Suspend mandatory weighing of containers, exporters urge

THE export industry stakeholders asked the Philippine Ports Authority (PPA) to suspend the mandatory weighing of export containers amid the ongoing development of a calibration system for weighing scales.

In a petition letter to PPA Vice Chairman Jay Daniel R. Santiago, the Philippine Exporters Confederation Inc. (Philexport) and Export Development Council (EDC) asked the agency to postpone the implementation of Administrative Order (AO) 02-2021, which provides the revised guidelines in mandatory weighing of the said containers.

The AO, which was enacted on June 16, covers all export containers passing through government ports under PPA’S administrative jurisdiction.

Both parties suggested that PPA coordinate with the Department of Trade and Industry (DTI) and the Department of Science and Technology (DOST) on facilitating the calibration of the weighing scales and bridges at the ports.

They also want to have a certification system put in place to prove the equipment has been officially calibrated, recommending the issuance of the certificate by the DTI or DOST.

The petition came after Philexport’s appeal last month, asking to suspend said policy until the results of the required calibration to ensure that weighing scales were not defective or deficient.

“We have been receiving complaints from our members mainly on the discrepancy in the declared container weights obtained using the exporter’s weighing scales, compared with the weights from the weigh bridges/scales of the port operators. This has led to many shut out fees (some containers of which were eventually loaded after paying the fees) and actual shut outs,” Philexport President Sergio Ortizluis explained.

“We expected that the PPA would have done due diligence to ensure that this challenge is addressed first prior to implementation. But the current situation shows otherwise, and the damages are piling up at the expense of our exporters,” he added.

Ortiz-luis said the concerns over mandatory weighing add to the burden of the exporters, including lack of vessel space and increased freight rates.

Meanwhile, Philexport also joined the call to postpone the 15.33-percent cargo-handling rate increase Manila North Harbour

Port Inc. (MNHPI).

Philexport Executive Vice President Senen Perlada said rate increase “should be postponed until the required Regulatory Impact Assessment to determine the regulatory burden of the proposal can be conducted.”

Ortiz-luis said that the proposed tariff hike will also be another concern for struggling micro, small and medium enterprises’ cost of doing business.

“We must anticipate that the rate increase will further diminish the country’s competitiveness, drive away investors and discard the efforts of government agencies and stakeholders to bolster ease of doing business in the country. Moreover, the added cost will ultimately be borne by the end consumers—the ordinary Filipino people, and our foreign buyers,” he added.

Earlier, the Supply Chain Management Association of the Philippines and EDC also appealed the proposed tariff hike by MNHPI. “We strongly recommend the postponement of the proposed rate increases of MNHPI to give ample time for struggling business to recovery from the pandemic-inflicted losses,” they said in a position paper sent to PPA last month.