HCPTI slaps case vs PPA for rule change in port bid
EVEN if it has the inside track on the North
Harbor privatization, port operator Harbour Centre Port Terminals,
Inc. (HCPTI) is still seeking court intervention to cut short
the process of landing the 25-year management and operations
contract of the country’s premier but most inefficient
port.
The company recently filed a writ of mandamus against the
Philippine Ports Authority (PPA) with the Manila Trial Court
(MTC) for the port agency’s sudden change of rules in
the bidding process.
HCPTI chief executive Michael Romero said the company’s
inclusion in the list of eligible bidders in the forthcoming
second round of the privatization process is not considered
a boost as the company will still have to compete with other
bidders. This is unlike in the first round when HCPTI held
the sole opportunity to land the contract for North Harbor.
He added that PPA could have proceeded with the bidding even
with only one bidder, in this case HCPTI and joint venture
partner Metro Pacific Investment Corp. (MPIC), instead of
declaring the first round bidding a failure just so as to
get the lowest tariff rate available.
“We should have not filed this case if PPA followed
what they said even before the bidding started and during
the eligibility process, which, by the way, is already part
of the bidding process — that they can proceed with
the bid even with only one bidder. We cannot understand why
PPA changed the rules in mid-process, and added a provision
for a negotiated bid with one bidder if the second round fails,”
Romero said.
“Let the court in this case decide,” Romero said.
The MTC has already conducted at least two hearings on the
issue and has scheduled several others in the next few days.
Meantime, the PPA is studying the possibility of using the
waiver executed by both HCPTI and partner MPIC in the first
round of bidding to quash the case. The waiver stipulates
that bidders may not seek legal remedies to stop the North
Harbor privatization process.
The PPA decided to declare the first round of bidding a failure
after only HCPTI pre-qualified. The PPA Board then changed
the terms of reference for the privatization so that the bidding
can only proceed with at least two bidders. It also added
a provision of a negotiated bid as a contingency if no other
firm aside from HCPTI qualifies in the second round.
Closest HCPTI competitor Asian Terminals, Inc. was disqualified
for lack of eligibility requirements.
The privatization process is not expected to restart until
toward end of September.
PRBCB eyes less requirements for broker accreditation at BOC
THE Professional Regulatory Board for Customs
Brokers (PRBCB) has recommended to the Bureau of Customs (BOC)
the streamlining of its customs broker accreditation requirements.
PRBCB member Atty. Ferdinand Nague, in a presentation during
the recent general membership assembly of the Chamber of Customs
Brokers Inc. (CCBI), said only four documents are needed by
customs brokers for BOC accreditation. These are the academic
qualification of the applicant for accreditation, certificate
of registration and Professional Regulation Commission license,
certificate of good standing from the accredited professional
organization, and certificate of good morals from two disinterested
persons.
“The BOC should consider these documents to fast track
the accreditation of brokers at the Bureau as the current
set-up of requiring voluminous documents only adds to long
queuing time at the BOC and a slow-paced accreditation process,”
Nague said.
He added that the CCBI, being the only accredited professional
organization under Republic Act 9280 or the Customs Brokers
Act of 2004, should push for the four-document accreditation
requirement.
The PRBCB is waiting for word from the BOC on when to discuss
the issue. The BOC said it is open to changes in the customs
broker accreditation process.
The accreditation of brokers has been extended indefinitely
by the BOC to accommodate all brokers nationwide. Ori-ginally,
broker accreditation should have ended last March.
In another deve-lopment, the PRBCB reiterated its warning
to all brokers engaged in corporate practice to observe independence
in their profession or face revocation of their license and
accredita-tion.
PRBCB said that until Republic Act 9280 or the Customs Brokers
Act of 2004 is amended, the existing procedures apply in the
practice of the profession. RA 9280 disallows corporate practice
in customs brokerage.
JUNE import payments recovered to increase
by 3.8% after two months of negative growth. The increase
to $25.314 billion from $24.748 billion was powered by a recovery
in imports of electronics products, raw materials and intermediate
goods, and the continued strong demand for consumer goods,
according to the National Statistics Office (NSO).
Exports likewise registered an increase of 6.6% to $24.537
billion from $23.013 billion during the same six-month period
in 2006.
Imports of electronic products, comprising about 46.5% of
the total import bill, rose 8.4% as semiconductors recovered
with a 9.9% growth. Likewise, raw materials and intermediate
goods recovered, growing 18% with manufactured goods (up 12.4%)
and materials/accessories for the manufacture of electrical
equipment (up 28.6%) posting strong growth.
Consumer goods imports rose around 40% from last month’s
39%, maintaining its strong position. The imports of passenger
cars and motorized cycles as well as other durables expanded
45.1% and 7%, respectively. Non-durables were also up around
54.5% as imports of]rice (168.7%), dairy products (77.1%),
and other food items (7.9%) rose.
The US was still the country’s top source of imports
with a 14.5% share in June, followed by Singapore with a 13.6%
share. Japan (10.4%), China (8.2%), and Taiwan (10.4%) round
up the top five import sources.
THE Philippine Ports Authority (PPA) reported
a 9% drop in net income for the first six months of the year
to P1.52 billion. The figure is, however, 25.13% more than
the target for the six-month period under review.
The drop in net income was realized despite a P5% hike in
port revenues in the first half to P3.01 billion from P2.9
billion last year. Revenues would have been higher were it
not for the effects of the stronger peso, the PPA said in
a report.
The yearly increase in fixed fee from port operator International
Container Terminal Services, Inc., the effects of a tariff
increase, and the favorable outcome of port traffic in selected
ports nationwide all helped push up revenue for the first
semester.
The revenue posted is also higher by 2.4% compared to the
P2.86-billion target due to deviations from the projected
volume of traffic, the impact of tariff increase, foreign
exchange rate, and lower revenue outcome from non-traditional
sources.
Income from fund management went down P65.04 million or 48.16%
from P135 million to P70 million due to low interest rates
and the decrease in temporary investment from P3.05 billion
last year to this year’s P2.51 billion.
Against target, the amount is lower by P8.15 million or 10.4%
due to low interest realized from other placements and lower
temporary investments.
Total expense for the six-month period amounted to P1.48 billion
or 18% higher than the P1.25 billion spent last year.
Operating expenses also grew 16% from P1.20 billion last year
to P1.39 billion due largely to accelerated repair and maintenance
projects, dredging, higher depreciation charges, and other
administrative expense.
Non-operating expenses also rose P32.88 million or 61.19%.
The projected amount of expenditures, on the other hand, is
higher than what was posted by 14% due to unincurred projected
expenses in all items under operating and non-operating expenses.
More stringent vessel import rules at Marina starting next month
The Maritime Industry Authority (Marina)
is implementing stricter guidelines on the entry of imported
vessels in the country next month, a move seen to help the
Bureau of Customs (BOC) in revenue generation and prevent
the entry of illegally-acquired vessels in the country.
Marina administrator Vicente Suazo, Jr. told PortCalls that
some operators, mostly barge importers, tie up with a local
shipyard, refurbish the vessel then apply it as a newbuilding
to do away with paying duties and taxes to the BOC.
Suazo said the new guidelines will increase the agency’s
capability to monitor fly-by-night shipyards.
Under the new guidelines, importers must first secure an Authority
to Import from the Marina as well as a Provisional Certificate
of Registry for their importation to allow the authority as
well as the BOC to monitor the entry of imported vessels.
Upon arrival, the new vessel will not be registered by Marina
without a certification from the BOC that correct duties and
taxes were paid.
“These are pre-requisite documents for importation and
registration. The BOC will not entertain any payment unless
they show the import permit and the provisional registry certificate
from us, and in turn, Marina will not entertain any new registrant
until it paid its dues to the BOC,” Suazo said.
For newbuildings, the Marina will require a pre-approved blueprint
of the vessel before the shipyard starts construction, and
an inspection routine to avoid entry of smuggled ships.
THE Export Development Council (EDC) will
support Customs value-added service provider (VASP) Intercommerce
Network Service’s (INS) bid to amend certain provisions
of the VASP implementing guidelines.
In an interview, INS president Francis Norman Lopez said EDC
has agreed to write the Bureau of Customs (BOC) to drop the
use of the Import Entry and Internal Revenue Declaration form
and instead use the Single Administrative Document (SAD) for
trade facilitation.
He said EDC also concurred to use the SAD form to cut double-handling
of documents and prevent clerical errors at the same time
cut cost by 50%.
“This is a great development for us. We are just waiting
for the final word from the EDC about the request letter to
the BOC and expect to sit down again with the Bureau and talk
about the possible revision of some of the amendment of CMO
19-2007,” Lopez said.
INS sought the help of the EDC after the BOC shot down INS’s
request last month to revise some VASP rules.
