Question & AnswerQ&A (DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 2)
The policy is to facilitate and assist the development and growth of Philippine trade and the national economy by enhancing the legitimate interests of Philippine shippers and promoting and professionalizing the freight forwarding industry through a system of registration and accreditation.
The Department of Trade and Industry (DTI) through the Philippine Shippers' Bureau (PSB) is tasked as the lead agency to implement the accreditation/registration.
An NVOCC is a transport enterprise which publishes its own freight tariff, issues its own bills of lading, and assumes all responsibilities of a common carrier without operating its own vessels.
No, no non-vessel operating common carriers, cargo consolidators, freight forwarders, and breakbulk agents shall be permitted to transact business with the Bureau of Customs without first being registered by the PSB.
The minimum paid-up capital requirements are: NVOCC - P500,000; Cargo Consolidator - P400,000; Freight Forwarder - P300,000; Breakbulk Agent - P250,000.
They must submit a list of officers/directors, audited financial statements, list of agents/offices abroad with contracts, company profile including SEC certificate, Articles of Incorporation/by-laws with proper business purpose, bio-data of directors/officers, inventory of transport equipment or contracts, list of major clients, proof of insurance coverage, among other requirements.
Entities that fail to renew their registration upon expiration shall be immediately delisted and disallowed from conducting business with the government signatories to the Memorandum of Understanding.
The RMC monitors and reviews the implementation of the MOU, formulates policies for professionalizing the industry, deliberates and acts on registration applications, and meets regularly to assess overall implementation.
No, the Certificate of Accreditation is non-transferable and cannot be used by any person, partnership, or corporation other than the one to whom it was issued.
Applicants must provide proof of insurance coverage such as Merchandise in Transit Floater Insurance or Through Transport Club Insurance with minimum amounts of P500,000 for NVOCC, P400,000 for cargo consolidators, P300,000 for freight forwarders, and P250,000 for breakbulk agents.
The filing and processing fee is P3,000 for registration plus P1,000 for each additional category applied for; late renewal under the express lane is P4,500; and entities with expired accreditation applying for renewal are charged P6,000.
The Certificate is automatically revoked and the new owner must apply for registration anew in accordance with the rules.
A single proprietor with at least 80% of the paid-in capital requirement may post a performance surety bond for the deficiency for one year, after which the full capital requirement must be met; partnerships or corporations cannot post a bond for capital deficiency.