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PPA cuts export wharfage fees by half; other fees by shipping lines to be regulated |
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Monday, 24 August 2009 |
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Still reeling from double-digit decline in global sales, exporters got a
helping hand this week when the Philippine Ports Authority (PPA)
announced it is cutting by half the export wharfage fees it collects on
each container of export shipment until the end of December this
year.
The decision was relayed by PPA general manager Oscar M. Sevilla in a
letter responding to an appeal earlier made by Philippine Exporters
Confederation, Inc. (PHILEXPORT) President Sergio R. Ortiz-Luis seeking
for a cut in government charges on export shipments.
Savilla said that in its latest meeting, the PPA board of directors
“reconsidered the request of PHILEXPORT and has approved the reduction by
50 percent of the Export Wharfage Fee until December 31, 2009.
The decision will take effect, he added, 30 days upon the publication of
the implementing rules of the decision in a national daily newspaper.
According to a PPA source, the notice was published on August 14 and will
therefore be effective on September 13.
When the new rates will be in force, exporters are expected to cut
wharfage fee for a 20-foot container from P259.70 per container to
P130.35 and that for 40-foot containers at P952.22 to half of that
amount.
The issue on high port charges was repeatedly being raised by PHILEXPORT
as one of the factors that have contributed to the erosion of the
competitive advantages of Philippine products in comparison to similar
products from competitor nations.
A study made by an independent group had found that wharfage fees charged
by the government has already been small as part of the average of P1,500
per container that exporters have to shell out for every container that
they ship to destinations abroad.
The bulk of the local charges were traced to private shipping lines that
slapped so many fees to shippers that ranged from advanced deposits on
the use of containers, to port handling fees, to cleaning fees after the
containers are returned.
The unregulated imposition of allegedly “unnecessary” charges by shipping
lines plying international routes in our seas was brought to the
attention of PHILEXPORT and the Export Development Council (EDC) by
groups of exporters whose experiences jived with the result of the
independent research study.
In response, the Maritime Industry Authority (MARINA) has drafted an
executive order for approval by President Arroyo to put the international
shipping lines under its regulation as recommended by the EDC.
The draft order was forwarded by EDC executive director and concurrent
head of the Bureau of Export Trade Promotion Senen Perlada to DTI
Secretary Peter Favila for presidential decision.
Taking a stand on the regulation of domestic charges made by
international shipping lines, the PPA said it would be better for MARINA
to simply “supervise” not directly regulate, the fees they impose on
export shipments. -- Abe P. Belena,
PHILEXPORT News and Features
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