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The digital system that will harmonize the accreditation process for sea and air freight forwarders is 90% complete
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Data migration and reports alignment are all that’s left to accomplish
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The creation of the Harmonized Online Freight Forwarding Accreditation is part of the proposed joint memo circular that aims to develop and implement a unified system for accreditation of freight forwarders
The digital system that will harmonize the accreditation process for sea and air freight forwarders is 90% complete, according to Trade and Industry undersecretary Mary Jean Pacheco.
Data migration and reports alignment are all that’s left to accomplish, Pacheco said in a presentation at the recent 7th Logistics Summit hosted by the United Portusers Confederation of the Philippines, Inc. and the Procurement and Supply Institute of Asia.
The creation of the Harmonized Online Freight Forwarding Accreditation (HOFFA) is part of the proposed joint memorandum circular (JMC) that aims to develop and implement a unified system for the accreditation of air and sea freight forwarders.
Pacheco said “the system’s there” just waiting for the written order.
READ: Unified system for freight forwarder accreditation in its final stage
The proposed JMC was subjected to public consultation in 2023 following the signing in December 2022 of a memorandum of agreement between the Department of Trade and Industry (DTI) and the Department of Transportation (DOTr) to harmonize sea and air freight accreditation.
In 2021, the Logistics Services Philippines Project Streamlining was carried out by DTI to identify regulatory constraints in the freight forwarding sector. Among the key findings are the separate and redundant accreditation requirements and processes for sea and air freight forwarders by DTI’s Fair Trade Enforcement Bureau (FTEB) and the Civil Aeronautics Board (CAB) of DOTr.
Sea freight forwarders currently get accredited with FTEB while air freight forwarders are accredited by CAB.
The proposed JMC will apply to freight forwarders engaged in the following category:
- Domestic airfreight forwarder
- International airfreight forwarder
- Domestic sea freight forwarder
- International sea freight forwarder
- Non-vessel operating common carrier (NVOCC)
- Cargo consolidator, and
- Breakbulk agent
The JMC aims to streamline the accreditation of sea and air freight forwarders by creating a unified application form, streamline of processes, and the establishment of HOFFA.
A technical working group will also be created to ensure the efficient and effective implementation of the JMC.
Under the draft JMC, all air and sea freight forwarders should, prior to operation or upon renewal, secure a Certificate of Authority (CA) through the single system, and apply for the renewal before or within the period prescribed.
A unified application form will be used in applying for certification by any person desiring to operate as a sea and/or air freight forwarder.
Documentary requirements for the issuance of freight forwarder accreditation will be reduced and posted in the single system in accordance with the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.
All applications and documentary requirements should be reviewed, evaluated and validated within three days, provided that all requirements are complete based on the pertinent regulations of the DTI, DOTr, or CAB, as the case may be.
The CA will be valid for a period of five years unless suspended, cancelled or revoked whether by FTEB or CAB.
The amount of paid-up capital, partner’s contribution, or proprietor’s equity will be based on the existing guidelines of DTI and CAB.
The payment of fees will be made possible online after an agreement with digital payment providers is made.
The draft JMC notes that the exclusive jurisdiction over airfreight forwarders still rests upon the CAB, and the exclusive jurisdiction over sea freight forwarders and NVOCCs will be delegated to DTI.
If a stakeholder holds both airfreight and sea freight forwarding or NVOCC permits, CAB and DTI will have their separate assessment and evaluation through the single digital system and will still exercise their respective jurisdiction over such stakeholders.
Once approved, DTI and CAB should issue their respective guidelines, rules and regulations implementing the JMC within 30 days after its effectivity.
In 2021, DTI conducted the Logistics Services Philippines Project Streamlining to identify regulatory constraints in the freight forwarding sector. Among the key findings are the separate and redundant accreditation requirements and processes for sea and air freight forwarders.
Earlier, CAB executive director Carmelo Arcilla said through the unified accreditation system, freight forwarders engaged in both air and sea freight operations would not have to go to two different offices as there will be a single application form and single set of requirements, steps, and fees for accreditation.
Aside from the proposed JMC, DTI is also proposing new rules on sea freight forwarding. – Roumina Pablo
