PRBCB,
CCBI looking at legal remedies to "correct" CAO
THE Professional Regulatory Board for Customs
Brokers (PRBCB) is contemplating on seeking administrative
and legal remedies if the Bureau of Customs (BOC) does not
recall Customs Administrative Order (CAO) No 3-2006-A. The
CAO operationalizes Republic Act (RA) 9280 or the Customs
Brokers Act of 2004 at the BOC.
Looking at a similar course of action is the Chamber of Customs
Brokers, Inc. (CCBI), so far the only accredited professional
organization under the CAO.
"If the CAO provisions which are not in accordance with
RA 9280 are not corrected immediately, we will be constrained
to seek administrative and other legal remedies to enforce
the provisions of the law and to uphold our duties and rights
under the law as the sole and primary office empowered by
law to regulate the practice of the customs broker profession,"
PRBCB chairman Constantino Calica told <i>PortCalls</i>.
He said at least three cases will be filed against Finance
Secretary Margarito Teves, Customs commissioner Napoleon Morales,
and Customs Accreditation Secretariat and legal division chief
Atty. Reynaldo Umali if they insist on enforcing the new provisions.
PRBCB is opposed to the CAO provisions that allowed customs
brokerage corporations and freight forwarding firms to lodge
customs entries and/or use their employee-customs representatives
to transact business at the BOC.
"This provision is illegal and a clear and blatant violation
of the spirit, intent and purpose of RA 9280, specifically
Sections 27, 28 and 29," Calica explained.
Enacted on March 30, 2004, RA 9280 regulates the practice
of the customs brokerage profession. Section 29 of the law
describes the customs broker practice as a professional service
and, as such, "no firm, company, or association may be
registered or licensed as such for the practice of customs
broker profession".
Section 28 provides that no person shall practice or offer
to practice the profession, or use the title unless one is
a registered licensed customs broker.
Calica explained the new CAO provisions also run counter to
PRBCB memo circulars 09-2006 and 10-2006, which provide that
a custom broker is "not prohibited from being employed
by a forwarding firm as a consultant, manager or in any administrative
position." However, he "cannot act as customs broker
for and in behalf of the firm which employed him or use the
latter's representatives to perform the services of customs
broker under Subsection (d) of Sec. 6 or the IRR (implementing
rules and regulations) of RA 9280 as the nature of his profession
calls for his independence," the ruling stressed.
The PRBCB also explained such would run contrary to the provision
of Sec. 29 of RA 9280. "To allow the employee customs
broker of the forwarding company to transact customs business
in behalf of his employer forwarder is an indirect violation
of the law prohibiting corporate practice of customs broker,"
it said.
Calica added: "As to the employment of customs brokers
by companies, the employee-customs broker loses his independence
as an accredited customs brokers and runs counter to the objectives
of RA 9280, which is the professionalization of customs broker.
It is common knowledge that the moment an accredited customs
broker is employed, his impartiality is questionable for his
loyalty is primarily to his employer."
"As long as RA 9280 is not repealed or otherwise amended
by Congress, it stands as a law and we must implement and
enforce it," Calica stressed.
CCBI in a statement said the BOC move to revise the earlier
CAO (CAO No 3-2006) is against the law and tantamount to amending
the law - a move which it says may only be accomplished by
Congress.
It added it is considering taking administrative and legal
action against the BOC, specifically Commissioner Morales
and Atty. Umali as well as Secretary Teves. CCBI said the
cases may be filed this weekend both in a civil court and
the Office of the Ombudsman.
"Definitely we are taking legal action against the persons
who initiated the new CAO because we believe their views are
wrong," the association stressed.
As of presstime Friday, CCBI officials were at a board meeting
presumably to finalize their course of action
.
In a related development, members of the Professional Customs
Brokers Association of the Philippines, Inc. (PCBAPI) held
two separate mass actions before the BOC and the Department
of Finance (DOF) over the weekend to express their disapproval
of CAO 3-2006-A.
"The new provisions are illegal and violate the law whose
only intent and purpose is to professionalize the customs
broker profession," PCBAPI chairman Honorato Colico said.
He added that the law is clear in its provision that "no
firm, company, or association may be registered or licensed
as such for the practice of customs broker profession and
no person shall practice or offer to practice the profession,
or use the title unless one is a registered licensed customs
broker".
The new provisions allow customs brokerage corporations and
freight forwarding firms to lodge customs entries and/or use
their employee-customs representatives to transact business
at the BOC.
Colico said the group is set to conduct more mass actions
if the BOC and DOF do not correct the provisions.
WHILE the customs brokerage community is up in arms over Customs
Administrative Order No (CAO) 3-2006-A, the new order drew
praises from the logistics sector.
Customs brokerage houses and freight forwarders are happy
over the development.
Philippine International Seafreight Forwarders Association
(PISFA) president Rico Brizuela has lauded the BOC move to
allow freight forwarders to lodge import and export shipments
before the bureau.
"Generally, the new CAO is now acceptable to the sea
freight forwarding industry. With the revised rules, we see
no more problems with its implementation barring any opposition
from the other side," Brizuela said.
He added PISFA, the national association of seafreight forwarding
firms which handle the bulk of the country's import and export
shipments, is just waiting for the implementing rules and
regulations of the new CAO before taking any more action.
"Overall, we see very minimal problems, little details,"
Brizuela added.
The Port Users Confederation (PUC) said it is satisfied with
the wording of the amended CAO. PUC spokesperson Atty. Romeo
Sto. Tomas told PortCalls the revised CAO not only distinguishes
the business from the profession but also conforms to the
Revised Kyoto Convention and the ASEAN Single-Window initiative.
"The new CAO has been the advocacy of the PUC ever since
for trade facilitation," Sto. Tomas said, adding that
the new CAO also saved the jobs of thousands of persons employed
in customs brokerage houses.
IT appears the delay in approval of the North Harbor terms
of reference (TOR) lies with the Philippine Ports Authority
(PPA) and not the National Economic and Development Authority
(NEDA).
A NEDA official said PPA, which operates the North Harbor,
only gave NEDA the TOR of the privatization process. Several
other clearances are still lacking, including a feasibility
study and a clearance from the Department of Finance (DOF).
All state firms need to secure a clearance from the DOF-Corporate
Affairs Group before undertaking a project since it may affect
the national government's overall fiscal standing.
The NEDA official said his agency has already written PPA
about the lacking documents but so far there's been no response.
At the moment, the terms of the North Harbor privatization
are still at the Infrastructure Staff division of NEDA. If
all documents have been submitted, the division would then
transmit these to the NEDA-Investment Coordination Committee
(ICC)-Technical Board, then to the Cabinet-level NEDA-ICC
and finally to the NEDA Board, headed by President Gloria
Macapagal-Arroyo.
Raul Santos, PPA assistant general manager for corporate affairs
and special projects, earlier said that if the NEDA-ICC fails
to hand down a decision by August, the remaining months of
the year may not be enough to start the privatization process.
"The privatization will be pushed further to next year,"
Santos said.
PPA originally wanted to privatize the terminal by middle
of this year after the terms were approved by its board in
February. The state firm, however, had to start from square
one after the Philippine Chamber of Commerce and Industry,
which sits at the PPA Board as the private sector representative,
backtracked on its own proposal to have several operators
for the terminal.
The PPA Board then handed down the revised terms, containing
a single-operator scheme requested by the PCCI.
Government needs to privatize the North Harbor as PPA does
not have the necessary funds to modernize the old facility
and make it more competitive.
According to PPA officials, due to the inefficiency of the
North Harbor, many of its customers are transferring to nearby
ports, such as those operated by Asian Terminals, Inc.
PPA data showed there was a continuous drop in cargo volume
at the North Harbor starting 2003. From 16.44 million metric
tons in 2003, cargo volume dropped to 16.32 million metric
tons in 2004 then to 12.82 million metric tons last year.
Container volume also dipped to 578,615 TEUs in 2005 from
the previous year's 665,694 TEUs, and 718,984 TEUs in 2003.
Ship traffic also declined with 4,501 vessels calling North
Harbor for 2005 from 6,292 vessels in 2004 and 6,393 vessels
in 2003.
DBP,
4 other banks to finance expansion of Manila-Cavite toll road
STATE-OWNED Development Bank of the Philippines (DBP) and
four other private banks recently signed an omnibus loan agreement
worth P3.5 billion with UEM-MARA Philippines Corp (UMPC) to
partially finance expansion of the Manila-Cavite Toll Expressway
project.
The seven-kilometer, four-lane toll road project will extend
the Coastal Road from Zapote, Alabang to Kawit, Cavite, and
will provide for the safe, convenient, and efficient travel
of goods and motorists from Metro Manila and the southern
region of Manila and vice versa. The project is expected to
be completed by 2008.
DBP president and chief executive officer Reynaldo David underscored
the socio-economic benefits of the project and its contribution
to the growth strategy of the national government.
"With UMPC's efficient and safe expressway, the compounding
of productivity will be highly possible. And as UMPC's project
gives way to more industrial park and ecozone developments
in Cavite, new doors will open to a lot more possibilities,
including the decongestion of Metro Manila and the reinforcement
of Cavite as another formidable center of growth," he
added.
DBP will lend P1.5 billion for the project while the four
other participating banks - Banco de Oro Universal Bank, China
Banking Corporation, Equitable PCI Bank, and Union Bank of
the Philippines - will lend P500 million each. DBP and BDO
Capital & Investment Corp arranged the syndicated loan
for UMPC.
.
Refleeting
to strengthen PAL's competitive position
PHILIPPINE Airlines (PAL) will bank on the modernization of
its fleet, enhancement of its product and systems, and a push
into new markets to better compete, the flag carrier's top
two executives said.
At the stockholders meeting held recently, PAL chairman Lucio
Tan and president Jaime Bautista in a joint statement said,
"The whole industry is poised for growth but the future
is laden with more of the challenges that we faced and surmounted
these past years."
To strengthen its competitive position, PAL will revamp its
fleet, starting with the narrow-body component. The airline
has contracted up to 20 brand-new Airbus A320-family aircraft,
with the first (an A319-100) for delivery next month. Delivery
of firm orders and leased units will be completed by 2008.
PAL also plans to add five aircraft to its regional wide-body
fleet and three to its long-range wide-body fleet in the short
to medium term. The candidate aircraft for these acquisitions
are still being evaluated.
To keep the current long-haul fleet attuned to the needs of
the market, Tan and Bautista said PAL would soon embark on
a reconfiguration of its inflight product towards bi-class
(business and economy class) from the present tri-class service
(first, business and economy).
Starting late 2007, with the phaseout of first class service
on long-haul flights, PAL's Mabuhay (business) class will
be upgraded, with cocoon-type seats and audio-video on-demand
(AVOD) inflight entertainment sys-tem installed. AVOD will
also be available in economy.
PAL also plans to broaden its presence in China and India.
It eyes increased frequency to Beijing from the current four
times weekly to daily. Shanghai and Xiamen are the other PAL
points in China. An inaugural service to an Indian destination
is being studied.
.
Marina:
Conditions not right for lifting of cabotage law
THE lifting of the cabotage law is not a priority for the
Maritime Industry Authority (Marina) considering the local
shipping industry is not strong enough to compete with international
vessels.
Marina administrator Vicente Suazo, Jr. said the lifting of
the law at the moment may kill small- and medium-scale shipping
operators. "Instead, the country should continue to look
for additional incentives to be given to local operators to
acquire new vessels for them to be at par with their foreign
counterparts," he said.
Cabotage prohibits foreign carriers from engaging in domestic
coastwise trade.
Several associations, including the Philippine Chamber of
Commerce and Industry, are lobbying for the lifting of law,
saying this will allow more foreign shipping investors into
the country, increase port revenues, and produce more competitive
services from local players. On the other hand, local players,
including members of the Philippine Interisland Shipping Association,
are against the lifting of the law, claiming their businesses
will suffer.
According to a Marina briefing paper on the Pitfalls and Fallacies
of Lifting Cabotage in the Philippines, the sectors advocating
easing of the law should "seriously study" the experience
of Indonesia. When that country abolished cabo-tage, its shipping
industry stagnated, prompting a restoration of the law. "Theoretically,
the lifting of cabotage is one essential element towards free
market competitionÉ The real world, however, such as
the Philippine situation, still embodies certain distortions
that would prevent the free interplay of market forces towards
the objective of ideal competition," the paper said.
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