Shipping lines,
unwitting tools of smuggling; stricter monitoring eyed
Stricter Monitoring Eyed
THE Bureau of Customs (BOC) is intensifying its anti-smuggling effort by zeroing in
on the Bill of Lading.
The Bill of Lading or B/L serves as the contract between the shipper
and the carrier, and serves as a document of title of carriage and receipt of goods.
Newly installed deputy commissioner Atty. Reynaldo Umali stressed
that with the use of the Bill of Lading, the BOC will monitor shipping lines more
closely as the carriers are unwittingly used in smuggling activities.
Unknowingly, the shipping lines, shipping agents and their containers
are used in illegal activities with the Bill of Lading,’ he said in a press briefing.
We will put controls on them to address smuggling. Shipping lines are being used or
made victims of smuggling without their knowing it.
The Bill of Lading is sometimes even used as a tool in smuggling, to
which the BOC loses an estimated P50 billion in collections annually, Umali added.
Umali, who is also concurrent director of the Run after Tax Smugglers
program of the BOC, expects the planned stricter monitoring by BOC to succeed as
international carriers, led by the Association of International Shipping Lines, have been
supportive of the government's anti-smuggling drive.
The BOC is scheduled to meet with shipping lines to discuss how a
bill of lading should be scrutinized as part of the BOC requirement of the advance
inward foreign manifest.
Besides the monitoring of the B/L, the BOC is set to explore other
forms of collaboration with shippers to further tighten its anti-smuggling effort.
THE Bureau of Customs (BOC) is considering
the implementation of the advance submission of inward foreign
manifest (IFM) 12 hours before loading, instead of the current
practice of 12 hours before vessel arrival.
BOC explained that it is set to adopt this measure in all
Philippine ports to be at par with world standards.
We are seriously looking at implementing the submission of
the advance IFM 12 hours before RP-bound cargoes are loaded
in any vessel even if we have yet to enforce the earlier order,’
said customs deputy commissioner Atty. Reynaldo Nicolas.
Nicholas stressed that the measure will contribute to the
BOC's attempt to further curtail smuggling and increase revenue
collection.
The deputy commissioner explained further the measure is also
designed to thwart any terror activities in view of the ports'
vulnerability to such attacks.
The BOC is set to implement such measure to upgrade risk management
system to scrutinize high-risk cargoes,’ Nicholas said.
The BOC is requiring all shippers as well as vessel operators
to submit inward cargo manifest as well as consolidated cargo
manifest not later than 12 hours before arrival at any Philippine
port to be able to evaluate the risk of smuggling, and possibly,
terrorism, with the use of ocean-going cargo containers.
Under Customs Administrative Order 1-2007, the BOC obligates
the shipping lines, non-vessel operating common carriers (NVOCC),
cargo consolidators, co-loaders and breakbulk agents to provide
the BOC accurate data and information of vessels and cargoes
that will arrive in any port nationwide 12 hours before arrival
through electronic transfer coursed either straight to the
BOC or any of its accredited VASP.
Hard copies, on the other hand, should be submitted immediately
upon arrival.
The proposed new order is expected to hasten the release of
cargo upon arrival of shipment since importers and brokers
will have to present only the original hard copy of the manifest.
The plan is also in relation to the different projects of
the BOC such as the single-window transaction, computerization
and its AsycudaWorld scheme.
According to Nicholas, the BOC is laying the ground for implementation
of the proposal.
The agency is conducting several meetings with different stakeholders
in its bid to implement the new measure at the soonest time
possible.
The BOC is also finalizing the implementing rules and regulations
(IRR) of the IFM, which is expected to be available in the
next few weeks. The agency is poised to start the parallel
run of the IFM either at month’s end or in May to determine
possible flaws of the system.
Meanwhile, the bureau expects to be able to complete the ongoing
technical evaluation of the value-added service providers
(VASPs) within two more weeks before a list of the accredited
VASPs can be released.
The BOC is also still in the process of shifting operating
systems from the old Asycuda to AsycudaWorld which is scheduled
for roll out by the second half of the year.
Meantime, the Association of International Shipping Lines
(AISL) is in the process of developing its own system that
will be used by its members to ensure that all data going
to the BOC remains confidential.
Freight forwarders as well as NVOCCs, consolidators, co-loaders
and break-bulk agents, are upgrading their technical infrastructure
to make this parallel with that of the BOC.
BOC sticks to original revenue targets despite lower projections
THE Bureau of Customs (BOC) expects higher
revenue collection this year, despite reports that the inter-agency
Development Budget Coordination Committee is lowering its
revenue assumptions.
ÒI would not allow them (DBCC) to assume that BOC collections
will be lower this year,Ó Customs Commissioner Napoleon
Morales said in a command conference.
Per the DBCC’s projections, the BOC’s revenue
collection was estimated at P165.12 billion, or lower than
last year’s collection of P198.2 billion.
BOC is the government’s second highest revenue generator
after the Bureau of Internal Revenue.
Morales clarified he has yet to meet with the DBCC, but remained
firm on the BOC’s P228.2 billion target collection this
year. At the same time, he admitted reduced oil shipments
in the first quarter of the year signals an uphill climb for
the agency in meeting its annual target.
ÒShell explained to us that they are cleaning up their
depot in preparation for ‘something.’ That’s
why its oil imports are much lower for the past months,Ó
Morales said.
In an earlier interview, Morales said oil shipments dropped
by more than 40% for the first two months of the year.
According to targets set by the DBCC, BOC should have collected
P46.88 billion for the first quarter this year.
Last year, oil shipments such as crude and other petroleum
products comprised about one-third of the BOC’s import
revenues. Oil companies imported a total of 16.32 million
tons of crude and petroleum products within the period, from
15.14 million tons in 2005, an increase of 7.8%.
However, a result of the imposition of the 12% value added
tax, within the same period, BOC’s revenues from oil
shipments more than doubled — from P30.02 billion in
2005 to P64.05 billion.
Firms with oil refineries such as Pilipinas Shell and Petron
import crude oil, while those that do not have local refinery
facilities like Chevron (Caltex) Corp. and Total Philippines
import fuel products such as diesel and gasoline.
PORT operator International Container Terminal
Services, Inc. (ICTSI) will pursue its bid to operate the
Port of Guam, the largest US deepwater port in the Western
Pacific, if bidding for this is reopened.
If they (Guam port authorities) bid it out, then we will look
at it again. I don’t know what the difference will be,
but we’ll see,Ó ICTSI chairman and president
Enrique Razon Jr. said at the sidelines of the company’s
stockholders’ meeting last Thursday.
Razon, however, evaded questions on what its move will be
if authorities in Guam, which at the moment is headhunting
for a new general manager for the Jose D. Leon Guerrero Commercial
Port, will block ICTSI from bidding for the second time.
At the moment, ICTSI is retaining legal services in Guam to
pursue its case against the Port of Guam authorities, which
the company filed last year.
In December 2005, ICTSI won the bid to first right to negotiate
for operation of said terminal, which last year handled 144,194
twenty-foot equivalent units (TEUs) of containers.
Animosity between the port authorities and ICTSI built up
months later when the Manila-based port operator formed a
subsidiary in Guam but accepted a local firm, E.C. Development
LLP, as a minority shareholder.
Authorities cried foul and accused ICTSI of deviating from
its original intent.
The rift widened when the ICTSI’s original offer of
a $300,000 investment for the installation of new equipment
at the Guam commercial port turned out to be only for a yard
chassis to move containers, and not heavy equipment.
ÒWe are purchasing the new equipment because that was
supposed to be one of the main goals of the privatization.
As a matter of fact, that was the main goal of the law that
mandated the privatization, the replacement of aging equipment
through outside investment,Ó the official said.
Port authorities cited these reasons in canceling negotiations
with ICTSI, which retaliated with a suit filed at the Guam
Superior Court last year.
Seeing that the case with ICTSI will drag on as the court
still has to start hearing the case, port authorities last
February cancelled all three winners for the right to negotiate.
ÒThe potential cost and delay associated with such
a dispute (with ICTSI) would be great, and not in the best
interest of the Port, if not rendered moot by this cancellation,Ó
the agency said in its notice.
“A revised Request for Proposals on the Privatization
for Cargo Operations within the Jose D. Leon Guerrero Commercial
Port will be re-issued by the Jose D. Leon Guerrero Commercial
Port to allow all interested parties an opportunity to participate
following such re-issuance.”
