Domestic
Shipping Act IRR gets green light
THE implementing rules and regulations
(IRR) for Republic Act No. 9295 or the Philippine
Domestic Shipping Development Act of 2004 (DSDA)
have finally been approved by the Maritime Industry
Authority (MARINA), seven months after the law
was signed by President Gloria Macapagal-Arroyo.
The law is designed to boost competitiveness
of local operators vis-a-vis their foreign counterparts,
open up investment opportunities, and provide
financial access for fleet modernization programs.
It mandates MARINA to empower development
of the domestic shipping, shipbuilding, ship repairand
shipbreaking through investment incentives, deregulation
of rates/operation, enhancement of safety standards,
compulsory insurance coverage for passengers and
cargoes, reasonable fines and penalties, and other
constructive measures.
Investment incentives for domestic
shipping include exemption from value-added tax
(VAT) on the importation and local purchase of
passenger and/or cargo vessels of 150 tons and
above, including engine and spare parts of said
vessels.
To avail of the incentives, vessels
to be imported must comply with the age limit
requirement at the time of acquisition counted
from the date of the vessel's original commissioning:
passenger and/or cargo vessels, 15 years; tankers,
10 years; and high-speed passenger craft, five
years.
Also VAT-exempt is the importation
of life-saving equipment, safety and rescue equipment
and communication and navigation safety equipment,
steel plates and other metal plates including
marine-grade aluminum plates, used for transport
operations.
Another important aspect of the
IRR is the provision on deregulation where shipping
companies are allowed to charge their own rates.
"This will enhance competition
among shipping operators, which we expect will
eventually boil down to better services. The shipping
firms, however, should see to it that effective
competition is fostered and public interest is
served," MARINA administrator Vicente Suazo
stressed.
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Customs issues
order deferring implementation of RA 9280
THE Bureau of Customs (BOC) recently
deferred the implementation of Republic Act 9280
or the Customs Brokers Act of 2004 pending review
of its implementing guidelines by the Department
of Finance (DOF).
Through the issuance of Customs
Memorandum Order (CMO) 39-2004 dated December
10, 2004, Customs Commissioner George M. Jereos
strictly ordered that the status quo be observed
until the DOF completes the review and approves
the law's implementing rules and regulations (IRR).
The implementing guidelines for
R.A.9280 has been submitted to the DOF for review
and approval, by virtue of which the secretary
of Finance has ordered that the implementation
of the said law be held in abeyance," the memorandum
order stated. Sources said the issuance of the
order aims to prevent groups, ports, services,
divisions and other units of the bureau in coming
up with their own interpretation of the law as
this could be misleading.
The Customs Brokers Act has yet
to be implemented because the IRR is still pending
final approval from the Professional Regulatory
Commission (PRC). The PRC earlier announced the
deferment of some provisions which shippers, represented
by the Port Users Confederation, deemed questionable.
"Nobody else should interpret
the law. Everybody must wait for the DOF and BOC's
decision and observe the status quo," a source
from the forwarding sector said, adding that the
BOC order will remain notwithstanding the issuance
of the IRR.
Brokers, however, think otherwise. Chamber of
Customs Brokers, Inc. president Diosdado Santiago
said the deferment may be superceded by the approval
of the IRR. He disclosed the association will
be meeting with Commissioner Jereos this Wednesday
to discuss the matter.
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BOC to partner with US Customs
for data-sharing project
THE Bureau of Customs (BOC) is
collaborating with the United States (US) Customs
in the creation of a data-sharing system that
will facilitate trade.
In an interview, BOC deputy commissioner for Management
and Information System Alexander Arevalo said
this will allow the Philippines to counter check
all information being fed it by the US Customs
and vice versa. "The main purpose of this partnership
is to make sure all the data coming in and out
of our own system are accurate," he said.
Arevalo added the move is also in line with the
national government's effort to boost collections.
"This will help ensure that import volumes and
values are not understated to start with," he
noted.
Particulars of the project are already being discussed
by the BOC with the US Embassy in Manila, Arevalo
said, adding that an international donor has also
expressed interest in financing the software and
training for the project. He, however, refused
to name the agency.
US experts will be sent to Manila to do a preliminary
study on the project, expected to be completed
in the first quarter of 2005.
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| The logistics committee meeting
was attended by key officials, including (front
row L-R) Josie Mendoza (Documentation Manager),
Atty. Marlita Jandoquile (Vice President-Administration),
April Coching-Lim (Vice President-Marketing),
and Glizel Martinez (Calabarzon Manager),
(back row L-R) Maan Aceveda (NVOCC Assistant
Manager), Chris Coching (Logistics Manager),
Ronnie Roman (Deputy Chairman of Logcom),
Atanacio Mojica (Air Export Manager), Martin
Valenzuela (Vice President-Operations), Ed
Delos Reyes (Distribution Manager) and Evangeline
Astronomo (Ocean Manager). |
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Mercury Freight group conducts
logistics committee meet, annual budget planning
THE Mercury Freight Logistics Group, composed
of Mercury Freight International, Inc., 'K' Line
Air Service, Phils., Asialink Cargo Phils., Inc.
and Wingspeed Shipping Corp., recently held its
annual logistics committee (Logcom) meeting.
Logcom is one of the group's sub-committees, the
other two being Marketing (Marcom) and Administration
(Admin-com).
Key managers of the group were sub-divided into
three tasked to design operational measures for
day-to-day business activities. The main topics
were contingency plans for Republic Act 9280
(also known as the Customs Brokers Act of 2004)
and the execution of new marketing approaches
for the group's three-year business plan.
The meeting was attended by group chief executive
Bayani C. Coching as well as the division heads
Atty. Marlita Jandoquile, chairperson of Admincom;
April C. Lim, chairperson of Marcom; and Martin
T. Valenzuela, chairman of Logcom.
In another development, 'K' Line Air Phils. and
Mercury Freight held their respective annual budget
planning recently at the Tower Club in Makati.
From a series of sub-committee meetings conducted
for the three-year expansion plan, both companies
came up with targets for 2005 inspired by positive
results in 2004. Of the plan, Coching said: "How
can I refuse to accept a net income budget of
more than P25 million for next year! I am confident
that my people can deliver these results, thus,
all resources required to successful execute our
expansion plans will be provided to them."
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PSAA inducts 2004-2005 officers
THE Philippine Ship Agents Association
(PSAA) recently inducted its new set of officers
and board of directors for the year 2004-2005
at the Heritage Hotel, Manila.
RCS Shipping Agencies, Inc. president
and general manager Rogelio Salonga was inducted
as president. Also inducted were Uni-Ship Inc.'s
Romulo C. Ordas (vice president for Internal Affairs);
Seacoast Maritime Corp.'s Alejandra M. Timog (vice
president for External Affairs); Fair Shipping
& Agency, Inc.'s Abraham V. Tablizo (secretary);
Wallem Phils. Shipping, Inc.'s Macivilla D. Hernandez
(treasurer); and Vicente J. Brillantes (honorary
chairman).
The new set of directors are Agapito Capistrano
(TMS Ship Agencies, Inc.); Ricardo Jamandre
(Ben Line Agencies Phils., Inc.); Senen V. Lazaro
(Supply Oil Field Services Inc.); Roberto Lim
(Marco Asia Shipping Corp.); Virginia C. Madlang-Awa
(Doña Virginia Maritime Corp.); Roberto Neri (Lacerta
Shipping Agencies Phils., Inc.); David J. Reynolds
(Inter-Asia Marine Transport, Inc.); Alfonso Taton
(Askot Ship Agents, Inc.); Raoul B. Viray ( Philman
Shipping , Inc.); and Robert Yu (Sky International
Inc.).
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ICTSI website bags Webby award
International Container Terminal Services, Inc.'s
(ICTSI) website, www.ictsi.com, was chosen the
most popular corporate website in the recently
concluded 7th Philippine Web Awards (PWA) held
at the Onstage Theater in Makati City.
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ICTSI bested
four other finalists in the People's Choice
corporate website category of the PWA, the
country's most prestigious web design competition.
Photo shows Bambi Marfil (center), Investor
Relations Coordinator, receiving the award
from Cynthia Mamon (left) of Sun Mircosystems
and Marc Abaya of MTV Philippines. ICTSI's
website was designed and developed by Web
Focus. |
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PPA awaits court decision on
real estate tax issue
PPA awaits court decision on real estate tax
issue THE Philippine Ports Authority (PPA) is
still awaiting a Supreme Court (SC) decision regarding
the settlement of real estate tax payments which
the agency purportedly owes some local government
units (LGU).
Various LGUs, particularly in the outports, are
urging the port regulator to pay real estate taxes
for all its properties.
The issue stemmed from a past decision made by
the court in some of the properties owned by the
PPA in Iloilo, where it was obliged to pay the
LGU real estate taxes for warehouse facilities
leased by a commercial operator in the area.
"The Iloilo case, which was back in the 1980s,
was unique because a third party was involved.
It was taxed because it was used commercially,"
explained PPA assistant general manager for Special
Projects and Corporate Affairs Raul T. Santos.
He said the port agency has already settled this
obligation last year to put a lid on the issue.
However, the LGUs insist on imposing taxes on
PPA properties in their respective areas.
The agency, on the other hand, refuses to do so
since it is "impractical" and would cost too much.
"It is like we, as a government office, would
have to pay for something that the national government
really owns," Santos said.
According to him, the Department of Finance has
admitted there is a gray area between the LGUs
and the PPA. "It is unfortunate that these LGUs
have misinterpreted the court's earlier ruling
[on Iloilo port]," he noted.
Santos stressed requiring PPA to settle tax obligations
would have a big impact on its budget management.
The funds, which are supposed to finance the development
and construction of dilapidated ports nationwide,
would have to be diverted to tax settlement, he
noted.
"PPA's development efforts will suffer. And this
will have a domino effect, thus, eventually affect
the communities that we serve," he pointed out,
adding this will be an additional expense, which
is estimated to reach P7 billion or more.
Earlier, the port agency has standardized the
procedures of all its port district offices (PDO)
and port management offices (PMO) in the assessment
of real estate taxes.
Upon receipt of any assessment or demand for payment
of real property tax, PPA's port district offices
and port management officess must request the
LGU concerned for a joint inventory or reconciliation
of the properties being assessed.
The move aims to ensure accuracy in the amount,
assessment rate used and period covered in the
evaluation of various PPA properties.
Under the standardized procedure, realty tax assessment
must be settled directly by the lessees with the
LGU concerned, PPA noted.
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APL voted Best Carrier Customer
Service, Best Cargo Business Web Site
APL, the global container transportation unit
of Singapore-based NOL Group, has been voted as
having "Best Overall Standards of Customer Service"
for 2004 by the readers of the Marine Digest and
Cargo Business News publication.
Readers were asked to rank their levels of satisfaction
in a number of categories, including schedule
integrity, frequency of service, range of ports
served, documentation procedures, customer service
response time, Web site features and value added
logistics.
APL was ranked first based on its score in each
of these categories, up from its third place ranking
last year.
The carrier also came in first in a new category
introduced this year, "Best Cargo Business Web
Site - Carrier".
Ted Fordney, Vice President, APL Global Sales,
Marketing & Customer Support, said, "The win is
a validation of our efforts over the past year
to provide our customers with highly reliable
and value-added customer service and, importantly,
is a recognition of the quality service that our
customers have come to expect from APL.
The award is especially important to us because
it was a vote by the people we seek to serve -
our customers," he said.
Marine Digest and Cargo Business News is a US-based
publication covering the Pacific Rim commerce,
logistics and regulatory issues as well as the
North American port industry.
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SC disallows increase in MIAA
charges
SC disallows increase in MIAA charges THE Supreme
Court (SC) recently issued a decision disallowing
the Manila International Airport Authority (MIAA)
to increase fees, charges and rates without valid
limitations.
A decision penned by associate justice Leonardo
Quisumbing upheld a ruling earlier issued by the
Makati Regional Trial Court (RTC), Branch 58,
which struck down the increase of fees by airport
regulator.
The SC said this can have a profound impact on
the country's economy in general and air transport
in particular.
MIAA recently imposed a 20% increase in rental
of airport concessionaires using the properties,
facilities and services of the Ninoy Aquino International
Airport (NAIA).
"The RTC [February 17, 2003] decision which permanently
enjoined petitioner from collecting said increases
and ordered refund to respondents of the amounts
paid pursuant to the said resolutions must be
upheld. However, any refund should cover only
the differential brought about by the unauthorized
contained in said Resolutions," the decision read.
MIAA hiked up rates in the rentals of its terminal
buildings, VIP lounge, other airport buildings
and land, as well as check-in and concession counters.
Business concession fees, particularly concessionaire
privilege fees, were also increased.
Also, MIAA, in Resolution 98-30, adopted the 20%
increase, which took effect on June 1, 1998 reflecting
the new schedule of fees, charges and rates.
Another resolution was passed, which increased
the other airport fees and charges, specifically
for parking and porterage services and the rentals
for hangars.
Petitioners who sought the annulment of the resolution
included LBC Express Inc, Aboitiz Air Transport
Corp., Airspan Corp., A. Soriano Aviation, Flying
Medical Samaritans Inc., Asia Aircraft Overseas
Philippines Inc., Asian Aerospace Corp., Pacific
Jet Maintenance Services Inc., General Aviation
Supplies Trading Inc., Airworks Aviation Corp.,
Federation of Aviation Organizations of the Phils.
Inc., Subic International Air Charter Inc., Normal
Holdings and Development Corp. and Columbian Motor
Sales Corp.
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