PORT users may soon be charged higher cargo-handling
rates by the country’s two main ports, International
Container Terminal Services, Inc. (ICTSI) and Asian Terminals,
Inc. (ATI).
In an interview at the inauguration of the new K-Line facility
for its ship management business last Friday, Association
of International Shipping Lines (AISL) president Octavio Katigbak
said the association has been apprised of the proposal of
the two port operators to increase rates starting this year.
The proposal is now with the Philippine Ports Authority (PPA).
“The rate is between 12% and 14% and could be spread
out over the next two years just like what was approved and
implemented in 2005 and 2006 when the increase was implemented
in two tranches,” Katigbak said.
“It’s now up to the PPA to strike a win-win solution
with port users,” he added.
Higher costs have pushed ATI and ICTSI to seek increased rates.
Both became qualified to boost their rates after the completion
of their two-tranche hike in 2006.
PPA, for its part, said it is expecting petitions for increases
not only from ATI and ICTSI but also from other cargo-handling
operators.
PPA general manager Atty Oscar Sevilla said the agency will
favor the increase so long as they satisfy new requirements.
Under the new guidelines, the application or request for rate
increase should be presented in matrix form and show separately
the existing tariff, the adjusted tariff applied for and the
legal or other justification for such application.
Individual service providers are also required to submit financial
statements to include the balance sheet, income statement
using appropriate chart of account in accordance with the
Philippine financial reporting system; detailed computation
of proposed rates; and copies of source documents like government-mandated
wage adjustment, increase in power and fuel cost, and exchange
rate of the Philippine peso to the US dollar.
Across-the-board increases
For across-the-board increases, the PPA is requiring a detailed
computation of the proposed rates as well as copies of source
documents such as the consumer price index, wage adjustment
orders, increases in power and fuel and the foreign exchange
rates.
The source documents should include figures for the year the
last increase was granted up to the present year where the
adjustment of rate is required.
The PPA Board has the final word on whether to grant the petition
for increase or not. It may, however, give provisional approval
to an increase pending completion of the review and Board
approval.
Once approved, the increase should be published in a newspaper
of general circulation 30 days prior to its implementation.
No corporations may register with VASPs, says BOC VASP Secretariat
ANOTHER storm is brewing at the Bureau of Customs
(BOC). This after one of the bureau’s accredited value-added
service providers (VASP) claimed the VASP accreditation secretariat
will only allow individual licensed customs brokers and general
professional partnerships to register with the VASPs.
“The marching order from the BOC is that only individual
customs brokers will be allowed to register and lodge entries
in Phase II of the E2M (electronic-to-mobile) project of the
BOC,” E-Konek Pilipinas general manager Willie Ortaliz
told members of the Chamber of Customs Brokers Inc (CCBI)
in a briefing last week.
“Once enforced, no entries will be accepted by the BOC
gateway unless it is lodged by an individual broker using
his own personal circumstances and electronic signature,”
he added.
This effectively shuts out corporations and brokerage houses
from signing up with VASPs.
The Port Users Confederation, Philippine International Seafreight
Forwarders Association and the Aircargo Forwarders of the
Philippines, Inc insist corporations must be allowed to register
with VASPs because some customs entries to be filed through
them (VASPs) are known only to importers or their forwarders
– most of which are invariably corporations.
The groups also decried what they claim as the apparent link
being made between the VASP registration and Republic Act
9280 or the Customs Brokers Act of 2004. The latter’s
prohibition on corporate practice and its bias toward individual
customs brokers exclusively performing customs clearance at
the BOC are a source of friction among transport industry
stakeholders.
The news that the VASP registration may be restricted to individual
licensed customs brokers is being taken by some as BOC’s
attempt at introducing policies compliant with RA 9280.
RA 9280 is, however, currently facing amendments at the legislature,
mainly to allow corporations to file entries at the BOC using
their in-house customs brokers.
BOC’s insistence on individual customs brokers being
the exclusive registrants to VASPs sits well with brokers
particularly the CCBI, so far the only accredited professional
organization under RA 9280.
CCBI said this could end the battle it has been waging since
RA 9280 was signed into law. That battle is premised on individual
brokers being the only ones allowed to file, lodge and process
customs entries at the BOC.
The BOC is currently allowing corporations to file entries
as long as these are filed with the personal information of
the corporate broker alongside that of the corporation’s
tax identification number.
Phase II of the E2M project involves the Client Profile Registration
System (CPRS) that will allow the BOC to access information
on all persons and companies with which it has transactions.
The system, still undergoing pilot testing, requires the individual
broker’s electronic signature before any entry is processed.
For possible rollout next month, Phase III involves automation
of the export sector.
THE Maritime Industry Authority (Marina)
is calling on local and international vessel operators to
address the shortage in local container vessels.
Marina said demand for boxships will continue to be strong
in the near term with the expected boom in the local cargo
industry in the next three to five years.
Large manufacturers such as Nestle and state-owned National
Food Authority have complained to Marina about the need for
more vessels to avert delays in shipment deliveries.
The situation has not been helped by the sale of four container
vessels by the Aboitiz Transport group in the last two years,
which has translated into a market deficiency of 20,000 twenty-footers
a month.
“Everybody is welcome to introduce vessels into the
local trade as long as they are willing to re-flag in the
future just like… the (joint venture of) Aboitiz Group
and AP Moeller Maersk MCC Transport Philippines,” Marina
administrator Vicente Suazo, Jr said in a press briefing.
“A special permit has been issued to MCC Philippines
for its vessel Med Bay to operate in the local trade to address
the shortage despite (it) being foreign flagged. But they
are now in the process of re-flagging,” he added.
“Lorenzo, Oceanic, NMC [National Marine Corp] and other
local carriers are welcome to adopt such a process…
they will not be violating laws as this is allowed at this
time not just to strengthen the local ship registry but to
address the shortage of cargo vessels,” Suazo said.
The local carriers, all members of the Philippine Liner Shipping
Association (PLSA), are up in arms over the permit given to
MCC Philippines to operate in the local trade, calling it
detrimental and in violation of the country’s Cabotage
Law.
They claimed the permit of MCC Philippines should have been
revoked with the arrival of several new vessels owned by PLSA
members.
Meanwhile, MCC Philippines may even introduce another vessel
in the local trade while it is still completing re-flagging
and re-crewing requirements in compliance with the country’s
domestic shipping laws.
Based on PLSA figures, the freight business is expected to
grow 10-15% this year then double by 2010, thanks to the robust
mining and construction industries.
THE Philippine Senate has begun hearing proposed
amendments to the Tariff and Customs Code of the Philippines
(TCCP) in time for the expected accession of the country to
the Revised Kyoto Convention (RKC) in April.
The amendments are necessary to harmonize the TCCP with the
RKC which standardizes customs procedures.
The Bureau of Customs (BOC) is lobbying for amendments to
the 30-year old law last revised during the Marcos era.
“The draft of the Customs Modernization Bill has been
submitted to the legislative branch of government for its
passage into law. The consolidated customs regulations structured
along the lines of RKC will be completed before the RKC (is)
fully enforced if the country is able to accede to the convention
by April this year,” the BOC said in a report.
Specifically, the bill consolidates customs regulation which
will codify, systematize, and align all customs regulations
and procedures with the standards and recommended practices
of RKC.
Ratification requires BOC and other government agencies to
follow some 120 binding provisions of convention including
on duties and taxes; customs control; the use of information
technology, risk management, and audit techniques; pre-arrival
processing, transparency of customs regulation, and partnership
approach between customs and trade.
The country has three years to enforce standards required
by the treaty and five for the transitory standards.
BOC said it has completed the terms of reference, funding
requirements, bills for legislation, and operations manual
related to RKC compliance.
2GO, the logistics arm of the Aboitiz Transport
group, over the weekend tied up with the Foundation of the
Society of Fellows in Supply Management, Inc (SOFSM) and the
Jose Rizal University (JRU) to offer an undergraduate course
on Supply Management.
The Bachelor of Commercial Science Major in Supply Management
will focus on the four aspects of supply management: sourcing
and procurement, manning and replenishment, logistics operations
and customer service. It can be taken as a certificate course
to be completed in two years or a full degree in four years.
“The goal of 2GO is to lower the total supply chain
cost in the Philippines. This can become a reality when the
public is educated on how to maximize the industry,”
2GO president and chief executive Sabin Aboitiz said.
2GO will also offer scholarships and job opportunities for
the course graduates.
“There is a dearth of Supply Management professionals
because there is no academic training available. Most professionals
learn the industry through experience or training seminars
while they are on the job. It is really high time for a course
to be developed on supply management that provides theoretical,
political and practical training for students,” SOFSM
president Romeo Recto said.
JRU president Dr. Vicente K. Fabella described the course
as timely, considering the great demand for logistics expertise
among businesses.
PPA asks court to reconsider order on North Harbor case
The Philippine Ports Authority (PPA) is urging
a Manila court to reconsider junking a case involving the
North Harbor bidding process.
At the same time, the agency is contemplating on filing a
separate petition to hold the court liable in case of an accident
at the structurally weak North Harbor facility if the court
prolongs the case resolution.
In a hearing at Branch 21 of the Manila Regional Trial Court
last week, the PPA reiterated that the case filed by Habour
Centre Port Terminals Inc and joint venture partner Metro
Pacific Investments Corp on the privatization of the Manila
North Harbor should be dismissed because of a waiver signed
by both firms before the bidding. The waiver prohibits bidders
from suing PPA during the bidding process.
The court has already denied PPA’s first plea for dismissal
last December.
Harbour Centre submitted an amended petition that was not
made available as of presstime Friday.
Harbour Centre with partner Metro Pacific is the lone bidder
for the project. The company filed a case in August last year
after the PPA board insisted on at least two bidders for the
project.
PPA has suspended bidding proceedings pending final resolution
of the issue.
