CCBI
refutes concerns on Customs Brokers Act
CCBI refutes concerns on Customs
Brokers Act THE Chamber of Customs Brokers, Inc.
(CCBI) is calling for a dialogue with port stakeholders
for the "proper interpretation" of Republic Act
No. 9280 or the Customs Brokers Act of 2004, as
well as the immediate release of the law's implementing
rules and regulations (IRR).
In a letter to the Professional
Regulatory Board for Customs Brokers, addressed
to RA 9280 IRR committee chairman Constantino
Calica, CCBI president Diosdado Santiago also
refuted issues raised by shippers on some provisions
of the law. CCBI - the only nationally accredited
professional organization for customs brokers
in the country - said provisions raised by the
Port Users Confederation (PUC) and the Semiconductors
and Electronics Industries in the Philippines,
Inc. (SEIPI) were wrongly interpreted and have
"no factual or legal basis". Santiago denied PUC's
position that Section 6 of the law would translate
to massive unemployment, noting that "the concern…is
a result of literal interpre-tation… resulting
in an absurd conclusion."
PUC earlier claimed the law will
"cause unemployment of 20,000 clerks, customs
representatives, processors, checkers and affect
about 200,000 people, as only customs brokers
can prepare, file, lodge and process customs entries."
Santiago said: "Under the concept of 'permissible
delegation', there are activities of a professional
which may be delegated to a non-professional under
his employ, supervision, and control. "The concept
finds application in the case of similar professions
similarly situated, thus bookeepers may do financial
entries, draftsmen basic designs, or they may
do the initial bills of materials of an architectural
design. In the case of lawyers, we may find non-lawyers
doing some basic case law researches… filing pleadings
and paying docket fees, and law firm secretaries
typing pleadings."
Santiago said customs brokers may
delegate the following mechanical activities to
non-customs brokers under his direct supervision,
control or employ: preparation of customs requisite
documents for imports and exports; preparation,
filing and lodging of entries; representing importers
and exporters before government agencies in securing
application forms, filings of application forms
duly accomplished, simple expediting and liaison
work which does not involve technical expertise;
representing importers and exporters with private
entities in paying of customs duties and taxes
with banks, filing, processing and expediting
of bank guarantees, securing delivery orders from
forwarders and shipping lines; and other similar
functions that do not require application of expertise
in the application and interpretation of tariff
and customs laws. On PUC claims that "experts,
lawyers, consultants can no longer provide consultation
and render other professional services on customs",
Santiago explained that lawyers "by the nature
of their profession are not covered by the provision."
"Despite the express provision in
the TCCP (Tariff and Customs Code of the Phils.)
on passing the Customs Broker Board Examination,
subjects of which cover customs and tariff laws,
before a person could engage in the practive of
customs broker profession there was a prevalent
practice of persons claiming to be 'experts' on
customs and tariff matters offering their 'expertise
on customs and tariff matters' without passing
such Board Examination. "RA 9280 through the express
definition of the practice of customs broker profession
under Section 6 has strengthened the standard
for qualification and regulation with regards
to consulting and professional services on customs
and tariff matters.
"Practice of profession, after all,
is imbued with public service with income as secondary.
As a professional there is more accountability
than somebody who may just claim expertise on
a particular subject matter. Government may run
after the license of a professional, an entity
established for a purely profit motive may just
close shop," he said.
On the PUC issue of lawyers no longer
being allowed to represent their clients (importers
and exporters) before the Bureau of Customs, Court
of Tax Appeals, Philippine Chamber of Commerce
and Industry under the law, CCBI believes RA 9280
does not amend existing legal provisions and jurisprudence
regarding the practice of law.
Lawyers, CCBI said, by the nature
of their professions may continue to represent
their clients based on a court decision involving
Phil. Lawyers Association v. Agrava (105, Phil.
173).
The decision says that "generally,
the appearance before any quasi-judicial, administrative
agency which calls for the interpretation and
application of laws and presentation of evidence
to establish certain facts, constitute practice
of law…includes rendering of professional services
in advocating or resisting claims before administrative
agencies such as… Bureau of Customs… "The fact
that the service is rendered before any quasi-judicial
or administrative agency and not before the court
is immaterial to the question as to whether it
constitutes practice of law because the character
of the service, and not the place where it is
performed, is the decisive factor determinative
of the question."
PUC also claimed that "teachers,
experts, lawyers, if they are not customs brokers,
cannot teach customs and tariff administration
subjects," to which CCBI said that even before
the law took effect, "teachers, experts, and lawyers
cannot teach subjects of licensure examinations.
This is under the provision of Section 11, RA
8981, otherwise known as the PRC (Professional
Regulatory Commission) Modernization Act of 2000."
The act mandates that subjects for
licensure examinations must only be taught by
persons who are holders of valid certificates
of registration and valid professional licenses.
Santiago said this does not deprive
lawyers in the practice of their profession since
teaching law subjects is not considered practice
of law. "Lawyers… may teach subjects in the licensure
examinations of a particular profession if the
regulatory law of a particular profession would
so provide," he explained. Regarding shippers'
contention that the provision requiring that only
a customs broker may sign an import entry (present
practice requires signature of both importer and
customs broker), CCBI said importers would still
have to sign in adherence to Section 1301 of the
Tariff and Customs Code of the Philippines (TCCP)
and Customs Memorandum Order No. 37-2001 or the
Revised Cargo Clearance Procedure.
"The concerns raised have no basis
as the provision of Section 1301, TCCP and Customs
Memorandum Order (CMO) 37-2001 dated 7 December
2004 requiring importers to sign import entries
were not amended by RA 9280," CCBI explained.
Section 1301 of the TCCP provides that "…where
the entry is filed by a party other than the importer,
said importer shall himself be required to declare
under oath and under the penalties of falsification,
or perjury that the declarations and statements
contained in the entry are true and correct…",
CCBI pointed out.
CMO 37-2001 (Revised Cargo Clearance
Procedure to Implement RA 9135 and CAO [Customs
Administrative Order] 5-2001), on the other hand,
"explicitly provides under Section IV (A.2) that
'…the importer and the customs broker shall make
a complete and correct declaration of the specifications
and/or particulars of the importation on the IEIRD
and the SDV…"
CCBI said, "These existing Bureau
of Customs regulations… will continue to subsist
even with RA 9280."
On the other hand, only customs
brokers, under the law, are allowed to sign export
entry declarations to protect the government interest
and exporters. Santiago denied PUC's assumption
this will be costly and time consuming. He added
the provision "seeks to supply deficiencies in
the implementation of Presidential Decree 930
(Simplified Export Procedure), which has made
export declaration procedures vulnerable to illegal
practices. Presently government regulation as
to preparation and signatures on export declarations
is so loose that illegal practices in the export
trade is made easy. When prohibited exports are
apprehended by the Bureau of Customs prosecution
is made difficult because export declarations
are mostly signed by fictitious persons."
Corporate practice
Meanwhile, the prohibition on corporate
practice does not violate the Constitution, which
PUC claims it would, Santiago said. According
to him, the vested rights granted by the TCCP
to existing brokerage firms was only a "derivative
privilege", that is corporations only derived
this privilege from a professional. "The TCCP
provides that at least two officers of the corporation
should be holder of PRC customs broker certificate
of registration. If the source is only from a
privilege, the derived privilege cannot be termed
as vested right," he pointed out.
Volume of trade
PUC also objected to Section 29
of the law which it said will also lead to large-scale
unemployment. To this the CCBI said, "The determinant
as to the level of employment is the volume of
Philippine export and import trade and not whether
corporations will be allowed to engage in the
practice of customs broker profession."
As to alleged objections by large
national and multinational corporations for single
customs brokers to clear their requirements because
they cannot comply with bonding, security, financial
and transport requirements of large corporations,
CCBI said the "concern is a reason of poor comprehension
of the intent and purpose of RA 9280 which was
to remove from the practice of customs broker
the business aspect in the practice under the
TCCP."
The association pointed out "customs
brokerage companies or forwarding companies are
not prohibited under RA 9280 to engage in transporting
imported goods from the piers and corporations
may continue to avail of their services. Therefore
there is no reason for corporations to be wary
of 'bonding, security, financial and (their) transport
requirements," in dealing with customs brokers.
Moreover, CCBI said "corporations
may find it more advantageous dealing with customs
brokers as a professional rather than with corporations
under the TCCP because the liability of a professional
is unlimited compared to a limited liability of
a corporation.
E-Commerce Law
On PUC claims that there will be
delays in export entry declaration processing
because customs brokers will have to sign export
entry declarations and process them manually,
CCBI explained that "the word sign should be interpreted
to include manual or electronic signature in consonance
with the E-Commerce Law." It added that the Bureau
of Customs at present "does not have any regulation
as to electronic signature but accepts remote
entry lodging and may continue to accept remote
entry lodging even without electronic signature
in such entries. The act of lodging in the absence
of any Bureau of Customs regulation on electronic
signature may be construed as the electronic signature
on itself." Finally, CCBI refutes claims by PUC
that the law will "prejudice international parcel
and courier services, leading to costs and delay
in the releasing of parcels and documents." CCBI's
position is that "there is no basis for such conclusion…
What will happen is that protection of government's
interest and the public in general will be enhanced
by RA 9280.
"International parcel and courier
services will be enjoined to employ the services
of professionals whereby their interests will
be protected. With professionals under their employ
costs and delays will be minimized by reason of
efficiency."
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Forwarders asked to justify
stand on capital requirements
THE Philippine Shippers Bureau (PSB) is asking
seafreight forwarders seeking to preserve the
capitalization requirement status quo to justify
their position. In a recent public hearing, PSB
deputy executive director Rene M. Cruzada said
the current proposal of P5 million will remain
until freight forwarding companies can explain
their objection to the proposed rate.
Forwarders present during the hearing said they
find no compelling reason for the bureau to increase
the capitalization requirement from the current
P500,000 to P5 million. They said not all forwarders
have the capability to raise such a large amount
of capital.
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MIAA surpasses income targets
THE Manila International Airport Authority (MIAA)
has reported an above-target performance with
year-to-date net income amounting to P640.4 million,
surpassing the target by P384.1 million based
on the P256.3-million target in the first ten
months of the year.
In his report to the executive committee highlighting
the accomplishments of MIAA under his first 100
days, MIAA general manager Alfonso Cusi said the
robust performance was due to stringent policies
and cost-cutting measures in response to the government's
austerity program.
Net income from August to October was P200.2
million, surpassing the target by P109 million
or 120%.
"These figures are encouraging… this will enable
the authority to earmark funds and resources on
new projects geared towards improved public or
passenger service and on long overdue repairs
and maintenance works that definitely affect the
image and level of service of our international
airports," Cusi said. The agency posted budgetary
savings of P303.8 million. From a budgeted operating
expenses figure of P 909.9 million, actual expenses
incurred was P606.1 million for the period in
review.
"We would have been hard up in posting such
favorable net income figures had it not been for
our authority-wide commitment to bring costs to
minimal levels, since our total revenue generating
capacity was adversely affected by the non-implementation
of the planned increase in international and domestic
passenger terminal fees," Cusi explained. Gross
income, on the other hand, fell short of target
by P255.4 million since actual gross revenues
of P1,073.0 million is way below the target of
P1,328.4 million.
Year-to-date gross revenues also showed unfavorable
results. Gross income for the first ten months
of the year was P3,668.5 million, falling short
of the target of P4,203.4 million by P534.9 million.
Among the notable service enhancement programs
undertaken were the opening of new service lanes
at the immigration and the customs arrival and
departure areas for overseas Filipino workers
(OFW), and the opening of the OFW Lounge. OFWs
will have complete documentation facilities in
the lounge while waiting with immediate family
members.
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RP seeks longer preparation
time for ASEAN open skies
THE Philippines will need a longer
time to comply with the air transport integration
and liberalization program before the opening
of Association of Southeast Asian Nations (ASEAN)
skies in 2006.
"We have to open up eventually but
there must be a level playing field for competition,"
outgoing undersecretary Arturo Valdez said recently.
He failed to disclose when the Philippines would
be able to comply with the opening of skies. The
Philippine panel, which Valdez led, said there
is a need to first level the playing field. The
panel noted a respectable load factor of 60% must
be attained by all local airlines before the lifting
of restrictions in air transport. Under the roadmap
for the integration and liberalization of air
transport in Southeast Asia, the Philippines applied
for the ASEAN-X protocol. This allows ASEAN members
flexibility in complying with the terms of the
air transport program.
The open skies program would allow foreign carriers
to fly with unlimited access to the country's
international airports.
Air liberalization is part of the
ASEAN Transport Action Plan to improve the air
transport infrastructure and logistics network
in the region. To facilitate the development of
regional production network, interconnectivity
and interoperability among existing and planned
infrastructure, modes and logistics, will also
be strengthened to enable seamless cargo transportation.
These policy initiatives will be carried out through
48 strategic activities over the next six years.
Local carriers have called on the
government to allow them to be more competitive
before the Philippines open its skies to foreign
carriers. It is estimated that the Philippines
needs another ten years before it can fully compete
in an open air transport environment. Members
of the ASEAN which signed the liberalization of
the region's air transport are Brunei Darussalam,
Cambodia, Indonesia, Laos, Malaysia, Myanmar,
Singapore, Thailand, Vietnam and the Philippines.
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DBP, NDC applies for incorporation
of Maritime Equity Corp.
THE Development Bank of the Philippines (DBP)
and the National Development Corp. (NDC) have
applied for incorporation of Maritime Equity Corp.
(MEC) with the Securities and Exchange Commission
(SEC).
This paves the way for government to secure a
P6-billion grant from the Japan Bank for International
Cooperation as initial funds to finance the country's
ship modernization program. Tokyo has warned it
will withdraw the amount by yearend if the country
failed to create an institution to manage it.
The grant has been approved as early as 1990 but
the ship modernization program has had no takers
due to high interest rates and stringent loan
requirements.
Maritime Industry Authority (MARINA) administrator
Vicente Suazo Jr. said both the DBP and the NDC
are coming in to ensure that the MEC will be incorporated
before the yearend deadline. The NDC will use
one of its idle companies, whose by-laws have
already been amended, to establish the loan facility.
MEC will own, manage and lease ships to provide
ship owners full access to ship financing.
MARINA said through the MEC, the industry will
have a more relaxed financing scheme to lure maritime
investors, especially small-and-medium scale operators
as they are the biggest service provider of the
country's shipping industry.
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Innovation key to crop producers'
survival - cold chain association
LOCAL crop producers must be open to new technology,
and responsive to market developments if they
ever hope to help resuscitate the ailing vegetable
industry in the country, said Cold Chain Association
of the Philippines (CCAP) president Anthony Dizon
in a recent meeting with agricultural producers
in Benguet. These producers currently face greater
competition due to the influx of imported crops
as well as competition from Mindanao producers.
To survive, Dizon urged Benguet producers to
adhere to quality requirements and standards.
In addition, they must synchronize their advocacies
and activities with government.
Government, for its part, must initiate the crafting
of a master plan for the development of the vegetable
industry, and cough up the resources to carry
out realistic programs, he said.
"It must ensure that policies, rules and guidelines
are understood and implemented consistently among
the different agencies," he added. He also urged
government to firm up enforcement of countermeasures
against unfair competition and minimize, if not,
eliminate corruption.
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ATI secures P1B notes facility
ASIAN TERMINALS, INC. (ATI) recently concluded
an agreement with Standard Chartered Bank (SCB)
and a group of financial institutions for a fixed
and floating rate peso-denominated notes facility
amounting to P1 billion. The venture, which is
in line with the company's modernization and expansion
program, takes on SCB as the arranger, facility
agent, registrar, paying agent and investor for
the issuance of floating and fixed rate notes
with maturities of five and ten years.
Investors also included Banco de Oro Trust, Rizal
Commercial Banking Corp. and Sunlife of Canada.
ATI chairman Richard D. Barclay and president
and chief executive officer Jerry Rickcord were
signatories to the agreement.
ATI said the proceeds of the notes issue will
be used for its ongoing capital expenditure program,
including the South Harbor Development Program,
as well as the refinancing of maturing obligations.
The South Harbor Development Program, which is
linked to demand, includes modernization and capacity
building of the facilities for international container
and general cargo handling.
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Asian highway agreement
to enter into force early next year
THE intergovernmental agreement
on the Asian Highway, which will pave the way
for an integrated international intermodal transport
system among countries in the region, is expected
to enter into force by early 2005.
At the recent ASEAN Freight Forwarders
Association (AFFA) meeting in Bangkok, United
Nations Economic and Social Commission for Asia
and the Pacific (UNESCAP) Transport Facilitation
Section chief Geetha Karandawalaat said to date,
there are already 27 signatories to the agreement.
Most signed up last April during the 60th session
of the UNESCAP Commission held in Shanghai.
A landmark for the region, the Asian
Highway agreement will be adopted 90 days or three
months after ratification by at least eight countries.
Karandawala said at present, seven countries have
ratified the agreement: China, Japan, Myanmar,
the Republic of Korea, Sri Lanka, Uzbekistan and
Vietnam. "Globalization and increased competition
have brought into focus the need for greater efficiency
and integration of all transport modes to facilitate
international trade. Along with member countries,
UNESCAP is working towards that vision," she said.
She added a number of subregional
meetings are being carried out to promote investment
in the Asian Highway. "Each meeting benefits from
substantial participation by international financial
institutions and institutional and bilateral donors,"
she noted. In the area of transport facilitation,
Karandawala stressed the UNESCAP has lined up
several initiatives to promote a harmonized approach
that will redound to cost reduction, efficiency
and product competitiveness in the international
market.
Some of these initiatives include
assisting countries to undertake analysis of logistics
efficiency along international routes; facilitation
of international road transport in the countries
in Central Asia; and capacity-building and development
of logistics skills through the preparation of
interactive training materials and training of
trainers for delivery at the national level. "The
secretariat will continue to refine the training
material in conjunction with the Singapore Logistics
Association and the members of the AFFA," she
noted.
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8th PISFA bowling
tournament winners known
HARVEST LOGISTICS, INC. emerged
as the team champion at the recently concluded
8th PISFA (Philippine International Seafreight
Forwarders Association) Bowling Tournament.
U-Ocean claimed the first place;
Simba Logistics Inc., the second; S.K. Guiamano
Cargo Services, Inc., third; and Commercial Freight,
fourth. Other special awards were:
Individual
High Average Men's Division (181)
High Game Scratch (237) Romy Ordas, Harvest Logistics
High Average Women's Division (159)
Mely Clerigio, Orient Freight Int'l., Inc.
High Game Scratch Women's Division
(205) Mavic Tawagon, S.K. Guiamano Cargo Services
High Game with Handicap Men's Division
233 (30) 263 Rico Zagala, Orient Freight Int'l.,
Inc.
High Game with Handicap Women's
Division 195 (38) 233 Karen Lopez, Geologistics,
Inc.
Team
Harvest Logistics, Inc.
High Game Scratch 770
High Game with Handicap 770 (80)
850
High Team Series Scratch 2039
CPI Transport
High Team Series w/ Handicap
The bowling committee was chaired
by Job Adriano and co-chaired by Jun Javier. Meanwhile,
PISFA also responded to the needs of typhoon victims.
The Community Service Committee headed by chairperson
Barbie Rivadeneira coursed the PISFA donation
of grocery items through McDonald's (Kabihasnan
Branch, Parañaque City).
Also recently, PISFA gave Christmas
gifts to the Samahan Ng May Kapansanan Sa Brgy.
Pembo, Makati City. The party was held at Pembo
Elementary School Quadrangle, Pembo, Makati City.
Beneficiaries were the organization's 172 disabled
members.
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APL transports
relief goods to typhoon-battered areas
AMERICAN PRESIDENT LINES (APL) recently
extended assistance to typhoon and flood victims
as part of its corporate social responsibility.
The shipping firm donated three
twenty-foot equivalent unit (TEU) containers to
GMA Bisig Bayan Foundation to help transport bulk
of relief goods to typhoon-affected areas, particularly
in the main northern island of Luzon.
Typhoon Winnie recently killed at
least 420 people and left around 200 missing.
It devastated the entire provinces facing the
Pacific and left fields littered with bodies and
uprooted trees, and has destroyed thousands of
properties. An estimated 168,000 people were evacuated
to higher ground.
APL Human Resources manager Amelia
A. Hocson said the undertaking was a "call the
company had to heed, especially with the Christmas
season approaching. This is just something we
felt we needed to do as part of social awareness,"
she said.
Last Wednesday, the company sent
the first container van, loaded with donations
including food, water, clothing and toiletries,
to Laur, Nueva Ecija, one of the most battered
areas along with Quezon, Bulacan and some parts
of the Bicol region.
Two more twenty-footers were sent
during the weekend to deliver more relief goods
to other areas.
Participating trucking companies
were Jophilmar Trucking, HR Lines, Inc. and WSI
Logistics, Inc.
APL also sent six employees to help
repack relief goods for distribution in the provinces.
Student volunteers in charge of clothes for distribution
in typhoon-affected areas.
An APL container van awaits loading of relief
goods bound for Laur, Nueva Ecija.
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