Date

4-2009

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jaime Kim E. Bayani

Abstract

Soap manufacturing is a relatively new subsector of the Philippine Cosmetic Industry. In the beginning of 2008, the implementation of the ASEAN Harmonized Cosmetic Regulatory Scheme (AHCRS) in the country has posed new challenges to small scale soap producers because of the regulation’s high capital requirements. This study intends to see the initial reactions of small scale soap manufacturers to the implementation of the AHCRS in the country. Specifically, this paper presents the current situation of the local soap industry and lists down the top trading partners of the country. Furthermore, this study also estimates the actual cost and process of complying with the new regulation. The reactions of the SMEs were obtained and the industry’s willingness to spend to comply with the regulation was also acquired. From the data acquired, a comparison of local regulations pre and post AHCRS was made. The comparison shows how the implementation of the AHCRS made it harder for local soap manufacturers to enter the market because of its registration and product notification requirements. On the international scale on the other hand, specifically concerning the country’s major soap trading partners, the implementation of the AHCRS seems to have the largest effect on the listing for banned and regulated ingredients and labeling information. A survey concerning the reactions of the small and medium enterprises to the implementation of the AHCRS, and their willingness to spend to comply with the regulations was conducted. The results of the survey showed that most local firms believe that the AHCRS is of little help to the soap industry. Results also show that with the current capital of small scale soap manufacturers only a select few will be able to fully comply with the requirements of the AHCRS while majority of the local producers will continue to do business despite failing to satisfy the new regulation.

Language

English

Call Number

LG 993.5 2009 E2 D48

Document Type

Thesis

Download

Share

COinS