TRADE DEPARTMENT EXPECTS TO RELEASE UPDATED RULES ON FREIGHT FORWARDING WITHIN THIS MONTH
The Department of Trade and Industry (DTI) is planning to release within this month its revised rules on freight forwarding, which will introduce major changes such as shorter registration processing and less documentary requirements.
Trade Assistant Secretary Mary Jean Pacheco during a recent interview with reporters gave this timetable, a release window which will mark almost five months since the final public consultation was held last December.
“To be honest, the final draft is already with me. But there are some things that we need to review,” Pacheco said, adding that some tweaks were still needed on the provisions concerning insurance.
The revised rules are meant to replace the 19-year-old Administrative
Order No. 6-2005, which contains the rules and guidelines on sea freight forwarding, issued by the now defunct Philippine Shippers Bureau.
Pacheco earlier said the number of required documents that sea freight forwarders need to submit during the registration will be cut down from 22 to just five.
The changes will also mean shorter processing time, cutlion ting the turnaround time from three days to just one.
Another major change seen under the new rules is on the required paid-up capital for firms looking to register.
The DTI plans to raise the paid-up capital requirement for nonvessel operating common carriers (NVOCCs) from P4 million to P5 million, from P2 million to P3 million for international freight forwarders, and from P250,000 to P1 mil@AldenMonzonINQ for domestic freight forwarders.
To date, there are around 800 sea freight forwarding companies in the Philippines, a number which has since grown fourfold from just 200 around 20 years ago.
The DTI implements an accreditation scheme for these enterprises to ensure the legality of their business, as well as to safeguard the welfare of local shipping companies.