Exporters air their concern over Customs proposal

MANILA, Philippines–The Export Development Council (EDC) recently aired their concern over a proposal to implement a Load Port Survey (LPS) for all cargoes, saying that the move would result in “delays, higher costs, forgone business opportunities and reduced competitiveness.”

Citing the contents of a position paper submitted to Finance Secretary Cesar V. Purisima, the EDC said in a statement that it would seek to amend the proposed Customs Administrative Order (CAO) on the LPS requirement and advanced import clearance system for bulk, break-bulk, containerized and other non-containerized cargoes.

EDC executive director Senen M. Perlada said in a phone interview that an expanded coverage of the LPS would only add to the cost of doing business in the country.

The best way to go about this, Perlada said, is to make it voluntary. This means only those who want to be exempted from physical and X-ray inspection at the time of arrival of importation may avail of it.

EDC also questioned the legality of the Customs order.

“A mere CAO cannot amend the provisions of an existing Administrative Order which is issued by the President of the Philippines,” it said. “Further, the (Customs) commissioner will exceed his authority by issuing regulation that requires destination inspection by the accredited cargo surveying companies in certain cases, thereby limiting the powers of Customs officers to examine and assess imported articles.”

Last month, the Federation of Philippine Industries urged the government to shoulder the additional costs of implementing a pre-shipment inspection for cargoes to prevent any increase in the costs of the goods being imported.

In a May 8 letter to Customs Commissioner John P. Sevilla, the FPI said it was not against the government plan to implement an advanced import clearance system for bulk, break bulk, containerized and other non-containerized cargoes. It pointed out that most industries considered the government plan essential in curbing technical smuggling.

But it said the government must pay the corresponding fees, because it would be “absurd” for the importers to shoulder the costs of checking the shipments “since they already know [the details of the shipments] in the first place.”–Amy R. Remo