The Philippine Port Authority’s (PPA) planned container tracking and registration system has garnered the second highest positive rating possible from the Anti-Red Tape Authority (Arta), hurdling a crucial piece of regulatory requirement needed for its implementation.
The Arta said on Wednesday that the final regulatory impact statement (RIS) conducted by the ports authority concerning its Trusted Operator Program-Container Registry Monitoring System (TOP-CRMS) garnered a 36 out of 40 in their scoring system, which is equivalent to a “good practice” rating.
“Best practice RIS is deemed to be an exemplary model in policymaking. A good practice RIS has elements where analysis or the process were not of exceptional quality and could have been improved. Meanwhile, a Satisfactory RIS indicates adequate performance but contains a number of shortcomings. Lastly, Insufficient RIS needs to be overhauled,” Arta said in a statement, offering an explanation to its rating system.
The antired tape government body categorizes these impact statements in four graduated ranks: best practice (40), good practice (30 to 39), satisfactory (24 to 29) and insufficient (8 to 23).
Red tape review
To recall, Arta asked the PPA earlier in February to submit a regulatory impact assessment of the TOP-CRMS as included in the port authority’s Administrative Order (AO) No. 04-2021.
Arta Secretary Ernesto Perez had said back then that it will serve as a basis in their assessment whether they will recommend its implementation or otherwise, following the widespread opposition from several business and stakeholder groups.
Sought for comment, PPA General Manager Jay Santiago sent the Inquirer a statement calling Arta’s positive assessment of the TOP-CRMS as a welcome development, expressing the measure was the best way to solve current problems in ports under its jurisdictions.
“[The] PPA will continue to fine-tune the program and the implementation of PPA AO No. 04-2021 and its implementing operational guidelines will be constantly monitored and the necessary adjustments to [it] will be done as necessary,” Santiago said in a statement.
“TOP-CRMS seeks to remove the payment of container deposits and to efficiently manage the return of empty containers. In fact, there have been a series of public consultations and we have adjusted based on the needs of the stakeholders,” Santiago said further.
Business groups opposed
In contrast, Association of International Shipping Lines (AISL) president Patrick Ronas told the Inquirer that the TOP-CRMS is everything that the Arta should oppose in accordance with its mandates under antired tape and ease of doing business laws.
“Needless to say, we are extremely disappointed with the decision. Arta failed to consider the consequential impact of this project on the industry and consumers,” Ronas said in a statement.
“No scientific validation of data was conducted which should have been done by seeking the comments of affected stakeholders,” added the AISL official.
Ronas’ industry group is among the seventeen different trade and stakeholder groups opposing the planned measure, reasoning that it will entail additional costs for them.
The Philippine Chamber of Commerce and Industry, the Philippine Exporters Confederation, and the Customs Brokers Federation of the Philippines, among others, are also opposing the move.
Santiago has repeatedly defended the necessity of the TOP-CRMS, citing that it will cut costs by eliminating the need for container deposits, as well as an effective way to curb cargo diversion, which are often used by smugglers.