A. TOTAL EXTERNAL TRADE AND BALANCE OF TRADE

1. Total external trade decreased

In January 2023, the country’s total external trade in goods amounted to USD 16.20 billion, which indicates an annual decline of -2.4 percent from its level in the same period of the previous year. In December 2022, its annual decrease was recorded at -8.9 percent, while in January 2022, it expanded at an annual rate of 18.8 percent. (Figure 1, and Tables A, 1, and 2)

Of the total external trade in January 2023, 67.7 percent were imported goods, while the rest were exported goods.

2. Trade deficit posted an annual increase

The balance of trade in goods (BoT-G) is the difference between the value of export and import. The BoT-G in January 2023 amounted to USD -5.74 billion, indicating a trade deficit with an annual increase of 27.2 percent. The trade deficit in the previous month recorded an annual decline of -11.9 percent, while it posted an annual increase of 57.0 percent in January 2022. (Figure 1, and Tables A and 2)

B. EXPORTS

1. Sales from export posted a negative growth

The country’s total export sales in January 2023 amounted to USD 5.23 billion, reflecting further an annual decrease of -13.5 percent from a decrement of -7.7 percent in the previous month. In January 2022, the total export sales grew at an annual rate of 8.9 percent. (Figures 1 and 2, and Tables A and 2)

Of the top 10 major commodity groups in terms of FOB value of exports, six commodity groups recorded annual decreases in January 2023. These were coconut oil (-39.1%), cathodes and sections of cathodes, of refined copper (-39.0%), metal components (-19.8%), electronic products (-19.2%), chemicals (-14.6%), and other manufactured goods (-11.9%). (Tables B and 3)

2. Electronic products commodity group remained the highest on export sales

By commodity group, electronic products continued to be the country’s top export in January 2023 with total earnings of USD 2.83 billion, which accounted for 54.2 percent of the total exports during the period. This was followed by other mineral products with an export value of USD 290.17 million (5.5%); and other manufactured goods, which amounted to USD 282.22 million (5.4%). (Figure 3 and Table 3)

3. Manufactured goods still comprised the largest portion of total exports among major types of goods

By major type of goods, exports of manufactured goods contributed the largest to the country’s total exports in January 2023 amounting to   USD 4.17 billion (79.8%). This was followed by mineral products with a share of USD 541.87 million (10.4%); and total agro-based products, which contributed USD 373.14 million (7.1%). (Figure 4 and Table 4)

4. Japan contributed the highest to the total export value

By major trading partner, exports to Japan comprised the highest export value amounting to USD 866.25 million or a share of 16.6 percent to the country’s total exports during the month.

Completing the top five major export trading partners with their export values and percent shares to the total exports were:

a. United States of America (USA), USD 738.26 million (14.1%);
b. People’s Republic of China, USD 666.99 million (12.7%);
c. Hong Kong, USD 530.16 million (10.1%); and
d. Singapore, USD 318.47 million (6.1%). (Figure 5 and Table 5)

5. Majority of exports were for Asia-Pacific Economic Cooperation countries

By economic bloc, majority of the country’s merchandise exports in January 2023 went to the Asia-Pacific Economic Cooperation (APEC) countries with a share of USD 4.32 billion (82.6%) to the total exports. This was followed by East Asia, valued at USD 2.49 billion (47.6%), and the Association of Southeast Asian Nations (ASEAN) at USD 948.12 million (18.1%). (Figure 6 and Table 6)

6. Eastern Asia contributed the highest export value by geographic region

By geographic region, Eastern Asia comprised the highest export value in January 2023 amounting to USD 2.49 billion (47.6%). This was followed by Southeastern Asia with an export value of USD 948.16 million (18.1%) and Northern America with USD 770.00 million (14.7%) worth of export value. (Figure 7 and Table 13)

C. IMPORTS

1. Import value increased in January 2023

The total imported goods in January 2023 amounted to USD 10.97 billion, indicating an annual increase of 3.9 percent.  In December 2022, it recorded an annual reduction of -9.6 percent, while in January 2022, it exhibited a double-digit annual increase of 25.3 percent. (Figures 1 and 8, and Tables A, 1, and 2)

The annual increment in the value of imported goods in January 2023 was due to the increases in the values of seven of the top 10 major commodity groups in terms of FOB value, with metalliferous ores and metal scrap recording the fastest annual increase of 333.5 percent. This was followed by mineral fuels, lubricants and related materials, which increased by 70.6 percent annually; and telecommunication equipment and electrical machinery by 15.2 percent. (Tables C and 7)

2. Electronic products accounted for the highest import value among commodity groups

Most of the imported goods in January 2023 were electronic products with an import value of USD 2.44 billion or a share of 22.2 percent to the total imports. This was followed by mineral fuels, lubricants and related materials, which was valued at USD 2.06 billion (18.8%); and transport equipment, which amounted to USD 890.00 million (8.1%). (Figure 9 and Table 7)

3. Imports of raw materials and intermediate goods contributed the highest among major types of goods

By major type of goods, imports of raw materials and intermediate goods accounted for the largest share to the country’s total imports amounting to USD 3.91 billion (35.6%).  Imports of capital goods ranked second with a share of USD 3.16 billion (28.8%), followed by mineral fuels, lubricants and related materials with an import value of USD 2.06 billion (18.8%).

Imports of mineral fuels, lubricants and related materials recorded a positive annual growth rate of 70.6 percent compared with its value of USD 1.21 billion in the same month of the previous year. (Figure 10 and Table 8)

4.  People’s Republic of China had the highest import value

The People’s Republic of China was the country’s biggest supplier of imported goods valued at USD 2.32 billion or 21.1 percent of the total imports in January 2023.

Completing the top five major import trading partners for this month with their corresponding import values and percent shares to the total imports were:

a. Indonesia, USD 1.16 billion (10.6%);
b. Japan, USD 958.70 million (8.7%);
c. Republic of Korea, USD 866.19 million (7.9%); and
d. USA, USD 696.99 million (6.4%). (Figure 11 and Table 9)

5. Imports came largely from APEC member countries

By economic bloc, APEC countries were the biggest suppliers of the country’s imported goods in January 2023 with a share of USD 9.26 billion (84.4%). This was followed by East Asia with an import value of USD 4.84 billion (44.1%) and ASEAN with USD 3.17 billion (28.9%). (Figure 12 and Table 10)

6. Eastern Asia contributed the highest import value among geographic region

By geographic region, Eastern Asia had the highest import value of USD 4.84 billion (44.1%) in January 2023. This was followed by Southeastern Asia with import value amounting to USD 3.17 billion (28.9%) and Northern America valued at USD 774.74 million (7.1%). (Figure 13 and Table 13)

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

TECHNICAL NOTES

I. Introduction

The Philippine Statistics Authority (PSA) serves as the central authority of the government that compiles and generates International Merchandise Trade Statistics (IMTS) or commonly known as Foreign Trade Statistics. IMTS is one of the designated statistics released by PSA which was approved under Executive Order No. 352.

IMTS is compiled by PSA from the copies of export and import documents submitted to the Bureau of Customs (BOC) by exporters and importers or their authorized representatives as required by law.

This Press Release features the highlights of the Philippine Export and Import Statistics for January 2023 (Preliminary).

All documents (hard copies and electronic files) received within the cut-off date, which is every 25th day of the month, are compiled, processed, summarized, analyzed, and disseminated through statistical tables and releases. The processing includes coding, editing, reviewing, and validating results.

I.1. Objective

IMTS is compiled to serve the needs of many users, including the government; the business community; compilers of other economic statistics such as the balance of payments and national accounts; various regional, supranational, and international organizations; researchers; and the public at large.

The main uses are as inputs to the following:
1.  Computing Balance of Payments (BOP) by BSP;
2.  Estimating National Accounts of the Philippines (NAP) by PSA;
3.  Formulating national, regional, and international policies by National Economic Development Authority (NEDA) and Department of Trade and Industry (DTI); and
4.  Other pertinent activities such as research studies on trade by public and private entities.

I.2. Historical Background

In 1973, the former National Statistics Office (NSO) became the sole agency to compile foreign trade statistics.  Prior to this period, the Central Bank of the Philippines (now known as the Bangko Sentral ng Pilipinas) also compiled and released foreign trade data.  However, the differences in the concepts used by these two agencies resulted in conflicting foreign trade data. This led to an agreement that made NSO (now the PSA) the sole compiler of the official foreign trade statistics.

I.3. Coverage

The IMTS relate to the movements of goods between the Philippines and other countries and areas by sea or air, whether the goods are for private or government use or commercial purposes, gifts, or donations. However, the following classes of goods are excluded from the compilation of IMTS:

a. Goods simply being transported through a country, includes goods under “in transit” or “in transshipment” customs procedures;
b. Goods temporarily admitted or dispatched;
c. Monetary gold;
d. Issued banknotes and securities and coins in circulation;
e. Goods consigned to and from the territorial enclaves;
f. Goods under merchanting;
g. Goods under operating lease;
h. Goods lost or destroyed after ownership has been acquired by the importer;
i. Goods functioning as means of transport;
j. Content delivered electronically;
k. Goods for repair or maintenance;
l. Waste and scrap with no commercial value;
m. Goods entering or leaving the economic territory of a country illegally;
n. Goods treated as part of the trade in services;
o. Fish and other marine products landed by Philippine vessels direct from the sea;
p. Stores and fuels purchased abroad by ships and aircraft of the Philippine registry;
q. Goods sent through parcel post; and
r. Goods with Free on Board (FOB) value less than USD 25.

II. Data Collection

II.1. Data Collection Procedure

The PSA regularly receives copies of export and import declaration in electronic format provided by the BOC as stipulated in the Memorandum of Agreement (MOA) on the Electronic Exchange of Information between the BOC and the PSA.

Other export and import documents (hard copy) that did not pass through the online system of the BOC and its authorized VASPs are collected by the Central Office (CO) staff from the BOC collection points located in the National Capital Region (NCR) three times a week. Provincial Office staff collects the hard copies of export documents from the BOC collection points located in areas outside NCR at least once a week to complete the monthly coverage of the export and import statistics. 

II.2. Sources of Information

The PSA regularly collects the following documents which are the sources of trade data:

a. Export Declaration (ED);
b. Informal Import Declaration and Entry (IIDE); and
c. Single Administrative Documents (SAD) for Export Declaration (ED) and Import Entry and Internal Revenue Declaration (IEIRD).

The electronic copies of the SAD-ED and SAD-IEIRD that pass through the Automated Export Documentation System (AEDS) and Electronic to Mobile (E2M) System are provided by BOC and its authorized Value Added Service Providers (VASPs) to PSA every month, through email and via shared Google Drive.

These electronic copies of export and import documents are utilized to generate export and import statistics together with the processed hard copy documents collected at ports located at NCR and outside NCR.

II.3. Data Items

A. Export Declaration (ED)

The ED form contains fifty-two (52) boxes or items of information. Export trade statistics are obtained from the eleven of the boxes as follows:

B. Import Entry and Internal Revenue Declaration (IEIRD)

The form is divided into sixty-nine (69) boxes with boxes 1 - 52 on the first page and boxes 53-69 on the back page of the document. The latter refers to all the charges and obligations of the importer when the transactions occur. Of the information, import data are obtained in 14 of the boxes as follows:

II.4. Other Related Topics

The Philippines adopts the "General" trade system of recording foreign trade statistics. The customs frontier (not the national boundary) is used as the statistical frontier. Under this system, all goods entering any of the seaports or airports of the Philippines properly cleared through customs, remaining or under customs control are considered imports, whether the goods are for direct consumption, merchandising, warehousing, or further processing. On the other hand, all goods leaving the country, which is properly cleared through customs, are considered exports. A distinction, however, is made between export for goods grown, mined, or manufactured in the Philippines (domestic exports) and exports of imported goods that do not undergo physical and/or chemical transformation in the Philippines (re-exports).

III. Methodology

The compilation of IMTS is generated from the administrative records of export and import declarations provided by the BOC. 

III.1.Time of Recording

As a general guideline stipulated in the 2010 IMTS Compilers Manual, it is recommended that goods be recorded at the time when they enter or leave the economic territory of a country. The Date of Registry of the exported or imported goods in the BOC is used as the proxy date in recording the time when the goods enter or leave the economic territory.

III.2. Customs Procedures

A customs procedure is a “treatment applied by the customs to goods which are subject to customs control”.  The customs procedure is the basis for the correct identification of the flows of goods for inclusion or exclusion under general or special trade. Customs usually apply a system of codes that allows flows of goods to be identified and prevents the double recording of the goods which have undergone several customs procedures.

III.3. Classification of Commodities

The 2022 Philippine Standard Commodity Classification (PSCC) is used to classify the commodities at the 11-digit code level for statistical purposes. The 2022 PSCC is the latest revision of the country's commodity classification. It is a detailed classification of all commodities on imports and exports being used for tariff and statistical purposes.                   The 2022 PSCC is an integration of the 2022 ASEAN Harmonized Tariff Nomenclature (AHTN) based on the Harmonized Commodity Description and Coding System (HS) issued by the World Customs Organizations (WCO) and the Standard International Trade Commodity (SITC) Revision 4, by the United Nations Statistics Division (UNSD).

IV. Concepts and Definitions of Terms

Balance of trade refers to the difference between the export and imports of goods. A positive value indicates a favorable trade balance while a negative value indicates an unfavorable trade balance.

Domestic export refers to goods grown, mined, or manufactured in the Philippines that go out of the Philippine territory.

Export declaration refers to the document required for every shipment of goods that leaves the jurisdiction of the Philippines wherein the exporter or his duly representative declares and certifies the full particulars of a shipment.

Imports refer to all articles, wares, goods, or merchandise of every kind or class entering the jurisdiction of the Philippines from any foreign port, either with intent to unload therein, or which, after such entering, are assumed therein, or incorporated in the general mass or property of the Philippines.

Free on board (FOB). This term means that the seller’s obligation to deliver is fulfilled when the goods have passed over the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point.

Cost, insurance, and freight (CIF). The seller has the same obligations as
under CFR, but with the addition that he/she has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium.

V. Dissemination of Results and Revision

V.1. Dissemination of Results

All documents (hard copies and electronic files) received within the cut-off date, which is every 25th day of the month, are compiled, processed, summarized, analyzed, and disseminated through monthly statistical tables and press releases.

Preliminary results of export and import statistics are disseminated in the form of press releases. The press release is disseminated every 40th day after the reference month. However, if the 40th day falls on a Saturday, the release is made a day earlier (Friday). If it falls on a Sunday or Monday, the release is on Tuesday. Moreover, if the release date falls on a holiday, the date of release is moved accordingly. Preliminary results are posted on the PSA website (www.psa.gov.ph).

V.2. Revision Policy

All documents received after the cut-off date are included in the generation of the revised results. The revised data of the previous month are reported during the release of the preliminary report for the current month. Revisions are made for the previous months until the annual report is released three months after the reference year. These revised data are reflected in the annual publication of the IMTS.

Moreover, all documents received from April to December after the reference year are included in the second revision of the annual export and import statistics. The revised data are reported 15 months after the reference year.

VI. Citation

Philippine Statistics Authority. 07 March 2023. Highlights of the Philippine Export and Import Statistics for January 2023 (Preliminary). https://psa.gov.ph/statistics/foreign-trade

VII. Contact Information

Ma. Julieta P. Soliven
Chief Statistical Specialist
Trade Statistics Division
8376-1975
j.soliven@psa.gov.ph

For data requests, you may contact the:
Knowledge Management and Communications Division
Telephone: (02) 8462-6600 locals 839, 833 and 834
E-mail: info@psa.gov.ph