Customs Board: RA 9280 amendments only strengthen case vs corporate practice
THE Professional Regulatory Board for Customs
Brokers (PRBCB) is not opposing amendments to Republic Act
9280 or the Customs Brokers Act of 2004, saying these will
only strengthen the board’s position that no corporations
should be allowed to customs clear.
"We have no objection to the amendment whatsoever. The
initial wording of the amendment will only boost our position
against corporate practice and induce our right to implement
what is correct under the law," PRBCB chairman Constantino
Calica told PortCalls.
He said the board is waiting to see how the bicameral committee
will harmonize the separate versions of the law, particularly
on the corporate practice provision, drafted by the House
of Representatives and the Senate.
Calica said the third reading versions of the House and the
Senate are favorable to customs brokers as they allow corporations
to transact with the Bureau of Customs (BOC) but not lodge
and sign customs entries, activities that will remain the
sole responsibility of licensed customs brokers.
Earlier, the Chamber of Customs Brokers, Inc., so far the
only accredited professional organization under RA 9280, also
did not express opposition to the amendments.
Under recent rulings by the PRBCB, corporations are not allowed
to process customs entries and are also barred from employing
licensed customs brokers. Full-time employment, it said, will
mean a loss in impartiality.
Last month, both Houses of Congress passed separate third
reading versions of the amendment and have tabled these for
bicameral hearings when sessions resume in June.
House Bill No. 6063 specifically amends Section 29 of RA 9280
by changing the section sub-title "Prohibition Against
Corporate Practice" to "Admission to Professional
Practice" and by deleting the phrase "No firm, company
or association may be registered or licensed as such for the
practice of customs broker profession".
Senate Bill No. 2597 is also limited to amending Section 29
by changing the section sub-title to "Admission to Professional
Practice" and by providing the phrase "Nothing in
this shall prohibit a corporation from hiring the services
of an in-house customs broker for purposes of accreditation
by the Bureau of Customs and facilitation of activities mentioned
in Sec. 6."
RA 9280 enacted on March 30, 2004 regulates the practice of
the customs broker profession. Section 29 of the law provides
that the customs broker practice is 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”.
Customs support for small businesses in place by Q4
SMALL and medium-sized enterprises may look
forward to less person-to-person transactions at the Bureau
of Customs (BOC) by the last quarter of 2007.
"By the fourth quarter of 2007, development support to
local small and medium entrepreneurs should have been established
with an integration of supply chain and industry-specific
green lane access and fully automated import process payments,"
Customs deputy commissioner Alexander Arevalo said.
The Single-Window Transaction System, reset for implementation
by year’s end, is at the forefront of such goals. Once
the system is in place, Arevalo said greater ease, speed and
efficiency in dealing with the bureau may be expected.
Face-to-face transactions will be significantly reduced, as
transactions may be done online, including submission of declarations
and manifests by shipping lines and airlines including de/consolidators.
Payments will coursed through banks and liquidation of raw
materials automated. Links with government agencies and a
customer service hotline for external stakeholders will be
provided.
The benefits include greater BOC accountability to stakeholders
with a more transparent and efficient system and lower cost
of doing business through streamlined procedures.
"This is not only an ICT project but also a governance
project," Arevalo explained.
The BOC is carrying out the project through the P500-million
e-Customs Modernization Project.
BOC is set to pilot test the single-window scheme with Thailand
this year and with other Asian countries next year. The implementation
of the scheme is in accordance with the trade liberalization
program mandated by the World Trade Organization.
OTS
Logistics Group creates synergy in partnership
OTS Logistics Group, a major global service
provider, recently reinforced its partnership through cooperation
of freight services and operations among its members. OTS
Logistics Group is represented in Manila by Vanguard Logistics
Services Philippines (VLS Phils), Transmodal International
Inc. (agent of Conterm) and International Consolidator Philippines
Inc. (agent of Brennan).
Combination of services
The cooperation of the group culminated in a recent celebration
at the new office building of Transmodal in Intramuros, Manila.
The staff together with the management of the three companies
gathered together to finalize the combined service that can
be offered to customers.
The comprehensive services of the three brands are as follows:
• Weekly export consolidation to the US (Los Angeles
and New York direct box).
• Import consolidation from the US to Manila and Cebu
direct box. At the moment, OTS Logistics Group has the biggest
volume and most compe-titive local charges for import consolidation
from the US.
• Import and export consolidation to and from Japan,
China, Singapore, Jakarta, Taiwan, Thailand, Korea, Indonesia,
Malaysia and selected European countries.
• Airfreight to and from the Philippines.
The OTS Logistics Group boasts extensive area coverage both
overseas and locally. In the Philippines, offices are located
in Manila, Cebu, Cagayan de Oro, General Santos, Davao and
Zamboanga.
The cooperation will result in cost savings in operations,
greater profitability, wider service coverage, improved efficiency,
larger global network, and more local offices.
With each company’s unique strength and service mix,
the OTS Logistics Group expects to boost its sales volume
and further increase market share.
New stability certificate may soon be required for vessels
THE government may soon require all Philippine-registered
vessels to secure a Certification of Stability.
Based on a draft Maritime Industry Authority (Marina) memorandum
circular, all ships will be required to undergo an inclining
test and must always carry with it the government-issued Certificate
of Stability or a stability booklet issued by a recognized
organization for international operations.
The circular, which has already undergone a public hearing
late last year and amends the Code on Intact Stability, covers
all passenger ships regardless of size, and other ships with
a length of 24 meters and above.
It said a Marina-licensed naval architect and marine engineer
or Namare should conduct the inclining test.
ÒIf the inclining test for international and domestic
ships is to be conducted in the Philippines by a recognized
organization or accredited marine surveying company, it shall
be undertaken under the supervision of a Marina Namare to
ensure compliance with the Code, with the concerned organization/company
assuming the responsibility to ensure strict observance of
this requirement,Ó the draft circular stated.
Marina said the ruling will also cover newly constructed ships,
which should be tested immediately after their completion.
For ships less than 24 meters long, Marina may adopt an inclining
procedure test, it said.
The agency also wants the stability certification onboard
the vessel at all times. ÒNon-possession onboard of
the required Certificate of Stability (or Exemption Certificate)
shall be considered as major deficiency/major non-conformity
warranting immediate suspension/cancellation/non-issuance
of other ship safety certificates and authority to operate,Ó
it said.
Fees and charges for the inclining test range from P15,000
for the self-propelled vessel under 200 gross tons to P145,000
for 15,000 gross tons and above. The fees include related
evaluations and calculations; the travel, accommodations,
and food of the Marina Namare will be shouldered by the shipping
firm.
The order is part of a wave of safety measures that Marina
wants to implement this year as a result of the sinking of
the MT Solar 1. The vessel spilled thousands of liters of
oil that damaged Guimaras Island and neighboring areas last
August.
The body formed to investigate the case found both Marina
and the Philippine Coast Guard liable for the accident.
THE International Air Transport Association
(IATA) recently reported January traffic results showing positive
numbers for the passage sector but a downtrend in airfreight
traffic.
Latest data from the IATA showed that international passenger
demand started the year off on a positive note with an increase
of 6.1% while international freight traffic demand was subdued
at 3%, despite continued strength in the global economy and
trade.
IATA director general and chief executive Giovanni Bisignani
said the average international passenger load factors were
74.9% representing two years of consecutive monthly increases
in year-on-year load factors.
ÒJanuary passenger numbers tell a good story. People
want to fly and airlines continue to meet this demand with
even greater efficiency — filling 74.9% of seats available
globally. But it is no time to relax,Ó Bisignani explained.
ÒSlower freight growth is a strong reminder of the
continuing effects of a high fuel price and competition from
other modes of transport,Ó Bisignani explained further.
Passenger growth stabilized in the three key markets of North
America (6.6%), Europe (5.5%) and Asia Pacific (5%), as interest
rates slightly dampened demand.
The Middle East continued its trend of double-digit growth,
leading all regions in January with a 19.8% jump in passenger
traffic. The region has posted double-digit growth in 41 of
the past 43 months.
African airlines saw continued above-average growth in demand
with an 8.1% increase and Latin America saw an 8.7% contraction
in passenger traffic growth due to restructuring in that region.
Air freight traffic growth continued in the Middle East with
a 23.8% rise in January, boosted by capacity increases and
oil-led GDP growth.
Fuel costs
However, high fuel costs and strong competition from other
modes of transport have slowed freight growth in Asia (2.9%),
Africa (2%), North America (1.5%) and Europe (-0.8%). Latin
America saw a 2.9% increase as airlines rapidly expanded their
freight operations to replace capacity removed during restructuring.
ÒStrong passenger demand growth in January and a rising
load factor signal a positive start for 2007. But that is
only part of the equation for a successful industry. Further
efficiency gains are critical. The industry is on track to
achieve the $3-billion cost savings from 100% e-ticketing
in just 301 days.
“‘Efficiency everywhere’ is the mindset
that must pervade the entire industry value chain —
including our monopoly suppliers. It is the key to moving
from the small $2.5 billion net return — 0.5% of revenues
— projected for 2007 to a position of sustainable profitability,”
said Bisignani.
