Most port stakeholders in a recent survey conducted by PortCalls said they have lost some 20% of their revenue since the Manila City truck ban took effect on February 24.
In a survey among delegates who attended the Cargo Transport Summit 2 on July 15, an overwhelming 80% of 45 industry players—composed of manufacturers, importers, exporters, and cargo transport service providers—called for the lifting of the policy.
Of the total respondents, 67% said they had incurred more than 20% in revenue losses since then, while about 13.3% said they lost 15% to 20% of their revenue. The rest said their losses were less than 15%.
One of those polled said the “free movement of goods is vital to the country” and that “constricting it with different types of restrictions is similar to clogging the veins of a person, leading to a ‘heart attack’ or a ‘stroke.’”
The player suggested instead “it will be better to think of ways to limit private vehicles than limit commercial vehicles.”
A garment manufacturer said the truck ban was costing the sector in terms of production delays, higher production costs and delayed sailing of exports. A “rotation” system was also being adopted due to lack of raw materials, and goods were being shipped by air to meet export commitments. These were on top of higher trucking costs as well as detention and demurrage charges that most sectors were having to deal with.
A cargo transport service provider suggested that the industry be “represented by a partylist” in Congress.
A trader said there should be a regulatory body for shipping lines where traders could file their complaints against demurrage and detention charges, while another service provider requested for “a centralized body to apprehend all violations related to transportation.”
A solid 80% of the respondents said they were paying more than 20% of the usual trucking rates, and some said the rates had even gone up by as much as 100% to 300%.
Truckers earlier increased their rates by at least 50% due to the longer turnaround caused by the limited operating hours.
Truck supply was further restricted after the release of a joint memorandum order by the Department of Transportation and Communications and two of its attached agencies that increased fines on trucks operating without a franchise. Many trucks currently operating have a green plate, indicating they have no franchise.
Accreditation concerns
Meanwhile, aside from the truck ban and port congestion issues, those who answered the PortCalls survey said they were also being bogged by the new accreditation rules for importers and brokers.
Of the total surveyed, 60% said the new accreditation rules from the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) were unclear to them.
Of the total, 31.1% said they were not sure they could meet the July 31 deadline for accreditation set by the two agencies’ mother unit, the Department of Finance. About 26.6% said they would not and 24.4% said they would. Others did not answer because the rules did not apply to them (for example, shipping lines, warehouse operators, etc).
The BIR said that, as of July 15, its Accounts Receivable Monitoring Division had received 11,000 applications, and more than 600 of these had been acted upon.
The BOC’s Accounts Management Office, on the other hand, had processed 2,000 applications.
A manufacturer-exporter called for simplifying the BOC and BIR accreditation procedure, while a service provider called for clear rules and regulations with “no loopholes.”
Another manufacturer asked the government to “make sure new requirements will eliminate smugglers and not only to make legal importers suffer.”
The manufacturer added, “Government agencies should have a detailed plan [on] how to implement new requirements to avoid confusion.”
Corruption at customs
On another note, a significant 60% of the group surveyed said corruption levels at the BOC had remained the same despite the new leadership. About 9% said there was less corruption, while 11.1% said there was increased corruption in the country’s second largest revenue-generating agency.
One trader noted that “replacements are also corrupt.”
Reforms at the BOC began in the fourth quarter of last year, which saw the replacement of numerous personnel and the return of many to their original plantilla positions. This left vacancies in some offices that the agency will fill by hiring around 1,500 new personnel in the coming months, according to BOC Deputy Commissioner Atty. Agaton Teodoro Uvero of the Assessment and Operations Coordinating Group. – Roumina Pablo
Image courtesy of franky242 / FreeDigitalPhotos.net
