CUSTOMS brokers seem to be adopting well to the migration
from entry encoding centers (EECs) to value-added service
providers (VASP).
In another month, the electronic lodgment of import entries
by brokers could almost be error-free, 50% faster, and greater
in volume compared to entries filed with the EECs, a review
conducted by the Chamber of Customs Brokers, Inc. (CCBI) revealed.
Ironically, the concern lies with the Bureau of Customs (BOC)
gateway, added the review, a copy of which was provided to
PortCalls. “Our main concern now is how reliable and
fast the system of the BOC to handle the increase in customs
entries when the VASPs took over from the EECs,” CCBI
said.
Another problem area is the late submission of registries
from shipping lines and freight forwarders to the BOC, the
CCBI said.
“These problems (reliability of BOC gateway and late
submission) have been recurring since…our members started
to lodge through the VASPs. Hopefully, the BOC… address(es)
these two problem areas as soon as possible in order to have
a smooth flow of transfer of data from brokers to VASPs to
BOC and vice versa,” CCBI said.
Meanwhile, the usual birth pains in the migration, including
error in data inputting, are now slowly being addressed through
better training and education.
Since the migration a month ago, CCBI said only half of the
total number of brokers now use business centers. “Now,
brokers (are starting) to lodge through the comforts of their
offices. (In) another month, business centers… set up
by different associations to aide their members (deal with
the migration) could also be phased out,” CCBI said
in the review.
As for the service of the three BOC-accredited VASPs —
InterCommerce Network Service, Cargo Data Exchange Center
and E-Konek — the review revealed that brokers have
not encountered problems with their systems which accept entries
24x7.
Every day, each of the three VASPs receive an average lodgment
of about a thousand entries, four times more than the number
of entries filed through the EECs, the CCBI said.
Rates charged by the three VASPs are almost the same but are
about 30-50% (P40-P75) higher than those charged by EECs.
Brokers, however, see the increase being offset by such benefits
as reduced manpower and waiting time, and the ability to file
more entries.
Since November 5, the VASPs have been handling customs data
at the Port of Manila, the Manila International Container
Port and Ninoy Aquino International Airport. Also on November
5, the BOC began rejecting entries filed by customs brokers
unless they are registered with any of the three BOC-accredited
VASPs.
By month’s end, the VASPs will expand their operations
to Cebu, Mactan, Davao and Clark and eventually to Batangas,
Cagayan and Subic by end of the year.
Slow electronic, garment exports
temper 2007-’08 air cargo growth
AIR cargo forwarders expect modest growth
in volumes this year despite the slowdown in electronic shipments,
the country’s top export commodity.
“The air forwarding industry is really taking a beating
right now. Electronic shipments are down while garments are
now almost zero,” Aircargo Forwarders of the Philippines,
Inc. (AFPI) president Jaime Roxas recently told PortCalls.
He said electronic shipments are off some 3-5% in the last
couple of months while garments exports, which used to offset
downturns in the electronics industry, are 75% less due to
limited demand, particularly from the US.
“With these in consideration, we are on the brink of
missing our full-year targets but will still somehow post
a modest growth that will keep our heads above water in the
meantime,” he said.
But if the “current trend continues onto 2008, we will
be in for a challenging year considering the high fuel prices
which are expected to further jack up expenses,” Roxas
explained.
The same predictions are echoed by express companies DHL Express
Philippines and Airfreight 2100.
DHL Express Philippines country manager Lawrence Llamzon told
PortCalls in a separate interview that slowing exports in
addition to high fuel costs are two of the major concerns
of air express service providers in 2008.
Llamzon said the combined 6% decline in imports and exports
in the first six months of the year would have a modest effect
on a company the size of DHL but would potentially be damaging
to small and medium-size firms.
Air21 chairman Alberto Lina, in yet another interview, said
his company’s growth is still anchored on the electronics
sector but dependence on it as a source of revenue would now
be to a lesser degree.
He said the company would be watching out for the movement
of fuel prices and labor costs in making its projections for
next year.
DHL commits full compliance with 100% scanning
rule
EXPRESS firm DHL Philippines is laying down
the ground work for its compliance with a US security measure
requiring 100% scanning of all US-bound cargo by 2012.
“We are now working with the (US) Transport Security
Agency (TSA) on how to comply with the new security requirement.
We have to start this early to prevent any problems in the
future as the US is one of our biggest markets and we are
not prepared to absorb any contraction in our US operations,”
DHL country manager Lawrence Llamzon, said in an interview.
“(While) we wouldn’t know what’s needed
to comply until the TSA completes its infrastructure for the
newest US security rule… we are committed to invest
on those infrastructure like what we have done in the past
when DHL complied with the other post-9/11 attack security
measures implemented by the US,” he said.
Discussions with the Philippine government related to what’s
required locally will also be started.
The Bureau of Customs (BOC) is currently crafting a risk-management
system aside from seeking US accreditation of its scanning
machines to prevent any delays in Philippine exports to the
US.
As early as September, the BOC has assured Philippine shippers
that the impending US regulation will have minimal effect
on the movement of goods.
The Asian Shippers’ Council, however, expressed wariness
over the new legislation and predicted a gridlock at ports
and airports, with Asia — the US’s biggest source
of imports — as the hardest hit.
The council explained that shippers would likely bear the
brunt of increased costs as shipping lines exploit their position
of strength over shippers in the Asian region.
Like its other counterparts from Europe, Japan and Canada,
the council is batting for a multi-tiered risk assessment
through risk analysis and targeted inspections.
FEDEX Philippine licensee Airfreight 2100
(Air21) is allotting almost P1 billion for its expansion program
starting this year until 2010.
The amount will be for the improvement of facilities, warehouses,
technologies, telecommuni-cations and security equipment.
“With our current performance, we have to massively
improve our facilities to achieve better growth prospects
in the next three years,” Air21 chair Alberto Lina said
in an interview.
“We have allotted more than P500 million for our expansion
program and 25% of the amount would be invested for our technological
upgrade as the current homegrown system has become obsolete
and will be replaced with the German software SAP-ERP (enterprise
resource planning) to be more inclined with logistics demand,”
he explained.
The ERP software will consolidate all core aspects of Air21
such as financial, sales, distribution, and human resources
management into a centralized data, providing Air21 employees
real-time information while answering the needs of their clients.
“Our facilities are also almost full and need additional
back-up areas to accommodate more cargo volume. We also have
to upgrade our security facilities with the most accepted
amenities worldwide,” he said.
Air21 is looking at expanding its operations in key cities
particularly Clark, the National Capital region, the Calabarzon
(Cavite, Laguna, Batangas, Rizal and Quezon) economic corridor,
Cebu and Davao to increase reach and accommodate larger cargo
volume.
For 2007, it sees double-digit growth in domestic movement,
with the growth increasing to 20-30% next year anchored on
the performance of the semiconductor and electronic industry.
ASEAN Ports Association moves toward borderless
transaction
THE Asean Ports Association (APA) has identified
eight areas critical to the dream of the Association of Southeast
Asian Nations (Asean) to implement a borderless transaction
with its member economies by 2020. The immediate resolution
of the vital aspects will serve as the building block of an
East Asian Free Trade Area in the long term.
The areas are handling of dangerous goods in Asean ports;
human resources development; electronic transmission of information;
exchange of information on port development projects; privatization/commercialization
activities; implementation of the International Ship and Port
Facility Security (ISPS) Code; simplification of port documentation
and procedures and improvement of APA activities to enable
the association in general and the member countries to actively
and effectively participate in all port-related activities
and cooperation under the Asean transport cooperation framework
agreement.
During a meeting held in the country last week, APA chair
Ho Kim Lan said APA member ports are no longer confined within
the Asean region but have crossed the regional boundary.
“It is time for APA to play a more active role in implementing
the action plans to stay agile and come up with new ideas
and actions for association to work efficiently toward achieving
our business objective amid new opportunities and challenges,”
Lan added.
Among the early potential trade areas once the action plan
is implemented are the Asean plus three relations (Asean,
China, Japan, and Republic of Korea).
Bilateral trading arrangements and cooperation are also expected
to be committed on top of the existing agreements between
Asean, China, Japan and Korea in the longer term.
Asean member countries are integrating economically to attract
more foreign direct investments and compete with the likes
of China and India instead of just being complementary to
these countries.
THE Asean Ports Association (APA) has identified
eight areas critical to the dream of the Association of Southeast
Asian Nations (Asean) to implement a borderless transaction
with its member economies by 2020. The immediate resolution
of the vital aspects will serve as the building block of an
East Asian Free Trade Area in the long term.
The areas are handling of dangerous goods in Asean ports;
human resources development; electronic transmission of information;
exchange of information on port development projects; privatization/commercialization
activities; implementation of the International Ship and Port
Facility Security (ISPS) Code; simplification of port documentation
and procedures and improvement of APA activities to enable
the association in general and the member countries to actively
and effectively participate in all port-related activities
and cooperation under the Asean transport cooperation framework
agreement.
During a meeting held in the country last week, APA chair
Ho Kim Lan said APA member ports are no longer confined within
the Asean region but have crossed the regional boundary.
“It is time for APA to play a more active role in implementing
the action plans to stay agile and come up with new ideas
and actions for association to work efficiently toward achieving
our business objective amid new opportunities and challenges,”
Lan added.
Among the early potential trade areas once the action plan
is implemented are the Asean plus three relations (Asean,
China, Japan, and Republic of Korea).
Bilateral trading arrangements and cooperation are also expected
to be committed on top of the existing agreements between
Asean, China, Japan and Korea in the longer term.
Asean member countries are integrating economically to attract
more foreign direct investments and compete with the likes
of China and India instead of just being complementary to
these countries.
THE Philippine government will implement
starting next year an open skies policy for cargo as part
of its commitment to logistics integration of the Association
of South East Asian Nations (Asean).
The liberalized air freight service is the first step in the
full liberalization of aviation services in the region ahead
of the planned Asean economic integration by 2015.
Transportation and Communication Secretary Leandro Mendoza,
in an interview at the sidelines of the Asean Port Association
meeting last week, said the policy will involve designated
airlines of each Asean member country to operate all cargo
services of up to 100 tons weekly with no limitation on frequency
and aircraft type.
He said the policy will boost the country’s chances
of bringing in more high-value cargo and lower transportation
cost.
“The Philippines is committed to integrate its logistics
industry to the rest of the Asean region earlier than the
2015 deadline. Next year, we will start the cargo open skies.
With these, we expect to achieve a single market and a single
policy for aviation integration for the entire Asean region,”
Mendoza explained.
The Philippines has designated Philippine Airlines and Pacific
East Asia Cargo Airlines as the country’s official carrier
under the liberalized airfreight services.
