The Maritime Industry Authority (MARINA) is looking to revise Memorandum Circular No. 186, its ruling on the accreditation of maritime enterprises, to encompass Philippine seafreight forwarders.
Under a draft circular dated November 12, the agency will not only accredit entities engaged in ship agency, ship husbanding and ship chandling but will also do so for those in sea freight forwarding, ship management, multimodal transport operation, and other activities consisting of transacting or doing business in the Philippines as agents for one or more shipping line or company.
The task of accrediting seafreight forwarders previously rested with the Philippine Shippers’ Bureau (PSB), an agency of the Department of Trade and Industry (DTI), by virtue of Executive Order 514 signed by former President Corazon Aquino in 1992.
With the recent rationalization at DTI, however, PSB was dissolved and the task of accrediting forwarders was transferred to the newly formed Fair Trade Enforcement Bureau (FTEB) under the Consumer Protection Group, still with the DTI. FTEB’s main function is to oversee overall implementation of trade and consumer protection laws, as well as handling of import regulation, sales promotion, product standards monitoring, business licensing, and enforcement.
Sea freight forwarders have long sought the transfer of accreditation from DTI to MARINA. This, they said, will consolidate accreditation and regulation of all freight forwarding agencies under one department, the Department of the Transportation and Communications (DOTC). Airfreight forwarders are currently under the Civil Aeronautics Board, an agency of the DOTC. MARINA is also a DOTC agency.
The seafreight forwarders pointed out that MARINA has general jurisdiction and control over all persons, corporations, firms, or entities in the Philippine maritime industry under Presidential Decree 474 or the Maritime Industry Decree of 1974.
Moreover, under Executive Order No. 125 of 1987, as amended, they said, MARINA is tasked to accredit marine surveyors and maritime enterprises engaged in shipbuilding, ship repair, ship breaking, domestic and overseas shipping, and ship management and agency.
In an email to PortCalls, MARINA administrator Dr. Maximo Mejia, Jr. said, “The issue of accreditation of freight forwarders is an ongoing discussion with DTI.”
He noted that “DTI sits in the MARINA Board so they will be closely involved in any decision relating to revision of MC 186.”
More changes under draft circular
Under the draft circular, MARINA will impose varying capitalization requirements depending on the category of the maritime entity and corporate registry being accredited. This compares with the current one-size-fits-all capitalization requirement of P500,000 under MC 186 (series of 2003).
The processing fee for issuing and renewing applications will also be increased.
Accreditation will be valid for three years, as is the case under current rules.
A scale of penalties will be imposed for companies with delayed renewals.
The revised circular also requires staff to undergo training and for key operating officers to have minimum experience before accreditation.
MARINA has started consultative meetings on the draft circular with stakeholders. – Roumina Pablo
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