Customs blocks transactions
filed by corporate customs brokers
Corporations cry foul, seek BOC clarification
Customs brokerage and freight forwarding
corporations are seeking a clarification from Customs Commissioner
Napoleon Morales on the implementation of Republic Act (RA)
9280 (Customs Brokers Act of 2004) and Customs Administrative
Order (CAO) No 3-2006-A. This follows reports that the Ninoy
Aquino International Airport and Manila International Container
Port Customs temporarily halted operations last Wednesday
and blocked all import entries filed by corporate customs
brokers except those with duties and taxes already paid for.
Operations resumed later but not after strictly prohibiting
corporate customs brokers from further transacting with Customs.
Customs apparently took the action upon receipt of a letter
from the Professional Customs Broker Association of the Philippines
represented by its president Honorato Colico. In his letter,
Colico said his group “will not hesitate to bring the
matter” (allowing corporate customs brokers to transact
with Customs) to a court of Law and the Civil Service Commission.
The development is still part of what is turning out to be
a long-running saga on the implementation of RA 9280 and CAO
3-2006-A. In one corner are the customs broker associations
and the Professional Regulatory Board for Customs Brokers
which say that only independent licensed customs brokers –
not those employed by corporations – may transact with
the Bureau of Customs (BOC). In another corner are members
of the logistics group (freight forwarding and customs brokerage
corporations) which claim that nothing in CAO 3-2006-A prohibits
corporate customs brokers from transacting with the bureau.
Atty Romeo Sto. Tomas, spokesperson of the Port Users Confederation,
which represents the logistics group, told PortCalls his group
wants Commissioner Morales to “issue a clarification
to all BOC offices and officers to allow corporations to transact
business with the BOC as CAO 3-2006-A allows.”
He said that as a result of the Regional Trial Court (RTC)
decision in the case filed by Airlift Asia Customs Brokerage
Corp., the BOC may not use the original CAO as basis for disallowing
corporate customs brokers from transacting with the BOC since
the RTC has ruled the bureau lacked jurisdiction to issue
the CAO.
It may be recalled that CAO 3-2006 was amended by CAO 3-2006-A.
The original CAO which does not allow corporations to transact
with the bureau, only individual licensed customs brokers,
was declared invalid by the RTC but only after the amended
version has already been issued. The amended CAO explicitly
allows corporations to transact with the bureau.
Sto. Tomas said the RTC decision invalidating the original
CAO obligates the BOC to implement the amended CAO. “In
effect, there should be no suspension of the amended CAO.
Corporations may therefore continue transacting with the bureau.”
Whether to allow corporations to transact with the BOC is
the key issue under RA 9280. Both Houses of Congress are now
working on amendments to the law allowing such activity.
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Advance inward foreign manifest implementation still hanging
THE Bureau of Customs (BOC) sees the implementation
of the advance inward foreign manifest (IFM) requirement going
the same route as that of the Customs Brokers Act of 2004
— long and winding.
Speaking before members of the Philippine International Seafreight
Forwarders Association (PISFA) in a symposium on IFM organized
by PISFA and PortCalls last week, Customs deputy commissioner
for operations Atty. Reynaldo Nicolas admitted the enforcement
of the IFM is open-ended due to the huge investment required
not only from the bureau but also from industry stakeholders.
Add to this delays in the bureau’s accreditation of
value-added service providers (VASPs) and the setup of technical
infrastructure, both of which are necessary to the program.
ÒHonestly, the BOC does not know when this IFM will
take effect. Unless all systems of the bureau and that of
the parties involved are ready, we can’t really determine
when it will be implemented,Ó Nicolas told symposium
participants.
ÒWe see this IFM to be like the Brokers’ Act
that, due to its massive requirement, has yet to be fully
implemented up to now,Ó Nicolas explained.
The Association of International Shipping Lines is presently
developing its own system for advance IFM compliance that
will be used by its members. It earlier signed a memorandum
of agreement with the BOC on the policy.
The BOC is set to conduct a parallel run of the advance IFM
program either at month’s end or in May to determine
its possible flaws.
Under Customs Administrative Order No 1-2007, the bureau is
requiring all shipping lines, non-vessel operating common
carriers, cargo consolidators, co-loaders and breakbulk agents
to provide the BOC accurate data and information of vessels
and cargoes that will arrive at any port nationwide 12 hours
prior to arrival through electronic transfer coursed either
straight to the BOC or any of its accredited VASPs.
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PPA hikes handling rates for domestic cargo
THE Philippine Ports Authority (PPA) will
implement a rate increase for domestic cargoes starting this
year until 2009. It will also lift restrictions on government’s
share in the revenues of its cargo handlers to increase profits.
PPA documents showed the agency will now implement the increases
which it has postponed since 2003 upon the request of Malaca–ang.
Based on the 2003 PPA memorandum, a 14% increase in the rates
should have been implemented in two tranches — five-percentage
points in 2004 and nine-percentage points in 2005.
A check at one of the divisions of PPA revealed that the agency
has in fact increased domestic charges by five-percentage
points since the start of the year. A nine-percentage increase
is thus looming towards yearend.
The same increases — and implementation schedule —
are expected until 2009.
Starting this year, PPA will also no longer honor the memorandum
circular it issued in 2002 which provides a universal rate
of 10% for government’s share in the revenue of cargo-handling
operators for domestic operations, and 20% for international
operations.
PPA has lifted such restriction in the privatization of Dumaguete
port’s cargo handling operations.
On a non-self sustaining vessel, the rate for a loaded 20-footer
is now at P3,099 and an empty, P2,605; a loaded 40 footer
is P4,335 and an empty, P3,356.
On a self-containing vessel, loaded 20-footers are charged
P1,710 and an empty, P1,223. A 40-footer is P2,942 while an
empty is P1,968.
For foreign transshipment without rework on a non-sustaining
vessel, loaded 20-footers are P4,508 and a 40-footer, P5,637.
For foreign transhipment on self-sustaining vessels, each
20-footer is charged P2,008 while a 40-footer is levied P3,140.
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February exports grow 7%
EXPORT earnings hit $3.69 billion in February
this year, up 7% from last year’s total receipts amounting
to $3.45 billion in the same month, according to the National
Statistics Office.
All major commodity export groups exhibited growth except
for petroleum products which decreased 25.4%.
Electronics remained the country’s top export product
in February accounting for 63.5% of income from exports. Semiconductors
led the electronics group with a 48.45% share totaling $1.79
billion worth of export earnings.
Mi-neral product exports sustained its positive performance
with a 53.7% growth due to the rapid increase in copper metal
and concentrate shipments, which recorded a 39.5% and 99.5%
growth rate, respectively.
Copper prices in the world market rose 13.9% from February
2006. Other mineral products such as gold also contributed
to the increase in exports.
The United States continues to dominate as the country’s
top export destination with a 17.7% share followed by Japan
with 14.4%.
China and Hong Kong posted the biggest gains in February,
with a double-digit upsurge in their share from 8.7% and 6.6%
to 12.39% and 11.16%, respectively.
Earlier, exporters said they feared that the growth of Philippine
exports will rise by
The local currency has so far risen by nearly 2% this year.
Philippine exporters have been complaining about the peso’s
appreciation as it has made their products more expensive.
Exports form over half of the Philippine economy as measured
by gross domestic product.a slower 10% to 12% this year due
mainly to the strong peso.
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People
spell the difference at AsiaLink
AIRFREIGHT forwarder AsiaLink Cargo Phil.
Inc. is banking on its people to bring the company to greater
heights.
Celebrating its 19th year in the industry this month, the
company attributes its success to its hardworking people here
and its counterparts abroad. ÒIn the past 19 years,
the company’s performance has been good. Although we
encountered several slowdowns in the past few years, we were
able to survive due to our hardworking staff,Ó AsiaLink
airfreight manager Ferdinand Millano told PortCalls.
ÒHaving well-trained and dedicated people complemented
by good technical and management support has been our edge
over our competitors in the past 19 years,Ó Millano
explained.
For the succeeding years, Millano said AsiaLink will continue
to invest heavily on its people.
In addition, it is embarking on an information technology
upgrade to facilitate company-to-customer transactions to
better service its clients.
Despite the still not-so-favorable business climate, AsiaLink
this year remains bullish on the freight forwarding industry,
expecting business to pick up in the second half.
For 2007, AsiaLink expects a 15% revenue and volume growth
propelled by growth in the US, Australia and China markets.
The company is also focusing on the local market — including
a handicraft client that ships its products thrice a month
— to offset losses incurred when one of its clients
closed its Philippine plant and transferred to another country.
ÒThis has been our major concern. We are strengthening
our local sales team to offset this loss and so far we’ve
been able to mitigate its effect. We were able to increase
local sales by 5% since the client moved out last year,Ó
Millano explained.
ÒWe are also boosting our sales team in the US to further
bump the 3% increase in market share registered last year,Ó
Millano said.
AsiaLink Cargo offers an international network qualified to
arrange the uplift of cargo from and to all corners of the
world. It also provides customs clearance, warehouse handling,
land transport, project freight and documentation.
It is one of the few 100% Filipino-owned forwarding companies
with comprehensive liability insurance protection over all
shipments under its own house bill of lading.
Its affiliate companies are Wingspeed Shipping Corp., Mercury
Freight International, Inc., K-Line Air Services, Phils.,
Inc., and Mercury Freight Holdings, Inc.
AsiaLink is a member of World Cargo Alliance, China Global
Logistics Network, Federation of International Forwarders
Association and Aircargo Forwarders of the Philippines.
Locally, AsiaLink has offices in Cebu, Laguna, Cavite and
Clark.
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