PCCI, PhilExport join growing protest against online container booking system

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ID-100378948Opposition to the Terminal Appointment Booking System (TABS) is mounting with a coalition of customs brokers threatening to stage a one-week protest action to stop implementation of the system.

Two other groups—the Philippine Chamber of Commerce and Industry (PCCI) and Philippine Exporters Confederation, Inc. (Philexport)—have also assailed TABS, particularly its system of fees and penalties, saying port operators are duty bound to provide quality service and should not make customers pay for any improvements to their operations.

The Coalition of Customs Brokers Association, Port Truckers, Stakeholders Kontra TABS said it plans to hold a one-week brokers’ and port truckers’ holiday starting March 7 in protest of TABS. The coalition lists as supporters the Chamber of Customs Brokers, Inc; Professional Customs Brokers Association of the Philippines, Inc. (PCBAPI); and Aduana Business Club.

“While we appreciate the objective of TABS to facilitate the smooth flow of traffic and goods in and around the ports, we strongly oppose the imposition of these TABS fees primarily because the TABS is an inherent part of the port operators’ mandate that is supposed to enhance their services,” said a joint PCCI and PhilExport position paper dated February 22 and submitted to Cabinet Secretary Jose Rene Almendras.

TABS is an electronic platform for booking containers at Manila South Harbor and Manila International Container Terminal, specifically developed to minimize road traffic and prevent container build-ups. The Manila port operators said TABS will ensure a more organized flow of containerized cargoes in and out of the terminals while providing real-time information on container status. (See related story ATI: South Harbor’s truck handling rate rose 20% with online booking.)

The system, which has the blessings of government, has been in effect since October 2015. But it is only on March 14 that TABS will be strictly and fully implemented, including its points payment feature. Under this feature, points with equivalent monetary value will be used to book slots. One point is equivalent to P1; the number of points needed will depend on the zone to be booked. Transaction fees are P300 and P1,000 in the medium- and high-demand zones, respectively.

An advance deposit/maintaining balance of P6,500 per company is needed to be able to transact using the TABS.

Penalty for late arrivals (trucks that come two hours after their booked slot) is P1,625. No shows, or trucks that arrive three hours or more after their appointment, will be fined P3,251.

PCCI and PhilExport said their members—exporters and importers who are the ultimate users of TABS even as customs brokers, freight forwarders and truckers handle the actual booking—have called their attention to the issue of high fees to be applied under the truck appointment system.

But PCCI and PhilExport countered “there are realities and challenges beyond business control that have to be considered in the context of the fees and fines involved.”

Higher costs

Among other factors, the groups noted that “because global business is very slow and projected to be bearish in the next two years, exports have been declining,” and that “any upward adjustments in costs will hurt business, especially if these are our micro, small and medium enterprises that do not have healthy cash flows to set aside P6,500 to use the system.”

Moreover, despite the supposed facilitation objectives under TABS, customs brokers and truckers using the system “have complained of 24-hour waiting time for the trucks to enter the ports,” the groups added.

They explained: “One possible reason for the long queue to the port is the rush to avoid the truck ban hours and penalties, such that there is now overlapping of truck schedules depending on which truck arrives first. In any case, this situation gives rise to the problem of delays in getting in the port and being penalized.”

Moreover, the groups pointed out that “There are already a number of duplicating fees being paid at the ports and we see these additional fees as another profit center at the expense of MSMEs that are now in a survival mode to keep jobs and livelihood projects.

PCCI and PhilExport said the no-show fee for equipment rental is “redundant, considering the equipment is already being paid for from other port charges that have recently been raised despite opposition by stakeholders.”

Exporters and importers are also “engaged in just-in time manufacturing where the processes have short lead times mainly to save on costs,” the groups said. “These short lead times cannot accommodate traffic jams and other aberrations which are still present despite TABS. As a result, production and shipment of goods are consequently delayed.”

Furthermore, the Bureau of Customs has “yet to complete its computerization system and processing with the Bureau still faces some bottlenecks.”

PCCI and PhilExport, represented by their respective presidents George Barcelon and Sergio Ortiz-Luis in the joint position paper, said they would appreciate it if Almendras would “consider our position to help keep the industry afloat and arrest our declining competitiveness.”

Both groups said they welcome a meeting with the Cabinet secretary “for a more detailed discussion as needed.”

Customs brokers’ beef against TABS

In a separate letter to Secretary Almendras dated February 17, PCBAPI asked government to “stop and withdraw the implementation of TABS, (and its) illegal fees and penalties”, alleging the program may cause another round of port congestion as it hinders the flow of trade and slows down cargo processing. It also imposes illegal and arbitrary charges and penalties and ultimately increases costs, it said.

The Philippine Society of Filipino Customs Brokers, Inc. had also earlier asked government to discontinue the implementation of TABS. Organization members complained of difficulty in booking which, in turn, has led to delivery delays; additional costs and expenses for storage and demurrage due to cargo’s prolonged stay at the port; and non-transparency in the number of slots available for booking.

PCBAPI, in its letter to Almendras, said while it supports government programs that modernize the country’s ports so they can accommodate international trade and boost the economy, TABS runs “contrary to free trade” and “constrains the flow of trade”.

The group said delays in the delivery of imported goods caused by TABS lead to added expenditures which, in turn, will mean higher prices of goods. TABS will additionally jack up operating costs for importers and exporters starting March 14 when the collection of fees and penalties start, PCBAPI said.

Collecting additional fees, the group complained, is “illegal and contrary to the Tariff and Customs Code of the Philippines”, noting that the Code already allows delivery of shipments after payment of duties and taxes.

Port operators, the group said, have the responsibility to release shipments “free of charge” since importers and exporters have already paid port charges such as arrastre, storage, shipping, stripping, etc before shipments are turned over for delivery to cargo service providers.

Beyond this, “operators (should) modernize their equipment and facilities to adapt to (growing) trade volume,” PCBAPI said.

TABS also contradicts the principle of just-in-time shipments, as it now makes the one-day release of goods impossible, claimed PCBAPI.

The group is seeking an “open ports delivery” policy and to allow trucks on the roads 24/7.

PCBAPI also urged government sanctions against the Philippine Ports Authority “for not acting on the ports problem as early as possible” and on “port operators that neglect the responsibilities to provide better ports.” – Roumina Pablo