QuestionsQuestions (DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 2)
It was promulgated pursuant to Section 4(c) of Executive Order No. 514.
To facilitate and assist the development and growth of Philippine trade and the national economy by enhancing the legitimate interests of Philippine shippers, including professionalizing and regulating the freight forwarding industry.
The Memorandum of Understanding involves the Philippine Shippers' Bureau (PSB), Bureau of Customs (BOC), Maritime Industry Authority (MARINA), and Civil Aeronautics Board (CAB), with DTI/PSB coordinating implementation.
It is the certification that the applicant enterprise complied with basic industry requirements and has shown professional and financial competence, making it reliable and capable to service export and import trades.
A cargo intermediary enterprise that procures transport on behalf of customers (e.g., booking ship space, negotiating rates, preparing documents, advancing freight payments, providing trucking/warehousing and related services) without itself assuming the role of a carrier.
It publishes its own freight tariff, issues its own bills of lading, and assumes all responsibilities of a common carrier without operating its own vessels.
It undertakes groupage of small (LCL) shipments for single or various consignors/consignees by procuring vessel/container space from carriers and issuing its own bills of lading or equivalent.
It monitors and periodically reviews implementation of the MOU, formulates policies and programs, deliberates and acts on applications referred to it by the PSB for final approval/denial, and meets regularly to assess overall implementation.
Non-vessel operating common carriers, cargo consolidators, freight forwarders, and breakbulk agents must first be registered by the PSB before transacting business with BOC.
Paid-up capital/equity must be met at the time of filing for both original and renewal, and unimpaired such that net equity is at least equal to the prescribed minimum and not impaired by losses or liabilities upon application.
Paid-in capital: NVOCC ₱500,000; Cargo Consolidator ₱400,000; Freight Forwarder ₱300,000; Breakbulk Agent ₱250,000. Insurance coverage amounts: NVOCC ₱500,000; Cargo Consolidator ₱400,000; Freight Forwarder ₱300,000; Breakbulk Agent ₱250,000.
They must have their own bill of lading using their own name and address.
Merchandise in Transit (Floater) insurance covering truck risks plus robbery and hijacking plus specified loading/unloading and overnight-stop risks, or Through Transport (TT) Club Insurance as comprehensive cargo liability for destinations between the Philippines and worldwide.
It is deemed filed upon payment of the filing fee and submission of all documentary requirements.
Within fifteen (15) working days from receipt of the application and all requirements (including proof of payment of fees), PSB evaluates/inspects and recommends approval or denial to the RMC.
The running of the reglementary period is suspended if PSB requires clarificatory statements and the applicant fails to answer within five (5) calendar days; it resumes when the answer is submitted.
All applications (original or renewal) are processed within twenty-one (21) working days from filing; if no action is taken or processing isn’t completed within that period, the application is deemed approved and the applicant is entitled to issuance of the certificate.
Upon expiration, it is immediately delisted and disallowed from conducting business with the government signatories to the MOU.
Transfer or change of ownership of a single proprietorship causes automatic revocation of the certificate; the new owner must apply for registration under the DAO.