EU not keen on Customs pre-shipment inspection amid port congestion

MANILA, Philippines—A European Union ambassador on Thursday said the government should think twice before implementing pre-shipment inspections or port load surveys, which goes against moves to decongest ports.

“Pre-inspection is something that is not going towards trade facilitation,” Ambassador Guy Ledoux, head of the EU delegation to the Philippines, told INQUIRER.net at the sidelines of the 40th Philippine Business Conference and Expo in Manila.

Early this year, the Bureau of Customs announced plans to implement pre-inspection on all imports to curb smuggling.

But Ledoux, who was among the resource persons at the trade facilitation and custom modernization forum, said it will only result in additional costs of the shipping company.

Bureau of Customs (BOC) building. INQUIRER FILE PHOTO

“At the end of the day, who pays for these prices (costs)? The consumer? Because it is added cost, transferred from the company or trader to the consumer,” he pointed out.

He said it would also result in additional delays due to more administrative papers and processes.

“So we don’t think this is the best way to reduce the time of custom procedures,” he said.

In his speech at the forum, Ledoux said the plan goes “against the spirit of the (World Trade Agreement) Trade Facilitation Agreement.”

“While I understand the reasons behind introducing PSI, alternatives should be explored that could help with some of the necessary reforms in customs and ease the port congestion,” he said, adding that the EU is open to dialogue.

The ambassador said inspection could be done on a random basis instead of being imposed on all containers. He also suggested that Customs classify shipping companies.

“There are shipping companies that are efficient, that are always respecting the rules and regulations,” he said.

Ledoux suggested that reliable shipping companies undergo accelerated procedures while new ones that are less well known undergo the full inspection process.

While he said that the EU is just as affected as other countries or regions, Ledoux explained that they are the largest trading partner of the Philippines.

“The EU is the largest foreign investor in the Philippines, already providing jobs to more than 400,000 workers,” he said.

The Philippine Chamber of Commerce and Industry (PCCI), which organized the event, has earlier expressed opposition to the pre-shipment inspection of container cargo.

PH improvements

On the other hand, Ledoux said the Philippines and the EU are on track in terms of their improved relations.

He said the anticipated passage of a Customs Modernization Act will help contribute to the two partners’ trading relations.

Ledoux said he was hopeful with Customs Commissioner John Philip Sevilla’s promise that the bureau will be able to reduce customs procedures to just four hours after one year.

Asked about the reports of corruption in the Bureau of Customs, he said the foreign community is more interested in “general trends.”

“We have seen an improvement, a reduction of perception of corruption in the Philippines in the last three or four years,” he said. “This is very encouraging, to see this progressive reduction of corruption.”