Aircargo Forwarders of the Philippines, Inc. PHILIPPINES. Country Report Year 2012 FEDERATION OF ASIA-PACIFIC AIRCARGO ASSOCIATION (FAPAA)

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1 Aircargo Forwarders of the Philippines, Inc. PHILIPPINES Country Report Year th Executive Council Meeting of the FEDERATION OF ASIA-PACIFIC AIRCARGO ASSOCIATION (FAPAA) In Colombo, Sri Lanka June 07 09, 2013

2 Page 2 AFPI ADDRESS 2/F Rm. 225 Building B, Sky Freight Building NAIA Avenue, Barangay Sto. Niño Paranaque City Executive Department Contact Person: Address: Ms. Arlene R. Parguian Secretary General secretary_general@afpi.org.ph Training Department Contact Person: Address: Mr. Rodolfo Pandes Training Coordinator training_admin@afpi.org.ph Contact Nos. Tel No: (632) / (632) Fax No: (632)

3 Page 3 Board of Directors and Officers and the Committees/Committee Chairperson ( ) Chairman Emeritus Chairman President Mr Jaime Roxas Mr. Michael Aquino Mr Dexter Yu 1 st Vice President Ms Marilyn Alberto 2 nd Vice President Mr Chris Coching Secretary Treasurer Auditor P.R.O Sergeant at-arms Ms. Ma. Antoinette Reyes Mr Gregg Sebastian Ms. Doris Torres Mr Erich Lingad Mr Arnold Brizuela Directors Mr. Jerry Jara Ms. Josefina Yap Ms. Ma. Victoria Geniza Legal Director: Atty. Artemio Tuazon Jr. Committees/Committee Chairperson Overall AFPI Management Chairman Government Affairs & Airlines Affair Finance Training and Education Membership Ethics & Standards Communications Ways & Means Sports & Fellowship Events Advocacy and Social Action Legal Affairs Dexter Yu Marilyn C. Alberto Gregg Sebastian Ma. Antoinette Reyes Erich Lingad Josefina Yap Doris Torres Chris Coching Jerry Jara Cheng Geniza Arnold Brizuela Atty. Artemio Tuazon Jr.

4 Page 4 THEME (AFPI ) Strengthening Tomorrow, Today MISSION Leading the Air Cargo Logistics Industry in enhancing its Global competency, competitiveness and Social Responsiveness VISION The most Responsive, Professional, Progressive, Purpose-Driven Logistics Association AFPI as the only National Aircargo Association The Aircargo Forwarders of the Philippines, Inc. was incorporated in It is the only Aircargo Association that the Civil Aeronautics Board (CAB) recognizes and endorses. OBJECTIVES To encourage cooperation, strengthen camaraderie among its members To provide activity that will boost global competitiveness To promote professional development To advocate and uphold corporate governance and business ethics To address promptly the issues and concerns of the industry

5 Page 5 MEMBERSHIP At the time of information, AFPI had 11 members. As of today, membership has grown Into 147 members companies The governing body of this association consists of eleven (11) elected Directors, and from among them, they elect the Executive Officers which are the President, 1 st Vice President, 2 nd Vice President, Secretary, Treasurer, Press Relation Officer, Sergeant at arms and four (4 ) other Directors. Election is held once every two years. Hence, the Board of Directors have a term of two (2) years. The AFPI believes in a program of succession to ensure continuity of the programs and projects of the previous Board of Directors. The immediate past President is automatically designated as the Chairman of the Board, and he lends experience, expertise and assistance to the Board and the Officers of the Association. The immediate past Chairman of the Board is automatically designated as Chairman Emeritus. The 1 st Vice President will then assume the position of President in the succeeding term of Officers. The governing body of the association is composed of the officers from both local and multinational logistics companies. This helps in promoting fairness and harmony in the freight forwarding industry.

6 Page 6 PROJECTS / ACTIVITIES Since its formation 33 years ago, AFPI has effected positive changes in the airfreight Industry, including the following: Helps promote and facilitate regional and international trade. Provides a chain of logistics support to its members like warehousing,customs clearance, door-to-door delivery, chartering, conference, information technology And affiliation with international bodies and organizations involved in air transportations AFPI Training & Development Center Maintains a training and Development Center, organized to provide the personnel of all member companies of AFPI with training and development programs / services. Provides a forum wherein industry issues are discussed and formalized into position papers / memoranda / letters to government agencies (airport authority) /Civil Aeronautics Board / Terminal Operators / Department of Transportation and Communications, Bureau of Customs, Bureau of Internal Revenue, etc. and other or non-governmental organizations such as the Global Cargo Carriers Inc. (GCCI). Organizes / liaises with other associations / organizations for socio economic activities. Projects: Foster camaraderie among members companies by having sports activities (including golf tournaments), Christmas parties, etc. The Presidents and Partners Night recognizing all the AFPI Presidents and Industry Partners (airlines, service providers, government agencies, etc.) Advocacy/Social Work for education, typhoon victims, handicaps, etc.

7 Page 7 MEMBERSHIP IN INTERNATIONAL ORGANIZATIONS Federation of Asia- Pacific Aircargo Association (FAPAA) The International Federation of Freight Forwarders Association (FIATA) ASEAN Federation of Forwarders Association (AFFA) Membership and Alliances National Associations United Port Users Confederation (UPC) Philippine International Seafreight Forwarders of the Phils,. Inc (PISFA) Federation of Accredited Customs Brokers and Forwarders of the Phils., Inc.(FACFOB) Ecozone Federation of Forwarders / Brokers and Truckers, Phils. (EFFORT,Phils) Philippine Chamber of Commerce Industry Representing the Airfreight Industry with Various Government Agencies Department of Transportation and Communications Bureau of Customs Civil Aeronautics Board Philippine Economic Zone Authority Manila International Airport Authority Land Transportation Franchising & Regulatory Board Metro Manila Development Authority.

8 Page 8 RECENT ISSUES TACKLED PHILIPPINE NATIONAL SINGLE WINDOW (NSW) The Philippine National Single Window is a realization of the ASEAN agreement to establish an ASEAN Economic Community (AEC) by 2015 whose mission is to develop a single market and production base that is stable, prosperous and highly competitive and economically integrated with effective facilitation for trade and investment, thereby forming the ASEAN Single Window (ASW). The NSW is meant to ease Intra ASEAN trade through efficiencies in customs authorization processes. The system cuts the number of processes that an exporter or importer goes through when making a trade transaction. The Philippines is on track to get its (NSW) fully operational a year before 2015, the target year for the integration of customs and trade processes of the nine members of Association of Southeast Nations. The ASEAN Single Window web portal was recently launched, with which the country s NSW will interconnect by the time of the Regional integration. So far, the project implementation is on track, in time for the full implementation of the ASEAN Single Window. Phase One which entails the set-up and installation of network interconnections for all 40 government agencies and set-up and configuration of the NSW for nominated agencies have been completed. Bureau of Customs is now going into Phase 2 and target of completion is a year from now. AIR CARGO OR MAIL CARRIER operating into the Union from a Third Country Airport (ACC3) In October of 2010, 2 improvised explosive detectives (homemade bombs) were transported as air cargo consignments. Transhipment intermediate points for those consignments were airports located in North Africa and Europe at which the bombs were intercepted. Because of this incident, in 2011, The European Union (EU) adopted regulations for the security of incoming air cargo and mail. The rules require air carriers flying cargo and mail into the EU from non EU countries to ensure certain standards of security are met, prior to loading cargo and mail aboard aircraft bound for the EU. These rules apply since February 1, They apply to carriers, not to foreign states. However, in November 2012, the EU adopted revised regulations for the security of incoming air cargo and mail. These regulations allow more flexibility to air carriers to meet the second state of required security standards, which are to be applied by 2014 at the latest.

9 Page 9 The EU rules require any carrier transporting air cargo or mail to the EU to be designated by an EU Member State as in ACC3. To obtain ACC3 status, the carrier has to deliver a Declaration of Commitments concerning the fulfilment of their aviation security responsibilities to the civil aviation authorities of an EU Member State for every non-eu airport from which carriers cargo or mail into the EU. ACC3s must ensure that all cargo and mail carried to the EU is screened or comes from a secure supply chain. Until June , as a minimum, the standards of the International Civil Aviation Organization (ICAO) apply. Thereafter, specific minimum security controls must be applied which correspond to today s understanding how cargo can be secured. The EU will seek to have those controls adopted as ICAO global practice. From 1 July 2014, the EU additionally requires that ACC3s ensure that an on-site verification of its cargo and mail operations at the relevant non-eu airports has been carried out by an EU aviation security validator. Also, the business partners from whom the ACC3 receives cargo or mail at those airports located in non-eu countries need to be EU aviation security validated. IATA in coordination with our Association, AFPI will be holding a free seminar/workshop on ACCF3 this June Participants will be coming from freight forwarding industry and airlines. IATA e-awb and E-Freight Meetings with IATA was made last year in connection with e-awb and e-freight. However, ratification of MC99 is still being processed.