The United Portusers Confederation of the Philippines (UPC) has submitted a nine-point position paper urging changes to the draft Joint Administrative Order (JAO) that seeks to regulate charges imposed by shipping lines and other logistics service providers to help reduce logistics costs in the country.
In its position paper, UPC welcomed the provision requiring shipping lines to refund container deposits within 15 days after the return of empty containers. While the group said the fixed timeline is an improvement over the current practice, where no refund period is prescribed, it argued that a 15-day waiting period still ties up the working capital of small and medium-sized importers that pay container deposits on a per-shipment basis.
UPC proposed shortening the refund period to five to seven banking days and integrating the refund process into the automated container monitoring system. Under the proposal, refunds would be triggered automatically once the return of the container is confirmed, eliminating the need for manual back-office processing by shipping lines.
The group also expressed support for the draft JAO’s fault-based framework, which prohibits the imposition of demurrage and detention charges when a shipping line fails to acknowledge a return request on time or assign a container yard.
However, UPC pointed out that the draft does not prescribe a minimum free period before demurrage and detention charges begin to accrue, leaving the matter to be negotiated between the shipping line and the importer.
The confederation recommended that the JAO, or its implementing rules, establish an industry-wide minimum free period of five to seven calendar days, in line with common regional practice, to provide greater protection for smaller importers.
UPC also called for tougher penalties for violations. While the draft JAO provides for penalties ranging from PHP5,000 to PHP10,000 per day for violations by shipping lines, container yard operators, importers, and cargo truck operators, the group identified two major gaps.
First, it noted that indirect liens and the wrongful withholding of container deposit refunds are not included among the violations listed under Section 32 of the draft JAO, leaving these consumer protection provisions without corresponding penalties.
Second, UPC argued that a flat penalty of PHP10,000 per day may be too low to deter shipping lines, as the amount can be outweighed by the demurrage and detention charges they collect from delayed cargo, which can exceed that amount for a single container.
The group also urged the government to grant port users direct access to the automated container monitoring system to improve transparency and enable them to track container movements and transactions in real time.
In addition, UPC proposed that the 10 percent monitoring and supervision fee under the JAO be charged solely to the accredited service provider, with an explicit prohibition against passing the cost on to port users through higher booking or access fees.
The confederation likewise called for standardized nomenclature and fee ceilings, with all approved rates to be published at least 30 days before implementation. It also recommended that rate submissions approved by the Bureau of Customs (BOC) be made publicly available online, rather than being disclosed only to the BOC and the Department of Trade and Industry.
Finally, UPC said that since the draft JAO is primarily intended to protect port users from excessive and non-transparent charges, port-user associations should be given a permanent, non-voting seat or a formal advisory role in the Oversight Committee instead of being invited only on an ad hoc basis.
