PortCalls
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5th Philippine Ports and Shipping 2009

::Industry News::

Archives 2004 : Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec

August 2 | August 4 | August 9 | August 11 | August 16 | August 18 | August 23 | August 25 | August 30

 

*Case against Customs Brokers Act Imminent

*Aboitiz One Sees 15% Revenue Hike with New Service

*June Exports Up 8.2%


Case against Customs Brokers Act Imminent

The task force working against the full implementation of Republic Act 9280 or the Customs Brokers Act of 2004 said it is ready to file a case to repeal the imposition of the legislation.

In addition, affected freight forwarding and brokerage companies are also set to file on August 23, 2004 parallel cases in various courts nationwide, said Philippine International Seafreight Forwarders Association president Erich Lingad.

"A lot of companies have already expressed their support. And by August 23, the filing of cases will be left and right," he noted.

Earlier, the task force stressed certain provisions of the law are unconstitutional and violates due process.
Specifically, the group is against the provision prohibiting corporate practice of customs brokerage. This, it said, will lead to the closure of customs brokerage divisions in logistics companies, rendering thousands jobless.

The clamor to file a case against RA 9280 intensified following the circulation of an undated "Notice to All Brokers" from the Bureau of Customs (BOC) signed by Manila International Container Port District Collector Reynaldo Nicolas, which effectively ceases the issuance of accreditation certificates to brokers and brokerage firms.

The BOC said the directive was in compliance with RA 9280's Section 19 or the Issuance of the Certificate of Registration and Professional Identification Card, and Section 29 or the Prohibition Against Corporate Practice.
"In order to address the vacuum caused by the enactment of the said law, all pending applications for accreditation of customs brokers in this port shall be approved until 28 May 2004 or until further notice from the Office of the Commissioner," the notice stated.

A member of the task force commented that such directive stands as concrete ground for a writ of mandamus. "The law is not even considered effective yet that is why we are lobbying for it to be repealed. And now, here is the BOC imposing something that is not right," he pointed out.

The task force, in preparation for the parallel filing of cases, held a meeting yesterday with the Philippine Chamber of Commerce and Industry to discuss further action on the matter.

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Aboitiz One Sees 15% Revenue Hike with New Service

ABOITIZ ONE, INC. said it is expecting revenues to increase 15% or an additional P350 million this year with the introduction of the "1-3-6" consolidation service or D136.

The D136 is a cargo delivery service that "promises on-time delivery within one, three or six days through a multi-modal transport system". It integrates services of Aboitiz Express, Zoom-In Package and Container Freight Service with Aboitiz One's own package services.

In a press briefing, Aboitiz One president and chief executive officer Sabin Aboitiz said the company is also hoping to double revenues from P350 million to P700 million in two years.


With the new service, he said the company will be investing around P10 million for the upgrade of its computer systems and another P30 million for the construction of modular warehouses nationwide.

Aboitiz said D136 would simplify payment of various bills and eliminate waiting for cargo loading.
"Before this, the process at the ports was very complicated. The integration of all these services aims to eliminate all the hazards the customers undergo at the pier, including payment of various fees such as arrastre, stevedoring and others," he said.

Aboitiz noted the new service will also utilize the roll-on/roll-off (ro-ro) transport system of the government. "Instead of using containers, for the three and six-day deliveries, we will ship consolidated cargoes bound for a specific destination via ro-ro," he explained.

Aboitiz One chief operating officer Efren Uy said this way, customers will be assured of freshness of products and on-time delivery, as well as reduced service rates.

He added the company will intensify the promotion of the D136 service by offering discounts and promos.

"We will make it like a supermarket. We will give special discounts for a day or for a specific season. For instance, rates for peak hours will be different from non-peak hours," he said.

Aboitiz said they have also implemented a new pricing scheme that allows a uniform rate in each major areas of the country. The uniform rate for next-day delivery is a minimum of P275 for the first five kilos. Add-on rates, however, vary: for Luzon, P20; and Visayas and Mindanao, P30.

Additional fees include a 1% valuation, 10% value-added tax and P1 for the first P1,000 declared value and P10 for P1,001 and above declared value in documentary stamps.

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June Exports Up 8.2%

THE National Statistics Office reports that export receipts in June jumped 8.2% to US$3.313 billion over last year's $3.060 billion. The growth was attributed to the cyclical upturn in world demand for electronics.

This, in turn, saw higher orders for Philippine electronics exports ñ 68.7% of total exports - mainly from its top markets: Japan, United States, and Hong Kong.

Nevertheless, the Semiconductors and Electronics Industries of the Philippines Inc. views this growth as less than ideal, as industry players were expecting higher-than-average growth in June. This expectation is supported by the historically higher growth this time of the year as well as the recorded achievements of other countries.
Thailand and Taiwan's merchandise exports were up 29% and 24.5%, respectively, in June while Singapore's went up 20.9% not counting its oil exports.

Also, June export earnings, like in the earlier months, were said to be affected by the weakening prospects in the garments industry whose quota system is set to be phased out next year.

Meantime, with cumulative exports in the first half of the year expanding only 8.5% to $18.73 billion, government's 10% whole-year export growth target will be hard to reach unless double-digit growths are posted for the rest of the year.

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