Exporters oppose pre-shipment inspection plan

Local exporters warned that the proposal to revive pre-shipment inspection (PIS) or the proposed advanced cargo clearance system for Philippine-bound shipments may only result in unnecessary delays in the arrival of goods and additional costs on importers.

Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation Inc., (Philexport) raised such concerns amid growing calls for the inclusion of the PIS in the proposed Customs Modernization and Tariff Act. The PIS is supposed to eliminate x-ray and other inspections at the port of destination if already done at the port of loading.

“In the context of the ports in Manila, the disadvantage multiplies, in that importers will also have to suffer from delays and extra costs due to traffic, demurrage and trucking. The cost, if ever, should not be more than that of the x-ray inspection fee which is being replaced by the PIS,” Ortiz-Luis said in a statement.

What is also worrisome, according to Ortiz-Luis, is the fact that the PIS is no longer used in developed countries.

“This gives us a signal that this is no longer best practice and casts doubts on the willingness of our country-suppliers to install the facilities and equipment to handle our requirement for PIS,” Ortiz-Luis added.

The Philexport head further said the PIS policy could be implemented on a voluntary basis “as the importer sees it fit for his operations and competitiveness.”

For its part, the Port Users Confederation Inc. (PUC) believed that the proposed program on PSI was a revenue or tax measure without legislative authorization.

“The penalties imposable are not authorized by any statute. The exemption lists violate the equal protection clause,” the group added.

Last year, the Philippine Chamber of Commerce and Industry (PCCI) warned against the dire consequences of the proposed advanced cargo clearance system as this may become another burden to legitimate businesses in the country.

PCCI president Alfredo M. Yao earlier explained that while the clearance system was intended toward trade facilitation, there were a number of issues that had yet to be addressed by the government.