SEIPI – ASLM5th GENERAL MEMBERSHIP

MEETINGCY2013

Bellevue Hotel, Alabang

July 31, 2013

1:00PM – 5:00PM

The Court of Appeals voided the permit granted to Fedex in 2011 by Civil Aeronatics Board (CAB) to operate in the Phils. Thus, Fedex forged a partnership w/ AAI w/c is a Filipino-owned company and a member of SEIPI.

News and Updates

The Customs Modernization Bill is still pending in Senate. Once approved, it will pave the way for more reforms in BOC.

Amendment of Tariff and Customs Code of the Phils to adhere to the revised Kyoto Convention;

- aimed at the simplification and harmonization of customs processes worldwide Regulations for more safeguards against smuggling / fraud; Policy changes/enhancements to make import trade transactions faster, efficient and transparent

Open Forum

CY / CFS Charges Barrier Seal Cost Issue (ECTS) BOC Overtime Charging at CEZ, Rosario

CMO 24 -2001

PROPOSED RATE

% Increase

A. Transfer Fee Per Bill of Lading- 500.00

B. Storage

Per Revenue Ton (RT) counted from date of stripping

20.00 45.00 125%

C, Arrastre & Wharfage Per Revenue Ton157.00 284.00 81%

D. Documentation Per Bill of Lading500.00 1,200.00 140%

E.Stripping & Cargo out Handling Per Revenue Ton

500.00 270.12 -46%

F. OLRS Per Bill of Lading100.00 220.00 120%

G. Insurance

Per Bill of Lading / 1/8 of Cargo value whichever is higher

500.00 Min 1,000.00 Min 100%

H.

Heavy Lift / Oversize over 3 Revenue Ton Single-unit Cargo Per Revenue Ton

1,200.00 2,600.00 117%

I. Dangerous Cargo100% Surcharge on Storage, Stripping and Handling

- -

J. VAT Per BIR Regulation- -

1. OD-CY/CFS Charges

Sample Computation: CMO 24 -2001

PROPOSED RATE

% Increase

Transfer Fee 500.00

Storage 80.00 180.00 125%

Arrastre & Wharfage 314.00 568.00 81%

Documentation 500.00 1,200.00 140%

Stripping & Cargo out Handling 1,000.00 540.24 -46%

OLRS 200.00 440.00 120%

Insurance 500.00 1,000.00 100%

Heavy Lift / Oversize over 3 Revenue Ton Single-unit Cargo

2,400.00 5,200.00 117%

Dangerous Cargo

VAT

4,994.00 9,628.24 93%

Revenue ton (metric ton) 2 2

Bill of Lading 1 1

Storage, Days 2 2

Port Users Confederation (PUC) submitted a position paper last July 7 to Atty. Domingo, BOC’s Director for Legal Service, objecting the drafted CMO allowing OD-CY/CFS operators to increase the port charges

Salient points: In 2010, Philippines has the highest cost for both import and export activities among ASEAN countries (ranked 819th in Import and 816th in Export); PPA has recently allowed a 15% increase only on cargo- related charges. However, the proposed increase of CFS operators per CBM is more than 200%; Several complaints had been filed against CY/CFS operators for imposing charges beyond those allowed in CMO 24-2001. None of the complaints had been acted upon by BOC.

OD-CY/CFS – Off-Dock Container Yard / Container Freight Station

OD-CY/CFS Charges A public hearing was conducted at PPA last July 4.

2. Barrier Seal (ECTS)

2008 – European Commission and the Republic of the Philippines entered into a 4-year cooperation initiative dubbed as “Trade-related Technical Assistance or TRTA Project”. Under

Component 3 of the TRTA is the “Enhanced Customs Transit System in all ports of the Philippines by the end of 2010”.

2010 –Issuance of Regulations and the implementation of ECTS through

- Customs Administrative Order 4-2010 signed by the Secretary of Finance- Customs Memorandum Order 24-2010 signed by the Commissioner of Customs

ECTS Implementation

July 2011 – The PUC recommended the fees which became the basis of the proposed CAO on fees

submitted to DOF:

- Delivery to warehouse within one (1) kilometer radius - P 750.00 or

lower

- Delivery to Metro Manila and nearby towns (Ex. in Cavite and in Bulacan) P 1,500.00

- Delivery to Outports (Subic, Clark, etc.)

P 2,250.00

ECTS Implementation

July 2011 – The PUC further proposed remedial steps to lessen their cost: - All containers tagged for GPS must

already be provided by a duly processed and accomplished Boat-note. (This will eradicate the petty graft and delay.)

- The mandated carrier’s Bond should now be scrapped, in lieu of the use of GPS.- The current use of the telegram (with cost

of Php 90.00) shall likewise be scrapped, in lieu of the use of GPS.

- The current under-guarding fee (per CMO 2-2004) shall likewise be discontinued, in

lieu of the use of GPS.

ECTS Implementation

COMPARATIVE MATRIX ON THE CURRENT and PROPOSED COST OF TRANSSHIPMENT

PARTICULARSC O S T

1-DAY 2-DAY 3-DAY (Davao) GPS

1. BC Form 199 (Transshipment Permit) 40.00 40.00 40.00 40.00

2. Import Processing Fee

a. Warehousing 250.00 250.00 250.00 250.00

3. Documentary Stamps

a. Warehousing Entry 265.00 265.00 265.00 265.00

b. Local Transshipment 115.00 115.00 115.00 115.00

c. Transit Cargo Manifest 115.00 115.00 115.00 115.00

d. Carriers Bond 115.00 115.00 115.00 115.00

e. Boatnote 115.00 115.00 115.00 115.00

4. Underguarding Fee (per 2-2004) 1,941.33 3,882.66 5,824.00 -

5. Telegram 90.00 90.00 90.00 -

6. Container Security Fee ( $5 per TEU or Php225 at 45/$1)

225.00 225.00 225.00 225.00

7. Monitoring & Sealing Fee by SGS 00.00 00.00 00.00 00.00

T O T A L 3,271.33 5,212.66 7,154.00 3,490.00

DIFFERENCE (218.67) 1,722.66 3,664.00 -

A position paper was submitted to BOC Coll. John Simon by Atty. Norma Cajulis dated May 30, 2013 on behalf of CEZ locators. From P564/container (ave.) paid for Escort and Container Security fees, the seal that replaced these costs P2,500/container.

Recommendation: SEIPI to also submit its own position paper.