-
A House bill has been filed which seeks to strengthen government oversight on international shipping line charges
-
Bagong Henerasyon Partylist representative Roberto Nazal Jr. has filed House Bill No. 1338 or the International Maritime Trade Competitiveness Act
-
HB 1338 will cover “all aspects affecting the imposition of shipping charges by international carriers arriving at or originating from Philippine ports”
-
Previous Congresses have attempted to get a similar measure passed but to no avail
A House bill has been filed which seeks to strengthen government oversight on international shipping line charges, and institutionalizes mechanisms for efficient movement of goods.
Bagong Henerasyon (BH) Partylist representative Roberto Nazal Jr. filed House Bill (HB) No. 1338, or the International Maritime Trade Competitiveness Act, aimed at enhancing the competitiveness of Philippine maritime trade through stronger oversight of relevant government agencies over the imposition of shipping charges by international shipping lines operating in the Philippines.
Similar bills, including one advanced by BH Partylist, were filed in previous Congresses to no avail. One had been approved on third and final reading during the 18th Congress yet failed to be considered at the Senate where it had no counterpart measure.
In support of such bills are various stakeholder and business groups who attribute high shipping charges to a lack of regulatory oversight. (No government agency exists to oversee local charges imposed by international shipping lines.)
READ: PCCI champions 20 legislative measures, including on logistics, trade facilitation
In his explanatory note, Nazal 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.
He 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 1338 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), and forwarders 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, container insurance, should be charged by international shipping lines or their agents, freight forwarders and NVOCCs to 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.
Refusal by the shipping line’s nominated container depot to accept an empty container return within the agreed period will constitute in the waiver of imposition of detention charges. Any claims for additional charges by reason of delayed acceptance of the nominated depot shall be borne by the shipping line.
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.
MARINA will 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.
HB 1338 has been referred to the House committee on transportation. – Roumina Pablo
