New
Customs rules for brokers finally issued BY ATTY. AGATON
TEODORO O. UVERO
THE Bureau of Customs (BoC) has finally
issued the new rules for customs brokers in accordance
with the provisions provided in Republic Act 9280 (Customs
Brokers Act of 2004) which regulates the practice of
the customs broker profession in the Philippines.Customs
Administrative Order (CAO) No. 3-2006 or the "Rules
and Regulations Governing the Accreditation Customs
Brokers transacting with the Bureau of Customs and for
other purposes" was approved by Finance Secretary
Margarito Teves and issued by the BoC on March 2, 2006.
Among the salient features of CAO 3-2006 are as follows:a)
Definition of the "customs broker" and "customs
representativesb) Requirements and procedures for accreditationc)
Creation of a centralized office for customs broker
accreditationd) Duties and responsibilities of the customs
brokere) Procedures for cancellation, suspension or
revocation of accreditation.f) Administrative proceedings
for filing complaints against the customs brokerg) Reproduction
of accreditation forms by the Chamber of Customs Brokers,
Inc.Among the more controversial issues involving RA
9280 is the prohibition against corporate practice (section
29). Under CAO 3-2006, only individual customs brokers
will be accredited by the Legal Service, BoC. There
are no provisions provided which would allow the accreditation
of corporations and even general
partnerships. Part 1, Section 2.1 of CAO 3-2006 defines
the customs broker as a "bona fide holder of a
valid Certificate of Registration / Professional ID
issued by the Professional Regulatory Board and the
Professional Regulation Commission".In addition
and as provided in Part VII, Section 1.1 of the CAO,
"customs representatives of customs brokers must
be full-time regular employees of the broker authorized
to act for and in his behalf in following up the processing
of entries, permits, and other customs documents related
to the practice of the customs broker of his profession".With
regard to professional charges for customs broker services,
Part VIII, Section 3.2 provides that "all billing
statements prepared by customs brokers shall indicate,
among others, the amount charged as professional fee
which shall be inclusive of VAT inclusive" and
that "the amount of customs brokerage fees and
professional fees charged to clients shall not be in
excess of the amounts prescribed by the APO or Bureau
of Customs, as the case may be".It may be recalled
that RA 9280 was signed into law on March 30, 2004.
In January 2005, the Professional Regulation Commission,
through the Professional Regulatory Board for Customs
Brokers (PRBCB) issued the implementing rules for RA
9280.Prior to the issuance of CAO 3-2006, the BoC has
maintained the status quo in customs broker operations
by allowing existing corporate and individual customs
brokers. The issuance of the CAO should finally resolve
the issue of whether corporations will still be allowed
to continue its operations with the Bureau of Customs.For
importers, traders, customs brokers and logistics providers,
the provisions of CAO 3-2006 should be read and studied
together with RA 9280 and the implementing rules issued
by PRC to provide clear and intelligent answers to many
of the other issues that seem to remain unanswered even
with the issuance of CAO 3-2006.
A licensed customs broker, the
writer is an international trade, indirect tax and customs
consultant. He has a Certificate in Purchasing and Supply
Management from the International Trade Centre (UNCTAD/WTO)
and is an accredited trainer of the Ateneo Graduate
School of Business. He is also a columnist of PortCalls.
Please contact aouvero@customsadvocates.com for your
comments or questions.
THE signing last week of Customs Administrative
Order No. 3-2006, which paves the way for the full implementation
of Republic Act 9280 or the Customs Brokers Act of 2004,
drew mixed reaction from logistics industry stakeholders.Some
were pleased, saying that the order will allow the BOC
to implement good housekeeping measures while others
worried about job security."We are very glad that
finally RA 9280 will be implemented at the BOC. We have
waited for years to have improvements, particularly
for the customs broker industry, put in place,"
Honorato Colico, president of the Professional Customs
Brokers Association of the Philippines, Inc. (PCBAPI)
told <i>PortCalls</i>.He said the development
will help professionalize the industry, which has long
been notorious for attracting characters just out to
make a quick buck.Colico said illegal activities will
be eliminated as transactions will now be handled solely
by professionals. "Liability will also be easily
pinpointed with the implementation of the law unlike
before where brokers used the name of a corporation
to escape liability and to secure employment."He
explained importers may also breathe a sigh of relief
since they will now directly transact with professionals
without fear of shelling out more just to facilitate
the release of cargo from the BOC."Contrary to
claims of brokerage firms, the implementation of the
law will facilitate everything; (there will be) no congestion
and no slowdown in the release of cargo. With the law,
the process will be made easier and faster," Colico
added.He said it will also help eliminate technical
smuggling and improve BOC collections.Colico said most
logistics firms are alarmed by the law due to the misimpression
that it will put them out of business."Logistics
services will still be there. The main objective here
is to put the practice of the profession in proper perspective,"
he said.Edith Mu–oz, president of freight forwarding
firm SpeedTrans International and vice chair of the
Allian ce of Concerned Freight Forwarders, Inc. (ACFFO),
also sees no problem with the impending implementation
of the law.Mu–oz said that since day one, they
have fully supported the law and saw no negative effects
particularly in relation to costs and timing of cargo
release."We support the implementation of RA 9280.
It is a welcome development for the freight forwarding
industry," Mu–oz told PortCalls. "I
do not see the law affecting our operations or our services."The
Chamber of Customs Brokers, Inc. (CCBI), the accredited
professional organization under CAO 3-2006, also views
the signing as a positive development. However, with
its long-delayed implementation (645 days as of end
February from the time the law was signed), the measure
will now have to be renovated to be at par with current
practices, according to CCBI.In its national assembly
last week, the CCBI likened the law to a house designed
and built solely for customs brokers but because it
has not been occupied for som! e time is already in
need of renovation.Some brokerage companies, officials
of whom refused to be identified, told PortCalls
they will continue to look for alternatives to block
the implementation of the law to save thousands of jobs
with the prohibition of corporate practice in customs
brokerage.Other organizations and companies that <i>PortCalls</i>
tried to reach for comments declined to give reactions
due to the apparent lack of information on the new development.The
CAO takes effect 15 days after its publication in a
generally circulated newspaper. Another 60 days is provided
as an adjustment period. Full implementation of the
law is expected in May or June this year.
North
Harbor privatization TOR decision in a month
THE Philippine Ports Authority (PPA)
Board has formally approved with finality the terms
of reference (TOR) for the privatization of the country's
premiere port, the North Harbor. PPA assistant general
manager for corporate affairs and special projects Raul
Santos said the PPA already submitted the TOR to the
National Economic and Development Authority-Investment
Coordination Committee for approval. A decision is expected
in a month.Santos added that the PPA Board also blocked
the possibility of shipping lines bidding for the operation
and management of the port. "This is to ensure
that North Harbor would remain accessible to all ship
owners and not as a tool to harass rival shipping lines,"
Santos stressed in an interview.The PPA Board also approved
the clause in the TOR that states that existing workers
in the North Harbor will be absorbed by the winning
bidder and would not be replaced for at least five years.
After the NEDA-ICC approval of the TOR, North Harbor
will be finally open for bidding. The bidding will be
handled by the Port District Office in Manila.Possible
bidders are port operators International Container Terminal
Services, Inc. (ICTSI) and Asian Terminals, Inc. (ATI).ICTSI
operates the Manila International Container Terminal
(MICT) while ATI operates the Batangas Port and the
Eva Macapagal Super Terminal.Privatization entails breaking
up the North Harbor into four terminals. Terminals 1
and 2 will compete and have the same facilities, including
the capability to handle roll on-roll off containers
and passenger vessels, yard gate complex, maintenance
shops, office building.Terminal 3 will be for trampers
or for conventional, non-containerized, bulk/breakbulk
vessels and passenger vessels. It will cover the construction
of new berthing spaces at Piers 2 and 4 and reclamation
of a designed area in Pier 2.The project includes construction
of a passenger terminal building, truck ho lding area,
security fence and other port facilities.Terminal 4
entails construction of a two-storey passenger terminal
building to house departing passengers.Meanwhile, PPA
is optimistic it will retain its annual P200 million
income from North Harbor after privatization after the
PPA Board allowed the government to collect some P9.4
million in monthly concession fees from the winning
bidder for Terminal 1.The PPA justified collection of
the amount by stating that the government spent almost
P300 million for its construction and upgrades which
includes a marine slipway.
SOCIOECONOMIC Planning Secretary
Romulo Neri said imports of capital goods remained
robust last year, paving the way for bigger production
in the coming months.Citing data from the National
Statistics Office (NSO), Neri noted that all major
commodity groups in 2005, except consumer goods, pushed
import payments up."Shipments of capital goods
surged 23%, buoyed by strong growth in telecommunication
equipment and electrical machinery ( 23.8%), an indication
that the information and communication technology
(ICT) sector continues to expand robustly," he
said. Neri, who also heads the National Economic and
Development Authority (NEDA), added that imports of
raw materials and intermediate goods went up 16.9%,
lifted by materials and accessories for the manufacture
of electrical equipment (28.5%), manufactured goods
(7.1%), chemicals (2.8%), and crude materials (6.6%).Mineral
fuels, lubricants and related materials also shot
up 28.6% as world prices of petroleum crude (55.5%)
remained high.On a month-on-month basis, imports of
petroleum crude went down 10.4% in December due to
inventory build-up in November as oil companies took
advantage of lower world oil prices.On the other hand,
inward shipments of consumer goods decreased 6.8%
due to the decline in durable equipment (-10.7%) such
as passenger cars and motorcycles (-2.1%), and miscellaneous
manufactures (-21.3%).For non-durable goods, shipments
of food (-5.2%), particularly dairy products (-45.6
%), contributed to the reduced importation of consumer
goods.The NSO report noted that merchandise imports
increased 21.7% to $4.0 billion in December 2005,
led by an increase across all major commodity groups
except consumer goods. "This brings cumulative
imports to $44.9 billion, or 2% higher than 2004.
This is below the government target of 12%,"
Neri said. With exports totaling $41.2 billion, he
added that the balance of trade stands at a deficit
of $3.7 billion, 15.4% lower than last year's trade
deficit. The NEDA chief also cited that the positive
growth in imports of electric products signals more
production in the coming months.Inward shipments of
electronic products grew 22.9% from last year and
2.4% from the previous month. Semiconductor products
expanded 27.7%, in line with the 21.2% rebound in
exports of semiconductors in December."This points
to a sustained growth in the coming months,"
he said. Aside from semiconductors, other notable
electronic products also grew, such as communication/radar
(63.9%), telecommunication (43.5%), consumer electronics
(8.3%), and electronic data processing (3.6%). The
United States remains the country's top source of
imports for 2005 with a 17.8% share of the total import
bill, followed by Japan (17.02%), Singapore (8.0%),
Taiwan (7.5%), and China (6.4%). "The US was
the Philippines' main source of imports in 2005. Our
trade deficit with the US stands at $568.5 million,"
Neri said.
HANJIN Heavy Industries and Construction
Co. (HHIC) has formally signed the $1-billion lease
agreement with the Subic Bay Metropolitan Authority
(SBMA) for the construction of a 2.3-million square
meter shipyard in the area."The SBMA welcomes
Hanjin into the investor community. Their entry into
Subic means the creation of job opportunities and
revenues for our fellow countrymen," SBMA Chairman
Feliciano Salonga said.Construction of the Hanjin
facility will start next month on a 230-hectare lot
located along the Redondo Peninsula inside the Freeport
and would create at least 30,000 direct and indirect
jobs.Salonga said the project complements the ongoing
construction of the new container port under the Subic
Port Development Project as well as the Subic-Clark
Toll Road Project, both being funded by the Japan
Bank for International Cooperation (JBIC).The agreement,
which was witnessed by President Gloria Macapagal
Arroyo, was signed by Salonga and administrator Armand
Arreza for the SBM, and by Jeong Sup Shim, president,
and Myung Goo Kwon, managing director, for HHIC-Phils.According
to Shim, the leased area will be suitable for the
building of liquefied natural gas carriers, very large
crude-oil carriers and offshore drilling rigs."We
are very excited to start work on this project. We
believe that we have chosen a very good site. We feel
that Subic is the most ideal location for a site that
will carry gas carriers and off-shore drilling rig,"
he added."The new shipyard will definitely put
the Philippines in the world map of large-scale shipbuilding,"
Arreza said.He also noted that the deal would not
have been possible if not for the extensive efforts
of the SBMA in promoting the Freeport as one of the
most ideal investment places in the Asia-Pacific region.With
the establishment of the new shipyard, the company
aims to expand into offshore plant construc-tion,
which has been restric-ted due to the small size of
its Youngdo shipyard in Busan.Hanjin Shipping, one
of the world's largest ship-builders, aims to generate
$6.52 billion in sales this year, up 4.8% from its
2005 sales and double its investment to $580 million
this year.
FOR the second straight month, the
Bureau of Customs (BOC) exceeded its monthly revenue
collection target.Latest BOC data showed that for
February, the agency collected P12.488 billion, P206
million over the P12.282-billion target for the month.
The total collection was also P3.272 billion higher
than the P9.216 billion collected for the same month
last year.The BOC also surpassed its January target
by P313 million, collecting P12.396 billion compared
to the target of P12.083 billion.The Port of Batangas
and the Port of Manila posted the highest collections,
surpassing their revenue targets by P707 million and
P404 million, respectively, for January to February
2006. The two ports exceeded their combined targets
by P2.1 billion for the first two months of the year.Collections
from the Ninoy Aquino International Airport (NAIA)
also breached the monthly target for the first time
this year.The BOC attributed the increase in collection
to its all-out campaign to weed out corrupt officials
and eliminate smuggling.As of this writing, at least
52 cases of graft and corruption had been filed by
the BOC against corrupt employees with two others
set to be filed before the Department of Justice.
The BOC has also intensified its measures against
smuggling by forging several tie-ups with the private
sector.
THE National Product Quality Excellence
Awards (NPQEA) has selected Pac-Atlantic Lines (Phils.)
Inc. as the Best International Freight Forwarding
Company in the national level for 2005. Pac-Atlantic
and its services have been chosen to receive the product
quality award based on consumer surveys and market
research conducted by the NPQEA. The award certifies
that Pac-Atlantic has met the service excellence standards
set by the NPQEA.As the awardee, Pac-Atlantic had
bested the other freight forwarders included in the
survey and market research in terms of the above parameters
of excellence.Companies that receive the awards are
also conferred the seal of product quality. The seal
of product quality serves as a symbol to consumers
that a product or service has met rigorous standards
of product quality and will meet expectations for
customer satisfaction.Pac-Atlantic shall live up to
this award by continuously improving its processes
and giving excellent services to its customers.
NYK
collects donations to help victims of Philippine landslide
JAPAN's NYK Group has started collecting
donations from its staff to help victims of last month's
massive landslide that engulfed villages on the southern
Philippine island of Leyte, claiming at least 200
lives.NYK said in a statement it would match each
donation from the company.In addition, the shipping
line is planning to provide other forms of relief
to the disaster-stricken area, including providing
assistance to non-profit organizations and nongovernmental
organizations that are operating in the area.
