Importers of
second-hand goods get stricter rules
THE Bureau of Customs (BOC) is issuing more
stringent guidelines for importers of second-hand merchandise.
The move is designed to curb the practice of declaring shipments
as off quality to side step the correct payment of duties
and taxes.
“If they (importers) declare that their items are not
of prime quality, they must prove it and produce supporting
documents to back up their claim,” Customs commissioner
Napoleon Morales said.
Based on Customs Memorandum Order (CMO) 21-2008, all items
classified as stocklots, sideruns, cull rolls, seconds, mill
lots, off grade, B-grade, C-grade, used, second hand, off
specs, substandard, off quality, overruns, sweepings, overflow,
recycled, waste waste, reconditioned, refurbished, refashioned,
surplus, scrap, scrap metals, metal waste, cut up, bath roll,
odd lengths, and unbranded will be subjected to 100% inspection
in the presence of technical experts.
Importers should also have a duly notarized manufacturer’s
or supplier’s certificate of quality as to the actual
condition of the articles, including the standard for the
product being imported, and its deviation from such standards,
which reduced its quality.
The manufacturer’s certificate must be accompanied by
the authentication of the commercial attaché or consulate
of the country of origin to ensure the genuineness of the
suppliers’ certificate.
Morales said the latter document is difficult to secure as
most commercial attachés will not affix their name
on dubious shipments.
He added the articles will be subject to laboratory analysis
by the Philippine Customs Laboratory and, in the absence of
such a facility, tested by the Department of Science and Technology
to determine if they should be considered prime commodity
or off-quality.
Based on the CMO’s operational provisions, an allowable
discount of not exceeding 30% per standard trade practice
of the industry based on the Customs value of brand new or
prime quality articles may be allowed for shipments found
by the ports as substandard or off quality.
Principal appraisers and examiners will check and conduct
a return of findings on the actual condition of the shipment
and verify the accuracy of the manufacturer’s or suppliers’
certificate of quality submitted by the importer. The CMO
said failure to perform such duties will be ground for disciplinary
action pursuant to the Civil Service Rules and Regulations.
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PISFA targets reduction of lines’
other charges
AFTER getting a reprieve from some members
of the Association of International Shipping Lines (AISL)
on the container deposit fee, the Philippine International
Seafreight Forwarders Association (PISFA) is now looking at
reducing other charges levied by shipping lines not part of
the AISL.
Among these charges are the facilities and administration
recovery charge, container cleaning fee, telex release fee,
container insurance, cost recovery charge and the bill of
lading (B/L) fee.
“These charges are implemented unjustifiably and shipping
lines always enforce any increase at their liberty without
properly informing shippers,” PISFA president Dexter
Yu told PortCalls.
“PISFA has been clamoring for a lengthy and proper meeting
with the lines in the past couple of months as such fees have
direct impact on the country’s exports,” Yu added.
The association has written the Philippine Shippers’
Bureau (PSB), requesting it to take the lead in asking international
carriers to come to the negotiating table.
“Hopefully, with PSB as the lead agency in the negotiations,
we could get very favorable results to complement our own
initiative in bringing down the total logistics cost of shipping
products to the international market,” Yu stressed.
Early this month, five AISL-member lines agreed to ease requirements
on the container deposit fee to give forwarders breathing
room amid volatility in the international freight forwarding
industry.
PISFA and AISL are working on a follow up agreement focusing
on the telex release fee and B/L fee before tackling other
more contentious issues such as the terminal handling charge.
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More funds offered to ro-ro operators
THE government is allocating P2.04 billion
to acquire 24 vessels for lease or sale to roll on-roll off
(ro-ro) vessel operators.
The amount is 200% higher than what was set aside last year.
It will be released through the NDC-Maritime Leasing Corp
(NMLC).
Under the program, ro-ro operators availing of vessels 15
years or younger which will serve missionary routes will receive
a five-year exclusive right to such routes.
Last year, NMLC had difficulty marketing its program due to
limited funds until the Development Bank of the Philippines,
which also offers ro-ro loans under its Sustainable Logistics
Development Program, acquired NMLC.
At present, there are 92 ro-ro-capable ports, with more expected
within the year.
A total of 68 ro-ro routes are being served by 49 shipping
companies operating more than 250 ships.
In a presentation during the recent Strong Republic Nautical
Highway conference in Cagayan de Oro City attended by President
Gloria Macapagal-Arroyo, NMLC president Agustin Bengzon said
the ro-ro sector offered big investment opportunities.
NMLC offers a 5% fixed interest rate for loans covering vessels
plying missionary routes and 10% for commercial routes.
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Del Monte ventures into $1M cold storage
facility
CAMIGUIN ISLAND — US firm Del Monte
Fresh is sinking in at least $1 million to operate a cold
storage facility in the Cagayan de Oro (CDO) port. The facility
will be operated in partnership with Oro Port , CDO port’s
cargo-handling operator.
In an interview at one of the recent stops during the Central
Nautical Highway Ro-Ro Caravan, CDO port manager Efren Bollozos
said the port expects an increase in cargo throughput even
as it sees more competition from nearby port Mindanao Container
Terminal (MCT). MCT will soon be operated by International
Container Terminal Services, Inc, which won the competitive
bidding.
The cold storage facility will occupy 4,000 out of the unused
5,000 square meters of the port’s container freight
station.
“We anticipate to open the cold storage facility within
the second semester of the year, initially accommodating shipments
of Del Monte only,” Bollozos said.
“We expects at least a 5% increase in our throughput
once the new cold storage facility starts full commercial
operations,” he added.
Del Monte Fresh imports at least 200 TEUs a week of fresh
pineapples from its 10,000-hectare Philippine plantation in
northern Mindanao.
Its local subsidiary Del Monte Philippines is also looking
at shipping pineapples in containers through the CDO port
aside from its own private port.
Cagayan de Oro, one of 10 Philippine ports being groomed to
have international standards by 2010, expects to hike cargo
throughput by 5% annually or 150,000 metric tons starting
this year until 2010.
The growth forecast is one of the highest among the country’s
ports, anchored on the area’s robust agro-industrial,
steel and manufacturing sectors.
Up to 571,807 metric tons of cargo are expected to come from
the domestic trade and 86,092 metric tons from the foreign
trade.
From 2008 to 2010, domestic cargo is seen rising by 30,000
metric tons annually and foreign cargo by 5,000 metric tons
annually.
CDO has posted negative cargo volume in recent years. From
a 12% increase in 2004, throughput dropped more than 16% to
–4% in 2005.
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Synchronized truck ban likely in place this
month
CAGAYAN DE ORO CITY.—Truckers will
finally get their wish of a nationwide synchronized truck
ban as early as this month.
“The government will strictly impose the synchronized
truck ban even on uncooperative local authorities to facilitate
the movement of goods nationwide,” Land Transportation
Office chief Albert Suansing told PortCalls at the sidelines
of the recent 2nd Ro-Ro Conference in this city.
“It is a complimentary move to the earlier decision
of government to lift the ban on trucks carrying food products
to reduce transit time,” Suansing, a former trucker
and head of the Road Board, said.
The porposed truck ban schedule will follow the 6am to 9am
and 5pm to 9pm window being implemented by the Metro Manila
Development Authority.
Local government units in Metro Manila currently ban trucks
from main thoroughfares from 7am to 9am and from 3om to 9pm.
Since March, the Confederation of Truckers Association of
the Philippines has been pushing for the immediate implementation
of the synchronized truck ban under Executive Order 712, saying
this could save them 20% in transit time and in overheads.
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ICTSI not keen on NCT-2
INTERNATIONAL Container Terminal Services,
Inc. (ICTSI) is definitely not interested in bidding for the
New Container Terminal (NCT)-2 when Subic Bay Metropolitan
Authority (SBMA) auctions the terminal next month.
“Our current capacity in Subic is enough as of the moment,”
ICTSI president and chief executive Enrique Razon said in
an interview at the sidelines of the company’s recent
stockholders’ meeting.
“We are not keen on bidding for NCT-2 but nonetheless,
we will have to look at the bid documents and decide from
there if we are going to bid,” Razon added.
ICTSI, through its Subic subsidiary Subic Bay International
Terminal Corp. (SBITC), owns the concession for NCT-1, which
will be fully operational soon.
SBITC has allotted P473 million for NCT-1, mainly for the
construction of an administration office, motor pool/engineering
office, truck holding area, refueling station, and field office.
The management and operations of NCT-2 is being auctioned
for 25 years, renewable for another 25, through a competitive
international bidding.
The SBMA expects operations of NCT-2 to further boost the
port’s breakbulk business, swelling by 40% annually
since three years ago. SBMA has invested $80 million into
NCT-2.
NCT-2 has a capacity of 300,000 TEUs, expandable to 600,000
TEUs. The facility has potential annual revenues of $6 million,
including wharfage fees.
The annual lease for the port, which has a lifespan of 50
years, will be enough to shoulder the $60-million loan from
the Japan Bank for International Cooperation used to partly
fund the project.
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TNT: New security measures won’t
cost customers
TNT Express Philippines’ compliance
with new US and European Union supply chain security requirements
will not translate to additional cost for its clients.
The express operator’s new country manager Cetin Yalcin
in an interview with PortCalls said that while TNT is sinking
in huge investments to comply with the measures, they see
no need to pass on the cost to clients.
“We have no gap in terms of security. We are complying
with the new security requirements such as the advance manifest
and the Authorized Economic Operator or AEO requirements from
the US and European countries without any cost impact to our
clients,” Yalcin explained.
“The cost will be recovered through faster clearance
and transit time as we believe that time is as valuable as
money. This is our core strength. We are way ahead of our
competitors in this aspect and we will take advantage of this
to increase our market and reach,” Yalcin said.
“In the coming years, we expect that TNT will be one
of the preferred AEOs,” Yalcin added.
All over the world, TNT offices are putting in the needed
infrastructure such as scanners to enhance cargo security,
appointing security managers, and ensuring certification for
all of its security operations.
In the EU, TNT was the first to apply for an AEO.
The AEO system was introduced in the EU at the start of 2008.
This means reliable traders that meet specified criteria may
obtain facilitation from security measures and also ask for
simplification as provided for under customs rules.
Recently, the EU also adopted Regulation 1875/2006 aimed at
increasing security for shipments entering or leaving the
EU. The measures should produce faster and better targeted
customs controls that facilitate legitimate trade but tighten
minimum security and safety requirements.
In addition, from July 2009 it will become mandatory for traders
to provide customs authorities with advance information on
goods brought into or out of the customs territory of the
EU.
The US, on the other hand, has implemented the advance manifest
requirement 24 hours prior to loading of all US-bound cargoes.
It is set to implement an all-container scanning regime on
all US-bound cargoes by 2012.
In the next five years, TNT is investing about 100 million
euros (P6.5B) to strengthen its network coverage, connectivity
and infrastructure to take advantage of soaring demand for
freight express services between Southeast Asia, China and
Europe.
Complementing its Asia Road Network, which links over 120
cities in Singapore, Malaysia, Thailand, Vietnam and China,
the enhancement of TNT’s air network offers customers
an integrated, multi-country, multimodal solution and hence
a one-stop-shop approach to developing customized solutions
for moving heavy, high-value shipments.
With its strong domestic network capabilities, TNT is capable
of moving freight between major cities in Southeast Asia and
China with an average transit time of 48 hours. To Europe,
the company offers transit times as short as one day.
TNT provides businesses and consumers worldwide with an extensive
range of services for their mail and express delivery needs.
Headquartered in the Netherlands, TNT offers efficient network
infrastructures in Europe and Asia and is expanding operations
worldwide to maximize its network performance.
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