Shipping industry liberalization gains broad support

Representatives from government and industry have expressed support to a proposed bill that would allow non-Philippine-flagged carriers to load and unload international cargoes at multiple ports as long as this does not clash with existing maritime policies.

But the representatives from the shipping sector cited the need to first address restrictions posed by the cabotage law and the Philippine Constitution.

In a recent meeting chaired by Representative Romero Quimbo, only domestic carriers represented by the Philippine Inter-island Shipping Association (PISA) expressed opposition, saying the bill puts local operators at a disadvantage against foreign shipping lines.

Under the cabotage law, domestic coastal shipping service can only be provided by domestic carriers.

Trade and Industry Secretary Gregory Domingo believes the bill will help lower shipping costs, liberalize coastwise trade, improve the country's logistics performance and align the country with the plan for a single shipping market within the Association of Southeast Asian Nations (ASEAN).

Domingo urged an examination of issues surrounding liberalization of the maritime sector, not just the cabotage law but also those on the state of port infrastructure and on concerns in the supply chain.

Cabinet Secretary Jose Rene Almendras agreed with Domingo's statements and asked that the Bureau of Customs ( BOC) not to require pre- clearance before permitting foreign ships to go port to port domestically, saying this will greatly enhance maritime efficiency and facilitate ship movements.

The BOC, represented by Rupert Bustamante, deputy collector for operations at the Manila International Container Port, has expressed support to the draft House Bill No. 5222 of Representative Jesulito Manalo, entitled "An Act Exempting the Carriage of Container Vans from the Provisions of Section 1009 of Presidential Decree No. 1464, Otherwise Known as the Tariff and Customs Code of 1978."

Henry Basilio, former member of the Export Development Council Committee on Transportation, said the EDC supports the statements of both Domingo and Almendras as well as the proposed bill of Manalo pitching for a modification of the cabotage law.

He also suggested two ways to resolve the conflict with cabotage. One is to amend Section 1309 of the current draft bill on the Customs Modernization and Tariff Act (CMTA) and the other is to amend Section 1009 of the Tariff and Customs Code of the Philippines (TCCP).