The Export Development Council (EDC) has expressed its support for the Bureau of Customs’ (BOC) draft memorandum order on revised rates of off-dock container yard/container freight station (CY/CFS) operators.
The draft CMO would amend CMO 24-2001, which prescribes rates for offdock CY/CFS operators.
In a recent position paper sent to Customs Commissioner John Phillip Sevilla, EDC said it “strongly recommends that the BOC exercise its power and authority per CAO 11-80 in order to promulgate uniform rates to be charged by CY/CFS and to ensure that the overall logistics costs are viable and reasonable.”
Customs Administrative Order 11-80 authorizes the customs commissioner to promulgate uniform rates to be charged by offdock CY/CFS operators.
PortCalls earlier reported that Sevilla was eyeing deregulating the sector by scrapping the BOC-set rates under CMO 24-2001.
The EDC noted that it supports the passage of the proposed CMO to regulate the imposition of higher charges on exporters and importers by CY/CFS operators. The group added that rates to be levied yard operators should not exceed those set in the draft memorandum.
“We strongly oppose the resolution of the Association of Off-Dock CY-CFS Operators Philippines (ACOP), which collects higher fees and by more than 100% from the existing rates,” EDC stated.
The ACOP last year issued a resolution on interim rates that its members enforce on a voluntary basis pending issuance of a BOC memo amending the rates under CMO 24-2001.
“Higher cost of doing business in the ports becomes a burden to cargo owners, particularly to the small and medium enterprises, which will result (in) uncompetitiveness of Philippines exports,” EDC said.
It said higher costs “will (have) a negative effect on our competitiveness rankings”, citing especially the 2014 Logistics Performance Index of the World Bank, in which the Philippines slipped five notches to 57th from its 52nd ranking in 2012.
“Furthermore, the ACOP resolution violates the existing CMO which is still in force,” EDC pointed out.
The public-private partnership council said there should be transparency by showing the rate components, such as congestion charge and peak charge. It added that there should be proper consultations among stakeholders on the proposed amendment of the CMO.
Philexport stand
The Philippine Exporters Confederation earlier wrote a position paper urging Sevilla to issue a revised CMO on off-dock CY/CFS rates.
Philexport said the delay in issuing and implementing the CMO “has resulted in rates that are now more than double the pre-CMO 24-2001 levels, per informal reports from our members.”
The group argued, “Cargo owners, particularly the micro, small and medium enterprises cannot absorb the increase anymore, nor can they pass it on to their buyers or they will lose current and even future orders.”
It said any new rates should be “within the inflation rate at the time of adjustment” and that they should be based on consultation among all stakeholders.
Philexport also opposed the ACOP resolution, which they described as “against due process, in addition to the fact that they are unjustified and unlawful, since the existing CMO has not been repealed yet and is therefore still enforced,” Philexport said.–– Roumina M. Pablo
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