Businessmirror september 21, 2015

BusinessMirror

three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

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Why Talking abouT STraTegy

‘execuTion’ iS DangerouS

By Roger Martin

n business, it is sometimes said that “a mediocre strategy well executed will always trump a great strategy poorly executed.” It’s a good sound bite, but there is no objective basis by which a strategy can be declared “great” in the event that its results are bad. And even when the results are good, you can’t be sure that the strategy is.

At its most basic level, strategy is about making choices—and the choices need to be made from the top of the organization to the bottom. Managers (and many academics) distinguish between these choices, calling those made by senior managers “strategy” and those made lower down the pecking order “execution.” But all the choices are, in fact, strategic. In the real world, there is no meaningful distinction between strategy and execution.

It’s true that a strategy is only as good as the weakest link in the choice-making chain. If “well executed” simply means that choices lower down a strategy’s cascade of choices are pretty good, then a strategy whose choices at the top were mediocre could indeed trump a cascade that starts off with great decisions at the top but then meets a very poor one somewhere down the chain.

Special to the BusinessMirror

EBU Pacific Air, the Philippines’s largest domestic carrier, sees no problem in opening up the Ninoy Aquino International Airport (Naia) in Manila to airlines from member-states of the Association of Southeast Asian Nations (Asean).

Monday, September 21, 2015 E 1

But making a distinction between execution and strategy is still wrongheaded, because it diminishes the likelihood that the people low in the strategy cascade will actually make good choices.

When you call choices strategic, people pay more attention to them and think about them as true choices. Calling their decisions “execution,” by comparison, makes people feel that they don’t actually face or make choices, and so they think less about what they’re doing. since the strategy’s success is a function of the quality of the weakest choice, the “strategy” and “execution” distinction is dooming the strategies of those who subscribe to it.

Roger Martin is a professor at and former dean of the Rotman School of Management. He is the co-author of Getting Beyond Better and Playing to Win.

Consuming negaTive news Can make You Less effeCTive aT work

Your company culture shouldn’t just be great—it should be distinctive C

By Denise Lee Yohn

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ust as brand differentiation helps attract customers, culture differentiation helps attract the right employees. But while it’s popular to focus on corporate culture, not many companies have a truly distinctive culture. this is the equivalent to a marketing department saying, “We need to have a strong brand”—without articulating what that strength will rest on. so m a ny cor porate va lues statements include the same words: respect, trust, fun, integrity. Perhaps also diversity, work-life balance and community service. Free snacks and pickup

games are expected at every technology company; lactation rooms and on-site gyms are increasingly common on corporate campuses. this is all great, but if every company seems the same, how is a prospective employee to know which company is the best fit?

Leaders and human resources managers can borrow the principles of good marketing to create a culture that’s more distinctive— one that will attract and retain the right people. Leaders should start by identifying the specific cultural dynamics that will produce the results they desire, and then clearly articulate and actively cultivate them. By doing so, they create a powerful edge in the war

for talent —one that’s often more powerful than pay, and one that directly drives performance. People thrive in a culture that fits them, creating a self-reinforcing upward cycle. Companies with clearly defined cultures are also good for customers, because they allow employees to create distinctive customer experiences. the disciplines that inform brand differentiation in marketing can apply to culture differentiation as well: n Conduct competitive analysis to determine potential advantages and differentiating attributes— or better yet, identify white space where no one is playing. n use segmentation to identify the types of people who share the

company’s values and their distinguishing characteristics that can be used to target them. n Clearly articulate the value proposition—explain not just what the company does, but why it matters. n Don’t be afraid to use personality and take risks to stand out.

An unusual culture—even one that outsiders might criticize—is nothing to apologize for. In fact, it’s an advantage in attracting the right people.

Denise Lee Yohn is a brand-building expert, speaker and author of What Great Brands Do: the seven BrandBuilding Principles that separate the Best From the Rest.

A one-page exercise to get stress under control

By Allison Rimm

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HAvE so much to do that I live in constant fear of dropping the ball, failing to meet expectations, or worse.” this is a common refrain I hear from the executives and physicians I work with who are juggling the relentless demands of meeting professional, family, social and community obligations. too many frantic days can leave you feeling exhausted, unbalanced and unfulfilled.

When my to-do list overwhelms

me and life feels like it’s spinning out of control, I clean out a closet.

It makes me feel like I have command over at least one small corner of my existence. once that closet has been cleared of items that no longer serve a useful purpose and the essentials are carefully arranged, I breathe a sigh of relief.

Wouldn’t it be great if you could clear out clutter and create that kind of order in your whole life?

With that in mind, I devised a one-page document that allows you to view your short-, mediumand long-term goals all in one

place, along with your plans to achieve them.

Divide a page into three columns. on the left-hand side is your self-assessment. Here you can write down an inventory of your talents, interests, principles and purpose.

In the middle section, record your goals and priorities in all areas of your life, including family and relationships; career; community; and mind, body and spirit. this will enable you to visualize the balance you’d like to create along those important dimensions. In the right-hand

column, write down your strategies and the steps you’ll take to accomplish your goals.

As you fill out this document, remember t h i s c u stom-bu i lt “closet” is flexible. You’re free to change the time frames or relabel the shelves however you’d like to suit your needs. I recommend completing the closet and setting recurring appointments on your calendar to remind you to review them regularly. this way, you can keep your goals up to date and ensure that you’re on track to accomplish them.

By Shawn Achor & Michelle Gielan

onsuMInG negative news in the morning can affect the entire emotional trajectory of your day.

In a 2012 study with Martin seligman at the university of Pennsylvania, we found that just a few minutes of negative news has a significant effect on mood. this year we partnered w it h A r i a nna Hu f f i ng ton to examine the longer-term impact of news on well-being and performance. In this study, 110 participants were blindly placed into one of two conditions: one group watched three minutes of negative news stories before 10 a.m.; the second group watched three minutes of solutions-focused news—stories of resilience to build the belief that our behavior matters. one video included inner-city kids working hard to succeed in a school competition; another featured a 70 -year-old man who got his GED after failing the test dozens of times. the participants were e-mailed six hours later and asked to fill out a sur vey within two hours. this sur vey contained positive psycholog y metr ics to gauge things like stress and mood.

We found that indiv iduals who watched negative news in the morning had a whopping 27 percent greater likelihood of reporting their day as unhappy six to eight hours later compared to the positive condition.

In the next phase of our research, we’ll investigate the impact of negative news not just on mood but also on performance.

We believe that negative news influences how we approach work because it shows us a picture of life in which our behavior doesn’t matter. We see the market dropping 500 points or IsIs poised to attack, and we feel powerless to change those outcomes. In psychology, believing our behavior is irrelevant in the face of challenges is called “learned helplessness.” It has been connected with low performance and higher likelihood of depression. so how can you prime yourself for higher levels of performance and feel better without tuning out the news altogether?

Turn off news alerts: since the majority of new alerts are negative, try turning them off for one week. If there’s anything really important happening, you’ll hear about it regardless.

Cancel the noise: Practice meditation, or try turning off the radio for the first five minutes of your commute. When you do turn it on, don’t listen to angry talk radio, and mute at least one set of commercials per show.

Change the ratio: start your day with empowering, solutionsfocused news. seek out stories that are transformative—that empower people with potential solutions instead of just focusing on problems.

It’s possible to stay informed and remain positive and focused, but only if you control your news consumption instead of letting it control you.

MONDAY MORNING Shawn Achor is the new York times best-selling author of the Happiness Advantage and Before Happiness. Michelle Gielan is the best-selling author of Broadcasting Happiness.

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the pope on gays, divorce, climate Perspective BusinessMirror

ON GAYS, DIVORCE, CLIMATE

First of three parts

B N W | The Associated Press

ATICAN CITY—Pope Francis is expected to raise issues ranging from climate change to income inequality when he visits Cuba and the United States from September 19 to 27. Francis has launched an agenda of reform in the Vatican and in the global church, prioritizing different issues and counseling a more merciful message.

Here’s a primer on where the pope stands on key issues.

■ ABORTION: Francis has upheld church teaching opposing abortion and echoed his predecessors in saying human life is sacred and must be defended. But he has not emphasized the church’s position to the extent that his predecessors did, explaining that by now the church’s teaching on abortion is well-known and that priests “cannot be obsessed” with preaching only about “a disjointed multitude of doctrines.” In an indication of his mercy-over-morals position, he has established a new type of roving confessor, dubbed “missionaries of mercy,” who can absolve people of sins reserved to the Holy See, including abortion.

■ CAPITALISM: Francis has been accused by some US conservative commentators of Marxist sympathies given his frequent denunciations of economic systems that “idolize” money over people and the failings of the trickle-down economic theory. He has said while globalization has saved many people from poverty “it has condemned many others to die of hunger because it’s a selective economic system.” Francis has said he’s not preaching communism but the Gospel. Pope Benedict XVI voiced the exact same concerns, and in 2009 denounced the profit-at-allcost mentality blamed for bringing about the global financial meltdown and called for a new world financial order guided by ethics and the search for the common good.

■ CELIBACY: Francis said last year that celibacy for priests “is a rule of life, which I highly esteem and I believe is a gift for the church.” But he added, “since it is not a dogma of faith, the door is always open” to discussing the issue.

In the book On Heaven and Earth, the pope, when he was Cardinal Jorge Bergoglio, said he was in favor of maintaining celibacy “for the moment,” but noted the Eastern Rite Catholic church makes celibacy optional.

■ CONTRACEPTION: Francis has defended the church’s opposition to artificial contraception, which is enshrined in the 1968 encyclical Humanae Vitae. At the same time, he has said Catholics need not breed “like rabbits” and should instead practice “responsible parenthood” through “licit” methods.

The church endorses the Natural Family Planning method, which involves monitoring a woman’s cycle to avoid intercourse when she is ovulating. He has also said, though, that any good priest in confession must dispense mercy and take into account the individual needs of couples.

■ DEATH PENALTY: Francis has gone beyond his predecessors— and official Catholic Church teaching—in saying there is simply no justification for the death penalty today. He has said it is “inadmissible regardless of how serious the crime.” He has called life prison terms a “hidden death penalty” and solitary confinement a “form of torture”—and said both should be abolished. He famously washed the feet of female and Muslim inmates weeks after he was elected.

The United States is on the Top 10 list of countries that still execute

people, along with China, Iran, Iraq, Saudi Arabia, Somalia, Sudan and North Korea.

■ DIVORCE: Francis has divided the church by opening debate on whether divorced and civilly remarried Catholics can receive Communion. Church teaching holds that, without a church-issued annulment declaring the initial marriage invalid, these Catholics are committing adultery and thus cannot receive the sacrament. Francis has called for a more merciful approach, insisting that these Catholics are not excommunicated and must be welcomed into the church.

■ DRUGS: Francis has called drug addiction “evil” and condemned the legalization of recreational drugs as a flawed and failed experiment. He has said the drug problem cannot be solved by liberalizing laws, as has been done in some US states and many other countries, but by addressing the problem underlying addiction: social inequality and lack of opportunities for young people. Francis has years of personal experience ministering to addicts in the drug-laden slums of the Argentine capital.

■ EMERITUS POPE BENEDICT XVI: Francis has said having Benedict in the Vatican is like having a “wise grandfather” living at home, part of his belief that the elderly have a wealth of experience to offer younger generations. Francis often pays a courtesy visit to Benedict’s converted monastery on the other side of the Vatican gardens before leaving on a papal trip. Francis has coaxed Benedict out of the monastic retirement he envisaged for himself, urging him to take part in the public life of the church. Benedict has obliged, participating in events such as the joint canonizations of Sts. John Paul II and John XXIII. ■ ENVIRONMENT: Francis became the first pope ever to use scientific data in a major teaching document by calling global warming a largely man-made problem driven by overconsumption in his landmark encyclical Laudato Si (Praise Be). In the document, Francis denounced a “structurally perverse” world economic system and an unfettered pursuit of profit that exploits the poor and risks turning the Earth into an “immense pile of filth.” He is expected to speak about climate issues at the United Nations. While he has gotten a lot of attention for his encyclical, a long list of popes before him called for better care for God’s creation, including Pope Benedict XVI who was dubbed the “green pope” for his environmental initiatives.

■ GAYS: Francis famously uttered “Who am I to judge?” when asked in 2013 about a Vatican monsignor who purportedly had a gay lover in his past. Many took the comment to be a sweeping new opening by the church toward gays, as Francis has urged the church to be less judgmental and more merciful in welcoming saints and sinners alike. Asked about his position on homosexuality later, Francis stressed that when he said “Who am I to judge” he was merely repeating church teaching, and he responded with a question of his own: “When God looks at a gay person, does he endorse the existence

of this person with love, or reject and condemn this person? We must always consider the person.” But while he has met on several occasions with gays and even counseled a transgender couple, Francis hasn’t changed official church teaching that while gays should be treated with dignity and respect, homosexual acts are “intrinsically disordered.”

■ GAY MARRIAGE: As archbishop of Buenos Aires before becoming pope, he opposed efforts to legalize same-sex marriage and proposed, unsuccessfully, that the country approve civil unions instead. As pope, Francis has upheld church teaching that marriage is a union between man and woman, said children deserve to grow up with a father and mother and praised the “complementarity” of the male and female bodies. He has denounced what he calls the “ideological colonization” of the developing world—a reference to how ideas about contraception and gay rights are often imposed on poor nations as a condition for development aid.

■ IMMIGRATION: Francis has denounced the “globalization of indifference” that the world shows migrants and urged Europe and other countries to open their doors to refugees seeking better lives.

“We cannot allow the Mediterranean to become a vast cemetery!” he has told European lawmakers.

He has decried the “inhuman” conditions facing migrants crossing the US-Mexico border and encouraged frontier communities to not judge people by stereotypes but rather welcome migrants and work to end discrimination.

■ INDIGENOUS: Francis has apologized for the sins and “crimes” of the church against indigenous peoples during the colonial conquest of the Americas. But he has also held up as a model economic system the Jesuit-run missions in Paraguay that brought Christianity and European-style education and economic organization to the natives in the 17th and 18th centuries. Some American Indian and Native American groups have opposed Francis’s plan to canonize the 18th-century missionary, Junipero Serra, during his US trip. They accuse Serra of forced conversions, enslaving converts and helping wipe out indigenous populations.

The church considers Serra a great evangelizer who established 21 missions across California.

■ NUNS: Under Francis’s tenure, two sweeping Vatican investigations into US nuns that had elicited alarm among sisters and outrage among liberal Catholics ended amicably. The investigations were launched during Pope Benedict XVI’s pontificate amid concern by conservative US bishops and lay Catholics that the sisters, whose numbers have declined sharply in recent decades, had become too feminist and secular and weren’t emphasizing church teaching on abortion and homosexuality enough. The first probe, into the quality of life of American sisters, ended up praising the nuns for their selfless work caring for the poor. The second one, into the main umbrella group of US sisters, ended two years early with the Vatican

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SIGN painters move their scaffolding into position to continue painting a portrait of Pope Francis on the side of a New York City office building on August 28. The Pope visits the US beginning on September 22 with stops in Washington, D.C., New York and Philadelphia. AP/MARK LENNIHAN

declaring mission accomplished without any major changes.

■ RESIGNATION: Francis has said he expects his pontificate will be brief—maybe five years—and he has signaled he would follow in Pope Benedict’s footsteps and resign if he found he didn’t have the strength to carry on. He has praised Benedict for what he called his noble, humble and courageous gesture in retiring, and said the German pontiff set the precedent by “opening the door to retired popes.”

■ SEX ABUSE: Francis was initially accused by victims’ advocates of not “getting it” as far as clerical abuse was concerned. He has since created a commission of experts, including two survivors of abuse, to advise the Vatican on best practices and accepted the commission’s recommendation to create

a Vatican tribunal to prosecute bishops who failed to protect their flock from abusive priests. Francis has accepted the resignations of two US bishops accused of coverup, Archbishop John Nienstedt of Minneapolis and Bishop Robert Finn of Kansas City. However, even members of Francis’s abuse commission objected publicly when he appointed a Chilean bishop accused of covering up for the country’s most notorious pedophile.

■ VATICAN REFORM: Francis was elected on a mandate to restructure the outdated Vatican bureaucracy and reform the scandalmarred Vatican bank. He named nine cardinals from around the globe to advise him and created commissions of inquiry, involving outside experts and consultants, to propose a more efficient, transpar-

ent and accountable administration for the church and its assets.

Two years on, the biggest change has been the creation of a new Secretariat for the Economy to put the Holy See’s finances in order.

■ WOMEN: Francis has called for a greater role for women in the governance of the church, repeatedly praising the “feminine genius” and saying women simply look at the world differently and ask questions that “we men just don’t get.”

But he has reaffirmed the all-male priesthood and said a woman cannot head a major Vatican congregation, since that position is usually reserved for a cardinal. He has also elicited cringes with some tone-deaf comments, such as when he called new female members of the church’s most prestigious theological commission “strawberries on the cake.”

PERSPECTIVE

BusinessMirror

Lance Y. Gokongwei, president of Cebu Pacific, told the BusinessMirror that the flag carrier “fully supports the ratification of the Asean Open Skies multilateral agreement, which allows designated Asean carriers to operate unlimited flights between capital airports.”

He, likewise, pointed out: “To date, the Philippines is the only Asean state that has not ratified the ‘open skies’ agreement on capital cities.”

T he open-sk ies ag reement on capital cities is embodied in

Protocols 5 and 6 of the 2009 Multilateral Agreement on Air Services (MAAS), which gives Asean flag carriers unlimited third, fourth and fifth freedom rights to operate between capital cities (See, “Asean open skies will go on sans Manila OK,” in the BusinessMirror, September 18, 2015).

The Asean-Single Aviation Market (Asam) takes effect in December 2015, when Asean fully integrates into one economic community.

Continued on A2

Marrying a rapist, the 301-day rule for widows and other obsolete laws

By Jovee Marie N. dela Cruz

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ThursdaySeptember 18, 2014 Vol.21, 10 No. 40 Monday, 2015 Vol. 10 No. 347

By Ma. Stella F. Arnaldo

strategy ‘execution’ I

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Cebu Pacific Air pushes ‘open skies’ for Manila

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ountries enact laws to ensure that people would act responsibly, and that peace and order would reign within their borders. The Philippines alone has thousands of laws, many of which could already be considered antiquated.

Some laws and fiats that remain applicable in the Philippines have been enacted decades ago and under different circumstances. For instance, the country’s justice system continues to recognize the Revised Penal Code (RPC), which was enacted in 1932 and contains provisions that are no longer relevant today.

Currently, there are moves in the House of Representatives to amend several obsolete or outdated laws, many of which can be found in the RPC. Some laws are also biased against a particular sector of society. Lawmakers said amending or repealing these laws would make it easier to administer justice in the country.

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PESO exchange rates n US 46.5170

Continued on A2

SEPTEMBER INFLATION TO SETTLE AT 0.5%

By David Cagahastian

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nflation in September was seen, averaging lower than 1 percent, with strong indications the rate would settle even lower than the 0.6 percent posted in August to 0.5 percent instead, the country’s chief economist said.

Finance Undersecretary and chief economist Gil S. Beltran said the forecast inflation for September was seen at 0.5 percent, due to the continued easing in electricity rates and still lower oil prices.

“The slow rise in prices is tempered, and will continue to be tempered by tamed food-price changes.

Low prices of other basic commodities, such as fuels and transportation, continue to benefit from developments in the international market. Meanwhile, Meralco [Manila Electric Co.] electricity rates have been slashed for five months in a row. For September, rates are 17 percent less than that of last year,” Beltran’s economic bulletin said.

However, he said that the ongoing El Niño should be addressed to make sure the low-inflation forecast on food products is not undermined.

“Measures should also be in place to address the adverse effects the dry spell would inflict on agricultural production and hydroelectric- power generation. These may include repair and construction of irrigation systems and farm-to-market roads, early importation of rice, cloud seeding operations and water-conservation campaigns,” he said.

The 0.5-percent expected inflation rate for this month was attributed to the sharp drop in electricity and fuel prices, which was made possible by the big decrease in world crude prices from a year ago.

Meralco electricity charges in September averaged P8.87 per kilowatt-hour for a 300 kWh consumption, down from P10.72 per kWh in September 2014.

Crude-oil prices have been halved to only $43 per barrel in September this year, from $93.21 per barrel a year ago.

n japan 0.3876 n UK 72.4921 n HK 6.0025 n CHINA 7.3071 n singapore 33.2787 n australia 33.2359 n EU 53.1364 n SAUDI arabia 12.4082 Source: BSP (18 September 2015)

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Monday, September 21 , 2015

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Marrying a rapist, the 301-day rule for widows and other obsolete laws continued from A1

P10 packages

Hacking. . .

Continued from A12

“The key is that the both sides need to make concessions and the meeting is a venue for negotiation,” said Zhu Feng, a Peking University expert on China-US relations.

Before arriving in Washington on Friday, Xi is scheduled to attend business-related events in Seattle. After meeting Obama, he travels to New York to deliver a speech before the UN General Assembly the following Monday.

Cracks appearing

For Xi, who took over as president in 2013, the visit comes as his standing both at home and abroad has grown slightly more ambiguous.

Earlier this month, he presided over a massive military parade in Beijing that showcased the growing might of the People’s Liberation Army. However, while a few luminaries such as Russian President Vladimir Putin and UN Secretary-General Ban Kimoon attended, most leaders of the world’s major democracies stayed away, with the US sending only its Beijing ambassador.

The event was a hit among the Chinese public, but it was criticized abroad as threatening in appearance and unhelpful to reconciliation with World War II antagonist Japan.

The parade came on the heels of a Chinese stock-market plunge, eroding trade figures and an unexpected currency devaluation, prompting concerns about the state of the world’s second-largest economy.

The warehouse explosion in Tianjin also prompted questions about the strength of government institutions.

“The Communist Party regime’s reputation for competent economic management has taken a hit. Still, Xi appears to be firmly in control for now,” Princeton’s Friedberg said.

At home, Xi’s enduring strengths include his total authority over the military and security services and a growing cult of personality. That’s allowed him to pursue a thorough campaign against corruption, while pressing a wide-ranging crackdown on Western democratic concepts and nongovernmental, religious and other groups outside party control. Scores of human-rights lawyers have been questioned or detained.

Some have disappeared.

Overseas, it’s a different story. His visit comes as Obama is under growing pressure —from Congress, parts of the military and intelligence community—to take a tougher stance on China. AP

Families of overseas Filipino workers (OFWs) and returning Filipino tourists expressed dismay over the recent decision of the Bureau of Customs (BOC) to randomly open and tax balikbayan boxes and other packages.

Last month Melody Olga complained in a Facebook post about the new BOC policy governing balikbayan boxes. Olga revealed that she was asked by the BOC in the Philippine Post Office (PhilPost) to pay the P16,000 duty assessed on an imported Gucci bag.

According to her post, Olga said she went to PhilPost in Manila to claim the Gucci bag, which was sent to her by her London-based aunt. She said a BOC staff opened the package and saw no price tag on the Gucci bag.

Olga insisted that the package was worth only P5,000 but she was unable to show a receipt as proof.

The BOC is not entirely to blame for this debacle concerning balikbayan boxes and packages. Under the Tariff and Customs Code of 1978, only packages with a declared value of P10 or below sent through PhilPost are exempted from taxes.

Postmaster General and CEO Maria Josefina de la Cruz said the Tariff and Customs Code of the Philippines (TCCP) provision on tax exemption was no longer “realistic.”

“I am hoping that our legislators understand the need to amend this law on tax exemption because it’s already obsolete. It should be amended,” de la Cruz said.

For his part, House Committee on Ways and Means Chairman and Liberal Party Rep. Romero Quimbo of Marikina vowed to tackle the problem. Quimbo said Congress is looking at approving the proposed Customs Modernization and Tariff Act (CMTA) before the 16th Congress ends.

The CMTA will replace the TCCP, which was last amended in 1978. Quimbo said the CMTA will simplify BOC procedures for disposition, forfeiture and seizure of contraband goods; institute steeper penalties for illegal-shipping practices; raise the “unreasonable de minimis value of P10 today to P5,000” so that incoming goods with a value of P5,000 and less will

be exempt from duties.

As for taxing balikbayan boxes, former Samar representative and now Interior Secretary Mel Senen Sarmiento said it is “high time” to amend the 37-year-old TCCP or Presidential Decree (PD) 1464. Sarmiento said the threshold for tax exemption of P10,000 and below on balikbayan boxes sent

by OFWs is already “obsolete” and should no longer be applied until the TCCP has been amended.

“There’s nothing wrong with these inspections because that is part of the mandate of the BOC. However, our kababayan who send balikbayan boxes are also correct in their claim that threshold for taxable parcel, which is P10,000, is already too unrealistic and outdated,” he said.

“This is something that the BOC should consider for humanitarian grounds until Congress makes the necessary correction on our current tariff and customs laws,” Sarmiento added.

At present, Sarmiento said the international threshold for tax-free overseas parcel is $1,000 (P44,000) and below.

Since the threshold amount is the only provision in PD 1464 that should be amended, Sarmiento said Congress can consider passing a joint resolution to increase it to P50,000 to avoid the tedious legislative process.

‘Slap on the wrist’

In the Philippines, a husband who kills his wife after catching her having sex with another man could get what practically amounts to a slap on the wrist under the country’s criminal laws. In the event that the errant wife and her lover suffer serious physical injuries, the husband “shall be exempt from punishment,” according to Article 247 of the Revised Penal Code.

The Revised Penal Code provides that any legally married person who, having surprised his spouse in the act of committing sexual intercourse with another person, shall kill any of them or both of them in the act or immediately thereafter, or shall inflict upon them any serious physical injury, suffer the penalty of destierro, or being prohibited from entering within a radius of at least 25 kilo-

meters of a designated place.

“If he shall inflict upon them physical injuries of any other kind, he shall be exempt from punishment. These rules shall be applicable, under the same circumstances, to parents with respect to their daughters under eighteen years of age, and their seducer, while the daughters are living with their parents,” Article 247 read.

“Prision correccional, suspension and destierro: The duration of the penalties of prision correccional, suspension and destierro shall be from six months and one day to six years, except when suspension is imposed as an accessory penalty, in which case, its duration shall be that of the principal penalty,” it added.

Currently, there are moves in the House of Representatives to repeal Article 247.

Party-list Reps. Neri Colmenares and Carlos Isagani Zarate of Bayan Muna have filed a bill in 2013 calling for its repeal. Colmenares and Zarate of Bayan Muna said Article 247 is biased against women and shows the “discriminatory and feudal frame of mind” of the authors of law.

“Worse, the law even vaguely provides that it applies not only during sexual intercourse but also immediately after sexual intercourse, which practically allows for the killing even if it is no longer sure that a sexual act has indeed been committed,” they said in House Bill (HB) 1451.

HB 1451 noted that it is “incomprehensible” why the existing law is lenient on killing errant wives despite the fact that the death penalty has already been abolished.

“Instead of imprisonment, the killer is merely penalized with destierro or prohibited from entering a place designated by the court, surely a ‘nonpenalty’ considering the seriousness of the crime,” the bill read.

The bill also noted that the crimes of adultery and concubinage are punished only with imprisonment. Colmenares and Zarate said the proposed measure is not meant to encourage acts of infidelity but rather to discourage murder. “The bill seeks to discourage murder, especially the murder of a daughter by a parent or the murder of a spouse by the other.” To be continued

Cebu Pacific Air pushes ‘open skies’ for Manila Continued from A1

Gokongwei said once Asam is fully implemented, Cebu Pacific, a low-cost carrier (LCC), will look for ways to expand its intraAsean routes .“We look forward to operating under an Asean Single Aviation Market and exploring opportunities for Cebu Pacific to contribute to the country’s tourism and economic growth.”

He added that the airline “currently operates direct flights to 10 destinations in eight Asean countries, from the Philippines to Brunei Darussalam, Cambodia [Siem Reap], Indonesia [Bali and Jakarta], Malaysia [Kuala Lumpur and Kota Kinabalu], Singapore, Thailand and Vietnam [Hanoi and Saigon].”

Also, “through Cebu Pacific’s interline agreement with Tigerair Singapore, the former also offers flights to Myanmar [Yangon], via Singapore,” Gokongwei said.

Aviation expert Avelino Zapanta, earlier said LCCs like Cebu Pacific would be able to take advantage of Asam and even be able to use its ATR 72-600 turboprops to expand its Asean routes. Zapanta is author of the definitive reference on airline management in the Philippines, entitled 100 Years of Philippine Aviation 1909-2009.

Gokongwei said, though, the airline’s “recently ordered 16 ATR 72600s are intended to be utilized for interisland routes within the Philippines.” But he didn’t close the door on the possibility that it could use those planes to expand its Asean routes, as well. “We continue to study other possible routes, and study [their] viability given our route network expansion plans.”

Public and private tourism leaders in the country have been encouraging the Aquino administration to ratify the open-skies agreement to further boost foreign visitor arrivals not only in Asean, but in the Philippines, as well. The Philippines is targetting the arrival of 10 million foreign tourists in 2016. Asean projects its visitor arrivals to surge to over 160 million by 2025, from some 100 million in 2015.

The Civil Aeronautics Board has already recommended to President Aquino the approval of Protocols 5 and 6 of the MAAS, but he has yet

to sign the document ratifying the open-skies agreement. Transportation Secretary Joseph Emilio A. Abaya earlier said the government was keen on ratifying the agreement, but the Department of Foreign Affairs wants to modify the ratification document to clarify that the Naia would be open to foreign carriers, “subject to slots in Manila” (See “PHL delaying Asean open skies” in the BusinessMirror, September 17, 2015).

The Aquino administration had been arguing that congested runways and terminals at the Naia and lack of airport slots as some of the reasons to keep protecting Manila from Asean carriers. This stance is supported by pioneering flag carrier Philippine Airlines.

The government has agreed, though, to open up secondary cities to Asean carriers. This would include Clark, Cebu, Davao, Iloilo, Kalibo, to name a few.

Under an open-skies agreement, Zapanta said there would no longer be a need to convene the Philippine Air Consultation Panel, which negotiates air-service agreements with other countries. “No more [need to convene the panel]. We have already committed Kalibo, Iloilo, Bacolod, Puerto Princesa, etc. If foreign airlines want to fly to those cities, they are welcome.”

The Asean open-skies agreement guarantees third, fourth and fifth freedom rights to Asean carriers.

Third and fourth freedom rights allow carriers to fly from their home country to another foreign country, sans government approval.

Fifth freedom rights allows any carrier to fly between two foreign countries during flights originating or ending in said airline’s home country. The 10 members of the Asean are Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The Nation BusinessMirror

Editor: Dionisio L. Pelayo

Monday, September 21, 2015 A3

Lacierda says LP defectors opt to ignore Aquino’s popularity

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By Butch Fernandez

RESIDENTIAL Spokesman Edwin Lacierda pinned the decision of some politicians to leave the ruling party on the defector’s shoulders.

“Remember this is a party, this is a president whose popularity, whose goodwill continues to be strong until the very late stage of his administration. So given that, if you want to jump away from the party, it’s your call. Do you want to remain in the party? Well and good. But we make no judgment. You determine the circumstances, which you are confronted with, and good luck to your decision,” Lacierda said over the weekend.

Lacierda did not name the defectors but reports over the weekend said among the early “jumpers” to the camp of the vastly popular Sen. Grace Poe included Reps. Enrico Echiveri of Caloocan and Ben Evardone of Eastern Samar. Echiveri and Evardone were known to be staunch supporters of then-President Gloria Macapagal-Arroyo before becoming apologists of the Aquino administration.

“You know, it’s a judgment call for each and

every politician how he views himself in the light of the political policies that he’s involved in. If he’s a local politician, he will view himself in the light of factors and circumstances in his local political sphere,” according to Lacierda.

But he quickly added: “Let me just say this distinct matter: You’re looking at a president [Aquino] with eight months left in his administration. You’re also looking at a president whose approval numbers are stratospheric—64 [percent], that’s high—and you’re also looking at the potential impact of those high numbers, not only to the presidential standard-bearer or the vice presidential standard-bearer, but as well as to the local politicians running in their districts, in their provinces, in their cities, in their municipalities. You would have to consider that.”

The Palace official said they would not take it against the early defectors for showing their true colors this early and even wished them luck.

“It’s their call.”

Asked if the Palace was pleased to be rid its ranks of political chameleons who had shown their colors this early, Lacierda replied: “One makes a choice based on the factors that he is presented with, so bahala na po ang mga pulitiko kung ano sa tingin nila ang mas makakabuti sa kanila and we will not make a judgment out of it.”

Meanwhile, Poe’s citizenship remains a question and may hobble her bid to run for the country’s highest political post.

Three legal experts have agreed that the initial consensus of the Senate Electoral Tribunal to drop the residency issue decision has not put an end to the question whether Poe has met the residency requirement for a presidential bet under the Philippine Constitution.

“Later on, after Poe files her certificate of candidacy [COC] next month, the residency issue against her can once again be revived, no longer for her senatorial bid but for her presidential bid,” former University of the Philippines law dean Pacifico Agabin said.

Former University of the East law dean Amado Valdez said the residency issue, when applied to Poe’s presidential bid, should be treated separately and differently.

“It will be a new disqualification case once she files her COC for president,” he said.

With Joel R. San Juan and Recto Mercene

Economy

A4 Monday, September 21, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

PHL’s climate-change losses could reach P71 billion yearly–IFPRI

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By Cai U. Ordinario

he Philippines could incur some P71 billion in social and economic losses annually due to climate change, according to an expert from the International Food Policy Research Institute (IFPRI).

In a recent forum presentation, IFPRI’s Mark Rosegrant said the amount covers P45 billion in losses from increased malnutrition and P26 billion in economic losses.

“Climate change reduces crop productivity growth, increases food prices and reduces food security,” Rosegrant said.

Rosegrant said that due to climate change, some 1.4 million globally are expected to be hungry by 2030, or 9 percent higher than the projected figure under a no-climate change scenario.

If nothing is done to mitigate the ill effects of climate change, an additional 2.5 million worldwide are at risk of becoming hungry.

The IFPRI expert said these will be due to the increase in commodity prices that may reduce consumption and slash the output of the industrial

and service sectors.

National Economic and Development Authority (Neda) Director General and Economic Planning Secretary Arsenio M. Balisacan said climate change also brings stronger typhoons and other natural disasters that could increase the toll on the economy.

Balisacan said this has already been evident in the actual damage incurred by the agriculture sector due to typhoons, floods and droughts.

Citing an estimate made by the Department of Agriculture, he said the total damage to agricultural commodities, agricultural facilities and irrigation from 2000 to 2013 amounted to as much as P195 billion, P8.9 billion and P15.7 billion, respectively.

“The country’s targets for food

security, malnutrition, employment and poverty reduction, which are significant components of the Sustainable Development Goals, will be more difficult to achieve,” Balisacan said.

Rosegrant said that in order to adapt to climate change, the government must invest in increasing productivity not just in rice but in other crops.

He added that instead of supporting a rice self-sufficiency policy that costs the economy P40 billion a year, the government must support agricultural research and rural infrastructure.

The IFPRI expert also said the government must invest in real-time weather information systems; innovative methods to deliver agriculture extension services; and the adoption of new seed varieties. “[The] way forward to achieve food security under climate change— shift the focus of policy to productivity and efficiency-enhancing measures,” Rosegrant said. “[It] requires reorienting foodsecurity policy toward facilitating rather than inhibiting trade, competition and crop diversification to achieve inclusive access to food, while generating long-term productivity and income growth,” he added.

HORSE POWER A man relies on his horse to deliver sacks of corn from the farm to a market in Kapatagan, Digos City, in Davao del Sur. Many

farmers in the provinces, particularly in areas where roads remain in bad shape, continue to use horses as a mode of transportation. KEVIN DE LA CRUZ

‘Economic managers must find other ways to hike workers’ take-home pay’

By Jovee Marie N. dela Cruz

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fter the Palace rejected the measure lowering individual and corporate tax rates, the leadership of the House of Representatives on Sunday urged the country’s economic managers to continue to find solutions on how to increase the take-home pay of Filipino workers.

Speaker Feliciano Belmonte Jr. said President Aquino is not rejecting the idea of lowering individual and corporate tax rates.

“The President is not exactly rejecting it [the proposal to lower income and corporate taxes]. [However, we should admit that] it requires a lot of study. I think our income-tax system really needs a deeper study because the rates are based on values long ago, readjust them with the values that they had,” Belmonte said.

“The President was hardly challenged [by this proposal]. Ang sinasabi n'ya lang saan natin babawiin ang P30-billion government revenue lost, if he approves the proposal.

He’s [President Aquino] only saying show me where the money is gonna come from or how we will replace it and I'll give it,” he added.

Taking a cue from the Department of Finance (DOF), Malacañang rejected measures to adjust individual and corporate income-tax rates, saying the government is putting the country’s sustainability and credit

rating at risk by doing “piecemeal revenue-reducing legislation.”

The DOF has warned lawmakers that reducing individual income and corporate tax rates may cause the government to lose as much as P30 billion in revenues, or 1.5 percent of the country’s gross domestic product.

Despite the Palace’s disapproval of the tax-reform bill, Belmonte said he remains supportive of moves to lower individual and corporate tax rates.

“I am very wary of things that impact so much, but I also believe that the fixed-income group are paying more than they should, as I’ve said because of inflation, in effect, raised them to higher tax level than the real value of what they’re earning. That’s the big problem, perhaps the whole should be examined,” he said.

The Philippines has the second highest individual income-tax rate in the region at 32 percent, next to Thailand and Vietnam’s 35 percent, and the highest value-added tax at 12 percent, as the country’s current individual income-tax bracket has remained unchanged since 1997.

House Committee on Ways and Means Chairman and Liberal Party Rep. Romero Quimbo of Marikina, one of the authors of the tax-reform bill, said the measure is seeking the revision of income-taxes for compensation income earners, self-employed and professionals,

and corporations through simplification of tiers and rates, and indexation to inflation.

Under the House version of the measure, Quimbo said public and private workers earning P180,000 and below will be completely tax-exempt.

In the current setup, those earning P10,000 or less per month pay a 5-percent income tax.

Quimbo also said the bill also reduces the income-tax rate of those earning above P180,000 to P500,000 and above P500,000 to P10 million from the current 30 percent to 9 percent and 17 percent, respectively.

He said the highest rate at 30 percent will be paid by those earning P10 million annually.

Currently, those with yearly earnings of P500,000 and above pay 32-percent income tax.

Quimbo also said the proposed measure will also reduce the corporate income tax to 25 percent from the current 30 percent.

To recover revenues lost, he said, Congress would also approve revenue-generating measures such as bills raising excise tax on fuel, the fiscal incentives rationalization bill, the proposed Tax Incentives Management and Transparency Act, Customs Modernization and Tariff Act, Rationalization of the Mining Fiscal Regime, and a bill imposing specific tax on sodas and other sweetened beverages.

Thousands of Yolanda victims remain homeless–Neda

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early two years after Superty phoon Yolanda (international code name Haiyan) hit the Philippines, the National Economic and Development Authority (Neda) said the government has only completed 11,247 houses for those rendered homeless by the super typhoon.

Economic Planning Secretary and Neda Director General Arsenio M. Balisacan said 73,442 houses for Yolanda victims are still under construction.

Balisacan admitted that much still needs to be done with regard to resettling Yolanda victims. He said the Neda is still identifying bottlenecks in the implementation of Yolanda-related rehabilitation and reconstruction efforts.

“The rehabilitation of Yolanda-affected areas remains a core priority of the government. Neda, with all the implementing agencies and our partners from the private sector, civil society and the international development community, will continue to improve the execution of Yolanda programs,” Balisacan said.

As of August 15, the Neda said

a total of 717,404 families have received Emergency Shelter Assistance from the Department of Social Welfare and Development to repair damaged houses.

The Commission on Higher Education, it added, has rehabilitated 358 or nearly all, save for three, damaged public university buildings.

Further, Neda said around 82,772 people received emergency employment and integrated livelihood programs of the Department of Labor and Employment.

Around 78,840 people benefited from cash for work activities of the Department of Agriculture and 46,719 fishers have received fishing boats from the Bureau of Fisheries and Aquatic Resources.

The Neda also said some 31,130 people received livelihood and vocational trainings given by Technical Education and Skills Development Authority.

“Construction work on several resettlement sites in Tacloban City is in full swing. People are starting to occupy some resettlement sites. And a number of livelihood centers and facilities are helping

the Yolanda survivors get back on their feet through organic and sustainable farming, as well as aquaculture,” Balisacan said.

Balisacan said a number of small but high-impact projects were implemented in severa l Yolanda-hit communities.

This was done through the cooperation between national and local government agencies, as well as private, non-governmental and multilateral organizations.

Neda earlier estimated that Yolanda-related Official Development Assistance (ODA) projects amounted to $2.16 billion by the end of 2014.

The Neda said the bulk of the amount, or $1.88 billion, was composed by ODA loans for five projects and the remaining amount of $282.91 million were ODA grants covering 34 projects.

In April this year President Aquino, through Memorandum Order 79, transferred the coordination, monitoring, and evaluation of all disaster-related projects and activities to Neda from the Office of the Presidential Assistant for Rehabilitation and Recovery.

Cai U. Ordinario

Tourism&Entertainment BusinessMirror

A6 Monday, September 21, 2015 • Editor: Carla Mortel-Baricaua

Into the new heights Scenic view of Rizal province

tourism@businessmirror.com.ph

Trade and tourism fair showcases Bicol’s best

Camping with style Quitinday Green Hills in Bicol

Timberland Heights, said to be the country’s mountain biking capital

Learning the life cycle of a butterfly

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Story & photos by Ma. Glaiza Lee

he hill seemed to be an intimidating opponent. Heading toward San Mateo in the province of Rizal, we have been biking at a steady pace for almost an hour or so. Occasionally leaning forward as the hill continued to get steeper and gasping for air, we sat rock steady on the saddle while our legs kept working underneath us.

The trail in front of us was deceptively steep. They call it The Wall, a 2-kilometer long road with quite technical ascent. This was one of the obstacles any riders must conquer to reach the gates of Timberland Heights, an expansive 677-hectare development envisioned not just a residential property but as a recreational township destination.

Being a mountain-bike destination closest to Metro Manila with worldclass trails, the exclusive estate has opened its gates to people who are into mountain sports. Because it is a residential property, it used to be closed to the public. But recently, they are starting to open up some of their amenities for bikers and adventurers.

After registering and leaving our identification cards with the guards on duty at the gate, we were ready to conquer the International Mountain Bicycling Association-certified trails inside the Timberland Heights.

There were different trails inside the property: the Basic Trail, the Green Zone, the Blue Zone and the Black Diamond. If you are confused which one to take, you can ask the mountain bikers resting at the entrances and they would gladly point you to the right direction.

Most biking newbies, like us, often take the Basic Trail, with paved roads lined with pine trees. This picturesque trail somehow reminded us of Baguio.

The Green Zone, on the other hand, would help bikers sharpen their turning skills because of its narrow switchbacks. Intermediate and advanced riders often take the Blue Zone. This trail requires certain biking skills to finish it without any mishaps (like hitting a tree). Here, one would face bumps, rocks and small gaps on the road.

The Black Diamond is totally a different ballgame. The 5-km downhill trail is probably one of the most challenging biking trails in the country. We heard it has steep technical ascents, multiple switchbacks, bermed turns, fast descents, and fire roads. One also needs to cross streams and conquers rock gardens.

With its 25-km eco-trail and its 700-meter ascent, Timberland Height has rightfully earned the distinction as the “Mountain Biking Capital of the Philippines.” In recent years, the development of the real-estate property has been geared to creating a destination where nature beckons.

Metro’s last frontier

And we heeded the call of Mother Earth with a weekend getaway at The Leaf, a shared-investment hotel development of Timberland Heights. To stay at the newly built hotel, one needs to be a member, or know someone (most probably a member) who can endorse you. Lucky us, we were invited

Gold jewelcraft from Panganiban, Camarines Norte

Harvesting the organic vegetables at the Adventure Farm

to join the media tour inside the estate and we got a weekend to rejuvenate our tired soul and body.

Being here for some weekend relaxation felt like we were world away from the maddening chaos and stressful life in the metro. But in reality, we were just 9-km away from Batasang Pambansa in Quezon City. But the view here is simply stunning.

Hike up the Timberland Outlook Park, where a viewing deck will be built soon to enjoy the picturesque sights. It would take about 10 minutes to climb up the park. Yes, it can be a little strenuous but the views make it all worth the hike. At the summit, one would be rewarded with a panoramic 360-view of Manila’s skyline, including the Makati and Ortigas skycrappers, the Tagaytay ridge and Taal Lake, the majestic Mount Arayat and the plains of Central Luzon. On one side, there is the Sierra Madre mountain ranges.

To be one with nature and further enjoy the views, why not try pitching your tent and rough it up? Timberland Heights allows camping on its designated areas, as long as campers will coordinate with their office. If you’re not into biking, go off-road with fourwheel drive. Conquer the rough, unpaved trails inside the property. Let speed fuel your adrenaline.

Another area inside the property that is open to the public is The Adventure Farm, an interactive agroforestry facility that advocate nature’s preservation. A good educational destination for children, the farm features a farmhouse, a butterfly sanctuary, a fruit and vegetable greenhouse, herb farm, and fish lagoon, among others. Here, guests can learn about

organic farming, vermiculture and poultry. There are also fun lessons on pollination and different kinds of trees and plants.

At the end of the tour, you can harvest vegetables, such as eggplant, ampalaya and string beans at the Pinakbet Garden. Or pick some lettuce and kale at the Greenhouse. If you don’t want to get your hands dirty, you can buy organic vegetables and other products at the souvenir shop.

“The natural topography has pretty much determined the kind and intensity of the development we are introducing in the property. We have envisioned Timberland Heights not just a place to live but a destination that allows people to discover and experience life the extraordinary way while being cradled by nature’s own perfection,” Filinvest Land Inc. (FLI) Senior Vice President and Northeast cluster head Francis V. Ceballos said.

Because the township destination has been blessed with a rich, verdant topography, its exclusive villages and residential spaces, such as Mandalas, Banyan Ridge and Crest, The Ranch and soon-to-rise The Glades are all surrounded with vast open spaces and lush greens, giving residents and guests a gorgeous mountainscape.

“Timberland Heights allows you to breathe in its distinct comingling of nature, sports and lifestyle, a place where, as FLI claims, extraordinary comes alive,” Ceballos concluded.

After challenging the steep trail, one could just say that “It is only a hill, get over it.” But that hill kept us breathless, literally and figuratively.

As we pedaled, felt the cool breeze and enjoyed nature, the scenic sights made us realize that the life is right there.

Pinangat from Camalig, Albay

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he Bicolandia is putting its best foot forward as the OK Bikol Association Inc., and the regional offices of the Department of Trade and Industry (DTI) and the Department of Tourism (DOT), held the annual Orgullo Kan Bikol-Gayon Bicol Trade and Tourism Fair at the SM Megamall Megatrade Hall from October 8 to 11.

Now on its 19th year, it is the longest running regional trade and travel fair which brings to the fore the distinct products and tourist spots from the six provinces of Bicol, regarded as among the fastest-growing regions in the country.

DTI Regional Director Jocelyn Blanco said the expo is Bicolandia’s vehicle in developing homegrown entrepreneurs, especially the exhibitors who are first timers in the mainstream Manila market.

She noted that since its inception, the exhibit has generated more than P150 million in sales, which excludes other business transactions consummated after the event.

The expo was started by the DTI in 1996 as Orgullo Kan Bikol (Pride of Bicol) which initially displayed the cottage industries in the region. The DOT joined in 2001, thus, giving birth to the synergy of trade and tourism.

Blanco said that due to the support of the DTI, producers have developed world-class packaging for processed food products which have become more competitive in foreign markets. The DTI also supports mi-

Wicker accessories

cro, small and medium enterprises (MSMEs) in product development by tapping local designers to assist OK Bikol merchants in creating new designs for their handicrafts.

OKB-Gayon Bicol is also supported by the various provincial, city and municipal local government units which will display their One Town, One Product specialties.

Among the products showcased were abaca products, furniture, home furnishings, fashion accessories, processed food and beverages, health and wellness concoctions, pili-based candies and delicacies, and a wide assortment of novelty items.

Spicing up the four-day fair were performances by Bicolano artists and provincial cultural cultural groups.

DOT Regional Director Maria OngRavanilla said that the expo will also highlighted Bicol’s popular and emerging travel destinations and attractions.

To maximize the region’s trade and tourism potentials, the region has been clustered into the Almasor (Albay, Masbate and Sorsogon) Tourism Alliance, and the Camarines Norte-Camarines Sur-Catanduanes Tourism Link.

With Albay province as anchor destination, Bicol is also known for its culinary tourism program which highlights its regional spicy cuisine.

With its diverse natural attractions, tourism events, and accessibility, Bicol has posted the highest tourist arrivals among the regions in recent years.

Dusit International reveals plans for Philippine tourism market D usit International has disclosed its intent to increase its presence in the country, beginning with reaching out to the upscale, long-staying travel sector.

The hotelier has further expressed plans to tap the strong Meetings, Incentives, Conventions and Exhibitions (MICE) market in Asia.

“We are looking to grow in the other cities and destinations within the Philippines as we are positive about the country’s tourism outlook and potential. These new projects can leverage from our experience and established networks in the Philippines and in the

region,” said Ryan Chen, Dusit International director for Development Asia Pacific.

Focus on Davao

Currently, construction is under way for Dusit Thani Residences Davao, the first Dusit Thani Residences in Asia Pacific with the 168key full-service residences that is scheduled for turnover in 2018.

According to Chen, Davao was chosen because of the positive economic growth in the region, which bodes well for the international hospitality industry. He further commended

the company’s timely partnership with Filipino real-estate developer Torre Lorenzo.

“We have found a quality partner in Torre Lorenzo as this company is both experienced with the local real-estate market and is aligned with our vision for the Dusit brand in the Philippines,” Chen elaborated.

Other projects in Davao also in the works are the dusitD2 Hotel and Lubi Plantation Resort. dusitD2 Hotel is a 120-key hotel that will feature high-tech and modern conveniences coupled with a chic and playful design that matches Davao city’s

youthful vibe. Located adjacent to Dusit Thani Residences, this will be the first dusitD2 Hotel in the Philippines.

Meanwhile, Lubi Plantation Resort is a 37-hectare master planned resort community situated in a private island off the coast of Davao. Developers intend to position the resort as the country’s first internationally branded club membership.

Opportunities in MICE

On a regional scale, Dusit International is looking to strengthen its capability to cater

to the booming MICE industry in Asia.

“Industry reports show that Asia is fast becoming a preferred destination for MICE. With that, Dusit International is gearing up its services to meet this demand across our locations in Asia. We’re optimistic that our new properties in Davao will be able to participate in this trend. A key aspect of the industry in Davao is its robust domestic market and relatively untapped markets where opportunities for growth are abundant,” Chen shared.

Chen added that as incentive travel

is on the rise, new destinations are being preferred. Davao, given its burgeoning economic growth, is further touted to be a destination that will best cater to business travelers.

Thai meets Filipino

Chen observes, “The Philippines is similar to Thailand in many ways as the country offers a diversified myriad of attractions and demand generators. The Philippines has very warm and friendly people which are very valuable to the tourism industry.”

OurTime BusinessMirror

A8 Monday, September 21, 2015 • Editor: Efleda P. Campos

Elderly to make up more than 40% of six countries by 2050

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ILLENNIALS in Japan, South Korea, Greece, Italy, Portugal and Spain, beware.

By 2050, you will have entered or joined the ranks of the world’s superaging economies, where more than 40 percent of the population will likely be over 60, according to the latest United Nations figures.

That places a burden on upcoming generations paying for a welfare system strangling economies with sluggish growth and mounting debt. HelpAge International, a non-governmental organization based in New York, compiled a 2015 ranking of where the elderly have the best quality of life. The ratings are based on things like pension coverage, health facilities and access to public transport.

In the six countries aging most rapidly, only Japan—already the world’s oldest population—seems to be thinking of how to care for its elderly. Greece and South Korea are the worst places to live for people in their 60s.

The 28-page report highlights how the 2008 financial crisis has had a devastating impact on

the oldest generations, especially in hard-hit Southern Europe. Greece, which ranks behind Venezuela and South Africa, was forced to cut back on retirement checks in exchange for a bailout to stay in the euro. Lines of impoverished pensioners waiting outside shuttered banks became the human face of the crisis.

Japan, which came in eighth ahead of the US, “reflects progressive social policies,” the report said. “It prioritized health and education early and established universal health insurance.”

Over the next 35 years, the global tally of people over age 60 will grow to 2.1 billion, from 901 million in 2015, or 21.5 percent of the total global population from a current level of 12.3 percent, HelpAge said. Bloomberg News

SM employees share love with older people

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STREET CHESS Elderly men join their peers in playing chess on the sidewalk of Baguio City’s business district. Mau Victa

NGO to build 324 houses in Tacloban

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ACLOBAN CITY—A nongovernmental organization (NGO) will build P113.4-million permanent houses in the city’s northern village for families living in temporary shelters.

Operations Blessings (OB) Philippines will build 324 permanent shelters in Palanog village, tagged as the city’s safe zone.

The NGO broke the ground for the Community of Hope-Palanog community centers and market.

The new community consists of a health station, day-care room, administration office, youth activity and recreational area, and the livelihood training area.

The two adjoining centers will be used alternatively as evacuation

center during calamities.

According to Kim Pascual, the NGOs executive vice president and COO, the new houses can withstand an 8-magnitude earthquake and resistant to typhoons with up to 250 kilometers per hour, incorporating the bamboo cement technology of Hilti Foundation (Base Bahay).

The construction of first 20 houses is now ongoing. Some portion of the new community is devoted to parks for children and elderly, transport terminal and a farm.

A deep well will also be constructed to address safe-water needs of families in the area.

“We hope this will help the families go back to leading fruitful lives, even after the tragedy of Superty-

phoon Yolanda,” Pascual said.

“They have proven their resiliency, and so this project hopes to match their strength, both in its physical and organizational structure.”

The city government here expressed gratitude to the OB staff for helping improve the lives of severely hit families.

The Community of Hope-Palanog is the first permanent shelter project of Operation Blessing.

OB was able to build a temporary and transitional shelter communities, drilled wells, repair classrooms and schools, and provided livelihood projects to those affected families throughout the Yolanda-affected areas both in Samar and Leyte. PNA

TAYING true to their commitment to continuously improve their relationship with the communities they serve, as well as strengthening their skills toward community development, SM employees took part in a program that aimed to give love to the elderly.

Hundreds of employees from SM Supermalls, SM Lifestyle Entertainment Inc., SM Family Entertainment Inc. and SM Engineering Design Development Corp. participated in a one-day activity, dubbed as “Show More Care for the Elderly,” an employee-volunteerism program spearheaded by SM Supermalls, in all of its malls over the country.

On September 12 the employee-volunteers visited various senior-citizen centers in the local communities where their malls operate. They held various activities for the elderly, focusing on grooming and wellness.

Seniors were given free haircuts, pampering, toiletry kits, gifts and food packs. A short program and variety entertainment also took place. Employees held interactive activities, such as learning sessions on common health concerns of the elderly, consultation with nurses, exercises and games Aside from care for the elderly, SM’s employeevolunteerism program also has projects for children and the community.

Julie M. Miteria, vice president of SM Supermalls Human Resources Department, said SM’s volunteerism program is aimed at strengthening employees’ support to the communities where an SM Mall operates.

“Volunteerism is a way of life for our employees. Our employees actively take part in it, because it is part of our commitment to support the communities we serve.

We also want to foster a more positive working environment in our malls. In our own little way, we show that we are part of a bigger community and by so doing, we can make this world a better place to live in, because we are SM and SM cares,” Miteria said.

The employee-volunteerism program is in support of the CSR initiatives of SM Cares. SM Cares, a division of SM Foundation, is the corporate social responsibility arm of retail giant SM Prime Holdings Inc. Its advocacies include programs for persons with disabilities, children and youth, senior citizens, women and breast-feeding mothers, overseas Filipino workers, through the SM Global Pinoy and Environment and sustainability.

CdO City Council to probe reports of nonrelease of budget for senior citizens

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AGAYAN DE ORO CITY— The City Council here will e m b a r k o n a n i nq u i r y about allegations on the nonrelease of budget for the city’s senior citizens, Councilor Prexy Elipe said last Thursday.

Elipe, chairman of the committee on finance, ways and means, expressed alarm about the report of a colleague that the budget intended for the city’s senior citizens in 2013 and 2014 has not been released.

City Councilor Leon Gan made a special report during the regular session last Monday about the com-

plaints of the city’s senior citizens on the nonrelease of the budget intended for them.

“The senior citizens are complaining of alleged nonpayment of electric bills for some months and the need for the repair of comfort rooms and other facilities at the senior citizens’ office here,” Gan said.

Aside from the nonrelease of the budget for the operation and maintenance of the senior citizens’ office here, the senior citizens themselves complained that the city government did not pay their allowances in full, Gan said.

Gan, who expressed bewilder-

ment on the nonrelease of the budget assigned to the senior citizens, urged the local august body to take action on the plight of the senior citizens here.

Elipe said he could remember that the City Council has approved an increase of the senior citizens’ annual budget from about P6 million to P9 million this year, or an addition of P3 million.

He said the probe should be conducted not to find fault or cast doubts on anybody, but to determine whether the budget has been released and find out how the money is spent. PNA

‘LOLO’ PEDRING AND HIS BOAT

Lolo Pedring at 65 continues to paddle his bamboo raft along the shore of Santiago Cove in Ilocos Sur. MAU VICTA

news@businessmirror.com.ph

Abe fiscal policy backfires again as pension cuts hurt spending

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ORE than a year after a sales-tax increase tipped Japan into a recession, efforts to clamp down on soaring pension payments are suppressing a recovery in consumer spending.

The problem highlights how difficult it has been for Prime Minister Shinzo Abe to generate a sustained economic rebound for an economy with an aging and shrinking population—amid efforts to rein in a worldrecord debt load. Welfare payments are more and more important to people’s income, and pensions comprise about 80 percent of cash social-security benefits in Japan.

“Any increase in total pension payments may be limited to a gradual rise, relative to the increase in wages and prices,” said Jun Saito, senior research fellow at Japan Center for Economic Research in Tokyo and a former official at the Cabinet Office. “Seniors may have less leeway to spend. That could be one of the reasons private consumption is struggling to rise.”

The government is raising the age at which people become eligible for retirement income and also cut payments in real terms in fiscal 2013 through 2015 to stop overpayments.

The age of eligibility for pensions for workers at private companies will rise to 65 for men by 2026 and by 2031 for women. You already have to be that age to receive the basic national pension. This means less money—and less spending—for those who are looking to join the ranks of the almost 40 million people in Japan who live on retirement income.

Despite the potential impact on spending, pensioners find themselves in the sights of cost cutters because at least in terms of spending power, they were winners as Japan suffered through years and years of deflation.

Since 1999, benefits weren’t cut as much as prices fell, and now the government is bringing them back where they should be, and even slowing the rise more than that.

Under Abenomics, stock prices have soared and household assets hit a record, but many have missed out on this “wealth effect” as they don’t own securities. Bloomberg News

8,159 indigents in Pampanga receive PhilHealth cards

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ITY OF SAN FERNANDO, Pampanga—Some 8,159 indigents have received the proof of their coverage of socialized health care under Philippine Health Insurance (PhilHealth) and the city government’s new program, dubbed as CSFP’s Philhealth para sa Masa Program, at no cost to the beneficiaries.

City Mayor Edwin D. Santiago, who personally distributed the PhilHealth’s Membership Data Record, said that this is to ensure that the poorest of the poor can avail themselves of hospitalization and other health services.

“This is intended to help our constituents during times of emergencies, the mayor said, adding that the local government unit-operated health facilities are all PhilHealth accredited, which means offering zero-balance scheme.

The mayor told the beneficiaries to just show their PhilHealth member data record for them to avail themselves of the free hospitalization from government hospitals and facilities, as well as the city’s five rural health stations and four birthing stations that are always available to serve the public.

He said that with this benefit, the members have no more reasons not to seek medical assistance, as PhilHealth is ready to pay in full for their hospitalization.

He also noted that through the government’s effort, all senior citizens shall be covered by the National Health Insurance program.

“Once you reach 60 years of age, you are automatically a PhilHealth member,” Santiago said, as he disclosed that registered senior citizens of the city now reached more than 22,000. PNA

CHINA EASTERN AIRLINES CORPORATION LIMITED General Conditions of International Carriage for Passenger and Baggage President’s Statement

The General Conditions of International Carriage for Passenger and Baggage of China Eastern Airlines Corporation Limited is a contract of air carriage entered into by and between CEAIR and a Passenger carried

by CEAIR, specifying the rights and obligations of both parties and any liabilities assumed by either party arising from breach of the contract, and shall be binding upon CEAIR and the Passenger. CEAIR will offer all or part of the text of these Conditions at its ticket offices and on its booking websites, and earnestly urge Passengers to read these Conditions carefully and inquire about the meanings of the relevant contents before booking tickets.

Purchase of tickets shall be deemed as acceptance by Passengers of these Conditions and agreement by Passengers to perform the contract of carriage pursuant to these Conditions.

President of China Eastern Airlines Corporation Limited: Table of Content Article 1 Definitions ........................................................................................................................... 3 Article 2 Scope of Application .......................................................................................................... 9 Article 3 Tickets ................................................................................................................................. 10 Article 4 Fares, Taxes and Charges ................................................................................................ 15 Article 5 Reservations and Purchase of Tickets ............................................................................. 16 Article 6 Overbooking ....................................................................................................................... 21 Article 7 Check-in and Boarding ...................................................................................................... 21 Article 8 Baggage .............................................................................................................................. 24 Article 9 Flight Schedules, Delays and Cancellations .................................................................... 37 Article 10 Refusal to Transport and Limitation of Carriage .............................................................. 40 Article 11 Refunds .............................................................................................................................. 42 Article 12 Changes to Tickets ............................................................................................................ 47 Article 13 Passengers Services ........................................................................................................ 48 Article 14 Services Provided by Third Parties .................................................................................. 49 Article 15 Conduct Aboard Aircraft .................................................................................................... 50 Article 16 Administrative Formalities ................................................................................................. 51 Article 17 Successive Carriers .......................................................................................................... 52 Article 18 Liability for Damage ........................................................................................................... 53 Article 19 Claims and Actions ............................................................................................................ 57 Article 20 Effectiveness and Modification ......................................................................................... 59 Article 1 Definitions As used in these General Conditions of Carriage for International Passengers and Baggage, except as otherwise required or expressly defined herein, the following terms shall have the meanings ascribed below: 1.1 “Convention” means one kind of treaties which shall be concluded by and among three or more countries in respect of certain political or specific issues. As used herein, the term means the treaties on International Air Transport concluded by the People’s Republic of China, including but not limited to: 1.1.1 Convention for the Unification of Certain Rules for International Carriage by Air, signed at Montreal on May 28, 1999 (abbr. the Montreal Convention); 1.1.2 Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw on October 12, 1929 (abbr. the Warsaw Convention); 1.1.3 Protocol to Amend the Convention for the Unification of Certain Rules Relating to International Carriage

by Air signed at Warsaw on October 12, 1929, signed at The Hague on September 28, 1955 (abbr. The Hague Protocol) 1.1.4 Convention on Offences and Certain Other Acts Committed on Board Aircraft, signed at Tokyo, Japan on September 14, 1963 (abbr. the Tokyo Convention) 1.2 “International Air Transport” means carriage in which, according to the contract of carriage, the place of departure, the place of destination or any Agreed Stopping Place, whether or not there is a break in the transportation or a transfer, is not situated in the People’s Republic of China.

1.3 “Regional Route Air Transport” means carriage between or among certain places within the People’s Republic of China, including Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan.

1.4 “CEAIR” means the abbreviation of China Eastern Airlines Corporation Limited, with the English Code: MU. 1.5 “Carrier” means the air carrier issuing the ticket and all air carriers that carry or undertake to carry the Passenger and his/her Baggage thereunder.

1.6 “Issuing Carrier” means the airline showing its accounting code on flight coupons or value coupons of Electronic Tickets. The Issuing Carrier shall be the controlling and authorized entity of the Electronic Ticket sales.

1.7 “Marketing Carrier” means the airline showing its airline code on flight coupons or value coupons of Electronic Tickets. In case of a bilateral agreement (e.g. an airline code sharing agreement), the Marketing Carrier may not be the Operating Carrier.

1.8 “Operating Carrier” means the airline performing all or part of a contract of carriage.

1.9 “Regulation of CEAIR” means the provisions, other than these Conditions, governing carriage of Passengers and their Baggage published by CEAIR with immediate effect as of the issuance of Tickets, including the valid and applicable fares.

1.10 “CEAIR Passenger Sales Agent” means an enterprise authorized by and on behalf of CEAIR to sell the products of passenger carriage by air within the scope of authority.

1.11 “CEAIR Ground Services Agent” means an enterprise authorized by and on behalf of CEAIR to provide ground agent services of Passenger and Baggage carriage by air within the scope of authority.

1.12 “Passenger” means any person, except members of the crew, carried or to be carried in an aircraft with the consent of CEAIR. 1.13 “Child Passenger” means a Passenger who has reached his/her second birthday but not his/her 12th birthday as of the date of commencement of carriage by air.

1.14 “Infant Passenger” means a Passenger who has reached his/her 14 Days of age but not his/her second birthday as of the date of commencement of carriage by air.

1.15 “Group Passenger” means a Passenger in a group of 10 or more persons (or the minimum number of Passengers required in certain product), having the same itinerary, boarding dates and flights with the other Passengers in the group and paying the same Fares for Passengers in the group.

1.16 “Tariff” means fares, charges and/or any other applicable conditions published by CEAIR. 1.17 “Normal Fare” means the highest fare for adults published by CEAIR in local currency for a First Class, Business Class and Economy Class service.

1.18 “Special Fare” means the fare lower than a Normal Fare and subject to service limitations.

1.19 “Passenger Reservation Document” means the business document used for reservation and issuance of a Ticket by CEAIR or a CEAIR Passenger Sales Agent, which must be filled in by a Passenger before purchasing a Ticket.

1.20 “Reservation” means a reservation made for the seat and cabin class booked by a Passenger or the weight and size of Baggage.

1.21 “Valid Identification Certificates” means the documents produced by a Passenger when purchasing a Ticket and checking-in so as to prove his/her identification as prescribed by competent governmental authorities (e.g. a valid (visa) passport, travel document of a Hong Kong, Macau or Taiwan resident, seaman's book, etc.).

1.22 “Ticket” means the record of carriage sold or recognized by and vesting the carriage right with CEAIR or a CEAIR Passenger Sales Agent, including paper Tickets and Electronic Tickets.

1.23 “Interline Ticket” means a Ticket on the services of two or more flights.

1.24 “Conjunction Ticket” means a Ticket issued to a Passenger concurrently in conjunction with another Ticket and which together constitute a single contract of carriage.

1.25 “Fixed Ticket” means a Ticket with the flight and boarding date fixed and the seat confirmed.

1.26 “Open Ticket” means a Ticket with the flight and boarding date unfixed and the seat unconfirmed.

1.27 “Flight Coupon” means a portion of a paper Ticket that indicates two travel points between which the coupon is “good for carriage.”

1.28 “Passenger Coupon” means that portion of a paper Ticket marked with “Passenger Coupon”, which shall be retained by the Passenger at all times.

1.29 “Electronic Ticket” means a Ticket in electronic data sold by CEAIR or a CEAIR Passenger Sales Agent and is the electronic substitute for a paper Ticket.

1.30 “Air Services Electronic Ticket Itinerary” (hereinafter referred to as the “Itinerary”) means the document produced by CEAIR or a CEAIR Passenger Sales Agent to a Passenger as a payment voucher for purchase of an Electronic Ticket and a reminder of the Passenger’s itinerary.

1.31 “Day” means a calendar day rather than a working day, including all seven days of a week. The issuance day of a Ticket or the commencement day of a carriage shall not be counted in the case of determining duration of validity of a Ticket, and that the issuance day of notice shall not be counted in the case of notifying a Passenger.

1.32 “No-show” means a Passenger’s failure to get on board due to his/her failure to check-in within the prescribed time limit or to comply with the requirements for travel documents.

1.33 “Missing Flight” means a Passenger’s failure to board on the designated flight after the check-in at the place of departure or during the stay at the stopping place.

1.34 “Wrong Plane” means a Passenger’s boarding on a wrong aircraft rather than the one indicated on the Ticket.

1.35 “Misconnection” means a Passenger’s failure, due to the delay or cancellation of flight, to catch the connecting flight in which he/she holds a confirmed seat so as to continue the journey.

1.36 “Overbooking” means a selling of seats in excess of the maximum seating capacity on the flight.

1.37 “Volunteer of Denied Boarding” means a Passenger who has been ready to board but is willing, upon CEAIR’s request, to relinquish his/her seat in exchange for compensation according to the Regulation of CEAIR. 1.38 “Refusal to Transport” means a situation in which CEAIR refuses to transport a Passenger and his/her Baggage due to security or other reasons.

1.39 “Code Share Flight” means a flight operated by a Carrier on which CEAIR uses its airline code through agreement, or a flight on which several airlines use their flight numbers respectively.

1.40 “Baggage” means such articles and other personal property of a Passenger as are necessary or appropriate for wear, use, comfort or convenience in connection with his/her trip, including both Checked Baggage and Unchecked Baggage of the Passenger.

1.41 “Checked Baggage” means Baggage of which CEAIR takes custody and carriage and for which CEAIR has issued a Baggage Check.

1.42 “Unchecked Baggage” means Baggage other than Checked Baggage attended by the Passenger.

1.43 “Free Baggage Allowance” means the baggage allowance of a Passenger’s Checked Baggage free of charge according to the Regulation of CEAIR. 1.44 “Baggage Check” means the portion of a Ticket which is related to the baggage carriage for a Passenger.

1.45 “Identification/Claim Baggage” means the document issued to a Passenger by CEAIR solely for identification of Checked Baggage.

1.46 “Assistive Device for Individual with a Disability Passenger” means any piece of equipment that assists a Passenger with a disability to cope with the effects of his or her disability. Such devices are intended to assist a Passenger with a disability to hear, see, communicate, maneuver, or perform other functions of daily life, and may include medical devices and medications.

1.47 “Check-in Closes Time” means the latest time for a Passenger to check in as prescribed by CEAIR. 1.48 “Departure Time” means the time after which Passengers have boarded on the flight, Baggage and cargo have been loaded and all cabin doors have been shut down.

1.49 “Force Majeure” means the unforeseeable, unavoidable and insurmountable objective circumstance, the consequence of which still cannot be shunned after all reasonable measures have been taken.

1.50 “Voluntary Refund” means a refund made in the event the Passenger fails to finish the journey according to the contract of carriage due to his/her own reasons.

1.51 “Involuntary Refund” means a refund made in the event the Passenger fails to finish the journey according to the contract of carriage because of early departure, delay or cancellation of flight, or change in itinerary, or inability to provide previously confirmed seat of CEAIR. 1.52 “Change Fees” means fees paid by a Passenger who voluntarily changes his/her flight or boarding date subject to applicable conditions of the original Ticket and these Conditions.

1.53 “Damage” means loss caused to CEAIR by death of or bodily injury to a Passenger on board the aircraft or during the course of getting on or getting off the flight; or loss or any other damage caused during which all or part of property is taken custody by CEAIR or any theft of the property; or loss caused to Unchecked Baggage attended by a Passenger due to CEAIR or its agent’s fault.

1.54 “Special Drawing Rights (SDRs)” mean a kind of reserve assets and unit of account defined by the International Monetary Fund (IMF), representing a claim to currency allocated by IMF to IMF member countries for which they may be exchanged. As a kind of unit of account rather than a currency, SDRs must be exchanged into a currency before use, and cannot be used directly for payments under trade or non-trade items. SDRs are supplementary to the ordinary drawing rights defined by IMF. 1.55 “Stopover” means a deliberate interruption of a journey by the Passenger at a point between the place of departure and the place of destination, which has been agreed to in advance by CEAIR. 1.56 “Agreed Stopping Place” means the place, except the place of departure and the place of destination, set forth in the Ticket or shown on CEAIR’s timetables as a scheduled stopping place on the Passenger’s route.

1.57 “Minimum Connecting Time” means the minimum time published by CEAIR for a Passenger to stay at the stopping airport to process formalities for interline carriage or transfer of flights.

Article 2 Scope of Application 2.1 General Principles 2.1.1 Except for those specified in Articles 2.1.2, 2.2, 2.4 and 2.5, these Conditions apply to all International Air Transport and Regional Route Air Transport of Passengers and Baggage performed by CEAIR aircrafts for remuneration.

2.1.2 These Conditions also apply to carriage under gratuitous fares and Special Fares, unless otherwise prescribed for the carriage conditions, contracts and tickets of gratuitous fares and Special Fares. In case of any discrepancy, special conditions and Tariff rules shall prevail.

2.2 Chartered Aircrafts

In the case of carriage provided by the CEAIR contract of chartered aircrafts, these Conditions only apply to the extent where they are covered in the contract of chartered aircrafts and the provisions on the ticket of chartered aircrafts.

2.3 Code Share

In accordance with code share arrangements between CEAIR and other Carriers, these Conditions only apply to carriage of Code Share Flights operated by CEAIR. 2.4 Rules of Effectiveness

The General Conditions of International Carriages for Passenger and Baggage of China Eastern Airlines Corporation Limited and the Tariff rules of CEAIR shall come into force upon the issuance of all the Tickets. If such issuance time has not been determined, these Conditions and Tariff rules of CEAIR shall come into force as of the commencement date of carriage indicated in the Passenger Coupon of the first Ticket (Electronic Ticket).

2.5 Overriding Law

Under the circumstance that any provision hereunder is contrary to any applicable laws, administrative regulations, rules and orders of a nation, except for those inconsistent provisions, the validity of the remaining provisions hereunder shall not be affected.

Article 3 Tickets 3.1 General Provisions 3.1.1 The Ticket constitutes prima facie evidence of the contract of carriage between CEAIR and the Passenger.

3.1.2 CEAIR or CEAIR Passenger Sales Agents shall fulfill the obligation to issue a Ticket to a Passenger only after the Passenger has paid the fare in full as required by CEAIR. 3.1.3 CEAIR will only provide carriage service to the Passenger named on the Ticket and may request the Passenger to produce his/her Valid Identification Certificates (see Article 1.21 herein).

3.1.4 The Ticket is non-assignable.

3.1.5 If a Passenger travelling on a Paper Ticket fails to produce a valid Ticket issued pursuant to the Regulation of CEAIR containing the Flight Coupon for the intended flight and all other unused Flight Coupons and Passenger Coupons, such Passenger has no right to request for boarding. A Passenger who produces an incomplete Ticket or a Ticket that has been changed by a person other than CEAIR or CEAIR Passenger Sales Agents also has no right to request for boarding.

3.1.6 A Passenger travelling on an Electronic Ticket shall produce his/her Valid Identification Certificates used for purchase of the Ticket. If the electronic Flight Coupon is displayed as valid, CEAIR will provide carriage; if the Electronic Ticket has been converted into a Paper Ticket, CEAIR will provide carriage to the Passenger only after the Passenger produces the valid and complete Paper Ticket.

3.1.7 The Flight Coupons of the Ticket shall be used in sequence as specified on the Ticket, starting from the place of departure. Failure to use the Flight Coupons in the aforesaid sequence will result in the refusal of CEAIR to provide carriage.

3.1.8 The flight segments and the class of service shall be indicated on each Flight Coupon and shall be accepted by CEAIR for carriage after the seat and the commencement date of the flight are confirmed. In the case of Flight Coupons with seats unconfirmed, CEAIR will make Reservations for the Passengers, upon their applications, subject to the applicable conditions and fares of the Tickets held by the Passengers and the availability of seat capacity on the flight.

3.1.9 The Passenger shall finish all the itineraries indicated on the Ticket within the duration of validity of the Ticket.

3.1.10 In the case of an international and regional Interline Ticket containing a domestic flight segment, the Flight Coupon of the domestic flight segment can be used directly without being converted to a domestic Ticket.

3.1.11 A Ticket shall be invalid in the event of any alteration made by any person other than CEAIR, CEAIR Passenger Sales Agents or CEAIR Ground Services Agents.

3.2 Duration of Validity of Tickets 3.2.1 A Ticket shall be valid for a one-year period, except for Special Fare Tickets, from the commencement date of the first carriage, or from the issuance date of the Ticket if the Ticket has not been used.

3.2.2 Duration of validity of Special Fare Tickets shall be subject to the applicable conditions of such Special Fare as prescribed by CEAIR. 3.2.3 Duration of validity of Tickets shall begin from the zero hour of the day immediately after the commencement of travel or issuance of a Ticket to the zero hour of the day immediately after expiry of the duration of validity.

3.3 Extension of Duration of Validity 3.3.1 If a Passenger fails to travel within the duration of validity of the Ticket due to any of the following reasons, the duration of validity of the Ticket shall be extended to a soonest date in which the seats of the same class as purchased by the Passenger are available in a CEAIR flight: 3.3.1.1 CEAIR cancels the flight on which a Passenger holds a confirmed seat; 3.3.1.2 CEAIR cancels an Agreed Stopping Place, which is the place of departure, place of destination or a Stopover point of a Passenger; 3.3.1.3 CEAIR fails to properly operate a flight according to schedule; 3.3.1.4 CEAIR causes a Passenger’s failure to catch a connecting flight; 3.3.1.5 CEAIR fails to provide a Passenger with the seat confirmed in advance.

3.3.2 If a Passenger, who has commenced his/her travel, fails to continue to travel within the duration of

validity of the Ticket by reason of illness, such Passenger shall provide a certificate of diagnosis issued by a medical institution (i.e. a domestic Grade III Class A hospital or above or a foreign hospital other than clinics or medical centers).

3.3.2.1 CEAIR may extend the duration of validity of the Ticket held by such Passenger to the date when the Passenger becomes fit to travel according to the certificate of diagnosis issued by doctors or to a soonest date after the aforesaid date in which the seats of the same class as purchased by the Passenger are available in a CEAIR flight. If a Ticket contains several Flight Coupons or the Flight Coupon of an Electronic Ticket combines one or more Stopover points, the duration of validity of such Ticket can be extended for no more than ninety (90) Days as of the date when the Passenger becomes fit to travel as indicated on the certificate of diagnosis issued by doctors.

3.3.2.2 CEAIR may extend the Tickets of the Passengers (2 persons at most) accompanying the sick Passenger to the same duration of validity as the sick Passenger.

3.3.3 In the event of death of any Passenger en route, the duration of validity of the Tickets held by the Passengers accompanying the defunct Passenger can be extended provided that any such extension shall be made upon receipt of the death certificate and the extended duration of validity of the Ticket shall be no longer than forty-five (45) Days from the date of the Passenger’s death.

3.3.4 If a Passenger is required to change any content of the carriage owing to a Force Majeure event, CEAIR will make every effort within a reasonable scope to carry the Passenger to the Stopover point or the place of destination indicated on the original Ticket without making any readjustment to the fare.

3.4 Loss and Mutilation of Paper Ticket 3.4.1 In the case of loss or mutilation of a Ticket or any part thereof held by a Passenger, such Passenger shall apply for reporting the loss of the Ticket to CEAIR in writing within the duration of validity of the Ticket.

3.4.2 When reporting the loss of the Ticket, the Passenger is required to produce his/her Valid Identification Certificates and a photocopy or fax copy of the issuer coupon of the lost Ticket. If the Passenger entrusts any other person for application, the applicant is required to produce his/her valid identification certificates together with the Valid Identification Certificates of the Passenger and any other materials and evidence as required by CEAIR. 3.4.3 CEAIR is not liable for any loss caused by any other person’s misuse or refund without permission of the Ticket before the application for reporting the loss of the Ticket.

3.4.4 In the case of loss of a Ticket, the Passenger’s application for reissuing a new Ticket shall be submitted within three (3) working days before the scheduled departure time of his/her flight, and any materials and evidence as specified in these Conditions shall be concurrently provided to CEAIR. After verifying the materials and evidence, CEAIR may reissue a new Ticket for the scheduled flight and charge fees for the reissuance of the Ticket if the following conditions are satisfied: 3.4.4.1 The Passenger shall fill in a Reissuance/Refund Application Form for Lost Ticket of CEAIR; 3.4.4.2 The Passenger shall declare and agree to indemnify any and all losses so caused to CEAIR, including any losses due to any other person’s misuse or refund without permission and any necessary litigation cost.

3.4.5 In the case of the lost Ticket unverified and unapproved, CEAIR has the right to refuse the reissuance of a new Ticket. In this case, the Passenger can only repurchase a new Ticket so as to get on board.

3.4.6 A reissued Ticket is irrevocable and non-refundable.

3.4.7 Tickets cannot be reissued in case of loss of any Open Ticket.

3.4.8 If a lost Ticket has not been misused or refunded without permission within thirty (30) Days after the expiry of the duration of validity thereof, CEAIR may make a refund and charge certain fees for the refund accordingly.

3.4.9 A Ticket cannot be used and refunded upon the application for reporting the loss. If the Passenger retrieves the lost Ticket or is informed of the whereabouts of the lost Ticket, the Passenger shall promptly inform the acceptance department of Ticket loss reports. If the Passenger retrieves the Ticket within the duration of validity thereof, the Passenger may make a refund at the acceptance department of Ticket loss reports.

3.5 Use Sequence of Flight Coupons 3.5.1 The Passenger shall finish all the itineraries listed on the Ticket within the duration of validity thereof.

3.5.2 If the first Flight Coupon of a Ticket has not been used and the Passenger requests for commencing his/her travel from a Stopover point or an Agreed Stopping Place, CEAIR has the right to refuse to accept such Ticket. Such Ticket may be refunded in accordance with Article 111.5 hereof.

Article 4 Fares, Taxes and Charges 4.1 Applicable Fares 4.1.1 A fare refers to the fare for carriage by air from the airport at the place of departure to the airport at the place of destination, not including ground transportation service fees generated from within the area of airport, between terminals, between airports or between airports and downtowns, civil aviation development fund, bunker adjustment surcharge, and any other taxes and charges imposed by the country of destination on the Passenger.

4.1.2 A fare refers to the applicable fare of the designated flight at the time that the Passenger purchases a Ticket. If CEAIR makes any adjustment to the fare after selling a Ticket, the fare paid by the Passenger for the purchase of the Ticket shall remain unchanged.

4.1.3 The Passenger paying for Special Fares shall abide by the conditions applicable to such Special Fares.

4.2 Payment of Fares 4.2.1 Fares shall be paid by Passengers in the currency of the country where Passengers are located and subject to the payment method as required by CEAIR. Unless otherwise agreed by CEAIR and the Passenger, fares shall be paid in cash.

4.2.2 In the case that fares received by CEAIR are out of line with the applicable fare or are mistakenly calculated, the deficiency of fares shall be supplemented by Passengers or the overcharge thereof shall be returned by CEAIR. 4.3 Discount Fares 4.3.1 A child Ticket shall be purchased for a Child Passenger with a fare at an appropriate ratio of the Normal Fare for an adult, and CEAIR will provide the Child Passenger with a seat.

4.3.2 An infant Ticket shall be purchased for an Infant Passenger with the equivalent of 10% of the Normal Fare for an adult, and CEAIR will not provide the Infant Passenger with a seat. If the Infant Passenger is required to occupy a seat separately, the fare equivalent to a child fare shall be paid instead. If an adult Passenger carries more than one infant, the fare equivalent to a child fare shall be paid for each of the excess infants, and CEAIR will provide seats to such Infant Passengers.

4.4 Taxes and Charges

To the extent permitted by applicable laws, any taxes or charges imposed by governments, relevant authorities or airport operators shall be paid by the Passenger and will be listed on the Ticket respectively and CEAIR will inform the Passenger before his or her purchase of the Ticket of such taxes and /or charges which are not included in the normal fare.

4.5 Currency

Fares, taxes and charges shall be payable in any currency acceptable to CEAIR. When payment is made in a currency other than the currency in which the fare is published, such payment will be made at the rate of exchange ascertained by the country on the date of payment as notified by CEAIR. Article 5 Reservations and Purchase of Tickets 5.1 General Requirements 5.1.1 A Passenger planning to take a CEAIR flight shall book a seat with CEAIR or a CEAIR Passenger Sales Agent. A Reservation will be confirmed and valid only if the Passenger has produced relevant information and identification certificates as required by CEAIR and CEAIR has accepted the request for a specific flight designated by the Passenger.

5.1.2 If a Passenger fails to pay for the booked Ticket within the prescribed time limit, CEAIR may cancel his/ her Reservation.

5.1.3 CEAIR shall reserve the seats booked by Passengers within the time limit provided for or agreed in advance by CEAIR, and shall provide Passengers with seats in the confirmed flight and class of services.

5.1.4 Passengers shall comply with the Minimum Connecting Time respectively prescribed by any relevant airport or Carrier when booking seats on interline flights; if the transfer time is out of line with the flight transfer time standards, CEAIR will not accept the Reservations.

5.1.5 CEAIR may impose restrictions on certain discount fares in order to limit or exclude Passengers’ rights to change or cancel Reservations.

5.1.6 CEAIR may suspend Reservations of a certain flight if necessary.

5.2 Personal Information 5.2.1 A Passenger acknowledges the accuracy of his/her personal information provided to CEAIR and will assume any liabilities resulting from the inaccuracy of any information so provided. Such personal information is provided for the purpose of making Reservations, purchasing Tickets and obtaining relevant transportation services. CEAIR is authorized by the Passenger to retain and transmit the personal information to relevant governmental authorities at the place of destination, departments of CEAIR, other relevant Carriers or service providers.

5.2.2 A Passenger shall use the same Valid Identification Certificates when checking in and boarding as that used for Reservations and/or purchase of Tickets.

5.3 Reservation Priority 5.3.1 CEAIR is entitled to prioritize the Reservations with respect to important Passengers, emergency rescue, salvage, or any other Passengers in need of priority recognized by CEAIR. 5.3.2 Passengers who involuntarily change their itineraries may enjoy reservation priority provided that certain seats are available on the flight.

5.3.3 Passengers holding Tickets of which seats are unconfirmed on all or part of the Flight Coupons have no right to request for reservation priority when making Reservations.

5.3.4 Passengers holding Tickets of which seats have been confirmed on all or part of the Flight Coupons have no right to request for reservation priority when making changes in Reservations.

5.4 Reconfirmation of Reservations 5.4.1 Passengers do not need to reconfirm the confirmed seats on onward or return flights of CEAIR. 5.4.2 In an interline carriage, if a Passenger fails to reconfirm the seats on an onward or return flight as required by any Carrier other than CEAIR, such Carrier is entitled to cancel the Reservations on such onward or return flights made by the Passenger.

5.4.3 Passengers shall check the seat reconfirmation requirements of any relevant Carrier and process the seat reconfirmation formalities with Carriers who introduce their airline codes on Tickets.

5.5 Cancellation of Reservations 5.5.1 If a Passenger fails to purchase a Ticket within the time limit as prescribed or agreed in advance by CEAIR, the Reservation of seats will not be retained, including seats on an originating flight, onward flight or return flight.

5.5.2 Any change or cancellation of a Reservation by a Passenger shall be produced within the time limit as prescribed by CEAIR. Any change or cancellation of a Reservation shall comply with the restriction conditions (if any) imposed on the fare.

5.5.3 If a Passenger fails to use the confirmed seat without notifying CEAIR, CEAIR will not be liable for any cancellation of seats so caused on the onward or return flights.

5.6 Purchase of Tickets 5.6.1 Passengers may purchase Tickets at the ticket offices of CEAIR or CEAIR Passenger Sales Agents, or on the official website of CEAIR (www.ceair.com). Passengers may also make inquiries and purchase Tickets through the CEAIR Hotline. The CEAIR Hotline number is 95530. Direct Marketing Service Hotline of CEAIR official website is 4008695530.

5.6.2 A Passenger shall complete the Passenger Reservation Document with his/her Valid Identification Certificates in order to purchase Tickets; in the case of purchasing Tickets through websites or CEAIR Hotline, a Passenger shall produce information to CEAIR as required, including his/her Valid Identification Certificates, contact number, etc.; the Passenger shall be liable for the authenticity of the foregoing information. The Passenger shall ensure that the Valid Identification Certificates used for purchasing Tickets are consistent with those used during check-in.

5.6.3 Valid Documents evidencing the birth dates of children and infants shall be produced for purchase of child and infant Tickets.

5.6.4 A Passenger in the following conditions shall produce a valid diagnosis certificate and fill in the Flight Application Form for a Special Passenger Named ( ) upon CEAIR’s consent before purchasing Tickets: 5.6.4.1 The Passenger who is pregnant for more than 32 weeks; or 5.6.4.2 The Passenger who is travelling in a stretcher or incubator; 5.6.4.3 The Passenger who needs medical oxygen during a flight; or 5.6.4.4 The Passenger whose medical condition is such that there is a reasonable doubt that the individual can complete the flight safely, without requiring extraordinary medical assistance during the flight.

The diagnosis certificates shall be issued by the medical institutions (i.e. a domestic Grade III Class A hospital or above or a foreign hospital other than clinics or medical centers) within 48 hours before the travel. The diagnosis certificate produced by a Passenger with serious disease (cardiovascular, cancer, acute trauma, etc.) shall remain effective for 24hours. A Passenger with more than 36 weeks of pregnancy shall not purchase Tickets.

5.6.5 Each Passenger shall respectively hold his/her own Ticket.

5.6.6 If a Passenger pays the fare within the agreed ticketing time limit, CEAIR or a CEAIR Passenger Sales Agent is responsible for issuing the Ticket.

5.6.7 A Passenger who has paid the fare shall collect and verify the information on the Ticket or the Itinerary.

5.6.8 If a Passenger requests for reserving the seat due to special circumstances, upon CEAIR’s consent, the Passenger shall purchase the Ticket within the ticketing time limit indicated in the reservation records.

5.6.9 A child under 5 years of age shall be accompanied by an adult with full capacity for civil conduct; if a child who has reached 5 years of age but under 12 years of age wishes to take a flight accompanied, such child shall apply for carriage of unaccompanied children to CEAIR first and may purchase a Ticket upon CEAIR’s consent. An infant under 14 Days of age will not be accepted by CEAIR for carriage.

5.6.10 An adolescent Passenger between 12 and 15 years of age may take a flight alone, or may apply for carriage of unaccompanied children if necessary. A Passenger under 18 years of age shall not carry an infant or child alone.

5.7 Ticketing Time Limits

If a Passenger fails to pay the fare within the ticketing time limit specified by CEAIR after the Reservation, CEAIR or any CEAIR Passenger Sales Agent may cancel the Reservation.

5.8 Seats Arrangement

CEAIR reserves the right to reassign the seats which have been occupied by Passengers after boarding due to flight or security reasons. (Please see Article 17.2 hereof) Article 6 Overbooking 6.1 According to the practice of carriage by air, CEAIR may conduct proper Overbooking for flights with certain seats easily wasted as the case may be. In the event of Overbooking, CEAIR will notify the Passengers of the Overbooking situation, compensation plans and rights enjoyed by the Passengers before the Passengers check in.

6.2 In the event of Overbooking, CEAIR will properly compensate the Volunteers of Denied Boarding according to the compensation plans and arrange suitable flights or make refunds as required by them.

Under the circumstances that not enough Passengers voluntarily give up boarding of the flight, CEAIR will refuse carriage of certain Passengers according to priority boarding rules ascertained by CEAIR. 6.3 If the Passengers being refused decide to continue the journey, CEAIR will arrange such Passengers to take the soonest flight in corresponding classes, and make appropriate compensation in line with relevant provisions based on the original flight and the delayed time.

Article 7 Check-in and Boarding 7.1 General Provisions 7.1.1 Check-in Closes Time is different at every airport and Passengers must arrive at the airport within the time limit specified by CEAIR and go through formalities of verifying the Ticket, checking Baggage and obtaining the boarding pass with his/her Valid Identification Certificates and Ticket on time.

7.1.2 In avoidance of flight delays, CEAIR may cancel the confirmed seat of a Passenger who fails to arrive at CEAIR’s check-in counter or boarding gate or fails to produce his/her Valid Identification Certificates or carriage document. CEAIR shall not be liable for any losses or expenses caused by the Passenger’s failure to comply with the provisions of this Article.

7.1.3 CEAIR shall start check-in no later than 150 minutes before the scheduled Departure Time of the flight indicated on the Ticket, and close check-in 45 minutes before the scheduled Departure Time of the flight indicated on the Ticket, unless otherwise announced. (Please make inquiries through CEAIR Hotline 95530 for details).

7.1.4 CEAIR and CEAIR Ground Services Agents shall open check-in counters on time and duly process check-in formalities. Passengers and their Baggage must go through a security check before boarding the aircraft.

7.1.5 As for the commencement and closing of check-in for any onward connecting flight during the interline carriage, Passengers shall make inquiry with the Operating Carrier.

7.2 Seat Arrangements on the Aircraft 7.2.1 Besides providing Passengers with the seats according to the confirmed flight and class of services, CEAIR will endeavor to satisfy Passengers’ request for seat category in the same class of services but will not guarantee a particular seat on the aircraft requested by any Passenger.

7.2.2 To ensure flight safety, seats near the aircraft’s emergency exits shall be specifically arranged by CEAIR. 7.2.3 For the purposes of operations, safety or security, CEAIR reserves the right to assign or reassign the seats on the aircraft at any time, even after Passengers get on board the aircraft and/or are seated on the aircraft.

7.3 No-show of Passengers 7.3.1 If a No-show occurs, a Passenger holding a Normal Fare Ticket shall change the flight or make a refund at the airport of departure or the original ticketing place.

7.3.2 If a Passenger requests to take a subsequent flight upon the occurrence of No-show, CEAIR will arrange a seat for and charge certain fees to the Passenger as prescribed by the Regulation of CEAIR provided that there are available seats in the subsequent flight; if the Passenger requests for a refund, CEAIR may charge refund fees according to conditions applicable to such Ticket.

7.3.3 If a No-show occurs, a Passenger holding a Special Fare Ticket shall be subject to the applicable conditions to such Ticket.

7.4 Missing Flight of Passengers 7.4.1 In the event of Missing Flight due to a Passenger’s reasons, the refund requested by the Passenger shall be subject to the provisions on No-show.

7.4.2 In the event of Missing Flight due to CEAIR’s reasons, CEAIR shall arrange the soonest subsequent flight for the Passenger to take, or process as specified in Article 111.4 of Involuntary Refunds under these Conditions.

7.5 Wrong Plane of Passengers 7.5.1 If a Passenger gets on board a wrong flight, CEAIR will arrange such Passenger to travel on the soonest flight to the place of destination listed on the Passenger’s Ticket, with no overcharge to be returned or deficiency to be charged.

7.5.2 If the Passenger’s Wrong Plane occurs due to CEAIR’s reasons, CEAIR shall arrange the Passenger to travel on the soonest subsequent flight. The refund requested by the Passenger shall be subject to Article 111.4 of Involuntary Refunds under these Conditions.

7.6 Misconnection of Passengers

In the case of Misconnection of the Passenger caused by CEAIR during an interline carriage, CEAIR, as a preceding Operating Carrier, shall arrange for the Passenger at the connecting point.

7.7 Boarding 7.7.1 Passengers shall arrive at the boarding gate within the time limit as specified by CEAIR according to the important notices on the boarding pass.

7.7.2 CEAIR will cancel the Reservation made by a Passenger who fails to comply with Article 7.7.1 hereof and fails to get on board the aircraft within the specified time limit before the closing of the aircraft door.

CEAIR shall not be liable for any losses so caused to the Passenger.

Article 8 Baggage 8.1 General Provisions 8.1.1 Items Unacceptable as Baggage

Items specified in the Technical Instructions for the Safe Transport of Dangerous Goods by Air of the International Civil Aviation Organization (ICAO) and the Dangerous Goods Regulations of the International Air Transport Association (IATA), items the carriage of which are prohibited by the laws, regulations or orders of the People’s Republic of China, or items which are likely to endanger the aircraft or people or property on the aircraft as specified in the Regulation of CEAIR.

A Passenger shall not place in his/her Baggage or carry on to the cabin the following items, or otherwise CEAIR will refuse to provide carriage to the Passenger: 8.1.1.1 Items that do not constitute Baggage as defined in Article 1.40 of these Conditions; 8.1.1.2 Dangerous goods (including without limitation): (1) Explosives; (2) Gas, including flammable gas, inflammable and nontoxic gas, and toxic gas; (3) Flammable liquid; (4) Flammable solid, spontaneous combustible substance; substance that will release flammable gas in contact with water; (5) Oxidizer and organic peroxide; (6) Toxic substance and infectious substance; (7) Radioactive substance; (8) Corrosive substance; (9) Miscellaneous dangerous goods.

8.1.1.3 Firearms, ammunition, or military or police equipments (including key components), except those satisfying the requirements provided for in Article 1.1.18.1.3.9 of these Conditions.

(1) Military guns or guns for official use: handgun, rifle, submachine gun, machine gun, baton gun, etc.

(2) Civil guns: air gun, anesthesia gun, etc.

(3) Other guns: sample gun, prop gun, etc.

(4) Military equipments or police equipments: spontoon, military or police dagger or bayonet, etc (5) Guns or equipments prohibited by the PRC: Ball gun, tear gas gun, taser, defibrillator, or defense device; (6) Imitation of foregoing items.

8.1.1.4 Controlled Knives

Knives listed in the Interim Provisions on Controlling Certain Knives promulgated by the Ministry of Public Security, including daggers, knives with three edges (including fluted scraper used in machine work), knives with self-lock device, backswords similar with but longer than daggers, knives with double edges, and other similar backswords, knives with double edges, sharp knives with three edges, except those satisfying the requirements provided for in Article 1.1.18.1.3.1 of the Conditions; 8.1.1.5 Other Items (1) Items which are unsuitable for carriage by reason of their weight, size, package, shape or character; (2) Live animals: wild animals or/and animals with strange shape or easily to attack humans (i.e. snake), except those satisfying the requirements provide for in Article of the Conditions; (3) Fresh perishable items with obvious peculiar smell, such as durian, etc; (4) Items easily to defile the aircraft; (5) Magnetic substance; (6) Substance which makes people anesthetized or unpleasant, or substance with other similar nature; (7) Items unsuitable for carriage according to national laws and regulations or the Regulation of CEAIR. 8.1.1.6 Items prohibited from exiting from, entering into, or transiting in, relevant countries according to laws, regulations or orders of such countries.

8.1.2 Items Unacceptable as Checked Baggage

A Passenger shall not include or place in Checked Baggage the following items: items which need specific custody, such as cash, negotiable instrument, valuable securities, bill of exchange, fragile or vulnerable items, perishable items, jewelry, precious metal or articles thereof, gold and silver articles, antiques and valuable paintings, videos which are out of print, presswork or manuscripts which are out of print, samples and valuables, important documents and materials, diplomatic envelopes, travelling documents, computers and accessories, and personal communication devices and accessories, personal digital devices and accessories, etc., and prescribed drug that needs to be taken regularly.

Please see liability for damage specified in Articles 12.118.3.4 and 12.118.3.8 hereof.

8.1.3 Restricted Items on Carriage 8.1.3.1 Blunt, cold steel or similar items other than controlled knives may be carried as Checked Baggage, provided that the package of the foregoing items shall be appropriate; and the foregoing items may not be carried into cabin.

8.1.3.2 Medicines or cosmetics which are necessary during the journey, such as drugs containing alcohol, hair conditioner or perfume.

8.1.3.3 Dry ice intended for perishable items.

8.1.3.4 Alcoholic beverage.

8.1.3.5 Toy guns shall be carried as Checked Baggage, and may not be carried into the cabin.

8.1.3.6 Precise instrument, electronics, metals or batch objects shall be carried as cargo. Free Baggage Allowance does not apply to such items.

8.1.3.7 Liquid, gels and aerosols hand-carried by each Passenger shall be put in the container the capacity of which is no more than 100 ML separately, and the total volume of the foregoing items shall not exceed 1 L. 8.1.3.8 The electric wheelchair used by the Passenger during the journey.

8.1.3.9 Firearms and ammunition for hunting and sporting purpose may be carried as Checked Baggage with the firearms carriage license or the approval issued by relevant authorities of the State Council, but may not be carried into the cabin as Unchecked Baggage or carry-on items. Firearms must be unloaded with the safety catch on, and suitably packed. The carriage of ammunition shall be dealt with pursuant to relevant regulations on dangerous goods transportation.

8.1.3.10 Bulky musical instruments are not suitable to be carried as cargo. For the bulky musical instrument whose weight and size exceed the allowance of Unchecked Baggage, such musical instrument shall be charged separately as cabin-seat Baggage in the passenger cabin, and be taken care of by the Passenger.

8.1.3.11 Lithium battery may not be carried as Checked Baggage.

8.1.4 Please visit the CEAIR’s official website (www.ceair.com) or inquire with CEAIR Hotline 95530 to find more information on restricted items on carriage.

8.2 Checked Baggage 8.2.1 Upon delivery to CEAIR of Baggage to be checked, CEAIR will issue an Identification/Claim Baggage for each piece of Checked Baggage.

8.2.2 A Passenger shall attach his/her name or other personal mark to the Checked Baggage before checking it in.

8.2.3 Checked Baggage will be carried on the same aircraft as the Passenger, unless special circumstance occurs, under which CEAIR will explain the situation to the Passenger and will carry it on a subsequent flight if the space on that flight is available.

8.2.4 Checked Baggage must be well packed with suitcase or other proper container, locked and bound, and must be able endure a certain amount of pressure, and can be safely loaded, unloaded and carried under normal operation conditions; CEAIR may refuse to carry as Checked Baggage, and/or not liable for damages or losses of, Baggage whose package does not meet the requirements.

8.2.5 Each Checked Baggage must not exceed 32kg in weight and the three dimensions shall not exceed 40cm, 60cm and 100cm. The carriage of Baggage exceeding the foregoing limit shall be subject to the prior consent of CEAIR. 8.3 Unchecked Baggage 8.3.1 Each Unchecked Baggage must not exceed 10kg in weight and the three dimensions shall not exceed 20cm, 40cm and 55cm respectively.

8.3.2 Unchecked Baggage should be stowed under the seat in front of the Passenger or in an enclosed storage compartment in the cabin. Items exceeding the allowance of weight or size provided for in Article 8.3.1 hereof may not be carried into the cabin.

8.3.3 Each First Class Passenger is allowed to carry on up to two pieces of Unchecked Baggage; each Business Class or Economy Class Passenger is allowed to carry on up to one piece of Unchecked Baggage.

8.3.4 The Unchecked Baggage which exceeds the aforesaid allowance of weight, amount, or size shall be checked as Checked Baggage.

8.4 Free Baggage Allowance 8.4.1 Free Baggage Allowance covers both Checked Baggage and Unchecked Baggage.

8.4.1.1 Weight concept of Free Baggage Allowance: the Free Baggage Allowance for an adult Ticket or a child Ticket in First Class is 40kg; the Free Baggage Allowance for a Business Class Passenger is 30kg; and the Free Baggage Allowance for an Economic Class Passenger is 20kg. The Free Baggage Allowance for each infant Ticket is 10kg. Each infant is allowed one checked stroller free of charge.

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A10 Monday, September 21, 2015

Opinion BusinessMirror

editorial

Playing God with the peso

S

ince the beginning of February, the Philippine peso has been in a declining trend against the US dollar, having moved from 44 to 1 dollar down to nearly 47. But compared to other regional currencies, a 7-percent fall is small. Malaysia has seen its currency, the ringgit, drop by nearly 20 percent.

Everyone in the Philippines has a financial stake in the foreign-exchange rate of the peso. The peso-dollar rate determines the cost of the government’s external debt payments. Every time you put gasoline in your vehicle, a portion of the pump price comes from what the peso is doing in relation to the dollar.

Of course, the most vocal about the peso rate are those that receive remittances from overseas Filipinos.

The Bangko Sentral ng Pilipinas (BSP) bears the brunt of the criticism from all sides as the peso moves higher or lower in relation to the dollar.

While it is true that the BSP can, in the short term, place the exchange rate at any level that it wants, the questions are, should the BSP influence the exchange rate and if so, in what direction?

Theoretically, a nation’s currency exchange rate is only determined by money flowing in and out of the country. If foreign funds are coming in, the local currency becomes more valuable as the foreign money needs to be exchanged for local currency. Likewise, if money is flowing out, then local currency is sold for the foreign currency and the local currency “price” goes down.

Overseas workers, in particular, want a weak peso so that they get more local currency for their remittances. The average consumer wants a stronger peso so that the price of imported consumer goods from oil products to milk powder is less expensive.

In the 2003 movie, Bruce Almighty, Jim Carrey criticizes God, played by Morgan Freeman, as being incompetent in using all the divine power. Freeman then lets Carrey make the godly decisions. Thousands of people pray to win the lottery and Carrey hits the “yes” button to answer their requests.

As a result of there being so many winners, instead of a big jackpot, winners got a minimal amount, making them even angrier at the divine intervention.

It would have been better for the lottery winner to have been determined by random chance, and it is better for the exchange rate to be moved by freemarket money flows.

If the BSP aggressively intervenes in the exchange rate beyond keeping the trading smooth, some will win and others will lose, and it is not the job of the BSP to pick exchange-rate winners and losers.

The other and more serious problem is that once a central bank, particular in a small country like the Philippines, starts artificially pushing the exchange rate, speculative currency traders will come in and things can become very dangerous, as both Russia and Malaysia have discovered.

Let the BSP do its job properly and let the Philippine peso move according to money flows and not manipulation.

PCSO up north Atty. Jose Ferdinand M. Rojas II

RISING SUN

A

fter distributing ambulances in Cagayan Valley and Baguio City recently for the provinces in the area, the Philippine Charity Sweepstakes Office continued its activities in Northern Luzon last Friday.

With fellow PCSO Directors Atty. Mabel V. Mamba and Atty.

Francisco G. Joaquin III and other PCSO personnel, I traveled to Vigan City to turn over 18 ambulances to three provinces.

Ilocos Norte received seven for Batac City and the towns of Pagudpud, Vintar, Marcos, Solsona, San Nicolas and Piddig; Ilocos Sur nine for the towns of Lidlidda, Suyo, Caoayan, Santo Domingo, Santa Maria, Sinait, Banayoyo, San Esteban and Nagbukel; and La Union two for the towns of Bangar and Luna.

We also handed over a total of P5 million in endowment funds to two hospitals in the area: P2 million to La Union Medical Center and P3 million to Mariano Marcos Memorial Center.

We were warmly welcomed by Ilocos Sur Rep. Eric Singson (Second district), Ilocos Sur Gov. Ryan Luis Singson, Ilocos Sur Vice Gov. DV Savellano, Provincial Board Members Jerry Singson and Jaime Singson, Caoayan Mayor Germelina Goulart, and other mayors,

vice mayors and local government unit officials from the area.

At t he tur nover ceremony held at the main hall of the Ilocos Sur Provincial Capitol, Governor Singson said the PCSO ambulances will provide health security for the populace, one of the priority concerns of the local government.

This activity is in line with the PCSO’s Ambulance Donation program that seeks to put an ambulance in every municipality in the country that requests one.

This year 700 ambulances will be distributed nationwide.

With each ambulance comes the basic equipment necessary to transport a patient to a health center or hospital: a spineboard, oxygen tank with cannula, collapsible stretcher and first aid kit.

Recipients may opt to add other equipment at their own initiative.

First- to third-class municipalities and private hospitals receive ambulances on a 60-40 percent cost-sharing scheme, while fourth- to sixth-class municipali-

ties, associations and government agencies, such as hospitals and state colleges and universities, get them via 100-percent outright donation.

Those who wish to apply for PCSO ambulances should comply with the necessary documentary requirements, which they can view at pcso.gov.ph. n n n I have often mentioned art tourism and how LGUs can develop their cultural heritage resources to come up with programs that will not only preserve, protect, and share their unique customs, trad it ions and cu lt ura l ar t ifacts, but also provide business oppor t u n it ies a nd econom ic development.

Vigan City is an excellent example of how an LGU can accomplish this.

The Vigan plaza, like those others built during the Spanish colonial period, embodies many of the town-planning concepts prescribed in the Leyes de Indias, or Law of the Indies, wherein a plaza mayor is built in the center of town, around which are clustered the seat of government, the church, and other prominent and important buildings.

What is interesting is that the provincial and city government drew up a plan and embarked upon it logically by first performing cultural mapping. They identified core zones and buffer zones.

Establishments within these two zones have to conform to archi-

Of security and maintenance services Atty. Lorna Patajo-Kapunan

legally speaking

W

ith companies, big or small, it is now commonplace to secure the services of security guards and janitors through agencies. The obvious advantages of agency-contracted security and janitorial services are that it is easy and cost-effective.

With the advent of the Internet, it has become so easy for companies to look for security and janitorial agencies. Gone are the days of flipping through the yellow pages; in just one click a business owner is hit with a plethora of advertisements. Thus, finding an agency is fast.

It is recommended that at least five agencies are selected and asked to submit proposals.

In choosing the right agency, a business owner is advised to go

beyond the “price.”

Focusing on the price can be misleading. The Department of Labor and Employment (DOLE) is aware of this business mindset. Thus, the DOLE rolled out Department Order (DO) 18-A, which requires agencies to register with strict compliance standards.

It may appear that DO 18-A is business-friendly because it is supposed to address illegal-labor contracting and protect businesses from the direct consequences of

To protect themselves from unnecessary lawsuits, business owners are advised to attach, to the contract of services, a breakdown of the salaries and wages paid to every security guard or janitor. the Labor Code and other labor laws as long as a valid job contract exists between the business owner and the agency.

However, DO 18-A did not repeal the compliance to the minimum-wage law, 13th-month pay law and overtime-pay law, etc.

In other words, compliance with the monetary benefits of security guards and janitors is still in place.

Thus, in cases where the agency fails to pay security guards and janitors all monetary benefits provided for by the Labor Code and other labor laws, the business owner is still liable, jointly and severally liable. This means

tectural and other style standards that reflect the area’s heritage.

Thus, shops around the plaza and nearby streets are built in restored bahay na bato or new structures that draw from Spanish colonial architectural styles. New establishments in the modern style may only be constructed outside the cultural buffer zones.

This makes for an interesting tourist experience. It is like stepping back in time, but with the ease and enjoyment of current comforts and technologies.

The plaza is a place for strolling, with certain areas off-limits to vehicles. Whether day or night, the area is safe and secure for tourists. At night, it is well-lit and alive with bustling establishments, many of them big-chain restaurants.

Surrounding the main square are antique shops, eateries and any number of quaint hostelries.

Vigan is the perfect example of how LGUs can spearhead the movement to revive old traditions and use old artifacts and make them serve present-day purposes.

I’ll have more on Vigan in future columns. It is a must-see place and a trip there will not only inform and educate, but also inspire a deeper appreciation of the area’s history, culture and tradition.

Atty. Rojas is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

that each business owner that has a contract with an agency, that either underpays or does not pay the monetary benefits, can be sued by the security guard or janitor to pay monetary claims, notwithstanding the existence of a job contract.

In order to protect themselves from unnecessary lawsuits, a business owner is advised to attach, to the contract of services, a breakdown of the salary/wage paid to each security guard or janitor. The breakdown must show that said salary/wage includes the payment of the minimum wage in effect at the time of the contract, the proportionate 13th-month pay, the service incentive leave, the overtime pay, the holiday pay, aside from the usual agency fee and value-added tax.

Usually, of course, compliance with monetary benefits would mean that the agency will charge a price higher than the competition.

In this instance, the old adage, better be safe than sorry, makes a sound business choice.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Monday, September 21, 2015 A11

Abe Teddy Locsin Jr.

Free fire

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ither by nature or nurture or both, Abe had a fine taste for the finest things in life—not the things that embellish life so much as polish it so as to bring out the fine grain. That taste came with the ability to communicate it in a way that enabled others to share his learning and experience his delight.

He never came across as if he knew things beyond anyone’s grasp or experienced them as no one else could. If something delighted him, he validated it by writing about it in a way that explained and allowed you to experience it as he had.

He never set out to be the “doyenne”—a favorite word Abe eschewed—of anything or a dictator of taste and style, though he was by no means informal or casual.

There was about his person an easy elegance that made him approachable but only up to a point, for a great part of an elegant lifestyle requires a certain constant distance. This he kept up effortlessly without offending or turning off anyone. You never felt dismissed as less knowledgeable or ignorant. Indeed, he welcomed your comments and suggestions on what he planned to do for the next issue of the lifestyle section.

You walked away without apprehension that it would go off the wrong way if your suggestions weren’t followed but rather con-

fidently that Abe would treat the matter in his way, which meant as well as it could be.

Abe did not flatter but he was not

stingy with praise when it was deserved. When Abe praised someone for their style, they well deserved it but only to the precise degree that

they had it and no more. He had a quiet but unchallenged mastery of the field that I cannot think anyone else had in the same easy way. In short, I guess you could say that Abe, as a lifestyle editor, lived his subject in the way one could say that so and so is a natural aristocrat, which is to say to the manor born in a democratic age when the paraphernalia of taste can be purchased but rarely worn without straining for an elusive effect but rather pulled off in a most natural way.

Abe was fortunate that he had in Zardo someone with the same sensitivity to style as he possessed, because what distinguishes style from study is that style is easily defeated by the vulgarity it tries to educate, and strengthened mostly by a shared feeling for form and taste.

The world of style lost from his passing its most discerning judge and elegant explainer but the loss is even greater for his dearest friend.

Deep as we all feel that loss, only the barest hint of it is here expressed.

Good-bye, Abe. Our deepest condolence for Zardo’s loss.

Philippine Tax Academy: The envisioned center of learning for government tax collectors and CPAs Joel L. Tan-Torres

DEBIT CREDIT Part One

Today we launch a BusinessMirror column that will be hosted by the members of the accountancy profession. This column is aptly called “Debit Credit,” which is the basic language or principle of all accountants. True to the character of accountants, the articles for this Debit Credit column would present all sides of an issue for a fair assessment. The “debits” and “credits” of a subject would be threshed out.

‘D

ebit Credit” articles will be of interest to the accountancy profession, in particular, and to the business community, in general. The writers can be any of the more than 160,000 Certified Public Accountants (CPAs) registered with the Board of Accountancy. The CPAs in the various sectors of commerce and industry, public practice, academe and government will contribute articles of interest in their particular fields. Even junior accountants studying in the various accounting schools can also share their thoughts on relevant matters of interest.

So, readers of this column, expect a varied and interesting “Debit Credit” discussion every week.

For our maiden column, I will discuss the Philippine Tax Academy (PTA) which is a creation of law, but has yet to exist at this time. This Academy should be of interest to us because, once this training center for our tax collectors is organized, we can expect a more professional and capable corps of tax collectors from the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), and our local governments.

Better tax administration

Just imagine these scenarios. Tax officers of the BIR discussing the emerging tax-administration governance issues as part of the curriculum of their two-year advance taxation course. BOC officials gathered together in a table to prepare for their midterm examinations on tariff comparative practices in the Asean region. Treasurers of local government units (LGUs) of Metro Manila researching on the topic “Applying Information Technology to Expedite the Tax Payments of Local Business Taxes” using the electronic-library facilities. A corps of professional instructors who are experts in the field of taxation, public finance, revenue administration preparing their lesson plans. A batch of government tax-collecting CPAs receiving their certificates of completion after a year of extensive training. Hundreds of applicants for the vacancies in the BIR, the BOC and the LGUs taking the admission examinations as a requirement for processing of their applications for employment. A group of BIR CPA supervisors checking in the Training Hostel preparatory to the start of their three-month tax-update seminar. The Board of Trustees of the PTA discussing the budget for the coming year.

Are these just figments of our imagination? Dreams that will

dissipate when we wake up? These responses are partly correct and partly incorrect.

Correct, in the sense that these are aspirations of the taxpaying public of what the tax-collecting agencies and personnel should be doing in order to have a more effective and enlightened tax collectors. We all can see the benefits of providing organized learning and training to the tax collectors of the BIR, the BOC and the LGUs. These can produce “graduates” who will have a well-rounded and updated knowledge of the tax system and new ways in dealing with the public that they serve.

However, most think that these are still far from reality.

The good news is that the perceptions that these are far from reality are incorrect, and that it can be a matter of time when a Philippine Training Academy may be established.

There is now a law that mandates the establishment of the PTA. Republic Act (RA) 10143, or the Philippine Tax Academy Act, became law on July 31, 2010. In fact, this may have been the very first piece of legislation passed under the administration of President Aquino.

I was personally involved in the drafting of the bill for this law and in the swift approval of this bill in both the Senate and the House of Representatives of the Fourteenth Congress sometime early 2010.

Rep. Exequiel Javier sponsored the bill in the lower house, while Sen. Panfilo Lacson sponsored the Senate bill.

Beginning with my appointment as Senior Deputy Commissioner of the BIR in August 2009, I advocated for the creation of the Tax Academy. During the latter part of 2009, I worked with a group of BIR officials to conceptualize the Tax Academy structure. I was able to visit the National Tax College of the National Tax Ad-

ministration of Japan, observe the operations of such an institution and gain valuable insights.

When I was appointed commissioner of internal revenue in November 2010, I moved for the passage of a law that will create a learning center for the tax collectors of the land, including, of course, the BIR. In early 2010 I constituted a group of young CPAs and lawyers coming from the Junior Executive Development Program (JEDP) of the BIR to help draft a bill that will establish a Tax Training Academy.

The idea then is to form a training organization that is separate from the tax-collecting agencies, and that will be focused on providing training and learning to all tax-collecting officers. My JEDP group was able to draft a bill that became the basis for the passage of the Philippine Tax Academy Act. I was able to have this certified as urgent by Malacañang and the approval of the bill in the two chambers of Congress was expedited and fast-tracked. RA 10143 was transmitted to Malacañang on July 1, 2010, and 30 days after, on July 31, 2010, this lapsed into law without the signature of the President, in accordance with Article VI, Section 27(1) of the Constitution.

Yes, this is probably the first law passed during the term of President Aquino. And this definitely is one piece of legislation that is much needed for the tax-collecting agencies and officers, as well as the tax-paying public.

Features of the Philippine Tax Academy Act

AS provided for in RA 10143, the mandate of the Philippine Tax Academy (“Academy”) is to train, mold, enhance and develop capabilities of tax collectors and administrators to help improve their tax-collection efficiency, and to become competent and effective public servants for the national interest. Through this specialized institution, it will provide the appropriate education, training skills and values to tax collectors and administrators, and will disseminate tax laws, regulation, guidelines and relevant information to the public.

The Philippine Tax Academy shall serve as a learning institution for tax collectors and administrators of the government and selected applicants from the private sector. It shall handle all the trainings, continuing-education programs and other courses for all the officials and personnel of the BIR, the BOC and the Bureau of Local Government Finance (BLGF).

It shall develop and implement a curriculum, which includes those pertaining to: (a) the technical aspects of tax collection, administration and compliance; and (b) the career orientation and development for civil servants. It shall conduct lectures, seminars, workshops and other training programs designed to mold, develop and enhance the skills and knowledge, moral

fitness, efficiency and capability of tax collectors and administrators. It shall also perform such other function and duties as may be necessary in carrying out its mandate. The law provided that all existing officials and personnel of the BIR, the BOC and the BLGF shall be required to undergo the re-tooling and enhancement seminars and training programs to be conducted by the PTA. In fact, even applicants to the said bureaus shall also be required to pass the basic courses before they can be hired, whether on contractual or permanent status. Clearly, these provisions of law will ultimately result in a highly trained and competent tax collectors.

Broad powers were given to the PTA. Among others the Academy shall have the following powers: (a) To adopt, alter and use a corporate seal; (b) To take and hold by bequest, devise, gift, purchase or lease, either absolutely or in trust for any of its purposes, any property, real or personal, without limitation as to amount or value; to convey such property and to invest and reinvest any principal, and deal with and expend the income and principal of the PTA in such manner as will best promote its objectives; (c) To collect, receive and maintain a fund or funds, by subscription or otherwise, and to apply the income and principal thereof to the promotion of its aims and purposes herein before set out; (d) To contract any obligation, or enter into any agreement necessary or incidental to the proper management of its corporate powers; and (e) To carry on any activity and to have and exercise all of the powers conferred by the laws upon private or government-owned or -controlled corporation; and to do any and all of the acts and things herein set forth to the same extent as juridical persons could do, and in any part of the world, as principal, factor, agent or otherwise, alone or in syndicate or otherwise in conjunction with any person, entity, partnership, association or corporation, domestic or foreign.

The law provides that the PTA shall be located in such place or places as the Department of Finance (DOF) may determine. It shall have facilities for instructive learning and workshops; housing/lodging and other facilities to accommodate faculty, staff, personnel and trainees. With all of these facilities, the Academy will be in a position to provide high-quality training to a large number of government tax collectors. In fact, it is provided in the law that the PTA shall have separate learning institutes each for the BIR, the BOC and the BLGF. For governance and administration, the PTA shall have a governing board to be known as the Board of Trustees, composed of the following: (1) Representative from the DOF—ex officio chairperson; (2 ) Representative from the

BIR—ex officio vice chairperson; (3) Representative from the BOC—ex officio Vice Chairperson; (4) Executive director of the BLGF—member; and (5) Three representatives from academe with at least five years of teaching experience from a reputable school.

The representatives from the DOF, the BIR and the BOC shall be appointed by the President of the Philippines from the nominees of the secretary of finance.

The representatives coming from academe shall be appointed from the nominees of the state universities and/or accredited private educational institutions; chosen on the basis of years of experience, integrity, probity; and proven expertise in the field of taxation, public finance, public administration and have taught in a reputable school for the same number of years.

The members of the Board of Trustees shall serve for a term of three (3) years. In case of vacancy in the Board, the person so appointed or designated shall serve only for the unexpired term.

The members of the Board of Trustees shall serve without compensation for the performance of their functions, but they shall be entitled to reasonable honoraria, allowance or per diem pursuant to existing laws and regulations.

The law provides that the executive officials of the Academy shall be composed of a president and three chancellors and vice chancellors to administer the institutes for the BIR, the BOC and the BLGF, respectively, all to be appointed by the Secretary of finance for a term of three (3) years without prejudice to subsequent reappointment.

In term of of the teaching faculty, the PTA shall be staffed by a corps of professional instructors with sufficient knowledge, education, training and actual experience in taxation, public finance and revenue administration, among others.

An instructor shall be appointed by the Board of Trustees, upon nomination of any member. The requirements and restrictions of the Civil Service Law, laws, rules and regulations on position classification and salary standardization shall be observed in the appointment of the instructors of the Academy. For the purpose of filling up the staffing requirements for the corps of professional instructors, officers, employees or personnel of the BIR, the BOC and the BLGF may be transferred to and from the Academy and their respective institutions.

Appointments to the administrative or research staff of the PTA may be on a full-time or part-time basis, and shall be covered by the requirements and restrictions of the Civil Service Law, laws, rules and regulations on position classification and salary standardization. For the purpose of filling up the staffing requirements, officers, employees or personnel of the BIR, the BOC and the BLGF may be transferred to and

from the Academy and their respective institutions.

The PTA may enter into consortium agreements and joint-venture agreements with the University of the Philippines, public and private universities and training institutions for the development and implementation of the curriculum, programs for orientation, career development and continuing education in tax collection, auditing, administration and compliance.

The Academy has full autonomy in the funding for its operations. As a government institution, the Academy will be allotted a budget during the annual appropriation process.

Furthermore, the Academy can solicit gifts and donations, which will be deposited in a special fund to be known as the Tax Academy Fund.

This fund shall be administered, appropriated and disbursed by the Board of Trustees of the PTA exclusively for the purposes of this Academy. The Academy can also implement revenue-generating activities, such as organizing seminars, publishing books, doing consulting work and others. Finally, it is provided for in the law that all income, gifts, donations, foreign aids and grants for the benefit of the PTA or for its operation, administration, support or maintenance shall be exempt from all forms of taxes, fees, assessments and other charges of the government, its agencies, instrumentalities branches and subdivisions.

So, with all these provisions provided in the law creating the PTA, there is no reason why the Academy will not be able to meet the expectation of all its stakeholders and the corresponding benefits achieved.

Clearly, with a Tax Academy in place, the benefits for the tax-collecting agencies and the tax-paying public will be attained.

For the tax-collecting agencies, the following are the benefits: 1) A dedicated learning institution will be established that will have the authority and powers to ensure that an organized and longterm training and learning program will be implemented for the BIR, the BOC and the LGUs. 2) The tax-collecting officers and staff of the BIR, the BOC and the LGUs will be imbued with the learning that will help them in their work, as well as instill in them the relevant knowledge and practices for their work.

3) The career advancement and promotion of the officers and staff of the BIR, the BOC and the LGUs can be governed by a system of meritocracy based on their successful completion of the learning requirements of the Tax Academy.

4) The hiring of new staff will also be governed by a similar system of meritocracy resulting in good quality of recruits.

On the part of the-tax paying public, they will greatly benefit with a corps of tax collecting officers who are well-trained and imbued with governance practices.

To be continued

2nd Front Page BusinessMirror

A12 Monday, September 21, 2015

PLDT urges SMEs to ‘exploit’ e-commerce market in PHL

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By Lorenz S. Marasigan

he e-commerce market in the Philippines is a vastly untapped sector that small and medium enterprises (SMEs) should exploit further, executives of multimedia conglomerate Philippine Long Distance Telephone Co. (PLDT) said on Friday.

Citing a study by global management consulting firm A.T. Kearney, PLDT First Vice President Kat Luna Abelarde said the Asean online market has seen a 15-percent growth rate the last four years but further expected to grow at a rate of 25 percent in the coming years, amid the rising purchasing power, growing Internet penetration and improving online offers in the region.

However, online retail sales of the six major Asean economies, including the Philippines, only made up less than 1 percent, or only $7 billion of the total $1.221 trillion,

global retail sales in 2013, reflecting a huge upside opportunity for e-commerce.

SMEs, Abelarde said, should tap into the e-commerce platform to further grow their businesses.

However, there are obstacles they need to go through to be successful in this market, like the lack of financial resources, limited resources to digital talent and absence of information.

Addressing these challenges for local SMEs, PLDT and its digital unit Voyager Innovations Inc. recently unveiled the premium concierge service for its e-commerce

platform TackThis!, which makes it easier for business owners to set up a professionally managed online retail site, with online payment features for consumers.

TackThis! packages start at P299 for the “Novice,” P599 for the “Professional,” and P899 for the “Expert.” The premium concierge service is available for a minimum investment of P3,500 per month, which already includes professional services for online store creation, management of logistics, payments, customer service via a team of TackThis! ambassadors, and store marketing through Takatack, the largest online shopping discovery platform.

“We recognize the importance of SMEs in our economy, that is why PLDT is at the forefront of empowering SMEs through various digital solutions that are costeffective and easy to manage. With the TackThis! service, we are providing SMEs, which make up the majority of our country’s business sector, a convenient innovation that allows them to participate in the burgeoning digital economy,” Abelarde said.

In the past, companies would

have had to hire a development and operations team to create an online store.

With TackThis!, a user-friendly interface allows one to create a site in minutes. They can then ‘tack’ their virtual store to social networking and blog sites, such as Facebook and Wordpress, and web sites a l low ing their customers for a seamless social shopping experience.

The TackThis! service already allows one to keep track of customer purchases, pending orders, fulfilled orders, and set flexible options for delivery and payments.

Also included is a dashboard that allows inventory management, reports and analytics, customer profiles and built-in marketing.

“At Voyager, we believe that e-commerce is one of the building blocks of the digital economy. TackThis! is already changing e-commerce as it integrates the social shopping experience. SMEs partnered with us can benefit from the one-stop solution that TackThis! provides, including our enhanced concierge service,” said Mitch Padua, vice president and head of digital commerce at Voyager.

FDI INFLOWS SEEN DECLINING ON LACK OF POWER PROJECTS

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he Department of Trade and Industry (DTI) said foreign direct investment (FDI) inflows this year would be “much lower” than the $6.2 billion recorded last year due to the dearth of big-ticket power projects.

Trade Secretar y Gregor y L. Domingo said, however, that the manufacturing sector is expected to recover this year due to “mega investments,” which he did not disclose.

In a radio interview, Domingo noted that FDI inflows in 2014 grew 66 percent year-on-year, a feat which the country may be hard-pressed to replicate.

“FDI recorded a big increase in 2014.

Last year it rose to $6.2 billion. This year we might just match the 2013 level of $3.7 billion,” he said.

Domingo said the lack of big-ticket energy projects could cause FDI inflows to go down by as much as 40.3 percent this year.

The data from the Bangko Sentral ng Pilipinas showed that FDI inflows in January to June stood at $2.01 billion, 40 percent lower than the $3.37 billion recorded in the same period last year.

Domingo said he remains hopeful that the Philippines would be able to

Pope Francis urges Cuba, US to fully develop their detente

attract more foreign investments in the last quarter of 2015.

“Baka humabol sa second half.

May mga megaplants na papasok, at nasabihan na kami. Any time now, mag-a-announce na ang mga plantang ’to, with initial employment at 5,000.

These are in electronics manufacturing in Calabarzon [Cavite, Laguna, Batangas, Rizal and Quezon], may iba rin sa garments, and shoe manufacturing in ecozones,” he said.

The entry of more investments in the manufacturing sector could boost factory output, which has been growing by an average of 8 percent in 2013 and 2014.

Meanwhile, the DTI remains optimistic that the exports sector would be able to recover this year, despite expectations by the Export Marketing Bureau that shipments of local goods to other countries could grow by only a single digit. “Bumagsak ang exports from January to June by 4 percent, because of lower shipments to China.

But, I think, we will recover in a big way because of these megafactories that will be put up. In another six months, we will see a big increase in shipments,” Domingo said. Catherine N. Pillas

‘Fare matrix for GrabCar, Uber to prevent overpricing’

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AVANA—Pope Francis urged Cuban and US governments to push ahead on their newly forged path toward normal relations, saying they should “develop all its possibilities” as he arrived last Saturday on the first leg of a trip to the Cold War foes that papal diplomacy helped bring together.

Standing on the tarmac of Havana’s Jose Marti airport, Francis called the resumption of full diplomatic ties between the US and Cuba this year an “example of reconciliation for the entire world.”

The pope wrote a personal appeal to Presidents Barack Obama and Raul Castro and hosted their delegations at a secret meeting at the Vatican last year to seal a deal after 18 months of closed-door negotiations. Since then, the two leaders have reopened embassies in each other’s countries, held a personal meeting and at least two phone calls and launched a process aimed at normalizing ties in fields ranging from trade to tourism to telecommunications. Standing with Cuba’s president by his side, Francis said the developments over recent months have given him hope.

“I urge political leaders to persevere on this path and to develop all its possibilities as a proof of the high service which they are called to carry out on behalf of the peace and well-being of their peoples, of all America, and as an example of reconciliation for the entire world,” he said.

Castro blasted the US trade embargo on Cuba as “cruel, immoral and illegal” and called for it to end. But he also again thanked the pope for his role in fostering “the first step” in a process of normalizing relations.

The Vatican has long opposed the embargo on the grounds that it hurts ordinary Cubans most. On the eve of the visit, the Vatican No. 2, Cardinal Pietro Parolin, made clear the Holy See hopes the rapprochement will eventually result in the lifting of sanctions. The Obama administration also called on Congress to lift the embargo, and on Friday it unveiled a new round of executive actions that carve out exceptions to the sanctions, such as allowing US businesses to open offices in Cuba, letting US residents send unlimited cash to Cubans and permitting virtually all US pleasure boats to travel to the island without a special license.

In his remarks, Francis gave a friendly greeting to Fidel Castro, asking his brother Raul to send the 89-year-old revolutionary “my sentiments of particular respect and consideration.” AP

www.businessmirror.com.ph

In this file photo, US President Barack Obama (left) shakes hands with his Chinese counterpart Xi Jinping after their news conference at the Great Hall of the People in Beijing, China. As Xi makes his first state visit to Washington this week, the outlook for relations is decidedly murkier than when he hosted Obama at their last summit less than a year ago. Tensions are rising over allegations of Beijingdirected cyberattacks on the US and China’s moves to assert its South China Sea territorial claims. AP

Hacking, China’s maritime claims overshadow Xi’s US visit

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EIJING—As Chinese President Xi Jinping makes his first state visit to Washington this week, the outlook for relations is decidedly murkier than when he hosted President Barack Obama at their last summit less than a year ago.

Tensions are rising over allegations of Beijing-directed cyberattacks on the US and China’s moves to assert its South China Sea territorial claims. Much of the American public sees China as an economic threat and criticisms are rising over a sweeping crackdown on civil rights.

“US suspicions regarding Chinese intentions are growing,” said Aaron L. Friedberg, professor of politics and international affairs at Princeton University.

“The atmosphere surrounding this summit may be more negative than any in the post-Tiananmen

period,” Friedberg said, referring to China’s bloody crackdown on pro-democracy protesters in 1989 that marked the nadir in relations.

At the same time, belief in China’s inexorable rise has been shaken by a stock-market plunge and an economic slowdown that have sent shockwaves through global markets. And last month’s catastrophic chemical warehouse explosion in a city just east of Beijing that killed 173 people have also underscored concerns about corruption and incompetence, increasing doubts about the viability of China’s model of authoritarian governance.

Circumstances were different when the two leaders met in November at an Asia-Pacific summit in Beijing. Then, they could point to a much-heralded consensus on climate change, while China had just

recently taken part in the premier US naval exercise in the Pacific and appeared to be assuming greater responsibility for the global commons.

Finding common ground Not all is gloomy. Beijing and Washington have found common cause in restraining Iran and North Korea’s nuclear ambitions, even if China has been unable to restart six-nation talks with Pyongyang.

“We should actually take a closer look at any kind of possible cooperation, to leverage our resources and to do the utmost,” Xi’s chief foreign policy adviser, State Counselor Yang Jiechi said in a recent interview with the official China Daily newspaper.

In Washington, meaningful discussions are expected on trade, North Korea and Iran. US officials say they have little hope for major breakthroughs on the tough issues

bedeviling ties, but that there may be conciliatory gestures such as restarting dialogue on cybersecurity and a pact on avoiding unintended incidents between military aircraft.

“To me, the most important thing about the meeting is that it is an acknowledgement of the importance of the relationship,” said University of Virginia professor of foreign affairs and China expert Brantly Womack. Other than that, it will be mostly posturing, Womack said: “I imagine it will be more lightsabre poses than deliverables.”

Chinese officials and government-backed scholars say that the world’s top economies should maintain close contact and operate under a new “major power” relationship, a concept that seeks to bring China up to parity with the US. See “Hacking,” A2

egulators propose the adoption of a fare-matrix system for such transport network service providers as Uber and GrabCar to help avoid exposing the commuting public from alleged “unreasonable” fare charges.

The chairman of the House Committee on Metro Manila Development (CMMD) wants the Land Transportation Franchising and Regulatory Board (LTFRB) to issue such a fare matrix system for transport network companies (TNCs) as Uber and GrabCar. CMMD Chairman and Liberal Party Rep. Winston Castelo of Quezon City said such a matrix should help ease the daily travails of the commuting public.

According to the lawmaker, the House CMMD should soo release a committee report calling for the issuance of a fare matrix for the TNCs. “That [fare matrix] will be a part the committee of report of the CMMD to prevent abuses and predatory pricing. This is within the regulatory functions of the government. Otherwise we will recommend the revocation of theor provisional authority. I think it’s high time for them to have fare matrix” he said.

Castelo also said that, while Uber and GrabCar cannot be faulted for trying to optimize their earnings, he insisted it was “high time that we exert our legislative function here [and] strongly regulate” the TNCs LTFRB Chairman Winston Ginez said the agency has invited the TNCs to discuss the alleged overpricing among the premium taxi services.

Ginez acknowledged the board has received complaints from customers that certain drivers from the TNCs allegedly and deliberately snubbed a number of booking requests and much to the annoyance of the commuting public. There was one complaint of a TNC client who allegedly had to offer a P1,200 tip before the driver accepted her booking during rush hour.

“These complaints [against TNCs] are growing,” said Ginez, at the recent committee hearing, adding, “The P1,200 tip is actually a bribe because a tip is given after a good service. But here you are offering a tip for the driver to take your ride.”

The Uber, in reaction, said that“at times of high demand, the number of drivers we can connect you with becomes limited. As a result, prices increase to encourage more drivers to become available.”

In a separate news report, Ginez said the transport board has ordered the TNCs to explain until September 27 how they set the rate they charge the commuting public.

Jovee Marie N. Dela Cruz