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Thursday, March 23, 2006
New law causes clash bet. brokers, exporters
By Elias o. baquero Aurelia l. Castro
Sun.Star Staff Reporters
A debate ensued between customs brokers and exporters in a consultation meeting on Republic Act (RA) 9280 or the Customs Brokers Act of 2004.
Customs brokers were happy about the implementation of the law, but exporters fear it will only cause unemployment and raise the cost of doing business.
District Collector Ma. Lourdes Mangaoang of the Bureau of Customs (BOC) Port of Cebu called for the meeting to discuss the implementation of RA 9280.
The law provides that only licensed brokers can “file import duties,” a condition that is seen to professionalize the customs broker profession.
Jobs at risk
But Porferio Montesclaros of the Mactan Export Processing Zone Chamber of Exporters and Manufacturers expressed concern for the employees of forwarding companies and manufacturing firms who might lose their jobs if customs brokers will take over their functions.
He said Section 6 of RA 9280 states that services of a customs broker includes, among others, consultation on matters relating to tariff and customs laws, preparation of customs requisite documents for import and export, declaration of customs duties and taxes and preparing, signing, lodging and processing of import and export entries.
“It’s practically everything — these are the things that we used to do. Our clerks will be constrained by this law. It will cause unemployment of so many people,” he said.
Fixers
However, Ricky Gantu-angco of the Professional Customs Brokers’ Association of the Philippines Inc. reminded the exporters that RA 9280 is aimed to get rid of fixers and forwarders.
“These people who are working with forwarders can apply with customs brokers and we can hire them as customs representatives. Under the law, only customs brokers are allowed to hire personeros or customs representatives because importers and exporters cannot delegate processing of import/export documents to their employees,” he said.
There are currently 150 licensed brokers in Cebu.
Under the Tariff and Customs Code of the Philippines prior to RA 9280, importers were also allowed the same function, Gantuangco said.
“Brokers have been waiting for this but, sad to say, there had been opposition to the law due to some misconception, miscommunication and misunderstanding,” he added.
Not allowed
RA 9280 was enacted in 2004 but took effect only last Tuesday, a year after its implementing rules and regulations were approved.
Mangaoang said once RA 9280 will be fully implemented, forwarders will no longer be allowed to process documents related to import and export of goods.
Allan Suarez, president of the Confederation of Philippine Exporters Foundation (Cebu) Inc., on the other hand, said exporters fully support the thrust of eliminating fixers and profe-ssionalizing the customs brokers’ profession.
He said, though, that the group needs clarification on the provisions that create “misconception and misunderstanding.”
The exporters want lesser cost of doing business, particularly in export, as the industry strives to be competitive and do its share in building the country’s economy, he said.
“The industry brought to Cebu in 2004 about P4.2 billion and about P4.7 billion last year, that’s about 10 percent of our GNP. We are trying our best to increase that,” he said.
He said exchange rates, the ban of abaca, the 70-percent cap on input tax and most of all, stiff competition, are among the exporters’ challenges.
“With (all) that, we look for ways and means to minimize cost,” he said.
Issues
Mangaoang, for her part, identified four main issues that need to be discussed by customs brokers and exporters.
These are the export firms’ clerks who will lose their jobs as a result of the implementation of the law, release of imported goods even without the knowledge of brokers, signing of export documents and the broker’s rates.
“I remind brokers that exporters are the backbone of our economy. If they will incur losses, they may close shop and the brokers will lose clients and income,” Mangaoang said.
Suarez said brokers should not collect high fees because in export, there is no novelty or value-added service.
Electronic system
In the same meeting, Montesclaros also pointed out that exporters have a fast and efficient electronic system of export entry filing, which allows the transaction to be completed in 30 minutes.
If brokers take over and without such system, the transaction might take more time, he said.
But Gantuangco said the automation technology can be transferred to brokers.
“Some brokers are doing automated processing of entry. Customs brokers are called experts on tariff and customs laws, otherwise we will not pass the board examination,” he said.
Meanwhile, Mangaoang advised brokers and exporters to defer discussion of issues concerning the Philippine Export Processing Zone Authority (Peza) because the agency has a different computer system.
“I think Customs and Peza must again discuss how to harmonize their computer system with the new Customs Brokers Act,” she said.
For Bisaya stories from Cebu. Click here. (March 23, 2006 issue)
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