PortCalls
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::Industry News::

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

December 1 | December 6 | December 8 | December 13
December 15 |
December 20 | December 22 | December 27 | December 29

 

*RA 9280's controversial sections face suspension

*NENACO sees better times by mid 2005

*RP leads ASEAN effort on single e-trade system

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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