Category: Business Mirror

Farmers and fisherfolk may soon get timely technical assistance in the use of technologies and climate-smart farming practices with the inclusion of two bills in the priority list of the Legislative-Executive Development Advisory Council (LEDAC), according to the chairman of the Senate agriculture committee.

Senator Francis N. Pangilinan said his twin measures-the Agriculture and Fisheries Extension Act and the Agricultural Cooperatives Act-were shortlisted at last week’s Ledac meeting among the measures agreed on by the Executive and Legislative branches as deserving of passage in the Second Regular Session of Congress.

Panglinan, who has been pushing for the passage of these two bills since his return to the Senate last year, welcomed their inclusion in the Marcos administration’s priority list.

He underscored the urgent need to provide farmers and fisherfolk with stronger institutional support, better access to technology and knowledge, and more effective cooperative structures.

‘We need to get these bills across the finish line. It’s not enough that the promised support for farmers and fishers remain on paper. They deserve concrete systems and services to ensure such assistance reaches their farms and their fishing grounds,’ Pangilinan said, speaking partly in Filipino.

The proposed Senate Bill (SB) 1991, or the Agricultural and Fisheries Extension Services Act, seeks to establish a stronger, more responsive, and better-coordinated national extension system that will provide farmers and fisherfolk with timely technical assistance, research-based technologies, climate-smart farming practices, and continuous capacity-building.

SB 1990, or the Agricultural Cooperatives Act, will reestablish the Bureau of Agriculture Cooperatives. It aims to strengthen farmers’ and fisherfolk’s capacity to organize themselves and compete effectively.

Once capacitated, agricultural cooperatives will have improved access to financing, markets, equipment, and value-adding opportunities.

‘As it is, our farmers and fishers are not just reeling from soaring production costs; they have also been left behind in terms of new technologies, new farming practices, and new knowledge,’ said Pangilinan.

‘The farmers and fishers of a country that is rich in terms of soil and sea should not be left behind. They hold the dreams of their sector, but public servants must provide the support and opportunities to fulfill these.’

The two measures, Pangilinan also said, are closely linked to the country’s long-term food security agenda because a stronger agriculture and fisheries sector will bring down the prices of basic goods and commodities, increasing the buying power of ordinary Filipinos.

He expressed readiness to work with his colleagues in the Senate, the House of Representatives, and the Executive to ensure the timely passage of the two measures.

CEBU CITY-The Office of the Ombudsman is set to scrutinize some P60 billion worth of flood-control projects implemented in Cebu over the past six years, as Ombudsman Jesus Crispin Remulla raised questions over whether the projects were properly designed and executed or were tainted by corruption.

Remulla said the amount was based on the office’s initial accounting of flood-control spending in Cebu, with a significant portion going to the province’s Seventh District and about 25 percent to a single contractor.

‘That should be a lot of money to control the flooding,’ Remulla said during a news conference here.

However, he noted that flooding remained a recurring problem in the province, particularly after recent rains, prompting the office to examine whether the projects were technically deficient or whether corruption was involved.

‘We have to look at what’s happening. Is it the design? Is it the execution? Or is it just corruption?’ Remulla said.

He said the investigation would cover flood-control projects in the province, as well as Cebu City, including projects affecting several local governments.

The Ombudsman for the Visayas is expected to file cases soon, Remulla said, although he stressed that the agency would first have to establish sufficient evidence.

‘We always go by the evidence,’ he said, adding that the office could not simply file cases or order people jailed without strong evidence that could withstand scrutiny in court.

Ghost projects, substandard work

REMULLA said the Ombudsman would also verify reports of alleged ghost flood-control projects, including one in barangay Singsing in Balamban that was being disputed by a former congressman.

The agency will use digital tools and project coordinates to determine whether projects actually exist at their reported locations and whether the structures comply with their specifications.

He said investigators would also examine the possibility of projects being counted more than once or locations being altered in project records.

‘We will look at all possible violations,’ Remulla said.

‘So it’s possible that it’s a ghost. But we will have to check and verify and validate,’ he added.

The investigation will also look into whether flood-control structures were built according to contract specifications.

Remulla cited sheet piling as an example, saying the national specification calls for 14-meter sheet piles in certain flood-control structures. He said investigators would determine whether the specified depth was appropriate and whether contractors actually complied with it.

He recalled findings from investigations in Bulacan where 14-meter specifications were allegedly reduced to four meters, leaving a substantial portion of the required structure unbuilt.

For Cebu, he said investigators would similarly examine whether projects were built according to their contracts rather than relying solely on what could be seen on the surface.

Contractors, bidding under scrutiny

ASIDE from project implementation, the Ombudsman will examine the contractors involved in the projects, possible rigged bidding and the alleged practice of awarding contracts without competitive bidding.

Remulla said lifestyle checks would also be conducted on district engineers and other Department of Public Works and Highways (DPWH) engineers, although he cautioned against focusing exclusively on government personnel.

Contractors would be examined alongside government officials as part of the investigation, he said.

The Ombudsman will also look into the ‘no-bidding phenomenon’ and possible rigging of procurement processes.

Remulla acknowledged that investigating flood-control projects is complicated because of the volume and technical nature of government contracts.

He said artificial intelligence could assist investigators in reviewing documents, but could not completely replace human examination of contracts and evidence.

‘Proving our cases is always possible. But it’s not as easy as it seems. It’s easy to conclude. But to prove is harder,’ Remulla said.

20 more lawyers

TO strengthen the agency’s investigative and prosecutorial capacity in the region, Remulla said he had committed to add 20 lawyers to the Ombudsman Visayas office.

The lawyers would be involved in prosecution, fact-finding and preliminary investigations.

He said strengthening the regional office was necessary given the volume of cases and the need to build evidence-based cases before filing them in court.

Remulla emphasized that the Ombudsman should not be used to ‘weaponize’ investigations against individuals.

‘What we want to happen is that cases are filed because there is evidence against those who we go up against,’ he said.

Greater transparency

REMULLA also reiterated his push for legislation requiring greater transparency in government transactions from the barangay level up to national agencies.

He said government bidding processes should be digitally recorded and made accessible to the public, including through digital platforms that would allow citizens to monitor government contracts and transactions.

The Ombudsman said he had already discussed the proposed transparency measures with the Speaker and the Senate President.

He said the proposed reforms would cover government hiring, salaries, contracts, permits and business and licensing transactions at the local-government level.

Remulla argued that existing digital technology, including mobile phones, closed-circuit television cameras, artificial intelligence and the internet, could make greater transparency possible without requiring prohibitively expensive systems.

He said transparency should not stop at national government agencies but should extend to local governments, where corruption could also begin.

Conflict of interest

BEYOND implementation of flood control projects, Remulla said the Ombudsman would investigate other government programs and alleged schemes involving the misuse of public funds.

He identified conflict of interest as one of the agency’s major concerns, particularly situations where public officials and contractors have overlapping interests.

He said the Ombudsman would examine instances where politicians and contractors are closely linked, noting that public office should not become a means of serving private interests.

‘We have to start with conflict of interest. Everywhere in the country. We have to return to decency,’ Remulla said.

Remulla added the Ombudsman’s broader objective was not simply to pursue individual cases but to help restore public confidence in government and create a culture where corruption carries a greater certainty of punishment.

He said the agency expects the next three years to be focused heavily on filing, investigating and prosecuting cases involving corruption.

‘It’s not about targeting people. It’s about targeting a change in our society,’ Remulla said.

For Cebu, however, the immediate focus will be determining what happened to the billions of pesos spent on flood-control projects-and whether the spending delivered the protection it was supposed to provide.

NOMURA Global Markets Research has cut its 2026 growth forecast for the Philippines following a slowdown in the second quarter, as foreign research firms see only a gradual recovery in the second half amid weak investment and still-elevated prices.

Nomura on Sunday lowered its full-year gross domestic product (GDP) growth forecast to 3.8 percent from 4.6 percent, although it still expects economic activity to improve in the latter half of the year.

This comes as the Philippine economy grew by 2.3 percent in the second quarter, slower than the 2.8-percent expansion in the first three months of the year and the weakest quarterly growth since the first quarter of 2021.

Excluding the pandemic period, it was the slowest expansion since the fourth quarter of 2009, when GDP grew by 1.8 percent.

This brought average growth in the first half to 2.6 percent, less than half the 5.4 percent recorded in the same period last year.

‘We cut our 2026 GDP growth forecast to 3.8 percent from 4.6 percent, which still pencils in an improvement in H2. We maintain our call for two more 25-basis-point Bangko Sentral ng Pilipinas’ hikes this year,’ Nomura said.

On a seasonally adjusted basis, the economy expanded by 0.6 percent quarter-on-quarter in the second quarter, slower than the 0.9 percent growth in the first quarter.

Nomura said the further moderation indicated that the economy continued to lose momentum rather than begin to recover from the prolonged slowdown associated with the flood-control corruption controversy.

‘This suggests the impact of the war in Iran has likely exacerbated some lingering spillover effects on private sector spending from the sharp fiscal tightening and associated governance concerns, hurting domestic demand overall,’ it added.

Infra-led recovery

ANZ Research and Capital Economics likewise expect growth to improve in the coming quarters, although both see constraints to a stronger rebound.

ANZ said a recovery in public infrastructure spending beginning in the third quarter could help revive capital formation, which emerged as one of the biggest drags on second-quarter growth.

‘Steady normalization of public infrastructure spending will be key for a meaningful recovery in GDP growth in the upcoming quarters,’ ANZ Research said.

The Department of Economy, Planning, and Development (DepDev) earlier said it was banking partly on a rebound in infrastructure spending after the Department of Budget and Management began releasing mobilization funds for 2026 projects toward the end of June.

The Department of Public Works and Highways also started awarding contracts in June and July, which DepDev expects to support a pickup in public construction beginning in the third quarter and gain momentum in the succeeding months.

Capital Economics, meanwhile, expects only a modest improvement after the weak first-half performance.

‘Growth should improve a little from here, but the recovery will be very gradual. The recent falls in oil prices, if sustained, will help reduce inflation and boost the purchasing power of consumers. But the corruption scandal is unlikely to go away,’ it explained.

The research firm said President Marcos’s renewed emphasis on combating corruption in his fifth State of the Nation Address (Sona) suggests that tighter scrutiny surrounding public projects could continue to weigh on investment.

It added, however, that continued economic weakness could put pressure on the government to ease the constraints on public investment arising from its anti-corruption drive.

Capital Economics expects GDP to grow by around 3 percent this year, while ANZ forecasts a 3.9-percent expansion.

The Development Budget Coordination Committee (DBCC) in late June lowered its 2026 growth target to a range of 3.5 to 4.5 percent from 5 to 6 percent, citing weaker-than-expected economic performance following the flood-control controversy and the economic fallout from the Middle East conflict.

Growth targets for 2027 to 2030 were likewise reduced to 5 to 6 percent. The previous targets were 5.5 to 6.5 percent for 2027 and 6 to 7 percent for 2028 to 2030.

The Philippines has suspended imports of live animals and selected animal products from seven countries following confirmed outbreaks of foot-and-mouth disease (FMD).

The Department of Agriculture (DA) said the restriction covers Azerbaijan, Bahrain, Cyprus, Iraq, Israel, Kuwait and Palestine.

Under Department Circular 39 signed by Agriculture Secretary Francisco P. Tiu Laurel Jr., imports of live swine, cattle, water buffaloes and other FMD-susceptible animals from the affected areas are prohibited.

The ban also covers fresh skeletal muscle meat, casings, tallow, hooves, horns and animal semen originating from the seven countries.

An official report from the Food and Agriculture Organization of the United Nations confirmed outbreaks of the FMD virus serotype SAT1 in the affected countries.

The cases were validated through laboratory testing in coordination with the World Organization for Animal Health’s (WOAH) reference laboratory network.

‘The Philippines has worked hard to protect its livestock sector from devastating animal diseases. Acting swiftly against emerging risks is essential to safeguarding food security, protecting farmers’ livelihoods and preserving public confidence in our food supply,’ the DA chief said.

Products classified by WOAH as ‘safe commodities,’ however, may still enter the country subject to strict import requirements. These include ultra-high temperature milk and dairy products, heat-treated canned meat, protein meal, gelatin and certain processed hides and leather products.

Such products must meet prescribed veterinary certification and processing standards.

‘We are taking a science-based and precautionary approach. While we remain committed to facilitating safe trade, protecting the health of our livestock industry must always come first.’

FMD is a highly contagious disease affecting cloven-hoofed animals such as cattle, pigs, goats, sheep and buffaloes.

While it poses no public health risk and is not considered a food safety concern for humans, outbreaks can disrupt livestock production, raise production costs and inflict heavy losses on farmers.

Veterinary quarantine officers have been instructed to stop and confiscate prohibited shipments from the affected economies arriving at Philippine ports.

The Philippines was nearly brought to its knees by the devastating FMD outbreak in 1995. It reached epidemic proportions, spreading to 27 provinces and setting the highest number of recorded outbreaks in one year at 1,553.

At the peak of its outbreak in 1995, the DA noted that FMD caused an estimated P2 billion in direct losses to the hog sector. The government had to spend hundreds of millions of pesos to bankroll measures that sought to eliminate FMD in commercial and backyard hog farms.

It took six years for the Philippines to wipe out the disease and obtain FMD-free without vaccination status from WOAH.

Light Rail Manila Corp. (LRMC) is set to start the construction of the Las Piñas station of the Light Rail Transit Line 1 (LRT 1) Cavite Extension Project as early as next year.

The Department of Transportation (DOTr) said the Villar Group of Companies has agreed to the government’s three ‘non-negotiable conditions’ for the donation of two mortgaged lots needed for the site. The concession removes what officials described as the last major obstacle to building the station, the conspicuous gap in the first phase of the Cavite Extension.

‘This development is good for DOTr, LRMC, LRTA and the Villar Group, but best for the commuting public,’ Transportation Secretary Giovanni said, referring to state-run Light Rail Transit Authority (LRTA). ‘Itong pagkakasundo natin, talagang commuters ang pangunahing makikinabang, at ‘yun naman talaga dapat ang priority natin.’

Under the agreement, the property firm will grant the government an unconditional permit to enter, execute a waiver of subrogation in favor of the state, and cancel the mortgage on the parcels to be donated.

The terms clear the path for the signing of the Memorandum of Agreement, the Right-of-Way Acquisition Agreement, and the Deed of Donation within the month.

‘I see that there’s this urgency from the government to provide relief for passengers. And on the part of the Villars there’s a good sign that they’re talking to the grantors in good faith,’ LRMC President Enrico Benipayo said. ‘With this milestone, I think a major hurdle has been finished.’

Of the six parcels of land to be turned over by the Villar Group, two carry mortgage encumbrances that had stalled their transfer to the government. The cancellation of the mortgages will be processed within six months, and that substitute properties have already been identified as collateral replacement to free up the lots for donation.

Right-of-way complications over the privately held land forced the government to open the extension’s first segment without the Las Piñas station, requiring passengers in the area to use adjacent stops.

‘Nagpapasalamat ang DOTr sa Villar Group of Companies dahil sa inyong cooperation para mapabilis natin itong proseso,’ Lopez noted. ‘Ang laging bilin sa atin ng Pangulo, dapat mapakinabangan na ng commuters ‘yung mga transport projects natin sa lalong madaling panahon at resolbahin na rin ang mga dapat ayusin.’

Last June, President Ferdinand R. Marcos Jr. ordered the DOTr to immediately resolve the issues delaying the Cavite segment of the project.

Marcos instructed DOTr Secretary Giovanni Z. Lopez to coordinate closely with concerned agencies and stakeholders to remove bottlenecks, settle pending issues, and ensure the uninterrupted implementation of the long-delayed project.

The LRT-1 Cavite Extension, with a total cost of P64.915 billion, is funded through a hybrid scheme: P17.80 billion in official development assistance from the Japan International Cooperation Agency (JICA), P39.57 billion from private operator LRMC, and P7.55 billion from the national government.

ANEW set of trustees with a new leader took over the Philippine National Volleyball Federation (PNVF) on Monday with businessman Frank Lao getting elected as president.

Philippine Olympic Committee (POC) president Abraham Tolentino, entrusted by the International Volleyball Federation (FIVB) to hold a special election of the suspended federation, thanked 20 of the 25 officially registered clubs and organizations which supported the exercise.

‘We are incredibly glad to announce the new working board of trustees committed to unify Philippine volleyball and prioritize the formation of strong national teams,’ said Tolentino after the proceedings at the Solaire Theater Southlinks Board Room 2M.

‘This is a ‘committed team’ and I believe they could sustain the progress of volleyball that started when the PNVF was established in 2021,’ he added.

Also elected were Atty. Don Rico Capunan as vice-president, Rommel Ng as treasurer and Atty. Wharton Chan as auditor while named to the board of trustees were former PNVF president Ramon ‘Tats’ Suzara, also the Asian Volleyball Confederation president, as well as Rustico Camangian, Jonas Cabochan, Carmela Gamboa, Sienna Olaso and Francis Chad Salimbangon.

Don Caringal returned to his old post as secretary-general appointed by Lao.

Tolentino is hoping the FIVB will soon reinstate the association after getting suspended last May.

The POC thus relinquished its role as ‘caretaker’ of the federation, which was mandated by the volleyball’s world governing body, FIVB, which suspended the previous PNVF elected officers on November 21 last year primarily on poor governance.

The Alas Pilipinas Men and Women teams that were formed under POC supervision for the Aich-Nagoya 20thAsian Games during the suspension, Tolentino said, will remain.

FIVB appointed Ad Hoc Committee chair Hila Asanuma of Palau and FIVB External Legal Consultant Atty. Alexa Monica Dabao witnessed and certified the exercise.

AS Filipino families continue to grapple with high electricity costs, Senate President Sherwin Gatchalian said making power more affordable for consumers must go hand in hand with ensuring universal access to electricity.

Marking National Electrification Awareness Month this August, Gatchalian urged the National Electrification Administration (NEA) to complete the government’s rural electrification program by 2028, emphasizing that millions of Filipinos remain without electricity. He noted that, as of June last year, nearly 3 million Filipino households still had no access to electricity.

The NEA has been allotted P13.16 billion this year, including P9.342 billion for the National Rural Electrification Program and P2.6 billion in loans to electric cooperatives.

‘Hindi katanggap-tanggap na mayroon pa tayong mga kababayan na wala pang kuryente sa panahon ng digital age. Binigyan natin ng sapat na suporta sa budget ang programang ito sa loob ng maraming taon kaya’t dapat lang na magkaroon ng kuryente ang lahat ng Pilipino sa lalong madaling panahon,’ Gatchalian said.

‘Reliable electricity for every Filipino household is crucial to improving lives and lowering long-term power costs by expanding access and strengthening the distribution network. ‘

THE national government paid P1.227 trillion to settle some of its debt in the first semester, more than half higher than a year earlier, as domestic debt amortization doubled.

Total debt service from January to June jumped by 59.70 percent to P1.227 trillion from P768.109 billion in the same period last year, according to data from the Bureau of the Treasury.

The increase in the debt service bill reflected the higher amortization, or the repayment of loan principal over time, which outpaced interest payments.

First-half amortization surged by 110.31 percent year-on-year to P743.002 billion from P353.288 billion.

Most of the amortization went to domestic lenders at P630.907 billion. The amount is 270.13 percent higher than the P170.457 billion the government paid for domestic amortization during the same six-month period.

Amortization shelled out to foreign financiers declined to P112.095 billion, down by 38.69 percent from P182.831 billion a year ago.

Meanwhile, interest payments, or payments determined by the interest rate of an account, rose by 16.60 percent to P483.690 billion in the first semester from P414.821 billion in the same period last year.

Bulk of the interest payments, or P360.719 billion went to local debt. Domestic interest payments grew by 20.31 percent compared to the previous year’s level of P299.827 billion.

The government spent P242.164 billion for interest payments incurred from fixed-rate Treasury bonds, P87.502 billion for retail Treasury bonds and P25.150 billion for Treasury bills.

The remaining, or P122.971 billion, of interest payments went to foreign obligations. First-half external interest payments increased by 6.94 percent from P114.994 billion a year ago.

For the month of June, the government’s debt payments grew by 18.54 percent year-on-year to P77.219 billion from P65.141 billion.

Interest payments accounted for the bulk of the debt service bill at P62.431 billion, up by 8.73 percent from last year’s P57.420 billion. Amortization, meanwhile, nearly doubled to P14.788 billion from P7.721 billion a year ago.

This comes against the backdrop of the national government’s debt-to-GDP (gross domestic product) ratio rising to a 22-year-high at 66 percent in the second quarter, after the economy grew disappointingly and the debt stock continued to climb. (See: https://businessmirror.com.ph/2026/08/08/debt-to-gdp-ratio-climbs-to-66-in-q2-a-22-year-high/).

The ratio was the highest since 2004, when it stood at 71.6 percent, as the country’s fiscal position has become ‘more constrained,’ said Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion.

‘The economy, which serves as the denominator of the ratio, is expanding more slowly than anticipated, making it more difficult to stabilize debt metrics,’ Asuncion said.

As of end-June, the national government’s outstanding debt was at an all-time high of P19.065 trillion, while GDP expanded by 2.3 percent in the second quarter.

This year, the government has programmed P2.005 trillion in debt service payments, consisting of P1.005 trillion in amortization and P950 billion in interest payments.

AS flooding brought about by the inclement weather continues to grip low-lying areas in Metro Manila and other areas, Luzon will continue to experience heavy rainfall in the next four days, threatening to cause more flooding, trigger flashfloods and landslides, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) reported.

Six people have been confirmed dead as of August 9 due to the combined effects of Tropical Cyclones Luis, Maymay and the enhanced southwest monsoon.

The National Disaster Risk Reduction and Management Council (NDRRMC) said that two of the fatalities were reported in La Trinidad, Benguet due to a landslide, two due to a rockslide in Rodriguez, Rizal, and two in Luna, La Union – one due to drowning and another to electrocution.

The inclement weather also injured seven people, including five in Baguio City due to a landslide, one in Kapangan, Benguet due to a vehicular accident, and one La Trinidad, Benguet due to a landslide.

Pagasa said that even though Maymay and Luis are no longer affecting the country’s weather system, the prevailing southwest monsoon will continue to induce rain in Luzon.

In its severe weather outlook issued at 6 a.m. on August 9, the weather bureau said Benguet will continue to experience 100 to 200 mm of rain until Monday.

Meanwhile, 100 to 200 mm of rain is expected to pour in Ilocos Sur, La Union, Zambales, Bataan, Metro Manila, Rizal, Cavite, Batangas, and Occidental Mindoro until August 10, and La Union, Benguet, Zambales, Bataan and Occidental Mindoro will have 100 to 200 mm of rain until Tuesday.

Zambales, Bataan and Occidental Mindoro will also experience heavy rains from Wednesday to Thursday.

Under these rainfall conditions, widespread incidents of severe flooding and landslides are expected, the weather bureau said.

Other areas in Luzon affected by the southwest monsoon or habagat will experience possible localized flooding mainly in areas that are urbanized, low-lying, or near rivers.

Landslides are also possible in highly susceptible areas, the weather bureau said.

So far, the NDRRMC said the inclement weather has affected nearly all of Luzon, affecting 110,000 families or 382,000 people.

According to the NDRRMC, the inclement weather has caused floodings that compelled the evacuation of over 2,200 families who are now being provided care inside 86 different evacuation centers.

A total of 148 houses were also damaged by flooding, which submerged communities, paralyzed traffic, and damaged roads and other public infrastructure.

The NDRRMC said the government has provided P13.21 worth of assistance to the affected families through the Department of Social Welfare and Development (DSWD), concerned local government units and other partners.

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.