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SEIPI – ASLM 5th GENERAL MEMBERSHIP MEETING CY2013

SEIPI – ASLM 5th GENERAL MEMBERSHIP MEETING CY2013. Bellevue Hotel, Alabang July 31, 2013 1:00PM – 5:00PM. News and Updates.

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SEIPI – ASLM 5th GENERAL MEMBERSHIP MEETING CY2013

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  1. SEIPI – ASLM5th GENERAL MEMBERSHIP MEETINGCY2013 Bellevue Hotel, Alabang July 31, 2013 1:00PM – 5:00PM

  2. News and Updates • The Court of Appeals voided the permit granted to Fedex in 2011 by Civil Aeronatics Board (CAB) to operate in the Phils. Thus, Fedex forged a partnership w/ AAI w/c is a Filipino-owned company and a member of SEIPI. • The Customs Modernization Bill is still pending in Senate. Once approved, it will pave the way for more reforms in BOC. • Amendment of Tariff and Customs Code of the Phils to adhere to the revised Kyoto Convention; - aimed at the simplification and harmonization of customs processes worldwide • Regulations for more safeguards against smuggling / fraud; • Policy changes/enhancements to make import trade transactions faster, efficient and transparent

  3. Open Forum • CY / CFS Charges • Barrier Seal Cost Issue (ECTS) • BOC Overtime Charging at CEZ, Rosario

  4. 1. OD-CY/CFS Charges

  5. Sample Computation:

  6. OD-CY/CFS Charges • A public hearing was conducted at PPA last July 4. • Port Users Confederation (PUC) submitted a position paper last July 7 to Atty. Domingo, BOC’s Director for Legal Service, objecting the drafted CMO allowing OD-CY/CFS operators to increase the port charges Salient points: • In 2010, Philippines has the highest cost for both import and export activities among ASEAN countries (ranked 819th in Import and 816th in Export); • PPA has recently allowed a 15% increase only on cargo- related charges. However, the proposed increase of CFS operators per CBM is more than 200%; • Several complaints had been filed against CY/CFS operators for imposing charges beyond those allowed in CMO 24-2001. None of the complaints had been acted upon by BOC. OD-CY/CFS – Off-Dock Container Yard / Container Freight Station

  7. 2. Barrier Seal (ECTS)

  8. ECTS Implementation 2008 – European Commission and the Republic of the Philippines entered into a 4-year cooperation initiative dubbed as “Trade-related Technical Assistance or TRTA Project”. Under Component 3 of the TRTA is the “Enhanced Customs Transit System in all ports of the Philippines by the end of 2010”. 2010 – Issuance of Regulations and the implementation of ECTS through - Customs Administrative Order 4-2010 signed by the Secretary of Finance - Customs Memorandum Order 24-2010 signed by the Commissioner of Customs

  9. ECTS Implementation July 2011 – The PUC recommended the fees which became the basis of the proposed CAO on fees submitted to DOF: - Delivery to warehouse within one (1) kilometer radius - P 750.00 or lower - Delivery to Metro Manila and nearby towns (Ex. in Cavite and in Bulacan) P 1,500.00 - Delivery to Outports (Subic, Clark, etc.) P 2,250.00

  10. ECTS Implementation July 2011 – The PUC further proposed remedial steps to lessen their cost: - All containers tagged for GPS must already be provided by a duly processed and accomplished Boat-note. (This will eradicate the petty graft and delay.) - The mandated carrier’s Bond should now be scrapped, in lieu of the use of GPS. - The current use of the telegram (with cost of Php 90.00) shall likewise be scrapped, in lieu of the use of GPS. - The current under-guarding fee (per CMO 2-2004) shall likewise be discontinued, in lieu of the use of GPS.

  11. COMPARATIVE MATRIX ON THE CURRENT and PROPOSED COST OF TRANSSHIPMENT

  12. A position paper was submitted to BOC Coll. John Simon by Atty. Norma Cajulis dated May 30, 2013 on behalf of CEZ locators. From P564/container (ave.) paid for Escort and Container Security fees, the seal that replaced these costs P2,500/container. • Recommendation: SEIPI to also submit its own position paper.

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