afpi - FAPAA

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AIRCARGO FORWARDERS OF THE PHILIPPINES, INC.
(AFPI)
P H I L I P P I N E S
Country Report 2009
37 th Executive Council Meeting of the
FEDERATION OF ASIA-PACIFIC
AIRCARGO ASSOCIATION (FAPAA)
in
Singapore
04 – 05 June 2010
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AFPI ADDRESS
Room 225 Skyfreight Building, Ninoy Aquino Avenue,
Parañaque City, Philippines 1700
Tel. Nos.: (632) 853 – 0549 ; (632)853 – 7180
Fax No.: (632) 853 – 1745
Email Addresses:
AFPI Secretariat – secretary_general@afpi.org.ph
Training&Development Center–
training_admin@afpi.org.ph
Contact Person: Elmie Rose Daniel
Secretary General
Board of Directors and Officers and their Committee
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Officers & Directors (2008-2010)
Name
Freight Forwarding Company
Chairman Emeritus Ms. Cynthia R. Tsui Asia Overseas Transport Co., Inc.
Chairman Mr. Jaime A. Roxas Jugro Transport Int’l. Phils. Corp.
President Mr. Roy A. Raralio DSV Air & Sea Inc.
1 st Vice President Mr. Michael R. Aquino U-Freight Phils.
2 nd Vice President Mr. Gregg S. Sebastian Hankyu Hanshin Express Philippines Inc.
Secretary Ms. Tessa H. Santos UPS Delbros Int’l. express
Treasurer Mr. Nelson M. Mendoza Awards Cargo Agency Phils., Inc.
P.R.O. Mr. Leo M. Tagle Yusen Air& Sea Service Phils., Inc.
Sergeant-at-Arms Mr. Ed M. Miranda Scanwell Logistics (Phils.) Inc.
Directors Ms. Irene M. Tan Transmodal Int’l Inc.
Ms. Barbie B. Rivadeneira
Pacific Concord Container Lines
Mr. Angelito Alvarez Airfreight 2100
Mr. Dominador L. De Guzman
Sky Land Brokerage, Inc.
Committee
Internal Affairs
Chairman
• Membership Ms. Barbie B. Rivadeneira
• Finance Mr. Nelson M. Mendoza
• Articles and By Laws Atty. Agaton O. Uvero
• Ethics & Standards Mr. Gregg S. Sebastian
• Training and Education Mr. Jaime A. Roxas
External Affairs
Chairman
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• Government Affairs & Airline Affairs Ms. Cynthia R. Tsui
• Communications Ms. Tessa H. Diesmos
• Ways & Means Ms. Irene M. Tan
• Secretariat
• Council of Past Presidents
The governing body of the association is composed of officers from both local and
multinational logistics companies. This helps in promoting fairness, unity and harmony
in the freight forwarding industry.
PROJECTS / ACTIVITES
Since its formation 29 years ago, AFPI has effected positive changes in the airfreight
industry, including the following:
o Helps promote and facilitate regional and international trade
o Provides a chain of logistics support to its members like warehousing, customs
clearance, door-to-door delivery, chartering, conferences, information technology
and affiliation with international bodies and organizations involved in air
transportations
o Maintains a Training and Development Center, organized to provide the
personnel of all member companies of AFPI with training and development
programs / services
o 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-governmental organizations such as the Global Cargo Carriers
Inc. (GCCI).
o Organizes / Liaises with other associations / organizations for socio- economical
projects.
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o Foster camaraderie among member companies by having sports activities/
Christmas parties, including golf tournaments.
AFPI 30 TH Anniversary
Last 29 April 2010, the AFPI has commemorated its 30 th Foundation Anniversary. It was
deemed necessary by the AFPI Board and Officers to offer a Thanksgiving Mass for this
significant milestone of AFPI History. The event was graced also by some of the AFPI
Past Presidents.
Assumption of New AFPI President
For almost two (2) years of fruitful service being President of the association, Mr. Roy
Raralio, has tendered an immediate resignation late March 2010 due to company’s
policy on membership and participation in meetings of freight forwarding associations
specifically on the issue of Anti-Trust and Competition law.
In this light, as per stated on AFPI By-Laws “in the absence or incapacity of the
President for any cause, the First Vice President will automatically assume the
presidency.” In this case, Mr. Michael Aquino of U-Freight Philippines, Inc. being the
First Vice President has automatically become the new AFPI President.
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 (PISFA)
Federation of Accredited Customs Brokers and Forwarders of the Phils., Inc
(FACFOB)
Philippine Domestic Freight Forwarders Association (PhiDoFFA)
Ecozone Federation of Forwarders / Brokers and Truckers, Phils. (EFFORT,
Phils.)
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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
Recent Issues Tackled
The Philippines has considerably recovered from its economic crisis of 2009 and has
slowly been experiencing a strong growth.
The Aircargo Forwarders of the Philippines, Inc. (AFPI) has played an important role in
this success. It cooperates and coordinates closely with the various government
authorities in the drawing up of rules and regulations, serving to enhance logistics
expertise for the benefit of the industry.
As a non-stock, non-profit organization, AFPI since its formation (1980), has effected
positive changes in the airfreight industry and continuously helps promote and facilitate
regional and international trade. The association proactively aims to tackle the
difficulties of this current environment and diligently encourages its members to focus
more on boosting efficiency in delivering quality service to adapt to the current global
demand.
Philippine freight forwarders have expressed concerns on various issues in the industry
as economic slump continues upswing. With the initiatives of the association, AFPI
together with its members tackled the following issues.
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REVISED KYOTO CONVENTION (RKC)
The Revised Kyoto Convention (RKC) which is a legal instrument of the World Custom
Organization (WCO) that aims to simplify and harmonise existing international customs
procedures around the world has been one of the concern in which AFPI has
continuously supporting its cause.
While the Philippines has acceded to the RKC, changes to existing laws and regulations
needs to be implemented. With the new Congress opening on June 30, the association
will closely monitor and promote the proposed legislation to implement the RKC.
REPUBLIC ACT 9280 (THE CUSTOMS BROKERS ACT OF 2004)
Over the years, the AFPI had unceasingly supported the proposed amendment to
Republic Act 9280 (RA 9280) that will allow the freight forwarders and brokerage
houses to transact with the Bureau of Customs (BOC).
After President Gloria Macapagal-Arroyo signed last December 15, 2009 the act
amending RA 9280 or the Customs Brokers Act of 2004, the amendment now becomes
a law known as RA 9853 (Customs Brokerage Law) which allows corporations and
brokerage houses to offer customs brokerage services as long as they have a minimum
paid-up capital of P1 million and engage the services of at least one customs broker.
The Professional Regulatory Board for Customs Brokers (PRBCB) published last April
6, 2010 the rules and regulations implementing the provisions for RA 9853, which
amended certain sections of RA 9280. (Portcalls, 2010)
RA 9853 specifically amended sections 27 and 29 of RA 9280. The new Section 27
states the “Acts Constituting the Practice of Customs Broker Profession” which defines
who is considered in the practice of customs broker profession. This new rule also bar a
customs broker from entering into engagement with more than one corporation, and
prescribes a professional service contract between the broker and its clients.
The new law’s Section 29, “Admission to Professional Practice” which clearly states
that “the practice of customs broker is a professional service and engaging in this
business shall mean making representations in behalf of importer-clients in the BOC
and other government agencies, provided, that such corporations engaged in the
business of customs brokerage possessed a minimum paid up capital of P1 million
pesos before they are accredited by BOC.”
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The BOC has yet to issue new rules to implement the law and this early, customs
brokers are already lobbying for a version that would effectively dilute the law
ELECTRONIC-TO-MOBILE (E2M) CUSTOMS PROJECT
The e2m (electronic-to-mobile) Customs project aims to streamline the Bureau of
Customs (BOC) core processes, the import and export, as well as upgrading trade
facilitation between the Bureau of Customs and its stakeholders, including other
government agencies, “through the development and integration of various systems
allowing internet-enabled and later SMS-enabled, thus less face-to-face transactions, all
towards the realization of the National and ASEAN Single Windows.”
The electronic component of the integrated e2m Customs automated processes, is an
Internet-based technology that allows Customs officers and traders to handle most of
their transactions-- from Customs declarations to cargo manifests and transit
documents—via the Internet. This advancement includes electronic signatures to
provide government officials, specifically Customs administrators with new innovations
to make improvements in security, trade efficiency and fight against corruption.
The AFPI fully supports this big advancement in technology through the efforts of BOC.
The association took initiatives as far as providing information, awareness and
assistance to its members by conducting orientation seminars / briefings and forums
with invited speakers from Customs accredited value- added service providers (VASP)
to the issue on implementation of this new innovation of the Bureau of Customs.
The BOC has partially implemented the E2M system in airfreight industry last February
23, 2010.
To date, implementation problems continue to hound the new system particularly with
regard to the online submission of manifest information coming from NVOCCs and
forwarders. In particular, freight forwarders are objecting to the imposition of penalties
on late submission even if the same are due to causes outside the control of forwarders
and NVOCCs
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IATA Financial Criteria
The members of the AFPI have expressed concerns regarding the subject on Non-
Compliance to Financial Criteria. Some of the AFPI members have received a letter
from International Air Transport Association (IATA) Singapore last October 2009
requiring them to increase their paid up capital level and the settlement of the payment
is due December 1, 2009. This letter made reference to resolution 801 of the Cargo
Agent’s Handbook for Philippines.
The accredited IATA freight forwarders as well as AFPI member had doubts that the set
of criteria which IATA Singapore has provided, is unrealistic and compliance for such a
short notice is impossible to attain. The financial requirement that has been referred on
the letter were not adequately disseminated to the IATA cargo agents in the Philippines.
When increasing the paid-up capital takes a lengthy process and considering the
present global financial crisis, cargo agents were appalled because these may lead to
company’s closing shop due to capital deficiency.
The association had taken initiatives to clarify the matter, they had a dialogue with IATA
Philippines and representatives of the International Cargo Advisory Panel (ICAP) with
IATA Singapore to sort the matter prospectively.
The general sentiments of the AFPI members have been directed through a special
meeting conducted by the association. During the meeting it has been agreed that there
will be a unified petition from among the members, that is, to consider the request of
amending the financial criteria and extending or holding the deadline.
This industry issue has also been given top priority by the association, AFPI and IATA
Sin had continuously exchanged communications after IATA Sin assured the
association that they will conduct a thorough review of the financial criteria set forth.
After issuing a mail vote to the Cargo Agency Conference members, IATA Sin
confirmed with AFPI that recommendation will soon be effected.
After a proactive and consistent effort to bring about a positive change, AFPI with active
participation and cooperation of its members, the request to IATA on amending the
financial criteria on paid-up capitalization has been put forth in favour of the
association’s appeal.
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MULTIMODAL TRANSPORT
Efficient transport services are a prerequisite to successful trading, and majority of the
transport operators and freight forwarders may agree on that.
The concept of multimodal transport came from the facilitated growing international
trade whereby creating International transport which generally implies the use of
various transport links and over the years this situation has created a numerous
problems, pointing out to cargo accountability due to various transport operators.
Considering the variety of cultures, languages and commercial practices at both ends of
a trade, and a resulting complexity of assembling such an international transport
operation, it would appear reasonable to a trader to let one qualified operator organize
and be responsible and accountable for the entire transport chain. (Standing Committee
on Developing Services Sectors,UNCTAD, 1995)
The international multimodal transport is defined as the carriage of goods by at least
two different modes of transport on the basis of a multimodal contract from place in one
country at which the goods are taken in charge by the multimodal transport operator to
a place designated for delivery situated in a different country.
The AFPI joins in the effort of encouraging and strengthening this cause of creating an
integrated and efficient logistics and multimodal transportation system for cargo
movement between logistics and trade centers within ASEAN. For this purpose, the
association is one with the Federation of Freight Forwarders in the Philippines
(FEDFAP) to pursue this cause. It had conducted an orientation seminar and forum to
association members to properly disseminate this potential offered by new technologies
and innovations in transportation system.
The Philippine government has issued the initial policy framework on MTO.
Implementing rules are yet being drafted and the AFPI is directly involve in the
preparation of said rules.
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INDUSTRY RELATIONS
CIVIL AERONAUTICS BOARD
The Aircargo Forwarders of the Philippines, Inc. is consistently strengthening its working
relationship with the Civil Aeronautics Board (CAB), the government mandated agency
with general supervision and control over all airfreight forwarders. It continues to
recognize the relevant role of AFPI as a catalyst of national growth.
INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)
With the current issues AFPI and IATA has just faced and resolved, it proved a fact that
business relationship is continually renewing positively and cooperation at national and
international level is essential.
AFPI Training and Development Center represent by far the only one accredited training
school of IATA in the Philippines. And IATA has been urging its cargo agents to
recognize the vital role of AFPI in providing sound and effective training of freight
forwarders in the industry.
AIRCARGO GOLF CLUB OF THE PHILIPPINES
This association of avid golfers from AFPI membership, airlines and other industryrelated
business has recently hosted the Aircargo Golf Club regional tournament at Sta.
Elena Golf and Country club and the Orchard Golf and Country Club spearheaded by
the association’s President, Mr. Angelito Colona.
There are 156 golfers representing the Asian countries namely: Singapore, Malaysia,
Indonesia, Thailand, Hong Kong, Taiwan and Philippines who joined the said event.
Each team and individual players had exhibited and shared the same desire to maintain
friendly and effective cooperative relations with regional members which reaffirmed the
association’s objective.
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The following were the tournament winners:
Fun holes
Nearest to the Pin — Hole-in-One Day 1 – Winston Tan (Singapore)
Nearest to the Pin Day 2 — Domeng Talosig
Most Accurate Drive Day 1 — Michael Loo (Malaysia)
Most Accurate Drive Day 2
Ronny Tsui Ming Kuyen
Kin Chung Lau (Hong Kong)
Arullan Rajoo (Malaysia)
Ladies Champion — Susan Chang (Taiwan)
Senior Champion — Rico Brizuela (Philippines)
Individual
Group B (17-24)
Champion — Mike Aquino (Philippines)
1st Runner Up — Mat Isa Bin Din (Malaysia)
2nd Runner Up — Nelson Mendoza (Philippines)
3rd Runner Up — Domeng Talosig (Philippines)
4th Runner Up — Erich Lingad (Philippines)
5th Runner Up — Arullandu Philippe (Malaysia)
6th Runner Up — Chueng Kwok Hung (HK)
Group A (1-16)
Champion Suree S (Thailand)
1st Runner Up — Ossin Dikiwidjaja (Indonesia)
2nd Runner Up — Lim Kok Wee (Thailand)
3rd Runner Up — Sangvon K (Thailand)
4th Runner Up — Rico Brizuela (Philippines; 3 birdies)
5th Runner Up — Monchu Nolasco (Philippines)
6th Runner Up — Arifin Mohd Smed (Indonesia)
Doubles (Day 1 + Day 2) Best of 17 for 2 days
Champion — Philippines (Marlon Villanueva / Rodel Mangulabnan)
1st Runner up — Thailand (Thanakarn K / David A)
Team
Champion — Philippines
1st Runner Up — Thailand
2nd Runner Up — Hong Kong
Lowest Gross Day 1 (Sta Elena)
Komarandy Sio Truvatiz (Malaysia)
HCP 7 Gross 74
Lowest Gross Day 2 (Orchard) — David A (Thailand)
Lowest Net (Over Champion) — Marlon Villanueva (Philippines)
Lowest Gross — David A. (Thailand)
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