The European Union said the Philippine government should look at other ways to facilitate trade other than have the Bureau of Customs (BOC) implement the pre-shipment inspection (PSI), also sometimes referred to as load port survey.
“While I understand the reasons behind introducing PSI, alternatives should be explored that could help with some of the necessary reforms in customs and ease the port congestion,” Ambassador Guy Ledoux, head of the EU delegation to the Philippines, said during his speech last week at the 40th Philippine Business Conference.
In an email to PortCalls, Ledoux said that while the BOC is studying the use of PSI “as a measure to reduce illegal and parallel trade,” the move is against the World Trade Organization’s (WTO) Trade Facilitation Agreement that “aims to do away with measures that hamper trade.”
He added, “Even though the (WTO) agreement is not yet in place, pre-shipment inspection goes against the spirit of the agreement and is not in line with the idea of trade facilitation (that should reduce, not increase, procedures for imports).
“Major trading partners like the EU would unnecessarily be hampered, and there might be other, less trade distortive ways to deal with the issues the Bureau of Customs is faced with.”
The ambassador said the EU is currently funding a trade-related assistance program that can provide technical support to BOC in exploring alternatives to PSI.
A PortCalls source at the BOC also said the US is against the proposed measure, with an official from the Office of the US Trade Representative recently having communicated with the BOC the US’s opposition to the measure.
Since last year the BOC has been planning to expand the PSI, which is already being implemented on bulk and break bulk cargoes, to include containerized cargoes. Former Customs commissioner Rozzano Rufino Biazon had said the measure complies with the Revised Kyoto Convention, to which the Philippines is a signatory.
The new BOC management carried on with the plan, drafted a Customs Administrative Order (CAO) on the measure, and initially set the middle of this year as target date for its launch. But the plan has been set aside temporarily when the port congestion issue at the Manila ports came up.
Aside from the EU, several business organizations have aired their disapproval of the planned PSI.
The Port Users Confederation described the PSI as “unconstitutional,” while the Philippine Chamber of Commerce and Industry noted it has many “gray areas.”
The Semiconductor and Electronics Industries of the Philippines said its application entails “additional costs.” The Federation of Philippine Industries said that while it is not against the measure, it believes the government should shoulder the fees. The draft CAO requires the importer to pay for PSI services.
The Chamber of Customs Brokers Inc proposed that the measure be made voluntary. – Roumina Pablo
Image courtesy of khunaspix at FreeDigitalPhotos.net
