REPUBLIC ACT NO. 9280 or "An Act
Regulating the Practice of Customs Brokers Profession
in the Philippines" has received mixed reactions -
mostly confusion - from transport industry players,
particularly the logistics sector.
Officially enacted last March 30,
2004, the law effectively regulates the practice of
the customs brokers profession and prohibits corporate
practice of customs brokerage.
Section 29 of RA 9280 specifically
provides that the customs broker practice is a professional
service and as such, "no firm, company, or association
may be registered or licensed as such for the practice
of customs broker profession".
In addition, Section 28 provides that
no person shall practice or offer to practice the
profession, or use the title unless one is a registered
licensed customs broker.
Atty. Romeo Sto. Tomas, a legal expert
on the freight forwarding industry, said many forwarding
firms offering customs brokerage services were alarmed
when the law came out.
"Most forwarding firms have the same
question: How will they continue their operations?
Should they subcontract the service? And who will
finance the payment of duties and taxes?" he said.
Sto. Tomas, the training director
of the Philippine International Seafreight Forwarders
Association and legal director of the Aircargo Forwarders
of the Phils., Inc., said there have been no discussions
yet among involved parties to clarify the implications
of the new law. "There is no regulatory body and no
implementing rules and regulations (IRR) yet," he
noted.
Most companies reached by PortCalls
apparently lacked information on the new legislation,
with some admitting being completely unaware of it.
But for those in the know the legislation, they said,
provides much relief.
Licensed customs broker Adriano A.
Rimando who is also AE Eagle Philippines, Inc. vice
president for Business Development and Customer Service,
said the law clearly defines the place of practicing
customs broker, employees and employers in the industry
and schools offering the course. "Business is separate
from profession. With the new ruling, customs brokerage
will no longer be allowed to be part of the services
of a logistics company.
The practice is exclusively for individuals
registered as licensed brokers under the Professional
Regulation Commission (PRC)," he opined. At present,
there are more than 4,200 licensed customs brokers
all over the country.
Another positive provision of RA 9280,
Rimando said, is the prohibition on financing activities.
Under the law, brokers are now prohibited from advancing
and financing in behalf of their client-importers
the payment of duties and taxes, arrastre charges,
wharfage dues, storage fees and other port charges.
Atty. Agaton Teodoro Uvero, in a
recent PortCalls column, explained this provision:
"In other words, importers can no longer ask their
customs brokers to advance their duties, taxes and
related costs. Many importers normally require a minimum
credit line prior to accrediting customs brokers.
With this practice now prohibited,
the financial standing of a customs broker will become
less of a consideration when companies bid out their
customs brokerage requirements. "Many importers normally
require a minimum credit line prior to accrediting
customs brokers.
With this practice now prohibited,
the financial standing of a customs broker will become
less of a consideration when companies bid out their
customs brokerage requirements." Rimando said brokers
at present cannot compete with multinational companies
offering brokerage services because the latter can
easily provide financial support for big shipment
volumes while a broker cannot.
Diosdado Santiago, president of the
Chamber of Customs Brokers, Inc. (CCBI), admitted
the provisions of the law are complicated. "We have
to consider the corporate law and all the specific
conditions that might affect practicing companies.
Presently, we are bombarded with questions
as to what will happen to existing brokerage corporations
under this law," he said. The CCBI is already working
on its recommended IRR, he added.
The final IRR, including the Code
of Ethics for the profession, will be issued by the
yet-to-be created Professional Regulatory Board. Santiago
said the IRR may be out by July or August.
Honorato O. Colico, chairman of the
Professional Customs Broker Association of the Phils.,
Inc. (PCBAPI), said the legislation will help eliminate
technical smuggling and improve Bureau of Customs
collections. Colico said most logistics firms are
alarmed by the law due to the wrong impression that
it will put them out of business.
"Logistics services will still be
there. The main objective here is to put the practice
of the profession in proper perspective," he said.
An official from a top forwarding
firm who requested anonymity agreed: "I do not see
the law affecting our operations or our services because
our in-house broker is professionally licensed and
when it comes to signing documents, he does it himself.
THE Philippine Ports Authority (PPA)
recently required all domestic shipping firms with
their own terminal buildings to install walk-through
x-ray machines for passengers similar to those found
at the airports.
A PPA source disclosed the agency
came out with a recent memorandum imposing the order
as part of minimum requirements under the International
Ship and Port Facility Security (ISPS) Code. "When
the PPA drafted its security plan, the absence of
high-tech security equipment became one of our concerns.
So we decided to ask for the domestic
shipping operators' help regarding this," he said.
Although there is no specific deadline on the installation
of walk-through x-ray machines, metal detectors and
other security gadgets, the source said PPA is looking
at the July 1 deadline in keeping with the implementation
of the ISPS Code
Sulpicio Lines Passenger Service vice
president Salvacion Buaron noted that the requirement
would mean big costs for shipping lines. "There is
no quantity specified. But we were thinking that one
x-ray machine, which costs about P3 million, would
not be enough.
We will have to install about two
to three if we want to expedite the passenger inspection
process," she said. Buaron said shipping lines are
willing to comply with the requirement but that they
are still negotiating with the PPA on the terms of
acquisition.
"We will have to lease/rent the machine
or ask the PPA to advance it for us, or pass on the
costs we will incur to our customers," she said.
The government recently injected an
additional P200 million to PPA to finance preparations
for the ISPS Code implementation, including hiring
of additional security officers to man the ports and
the acquisition of passenger x-ray machines which
will be positioned at PPA-operated terminals.
Ben
Line Agencies welcomes China-based SITC Container
Lines
SITC CONTAINER LINES CO., LTD has
appointed Ben Line Agencies as its Philippine agent.
The China-based carrier operates
20 full container vessels on the China/Japan, China/Korea,
mainland China/Hong Kong, China Mainland/Taiwan, Japan/Taiwan,
Korea/Taiwan, Taiwan/Hong Kong routes, and is developing
multimodal logistics services. SITC Container Lines
is a member of the SITC Maritime (Group) Co., Ltd.
Although known as one of the younger
carriers in the industry, it has undergone rapid advancement
through strategic investments in service route expansion,
and acquisition of larger vessels and state-of-the-art
facilities.
SITC Container Lines has been named
one of the top ten carriers' in the China Freight
Industry Awards since 1999.
Ship
history record required on international vessels
THE Maritime Industry Authority (MARINA)
recently ordered all international passenger and cargo
vessels of 500 gross tonnage (GT) and above to have
a Continuous Synopsis Record (CSR) on board by July
1, 2004.
Issued by MARINA, the CSR is a record
of ship history, including changes in ownership. The
policy aims to strengthen maritime security measures
and is in conformity with Regulation XI-1/5 of the
International Convention for the Safety of Life at
Sea (SOLAS) and the amended International Maritime
Organization (IMO) Assembly Resolution A.959(23).
The maritime agency said domestic
ships allowed to temporarily engage in overseas trade
are also covered by the procedure. MARINA deputy administrator
Lamberto Pia, during a public hearing with shipping
operators last week, said the requirement is also
in line with the nearing implementation of the International
Ship and Port Facility Security (ISPS) Code.
In its draft memorandum circular,
MARINA noted the CSR must be complete and updated
at all times. "Any previous entries in the CSR shall
not be modified, deleted, or in any way, erased or
defaced," it noted.
Shipping operators are required to
file an application containing details such as name
of ship, IMO number, official number, date of registration
of ship, owner's name, bareboat charterer's name and
classification society of the ship. Amendments to
the CSR would also require the submission of an amendment
form.
MARINA will issue the revised and
updated version of the CSR document three months from
the date of the amendment. In case of loss or damage
to a ship's CSR, the company must inform the maritime
agency.
MARINA will then provide a certified
true copy of the document signed by authorized officials.
Processing fee is P1,200 per application.
Failure to acquire a CSR by July 1
or failure to report any change in the document and
unauthorized change of entries in the CSR will result
in a fine of P5,000 for the first violation; P10,000
for the second; and P20,000 for the third and succeeding
violations.
NENACO
rehabilitation program gets nod of two big creditors
Debt-saddled Negros Navigation Company's
(NENACO) rehabilitation plan has received positive
response from two of its creditor banks.
Court-appointed receiver Sulficio
O. Tagud, Jr. told reporters at the sidelines of NENACO's
stockholders meeting at the Manila Polo Club last
week, that the Development Bank of the Philippines
(DBP) and the Export Industry Bank (EIB) have expressed
support for the company's restructuring program. The
loans from these banks represent roughly 40% of the
total P1 billion bank loans of NENACO.
The company owes DBP - its largest
creditor - a total of P350.543 million and EIB, P29.013
million. Other creditor banks include Bank of Commerce,
which NENACO owes P127.653 million; Equitable-PCI
Bank, P51.56 million; Prudential Bank and Trust Co.,
P37.768 million; Dutch Firm Debis Financial, P108.225
million; and Pioneer Insurance, P63.345 million.
With about P2.4 billion total unpaid
debts, the shipping firm is stretching the repayment
period to 10 years. "The creditor's concern is to
get paid at the shortest possible time," Tagud noted,
adding the company has enough assets to cover its
debts.
"They have about P1.59 for every
peso of liability," he said. Tagud noted few of the
banks are positive about converting outstanding debts
to equity.
NENACO also owes a total of P324.89
million to leasing companies TransAmerica Leasing
Co., Danlite Indutries Corp., Continental Sales, First
Malayan Leasing Co., Waterfront Leasing Co., Burough
Financing Co., and GE Seaco. It also needs to pay
about P914.8 million in critical expenses, including
employees' salary and balances from trade suppliers
such as arrastre and stevedoring companies, suppliers
of heavy equipment and spare parts, security agencies,
trucking companies and drydocking firms.
Jose Maria Lim, president of Metro
Pacific Corp., parent company of NENACO, said Metro
Pacific is confident its beleaguered shipping subsidiary
will get court approval for its rehabilitation program
considering its tight cash flow.
INTERNATIONAL CONTAINER TERMINAL
SERVICES, INC. (ICTSI) recently announced the promotion
of Catherine P. Orellano as the new Management Information
Systems (MIS) Manager of ICTSI's flagship operation,
the Manila International Container Terminal (MICT),
and the appointment of Pablo L. Peñalba as
Business Development Manager of ICTSI's software developer
company for marine ports and terminals, Container
Terminal Systems Solutions, Inc. (CTSSI).
Orellano
joined MICT as MIS Assistant Manager in August
2003. She was formerly with Subic Bay Metropolitan
Authority as division chief of the MIS Department.
She also worked for Tridel Technologies,
Inc. in 1998 as Technical Coordinator, Webscape
Philippines, Inc. in 1996 as Technical Support
and Sales Engineer, and Integrated Computer
Systems, Inc. in 1990 as Senior Quality Computer
Technician.
Orellano earned her Bachelor
of Science major in Industrial Technology degree
and Masters in Business Administration from
Rizal Technological University (RTU).
She also took technical courses
at the Meralco Foundation Institute. Currently,
she is working on her doctor of Philosophy in
Public Administration also at RTU.
Peñalba brings to CTSSI
his nine-year work experience in ICTSI's various
departments and subsidiaries. He started working
as Safety Supervisor at Chemphil Manufacturing
Corp. in 1979.
In
1986, he worked as Accident Prevention Superintendent
at the Jeddah Islamic Port. He joined ICTSI
in 1989 as Safety Officer of the MICT.
He rose from the ranks and was
promoted to Assistant Operations Manager. In
1991, he was assigned as Assistant Terminal
Manager.
In 1995, he was promoted to
Operations Manager. In 1998, he was assigned
to ICTSI's former Saudi Arabia unit, International
Ports Services, in Dammam for its start-up operations.
In 2001, he was recalled to
ICTSI Manila and was appointed as MICT Special
Projects Manager.
He has been involved in various MICT projects
such as the empty container depot, and was at
one time the officer-in-charge of the MIS Department.
Peñalba took up Bachelor
of Science in Industrial Technology at the Sorsogon
College of Arts and Trade.
