focused only, while 10 percent conduct both ferences seen are with large firms where a higher share of imports and exports (see Figure 14). large firms export within and beyond East Asia and the Pacific (nine percent) compared to micro (six percent), small (four ◾ More trade firms and customs broker trade only within percent), and medium (six percent) sized firms. This is similar East Asia and the Pacific (EAP) than with other areas. for imports as well with 30 percent of large firms importing For trade firms that import, 62 percent of men-led and 59 per- from within and beyond EAP, 12 percent for micro, 13 percent cent of women-led trade firms import from within the EAP for small, and 17 percent for medium. More men customs region. In comparison, only 15 percent of men and 17 percent brokers (52 percent) provide support services within East Asia Figure 14. Proportion of Importers/Exporters by Gender Figure 15. Export Destination by Gender (Trade Firms) 100% 100% 90% 90% 78% 80% 75% 80% 74% 77% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 14% 20% 14% 14% 13% 11% 9% 10% 10% 6% 5% 6% 4% 0% 0% Export Import Export and Import Within East Beyond East Within and Does not Asia and the Asia and the Beyond East export Women Men Pacific Pacific Asia and Pacific Women Men 21 Figure 16. Import Origin by Gender (Trade Firms) Figure 17. Export Destination by Gender 100% (Customs Brokers) 90% 100% 80% 90% 70% 80% 62% 59% 60% 70% 60% 50% 52% 54% 40% 50% 30% 40% 17% 15% 28% 20% 14% 13% 30% 23% 10% 10% 21% 10% 20% 14% 0% 10% 4% 4% Within East Beyond East Within and Does not 0% Asia and the Asia and the Beyond East import Within East Beyond East Within and Does not Pacific Pacific Asia and Asia and the Asia and the Beyond East export Pacific Pacific Pacific Asia and Women Men Pacific Women Men and the Pacific than women customs brokers (45 percent). On Figure 18. Import Origin by Gender (Customs Brokers) the other hand, more women customs brokers (46 percent) 100% than their men counterparts (38 percent) provide importing 90% services from within and beyond East Asia and the Pacific (see Figures 15-18). 80% 70% ◾ Women traders are more active than men in export of 60% 52% artwork, collectors’ pieces, antiques, and in textile and 50% 45% 46% footwear. Men are more active in industries such as machin- 38% ery, vehicles, and arms. Women customs brokers are more 40% active than men in animal and vegetable products and artwork 30% (see Figure 19). 20% 10% 6% 8% ◾ Import commodities follow a similar pattern for men and 2% 2% 0% women traders, with relatively little difference between Within East Beyond East Within and Does not the different commodities. A higher share of women than Asia and the Asia and the Beyond East import men customs brokers, however, appear to be involved in imports Pacific Pacific Asia and of textile/footwear and artwork commodities (see Figure 20). Pacific Women Men ◾ Frequency of trade is similar regardless of gender. Over half of the interviewed traders in the Philippines trade infre- quently, such as three times or fewer per year. Almost one-third (30 percent) of trade firms reported trading about once per month, and 18 percent trade more than once per month. Dis- aggregated by gender, 54 percent of men and 50 percent of women-led trade firms reported trading three or fewer times per year. Another 31 percent of women-led and 29 percent of men-led trade firms trade once per month. Comparing across firm sizes, small-sized firms have the lowest trade frequency compared to other firm sizes. When analyzing trade frequency by commodity type, the main trend among the surveyed respondents is that perishables (animal and vegetable prod- ucts, beverages) are exported at a higher frequency (37 percent are exported more than once per month) (see Figures 21 and 22). 22 Figure 19. Main Commodities Exported 100% 90% 80% 70% 60% 50% 41% 37% 39% 40% 30% 30% 28% 30% 30% 25% 26% 18% 19% 19% 18% 20% 15% 13% 12% 13% 9% 10% 10% 11% 9% 10% 10% 6% 0% Animal and Mineral, plastic Textile and Stone, glass, and Machinery, Artwork, vegetable and rubber footwear metals vehicles, arms collectors’ pieces, products, products antiques, beverages miscellaneous manufactured articles Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Note: Percentages are based on the number of respondents that trade in each commodity group and not the value of the goods trade. Figure 20. Main Commodities Imported 100% 90% 80% 70% 60% 50% 36% 34% 38% 38% 40% 34% 33% 30% 24% 24% 22% 19% 20% 21% 18% 22% 18% 20% 15% 15% 17% 14% 14% 10% 10% 10% 6% 4% 0% Animal and Mineral, plastic Textile and Stone, glass, and Machinery, Artwork, vegetable and rubber footwear metals vehicles, arms collectors’ pieces, products, products antiques, beverages miscellaneous manufactured articles Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Note: Percentages are based on the number of respondents that trade in each commodity group and not the value of the goods trade. 23 Figure 21. Frequency of Export/Import by Gender Impact of COVID-19 100% The COVID-19 Pandemic has demonstrated the urgency to 90% improve the Philippine trade facilitation environment. The 80% Philippines entered a strict community quarantine in March 70% 2020 that restricted mobility and business activities in an 60% 54% effort to contain the spread of the COVID-19 pandemic. Within 50% days of the implementation of Enhanced Community Quaran- 50% tine (ECQ), the international seaports of Manila began experi- 40% 31% 29% encing congestion, as consignees were unable to collect their 30% containers from the ports. While the Bureau of Customs was 19% 17% 20% able to immediately adopt emergency protocols, such pro- 10% tocols were difficult to uniformly adopt across the different 0% trade regulators. This section examines how the trade firms 3 or fewer times Once every More than once and customs brokers specifically were impacted by both the per year month (about a month per year quarantine measures and other circumstances. 12 times per year) Women Men The key survey findings included the following: ◾ A large majority of traders and customs brokers report Figure 22. Frequency of Export/Import by Firm Size that their businesses have been impacted by the pan­ demic, largely because of delays for goods to be cleared 100% and less demand for their products and services. For 90% traders, 87 percent of men and women-led firms state their 80% ability to conduct cross-border trade/customs broker activities 70% have been impacted. As much as 90 percent of interviewed 60% 56% 58% men customs brokers said their business were impacted.22 This figure resonates with the Business Pulse Survey conducted 50% 46% 43% in May 2021, which indicates that approximately 87 percent 40% of firms were operating below full capacity due to the pandemic, 32% 30% 32% 30% 26% 25% which also forced the permanent closure of about nine percent 23% 20% 17% of firms.23 The main way the pandemic has impacted cross- 10% border trade for the respondents is from long delays at clearance 10% sites for imported/exported goods (67  percent for women, 0% 3 or fewer times Once every month More than once a 61  percent for men) as well as less product demand (49  per- per year (about 12 times month per year cent for women and 46 percent for men). Similarly, 66 percent per year) of women customs brokers and 63 percent of men customs Micro Small Medium Large brokers stated that there is now less demand for their ser- vices, followed by long delays for goods to be cleared (48 per- cent for women and 47 percent for men customs brokers) (see Figures 23 and 24). 22 The Asian Development Bank Institute conducted a rapid survey in the Philippines from March to April 2020 and found that an “average 73.1 percent of MSMEs were forced to close their business a few weeks after the COVID-19 outbreak and the lockdown measures implemented.” Furthermore, “only 2.3 percent of MSMEs on average reported no change in the business environment after the outbreak.” (Shinozaki and Rao 2021) 23 World Bank. 2021. Impact of COVID-19 on firms in the Philippines: May 2021. Accessed 2021. https://thedocs.worldbank.org/en/doc/470bd69ba34a869f7a 87568b2be917d7-0090062021/original/Survey-Results-Impacts-of-COVID-19- on-Firms-in-the-Philippines-Survey-Round-3.pdf. 24 Figure 23. COVID-19 Pandemic has Impacted ◾ While the number of hours spent on complying with cus- Respondents’ Ability to Undertake Cross-Border Trade toms inspections due to the pandemic has not changed 100% significantly for around 40  percent of traders and customs 90% brokers, 44 percent of women traders and 43 percent for men 87% 87% 86% 90% traders reported an increase. Thirty-seven percent of women 80% customs brokers and 33 percent of men customs brokers also 70% reported an increase (see Figure 25). 60% 50% ◾ The majority of women and men traders and customs brokers largely state hours spent on complying with agricul- 40% tural quarantine inspections have not changed (see Figure 26). 30% 20% 10% 0% Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Figure 24. Effects of the Pandemic on Cross-border Trade/Customs Brokers Activities 100% 90% 80% 66% 67% 70% 63% 61% 60% 49% 48% 47% 50% 46% 40% 27% 29% 30% 16% 16% 20% 13% 15% 7% 7% 8% 10% 5% 5% 6% 0% I have less time to Less demand for my More demand for my There are long delays Clearance times have work on my business product/service product/service for goods to be cleared decreased Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men 25 Figure 25. Hours Spent Complying with Customs Figure 27. Hours Spent on Payment of Official Fees Inspection has Changed for Import/Export has Changed 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 54% 50% 44% 43% 46% 50% 45% 41% 37% 38% 39% 38% 36% 40% 33% 40% 35% 37% 35% 37% 28% 30% 30% 25% 30% 26% 20% 15% 20% 16% 11% 10% 10% 10% 0% 0% Increased Decreased No Change Increased Decreased No Change Trade Firms: Women Trade Firms: Men Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Customs Brokers: Women Customs Brokers: Men Figure 26. Hours Spent Complying with Agricultural Figure 28. Hours Spent Complying with Product Quarantine has Changed Standards has Changed 100% 100% 90% 90% 80% 76% 75% 80% 70% 70% 66% 70% 62% 60% 58% 60% 51% 50% 50% 46% 40% 40% 35% 30% 28% 30% 25% 23% 27% 20% 22%22% 22% 18% 20% 20% 15% 12% 12% 10% 7% 10% 4% 3% 0% 0% Increased Decreased No Change Increased Decreased No Change Trade Firms: Women Trade Firms: Men Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Customs Brokers: Women Customs Brokers: Men ◾ Almost half of traders (49 percent) state that time spent however, more women reported less clarity with the infor­ paying official fees has not changed. In contrast, customs mation received. Sixty-eight percent of men traders compared brokers typically reported mixed views on payment of official to 62 percent of women traders found information to be clear fees, with approximately one-third reporting that the number and easy to understand. A slightly higher proportion of women of hours increased, decreased, and stayed the same (men and traders relative to men traders felt it was clear but came too late women combined) (see Figure 27). (10 percent vs eight percent) and that it was confusing or con- tradictory between different border agencies when compared to ◾ More traders and customs brokers state the number of men traders (21 percent vs 17 percent) (see Figure 29). hours devoted to compliance with product standards have not changed than traders and customs brokers that state ◾ Only 46 percent of customs brokers believe the infor­ there have been changes (see Figure 28). mation from the government is clear and easy to under­ stand. Approximately 35 percent of customs brokers stated the ◾ Over half of the traders stated that information received information provided was confusing or contradictory between from the government on changes to border processes border agencies, while 14 percent who stated the information caused by the pandemic is clear and easy to understand, was clear but came too late (see Figure 29). 26 Figure 29. Perception of Information Received from the Government on Changes to Border Processes and Procedures Caused by the Pandemic 100% 90% 80% 68% 70% 62% 60% 50% 45% 46% 40% 35% 36% 30% 21% 16% 17% 20% 13% 10% 8% 10% 5% 5% 5% 1% 2% 2% 2% 2% 0% Clear and easy to Clear, but it came too Confusing/contradictory Don't know Prefer not to say understand late between different border agencies Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Main Challenges to (and most commonly mentioned by women traders overall) is expensive/complex transport and logistics services (ranked Expanding Business second by 27 percent of women and 29 percent of men traders), followed by high tariffs. Moreover, 11 percent of both women- and men-led firms stated the lack of knowledge of interna- tional markets was their greatest obstacle (see Figure 30). The survey asked respondents to rank the top three barriers that pose a challenge to their firm’s ability to expand to inter- ◾ A major challenge that customs brokers report to face national markets.24 The findings in this section shed light on in expanding internationally is lack of knowledge of inter­ the broad areas that should be prioritized for reform actions national markets (21 percent). In addition to a lack of knowledge in order to improve the overall cross-border trade environ- of international markets, men customs brokers also consider ment in the country, which is especially important to take into access to finance (17 percent), bureaucratic/burdensome border consideration as the country looks toward economic recovery process and procedures (15 percent), and expensive/complex from the COVID-19 pandemic. transport and logistics services (16  percent) to be challenges. For women customs brokers, additional main challenges they ◾ A top challenge that women and men traders face in face include, access to finance (17 percent), expensive/complex further expanding their businesses internationally is transport and logistics services (17 percent), time management bureaucratic and burdensome border processes. The (16 percent), and bureaucratic/burdensome border process and biggest challenge for men and women trade firm owners is procedures (13 percent). Some additional challenges faced bureaucratic and burdensome border processes (28 percent for women include high tariffs (nine percent) and lack of capacity for women and 27 percent for men). The second ranked obstacle to increase production (seven percent) (see Figure 31). 24 Respondents were asked to rank their top three challenges from multiple choices and could also provide a fill-in response if their challenge was not listed. 27 Figure 30. Main Challenges Traders Face in Further Expanding Their Businesses (Based on Ranking of Top 3 Challenges) Women Trade Firms 100% 90% 80% 70% 60% 50% 15% 7% 40% 8% 14% 30% 27% 18% 20% 5% 3% 11% 28% 10% 6% 10% 3% 17% 18% 6% 5% 11% 8% 7% 5% 0% Lack of Bureaucratic and Access High tariffs Expensive/complex Lack of Time knowledge of burdensome border to finance transport and capacity to management international processes and logistics ervices increase markets procedures production Rank 1 Rank 2 Rank 3 Men Trade Firms 100% 90% 80% 70% 60% 50% 16% 6% 8% 40% 14% 30% 17% 29% 20% 4% 6% 11% 2% 27% 10% 10% 3% 22% 10% 15% 6% 11% 9% 6% 5% 0% Lack of Bureaucratic and Access High tariffs Expensive/complex Lack of Time knowledge of burdensome border to finance transport and capacity to management international processes and logistics ervices increase markets procedures production Rank 1 Rank 2 Rank 3 28 Figure 31. Main Challenges Customs Brokers Face in Further Expanding Their Businesses 9% Time management 16% 10% Lack of capacity to increase production 7% 16% Expensive/complex transport and logistics services 17% 7% High tariffs 9% 17% Access to finance 17% Bureaucratic and burdensome border processes 15% and procedures 13% Lack of knowledge of international markets 23% (e.g., networks, language barriers) 18% Men Women Trade Facilitation-Specific handling paperwork (52 percent for women and 49 percent for men); handling warehousing (47 percent for women and and Other Findings 50 percent for men); and handling payments (41 percent for women and 39 percent for men). In addition to these services, 23 percent of men traders and 21 percent of women traders reported using customs brokers to avoid safety issues at ports, The findings in section B highlighted that bureaucratic and while five percent of women traders and three percent of men burdensome import/export processes and procedures pre­ traders used customs brokers because they believe it is man- sent a challenge for traders and customs brokers. This section dated by law (see Figures 32 and 33).25 further investigates the experiences of traders and customs brokers with the cross-border trade processes and proce- dures in the Philippines, including whether there are gendered Figure 32. Proportion of Trade Firms that Use differences in their experiences. Customs Brokers 100% 93% 92% Moving Goods and Use of Intermediaries 90% 80% Customs clearing agents such as customs brokers and freight 70% forwarders help facilitate customs clearance and other import/ 60% export processes and procedures for traders. WTO TFA Article 10.6 stipulates that measures mandating the use of customs brokers 50% shall not be introduced after February 22, 2017, (the date of 40% the agreement’s entry into force). While the use of brokers is very 30% common in the Philippines, it is not mandatory by law. 20% ◾ Most traders, regardless of gender, hire customs bro­ 10% kers for services such as handling shipping (84 percent for 0% Yes women and men) and transport (75 percent for women and 72 percent for men). Other uses for customs brokers include Women Men 25 Under the provisions of the Customs Modernization and Tariff Act (CMTA), it is not mandatory to use customs brokers or agents. The Bureau of Customs issued CMO 34-2019 as an interim guideline for accreditation of Importer’s declarants. 29 Figure 33. Reasons for Hiring Customs Brokers 100% 90% 84% 84% 80% 75% 72% 70% 60% 50% 52% 47% 49% 50% 41% 39% 40% 30% 21% 23% 20% 10% 5% 3% 0% Handle shipping Handle transport Handle Organize and Handle payments It is mandatory To avoid safety warehousing handle of official fees by law issues at port paperwork Women Men ◾ For those that do not use customs brokers (seven per­ Figure 34. Reasons for Not Using Customs Brokers cent of the interviewed firms), the main reason is that the 100% traders felt their services are not needed because they 90% have in-house expertise. Additionally, 17 percent of men and 80% 77% 75% 18 percent of women-led firms do not use a customs broker because it is too costly, while three percent of men and six 70% percent of women-led firms stated customs brokers are not 60% available locally. Interestingly, a subset of women-led firms 50% (eight percent) reported that they did not use a customs broker 40% because they lack confidence in the services provided, while their men counterparts did not share the same view (see 30% 18% 17% Figure 34). 20% 8% 6% 10% 3% 0% 0% Not needed as Too costly No confidence Not available we have in-house in service locally expertise providers Women Men 30 Port Opening Hours ◾ About half of traders (48 percent) and more than half of customs brokers (52  percent) believe that the port Restrictive port opening hours can have a negative impact working hours are restrictive to their ability to trade. on international trade and on supply chains. If goods are Slightly more than quarter (28 percent) of trade firms believe delayed at ports awaiting physical inspection and clearance, that opening times are restrictive, and a further 16 percent the increased time to clear goods at ports will adversely affect believe that their ability to trade is restricted because opening the cost of doing business. Longer clearance times, through hours of border agencies differ within the country.26 By gender, restrictive hours or inefficient border processes, have been 26 percent of women and 31 percent of men traders feel that found to significantly increase the cost of trading, and there- the opening times are restrictive, and 18 percent of women fore reduce international trade. Delayed intermediate goods and 14 percent of men traders believe that operating hours that are required for global supply chains can affect global are restrictive due to the different operating hours of border production when delayed by restrictive port opening hours. agencies within the country. Among the customs brokers, Additionally, in some countries, there can be an increased risk 25 percent of men and 24 percent of women stated that port of theft and spoilage if goods are not adequately secured or opening hours are restrictive. Furthermore, 22  percent of stored while waiting for border clearance. women and 21 percent of men customs brokers specified that port opening hours restrictive due to different opening hours of border agencies within country (see Figure 35). Figure 35. Perception of Port Operating Hours 100% 90% 80% 70% 60% 53% 52% 47% 48% 50% 40% 31% 30% 26% 24% 25% 22% 21% 18% 20% 14% 10% 7% 6% 3% 3% 0% No, working hours are Yes, opening times are Yes, restrictive due to different Yes, restrictive due to different convenient restrictive opening hours of border opening hours at neighboring agencies within country border posts Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men 26 The Bureau of Customs in its issuance of CMO 24-2016 sets regular working hours to 8am-5pm, Monday to Friday, with exception of those in field operations and frontline services. The District Collector are authorized to set work schedules locally from 7am-7pm, as necessary, for frontline services. 31 ◾ About half of the traders find opening hours to be con­ Figure 36. Restrictiveness of Opening Hours by Port venient, with only a slight difference between those that (Traders) trade through the Manila/Batangas ports (54 percent) 100% and the other ports (49 percent). This indicates, however, 90% that half of the traders find opening times to be restrictive 80% (see Figure 36). 70% ◾ Similarly, about half of the customs brokers primarily 60% 54% trading in Manila/Batangas and other ports also find open­ 49% 50% ing hours to be convenient (46 percent and 51 percent 40% respectively). This leaves about half of the surveyed cus­ 30% 30% 26% toms brokers finding opening hours to be restrictive (see 20% Figure 37). 20% 14% 10% 5% 2% 0% No, working Yes, opening Yes, restrictive Yes, restrictive hours are times are due to different due to different convenient restrictive opening hours opening hours of border at neighboring agencies within border posts country Manila/Batangas Rest of ports Figure 37. Restrictiveness of Opening Hours by Port (Customs Brokers) 100% 90% 80% 70% 60% 51% 50% 46% 40% 30% 25% 24% 23% 20% 17% 8% 10% 6% 0% No, working Yes, opening Yes, restrictive Yes, restrictive hours are times are due to different due to different convenient restrictive opening hours opening hours of border at neighboring agencies within border posts country Manila/Batangas Rest of ports 32 Access to and Understanding of Official Border agencies (44 percent), and unresponsive official government Regulations and Procedures services (33 percent). For men customs brokers, 45 percent faced difficulty with the lack of comprehensive information Accessing and understanding official regulations and proce­ across agencies, 35 percent reported non-user friendly gov- dures is important for transparency, compliance, and pre- ernment information mechanisms, and 31 reported that not dictability of the trading environment. The publication and all agencies keep information up-to-date (see Figures 38 dissemination of changes to relevant laws and regulations and 39). must be done with sufficient advance notice and in easy-to- understand language. If traders are unaware of new customs rules and regulations, or if they cannot understand them, they Figure 38. Proportion of Traders and Customs Brokers may face additional compliance burdens and costs for not That Face Difficulties When Looking for Information properly meeting requirements. WTO TFA Article 1 covers pub- on Official Regulations and Procedures Related to lication and availability of information, including the prompt Border Processes and Procedures publication of general trade-related information in a non- 100% discriminatory and easily accessible manner, as well as pub- 90% lication of practical guides, forms and documents, relevant 78% 78% 80% trade laws, and enquiry contact points on the internet. 70% 68% 65% ◾ Almost one-quarter of traders and slightly more than 60% one-third of customs brokers report facing difficulties 50% with finding information on official regulations related to 40% 35% border processes and procedures. Lack of comprehensive 32% 30% information across agencies was the more prominent diffi- 22% 22% culty faced by women traders than other reasons for facing 20% difficulties (35 percent). The more prominent difficulty faced 10% by men traders was that official government mechanisms are 0% not user-friendly (37 percent). For customs brokers, women Women Men Women Men Trade Firms Customs Brokers faced difficulty with the lack of comprehensive information across agencies (51 percent), outdated information across Yes No Figure 39. Types of Difficulties Faced 100% 90% 80% 70% 60% 51% 50% 45% 44% 40% 37% 35% 35% 36% 33% 34% 33% 30% 28% 29% 31% 31% 30% 22% 20% 22% 19% 18% 20% 10% 0% Official government Trade related Not all agencies have Not all agencies keep Official government information information is not comprehensive information up-to-date websites and enquiry mechanisms are not centralized information available points aren’t user-friendly responsive Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Note: Totals may sum to more than 100 percent because this was a multiple choice question. 33 ◾ Traders and customs brokers belonging to ethnic Figure 40. Proportion of Respondents Belonging to an minority groups are more likely to report facing difficulties Ethnic Minority Group that have Difficulties Looking when looking for information on official regulations com­ for Information on Official Trade Regulations pared to those that do not belong to ethnic minority groups 100% (see Figure 40). 90% ◾ Trade and customs brokers need to go to multiple 80% sources to find information on official regulations and 70% procedures on border processes. Personal networks, such 60% as customs brokers and agents, are the main source of 50% information on official regulations for traders (82  percent), 43% while customs brokers rely on a wider variety of sources, 40% 37% 33% including information online (48 percent), government web- 30% 22% sites (34 percent), and personal networks (31 percent). Only 20% 14 percent of customs brokers and 17 percent of traders inter- 10% viewed reported using the Philippine National Trade Repository as their source of information (see Figure 41). 0% Yes ◾ The majority of traders and customs brokers find reg­ Traders: Belonging to an Ethnic Minority Group ulations and processes easy to understand. More men Traders: Not Belonging to an Ethnic Minority Group customs brokers, however, report that regulations are easy to Customs Brokers: Belonging to an Ethnic Minority Group understand than their women counterparts, with 86 percent of men customs brokers stating official regulations and pro- Customs Brokers: Not Belonging to an Ethnic Minority Group cesses are easy to understand compared with 81 percent for women customs brokers (see Figure 42). Figure 41. Sources for Finding Information on Official Regulations and Procedures 11% Trade community/industry associations 7% 5% 4% 7% 4% Radio/TV/newspapers 3% 4% 47% Online (non-government websites, social 50% media) 18% 22% 22% 17% Government officials at the port/enquiry points 13% 10% 34% Other government websites or official 35% communication 14% 17% 13% 15% Philippine National Trade Repository 20% 14% 28% Personal networks/agents/brokers/freight 35% forwarders 83% 81% Customs Brokers: Men Customs Brokers: Women Trade Firms: Men Trade Firms: Women 34 Figure 42. Proportion of Respondents that Perceive Figure 43. Proportion of Traders that are Aware Regulations to be Easy to Understand of the NTFC’s Existence 100% 100% 92% 92% 90% 86% 90% 81% 80% 80% 70% 70% 62% 60% 60% 52% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Yes Yes Trade Firms: Women Trade Firms: Men Women Men Customs Brokers: Women Customs Brokers: Men The National Trade Facilitation Committee (NTFC) ◾ Fewer women traders (56 percent) and women customs and Membership in Trade/Industry Associations brokers (91 percent) are members of a business or trade/ industry association compared to their men counterparts WTO TFA Article 23 stipulates that each WTO Member should (63 percent and 95 percent respectively). For those who establish and/or maintain a national committee on trade facili- are not members, traders primarily reported the reasons as tation or designate an existing mechanism to facilitate domes- not needing the networking opportunities or that they can tic coordination and implementation of the WTO TFA. The access the needed information elsewhere. For customs bro- NTFC’s role is to streamline procedures and implement trade kers, the majority of women customs brokers reported they facilitation measures at the national level. It is also an important do not need the networking opportunities (54 percent), while mechanism for domestic coordination and stakeholder (public men customs brokers most commonly reported that their and private) engagement and can serve as a good mechanism voice is heard even if they are not a member (33 percent) (see for obtaining buy-in and consensus on reform implementation Figures 44 and 45). priorities. The NTFC is especially important because differing interests can spark resistance, and the NTFC can mitigate conflicts by improving the coordination among participants Figure 44. Proportion of Respondents that are Members and border agencies, as well as providing leadership across of Business or Trade/Industry Association relevant government entities. 100% 95% 91% 90% The Philippines NTFC was created on May  18, 2021, through 80% an executive order to comply with the country’s commitments 70% 63% under the WTO TFA. The NTFC establishment was supported by 60% 56% the WBG’s Trade Facilitation Program in Middle Income Countries. 50% ◾ Fewer women traders (52 percent) are aware of the 40% NTFC existence than their men counterparts (62 percent). 30% Awareness of the NTFC increases with firm size and years of 20% experience, with 53 percent of traders with 0–4 year of expe- 10% rience being aware of the NTFC compared to 59  percent 0% of traders with 15 years or more. Similarly, only 43 percent of Yes micro firms are aware of the NTFC, while 58 percent of large Trade Firms: Women Trade Firms: Men firms and 60 percent of medium-sized firms reporting being aware of the NTFC (see Figure 43). Customs Brokers: Women Customs Brokers: Men 35 Figure 45. Reasons for Not Joining an Association 100% 90% 80% 70% 60% 54% 50% 40% 40% 41% 37% 40% 33% 30% 23% 20% 15% 15% 11% 11% 11% 10% 10% 8% 7% 10% 0% Membership fees are I don’t need the networking I can access the needed My voice is heard even if I’m too high opportunities information elsewhere not a member Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Note: Traders can select more than one category, so totals may add to more than 100 percent. ◾ Fewer traders with disabilities reported being part of a ethnic minority groups. Eighty-five percent of customs brokers trade or industry associations compared to non-disabled that belong to ethnic group groups are members of business traders (see Figure 46). trade/industry associations, compared to 94 percent of customs brokers that do not belong to ethnic group groups. Similarly, while ◾ Fewer traders and customs brokers belonging to ethnic only 44 percent of traders that belong to ethnic group groups minority groups reported being members of associa­ are members, 59 percent of traders that do not belong to ethnic tions than traders and customs brokers that are not part of group groups are members of associations (see Figure 47). Figure 46. Traders with Disabilities that are Members of Figure 47. Respondents that Belong to Ethnic Minority Business Trade/Industry Associations Groups that are Members of Business Trade/Industry 100% Associations 90% 100% 94% 80% 90% 85% 70% 80% 60% 60% 70% 59% 50% 60% 40% 50% 44% 33% 30% 40% 20% 30% 10% 20% 0% 10% Trade Firms: Disabled Trade Firms: Non-Disabled 0% Trade Firms: Belonging to an Ethnic Minority Group Trade Firms: Not Belonging to an Ethnic Minority Group Customs Brokers: Belonging to an Ethnic Minority Group Customs Brokers: Not Belonging to an Ethnic Minority Group 36 Consistency in Implementation of Border Procedures Consultative Mechanisms The consistent application of border procedures provides pre- A mechanism whereby stakeholders are consulted on any dictability and certainty for businesses engaging in cross-border changes to official border processes and procedures can alle- trade. If border procedures are inconsistently implemented, viate misinformation regarding planned changes related to traders may face additional costs of complying with regula- their cross-border trade activities and improve compliance. tion and thereby contributing to increase the time and costs of Equally important is a consultation mechanism that takes into engaging in international trade. consideration the feedback provided by stakeholders before any changes are implemented. Article 2.2 of the WTO TFA ◾ The majority of traders (85 percent) and customs brokers calls regular consultations between border agencies, trad- (80 percent) believe that border processes and procedures ers, and other stakeholders. Article 2.1 states that stakehold- are consistently implemented by border officials, regardless ers must be given an opportunity and time to comment on of gender. Among the trade firms, 12 percent are unsure, and proposals for new or amendments to trade-related regula- three percent believe that the processes are not consistently tions and customs law. implemented. Among customs brokers, 11 percent are unsure and 10 percent believe there is inconsistency in the processes ◾ Overall, only 37 percent of traders reported that they (see Figure 48). are regularly consulted by the government on changes to trade processes and procedures and 21 percent report Figure 48. Perception that Border Process are that they are not consulted at all. About 37  percent of Consistently Implemented by Border Officials traders stated that the government consults them irregu- 100% larly on changes. About five percent of traders reported that 88% they do not know. Furthermore, slightly more women-led 90% 83% 80% 79% firms are consulted regularly than men-led businesses (see 80% Figure 49). 70% 60% ◾ A similar number of customs brokers and traders report 50% being regularly consulted by the government; however, 40% a higher percentage (30  percent) of customs brokers 30% than traders report not being consulted at all. For customs brokers, 38  percent are regularly consulted by the gov- 20% 14% 9% 10% 9% 11% 11% ernment, followed by 29 percent that are consulted irreg- 10% ularly. By gender, slightly more women customs brokers 3% 3% 0% reported being consulted regularly than men customs bro- Yes, most of the time No Not sure kers (40 percent vs 37 percent), and more men customs Trade Firms: Women Trade Firms: Men brokers are consulted irregularly than women customs brokers Customs Brokers: Women Customs Brokers: Men (32 percent vs 24 percent) (see Figure 49). Figure 49. Respondents are Regularly Consulted on Changes to Trade Process/Procedure 100% 90% 80% 70% 60% 50% 40% 38% 40% 35% 37% 40% 34% 32% 32% 27% 30% 24% 20% 22% 20% 7% 10% 3% 4% 4% 0% No, never No, not regularly Yes Don't know Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men 37 ◾ More large trade firms reported being consulted regu­ is not taken into consideration compared to their men larly (46 percent) relative to smaller firms. About 34 percent counterparts. About one-third of the trade firms report being of medium-sized firms reported being consulted regularly, fol- unsure whether their feedback is taken into consideration lowed by 38 percent of micro and 30 percent of small firms. (34  percent). Forty-seven percent of trade firms reported For firms that are consulted irregularly, small sized (47  per- having their feedback taken into consideration, and 19 percent cent) firms comprise the biggest share compared to medium stated their feedback is not considered. Over half of the customs (31 percent), large (27 percent), and micro (27 percent). Medium brokers (56 percent) stated that their feedback is taken into con- customs brokers are consulted more regularly (48  percent) sideration, 23 percent stated that the feedback is not taken into than large (45 percent), micro (38 percent), and small (37 per- consideration, and 21 percent were not sure. Analyzing the rel- cent) customs brokers. For customs brokers that are consulted evance of customs broker size shows among customs brokers, irregularly, micro-sized (33 percent) firms comprise the biggest larger firms are more likely to report their feedback to be taken share compared to medium (32 percent), small (20 percent), into consideration. Sixty-eight percent of large customs bro- and large (17 percent). kers, 66 percent of medium, 56 percent of micro, and 51 percent of small stated their feedback was considered (see Figure 51). ◾ The most common way traders and customs brokers are consulted is through other customs brokers or service pro­ Figure 51. Perception that Feedback is Taken into viders. Among the majority of women (74 percent) and men Consideration by Gender (70 percent) traders that report being consulted on changes to 100% official trade processes and procedures, it is through customs brokers or service providers. About one-quarter of firms are con- 90% sulted via government-managed public consultations (23 per- 80% cent for women and 25 percent for men-led firms) and trade/ 70% industry associations (20 percent for women and 22 percent for 60% 56% 55% men-led firms). The majority of women (60 percent) and men 49% 50% 46% (53 percent) customs brokers are consulted through other cus- 40% toms brokers or service providers. Other means of consultations 33% 35% for customs brokers include government-managed public con- 30% 22% 24% 22% 21% 21% sultations (33 percent for women customs brokers and 35 per- 20% 15% cent for men) and trade/industry associations (24 percent for 10% women customs brokers and 31 percent for men) (see Figure 50). 0% Yes No Not sure ◾ Among the traders that have been consulted, less than Trade Firms: Women Trade Firms: Men half reported that their feedback is taken into consider­ ation, with more women traders reporting their feedback Customs Brokers: Women Customs Brokers: Men Figure 50. Sources of Consultations on Changes to Official Trade Processes 100% 90% 80% 74% 70% 70% 60% 60% 53% 50% 40% 33% 35% 31% 30% 23% 25% 24% 20% 22% 20% 10% 0% General government managed public Through agents or service providers Through a trade/industry association consultations, notice-and-comment (customs brokers, freight forwarders, mechanism lawyers, etc.) Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men 38 Electronic Import/Export Declarations trade firms state that they can submit all required documents electronically for other border agencies, followed by 11 percent The ability to submit import and export declarations through who stated they submit all by paper. Further analysis of the data a Single Window, or other electronic system, reduces time to shows that 75 percent of women-led firms and 73 percent of comply with documentary requirements by functioning as a men-led firms state a combination of paper and electronic single point of entry/exit for all regulatory documentation for submission methods are needed for other border agencies. internationally traded goods. This facilitates trade and reduces For cus­ toms brokers, about 87  percent of men customs costs. Benefits to traders include faster clearance times, trans- brokers compared to 83 percent of women customs brokers parent and predictable processes, and less bureaucracy. report having to submit necessary documents both elec- Studies have shown that in the presence of Single Windows, tronically means and in hard copy to customs. Additionally, bilateral trade increases by about 37 percent.27 Article 10.4 of 92 percent of men customs brokers and 87 percent of women the WTO TFA stipulates that WTO Members shall endeavor to customs brokers reported that have to submit documents to establish or maintain a Single Window and to the extent possi- other agencies in a combination of electronically or by paper ble, use information technology to support the Single Window. (see Figures 53 and 54). ◾ The majority of traders and customs brokers, regardless Figure 53. Perception of How Forms and Document of gender, state they can submit all required documenta­ Must be Submitted to Customs tion electronically to all border agencies. Slightly more men traders (88 percent) than women traders (85 percent) reported 100% that all required documents can be submitted electronically. 90% 87% 84% 83% About 79 percent of customs brokers state that they can sub- 80% 78% mit all the required import/export documentation electronically, 70% and slightly more men customs brokers report being able to do 60% so than women customs brokers (see Figure 52). 50% 40% Figure 52. Perception that All Required Forms and 30% Documents Related to Import/Export Activities can be 20% 17% 12% 13% Submitted Electronically to All Border Agencies 10% 5% 4% 3% 8% 5% 100% 0% All electronically All by paper Some electronically 85% 88% 90% and some by paper 78% 79% 80% Trade Firms: Women Trade Firms: Men 70% Customs Brokers: Women Customs Brokers: Men 60% 50% 40% Figure 54. Perception of How Forms and Document 30% Must be Submitted to Other Border Agencies 20% 100% 92% 10% 90% 87% 0% 80% 75% 73% Trade Firms: Women Trade Firms: Men 70% Customs Brokers: Women Customs Brokers: Men 60% 50% 40% ◾ Among those that report they cannot submit all forms 30% electronically, there are mixed perceptions of whether it is 19% 20% at all possible to submit all documents electronically to all 12% 13% 13% 8% agencies. For documents being submitted to customs, most 10% 3% 5% 0% firms state that a combination of paper and electronic docu- 0% All electronically All by paper Some electronically ments is needed (78 percent of women-led firms and 84 per- and some by paper cent of men-led firms). Similarly, 74 percent of trade firms state Trade Firms: Women Trade Firms: Men a combination of electronic and paper documents are needed when submitting to other border agencies. Only 15 percent of Customs Brokers: Women Customs Brokers: Men 27 Chelala and Martínez-Zarzoso. 2021. “The impact of single windows on trade.” The World Economy Volume 43, Issue 10 (The World Economy) 2549–2573. 39 Pre-Arrival Processing of Goods Figure 55. Proportion of Respondents that Submit for Pre-Arrival Processing of Shipments Prior to Arrival at Port Electronic pre-arrival processing of goods prior to their arrival 100% expedites the release of goods for import. Border officials can 90% conduct risk assessment prior to the arrival at the border and 80% 74% consequently only need to physically inspect a proportion of 70% 67% goods in transit, thus saving time for traders and reducing 70% 64% bottlenecks. Article 7.1 of the WTO TFA on pre-arrival process- 60% ing states that traders should be allowed to submit import 50% documentation and other information required for the release 40% of import goods electronically (where appropriate) prior to the 27% arrival of the goods. 30% 21% 23% 23% 20% 10% 9% 10% ◾ More women than men traders submit their shipments 10% 3% to customs for pre-arrival processing; however, more men 0% than women customs brokers submit for pre-arrival pro­ Yes No Don't know cessing. About 23 percent of trade firms state they do not Trade Firms: Women Trade Firms: Men submit for pre-arrival processing before their goods arrive to Customs Brokers: Women Customs Brokers: Men port. While the majority of customs brokers submit for pre- arrival processing, about 23 percent state they do not submit for pre-arrival processing before arrival, similar to traders. ◾ Among those that submit for pre-arrival processing, the By trade firm size, more large firms (82 percent) submit for majority of traders and customs brokers typically do so pre-arrival processing of shipments than micro (71 percent), every time. Overall, 80 percent of interviewed trade firms report small (57 percent), or medium sized (75 percent) firms (see submitting for pre-arrival processing of shipments to customs Figure 55). prior to their arrival at port every time. This is followed by 16 per- cent who submit for pre-arrival processing more than half of ◾ Among traders that do not submit for pre-arrival process­ the time, three percent who submit for pre-arrival processing ing, more than half report that they do not believe doing so less than half the time, and three percent who do not know. save time or money. Among customs brokers, 33 percent of About 59 percent of customs brokers report submitting ship- men and 25 percent of women customs brokers do not submit ments to customs for pre-arrival processing every time prior to for pre-arrival processing because they believe it was not the shipments arrival at port, followed by 27 percent who submit allowed by customs, while 31 percent of women and 29 per- for pre-arrival processing more than half of the time, 12 percent cent of men customs brokers did not submit for pre-arrival who submit for pre-arrival processing less than half the time, processing because it provides no benefits (see Figure 56). and two percent who do not know (see Figure 57). Figure 56. Reasons for Not Submitting for Pre-Arrival Processing 100% 90% 80% 70% 61% 57% 60% 50% 40% 36% 33% 31% 31% 29% 30% 25% 20% 14% 16% 14% 9% 9% 8% 10% 7% 6% 0% Customs/border agencies I do not find any benefits It doesn’t save any time Instructions aren’t clear don’t allow it in pre-arrival processing or money Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men 40 Figure 57. Pre-Arrival Processing Frequency 100% 90% 79% 81% 80% 70% 60% 58% 60% 50% 40% 30% 30% 23% 20% 17% 15% 13% 12% 10% 4% 3% 3% 2% 2% 0% 0% Every time (100%) More than half the time (50-99%) Less than half the time (0-49%) Don't know Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Electronic Payments and Other Payments Figure 58. Perception that Official Fees Associated with Cross-Border Trade can be Paid Electronically In the absence of an electronic payments system, traders are in One Single Payment required to carry cash which may increase the risk of theft 100% and personal safety. Cash payments may also increase the 88% 88% 90% likelihood of corruption and the payment of “speed money”. 80% 79% 80% Clearance times for checks and money orders could tie up working capital, which may pose constraints on smaller firms. 70% Article 7.2 of the WTO TFA states that electronic payment of 60% duties, taxes, fees, and charges related to importation and 50% exportation should be allow to the extent practicable. 40% ◾ The majority of trade firms (88 percent) and customs 30% brokers (80 percent) state they can pay their fees elec­ 20% 16% 12% tronically in one single payment. There are no gender 7% 7% 9% 10% 5% 6% 4% differences between women-led and men-led trade firms 0% (88  percent for both). There was also very little difference Yes, all official fees can No Not sure between women-led (80 percent) and men-led (79 percent) be paid electronically customs brokers (see Figure 58). as a single payment Trade Firms: Women Trade Firms: Men ◾ Many women and men traders pay official fees and Customs Brokers: Women Customs Brokers: Men charges related to border processes and procedures by making payments directly to brokers/customs brokers or electronically to the government, while many customs brokers prefer to pay electronically to the government or through bank deposit. Slight gender differences exist with respect to how the trade firms pay their fees. About 63 percent of men-led and 56 percent of women-led firms pay directly to brokers whereas 60 percent of women and 63 percent of men-led firms pay electronically to the government. Other payment methods include bank deposits (19 percent women compared to 13 percent men) and cash (nine percent for both men and women). By gender, 81 percent of women customs brokers and 75 percent of men customs brokers pay electroni- cally to government, and 47 percent of men and 45 percent of women customs brokers pay via bank deposits (see Figure 59). 41 Figure 59. Methods of Paying Official Fees and Charges Related to Border Processes and Procedures by Gender 100% 90% 81% 80% 75% 70% 63% 63% 60% 60% 56% 50% 45% 47% 40% 30% 24% 20% 19% 20% 13% 9% 9% 9% 9% 10% 4% 2% 0% Directly to Electronically to the Cash (to Check/money order Bank deposit (for broker/agent government (internet government (to government entity) government entity) banking/digital wallet) entity) Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Note: Totals may add to more than 100 percent because respondent could choose multiple answers. ◾ Trade firms and customs brokers largely reported that than micro (five percent), small (two percent), or medium (five they do not pay unofficial fees or speed money to gov­ percent) sized firms (see Figure 60). ernment officials to facilitate processing of goods. 28 About 92  percent of traders and 81  percent of customs ◾ Of those that did pay speed money in the last year, around brokers report not paying unofficial fees or speed money to half paid speed money less than half the time. For customs government officials in the last year. Among customs bro- brokers, about 54  percent of women customs brokers and kers, 12 percent of men and nine percent of women customs 41 percent of men reported having paid less than half the time in brokers report paying unofficial fees. By trade firm size, more the past year, whereas 36 percent of men compared to 23 per- large firms (eight percent) reporting paying speed money cent of women customs brokers paid every time (see Figure 61). Figure 60. Proportion of Respondents that Have Paid Figure 61. Frequency of Making Speed Money Payments Speed Money to Government Officials in the Past Year to Government Officials in the Past Year to Facilitate Processing of Goods 100% 100% 90% 93% 91% 90% 80% 82%80% 80% 70% 63% 70% 60% 56% 54% 60% 50% 41% 50% 40% 36% 40% 30% 27% 21% 23% 23% 23% 30% 20% 17% 16% 20% 10% 12% 9% 9% 8% 10% 4% 4% 3% 5% 0% 0% Every time (100%) More than half the Less than half the Yes No Prefer not to say time (50–99%) time (0–49%) Trade Firms: Women Trade Firms: Men Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Customs Brokers: Women Customs Brokers: Men 28 Speed money is used interchangeably with unofficial fees. 42 ◾ Of those that paid unofficial fees in the past year, these ◾ Most traders (95 percent) and customs brokers (89 per­ were typically between 0–25 percent of the value of the cent) did not have to pay speed money to private entities goods being traded. Eighty-eight percent of women and in the past year to facilitate processing of goods (see 84 percent of men traders who paid unofficial fees reported Figure 63). paying fees that amount to 0–25 percent of the value of the goods, while 10 percent of women and 16 percent of men-led Figure 63. Proportion of Respondents that Paid Speed firms paid unofficial fees that constituted 26–50 percent of Money to Private Entities in the Past Year to Facilitate the goods. Men customs brokers report paying higher levels of Processing of Goods fees, with 77 percent of women customs brokers and 59 per- 100% 95% 94% cent of men customs brokers reporting paying speed money 90% 89% that amounted to 0–25  percent of the value of the goods, 90% 32 percent of men and 15 percent of women customs brokers 80% reported paying speed money worth 26–50  percent of the 70% good, and nine percent of men and eight percent of women 60% customs brokers reported that their speed money amounted 50% to 51–75 percent of the value of the goods. When assessing 40% by trade firm size, large firms have payments in the 0–25 per- cent range (100 percent of large firms, 85 percent of medium, 30% 63 percent for small, and 49 percent for micro), while smaller 20% firms have more payments in the 26–50 percent range (none 10% 8% 8% 2% 2% 2% 4% 3% 4% of large firms, eight percent of medium, 37 percent for small, 0% and 51 percent for micro) (see Figure 62). Yes No Prefer not to say Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Figure 62. Estimated Cost of Payments of Unofficial Fees to Government Officials as a Percentage of the Value of the Goods 100% 88% 90% 84% 77% 80% 70% 59% 60% 50% 40% 32% 30% 20% 16% 15% 10% 8% 9% 10% 2% 0% 0% 0–25% 26–50% 51–75% 76% or more Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men 43 Detention of Goods Figure 64. Proportion of Respondents that have had Detention of Goods Without Being Promptly Informed Customs has the power to search imports and exports and 100% exclude, detain and/or seize, and destroy counterfeit and 90% infringing products. Detention of good is a tool that signifies 81% 79% 82% 80% 74% the prevalence of random enforcement action. The effect of detainment can cause delays¸ raise costs, and uncertainty for 70% cross-border traders and create opportunities for extraction of 60% speed money to facilitate release of the goods. The best prac- 50% tice is for customs to promptly inform traders that goods have 40% been detained for inspection. 30% 23% 20% 14% 15% 13% ◾ More men customs brokers and slightly more men 10% 5% 5% 5% traders have had goods detained without being promptly 2% informed. Eighty-one percent of women and 79 percent of 0% Yes No Don't know men-led trade firms stated that their goods had never been detained, while 14 percent of women and 15 percent of men Trade Firms: Women Trade Firms: Men trade firms have had their goods detained. For customs bro- Customs Brokers: Women Customs Brokers: Men kers, 23 percent of men customs brokers report detention of goods without being promptly informed compared to only 13 percent of women customs brokers (see Figure 64). ◾ Many trade firms and customs brokers that have had ◾ Issues with customs declarations is the more common their goods detained reported that their goods are detained reason for goods to be detained (46  percent). Another less than half the time. However, about 38 percent of the main reason for goods being detained is problems with quar- men traders have had their goods detained every time com- antine (22 percent). About 10 percent of trade firms reported pared to 28 percent of women traders. Furthermore, 17 percent that no reason was given for detaining their goods. By gender, of women and 13 percent of men traders reported having their approximately 46 percent of women-led firms and 45 percent goods detained more than half the time. More women customs of men-led firms had goods detained because of customs brokers (28 percent) than men (14 percent) reported having declaration/classification/valuation issues while 21  percent their goods detained more than half the time (see Figure 65). of women-led and 24 percent of men-led firms had their Figure 65. Frequency of Detention Without Being Promptly Informed 100% 90% 80% 74% 67% 70% 60% 54% 48% 50% 38% 40% 28% 28% 30% 17% 20% 13% 14% 9% 10% 6% 1% 1% 0% 2% 0% Every time (100%) More than half the time Less than half the time Don't know (50–99%) (0–49%) Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Note: The percentages are out of those that have had their goods detained in the past and not of other whole sample population. 44 goods detained due to problems with quarantine. In com- ◾ In terms of goods being detained without being promptly parison, 16 percent of men customs brokers reported having informed, the top three ports at which this is occurring for their goods detained due to problems with quarantine. Other customs brokers are Batangas (25 percent), Manila North reasons given by respondents largely had to do with missing Harbor (21 percent), and Ninoy Aquino International Air­ papers and miscommunication between the shipping line and port (18 percent). For traders, the top three ports where supplier (see Figure 66). goods are being detained without being promptly informed are Ninoy Aquino International Airport (20 percent), Davao (16 percent), and Manila North Harbor (also 16 percent) (see Figure 67). Figure 66. Reason Normally Given for the Detention of Goods 23% 33% Other reason 19% 19% 12% 11% No reason given 9% 11% 12% 17% Problem with my importer registration license 3% 3% 16% 0% Problem with quarantine or other border agencies 24% 21% 37% Problem with customs 39% declaration/classification/valuation 45% 46% Customs Brokers: Men Customs Brokers: Women Trade Firms: Men Trade Firms: Women Figure 67. Proportion of Goods Detained Without Being Promptly Informed by Port Manila North Harbour / MANILA International 21% Container Terminal Port 16% 17% Manila South Harbour / Port of Manila 13% 10% Cebu / Port of Cebu 11% 18% Manila / Ninoy Aquino International Airport 20% Batangas/Luzon / Port of Batangas 25% 15% 5% Sasa/Davao / Port of Davao 16% Customs Brokers Trade Firms 45 Official Grievance Procedures stated no explanation for penalties is provided. For customs brokers, 11 percent of women and 13 percent of men cus- An official grievances mechanism is important to enable traders toms brokers stated official appeal procedures are unclear, to contest and appeal against border agencies’ decisions regard- and 11 percent of women and 13 percent of men customs ing a detained shipment or non-compliance. Article 4 of the brokers stated no explanation for penalties is provided (see WTO TFA aims to ensure that concerned parties have the right Figure 68). to administrative appeals or review, as well as judicial appeal or review, of administrative decisions issued by customs. ◾ About one-third of traders and customs brokers (30 and 34  percent respectively) have not used the formal ◾ Over half of the traders and customs brokers feel that complaint/grievance procedures, but of those who have, guidance and explanations on penalties and how to make an many stated that nothing changes. Slightly more women official appeal are clear and easy to access across govern­ traders and customs brokers reported that formal complaints ment entities. However, about 24 percent of women-led and and grievances leads to reform than their men counterparts. 25 percent of men-led trade firms reported not to know, six per- For the customs brokers, 31  percent also stated the formal cent of women-led and seven percent of men-led trade firms complaint/grievance procedures leads to no changes, of which stated official appeal procedures are unclear, and six per- 36 percent were men and 24 percent were women customs cent of women-led and five percent of men-led trade firms brokers (see Figure 69). Figure 68. Perception that Guidance and Explanations on Penalties and Official Appeals Processes are Clear and Easy to Access Across Government Entities 100% 90% 80% 70% 67% 63% 63% 64% 60% 50% 40% 30% 24% 25% 20% 14% 11% 13% 11% 13% 10% 6% 5% 6% 7% 7% 0% Yes No, explanation for penalties No, official appeal Don't know, I haven't had is not provided procedures are unclear to pay penalty or submit an appeal Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men 46 Figure 69. Perception of the Effectiveness of Formal Complaint/Grievance Procedures in Addressing Respondents’ Concerns 100% 90% 80% 70% 60% 50% 40% 36% 35% 34% 31% 32% 28% 27% 26% 28% 30% 25% 24% 21% 20% 11% 12% 11% 10% 5% 5% 4% 2% 2% 0% It leads to reforms Unofficial methods are Nothing changes I haven't used it Don't know or prefer faster (e.g., pay speed not to say money) Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Safety and Security at the Border29 Figure 70. Proportion of Respondents that Regularly Visit the Ports to Undertake Trade Processes Safety and security issues at the border can arise from unwel- and Procedures come attention, requests for favors, and other verbal or 100% physical conduct by both officials and non-officials. These 90% behaviors create and foster hostile or offensive environments 80% that may impact a trader’s ability or desire to undertake trade. 70% ◾ The majority of traders and customs brokers do not 60% visit the border regularly. Of those that do, more men visit 48% 50% 43% the border than women.30 Only 16 percent of trade firms, but 40% 46  percent of customs brokers report regularly going to the 30% border/economic zones to undertake trade processes and 20% 20% procedures for their business and clients. Only 20  percent of 13% men-led and 13 percent of women-led firms reported visiting the 10% border regularly. Customs brokers are much more likely to visit 0% the border with 48 percent of men and 43 percent of women Trade Firms: Women Trade Firms: Men customs brokers visiting the border regularly (see Figure 70). Customs Brokers: Women Customs Brokers: Men ◾ While a majority of customs brokers that go to the borders reported not to have experienced harassment at the ports, there are still instances of it occurring. Of those facing verbal harassment at the port followed by six percent who regularly go to the port, three percent of men traders of men and three percent of women customs brokers who report facing verbal harassment while two percent of men faced intimidation. In addition, one percent of men customs and women traders report facing intimidation. Six percent of brokers reported facing sexual harassment as well as theft men and three percent of women customs brokers reported while undertaking trade processes at the port (see Figure 71). 29 The survey responses were perception based and not verified against actual processes or policies in any way. The responses in this section do not confirm whether or not there are other gender barriers related to harassment in trade. 30 In the Philippines, it is not mandatory for traders/customs brokers to be physically present to have their goods released. 47 Figure 71. Types of Negative Behaviors Experienced at the Port, Freeport, or Economic Zone by Gender 100% 91% 91% 90% 90% 82% 80% 70% 60% 50% 40% 30% 20% 9% 10% 6% 6% 5% 6% 1% 3% 3% 2% 2% 3% 1% 1% 1% 1% 2% 3% 0% Verbal Intimidation Physical Sexual Theft Other type of No Prefer not to harassment or violence harassment harassment harassment say threats Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men ◾ Negative behavior experienced by traders and customs behavior came from transport operators, and 50 percent stated brokers was more commonly from customs and other port it came from customs and other port officials. For customs officials than other sources. Women traders and customs brokers, all women customs brokers stated negative behavior brokers also reported negative behavior from transport experienced came from customs and other port officials, while operators while none of the men respondents did. About 25 percent stated it also came from police, transport operators 71 percent of men traders stated the negative behavior expe- (25 percent), and port/warehouse operators (25 percent). For rienced came from customs and other port officials while men customs brokers, 86 percent stated the negative behavior another 29 percent stated it came from port/warehouse oper- came from customs and other port officials, while 29 percent ators. For women traders, 33  percent stated the negative came from the police (see Figure 72). Figure 72. Sources of Negative Behavior 100% 100% 90% 86% 80% 71% 70% 60% 50% 50% 40% 33% 29% 29% 30% 25% 25% 25% 20% 17% 10% 0% 0% 0% 0% 0% 0% Customs and other port Police Transport operators/truckers Port/warehouse operators officials Trade Firms: Women Trade Firms: Men Customs Brokers: Women Customs Brokers: Men Note: Respondents can select more than one category, so totals may add to more than 100 percent. 48 Central business district, Manila @ Marfil Graganza Aquino/Pexels Woman walking in the streets of Manila © Jay Acedilla/Pexels 3 Recommendations Based on Survey Results According to the World Economic Forum’s (WEF) 2021 Global TFA in October 2016 and has submitted its notifications across Gender Gap Report, the Philippines has closed 78.4 percent almost all of the category commitments. Full and effective of its overall gender gap, which is the second-best perfor- implementation of the WTO TFA should be prioritized, and mance in the East Asia and Pacific region.31,32 While the WEF border operations and processes should be reviewed further index may not necessarily relate to the cross-border trade to understand why traders and customs brokers reported delays processes and procedures examined in this report, the index for their goods to be cleared, taking steps to reduce the delays provides an indication of the gender parity (focused on economic while maintaining proper COVID-19 safety-related protocols. participation and opportunity, education attainment, health and survival, and political empowerment) in the Philippines. Looking Recommendation 2. Improve official gender- specifically at the gender parity in cross-border trade processes disaggregated collection of trade firm data and procedures in the Philippines, the survey responses did not always indicate a large gap between the women and men respondents. Nonetheless, the survey did identify some gen- The list of trade firms provided by the government for the eral challenges as well as specific challenges that dispropor- survey work needed significant manual updating (removal tionally impact women-led firms compared to men-led firms, of duplicates, incomplete or invalid contact details, etc.). which demonstrate that there is an opportunity for the gov- Up-to-date details on trade firms provides the government ernment to create policies and initiatives that are conducive with a better foundation for monitoring and understanding to enhancing the environment in which cross-border trade the country’s trade environment. The list also did not have firms and customs brokers operate. gender-specific information, and by introducing this data- point to the collection, the Philippines government would not The following recommendations can help address the most only be able to better target the needs of women-led trade pressing issues identified from this survey. Implementing these firms; it would also become one of the few countries in the recommendations may help to achieve the Magna Carta of world that is able to break down its firm-level cross-border Women’s objective of “eliminat[ing] discrimination through trader data by gender. the recognition, protection, fulfillment, and promotion of the rights of Filipino women, especially those belonging in the Recommendation 3. Promote the role of the National marginalized sectors of the society”, as well as its mandate that Trade Facilitation Committee and gender sensitivity “all government offices, including government-owned and in its action plan (WTO TFA Article 23 on Institutional controlled corporations and local government units to adopt Arrangements) gender mainstreaming as a strategy for implementing the law and attaining its objectives.” Overall, there is low awareness of the NTFC among traders and customs brokers, and slightly lower among women than Recommendation 1. Fully implement the WTO TFA by men. The low awareness could partly be due to the recent estab- streamlining processes and procedures, and enhancing lishment of the NTFC, but the committee has the momentum transparency and predictability now to increase its visibility and cement its role in the trading community. Accordingly, the NTFC’s action plan should include Many traders and customs brokers cite bureaucratic/ a detailed communications strategy, and both the action plan burdensome border process and procedures as a key obsta- and the communications strategy should specifically target cle for growing their businesses. The majority of traders and women traders and customs brokers. customs brokers businesses’ were impacted by the pandemic, reportedly largely because of delays for goods to be cleared Recommendation 4. Improve access to and under- and less demand for their products and services. The WTO standing of official border regulations and procedures TFA provides a unique opportunity to make cross-border among traders and customs brokers (WTO TFA measures trade easier, quicker, and less costly. The TFA contains pro- 1.1 on Publication, 1.2 on Information Available Through visions for expediting the movement, release and clearance of Internet) goods, including goods in transit. It also sets out measures for effective cooperation between customs and other appro- 1. Promote the use of the Philippine National Trade priate authorities on trade facilitation and customs compliance Repository (PNTR) and ensure information is user- issues. It further contains provisions for technical assistance friendly and fully up-do-date across border agen­ and capacity building in this area. The Philippines ratified the cies. Almost one-quarter of traders and more than 31 The Global Gender Gap Index looks at economic participation and opportunity, educational attainment, health and survival, and political empowerment. 32 World Economic Forum. 2021. Global Gender Gap Report 2021. Report, Cologny/ Geneva: World Economic Forum. 51 one-third of customs brokers report facing difficulties Recommendation 5. Promote pre-arrival processing of finding information on official regulations related to goods (WTO TFA measure 7.1 on Pre-Arrival Processing) border processes and procedures. With regard to infor- mation received from the government on border pro- Over one-third of traders and customs brokers do not submit cesses as a result of the COVID-19 pandemic, more for pre-arrival processing of goods or know if their goods are women than men traders reported a lack of clarity submitted for pre-arrival processing prior to arrival to port. with the information received. Traders and customs Among traders that do not submit for pre-arrival processing, brokers also reported a need to go to multiple sources more than half report that they do not believe doing so will to find information, and many use personal networks as save time or money. Among customs brokers, 33 percent of a primary source of information on official regulations. men and 25 percent of women customs brokers do not submit The lack of comprehensive information across agencies for pre-arrival processing because they believe it is not allowed was flagged as a particular challenge for traders and by customs, and about 30 percent of customs brokers do not customs brokers. Only 14 percent of customs brokers submit for pre-arrival processing because they do not think it and 17 percent of traders interviewed reported using the provides any benefits. Pre-arrival processing of goods allows Philippine National Trade Repository as their source of port authorities to conduct a risk assessment and process information, demonstrating an opportunity to enhance the declaration and release decision prior to the goods arriving the knowledge and usage of the platform. The govern- at the port of entry. If done efficiently, this saves times and ment should strengthen the institutional structure that costs as it allows the release decision to be communicated maintains and operates the PNTR to foster better coor- early so traders can continue their supply chain and logistics dination with all border agencies to ensure they regularly planning. It is recommended that border agencies scale up update information. It can, for example, issue joint pro- the ability to submit for the pre-arrival processing of goods. cedures among border agencies for updating the PNTR Proper communication to the trading community on the pro- and designate one focal point per agency responsible cess and its benefits must be ensured, and the NTFC can play for maintaining fully up-to-date information. a critical role in promoting it through its platform and different networks. 2. Ensure official legislation is easy to understand. The majority of traders and customs brokers find reg- Recommendation 6. Re-assess and better advertise ulations and processes easy to understand. More men port operating hours in consultation with traders and trade customs brokers, however, report that regulations customs brokers are easy to understand than their women counterparts, with 86 percent of men customs brokers stating official About half of traders and customs brokers believe that the regulations and processes are easy to understand com- port working hours are restrictive to their ability to trade. While pared with 81 percent for women customs brokers. For the Bureau of Customs sets regular working hours, the District example, a small proportion of traders believe the use of Collector are authorized to set work schedules locally from customs brokers is mandatory by law when it is not, sig- 7am–7pm, as necessary, for frontline services. This may result nifying there is misunderstanding in the official proce- in confusion over the operating hours as other entities (e.g., dures. Making sure the official regulations and processes banks, port authorities, quarantine) operate at different times. are written in clear and simple language is important, It is recommended that port opening hours across agencies particularly among women traders who, according to are better aligned and set in consultation with traders and the survey, face a greater disadvantage in accessing customs brokers to ensure all stakeholders are aware of the information. operating hours for the different ports and their business needs are carefully considered. 3. Offer targeted information sessions, workshops, and training session for women traders and cus­ Recommendation 7. Enhance government consulta- toms brokers. For example, slightly more men traders tions with the private sector (WTO TFA measures 2.1 and customs brokers than their women counterparts Opportunity to Comment and Information Before Entry believe that it is possible to submit all documentation Into Force, 2.2 on Consultations) electronically. Providing awareness trainings on issues such as where to find necessary information, how to Despite efforts by the government to engage with the pri- submit documents, how to pay fees, and other pro- vate sector, the survey responses highlighted a perception cesses can improve the ability of women to understand that there is a lack of regular consultations with trade firms the trade processes and procedures and thus motivate and customs brokers on changes to border processes and their participation in trade, improve the efficiency of procedures. The survey results also indicated that over half traders’ businesses, and improve traders’ compliance of traders do not feel their voices are heard when they are with border processes and procedures. consulted. Improving the frequency of which stakeholders are 52 consulted through actions, such as focus group discussions, administrative decisions deprives traders and customs open notice-and-comment periods, or feedback surveys, brokers of accessible remedies against erroneous appli- could help bolster private sector confidence in the govern - cation of laws and regulations. An appeals process ment’s efforts. While the BOC has set up Customs Cares that is used by traders and customs brokers also pro- (help desk) and a Customer Care Center (one stop shops) vides opportunities to clarify vague or unclear laws and to deal with complaints on transaction-level issues, there regulations. The government should review all fees, appears to be no mechanism for online public consultations charges, and penalties relating to cross-border trade (e.g., virtual townhalls, dedicated web page for online submis- and make sure they are fully and transparently publi- sion of complaints etc.) for the crafting of general policies cized. It should also strengthen the appeals mechanism and guidelines. The NTFC should promote the establishment both at the BOC and other border agencies by, among of formal consultations, and trade associations could be uti- others, issuing specific guidelines and timelines for such lized better to include the views of women, people with dis- appeals. It is essential to enhance communication around abilities, and ethnic minorities in particular. While consulting penalties to ensure that traders and customs brokers prior to the promulgation of new procedures and regulations understand when the penalties kick in, how the various is critical, a mechanism for regular consultations (regardless fees are applied, and recognize that the degree of impo- of changes) should be established. This could include the sitions are proportionate to the violation. establishment of a dedicated website for public consultations related to the regulations of the Customs Modernization and 2. Make formal complaint/grievance procedures Tariff Act and other similar trade laws. Enhanced visibility of more transparent and effective at resolving trader the opportunities to provide feedback (the “how and when”) issues. Only 28  percent of trade firms and 23  percent is critical and should be included in a NTFC communications of customs brokers believe that the formal complaint/ strategy. grievance procedures will lead to reforms. In order to continue to build and foster trust between the private Recommendation 8. Explore the reasons for detention sector and the government, it is paramount that the of goods (WTO TFA measure 5.2 on Detention) concerns and issues raised by traders through complaint procedures are addressed fully, transparently, and in an Of the small portion of traders that have had their goods efficient manner (e.g., following up on time, tracing) the detained, 38 percent of men traders and 28 percent of women status of the complaint and providing reliable informa- traders reported having their goods detained every time. Deten- tion to the referral partners. All complaints, follow-up tion is a serious issue because it signifies (i) the lack of actions, and contacts with complainants should be ompliance information and procedural preparedness on the recorded and information provided to the complainants. part of the trader, (ii) poor knowledge, training of frontline offi- cials, and/or (iii) the prevalence of random enforcement actions Recommendation 10. Promote the role of women in trade leading to exploitative behavior and extortive corruption. It is associations as well as women-oriented associations recommended that the government further explores why goods are held up and systematically handle the measures Trade industry associations play a significant role in the to address this. The World Customs Organization has issued Philippines. Over half of traders (59 percent) and most cus- guidance on detention of goods that should be reviewed. toms brokers (93 percent) reported being members of a busi- ness or trade/industry association, but with less women being Recommendation 9. Offer better guidance and appro- members than men. Traders also rely on these associations priate explanation on penalties, as well clarity on how and networks to obtain information on official regulations. It to make official appeals (WTO TFA measure 4 on Proce­ is therefore recommended to encourage the formation and dures for Appeal and Review) foster the development of women associations to organize workshops, provide support and mentoring programs, facil- 1. Although the majority of traders and customs bro- itate access to credit and to markets. kers perceive guidance and explanations on penalties and official appeals processes to be clear and easy to access across government entities, the results from the survey indicate that there are still some traders and customs brokers that believe there is a lack of guid- ance and explanation on penalties and how to make an official appeal. A lack of guidance for penalties and a clear appeals process may cause traders as well as customs brokers to make repeated mistakes in declar- ing their goods. In addition, the lack of clarity in appealing 53 Virginia Carriaga, owner of a variety store in Balaoan © UN Women/Norman Gorecho 4 Remaining Analytical Gaps The survey was limited to identifying constraints that existing identified would be based on assumptions, and in most cases, traders face. Exploring the reasons of non-engagement in deeper analysis would be needed to confirm exactly why there cross-border trade would require a deeper assessment of why are gaps between men and women in certain areas. This infor- non-trading women firms do not trade, which goes beyond mation could likely best be obtained through more in-depth the scope of this survey and likely also the WTO Trade Facili- surveys and research. tation Agreement. This survey is a companion piece to other research being The survey only focused on firm-level traders, leaving out a conducted by the World Bank and the Philippine government. group of traders often referred to as small-scale traders that The Bureau of Customs conducts an annual Time Release undertake trade that is unrecorded in official statistics and Study to measure the actual clearance times of containers is carried out by small businesses. In many countries, many being imported and exported from the main ports of the small-scale traders are women. Due to the limited scope of country. The survey provides the trading community’s view- this survey, the gaps between men and women firm-level point on the bottlenecks captured in the TRS and provides traders may or may not be representative for small-scale greater insights on the findings. In addition, the World Bank traders. conducts an internal assessment on the alignment of the dif- ferent trade regulations with the full implementation of the TFA. While the survey provided a wealth of new data on the gaps between men and women traders and customs brokers in The findings from these studies are being integrated by the the Philippines, it did not offer explanations to most of the National Trade Facilitation Committee in support of the reform gendered differences. Any explanation to the gaps that were roadmap to be produced for the country. 55 Shipping containers © Tom Fisk/Pexels Annex 1 Description of Sample and Methodology Traders Sample List Table C. A major challenge in conducting this survey was obtaining Final Field List (excluding ineligible firms) up-to-date data on the universe of cross-border traders in Category # of entries the Philippines. In an effort to create a survey field list, the # of importers (including branches) 9,441 World Bank Group received a list from the Bureau of Customs of all active cross-border trade firms registered in the Philip- # of exporters (including branches) 1,099 pines with more than two transactions, excluding individuals # of IMEX (including branches) 1,278 and state-owned enterprises. A preliminary list of 24,684 firms Total 11,818 (table A) was received and analyzed (table B) to produce a final field list for the survey (table C). The field list served as the survey population for traders (at the Table D. firm level),33 and it was broken down by its known characteris- tic of trade flow34 (table D). Breakdown of Population by Trade Flow Category % of Total Population Table A. # of importers (including branches) 79.9 # of exporters (including branches) 9.3 # of Firms in Field List # of IMEX (including branches) 10.8 Category # of entries Total 100 # of importers (including duplicates and branches) 18,439 # of exporters (including duplicates and branches) 1,919 # of IMEX (including duplicates and branches) 4,326 Sampling Methodology for Traders Total 24,684 To complete this study under time and resource limitations, a quota sampling methodology was utilized. Quota sampling is a Table B. non-probabilistic sampling method, since not every entity in the general population has a positive chance of being selected to Ineligible Firms to be Excluded be interviewed. Using this sampling procedure, the researcher Category # of entries selects characteristics of interest (i.e., gender, firm size, location) of the target population of a study. The characteristics are then # of duplicate importers (based on importer ID) 6,988 used to form quotas which should be targeted and their respec- # of importers in economic zones* 2,010 tive sample sizes to be achieved during interviews. # of duplicate exporters (based on exporter ID) 820 To set up the sample sizes of the set quotas for this study, # of exporters in economic zones* — the Cochran formula of calculating sample sizes for a simple # of duplicate IMEX removed (based on company ID) 1,272 random (probabilistic) sample was used — with a proportion # of IMEX in economic zone* 1,776 of variable of interest assumed at 50  percent- assuming maximum variability of the population, 95 percent confidence Total 12,866 level, and a five percent margin of error — in order to approx- *Firms located in economic zones were not eligible for the survey because there imate what would have worked in a probabilistic sample. Doing are a number of economic zones in the country that have special importation procedures and incentives. Importers operating within these zones will not have so provides a reasonable lower bound to establish the quota the same experience in dealing with customs than other importers. sizes. 33 The field list for trade firms was further reduced to 10,000 following further clean-up procedures. 34 Contact information, including city, was included but due to time limitations, the team could not further breakdown the cities into regions for further analysis. 57 The sample framework for traders was constructed to be rep- Constraints and Limitations resentative of the target population based on the known char- acteristic of trade flow by setting the quotas proportionally. The survey firm contracted to conduct the phone interviews Exporters were identified as the smaller subgroup representing with traders and customs brokers encountered challenges in 9.3 percent of the target population, and this subsample size fulfilling the set quotas for traders. Some of the challenges was used in the formula for a simple random sample to make an encountered were as follows; approximation on a reasonable sample size for this subgroup (n = 285). The quota for the importers and importers-exporters ◾ Most firms in the field lists may have had to close due to subgroups were then determined by scaling up from this value COVID-19 pandemic, while others had employees working (n = 2,445 and n = 330 respectively). The total quota is 3,060. from home to adhere to the guidelines set out to mitigate the spread of the pandemic, which resulted in office calls not being attended to. In order to ensure that a sufficient number of men and women were interviewed, despite the lack of gender information in the ◾ Many of the contact details may have been out of date, field list, a target 50:50 ratio of women: men were set within resulting into failed interviews. In addition, one could not tell each quota. The results were weighted given that gender was whether the firms were still operational to be part of the not proportionately allocated, eliminating the bias of the esti- survey list. mates by correcting for the over-sampled group. Ultimately, because the set proportional quotas were not met, Customs Brokers Sample List weights were assigned to the survey data to eliminate any biases in estimates produced. Table H outlines the number of In order to also sample customs brokers that help businesses trader interviews actually conducted and the associated weight with import and export procedures, the project team also assigned. Table I outlines the number of interviews conducted, requested a list of active, registered customs brokers. A list which met the target quota, along with the associated weights of 1,869 customs brokers was received, containing contact assigned because the 50:50 gender ratio was not assigned information and no gender information. proportionally to reflect the real population distribution. Sampling Methodology for Customs Brokers Table H. Traders To compute the overall sample size for the customs brokers, Weight the formula to calculate sample sizes for a simple random # Interviewed Assigned (probabilistic) sample was used — with an 1,869-population Women Men Women Men size, 95 percent confidence level, and a five percent margin A. By Gender (Main Strata) 1174 927 0.956 1.055 of error — in order to approximate what would have worked in a probabilistic sample. Doing so provided a reasonable lower B. Trade Flow bound to establish the overall sample (n = 319) for customs Importers 878 722 brokers. Due to a lack of information on the population within Exporters 167 126 the field list, further breakdown of the population into sub- Importer-Exporters 129 82 categories was not possible. Similar to the traders, however, in order to ensure that a suffi- Table I. Customs Brokers cient number of men and women were interviewed, despite the lack of gender information in the field list, a target 50:50 ratio Weight of women: men were set within the quota. The results were # Interviewed Assigned weighted given that gender was not proportionately allo- Women Men Women Men cated, eliminating the bias of the estimates by correcting for the over-sampled group. A. By Gender (Main Strata) 139 184 1.052 0.961 58 City street scene in Tondo, Manila © Danilo Pinzon/World Bank 59 Cargo loading on container ship © Tom Fisk/Pexels Annex 2 Port Profiles ◾ More customs brokers and traders utilize Manila North Harbor and Manila South Harbor than the other ports of entry (see Figure 73). Figure 73. Main Port (Air or Sea) Utilized by Traders and Customs Brokers Manila North Harbour / MANILA International 38% Container Terminal Port 29% 20% Manila South Harbour / Port of Manila 19% 12% Cebu / Port of Cebu 18% 5% Manila / Ninoy Aquino International Airport 9% 7% Batangas/Luzon / Port of Batangas 7% 6% Sasa/Davao / Port of Davao 5% 1% Cavite, Luzon / Sub-Port CEPZA Cavite 3% 2% Aparri, Luzon / Port of Aparri 2% 0.3% Clark Field Apt Luzon Island / Port Of Clark 2% 2% Cagayan de Oro, Mindanao / Port of Cagayan de Oro 1% Customs Brokers Trade Firms Note: Data labels over 1 percent have been rounded to the nearest whole number. 61 ◾ By gender, almost half of the women customs brokers use Manila North Harbor (47 percent) (see Figure 74). Figure 74. Main Ports Utilized by Gender Manila North Harbour / MANILA International Container 30% 47% Terminal Port 29% 28% 22% 17% Manila South Harbour / Port of Manila 20% 17% 15% 8% Cebu / Port of Cebu 14% 22% 7% 4% Sasa/Davao / Port of Davao 6% 5% 7% 9% Batangas/Luzon / Port of Batangas 7% 7% 5% 6% Manila / Ninoy Aquino International Airport 9% 8% 3% 1% Aparri, Luzon / Port of Aparri 2% 2% 1% 2% Cagayan de Oro, Mindanao / Port of Cagayan de Oro 1% 1% 1% Clark Field Apt Luzon Island / Port Of Clark 2% 2% 1% Cavite, Luzon / Sub-Port CEPZA Cavite 4% 3% Customs Brokers: Men Customs Brokers: Women Trade Firms: Men Trade Firms: Women 62 ◾ Regardless of firm size, the top port used is Manila North Harbor (see Figure 75). Figure 75. Main Ports Utilized by Firm Size (Customs Brokers) 41% Manila North Harbour / MANILA International 35% Container Termina Port 37% 36% 19% 24% Manila South Harbour / Port of Manila 19% 9% 4% 11% Batangas/Luzon / Port of Batangas 8% 18% 13% 11% Cebu / Port of Cebu 8% 0% 5% 4% Manila / Ninoy Aquino International Airport 8% 10% 0% 3% Cagayan de Oro, Mindanao / Port of Cagayan de Oro 0% 18% 1% 3% Aparri, Luzon / Port of Aparri 4% 10% 8% 2% Sasa/Davao / Port of Davao 4% 0% 0% 1% Clark Field Apt Luzon Island / Port Of Clark 0% 0% 1% 0% Cavite, Luzon / Sub-Port CEPZA Cavite 4% 0% Micro Small Medium Large 63 Woman in Agusan del Sur, Philippines © Dave Llorito/World Bank Bibliography 64 Albert, Jose Ramon G., and Jana Flor V. Vizmanos. 2017. “Do men and women in the Philippines have equal economic opportunities?” Philippine Institute for Development Studies Policy Notes No. 2017-09. 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