AIRCARGO FORWARDERS OF THE PHILS., INC (AFPI) Philippines. Country Report

Transcription

1 AIRCARGO FORWARDERS OF THE PHILS., INC (AFPI) Philippines Country Report FOR THE 34 th EXECUTIVE COUNCIL MEETING OF THE FEDERATION OF ASIA PACIFIC AIR CARGO ASSOCIATION (FAPAA) IN HONG KONG 30 August 1 September 2007

2 AFPI Address Aircargo Forwarders of the Philippines, Inc. Room 225 Skyfreight Building NAIA Avenue, Parañaque City Philippines Tel : or Fax : AFPI Secretariat support@afpi.org.ph Training & Development Center training@afpi.org.ph Secretary General secretary_general@afpi.org.ph Contact Person: Marivic C. Domondon Secretary General

3 PHILIPPINE Country Report Page 3 of 12 ======================================================================= AFPI The Only National Air Cargo Association The AFPI was organized in The only organization that the Civil Aeronautics Board (CAB) has endorsed to the air freight forwarders. AFPI Membership At the time of formation, AFPI had 11 pioneer members. Today, AFPI has grown to 145 members. IATA MEMBERS IATA - 80 Non IATA - 65 AFPI Board of Directors and Officers The governing body of this association consists of eleven (11) elected Directors, and from among them, they elect the Executive Officers which are the President, 1 st Vice President, 2 nd Vice President, Secretary, Treasurer, Press Relation Officer, Sergeant-at-Arms and four (4) other Directors. Election is held once every two years. The immediate past President is automatically designated as Chairman of the Board, and he lends experience, expertise and assistance to the Board and the Officers of the Association. The immediate past Chairman of the Board is automatically designated as Chairman Emeritus, and like the Chairman of the Board, lends his experience, expertise and assistance to the Board and the Officers of the Association. AFPI Committees Internal Affairs Membership Finance Constitution & By-laws Ethics and Standards

4 Page 4 of 12 ======================================================================= Training Legal Director External Affairs Government Affairs and Airlines Affairs Communications Ways & Means Secretary General Council of Past President AFPI Elected Officers & Directors Chairman Emeritus Mr. Eduardo representing Skyfreight Forwarders De Guzman Chairman Ms. Cynthia R. Tsui representing Asia Overseas Transport Co., Inc. President Mr. Jaime A. Roxas representing Jugro Transport International Phils., Inc. 1 st Vice President Mr. Roy A. Raralio representing ABX Pan Globe Logistics, Inc. 2 nd Vice President Ms. Rosemary N. Su representing UTI (Global Logistics) Inc. Treasurer Mr. Gregg S. Sebastian representing Hankyu Int l Transport Phils., Inc. Secretary Ms. Antoinette Reyes representing Eagle Express lines Inc. P.R.O. Ms. Mariz Regis representing Airspeed Int l Corp. Sergeant-at-Arms Mr. Dominador De representing Sky land Brokerage Guzman Inc.

5 Page 5 of 12 ====================================================================== Directors Ms. Ramon De Leon representing Pac-Atlantic Lines (Phils.), Inc. Mr. Dexter Yu representing All Transport Network Mr. Joey Tongson representing Agility Int l Logistics Inc. Mr. Leo Tagle representing Yusen Air & Sea Service Phils., Inc. Legal Director Atty. Romeo Sto Tomas AFPI OBJECTIVES: AFPI MISSION: To encourage cooperation, strengthen camaraderie among its members. To provide activities that will boost Global competitiveness. To promote Professional Development. To advocate and up hold Corporate Governance and business ethics. To address promptly the issues and concerns of the industry. To provide the Aircargo Logistics Industry with Leadership and Direction in enhancing its competency and Global competitiveness. AFPI VISION: To be the most Professional, Progressive, Purpose Driven Logistics Association in Asia.

6 Page 6 of 12 ======================================================================== Network In pursuance of its commitment to perform a strategic role in the airfreight industry, AFPI is working towards having a stronger voice in the nation s economic affairs. It is determined to achieve this through the expansion of its organization s membership list to include the airfreight forwarders in the major cities of the country. One of its successful endeavors in this direction is the organization of AFPI Cebu Chapter. AFPI Projects / Activities In its 27 th industry: years of existence, AFPI has effected positive changes in the airfreight Helps promote and facilitate regional and international trade Provides a chain of logistics support to its members like warehousing, customs clearance, door-to-door delivery, chartering, statistics forecast and market research, distribution, consolidation, conferences and exhibitions, information technology and affiliation with international bodies and organizations involved in air transportation. Maintains a Training and Development Center, organized to provide the personnel of all member companies of AFPI with training and development programs / services AFPI Membership in International Organizations Federation of Asia Pacific Aircargo Association (FAPAA) The International Federation of Freight Forwarders Association (FIATA) Asean Federation of Forwarders Association (AFFA)

7 Page 7 of 12 ======================================================================== Membership and Alliances National Associations Port Users Confederation (PUC) Philippine International Seafreight Forwarders Association, Inc. (PISFA) Federation of Accredited Customs Brokers and Forwarders of the Phils., Inc. (FACFOB) Chamber of Customs Brokers, Inc. (CCBI) Philippine Domestic Freight Forwarders Association (Phidoffa) Ecozone Federation of Forwarders/Brokers and Truckers, Phils. (EFFORT Phils.) Federation of Forwarders Associations in the Phils., Inc. (FEDFAP) Representing the Airfreight Industry with various Government Agencies Department of Transportation and Communications Civil Aeronautics Administration Metro Manila Development Authority Philippine Economic Zone Authority Bureau of Customs AFPI TRAINING & DEVELOPMENT CENTER (Please see separate attached report)

8 Page 8 of 12 ======================================================================== RECENT ISSUES TACKLED: MIAA ACCREDITATION: There were several meetings held last year with regards to the clarification on who may be granted accreditation and thus allowed access to the premises of the airport. Finally the Manila International Airport Authority issued a Memorandum Circular No. 06 dated April 10, This Memorandum defines the policy and prescribes the guidelines for the accreditation of individual customs brokers, customs brokerage companies / corporations and cargo/freight forwarders at the Airport. It shall apply to licensed and duly registered Professional Customs Brokers, Customs Brokerage companies engaged in business activities at the Airport Complex. This Memorandum Circular shall take effect fifteen days after its publication in a newspaper for general circulation. Memorandum signed by General Manager Alfonso G. Cusi. NAIA CUSTOMS BONDED WAREHOUSE OPERATORS COUNCIL (NCBWOC) EXPORT CHARGE OF PHP 0.68/KG.: There was a petition from NCBWOC to initially impose export warehousing charges of Php 0.68/kg. Several meetings were held on the petition wherein government bodies and private stakeholders such as the Semiconductors and Electronic Industries in the Philippines Inc. (SEIPI), the Export Development Council, and investors in the Philippine Export Processing Zones participated. Subsequently and with the active participation of then-president Cynthia R. Tsui, the NCBWOC agreed not to implement the export warehousing and other related fees, and instead file a petition with the Bureau of Customs to increase the Import Service Charges.

9 Page 9 of 12 =========================================================== CASS NEUTRAL AIRWAY BILL (NAWB): Last March 2006, there was a notice from IATA Philippines requesting all IATA CASS agents to use the CASS Neutral Airway Bill (NAWB) for all transactions under CASS with a cost of Php per Neutral Airway bill. Opposing the Notice as imposing additional financial burden to the airfreight forwarders, the Aircargo Forwarders of the Philippines Inc. (AFPI) filed a petition with the Civil Aeronautics Board (CAB), requiring airlines to provide FREE NAWB s to Freight Forwarders with an application for temporary restraining order and preliminary injunction compelling airlines not to implement their requirement that only NAWB are acceptable. The Association felt that to make the cargo agents responsible for the cost of Air Waybill forms and the printing of said documents and other ancillary charges is not fair and proper because said document are the airlines form and not the document of the cargo agents. Currently the case is still pending with the CAB since the AFPI is still waiting for the formal reply from IATA CASS Phils. and the Board of Airline Representatives. KYOTO CONVENTION: With the participation of AFPI in the Briefing-Workshop sponsored by the Bureau of Customs, the Bureau of Customs was able to finalize the steps to be undertaken in the implementation in the country of the Revised Kyoto Convention, as well as the corrective measures to be made to existing procedures to make them compliant with the provisions of the RKC. The steps, measures, as well as the implementation of the RKC were then submitted to President Gloria Macapagal Arroyo for finalization and implementation. Upon adoption of state formalities acceding to the Revised Kyoto Convention, the Philippines will form part of the global regime standardizing Customs formalities and processes in tune with the current demands of international trade.

10 Page 10 of 12 ========================================================================== CONTAINER SECURITY FEES: By virtue of Executive Order no. 592 dated December 15, 2006, the Bureau of Customs imposed upon import shipments the payment of Container Security Fee (CSF) amounting to US$ and US$ for every 40-footer and 20-footer container, respectively. Upon strong and united opposition by the Port Users Confederation, of which AFPI, PISFA and other associations are members, the Bureau of Customs acceded to the demands of the stakeholders and reduced the CSF to US$ and US$ 5.00 per 40 and 20 respectively. The CSF is the amount charged for every container of goods being imported to recover the fees to purchase, operate and maintain the x-ray machines installed at the Manila ports to scan shipments before release from the BOC. INTERCOMMERCE NETWORK SERVICES, INC.: The Bureau of Customs has issued an Administrative Order requiring the electronic submission of advanced manifests prior to the arrival of shipment, In line with the requirement, InterCommerce Network Services Inc., an ecommerce Service company providing EDI, value added network services, application development and systems integration solutions and services, proposed with the AFPI to serve as its partner in the implementation of the BOC-required advanced manifest when airfreight shipments are made to submit the said manifests. Under the proposed arrangement, all airfreight forwarders needing to connect with the BOC through InterCommerce, a Value Added Service Provider (VASP) which is presently the only accredited VASP by the BOC, will first have to be endorsed by AFPI, which in turn will serve as the payment center for the service charges in the manifest submission. Without AFPI s endorsement, InterCommerce will not accept the lodging of advanced manifest by an airfreight forwarder. For AFPI s endorsement and collection efforts, the Association will earn a share of the service fees.

11 Page 11 of 12 ============================================================ InterCommerce has also indicated to look into other collaborative arrangements with AFPI or its members in identifying and developing value added services for members or for its client shippers or consignees, such as advance manifest copy to consignee, on-demand retrieval of manifest data per consignee, automated validation of consignee s import declaration against AWB/manifest reference number, electronic billing and payment for shipping and other charges. REPUBLIC ACT 9280 (The Customs Broker Act of 2004): This law was passed in February of 2004, to professionalize Customs Brokerage, but some provisions were inserted by unknown persons before signing into law by the President of the Philippines. The inserted provisions contained, among others, one which prohibited customs brokerage corporations from engaging in the business of customs clearance, which has long been allowed as explicitly contained in the Tariff and Customs Code of the Philippines. Upon knowing that such provisions were included in the signed law, the Port Users Confederation, which counts on AFPI as an active member, left no stone unturned to prevent the implementation of the questioned provisions, among which is to thwart the efforts of the individual customs brokers to prevent the customs brokerage companies from being recognized by the Bureau of Customs and transacting business with it. The success of the efforts resulted in the BOC issuing a Customs Administrative Order explicitly allowing customs brokerage companies to register with the BOC and to be allowed to transact business with the Bureau. The law was almost amended last June but for the failure by the House of Representatives to muster a quorum in their last three (3) session days after the amendments were passed in the Bicameral Hearing of the joint Senate and House panels. The effort to amend the law will be continued this August as the new Congress and Senate continue their legislative work. Presently, two (2) House and one (1) Senate Bills have been introduced.

12 Page 12 of 12 ============================================================ REVENUE MEMORANDUM CIRCULAR (RMC) NO OTHERWISE KNOWN AS RMC FOR FREIGHT FORWARDERS: The approval of the Bureau of Internal Revenue of Revenue Memorandum Circular (RMC) No otherwise known as the RMC for Freight Forwarders last June 25, 2006 by then BIR Commissioner Jose Mario Buñag, Freight Forwarders are allowed to declare a presumptive 5% commission for VAT & EWT purposes. This protects the Freight Forwarder in declaring its actual income earned per shipment which will give way to forum shopping on the part of the client if the ACTUAL income will be shown on its billings. The Freight Forwarders are just required to submit a reconciliation report to the Bureau of Internal Revenue declaring its actual income earned and will only be liable for taxes due thereon. Documentation requirements were also clarified on the said RMC for the protection of the Freight Forwarders and the clients. This RMC greatly helped the Freight Forwarding Industry in the Philippines as the cost of exporting/importing goods in the Philippines is now competitive in the world market. With this new ruling, the Freight Forwarders and the Shippers/Consignees are now properly guided thereby avoiding multiple taxation, tax exposure & harassment and created an open business atmosphere that encourages correct tax reporting & efficient tax collection.