DTI eyeing law, EO on regulation of international shipping rates

MANILA, Philippines — The Department of Trade and Industry (DTI) would consult with Malacañang anew on the possible issuance of an executive order (EO) that would regulate international shipping rates.

DTI Secretary Ramon Lopez said the executive order could be an immediate remedy to address high shipping costs in the wake of the ongoing coronavirus disease 2019 (COVID-19) pandemic.

“Ang kailangan po talaga dito, base sa pagaaral ng lawyers din at marami tayong kinonsulta dito, ay ang kailangan po ay isang bagong batas that will really identify sinong ahensya ang magko-cover, magre-regulate ng international shipping rates,” Lopez said in an interview on dzMM on Friday.

(What we really need is a law, based on our consultation with lawyers and experts, what we need is a law identifying the government agency that would regulate international shipping rates).

“Kaya ang next move po natin, meron na tayong drinaft na bill para ho ibigay sa concerned congressmen at saka senators patungkol dito sa international shipping rates,” he added.

(We drafted a bill to be forwarded to concerned congressmen and senators regarding international shipping rates).

But in lieu of a law, Lopez said an executive order from the President could be issued for now.

Last year, the DTI eyed issuing a Joint Administrative Order on the regulation of local fees charged by foreign shipping lines but later on decided on asking the President to issue an executive order to address the matter.

“Tinanong na rin ho natin yan (issuance of EO), baka rin ho may mga legal questions but kokunsulathin ulit natin si (Executive Secretary Salvador Medialdea) or ang (Office of the President) para ito siguro yung pang-immediate bago lumabas yung batas,” Lopez went on.

(We already asked them about the issuance of an EO but there were legal questions raised but we will consult with Executive Secretary Salvador Medialdea or the Office of the President so that this can be an immediate remedy until a law has been enacted).

Earlier, Speaker Alan Peter Cayetano said the House of Representatives will work with the DTI on the bill seeking to lower shipping costs.

The draft bill that the DTI would submit will be reconciled with pending bills in the House of Representatives.

House Bill No. 4316 filed by Bagong Henerasyon party-list Rep. Bernadette Herrera-Dy, is aimed at standardizing local shipping charges at both the origin and destination imposed by international shipping firms.

“Excessive and unnecessary fee, charges and subcharges imposed as origin and destination charges as well as unconscionable fees imposed on the management of empty containers by international shipping lines…undermines he country’s competitiveness” the bill’s explanatory note said.

Some of these charges include terminal handling cost, container imbalance cost, import release fee, demurrage and detention charges, among others.

Meanwhile, House Bill 4462, filed by Ang Probinsyano Partylist Rep. Ronnie Ong, mandates the Maritime Industry Authority (MARINA) to promote fair and transparent destination fees and other shipping charges among freight forwarders and agents of international shipping lines.

GSG