THE Department of Finance (DoF) said it could get a joint administrative order (JAO) signed next week once it confirms that the agencies consulted propose no significant changes, paving the way for measures to ease port congestion to be in place by the time cargo volumes build up for the year-end holidays.
Finance Undersecretary Rolando T. Ligon, Jr. said that agencies were given until the end of the week to submit comments on the JAO.
“Kasi ang binigay namin na deadline sa kanila this week, so kung wala naman comment na substantial (We gave them until this week, so if they get no substantial comment) then we can all sign it by next week,” he told reporters on the sidelines of the SGV Tax Symposium on Monday.
The JAO seeks to address yard utilization and improve transparency in cargo-handling charges by customs third parties and other logistics providers.
It will be jointly issued by the DoF, the Department of Trade and Industry (DTI), the Department of Transportation, the Bureau of Customs (BoC), the Bureau of Internal Revenue, the Philippine Ports Authority, the Maritime Industry Authority, and the Philippine Competition Commission.
Mr. Ligon said that the DoF has itself signed the JAO.
“That was two weeks ago, we are waiting for their comments so that it can be enforced,” he said. “We drafted it together with BoC, that is why it is okay for us in principle.”
He said that the goal is to fast-track its implementation as cargo volumes are expected to surge towards the end of the year.
“We are trying to fast track it. Definitely we will implement it soon,” he added.
Customs Commissioner Ariel F. Nepomuceno said that although collections remain on track, the ports continue to face congestion.
“The challenge right now is congestion… (That is why) we are anticipating the formal approval of the JAO by all the secretaries,” he told reporters on the sidelines of the same event.
He said that its implementation has been delayed as the DoF sought stakeholder input during its formulation.
“They tried not to sacrifice substantial inputs from the other stakeholders,” he added.
Once in place, he said the JAO will help prevent “temporary setbacks,” noting a decline in collections due to non-filing by some customs brokers in early October.
“If you use that as a simulation of what would happen if there’s congestion, there will really be delays in processing… (which will have an impact on) logistics costs,” he added.
He cited a shortage of container yards, the country’s heavy reliance on imports, and a lack of transparency in charges imposed by shipping lines as behind the congestion in the ports.
As of 7 a.m. on Wednesday, the BoC’s Port of Manila office reported an overall yard utilization rate of 73%. — Ashley Erika O. Jose