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Another bill has been filed in Congress seeking to strengthen oversight functions of government agencies over the imposition of local shipping charges by international shipping lines operating in the Philippines
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House Bill No. 8165, or the International Maritime Trade Competitiveness Act, will cover “all aspects affecting the imposition of shipping charges by international carriers arriving at or originating from Philippine ports”
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Similar bills have been previously filed in the current and previous Congresses
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Under the bill, all international carriers, non-vessel operating common carriers, freight forwarders, and port/terminal operators should file all their regular shipping charges and fees with the Maritime Industry Authority
Another bill has been filed in Congress seeking to strengthen oversight functions of government agencies over the imposition of local shipping charges by international shipping lines operating in the Philippines.
Cagayan de Oro representative Rufus Rodriguez and his brother, Abamin Party List representative Maximo Rodriguez Jr. recently filed House Bill (HB) No. 8165, or the International Maritime Trade Competitiveness Act, which aims to enhance the competitiveness of the country’s maritime trade by giving government agencies stronger control over shipping charges by foreign carriers and institutionalizing mechanisms for the efficient movement of goods.
Similar bills were filed in previous Congresses but were left pending at the committee level. One bill was approved by the Lower House on third and final reading during the 18th Congress but went no further. The Philippines has a bicameral legislature and bills need to also hurdle the Senate to become law.
READ: Bill eyes stronger government oversight on international shipping line charges
In the current 20th Congress, the similar bills were filed by Bagong Henerasyon Party List representative Roberto Nazal Jr. filed (HB No. 1338), Senator Jinggoy Estrada (Senate Bill No. 1012), both also called the International Maritime Trade Competitiveness Act.
Business groups and various stakeholder have supported such bills, saying the high foreign shipping charges “are caused by a lack of regulatory oversight as there is no agency assigned to oversee local charges imposed by international shipping lines.”
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In HB No. 8165’s explanatory note, which is the same as HB No. 1338’s, the Rodriguez brothers said “excessive and unnecessary fees, charges and surcharges imposed as origin and destination charges as well as unconscionable fees imposed on the management of empty containers by international shipping lines” undermines the country’s competitiveness.
They added that charges being imposed and collected at will by international shipping lines have enormous impact on the economy as it increases the cost of importing raw materials and intermediate goods; escalates the prices paid by the domestic consumer; impairs the government’s collection of correct taxes; and undermines the privity of obligations and contracts principle.
HB No. 8165 will cover “all aspects affecting the imposition of shipping charges by international carriers arriving at or originating from Philippine ports.”
Under the bill, all international carriers, non-vessel operating common carriers (NVOCC), freight forwarders, and port/terminal operators should file all their regular shipping charges and fees with the Maritime Industry Authority (MARINA), and publish the same in a newspaper of general circulation.
No charges or fees should be imposed beyond the published rates.
No new or initial rate or change in an existing rate that results in an increased cost to the shipper may become effective earlier than 30 days after the submission to the MARINA of such new shipping rates, except when allowed by MARINA for reasonable or good cause.
No local charges or surcharges, except for internationally-accepted surcharges, fees for value-added services, and behavioral charges such as late payment fee and container insurance should be charged by international shipping lines or their agents, freight forwarders and NVOCCs to Philippine consignees and shippers.
The imposition and parameters of such imposition must be clearly defined in the contract of carriage and subscribed by the shipper or consignee.
Moreover, no detention charges in the return of empty containers should be imposed by shipping lines when they cause the delay. For this purpose, international shipping lines must ensure that the delivery order always indicates the container depot where the empty container owned by the shipping lines must be returned, including the timeline for the return.
Any demurrage fee or detention charge should not constitute a direct or indirect lien on container deposits or on other cargoes or shipments covered by a separate transaction of the same shipper or consignee.
MARINA may allow the imposition of container deposits only if the forwarders or agents of international shipping lines implement an expeditious procedure in refunding the same within a non-extendible period of 15 calendar days from the return of the container; there are clear and fair standards for deductions made known by such forwarders or agents to the other party prior to engagement; and there is actual proof that a container deposit has been paid before any deduction is made.
Within 90 days from the effectivity of the proposed law, certified copies of all existing agreements between and among international carriers operating in Philippine ports and agreements among Philippine port or terminal operators as well as among one or more Philippine port or terminal operators and one or more international carriers operating in Philippine ports that affect Philippine maritime trade, should be submitted to MARINA.
Any agreement or any amendment thereto will become effective 30 days after the submission.
If MARINA determines that the agreement is likely to produce an unreasonable reduction in transportation services or an unreasonable increase in transportation cost, it may refer to the Philippine Competition Commission for appropriate action.
MARINA will also be accrediting sea freight forwarders such as NVOCC, international freight forwarders and other similar maritime enterprises. It will also exercise supervision over sea freight forwarders, domestic freight forwarders, and other similar maritime enterprises including the ship agents and their representatives, branches, offices or subsidiaries of international shipping lines to ensure the reasonableness of their rate-setting mechanism for local fees and charges, and compliance with existing laws, rules and regulations relating to standards of safety, quality and efficiency of operation.
Private sector representatives will also be included as additional members of the MARINA Board in matters pertaining to charges and fees imposed on international maritime trade.
The MARINA Board should also formulate a National Logistics Efficiency Policy (NLEP) to ensure the efficiency of customs and border management, quality of trade and transport infrastructure, competence of logistics services, their ability to track and trace consignments, and the competitiveness of shipping prices. The NLEP will serve as a guide in the formulation and issuance of the rules, regulations, and programs of the implementing agencies specified in the proposed measure.
Similar to HB No. 1338, HB No. 8165 was referred to the Lower House Committee on Transportation.—Roumina Pablo
