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The Federation of Indian Chambers of Commerce Philippines (FICCI) urges adoption of a single all‑in freight rate for foreign shipping lines calling the Philippines, replacing separately imposed destination and local charges
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This forms part of FICCI’s position paper on the proposed joint administrative order (JAO) covering port yard utilization and cargo handling by customs‑accredited third parties and other logistics providers
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FICCI further recommends banning container deposits when other guarantees exist; recognizing importers’ withholding tax rights; immediate issuance of delivery orders; prohibiting indirect liens; and mandating refunds within 15 days
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All regulated charges should undergo annual stakeholder review, FICCI emphasized
The Federation of Indian Chambers of Commerce Philippines (FICCI) has urged the adoption of a single, all‑in freight rate for foreign shipping lines calling the Philippines, replacing separately imposed destination and local charges.
This recommendation forms part of FICCI’s position paper on the proposed joint administrative order (JAO) covering port yard utilization and the handling of cargoes by customs‑accredited third parties and other logistics providers.
FICCI’s paper also calls for:
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Ban on container deposits when other guarantees are already in place
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Recognition of importers’ withholding tax rights
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Immediate issuance of delivery orders
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Prohibition of indirect liens
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Mandatory refunds within 15 days
In addition, FICCI advocated that regulated charges be subject to annual review in consultation with stakeholders.
At the Bureau of Customs’ (BOC) 6th Customs Industry Consultative and Advisory Council (CICAC) general assembly and 12th Central CICAC, FICCI past president and chair Rex Daryanani stressed: “All mandatory costs of carriage—including terminal handling, documentation, release, equipment, administrative, and similar charges—should be folded into a single all‑in freight rate, disclosed and agreed before booking, as was the practice prior to the 2014 port congestion.”
He explained that this system would let market forces operate freely, with importers negotiating rates in advance “the same way we buy airline tickets.” The all‑in freight should be disclosed in writing before booking and binding upon acceptance.
Daryanani, also president of the Philippine Chamber of Children’s Products Industries, Inc., noted that freight is often computed at minimum or “even crazy zero levels to appear attractive,” with rebates benefiting suppliers abroad rather than Philippine importers.
Importers, he said, “become captive once the cargo has sailed and must pay destination charges just to secure a delivery order (DO) and release goods”—a system he described as “anti‑transparent and anti‑competitive.” He added that destination charges intensified after the 2014 port congestion.
Citing airlines as a model, Daryanani emphasized that prices are disclosed upfront, allowing passengers to compare and avoiding surprise mandatory fees upon arrival.
READ: Manila port congestion ‘very likely’ to recur – gov’t study
Other recommendations
Aside from the single all‑in freight rate, FICCI also urged that importers retain the right to withhold and remit applicable taxes, with every shipping line charge backed by a Bureau of Internal Revenue‑compliant invoice or official receipt.
Container deposits should be banned where guarantees, contractual remedies, or marine insurance already exist.
Undisputed refunds—such as overpayments, duplicates, or cancelled charges—must be released within 15 days, with delays automatically accruing interest and sanctions.
Delivery orders (DOs), refunds, bookings, or services must never be withheld over obligations from unrelated transactions. Electronic and manual DOs should be issued immediately upon payment and submission of complete documents, always specifying the designated container yard for empty returns.
Daryanani added that container cleaning is a normal operating expense of shipping lines, with charges allowed only for abnormally dirty, contaminated, or damaged units.
On the draft JAO’s proposed 75% optimum yard utilization and 30% excess capacity limit for shipping lines’ container yards, he stressed these thresholds “must rest on real capacity studies and stakeholder consultation—not arbitrary fixed figures.”
All regulated charges should undergo annual stakeholder review. FICCI also proposed a biennial State of Philippine Logistics Report to track costs, dwell times, and compliance.
Moreover, FICCI urged that BOC’s CICAC be formally designated as the principal consultative body under the JAO Oversight Committee. Daryanani emphasized CICAC must be consistently consulted on major changes affecting logistics costs and operating standards before—not after—rules are set.
CICAC serves as BOC’s platform for engaging industry groups, enlisting their support in advancing reforms and addressing customs‑related issues.
Customs commissioner Ariel Nepomuceno, at the same event, said the bureau aims to secure JAO approval within August. BOC received 20 stakeholder position papers during the July 7–13 comment period. — Roumina Pablo
READ: PortCalls Special Report on Manila’s Cargo Crisis (Part 1) — When Sea and Air Feel the Squeeze
Manila’s Cargo Crisis (Part 2): Capacity Crunch at the Airport
