CITING the burdensome regulatory framework in the Philippine tuna industry, a government think tank said the government should reduce regulations in order for the industry to be more efficient and competitive.
This was the result of the study, "Reducing Unnecessary Regulatory Burden: The Philippine Tuna Industry," conducted by Philippine Institute for Development Study (PIDS) President Gilberto Llanto, Research Analyst Maria Kristina Ortiz, and former Supervising Research Specialist Cherry Ann Madriaga.
Fishing is one of the major industries in the Philippines’ agriculture, fisheries, and forestry sector. However, its contribution to the economy is still minimal—only 1.7 percent of the gross domestic product, PIDS said.
In business registration alone, the study found a number of steps and requirements that need to be simplified to shorten the process.
At present, tuna investors have to comply with the requirements and certifications set not just by their local government units (LGUs) but also by the different regulatory bodies, such as the Bureau of Fisheries and Aquatic Resources (BFAR) and the Marine Industry Authority (Marina), which are located in different city or municipality.
"This makes the whole process costly and tedious especially for small fish operators," the authors said.
Moreover, “certain steps have to be undertaken in the BFAR (Bureau of Fisheries and Aquatic Resources) Regional Offices, which means that actual processing time depends on the availability of inspectors,” they said.
When it comes to the processing stage, tuna companies also have to make sure they comply with the standards set by the BFAR and the Food and Drug Authority (FDA), such as the cooling/chilling temperature that must be applied throughout the handling process, the essential composition and quality factors, standards for food additives and contaminants, proper hygiene and handling practices, proper packaging and labelling practices, methods of sampling, examination and analysis of products, definition of defective products, and the requirements for lot acceptance.
The final stages of marketing and distribution are also no easy feat for companies as their exports need to undergo various laboratory tests depending on the requirements of the importing country.
The costly trainings to become a qualified person in industry regulatory affairs that are provided by the FDA are also posing challenges for industry players. Aside from these pitfalls, the authors identified other reasons that made the enforcement of regulations inefficient, such as the inadequate staffing on the side of the regulator, lack of proper and effective communication and consultation mechanism between regulators and regulated entities, inadequate understanding and appreciation of regulatory intent, and inconsistent application of regulations.
They urged regulatory agencies to make use of technology to expedite their processes. Marina and BFAR have established joint circulars for mobile registration and licensing. Providing incentives to LGUs that have taken steps to improve their regulatory system would also help, the authors added.
The authors conducted interviews and focus group discussions with regulatory bodies and with the local government of General Santos City, tuna industry associations, commercial tuna fishers, tuna exporters, tuna canners, and municipal fishermen in doing their study. (SDR/SunStar Philippines)
Gov't think tank: Cut regulations in tuna industry in order to be competitive
