Problems relating to Trade and Investment on The Philippines
9. Restrictive export/import trade, duty, and customs clearance |
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Issue |
Issue details |
Requests |
Reference |
| (1) Import Control | - GOP restricts or bans import of certain goods for reasons of public sanitation and safety, national security, international treaty or fostering the local industry. -- Items subject to restrictions require prior governmental approval at the competent authority, and -- Banned items cannot be imported in any circumstances. |
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| (2) Levy of Safeguard Duty | - On 30 September 2009, GOP imposed safeguard tariff on angle bar and other section steel. On 10 March 2012: GOP extended by 3-years the due termination date of the safeguard tariff imposition (until March 2015), as a result of re-investigation made upon the request of the local Mill. On 8 October 2013: Philippines Department of Trade and Industry (DTI) published on the two major newspapers initiation of safeguard measures investigation on zinc plated steel and coloured steel plate. |
- It is requested that GOP: -- repeals the safeguard measures, -- terminates the Investigation, and -- excludes Japanese steel from the scope of application of the safeguard measures. |
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| (3) The L/C based Import System | - GOP requires the letter of credit (L/C) in principle as a means of payment for all imports of steel products. To the L/C opening bank, all importers must: 1) submit application for opening L/C and import declaration form, 2) pay deposit for opening L/C (the amount of deposit varies depending upon the credit standing of the applicant), and 3) make provisional payment of tariff (based on the contract amount at the going rate of exchange prevailing on the L/C opening date.) |
- It is requested that GOP repeals this system. | |
| (Action) - On 2 July 2009, National Economic Development Authority (NEDA) announced the final firm safeguard measures on steel angle bars from 33-countries, including Japan, pursuant to R.A.8800, known as "Safeguard Measures Act". |
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| (4) Pre-Shipment Inspection Obligations | - Since 4 January 2010, Administrative Order (AO243-A) has been enforced. Bulk, break-bulk cargo, other than containerised cargoes, must have pre-shipment inspection completed at the port of export. On 12 May 2010, Customs Order (CMO18-2010) was promulgated. Implementation rules have been tightened by adding high-risk cargo provisions for high-risk cargoes, such as conducting inspection at the unloading port. - Pre-shipment cargo inspection (costing 60,000 yen per invoice) in the exporting country is compulsory for shipment by bulk carrier for export to the Philippines. However, it is difficult to take advantage of the lower freight rate, because of the heavy inspection charge and extra lead-time (of about one week), resulting in change to shipment by container steamer with the increased physical distribution cost. |
- It is requested that GOP repeals the requirement. - It is requested that GOP either repeals pre-shipment inspection requirement or reviews the pre-shipment inspection method. |
- Presidential Administration Order (AO) 243-A - Customs Order (CMO18-2010) |
| (Action) - On 12 May 2010, Bureau of Customs promulgated Circular No. 2000-18 (enforced on the same date) that implements pre-shipment inspection of bulk cargoes and break-bulk cargoes. - Effective from 4 January 2010, pre-shipment inspection at the place of export shipment by the designated enterprises for quantities and the items of shipment has been made a mandatory requirement on bulk cargoes and break-bulk cargoes entering the ports of the Philippines. |
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| (5) Overly detailed requirements on Customs Clearance Documents | - Customs requires numerous documents (PICCS, PMPIN, SQI, MSDS), requiring disclosure of confidential data, including ink ingredient, etc. This trend is noticeable in air shipment (not in normal ocean shipment). The customs requirement for data and information exceeds beyond the tolerable technological boundary in contents. | - It is requested the Philippine customs review the information sought in the customs clearance documents to streamline its requirement within the reasonable extent. | |
| (6) Introduction of New Import Procedures | - Upon import of storage equipment loaded with optical media information and Operation System (OS), GOP requires Optical Media Board (OMB) permit, acquisition of which takes a long time. It blocks having an emergency business conference. | - It is requested that GOP facilitates the customs clearance procedures to avoid interference with the business conference, and to enable timely delivery. | |
| (7) Delayed Export/ Import Cargo by Traffic Regulation/ Increased Transportation Cost | - The traffic congestion in the Manila metropolitan area was not born yesterday. In February 2014, the city of Manila (COM) started Manila truck ban, disallowing the truck passage within COM from 5:00 a.m. until 9.00 p.m. However, this was an apparent political misjudgment, with the 2-largest ports in the Philippines located in north and south of COM. It caused the heavy container congestions at Manila port, and gave a serious operational impact. GOP experienced heavy reduction in customs duty income, while meeting with strong opposition from export/import industries, and truck association. By September, GOP was compelled to lift the ban on the truck entry into COM. The harbour operation has not fully recovered, with the chronic delays in steamer schedule continuing even now. To begin with, the main culprits of the traffic congestions include long-distance bus, jeepneys, tricycles (motor bike with side car). However, cutting them down will surely meet with citizens' oppositions, leaving GOP with no other choice. Some reported this was performance of Mr. Estrada (ex-Philippines president, now Manila mayor), who now vies for the 2016 presidential election. - City of Manila's truck ban (total ban of large vehicle during the day time) has caused much delay in parts and materials delivery, and product shipments, even now after lifting the truck ban, 60% of the commodity traffic suffers delays. It has caused material cost up by having to airfreight cargoes, a serious state of affairs. - The cargo jam-up triggered by the truck ban in the Manila area last year continues, causing continued delays in the handling of inbound-outbound vessels and the related work. |
- It is incumbent upon GOP to hold consultation with the economic/ industrial concerns to establish the countermeasures, shifting from the going scheme of concentration into Manila to spreading into suburban ports (by reduction in port fees, etc.). During the period of congestion, the capacity utilization at both ports has gone up, as a result. However, it was not achieved by planning. - It is imperative that GOP: -- avoids concentration of all cargoes into Manila port only, -- accelerates effective deployment of Subic port and Batangas port -- overhauls the infrastructure of both ports for boosting their cargo handling capacity. - It is requested that GOP takes step to resolve congestions, jam-ups and delays in the harbour area as soon as possible. |
- Metropolitan Manila Council Special TRAFFIC Committee Resolution No.10 Series of 2014 |
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