The Association of International Shipping Lines (AISL) whose members include carriers calling Philippine ports, had pointed out that the Bureau of Customs (BOC) could not involve itself in commercial matters such as the carriers’ rates and charges.
The AISL raised this issue following the BOC issued a draft Customs Administrative Order (CAO) that will require shipping lines, including shipping agents and general agents, to refund container deposits within 15 days following receipt of empty containers.
The drafted rules on charges imposed by foreign shipping lines are intended to determine the cost of transport, loading, unloading, and handling charges levied by carriers.
An electronic system will be developed to track and trace all movement of containers in the country, whether laden or empty.
The CAO will implement Section 204 (Promulgation of Rules and Regulations) in relation to Section 1226 (Supervision and Regulation of Third Parties), Sections 700-707 (Basis of Valuation), and other relevant sections of Republic Act (RA) No. 10863, also known as the Customs Modernization and Tariff Act (CMTA).
As early as 2018, the BOC had said it would draft a CAO on the registration and regulation of international shipping lines calling the Philippines.
Stakeholders in the shipping industry have for years raised the issue of alleged exorbitant fees—particularly destination charges—imposed by foreign shipping lines, but it has never been clear which government agency exercised jurisdiction over the lines or if ever there was any agency that had jurisdiction over them, to begin with.
However, BOC officials pointed out that the Customs Modernization and Tariff Act (CMTA) provides the BOC authority to govern and regulate the conduct of third parties—including shipping lines, shipping agents, and warehouse operators—that deal with the customs bureau concerning the import, export, movement, storage, and clearance of goods for and on behalf of another person.
Among the draft CAO’s objectives are to determine the cost of transport, loading, unloading, and handling charges, as adjustments to the price actually paid or payable for the imported goods, and to recognize the rules on International Commercial Terms (INCOTERMS) pursuant to Section 415 (Mode of Payment and Terms of Trade) of the CMTA.
The CAO also aims to ensure transparency in the collection of shipping charges. It will cover international shipping lines that call at Philippine ports to load and unload foreign cargoes, or their agents that act on behalf of international shipping lines in the handling of laden and empty containers to and from Philippine ports. (Edu Lopez)
