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The Bureau of Customs is looking to exempt Super Green Lane members’ reefer shipments from first-border inspection
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The move is designed to tame high reefer yard utilization at Manila ports
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Under the proposal, SGL reefer shipments will only go through inspection at the final destination
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SGL Association president Cris John Garcia welcomed the plan, noting it “would free up reefer plugs faster and improve overall yard utilization, without compromising regulatory controls”
The Bureau of Customs (BOC) is looking to exempt Super Green Lane (SGL) members’ reefer shipments from first-border inspection to help tame high reefer yard utilization at Manila ports.
In a recent meeting with stakeholders, Customs commissioner Ariel Nepomuceno said he will discuss with Department of Agriculture (DA) officials the possibility of freeing SGL members’ reefer shipments from first-border x-ray and physical inspection carried out at the designated examination area (DEA), retaining only inspection at the final point of destination.
Under current rules, the BOC and DA, including its attached bureaus such as the Bureau of Plant Industry, conduct joint inspections on imported agricultural products at the DEA to verify compliance with food safety and phytosanitary regulations before goods are released.
SGL Association president Cris John Garcia, in a message to PortCalls, said they welcome “the directive of BOC Commissioner Ariel Nepomuceno to remove first-border inspection for SGL members’ reefer shipments,” noting it would have a significant impact on easing high reefer yard utilization, as SGL members contribute a substantial volume of reefers at the port.”
SGL members include the country’s biggest importers and multinational corporations granted expedited customs clearance and reduced inspection. They account for about 60% of the country’s total volume of refrigerated shipments.
Reefer yard utilization at the Manila International Container Port has been stubbornly high for the last few weeks, with some days breaching 100%. As of February 20, the MICP yard use for reefers was at 94.76% and overall yard use at 84.45%.
Garcia, also the Strategic Global Logistics, Vendor Management, and Corporate Procurement Lead at Monde Nissin Corporation, pointed out: “Reefer containers waiting for joint inspections by BOC and DA increase dwell time and congestion. Allowing compliant importers to proceed directly to inland or post-clearance inspection (at importers’ premise) would free up reefer plugs faster and improve overall yard utilization, without compromising regulatory controls. This aligns with the risk-based trade facilitation approach under BOC’s SGL program.”
He described the proposal as a “win-win solution for both government and the private sector” as it would expedite SGL reefer shipments’ release which, in turn, would “1, free up port space; 2, facilitate trade; and 3, help SGL companies avoid unnecessary storage and reefer costs.”
He said that with the reefer volumes handled by SGL members, the “potential cost avoidance running into millions of pesos per day will ultimately benefit our Filipino consumers in general.”
Earlier, BOC said it will also strictly implement the 90-day foreign container dwell time to help cut high yard utilization at Manila ports and empty container depots (ECDs).
Under Customs Administrative Order 08-2019, foreign containers (whether loaded or empty) need to be re-exported within 90 days from the discharge of the last package or they will subjected to payment of duties and taxes. Beyond 90 days, they will be considered overstaying and issued an assessment notice.
In addition to strict implementation of the 90-day container dwell time ruling, the BOC is looking into tighter supervision and regulation of ECDs via the mandatory use of an automated inventory management system.
The digital system — now being worked on for possible implementation in May — requires booking of empties in ECDs, allowing the BOC to strictly monitor and generate real-time and accurate information capacity of ECDs, providing visibility over the facilities’ capacity, utilization and container dwell time.
