MANILA, Philippines–The Philippine Chamber of Commerce and Industry is seeking the repeal a new Bureau of Customs (BOC) policy which, it said, would not only hamper trade facilitation and dampen the competitiveness of local exporters, but could also further increase the cost of doing business in the country.
The country’s largest business organization was referring to the new BOC policy which requires its personnel to be present during the loading schedules of exporters, PCCI president Alfredo M. Yao said in a statement issued Friday.
“There are not enough Customs personnel to certify every loading [activity] nationwide. The shortage of Customs staff is a reason for the mandatory X-ray inspection and for the Customs prerogative to open containers on suspicion of misdeclarations,” Yao explained.
Having to wait for an available Customs personnel, especially during nighttime, holidays and weekends, may result in delays in the shipments of exporters, which may be further worsened by the continued congestion at the Port of Manila.
Yao pointed out that such a scenario is expected to bring about additional costs in various forms, such as additional rent for the use of warehouses while waiting for the BOC staff, as well as extra charges for trucks.
For heavier items such as furniture and marble tiles, loading a container to be witnessed by a Customs staff can take about five days.
“This BOC policy exposes our exporters to penalties of as much as 10 percent on the first day of delayed shipments. Worse, our exporters lose the next sale because buyers prefer to order from reliable suppliers,” Yao said.
“Small exporters have not factored in the costs of this new Customs policy in their export contracts. The costs of this new policy are not in quotations negotiated six or nine months before,” he added.
Yao was quick to note, however, that they appreciate the intention behind the said policy, which was aimed at establishing the legitimacy of exporters as part of the risk management system being developed for exports.
But there is a need for a further study of the procedures and implementation to ensure that it will support the objectives of trade facilitation and export competitiveness, especially that of small and medium enterprises.
“Let’s help our small and medium exporters compete. Their competitors in Asean countries don’t have that policy. Our exporters pay for additional costs of the transport, accommodations and meals of Customs staff,” Yao said.