The House Committee on Transportation on Friday, April 30, moved strongly to push for the immediate passage of a bill that would put an end to excessive and unjustified imposition of destination and shipping charges by forwarders and agents of international shipping lines.
In a virtual committee hearing on Friday, committee chairman and Samar Rep. Edgar Mary S. Sarmiento vowed to push for the immediate approval of a consolidated version of House Bills Nos. 4316 and 4462 filed by Deputy Speaker and Bagong Henerasyon Partrylist Rey. Bernadette Herrera and Ronnie L. Ong of Ang Probinsyano Partylist.
Herrera and Ong noted that the collection of excessive and unnecessary fees, charges and surcharges has been going on for quite some time that Philippines has topped its neighbors for having the highest cost to the detriment of domestic manufacturers, exporters and importers.
The two lawmakers said government has also become a victim of these nefarious practices by international shipping lines and their agents because their acts impair government’s collection of correct taxes.
Sarmiento immediately called for the creation of a technical working group to come up with a consolidated bill as soon as possible.
“Everybody is in agreement that we need a law that will address these issues. There seems to be an urgency for the approval of the two House measures; all government agencies present clearly are of the opinion that they favor the measure,” he said.
He was referring to the Department of Transportation and Communications, Department of Justice, Philippine Ports Authority, Bureau of Customs, Maritime Industry Authority, National Economic Development Authority and the newly-created Shippers Protection Office.
Private organizations and groups such as the Royal Cargo headed by Michael Raeuver and Supply Chain Management Association of the Philippines represented by Director Corazon Curay also backed approval into law.
Aside from the excessive fees demanded by agents of shipping lines and forwarders, Ong said the long delay in the return of deposits has become a practice that is grossly unfair those affected. He disclosed that it takes as long as over a year for certain shipping lines to refund deposits.
Patrick Ronas, president of the Association of International Shipping Lines, said members of the organization have agreed to refund the deposits within a period of 15 days. However, the AISL admitted that some of its members have failed to observe this.
Raeuver said he was surprised that only a handful importers and exporters have filed complaints against abusive practices of shipping lines.
“But what caught my attention is that it is only the shippers that are allowed to complain. If is not the shippers who are the victims here, but the consignees,” he pointed out.
“If is the shippers abroad that connive with shipping lines, that fact should be considered,” Raeuver stated.
Herrera’s bill provides for a standardized application of local charges imposed by international shipping lines.
On the other hand, Ong batted for a fair and transparent imposition of destination and other shipping charges.