You are on page 1of 19

CHAPTER I

INTRODUCTION

Situation Analysis

The Department of Trade and Industry (DTI) is the primary coordinative,

promotive, facilitative, and regulatory arm of the Philippine Government with the

country's trade, industry, and investment activities. With its vision to be more inclusive

and prosperous Philippines with employment and income opportunities for all and its

mission to be the main economic catalyst that enables innovative, competitive, job

generating, inclusive business, and empowers consumers.

It is responsible for realizing the country's goal of globally competitive and

innovative industry and services sector that contribute to inclusive growth and

employment generation. It shall endeavor to improve the business environment, increase

productivity and efficiency, and enhance consumer welfare.

DTI-Region 1 is one of the field operations of the Department of Trade and

Industry (DTI) in the Philippines. It also initiates programs to ensure efficient delivery of

business development services, including the formulation and implementation of policies,

plans, and projects that can benefit MSMEs and also handles implementation of Fair

Trade and consumer protection laws in the Region 1.

Nowadays, many businesses in the Region engage on manufacturing, retailing,

distribution, wholesaling and others. These businesses are monitored and checked

1
intensively by DTI-Region 1 Regional Enforcement and Monitoring Team. With its

mandate to empower and protect the consumers, they ensure that there will be no

substandard and uncertified products and items that are being sold in the market.

The Consumer Protection Division of DTI-Region 1 conducts monthly

monitoring and enforcement activity in the whole Region to safeguard consumers from

these unsafe products. But, there are still businesses in the Region selling substandard

and uncertified mandatory products in the market.

These uncertified and substandard products may cause danger and harm to the

consumers. There are seventy two (72) mandatory products identified by the Bureau of

Philippine Standards who develops, promotes and implements standards and related

programs nationwide. It also participates and represents the country in various standards-

related activities worldwide and an active member of the International Organization for

Standardization (ISO). According to the BPS Memorandum Circular No. 16-05:2016,

series of 2016 dated December 21, 2016, list of products under mandatory certification

are classified into three groups: a.) Electrical and electronic products, b.)

Mechanical/Building and Construction Materials and c.) Chemical and Other Consumer

Products.

According to RA 7394 also known as The Consumer Act of the Philippines, a

substandard product means a product which fails to comply with an applicable consumer

product safety rule which creates a substantial risk of injury to the public. Also,

uncertified product means a product that do not bear proper markings on the product like

the PS (Philippine Standard) Mark and ICC (Import Commodity Clearance) Mark. These

2
required labels or markings convey to the consumers that the products have passed the

safety and performance tests. In addition, the labels and markings will guide them in

distinguishing reliable and safe goods from uncertified ones, which could be inferior or

substandard.

However, despite of the intensive enforcement and monitoring activities being

conducted by the Consumer Protection Division of DTI-Region 1, many establishments

are still selling substandard and uncertified products in the market that is the reason why

this action research was conducted. Furthermore, as a researcher and a member of the

Regional Enforcement and Monitoring Team of DTI-Region 1, the researcher wanted to

know and determined the reasons of business establishments in Region 1 selling

substandard and uncertified products in the market despite of the intensive enforcement

and monitoring activity being conducted by DTI-Region 1 and its effects of using

substandard and uncertified products.

Statement of the Problem

This action research determined the reasons of business establishments in Region

1 selling substandard and uncertified products in the market despite of the intensive

enforcement and monitoring activity being conducted by DTI-Region 1.

Specifically, it answered the following:

1. What are the products under mandatory certification identified by Bureau of

Philippine Standards being monitored by DTI-Region 1 in the market?

3
2. What are the effects of using substandard and uncertified products to the

consumer being sold in the market in Region 1?

3. What are the reasons of business establishments that despite of intensive

enforcement and monitoring activities being conducted by DTI-Region 1 they

still sell substandard and uncertified products?

4. What are the present activities of DTI-Region 1 to mitigate businesses selling

substandard and uncertified products in the market in Region 1?

4
CHAPTER II

METHODOLOGY

Research Design

This action research utilized the qualitative research approach. Qualitative

research is primarily exploratory research. It is used to gain an understanding of

underlying reasons, opinions and motivations. It provides insights into the problem or

helps to develop ideas or hypotheses for potential quantitative research. Qualitative

research is also used to uncover trends in thought and opinions and dive deeper into the

problem. Qualitative data collection methods vary using unstructured or semi-structured

techniques. Some common methods include focus groups (group discussions), individual

interviews and participation/observations. (http://www.snapsurveys.com/blog/what-is-

the-difference-between-qualitative-research-and-quantitative-research/)

Data Gathering

The data collection of this action research usually involves direct interaction with

individuals on a one to one basis or direct interaction with individuals in a group setting.

The researcher, as a member of the DTI-Region 1 Enforcement and Monitoring

Team, interviewed those business owners who were identified sellers of substandard and

uncertified products, observed the conduct of enforcement and monitoring activity and

conduct researches to determine the reasons of business establishments in Region 1

selling substandard and uncertified products in the market despite of the intensive

enforcement and monitoring activity being conducted by DTI-Region 1.

5
CHAPTER III

RESULTS AND DISCUSSION

The following are the results and discussions done from the data.

A. The products under mandatory certification identified by Bureau of

Philippine Standards being monitored by DTI-Region 1 in the market.

For the effective implementation and enforcement of products

under the BPS Product Certification Schemes, the following is the List of

Products Under Mandatory Certification as of 27 December 2016 with

specific product coverage and classified into three (3) groups namely:

Electrical and Electronic Products, Mechanical/Building and Construction

Materials and Chemical and Other Consumer Products.

There are seventy-two (72) mandatory products under BPS

Certification Scheme. These products must bear the PS (Philippine

Standard) Mark and ICC (Import Commodity Clearance Mark.

A. For Electrical and Electronic Product, it classified into four

groups: 1.) Household Appliances, which includes: Electric Fan, Flat

Iron, Kitchen Machine (Blender), Microwave Oven, Rice Cooker, Airpot,

Coffeemaker, CRT, LCD and LED Television Set, CD/VCD/DVD

Players, Toaster, Electric Stove, Hot plate, Washing Machine, Air

Conditioner and Refrigerator; 2.) Lamps and Related Products, includes:

Ballast (pre-heat/magnetic), Ballast (AC supplied electronic), Self-

ballasted lamp/Compact Fluorescent Lamp (CFLs), Christmas

6
Lights/Lighting Chain, Fuseholder, Incandescent Lamp (Bulb), Lamp

holder (Edison Screw), Lamp starter/Glow Starter, Lamp Holder for

tubular fluorescent lamp and starter holder, Fluorescent lamp double

capped, and Fluorescent Lamp single capped; 3.) Wiring Devices,

includes: Circuit Breaker (moulded case, low voltage switchgear and

control gear), Fuse, Plug, Socket-Outlet, Extension Cord, PVC Electrical

Tape, Snap Switch and Knife Switch; 4.) Wires and Cables that includes

Flexible Cords and Thermoplastic Electric Wires.

B. For Mechanical/Building and Construction Materials the

following products are included, namely: Black Iron (BI) and Galvanized

Iron (GI) Steel Pipes, Portland Cement, Blended Hydraulic Cement with

pozzolan, Deformed Steel Bars, Equal-leg Angle Bars, Polybutylene (PB)

Pipes, Polyethylene (PE) Pipes for portable water supply, Unplasticized

Polyvinyl Chloride (uPVC) pipes for portable water supply, PVC rigid

electrical conduit, PVC-U pipes for drain waste and vent, Rerolled steel

bars, Sanitary Wares, Low-carbon Steel Wires, Wire Nails (finishing).

C. For Chemical and Other Consumer Products, it includes Brake

Fluid, Portable Fire Extinguisher Dry Chemical, Portable Fire

Extinguisher Foam, Portable Fire Extinguisher Carbon Dioxide,

Portable Fire Extinguisher Clean Extinguishing Agent - Halon

Substitute, Fireworks, Helmet and its Visor, Inner tube for pneumatic tire,

Lead-acid Storage Battery, Lighter, LPG cylinder for household use, LPG

cylinder repair, LPG cylinder requalification (c/o PAB), LPG cylinder for

7
automotive, LPG system Code of Practice, Auto LPG/CNG retrofit

systems, Safety Match, Medical Grade Oxygen, Monobloc Chair/Stool,

Pneumatic Tire, Safety Belt (seat belts) and Safety glass for automotive

application.

B. The effects of using substandard and uncertified products to the consumer

being sold in the market in Region 1.

There are many effects of using substandard and uncertified products in

the consumers and in our society. Generally, it affects the life, property, health

and safety of the people.

According to RA 7394 also known as The Consumer Act of the

Philippines, a substandard product means a product which fails to comply with

an applicable consumer product safety rule which creates a substantial risk of

injury to the public. Also, uncertified product means a product that do not bear

proper markings on the product like the PS (Philippine Standard) Mark and ICC

(Import Commodity Clearance) Mark. These required labels or markings convey

to the consumers that the products have passed the safety and performance tests.

In addition, the labels and markings will guide them in distinguishing reliable and

safe goods from uncertified ones, which could be inferior or substandard.

For Electrical and Electronic Products, one of the effects of using of

substandard and uncertified products is fire. Using of substandard wires and

cables are vulnerable to electrical faults because they are weak and cannot

withstand the specified current capacity which original materials can withstand,

8
and secondly they are less sensitive to fault which prolongs the stress of the fault

current thereby resulting to fire outbreak. Also, for wiring devices like Circuit

Breaker, Fuse, Plug, Socket-Outlet, Extension Cord, PVC Electrical Tape, Snap

Switch and Knife Switch, substandard and uncertified items like these may cause

electric shocks. Many cases of electric shocks were recorded because of using

substandard wiring devices. Always check the plug and socket for burn marks,

sounds of arcing (buzzing or cracking), fuses blowing, circuit breakers tripping

or it feels hot. Use plugs with the PS (Philippine Standard) mark or ICC (Import

Commodity Clearance) Mark for safety, they have live and neural pins with

insulating sleeves that allow the consumers to put them in and pull them out of

sockets safely. Further, always replace damaged cables and wires immediately.

Touching exposed live wires may give you an electric shock or you could even be

killed. For household appliances, like Electric Fan, Flat Iron, Blender, Microwave

Oven, Rice Cooker, Airpot, Coffeemaker, Television Set, CD/VCD/DVD Players,

Toaster, Electric Stove, Hot plate, Washing Machine, Air Conditioner and

Refrigerator over heating of the products is one of the effect of using substandard

products. This may result to the decrease of the life span of the appliances and it

can cause high electric consumption.

For Mechanical/Building and Construction Materials like Black Iron (BI)

and Galvanized Iron (GI) Steel Pipes, Portland Cement, Blended Hydraulic

Cement with pozzolan, Deformed Steel Bars, Equal-leg Angle Bars, Polybutylene

(PB) Pipes, Polyethylene (PE) Pipes for portable water supply, Unplasticized

Polyvinyl Chloride (uPVC) pipes for portable water supply, PVC rigid electrical

9
conduit, PVC-U pipes for drain waste and vent, Rerolled steel bars, Sanitary

Wares, Low-carbon Steel Wires, Wire Nails (finishing), using substandard and

uncertified items like these has also effects to our safety and health. Specifically,

in construction purposes, using substandard building materials may cause easy

collapse of the building especially of not using the proper steel bars needed in the

construction. Also, using of substandard and uncertified products may cause low

quality of construction output because the required materials used are not in the

required standards and it could affect later on the life of the people.

For Chemical and other consumer products like Brake Fluid, Portable Fire

Extinguisher Dry Chemical, Portable Fire Extinguisher Foam, Portable Fire

Extinguisher Carbon Dioxide, Portable Fire Extinguisher Clean Extinguishing

Agent - Halon Substitute, Fireworks, Helmet and its Visor, Inner tube for

pneumatic tire, Lead-acid Storage Battery, Lighter, LPG cylinder for household

use, LPG cylinder repair, LPG cylinder requalification (c/o PAB), LPG cylinder

for automotive, LPG system Code of Practice, Auto LPG/CNG retrofit systems,

Safety Match, Medical Grade Oxygen, Monobloc Chair/Stool, Pneumatic Tire,

Safety Belt (seat belts) and Safety glass for automotive application buying

substandard and uncertified products like these has great bad effect on your life

and safety. For health, it can cause many respiratory illnesses especially when the

chemicals inside these products explode. Consumers are able to acquire these

chemicals that results to some illnesses. For safety, it can cause accident and

worst death.

10
As a rule, all products or services conducted by service provider on

particular products covered by Philippine Standard Certification Mark Schemes

must carry and display on the product itself all necessary product or service

identification marks required by and in the manner specified in the applicable

Philippine National Standard. In case a product does not allow marking to be

carried by and displayed on the product itself, the product's packaging, labels,

identifying tags, or container, must bear and clearly display the required product-

related information and markings as specified in the applicable Philippine

National Standard and its implementing guidelines. All marks and markings shall

be clear and legible, and must not be misleading. Whichever applies, product

labels, identifying tags, or product packaging must clearly bear and show the

standard PS Quality and or PS Safety Mark and ICC Mark in the manner required

under DAO 1, Series of 1997 and DAO 5, Series of 2001, respectively, and their

subsequent amendments or revisions, which shall form an integral part thereof

without danger of being erased or detached under ordinary handling of the

product. In case of deformed steel bars, logos that are used shall be as registered

with and as approved by the Bureau of Philippine Standards. The importer shall

indicate the ICC number on the product, container or tag whichever is applicable

as determined by DTI/BPS.

C. The present activities of DTI-Region 1 to mitigate businesses selling

substandard and uncertified products in the market in Region 1.

Regional Enforcement Team of DTI-Region 1 conducts monthly

enforcement and monitoring activity to the business establishments in the Region.

11
It aims to safeguard the interest of consumers and maintain fair trade. This will

ensure conformity of manufacturers, importers, traders, wholesalers, distributors

on prescribe standards and fair trade laws. It ensures also that no substandard and

uncertified products are being sold in the market. However, many complaints are

still forwarding to DTI-Region 1 despite of this intensive enforcement and

monitoring activities being conducted monthly. Also, in conducting enforcement

to business establishments, many substandard products are being displayed in the

cabinet or business establishment premises.

Aside from intensive enforcement and monitoring, DTI-Region 1 also

accredits Consumer Welfare Desk. It aims to forge efforts between the

government and private sector in the promotion of consumer welfare and develop

self-policing mechanism and responsible entrepreneurship. It establishes

procedures to systematically and appropriately address consumer complaints

regarding substandard and uncertified products and others. Furthermore, it will

provide easier access to government programs, new laws and policies and will

serve as a multiplier for the government in providing services such as queries,

complaints resolution without going through tedious litigation process.

In addition, the BAGWIS program of the Department of Trade and

Industry. The DTI Bagwis Program (formerly known as the DTI - Certified

Business Establishment Program) was launched on 26 July 2006. The program

aims to give due recognition to establishments that uphold the rights of consumers

and practice responsible business where consumers get value for money. It main

objectives for business establishments to create an environment where

12
entrepreneurs uphold fair and honest business practices through voluntary self-

regulation.; and for consumers to ensure that quality and safe goods, products,

services at affordable prices are available at DTI-certified establishments. If the

business establishment is a BAGWIS awardees meaning it is compliance to the

Fair Trade Laws ( Price Act, Price Tag, Labelling and Standards Law) and all the

products displayed and sold bears Philippine Standard (PS) or International

Commodity Clearance (ICC) marks for mandatory products and products sold

that are under the mandatory certification of the BPS are genuine/original.

Also, Consumer Education and Advocacy are being conducted in Region

1. Empowering consumers is one of the main thrust of DTI. Hence, consumer

education and information drives are intensified to widen its reach. It aims to

inform consumers on their basic rights and responsibilities based on RA 7394 or

the Consumer Act of the Philippines. Aside from consumers, business

establishments are also engaged in this program. DTI conducts Consumer

Advocacy and Education for them to broaden their knowledge on the correct and

certified products needed and must be sold in the market.

D. The reasons of business establishments that despite of intensive

enforcement and monitoring activities being conducted by DTI-Region 1 they

still sell substandard and uncertified products.

During the conducted of Regional Enforcement and Monitoring Team in

Region 1, many business establishments are caught of selling substandard and

uncertified products. These substandard and uncertified products are being

13
confiscated by the Team and destroyed to prevent these items to be used again.

Also, those establishments will pay necessary fines as per DAO 2, Series of 2007

states that the fines to be imposed are based on the nature of the offense and the

frequency of violation, considering among others the attendant aggravating or

mitigating circumstance, size of the industry or of the business establishment.

Other penalties/sanctions being imposed are closure of the business establishment

for a period not exceeding one year; ordering the respondent to recall, replace,

repair, or refund the money value of defective products distributed in commerce;

and/or ordering the respondent to reimburse the complainant the expenses and the

costs incurred in prosecuting the case in the Department.

Based on the interview and observation conducted during the enforcement

and monitoring activity conducted by the Regional Enforcement and Monitoring

Team in Region 1, there are reason why these businesses are still selling

substandard and uncertified products in the market. First, the price of the

substandard products is cheaper compared to the genuine. From the distributor to

the retailers, of course, retailers wants to buy those cheaper ones to gain more

profit and increase its sales without knowing the effect of buying these

substandard and uncertified products. Consumers are the ones who are affected on

this problem.

Second, lack of awareness of the seller on the proper markings like PS

(Philippine Standard) Mark and ICC (Import Commodity Clearance) Mark on the

product. Some business establishments have no knowledge on the guidelines and

proper markings that a product must bear with. Some business establishments do

14
not attend on Consumer Education and Advocacy being conducted by the DTI-

Region 1 that results to the seller to buy from distributor substandard and

uncertified products.

Lastly, business establishment are still keeping those unconfiscated

substandard and uncertified products on their Stackhouse or Warehouses despite

of intensive enforcement and monitoring being conducted by DTI-Region 1. After

the Enforcement Team left the business establishment, business owners will

decide to bring out those unconfiscated products and try to sell it again to the

public. This results why still there are substandard and uncertified products being

sold in the market.

15
CHAPTER IV

SUMMARY, FINDINGS AND RECOMMENDATIONS

SUMMARY

Nowadays, many businesses in Region 1 engage on manufacturing, retailing,

distribution, wholesaling and others. These businesses are monitored and checked

intensively by DTI-Region 1. However, many business establishment are selling

substandard and uncertified products in the market.

This action research determined the reasons on business establishments in Region

1 selling substandard and uncertified products in the market despite of the intensive

enforcement and monitoring activity being conducted by DTI-Region 1. Specifically, it

answered those products under mandatory certification identified by Bureau of Philippine

Standards being monitored by DTI-Region 1 in the market, the effects of using

substandard and uncertified products to the consumer being sold in the market in Region

1, the reasons of business establishments that despite of intensive enforcement and

monitoring activities being conducted by DTI-Region 1 they still sell substandard and

uncertified products and the present activities of DTI-Region 1 to mitigate businesses

selling substandard and uncertified products in the market in Region 1.

This action research utilized the qualitative research approach. Qualitative

research is primarily exploratory research. It is used to gain an understanding of

underlying reasons, opinions and motivations. It provides insights into the problem or

helps to develop ideas or hypotheses for potential quantitative research. Qualitative

16
research is also used to uncover trends in thought and opinions and dive deeper into the

problem. The researcher, as a member of the DTI-Region 1 Enforcement and Monitoring

Team, interviewed those business owners who were identified sellers of substandard and

uncertified products, observed the conduct of enforcement and monitoring activity and

conduct researches to determine the reasons of business establishments in Region 1

selling substandard and uncertified products in the market despite of the intensive

enforcement and monitoring activity being conducted by DTI-Region 1.

FINDINGS

The following are the findings of this action research:

1. There are seventy-two (72) mandatory products under BPS Product

Certification Scheme and classified into three (3) groups namely: Electrical

and Electronic Products, Mechanical/Building and Construction Materials and

Chemical and Other Consumer Products.

2. There are many effects of using substandard and uncertified products in the

consumers and in our society. Generally, it affects the life, property, health

and safety of the consumers which causes fire, danger, electric shocks, low

quality on construction purposes and many respiratory illnesses.

3. The present activities of DTI-Region 1 to mitigate businesses selling

substandard and uncertified products in the market in Region 1 are intensive

enforcement and monitoring on business establishments, accreditation of

Consumer Welfare Desk, conduct of Consumer Education and Advocacy and

17
the DTI BAGWIS program. All these activities are being implemented by the

agency to ensure that consumers may get best value from their money.

4. There are reasons of business establishments that despite of intensive

enforcement and monitoring activities being conducted by DTI-Region 1 they

still sell substandard and uncertified products. The price of the substandard

products is cheaper compared to the genuine. Lack of awareness of the seller

on the proper markings like PS (Philippine Standard) Mark and ICC (Import

Commodity Clearance) Mark on the product. Lastly, business establishment

are still keeping those unconfiscated substandard and uncertified products on

their Stackhouse or Warehouses despite of intensive enforcement and

monitoring being conducted by DTI-Region 1.

RECOMMENDATIONS

Based on the above findings, the following recommendations are suggested:

1. The Regional Enforcement and Monitoring Team of DTI-Region 1 should

conduct twice a month intensive enforcement and monitoring activity

especially on the manufacturers, distributors and retailers in the Region.

Enforcement team should be divided into two groups. One group for Ilocos

Sur and Ilocos Norte and the other group is for La Union and Pangasinan.

Enforcers from Ilocos Sur and Ilocos Norte should enforce in La Union and

Pangasinan while enforcers from La Union and Pangasinan should likewise

enforce the Ilocos Sur and Ilocos Norte area. This will prevent familiarity of

enforcers.

18
2. The Regional Enforcement and Monitoring Team of DTI-Region 1 should

conduct regularly the surprise inspection and enforcement activity in the

Region and coordinate with Philippine National Police (PNP) for some

assistance needed especially during the conduct of enforcement and

monitoring to avoid misunderstanding especially some of business owners are

arrogant and bigheaded.

3. Procurement of new and advanced Instrument Measuring and Testing

Equipment (IMTEs) to the Regional Enforcers to be used in the conduct of

intensive enforcement and monitoring activity. This will help them distinguish

the product from substandard and uncertified to genuine.

4. Aside from the conduct of Consumer Education and Advocacy to the

consumer, DTI-Region 1 should make or conceptualize infomercials to be

aired in the television, radio, and other social media sites. This will strengthen

the awareness of the consumers on standards, products that are substandard

and uncertified and the effects of using it.

5. Encourage more business establishment to acquire the BAGWIS program of

DTI. By doing this, these establishments that will be BAGWIS awardees will

be partner with the DTI because they uphold the rights of consumers and

practice responsible business where consumers get value for money. Also,

products being sold in this establishments are safe and genuine.

19

You might also like