BIR approves amended
IRR of overseas shipping law
THE Bureau of Internal Revenue
(BIR) has found the final draft of the Implementing
Rules and Regulation (IRR) of the Republic Act
9301 or the amended Overseas Shipping Develop-ment
Act (OSDA) acceptable.
In a letter to Maritime Industry
Authority (MARINA) deputy administrator for Planning
Gloria Victoria J. Bañas, BIR deputy commissioner,
Legal and Inspection Group Jose Mario C. Buñag
said the draft memorandum circular prepared by
the maritime agency in adherence to the old law
as embodied in Republic Act 7471.
"Except for the number of years
mentioned in Section 4(B) which was reduced from
ten years to seven years, Section 4 of the draft
MC, which contains the exemption of Philippine
shipping enterprise from payment of income tax,
is substantially the same provision as provided
in 7471.
"Since there is no substantial change in
the aforesaid provision as a consequence of the
amendment, this office believes that the draft
MC would be acceptable to the Bureau of Internal
Revenue," Buñag stated.
He added the prescription of requirements
for exemption under Section 5 of the draft is
also found to be reasonable. BIR has implemented
the old overseas shipping development act through
Revenue Regulations No. 15-93.
The enactment of the amended OSDA
law is expected to play a big part in the development
of the overseas shipping industry, particularly
in the modernization of the overseas fleet.
Overseas ship operators lauded the
broader definition of overseas shipping under
RA 9301, as it now encompasses all aspects of
shipping, including sale and purchase of a vessel.
The MARINA said this will rid the
BIR of its "limited" interpretation
of overseas shipping, in the process encouraging
and promoting shipowning among overseas shipping
companies.
The amended OSDA provides for incentives
- including a ten-year income tax exemption for
overseas operators - for vessel acquisition and
ownership requirements for vessels engaged in
overseas trade.
Back to Top
Harbour Center permit still
up for deliberation - PPA
THE Philippine Ports Authority (PPA) said it
will not grant terminal operator Harbour Center
Port Terminal, Inc. (HCPTI) a permit to handle
international containerized cargoes until the
board proves this will not infringe on any existing
policies.
HCPTI is applying for a containerized cargo permit
with the PPA to expand its market to non-locators.
At present, it may only handle containerized cargoes
of its locators and international and domestic
breakbulk cargoes.
In an interview, PPA general manager Oscar M.
Sevilla said the port agency has to scrutinize
and review PPA's existing contracts with the country's
biggest port operators, Asian Terminals Inc. (ATI)
and International Container Terminal Services,
Inc. (ICTSI).
The port regulator's contracts with both port
and logistics operators, contain a provision allowing
for exclusivity of operation. Sevilla said if
it were not for this provision, the PPA would
have granted at once HCPTI its permit.
"The PPA Board is set to review the contracts
of the two logistics firm next month to determine
the possibility of giving the permit to HCPTI.
If the board sees that it does not violate our
contract with ATI and ICTSI, then there will be
no problem in issuing the permit to the Harbour
Centre.
"But as of now, the contracts of ATI and
ICTSI is protected by the Constitution,"
Sevilla explained.
Sevilla said the matter will be deliberated in
the next PPA board meeting scheduled middle of
December.
Other issues should also be addressed, Sevilla
stressed, including the legality of a permit issued
by the National Housing Authority to HCPTI owner
R-II builders. Based on existing laws, permits
for reclaimed lands such as where HCPTI is located,
should be given by the Philippine Estates Authority,
he said.
"These issues should be addressed first
before the PPA issues a permit to HCPTI to avoid
any conflict in the future," he noted.
Back to Top
ATI revenue down 17% from Jan-Sept
ASIAN TERMINALS, INC. (ATI) last week reported
a consolidated net income of P244.3 million on
the back of consolidated revenues for the first
nine months of P2.63 billion, down 17% from P296.4
million.
From January to September, the company's total
container throughput was 629,408 twenty-foot equivalent
units (TEU), up 11.8% from 562,843 TEU handled
the same period last year.
For the past nine months, the company pursued
its programmed investments at the South Harbor
Container Terminal for increased productivity
and efficiency. ATI expanded the annual throughput
capacity of the main container yard to 860,000
TEU, and acquired four brand new, high capacity
rubber-tyred gantry cranes for faster container
turnaround in the yard. ATI is confident that
these investments will enable the company to further
improve its operating efficiency and profitability.
Foreign containerized shipments at the South
Harbor Container Terminal accounted for 76% of
the total volume, with 23% from domestic shipments
at the Eva Macapagal Super Terminal (EMST) and
1% from ATI Batangas.
Stronger growth was recorded at the EMST with
92.5% increase in embarking passengers to 438,865.
This was mainly attributed to the availability
of all four berths at pier 15, as opposed to only
two berths before full commercial operations commenced
in March this year.
Meanwhile, the increasing trend towards containerization
and lower demand for steel and steel products
accounted for the year-on-year decrease in non-containerized
cargo volumes by 20%.
ATI handled a total of 3.2 million metric tons
of non-containerized shipments in bulk, breakbulk
and general cargo, from 4 million metric tons
handled over the same period last year.
In line with the company's cost-efficiency initiatives,
consolidated operating expenses decreased 0.5%
to P2 billion for the nine months in review. Consolidated
other expenses-net declined 2.4% to P250.6 million
in the first three quarters compared to P256.7
million in the same period last year.
The company said it is optimistic demand in the
intra-Asia trade for the rest of 2004 will strengthen
and that Philippine trade will achieve full recovery
in 2005.
Back to Top
Carriers showcase
e-capabilities
WITH the changing business landscape,
more shipping lines have found themselves integrating
electronic systems in their everyday transactions.
From an intricate range of manual procedures now
emerges a number of applications or web-based
facilities that encompass all service aspects
in shipping.
This means a suit of services for
the transport professional such as news and information,
shipping schedules, customs information, sources
of shipment financing, rate quotations and other
information all in one site that may be accessed
at the click of a mouse.
In a recent dialogue with international
freight forwarding firms, carriers OOCL and Hanjin
Shipping presented their electronic capabilities.
CargoSmart, a portal and integration
provider for the ocean container transportation
industry, provides tools to let customers plan,
process, monitor and share their shipment information.
OOCL (Philippines), Inc. sales and
marketing manager Giovanni Yu said the company
has invested in the development of this solution
platform to enhance customer service capabilities
and efficiency for all transportation partners.
"It was designed with customer
and carrier efficiency in mind and is an open
software platform that provides customers with
the ability to manage their shipments with multiple
carriers online and empowers them to share information
with their shipping associates," he said.
Participating carriers include COSCO Container
Lines Co., Ltd and Malaysia International Shipping
Corporation.
He said the development of CargoSmart
further strengthens OOCL's dominant position as
a customer-focused, Information Technology (IT)
leader in world shipping. At present, over 13,000
members use the portal to effectively manage their
shipments.
"CargoSmart's services provide
participating carriers cost saving, efficiencies
and increased customer service options, thus,
translating to speed, visibility, transparency,
experience and reliability," Yu said.
Hanjin Shipping said another portal
utilized by a number of carriers to date is GT
Nexus.
GT Nexus is a provider of hosted, on-demand software
and services for global logistics and supply chain
execution. The company's integrated solution enables
enterprises and their partners to optimize and
manage the flow of goods and information through
a single Web platform, from order point to final
delivery, anywhere around the globe.
Hanjin Shipping marketing manager
Robbie Del Rosario said the portal has helped
the company achieve process efficiencies and their
customers gain simpler transaction processes.
GT Nexus solutions span and link
three critical logistics functions: multimodal
transportation management, global supply chain
visibility, and performance management. GT Nexus
technology powers GTN, the world's leading portal
for the ocean transportation industry.
Backed by a consortium of global
shipping lines based in Europe, Asia and the Americas,
GTN represents over 45% of the worldwide market
for containerized cargo.
Back to Top
RP carriers impose
domestic fuel surcharge
THE Civil Aeronautics Board (CAB)
has given domestic airlines provisional authority
to impose domestic fuel surcharges.
CAB director Tomas Manalac confirmed
that due to the urgency of the request, the board
has decided to grant the provisional authority
to Philippine Airlines, Cebu Pacific Air and Air
Philippines to collect fuel surcharge on both
passenger and cargo flights starting November
1.
"The hearings were conducted
prior to Nov. 1… but because of the sense
of urgency, they were already given the authority
to impose the surcharge," he noted.
Philippine Airlines is lobbying
for a P200 fuel surcharge for passenger flights
in Luzon, P300 for flights between Luzon and Visayas,
and P400 for flights between Luzon and Mindanao.
Cebu Pacific sought a surcharge
of P300 for passenger flights in Luzon and from
Luzon to the Visayas, and P400 for flights from
Luzon to Mindanao. It plans to charge an extra
P250 for Cebu-to-Mindanao flights, and P200 for
flights in the Visayas.
Air Philippines, meanwhile, adopted
Philippine Airlines' passenger surcharge rates
for flights from Manila, and Cebu Pacific's rates
for flights from Cebu.
Cargo shipment on domestic routes,
on the other hand, now comes with P1 to P3 more
for every P100 of freight cost, depending on destination
and airline used.
Back to Top
New AFPI Board
inducted into office
THE Aircargo Forwarders of the
Philippines, Inc. (AFPI) recently inducted its
new set of officers and members of the board for
the period 2004-2006 at the Palms Country Club
in Alabang, Muntinlupa.
Civil Aeronautics Board (CAB) executive
director Tomas Mañalac facilitated the
oath-taking of the association's new set of officers
led by its president, Asia Overseas Transport
president and general manager Cynthia Reyes-Tsui.
Also inducted were Roy Raralio (CPI
Transport); Antoinette Reyes (Eagle Express);
Jhaime Roxas (Jugro Transport); Ed Miranda (Scanwell
Freight); Lito Alvarez (Airfreight 2100); Marilyn
Alberto (Kintetsu World Express); Mariz Regis
(Airspeed International); Ramon de Leon (Pac-Atlantic);
Ferdinand Tongson (Geologistics); Mauricio Bermudez
(Excel Cargo); and Anthony Dexter Yu (All Transport).
Back to Top
|
