-
The Department of Trade and Industry hopes to launch by this year or the first quarter of next year a digital system that will harmonize the accreditation process for sea and air freight forwarders
-
DTI is now in the final stages of testing the Harmonized Online Freight Forwarding Accreditation, a system that will reduce documentary requirements
-
The creation of the HOFFA is part of the proposed joint memorandum circular that aims to develop and implement a unified system for the accreditation of air and sea freight forwarders
The Department of Trade and Industry (DTI) hopes to launch by this year or the first quarter of next year a digital system that will harmonize the accreditation process for sea and air freight forwarders.
DTI is now in the final stages of testing the Harmonized Online Freight Forwarding Accreditation (HOFFA), a system that will reduce the documentary requirements and simplify the accreditation process for both sea and air freight forwarders. This, according to DTI Supply Chain and Logistics Office chief trade industry development specialist Jonathan Cabaltera in a presentation during the recent Abante Logistics Forum by the United Portusers Confederation of the Philippines, Inc.
The creation of the HOFFA is part of the proposed joint memorandum circular (JMC) that aims to develop and implement a unified system for the accreditation of air and sea freight forwarders.
The proposed JMC was subjected to public consultation in 2023 following the signing in December 2022 of a memorandum of agreement (MOA) between the DTI and the Department of Transportation (DOTr) to harmonize sea and air freight accreditation.
In 2021, the Logistics Services Philippines (LSPH) Project Streamlining was carried out by DTI to identify regulatory constraints in the freight forwarding sector. Among the key findings are the separate and redundant accreditation requirements and processes for sea and air freight forwarders by DTI’s Fair Trade Enforcement Bureau (FTEB) and the Civil Aeronautics Board (CAB) of DOTr.
Sea freight forwarders currently get accredited with FTEB while air freight forwarders are accredited by CAB.
The JMC aims to streamline the accreditation of sea and air freight forwarders by creating a unified application form, streamline of processes, and the establishment of HOFFA.
Under the draft JMC, all air and sea freight forwarders should, prior to operation or upon renewal, secure a Certificate of Authority (CA) through the single system, and apply for the renewal before or within the period prescribed.
A unified application form will be used in applying for certification by any person desiring to operate as a sea and/or air freight forwarder.
Documentary requirements for the issuance of freight forwarder accreditation will be reduced and posted in the single system in accordance with Republic Act 11032, otherwise known as Ease of Doing Business and Efficient Government Service Delivery Act of 2018.
All applications and documentary requirements should be reviewed, evaluated and validated within three days, provided that all requirements are complete based on the pertinent regulations of the DTI, DOTr, or CAB, as the case may be.
The CA will be valid for a period of five years unless suspended, canceled or revoked whether by FTEB or CAB.
The amount of paid-up capital, partner’s contribution, or proprietor’s equity will be based on the existing guidelines of DTI and CAB.
The payment of fees will be made possible online after an agreement with digital payment providers is made.
The draft JMC notes that the exclusive jurisdiction over airfreight forwarders still rests upon the CAB, and the exclusive jurisdiction over sea freight forwarders and NVOCCs will be delegated to DTI.
If a stakeholder holds both airfreight and sea freight forwarding or NVOCC permits, CAB and DTI will have their separate assessment and evaluation through the single digital system and will still exercise their respective jurisdiction over such stakeholders.
Once approved, DTI and CAB should issue their respective guidelines, rules and regulations implementing the JMC within 30 days after its effectivity.
Earlier, CAB executive director Carmelo Arcilla said through the unified accreditation system, freight forwarders engaged in both air and sea freight operations would not have to go to two different offices as there will be a single application form and single set of requirements, steps, and fees for accreditation.
Aside from the proposed JMC, DTI also recently released its new rules on seafreight forwarding,
Department Administrative Order No. 24-09, which lays down the minimum standards and requirements for recognizing freight forwarders, and finally amending the defunct Philippine Shippers’ Bureau’s Administrative Order No. 06-2005, which prescribes the current rules on sea freight forwarding and was issued almost 20 years ago in 2005.
READ: Harmonized Online Freight Forwarding Accreditation in the works
