ID-100240803The Philippine Department of Transportation and Communications (DOTC) has at last signed the long-awaited memorandum of agreement (MOA) that will transfer the oversight of sea freight forwarders from the Department of Trade and Industry (DTI) to the Maritime Industry Authority (Marina).

Transport Secretary Joseph Emilio Abaya in a text message to PortCalls said he has signed the MOA, a copy of which had been forwarded to DTI’s legal team for review. The MOA is now awaiting the signature of Trade Secretary Adrian Cristobal, Jr.

When approved, the pact will formalize the transfer of accreditation functions over sea freight forwarders from DTI to Marina.

Earlier, Marina Overseas Shipping Service head Atty. Jean Ver Pia affirmed that the maritime authority is “in full support of the transfer.”

Pia noted that in 2014 Marina had already drafted an executive order (EO) to replace EO 514, which was signed in 1992 and which converted the Philippine Shippers’ Council into the Philippine Shippers’ Bureau (PSB).

When DTI implemented its rationalization plan in 2014, PSB’s functions, including the accreditation of sea freight forwarders, were turned over to the Fair Trade Enforcement Bureau of the trade body.

For years, sea freight forwarders have pushed for the transfer of their accreditation from DTI to DOTC, pointing out that the latter already oversees all other transport operators.

Moreover, under the Association of Southeast Asian Nations (ASEAN) Framework Agreement on Multimodal Transport (AFAMT), member countries need to create their respective certifying bodies for multimodal transport operators or MTOs (freight forwarders offering more than one mode of transport service), a prerequisite for these operators to operate in other ASEAN nations. The fact that sea freight forwarders were under DTI and air freight forwarders were under DOTC was a hindrance in the set up of the certifying body in the Philippines.

Signed by the DOTC in 2005, the AFAMT has yet to be implemented in the Philippines. Other ASEAN member countries have already enacted laws recognizing MTOs within the region.  – Roumina Pablo

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