THE Customs Administrative Order that will
establish the Authorized Economic Operator (AEO) program in
the Philippines, to be known as Customs-Trade Alliance to
Protect and Accelerate Trade or C-TAPAT Program, will be completed
within the year.
This is the commitment of Deputy Customs Commisioner Reynaldo
Nicolas, whose office leads the drafting and implementation
of C-TAPAT, to Customs Commissioner Napoleon Morales and Aircargo
Forwarders of the Philippines Inc (AFPI) officials.
AFPI chairperson Cynthia Tsui, president Jim Roxas and director
Dominador de Guzman recently made a courtesy call to Commissioner
Morales, DepCom Nicolas and Collector John Simon.
The association organized the successful 1st National SAFE
Trade and AEO Conference which brought together cargo security
experts and the logistics industry. At the end of the two-day
conference, a draft AEO was produced with extensive input
from the private sector.
During the AFPI officials’ courtesy meeting, DepCom
Nicolas noted BOC needs to create an AEO capacity-building
program in order to ensure the program’s success.
He said the lead agency for the C-TAPAT Program at the BOC
will send supply chain security specialists for training abroad.
The BOC’s C-TAPAT program name closely resembles the
C-TPAT (Customs-Trade Partnership Against Terrorism) Program
of the United States.
The Customs order seeks to enable the Philippines to comply
with its commitment to implement the WCO Framework of Standards
to Secure and Facilitate Trade. It paves the way for the establishment
of a voluntary certification program (C-TAPAT) that follows
the WCO’s AEO concept. The program aims to “help
certain economic operators in the international supply chain
adopt control measures to enhance the security of the chain.”
The US C-TPAT is also a trusted shipper supply chain program.
The proposed C-TAPAT will initially apply to importers already
accredited as Super Green Lane importers, then to exporters
and later on to other economic operators in the international
supply chain. Economic operators who want to join C-TAPAT
must have the following: security management systems in place;
risk assessment of their business operations; security measures
stipulated in this order should be included in the company’s
security policy, objectives and commitment; and procedures
for communicating security management information to all stakeholders.
AFPI chairperson Cynthia Tsui (third from right), AFPI president
Jim Roxas (second from left) and AFPI director Dominador de
Guzman (rightmost) presented to Customs Commissioner Napoleon
Morales (third from left), Deputy Commisioner Reynaldo Nicolas
(second from right) and Collector John Simon (leftmost) photos
of the 1st National SAFE Trade and AEO Conference held recently
at the SMX Convention Center.
Truckers go ahead with auto rate adjustment mechanism
TRUCKERS said they will push through with
plans to adopt an automatic rate adjustment scheme even with
the recent softening in fuel prices.
The Confederation of Truckers Association of the Philippines
(CTAP) and the new Integrated North Harbor Truckers Association
(INHTA), two of the largest truck associations in the country,
said the measure is still necessary because they believe the
recent dip in the oil price is temporary.
The price of fuel as of this writing hovered near $142 per
barrel, lower than the recent peak of $145.85.
Under the automatic adjustment scheme, trucking rates will
automatically increase once the price of diesel reaches a
certain level. Both groups will use the P52 per liter as base
price for the increase.
The groups said the scheme will allow them to do away with
the tedious process of pre-approval from clients before raising
rates.
CTAP operators can automatically increase their rates by a
certain percentage if the price of diesel rises 30%. INHTA
operators can do the same if diesel prices go up 10%.
CTAP will include the hike in the general rate while INHTA
will collect it by way of a surcharge.
“We are implementing the scheme… as we expect
prices to still go up despite the P1 per liter cut implemented
(by some oil companies) last week,” CTAP president Col.
Rodolfo De Ocampo told PortCalls.
Increased cost of tires, spare parts and other maintenance
components have also contributed to higher overheads, he added.
INHTA president Catalino Costales, for his part, said the
measure is a survival relief and parallel to the recovery
adjustment rate implemented by local shipping lines from Manila
to the Visayas and Mindanao last month.
“We are implementing the surcharge on top of our general
rate increase approved by the PLSA (Philippine Liner Shipping
Association) as well as another round of rate increase at
the start of next month as we can no longer bear the brunt
of rising fuel costs,” Costales said.
On July 1, CTAP jacked up rates by 30%, the first hike in
two years, to recover losses related to fuel, labor and maintenance
expenses.
From South Harbor, CTAP members transporting 20-foot containers
within Metro Manila now charge P8,060 from only P5,642, and
P8,840 for 40-foot containers from P6,188.
Beyond EDSA, CTAP collects P9,090 for 20-footers going to
Valenzuela and P11,960 for 40-footers going to Meycauayan.
INHTA 20-footer rates within the 40-km radius from the National
Capital Region is now at P6,000 or P395 higher than the previous
P5,610.
By August 1, INHTA members will be adding a P284 recovery
surcharge for 10-footer containers; P405 surcharge for 20-footers;
and P688.50 for 40-footers or tandem scheme within the 40-km
radius round trip services or equivalent to a P10.13 per kilometer
increase based on the 40-km radius. Rates are exclusive of
the expanded value-added tax.
The price of diesel, the most common fuel used by trucks,
has increased about P20 per liter since January this year
to about P53 and P54.97 per liter. If the weekly P1.50 per
liter increase resumes, the price of diesel may hit the P60
per liter level by mid-August.
Seized goods pending court action to face
auction block
THE Bureau of Customs (BOC) is implementing
a new auction policy to get rid of overstaying containers.
The measure calls for the sale of seized items with pending
court cases and is designed to protect goods from further
depreciation, Customs commissioner Napoleon Morales said.
The BOC has filed appropriate pleadings before the Court of
Tax Appeals to allow it to offer the forfeited items for public
auction.
First on the auction block are 24 smuggled industrial generators
seized in Bataan last year. Proceeds of the sale potentially
worth at least P300 million would go to a trust fund.
“This will safeguard the interest of the government
if we won the case, as well as the other party because as
days go by, the goods will deteriorate and they cannot be
sold at the same value,” Morales explained.
The generators form part of 37 containers released at the
Port of Subic on May 23, 2007. The importer, Iranian company
National Petrochemical Corp. Alliance Corp, used tax exemption
certificates from the Department of Finance on pretense that
it will hold a 17-week exhibit in its warehouse at the PNOC
Park.
A Department of Finance Revenue Express Lane officer granted
the exemption on condition that the Agrekko generators will
be used solely for exhibition purposes and re-exported after
the exhibit. The consignee posted a re-export bond equivalent
to 150% of the assessment of duties and taxes.
“The certificate of exemption was used in the filing
of the import entry to clear and release the shipment,”
said Morales.
However, during a standard documents profiling, Customs agents
discovered no exhibit took place and that the generators were
put up for sale, with 13 ha-ving been sold.
“This is a new scheme to skirt payments of taxes,”
said Morales.
The Presidential Anti-Smuggling Group (PASG) earlier said
the BOC should dispose of an esti-mated 1,700 overstaying
containers within BOC ju-risdiction.
Of these, 956 are 30 to 89 days old; 329, 90 to 364 days old;
and 439, older for a year or more.
AS it enters its 38th year in the business,
Dimerco Express Philippines, Inc is banking on its successful
China operations to cement the company’s reputation
as one of the country’s top logistics specialists.
“We continue to position ourselves as one of the logistics
specialists in China. With over 63 offices in greater China
and a total of 127 branches worldwide, Dimerco has become
one of the major players in this industry,” Dimerco
country manager Philip K. Lim said in an interview.
Recently, Dimerco opened its 128th branch in China, the Zhongjing
International Express Co., Ltd. Shenzhen Branch, Domestic
Transportation Division Shenzhen BaoAn Operation hub.
Dimerco has in the past relied heavily on its core competencies
and able management team to achieve its dream of becoming
a competitive international logistics service provider, integrator
and consultant.
The company said the following qualities are crucial in its
success: magnanimity of foresight, communication and coordination,
self-motivation in pursuit of excellence, clear grasp of opportunity,
self-responsiveness, crisis management strategy and open-minded
management techniques.
“For years, our quality competencies have brought us
up to this level. I believe that we can still be a major player
in the next generation with the new Dimerco team particularly
if the new generation continues to carry these qualities,”
Lim said.
“In the future, I also expect more innovative ideas
to meet the needs of the fast-changing market and transportation
requirements specifically in a situation where the market
demands more,” Lim said.
Part of these innovative ideas is an IT system called e-chain
12363 designed to further boost the company’s efficiency
and customer response capabilities. E-chain 12363 stands for
1 system, 2 data banks, 3 platforms, 6 operation modules and
3 supplementary functions.
The system seeks not only to consolidate internal data and
information for enhanced management performance but also to
help customers bolster their competitiveness by providing
external data integration and real-time information visibility
for effective supply chain management.
Established in 1971, Dimerco is a proactive player in the
evolving world of international transportation and logistics.
It aims to meet customers’ diverse needs by providing
efficient and effective total solutions in a flexible, professional
and cost-conscious manner.
Seaworld stresses personal touch, partners with Uni-Ship
RECENTLY launched Seaworld Express Lines
Ltd is a global non-vessel operating common carrier (NVOCC)
that puts emphasis on the personal touch.
“While being truly global in our reach, the company
strives to provide customers with a personal touch, which
means we are close enough to our customers to understand their
exact needs, and tailor bespoke solutions,” SEL managing
director David J. Halliday said.
“We have quickly realized that generally speaking big
attract big, and personalized service levels are lost because
business models become too rigid to bend according to customer
needs which, in turn, means supply chain efficiencies are
compromised,” Halliday explained.
SEL is a one-stop shop offering not only full container load
or less than a container load seafreight capability, but also
airfreight, project cargo handling, warehousing, transport
and security services. It boasts more than 100 offices covering
86 countries.
SEL shareholders work as active agents for the NVOCC in their
respective territories: Seafast Logistics PLC in the United
Kingdom; Seaworld Shipping and Logistics in India; Chiao Feng
in China; and Contship/CP Ships in Jordan, with coverage of
Syria and Lebanon.
SEL is selective of business partners, associating only with
those that will support its personal touch initiative. In
the Philippines, it is represented exclusively by Uni-ship
Incorporated.
Not only does it subscribe to offering tailor-fit solutions,
Uni-ship shares SEL’s one-stop shop strategy: A shipping
and logistics agency for more than two decades, Uni-ship’s
combination containerized and non-containerized businesses
supported by its auxiliary services such as customs brokerage,
freight forwarding, trucking, surveying, among others, have
allowed it to establish a strong foothold on the local shipping
industry.
Uni-ship is also the exclusive agent of C& Line (formerly
Dongnama Line) and Sinotrans Container Lines Co Ltd of China
in the Philippines. It is active in tramp and chartering services,
handling various bulk materials and continues to strengthen
its business relations with tramper principals worldwide.
Recently, Uni-ship strengthened its forwarding division by
opening its own branches nationwide to better cater to the
needs of local importers and exporters.
Seaworld stresses personal touch, partners with Uni-Ship
THE Philippine Ports Authority (PPA) on
its 34th year continues to pursue the national government’s
agenda of fostering regional growth and stability. As one
of the key levers counted on to accelerate the realization
of President Gloria Macapagal Arroyo’s program of economically
empowering the people and the countryside, the PPA, through
the leadership of its General Manager, Atty. Oscar M. Sevilla,
has steered the organization toward accomplishing the centrerpiece
programs of PGMA consisting mainly of port projects that serve
as the backbone of the Strong Republic Nautical Highway (SRNH),
SONA and Accelerated Hunger Mitigation Program.
Besides the Ro-Ro port links, the PPA remains focused in accomplishing
its corporate vision of port modernization, giving premium
to the development of at least ten major ports according to
international standards or best practices in port facilities
and services by 2010. When fully developed, these ports, i.e.
North Harbor (Manila), South Harbor (Manila), MICT (Manila),
Batangas, Iloilo, Ozamis, Cagayan de Oro, Zamboanga, Davao
and General Santos will be able to receive recent generation
vessels and handle larger volume of domestic and foreign cargo
and passengers.
On the other hand, the component ports of PGMA’s SRNH,
SONA and Hunger Mitigation programs are designed to open doors
and connect remote islands to the mainstream of economic activities
to stimulate growth. While these are smaller ports, they are
imbued with socio-economic and political importance and effectively
complement the major gateways. Both the major gateways and
the SONA ports effectively complete the networks of ports
that run across the country along the following nautical highways:
Western Nautical Highway, Central Nautical Highway and Eastern
Nautical Highway.
The SONA ports, namely Dingalan, in Aurora, Quezon; Lucena
(Dalahican), Quezon; Cawit, Boac, Marinduque; San Pascual,
Burias Island, Masbate, Aroroy, Masbate; Cawayan, Masbate;
Esperanza, Masbate, Maripipi Island, Biliran and Naval, Biliran,
serve to guarantee that trade will be facilitated in identified
growth areas in various parts of the country through the availability
of complementary facilities and services in the waterfronts.
Impact of Port Projects
The SRNH plays a critical role in facilitating inter-island
commerce to spur growth in various economic hubs in the country.
The SRNH, through Roll-On/Roll-Off facilities (RoRo), not
only increased the mobility and widened the market for local
products but also dramatically reduced logistic and transport
costs which mostly benefited the small and medium-scaled businesses,
particularly those in the agricultural sector, as well as
the ordinary sea travellers and tourists.
At present, almost all SRNH ports are complete. Just recently
PGMA herself together with some cabinet members toured the
just finished Central Nautical Highway which is one of the
three major subsystems of SRNH. The central seaboard consists
of the ports of Bulan in Sorsogon; Masbate and Cawayan; Bogo,
Cebu, Tubigon and Jagna of Bohol, Mambajap and Benoni in Camiguin
and Balingoan in Cagayan de Oro. PGMA is slated to also open
the Eastern Route as soon as it is completed within this year.
Areas where these new RoRo ports are located, such as Cawayan,
Masbate, will be greatly benefited as ports are catalysts
of economic activities and are anticipated to open opportunities
to shore up business in economically depressed communities.
Consequently, the living conditions of the people can be expected
to improve as industries are established and job openings
are generated.
The RoRo stakeholders were unanimous in their assessment that
in only five years, the program, in the case of the Western
Nautical Highway, delivered much of its promised benefits.
The benefits include reduced transport cost, increased regional
trade, enhanced tourism and agricultural productivity, growth
in investments and development of the countryside as well
as poverty reduction. The transportation costs have also been
reduced as multiple loading and unloading of goods were eliminated.
