Issuances and circulars previously published by the now defunct Philippine Shippers’ Bureau (PSB) are still valid and in effect and freight forwarders should not impose extra charges not stipulated in these orders, according to the Department of Trade and Industry (DTI).
Memorandum Circular (MC) No. 16-01 series of 2016 reminded sea freight forwarders that all PSB-related issuances, such as MC No. 01-2005 and Administrative Order (AO) No. 06-2005, “shall remain valid and effective.”
MC 01-2005 prescribes the standard freight forwarding services, rates, and charges for containerized shipments, while AO 06-2005 contains the rules in freight forwarding.
MC 16-01 issued March 10, 2016 was recommended by Fair Trade Enforcement Bureau (FTEB) director Danilo Enriquez and signed by Trade Undersecretary for Consumer Protection Group Atty Victorio Dimagiba.
The circular noted that the regulatory functions of PSB were just transferred to the Business Licensing and Accreditation Division of the FTEB as part of DTI’s rationalization plan that took effect in 2014.
According to a PortCalls source, the advisory was issued in response to complaints that some sea freight forwarders were imposing additional charges using nomenclatures not prescribed in the PSB issuances. The source claimed the overcharging practice began when some freight forwarders stopped receiving rebates from off-dock container yard/container freight station (CY/CFS) operators following the January 2016 implementation of revised CY/CFS rates by the Bureau of Customs. After the new rates were issued, the Association of Off-Dock CFS Operators of the Philippines sent a letter to all clients saying rebates will no longer be accommodated. The rebates were said to be either offered by warehouses to forwarders or requested by forwarders in exchange for exclusive business.
READ: PH off-dock CY/CFS operators to end rebate practice as new rates take effect
As a result of the stop in the rebate practice, some forwarders tacked on additional charges onto other services to recoup the lost rebate.
The PortCalls source pointed out though that the rates under MC 01-2005, having been issued in 2005, are out of date and need amending. – Roumina Pablo
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