Philippine exporters are urging Customs Commissioner John Philip Sevilla to sign a draft customs memorandum order (CMO) amending CMO 24-2001, which prescribes rates for container yard/container freight stations (CY/CFS), in order to rein in soaring charges.
The request comes amid reports that Sevilla is looking at deregulating the sector by scrapping the BOC-set rates under CMO 24-2001.
A PortCalls source at the BOC described the commissioner as a “numbers guy” who appreciates the value of competition and would much rather let market forces dictate off-dock CY/CFS charges.
The commissioner believes the BOC should not be in the business of rate-setting to begin with, the source added.
In case deregulation is made a policy, the source said Sevilla would also likely open the field to other offdock CY/CFS operators. Right now there are 11 accredited by the bureau.
High rates
In a position paper dated April 15 obtained by PortCalls, the Philippine Exporters Confederation (Philexport) said the delay in issuing and implementing the CMO “has resulted in rates that are now more than double the pre-CMO 24-2001 levels, per informal reports from our members.”
Philexport in their letter to Sevilla argued, “Cargo owners, particularly the micro, small and medium enterprises cannot absorb the increase anymore, nor can they pass it on to their buyers or they will lose current and even future orders.”
The group said any new rates should be “within the inflation rate at the time of adjustment” and that they should be based on consultation among all stakeholders.
They pointed out the current prevailing high rates have stemmed from a resolution by off-dock CY/CFS operator-members of the Association of Off-dock CY/CFS Operators of the Philippines (ACOP) to raise their rates in the meantime that the CMO is pending.
“We strongly oppose this resolution, which is against due process, in addition to the fact that they are unjustified and unlawful, since the existing CMO has not been repealed yet and is therefore still enforced,” Philexport said.
The ACOP last year issued the resolution on interim rates that its members enforce on a voluntary basis pending issuance of a BOC memo amending the rates under CMO 24-2001.
Even before the ACOP resolution was released, the BOC issued a memorandum ordering all CY/CFS operators to strictly follow CMO 24-2001, rates that were prescribed in 2001.
Stakeholders led by freight forwarders gathered in a forum on CY/CFS rates early in the year, and a survey PortCalls conducted during the event showed many participants considered the ACOP interim rates “too high”. –– Roumina M. Pablo
