AIRCARGO FORWARDERS OF THE PHILS., INC (AFPI) Philippines. Country Report EXECUTIVE COUNCIL MEETING JAPAN April 2008

Transcription

1 AIRCARGO FORWARDERS OF THE PHILS., INC (AFPI) Philippines Country Report FOR THE th EXECUTIVE COUNCIL MEETING OF THE FEDERATION OF ASIA PACIFIC AIR CARGO ASSOCIATION (FAPAA) IN JAPAN April 2008

2 AFPI Address Aircargo Forwarders of the Philippines, Inc. Room 225 Skyfreight Building NAIA Avenue, Parañaque City Philippines Tel : or Fax : AFPI Secretariat secretary_general@afpi.org.ph Training & Development Center training@afpi.org.ph Contact Person: Marivic C. Domondon Secretary General

3 PHILIPPINE Country Report Page 3 of 12 ======================================================================= AFPI The Only National Air Cargo Association The AFPI was organized in The only organization that the Civil Aeronautics Board (CAB) has endorsed to the air freight forwarders. AFPI Membership At the time of formation, AFPI had 11 pioneer members. Today, AFPI has grown to 145 members. IATA MEMBERS IATA - 80 Non IATA - 65 AFPI Board of Directors and Officers 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 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, and like the Chairman of the Board, lends his experience, expertise and assistance to the Board and the Officers of the Association. The 1 st Vice President will then assume the position of President in the succeeding term of office.

4 Page 4 of 12 ======================================================================= AFPI Committees Internal Affairs Membership Finance Constitution & By-laws Ethics and Standards Training Legal Director External Affairs Government Affairs and Airlines Affairs Communications Ways & Means Secretary General Council of Past President AFPI Elected Officers & Directors Chairman Emeritus Mr. Eduardo representing Skyfreight Forwarders De Guzman Chairman Ms. Cynthia R. Tsui representing Asia Overseas Transport Co., Inc. President Mr. Jaime A. Roxas representing Jugro Transport International Phils., Inc. 1 st Vice President Mr. Roy A. Raralio representing ABX Pan Globe Logistics, Inc. 2 nd Vice President Ms. Rosemary N. Su representing UTI (Global Logistics) Inc.

5 Page 5 of 12 ====================================================================== Treasurer Mr. Gregg S. Sebastian representing Hankyu Int l Transport Phils., Inc. Secretary Ms. Antoinette Reyes representing Eagle Express lines Inc. P.R.O. Ms. Mariz Regis representing Airspeed Int l Corp. Sergeant-at-Arms Mr. Dominador De representing Sky land Brokerage Guzman Inc. Directors Ms. Ramon De Leon representing Pac-Atlantic Lines (Phils.), Inc. Mr. Dexter Yu representing All Transport Network Mr. Joey Tongson representing Agility Int l Logistics Inc. Mr. Leo Tagle representing Yusen Air & Sea Service Phils., Inc. Legal Director Atty. Romeo Sto Tomas AFPI OBJECTIVES: To encourage cooperation, strengthen camaraderie among its members. To provide activities that will boost Global competitiveness. To promote Professional Development. To advocate and up hold Corporate Governance and business ethics. To address promptly the issues and concerns of the industry.

6 Page 6 of 12 ======================================================================== AFPI MISSION: To provide the Aircargo Logistics Industry with Leadership and Direction in enhancing its competency and Global competitiveness. AFPI VISION: To be the most Professional, Progressive, Purpose Driven Logistics Association in Asia. Network In pursuance of its commitment to perform a strategic role in the airfreight industry, AFPI is working towards having a stronger voice in the nation s economic affairs. It is determined to achieve this through the expansion of its organization s membership list to include the airfreight forwarders in the major cities of the country. One of its successful endeavors in this direction is the organization of AFPI Cebu Chapter. AFPI Projects / Activities In its 28 th years of existence, 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, statistics forecast and market research, distribution, consolidation, conferences and exhibitions, information technology and affiliation with international bodies and organizations involved in air transportation. Maintains a Training and Development Center, organized to provide the personnel of all member companies of AFPI with training and development programs / services

7 Page 7 of 12 ======================================================================== 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 Trade or Non-Government Organizations such as the Global Cargo Carriers Inc. (GCCI). Organizes / Liaises with other associations / organizations for socio-economical projects. Foster camaraderie among member companies by having sports activities / Christmas parties, including golf tournaments / bowling tournaments. AFPI 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 Port Users Confederation (PUC) Philippine International Seafreight Forwarders Association, Inc. (PISFA) Federation of Accredited Customs Brokers and Forwarders of the Phils., Inc. (FACFOB) Chamber of Customs Brokers, Inc. (CCBI) Philippine Domestic Freight Forwarders Association (Phidoffa) Ecozone Federation of Forwarders/Brokers and Truckers, Phils. (EFFORT Phils.) Federation of Forwarders Associations in the Phils., Inc. (FEDFAP)

8 Page 8 of 12 ======================================================================== Representing the Airfreight Industry with various Government Agencies Department of Transportation and Communications Civil Aeronautics Administration Metro Manila Development Authority Philippine Economic Zone Authority Bureau of Customs AFPI TRAINING & DEVELOPMENT CENTER (Please see separate attached report) RECENT ISSUES TACKLED: THE 1 st NATIONAL CONFERENCE ON SAFE TRADE & AUTHORIZED ECONOMIC OPERATORS: International Security Initiatives and their Impact on Philippine Trade By 2010, all shipments from the Philippines and other countries to the United States will no longer be allowed entry unless they have been scanned 100% prior to their departures from their ports of origin. Similarly, the European Union and the other trading countries are setting up counterpart initiatives to likewise protect their borders from the threats of terrorism. To tackle the myriad of issues, concerns and questions regarding the implementation of such drastic measures, the Aircargo Forwarders of the Philippines, Inc (AFPI) in partnership with the World Customs Organization and Philippine Bureau of Customs is organizing an International Security Awareness Conference about WCO SAFE Framework of Standards as well as the concept of meaningful standards of the Authorized Economic Operator. The conference is

9 Page 9 of 12 ============================================================================= scheduled on May 13-14, 2008 at SMX Convention Center, Mall of Asia, Pasay City. Highlights of the conference include presentation by WCO on the directions since the adaptation of SAFE Framework of Standards last June Overview of country s AEO Programmes by resource speakers from U.S. Customs and Border Protection, European Union, China, Hongkong, Japan, Australia, Secured Trade Partnership of Singapore, CTPAT USA, TAPA and the presentation of the Philippine Bureau of Customs, its AEO model will be part of the conference. Since last quarter of 2007, the AFPI leadership headed by Chairperson Cynthia Tsui, President Jim A. Roxas, and legal counsel Atty. Romy Sto. Tomas initiated a series of dialogues with Deputy Commissioner Nicolas and Chief of International Affairs of BOC, Collector John Simon, pushing for a forum about the concept of Multilateral Institutions security framework of standards. Last March 7, 2008, AFPI Board had a courtesy call to Commissioner Morales and finally got the support and endorsement from the Bureau of Customs. According to AFPI Chairperson Cynthia Tsui, In the Federation of Asia-Pacific Aircargo Association (FAPAA) Executive Council meeting held last August 2007 in Hong Kong which AFPI attended, Air Cargo security including the adaptation of WCO AEO was one of the critical issues discussed. As an offshoot of the discussion, AFPI initiated talks with Deputy Commissioner Nicolas and Collector John Simon Chief of Int l Affairs for Philippine BOC in order to bring to the awareness of the Philippine trading community the various initiatives which will have a huge impact on the way we do global business. WCO SAFE Framework of Standards secures and facilitates the movement of global trade while Authorized Economic Operators (AEO) is defined in the SAFE Framework as a party involved in the international movement of goods in whatever functions that have been approved by or on behalf of a national customs administration in compliance with WCO or equivalent supply chain security standards. Authorized Economic Operators include inter alia manufacturers, importers, exporters, brokers, carriers, consolidators, ports, airports, terminal operators, integrated operators, warehouse and distributors.

10 Page 10 of 12 ============================================================================= AFPI as well as other stakeholders, being part of the complete supply chain cycle will benefit from this AFPI initiative conference. It will make us understand how this security framework of standards will secure, facilitate, integrate, enhance, promote and harmonize the supply chain cycle due to SAFE Framework tenet which is to create one set of international standards and to establish uniformity and predictability thus reducing multiple and complex reporting requirements AFPI recognizes its role for the BOC to achieve further on their BOC E2 Project, aside from their support to RKC Summits and supports the 2 nd Phase VASP project. This conference will help to shape the future Philippine Bureau of Customs systems and electronic governance in the country. REVISED KYOTO CONVENTION: As part of the Philippine Bureau of Customs commitment to reform and modernize its services along with the World Customs Organization Convention on the Simplification and Harmonization of Customs Procedures, otherwise known as the Revised Kyoto Convention (RKC), AFPI actively participated in the National Summit Conferences on the Philippine Accession to the RKC organized by Philippine Bureau of Customs last February 2007 and January AFPI was one of the signatories for the recommendation on the Adoption and Implementation of the National Strategy for the Accession to and Compliance with the RKC which was approved by Her Excellency Gloria Macapagal Arroyo. Endorsed by the Philippines Bureau of Customs Commissioner Napoleon Morales to Senate President Manuel B. Villar Jr. for Senate Ratification then for submission to the World Customs Organization after ratification. PHILIPPINE BUREAU OF CUSTOMS VASP: AFPI supports the implementation of the Philippine Bureau of Customs on the Trade and ecustoms Services through Value Added Service Provider (VASP) who are capable of providing trusted online services to importers, exporters, freight forwarders, Customs brokers, for paperless cross border trade globally.

11 Page 11 of 12 ============================================================================= VASP s through various phases shall implement the following programs; Import Entry Lodgement, Client Profile Registration, emanifest, epayment, Online Cargo release, Export Declaration, Surety Bond Management and raw Material Liquidation. One of the accredited VASPs, InterCommerce Network Services (INS) offered their add-on services to AFPI through their Regional e- Commerce alliance in Asia, PAN Asia Alliance-PAA. INS subscribers will benefit from uninterrupted cross-border trading and the convenience of working with the Alliance as a single point of contact. In addition to InterCommerce (INS), current PAA membership is composed of Tradelinks of Hongkong,Tade-Van of Chinese Taipei, Crimsonlogic of Singapore, KTNET of Korea, TEDI of Japan, Dagang NET of Malaysia, CAT Telecom PUBLIC Co. of Thailand and TradeGate of Australia. REPUBLIC ACT 9280 (The Customs Broker Act of 2004): Last year, we reported to you about a legislation that could be interpreted as limiting only to individual customs brokers the capability to interface with the Bureau of Customs relative to customs clearance activities. For years, these activities are being provided by professional customs brokers in the exercise of their professions, but at the same time, also by corporations with their affiliated customs broker professionals, in the exercise of their business. If the law would be implemented in the manner that the individual customs brokers want it, then the supply chain process would be segmented, and it is for this reason that AFPI has been fighting the implementation of the law and we have been successful that the Bureau of Customs has not taken any action to bar companies from transacting with them. We have also taken steps to have the law amended to make sure that the contentious provisions of the law cannot be interpreted as reserving the whole customs clearance process to single individuals. The amendment almost passed last year before the Congress went

12 Page 12 of 12 ============================================================================= into recess and the new elections took place, but for the failure by the House of Representatives to muster a quorum in the last 3 days of the session. Now, the bills by the Senate and the House amending the law have been re-filed, and we are continuously pushing for the hearings thereon to be conducted in order to finally pass the amendatory legislation. The House bills have passed the 3 rd and final reading, and it is hoped that the Senate bills will soon be calendared for public hearing so that the 1 st, 2 nd and 3 rd readings (which could take no longer than a couple of days) could be complied with, and thereby get to the stage where the different versions of the bills of the House and the Senate could be discussed in a Bicameral session to come up with a single version which will then be submitted to the President of the Philippines for her signature. By the way, the President has signified to both the Senate and the House that the amendment of the law is one of her priority measures, and thus there would no longer be any delay in her signing the joint bill once it is presented to her in order for the amendments to become part of the Amended Republic Act. CASS NEUTRAL AIRWAY BILL (NAWB): The AFPI has also filed a petition with our Civil Aeronautics Board (CAB) questioning the action by IATA requiring the mandatory use of the Neutral Airwaybill as Master Airwaybill. We contend that the standard practice before whereby airlines give the freight forwarders for free their master airbills should be continued the new system adds an additional financial burden to our members as IATA charges for their NAWBs since it is only IATA that has printed the required form. The filings of papers on this Petition has been completed and the CAB will soon be coming up with its decision as to whether or not the matter is under their jurisdiction, and if so, then hearings will continue on the arguments being propounded by both parties. If not, then AFPI will be constrained to seek a new venue for its complaint, possibly the regular courts.

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