DELAYS in the signing of a Joint Administrative Order (JAO) that would tighten oversight of shipping lines, container yards and other logistics providers are prolonging high costs for businesses and consumers, the Philippine Chamber of Commerce and Industry (PCCI) told the government.
PCCI President Ferdinand Ferrer said the proposed order is needed to address what the business group described as excessive and non-transparent logistics charges that have raised the cost of importing goods and weakened the competitiveness of Philippine enterprises.
‘The JAO is a long-overdue solution to the excessive and non-transparent fees that have burdened our industries for years,’ Ferrer said in a statement on Monday.
He called on the Department of Finance, Department of Transportation, Department of Trade and Industry, Bureau of Customs (BOC) and other concerned agencies to complete their review and sign the order.
‘Every day of delay prolongs the burden on businesses and consumers,’ Ferrer added.
The BOC is leading the effort to establish an interagency framework for regulating international shipping lines, container yards and other logistics service providers.
The draft JAO has completed public consultation and is undergoing final review by the government agencies involved.
Under the proposed rules, shipping lines and other covered entities would be required to report all applicable charges to the BOC. The agency would also standardize the names of logistics fees and oversee allowable charges and fee limits under the framework.
The order would require container deposits to be refunded within 15 days after containers are returned and prohibit shipping lines from withholding cargo over unpaid charges from separate transactions.
It would also use a 75-percent yard utilization threshold, pending the establishment of a permanent benchmark, to trigger measures aimed at easing congestion and improving port efficiency.
For his part, PCCI Vice President for Industry Bryan Ang said the proliferation of ancillary shipping charges has significantly increased import costs over the years.
Some importers, he said, have reported logistics expenses increasing from around P30,000 to more than P100,000 per container.
‘These additional costs are ultimately passed on to Filipino consumers through higher prices. The JAO is a critical step toward ensuring that logistics charges remain fair, transparent, and justifiable while strengthening the competitiveness of Philippine trade,’ Ang said.
The business group said the proposed rules would also provide greater visibility over the charges imposed throughout the logistics chain, which it said would help businesses better anticipate and manage import costs.
The draft JAO builds on earlier proposals to strengthen government oversight of international shipping practices and is being advanced by the BOC.
The government is seeking to issue the order before cargo volumes rise during the seasonal peak later this year.