RA
9280's controversial sections face suspension
THE Professional Regulatory Commission
(PRC) is set to defer implementation of certain
provisions of controversial Republic Act 9280
or the Customs Brokers Act of 2004.
The bigger issue, however, lies
with how long the deferment will be. Industry
sources told PortCalls there has been no agreement
on the deferment period.
In a recent meeting at the PRC attended
by officials of, among others, the Philippine
Regulatory Board for Customs Brokers, Port Users
Confederation (PUC), and the Chamber of Customs
Brokers, Inc. (CCBI), there was much argument
among shippers and customs brokers argued over
the deferment period.
Shippers, represented by PUC, want
a two-year deferment while customs brokers, through
the Chamber of Customs Brokers, Inc. (CCBI), want
six months.
Initially, shippers wanted three
years so "that they would have ample time to process
amendment of the law," a source from the freight
forwarding industry explained. He said four provisions
of the law were identified to be questionable,
and that the PRC has reportedly agreed to defer
their implementation by incorporating them in
the transitory provisions of the final implementing
rules and regulations.
The questioned provisions are Section
6 or the Scope of the Practice of Customs Brokers;
Sub-section B of Section 16, which involves the
requisite Bachelor's Degree in Customs Administration
for an applicant to take the licensure exam; Section
27 or Acts Constituting the Practice of Customs
Brokers; and Section 29 or the Prohibition Against
Corporate Practice.
The source further claimed the commission
has deemed two years as sufficient period of deferment.
But Diosdado Santiago, president of CCBI - the
only nationally accredited professional organization
for customs brokers in the country - said the
two-year deferment is too long. "We do not agree
to that.
The customs brokers would be in
a very bad position," he stressed. Another association
source noted the six-month period is non-negotiable.A
CCBI task force for the immediate implementation
of the law is drafting another position paper
for submission to the PRC. - Maritess R. Mesias
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NENACO sees better times by
mid 2005
NEGROS NAVIGATION COMPANY (NENACO) is optimistic
it will achieve its rehabilitation targets and
turn a corner by middle of next year.In an interview
with PortCalls, NENACO executive vice president
and Sales and Marketing head Jose Manuel L. Mapa
disclosed the company has started the first phase
of its pre-rehabilitation year by improving sailing
frequencies and efficiency of vessels.
At present, NENACO vessels sail daily to Bacolod;
six times a week to Iloilo; twice a week to Iligan
and Ozamis; and thrice a week to Cagayan de Oro
and Roxas. The shipping firm also chartered one
passenger vessel, Shuttle 8, which started sailing
last December 4 to Bacolod, Iligan, Ozamis and
Tagbilaran.
Mapa said NENACO is also gaining much from the
financial assistance given by its mother firm
Metro Pacific Corporation (MPC), which has so
far provided P250 million. "Their financial assistance
has enabled our company to pay almost 50% of our
unsettled taxes.
The funds are also being used to finance a big
component in our current recovery schemes," he
said. Mapa noted the company is focusing on the
rehabilitation of its vessels, and improving their
operational capacity so that service frequencies
and market coverage can be increased.
The shipping firm's freight business is also
doing better with a notably high Manila outbound
load factor of 95%. "Within 2005, we are very
positive that we will be able to recover," Mapa
said.
The Manila Regional Trial Court has approved
NENACO's rehabilitation plan last October after
it was found feasible and the business company
still viable.
The rehabilitation plan consists of three phases.
During the first phase covering 2004 pre-rehabilitation
year up to 2006, the company is expected to turn
the tide, enabling it to meet daily operational
expenses and settle debts on time.
The second phase (2007-2010) will focus on route
expansion. The NENACO rehabilitation receiver
Monico Jacob suggested the company must improve
its marketing strategy and instigate a re-fleeting
program to increase the number of its vessels.
Finally, the third phase is eyed at complete
settlement of NENACO's debt. Jacob said from 2011
to 2015, the shipping firm should have captured
at least 50% of the total passenger market and
35% of the total freight market in the inter-island
trade.
Also under the rehabilitation plan are: cash
recapture mechanism intended to capture any excess
cash, 50% of which will go to debt servicing;
gradual quarterly payments on interest due and
scheduled principal amortization; and in the absence
of equity investment, new money will be borrowed
through medium-term notes with a tenor of three
years and six months, inclusive of grace periods.
- Maritess R. Mesias
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RP leads ASEAN effort on single
e-trade system
MEMBER countries of the Association of South
East Asian Nations (ASEAN) support the country's
capability to lead in the development of electronic
systems to harmonize the region's trading processes.
Customs deputy commissioner for Management and
Information System Alexander Arevalo has been
chosen to chair the ASEAN Single Window project,
which includes electronic processing of trade
documents at national and regional levels.
In a recent interview, Arevalo said the establishment
of the single-window facility will expedite import
clearance through single submission of data, single
data processing and single decision-making for
the release of imported goods.
"It is to our advantage that countries such as
Singapore, Malaysia and Indonesia have recognized
Philippine leadership in this endeavor.
This will help us leverage upon leading technologies
in the world," he said. Arevalo said the single-window
model, which will make the ASEAN region a single
economy, will commence development in September
2005.
"First, we have to come up with a national single
window [within the country], before it can be
integrated to the regional level," he explained.
The national single window will collate common
data from all concerned government and private
entities transacting with the Bureau of Customs
in the processing of import and export documents.
Arevalo said the recently launched RosettaNet
eCustoms facility is a viable example of a national
single window, which various countries can use.
The ASEAN customs community has made some effort
to standardize information parameters for customs
purposes and particularly for a common customs
declaration document for imports, exports and
goods in transit, Arevalo said.
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