Draft
IRR for Customs Brokers Act sees further revision
A REVISED draft of the
implementing rules and regulations (IRR) for Republic
Act 9280, also known as the Customs Brokers Act of
2004, recently came out, combining provisions of previous
drafts prepared by the Chamber of Customs Brokers,
Inc. (CCBI) and the Professional Regulatory Board
(PRB).
At the recently concluded
industry forum on RA 9280 spearheaded by the Aircargo
Forwarders of the Philippines, Inc., the Philippine
International Seafreight Forwarders Association, and
PortCalls, Professional Regulatory Commission (PRC)
Board of Customs Broker member Constantino Calica
said the group is already working on the final copy
of the IRR, which will be out in a few weeks.
The latest draft slightly
amended provisions pertaining to the prohibition on
the corporate practice of customs brokerage, a subject
that during the industry forum drew the most criticism
from forwarding firms offering customs brokerage services.
"The practice of customs broker is a professional
service, admission to which shall be determined upon
the basis of individual, person, qualifications and
he/she must not be employed or have any connection
whatsoever with any firm, company or association,"
the latest IRR said. The draft retained the initial
provision that corporations and firms offering customs
brokerage services will only be allowed up to December
31, 2004. "Thereafter, said corporations and firms
shall be prohibited to operate," it stressed. The
provision on the prohibition against financing activities
was shortened, focusing only on prohibiting customs
brokers from advancing payments of arrastre fees,
wharfage dues and other charges on behalf of their
clients. PRC's Calica said the board is trying its
best to draft an IRR consistent with the concerns
of the freight forwarding industry.
Another Board of Customs
Broker member Dr. Anthony Cristobal said the PRB is
willing to create a task force that will include members
of the freight forwarding community to facilitate
the drafting of the IRR. This follows the clamor of
freight forwarding firms to make the drafting of the
IRR transparent. During the industry forum, freight
forwarders with customs brokerage service expressed
alarm over the possible impact of the provision on
the prohibition of corporate practice in their respective
businesses. "The law (RA 9280) itself is not very
clear," said an official of a logistics firm offering
customs brokerage services. His sentiment is generally
shared by almost everyone who attended the forum.
Several members of the freight forwarding sector said
specific regulatory functions of the Bureau of Customs
and the PRB must be properly identified. The IRR should
also spell out the processing requirements for import
and export documents, they said.
International trade and
customs lawyer and PortCalls columnist Atty. Agaton
Uvero explained the provisions of the law and detailed
the draft IRR earlier presented by the CCBI and PRB.
The industry forum was
keynoted by Customs Commissioner Antonio Bernardo.
HEADS of three agencies
under the Department of Transportation and Communications
(DOTC) are scheduled to switch places this week.
An industry source said
Maritime Industry Authority (MARINA) administrator
Oscar M. Sevilla will replace incumbent Philippine
Ports Authority (PPA) general manager Alfonso Cusi,
who will then sit as the new Ninoy Aquino International
Airport (NAIA) general manager. A PPA insider confirmed
Cusi had already said his goodbyes to his staff. Sources
said the turnover ceremony for the new NAIA head will
be held today. The source added there have been no
reports if current NAIA general manager Ed Manda will
keep a government post or go to the private sector.
Earlier reports said former PPA assistant general
manager for Operations and former Harbor Center chief
Vic Suazo will take the MARINA posting. In an interview
with PortCalls, Sevilla admitted President Gloria
Macapagal Arroyo has informed him of her plans to
transfer him to PPA. "Until I see with my own eyes
the appointment papers signed by the president herself,
and until I take the oath as new PPA GM, I am still
the MARINA administrator," he noted.
THE advent of various
security regulations imposed by governments worldwide,
particularly the United States, have enhanced efficiencies
in the operation of shipping lines, according to APL.
At the recently concluded
Security Briefing for Shippers and Exporters organized
by the Philippine International Seafreight Forwarders
Association, Aircargo Forwarders of the Phils., and
PortCalls, APL Regional Sales director Edgar Milla
said the implementation of governmental security regulations
such as the Advance Manifest System (AMS) -the centerpiece
of the Container Security Initiative (CSI) - have
allowed the company to dramatically reduce reworking
tasks.
"Prior to the Advance
Manifest Rule, 75% of all manifests needed some adjustments.
Today, that number has been
reduced by more than half and we expect even more
improvements over time," he said.
The AMS requires shipment
data communicated to the US Customs at least 24 hours
before a vessel leaves the port of origin.
Milla noted "Do not load"
orders have so far been minimal. Out of more than
12 million bills of lading, only 1% received such
an order due to insufficient information. Milla
noted APL's voluntary participation in the US Customs-Trade
Partnership Against Terrorism (C-TPAT) has also resulted
in improved efficiencies. APL and its sister company
APL Logistics have been certified and verified under
the guidelines of the C-TPAT. Through this, Milla
said APL was able to raise the companies' level of
security awareness.
Participation in these
security regulations, however, "is not without cost,"
Milla said. Costs have been in the area of reprogramming
APL's systems and altering their work processes, as
well as directing operating personnel, business analysts
and software developers to focus on systems development.
He said APL is also working
on manifest requirements for Australia, Peru, Canada,
India and Panama and, later on, Europe and other regions.
PARTNER companies Brennan
and International Consolidator Philippines, Inc. (ICPI)
are focusing on expanding and enhancing their operations
in the US-Philippines market this month.
In an interview, ICPI
general manager Erich Lingad said the endeavor is
aimed at boosting sales by at least 30%. "We are currently
the market leaders in this trade area and we are hoping
to maintain that," he noted. Lingad said both companies
believe the method will have a positive impact on
operations. He added that the timing is right because
the period after elections appears favorable for most
businesses. The National Statistics Office recently
reported exports to the US grew significantly, particularly
the electronics sector, in six consecutive months
from December 2003.
ICPI president Marlon
Villanueva said the initiative to carry out the expansion
program was spearheaded by Pam Jensen, account representative
of Brennan International Transport in Los Angeles,
California. Further boosting the RP-US market requires
increased sales calls, reviving old accounts, following
up sales leads, and intensifying the services campaign
through advertisements and fliers. He added ICPI is
also sending weekly updates to its partner regarding
business visits and sales improvements. In the Philippines,
the Brennan export offering features full container
load (FCL) services available with multiple carrier
options; online schedules; door pickup service available
in the US; and 27 receiving terminals throughout the
US and Canada, including Mexico City and Puerto Rico.
Its import service features
are weekly sailings from Manila and Cebu to Chicago,
Los Angeles and New York; comprehensive FCL service;
complete delivery coverage throughout the US; and
US freight availability information.
ICPI is the exclusive
Philippine agent of Brennan USA.
Taiwan's Wan Hai Lines
recently deployed a new vessel, the 834-TEU capacity
M/V Cape Campbell, for its Japan-China-Philippines
service. The vessel had its maiden call recently at
the Manila International Container Terminal (MICT),
International Container Terminal Services, Inc.'s
(ICTSI) flagship operation. To commemorate the call,
William Gutierrez, ICTSI Customer Relations Manager
(extreme right), presented a certificate to Capt.
Garibert Tan, Cape Campbell Vessel Master (third from
left). Witnessing the event at the captain's cabin
were Denden Hojilla, Wan Hai Operations Supervisor
(extreme left), and Erick Santos, Wan Hai Shipside
Operations Agent.
JICA
grants RP $2M for domestic shipping plan study
THE Japan International
Cooperation Agency (JICA) is granting the Philippine
government at least $2 million to conduct a study
on the formulation of a Domestic Shipping Development
Plan (DSDP).
The study will carry
out a review and analysis of the present condition
of the Philippine maritime industry, including socio-economic
conditions and the regional structure; past studies,
development plans and projects related to the maritime
sector; policies, laws and regulations; relevance
of the Sustainable Logistics Development Plan; cargo/passenger
flow and transport network of sea transportation;
and fleet condition, ship operation and ship management.
Maritime Industry Authority (MARINA) administrator
Oscar M. Sevilla said 15 JICA representatives will
fly to Manila in October to start the study expected
to be completed in 13 months.
MARINA will form a steering
committee for the project consisting mostly of its
board members.
PPA
invests in vendors' facilities at Batangas Port
THE Philippine Ports
Authority (PPA) has invested
about P300 million for the construction of a Port
Livelihood Center near the port of Batangas.
PPA Batangas Port manager
Constante T. Farias said the facility was built for
people misplaced during the construction of the Batangas
base port or the project's Phase I. For a minimal
investment, residents in the vicinity may avail of
a place for business in the livelihood center. Farias
said ticketing offices will soon be transferred to
the livelihood center for security purposes. "This
way, we will be able to delineate port activities
from those that are not," he said. Meanwhile, Phase
II of the Batangas Port Development Project is already
51.47% complete.
