Question & AnswerQ&A (DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 5, S. 1995)
The main objective is to promote and professionalize the domestic freight forwarding industry through a system of registration and accreditation, and to establish an environment conducive to the growth of the industry.
All persons or entities engaged in domestic freight forwarding services as defined in the Memorandum of Understanding (MOU), except those engaged in domestic air freight forwarding services which remain under the jurisdiction of the Civil Aeronautics Board (CAB).
A Domestic Freight Forwarder is defined as a cargo intermediary enterprise which facilitates the transport of goods on behalf of its customer and performs any or a combination of the domestic freight forwarding services as defined in the rules.
Domestic freight forwarding services include acceptance of cargo for delivery to domestic destinations, documentation and processing, booking cargo space, negotiating freight rates, advancing freight payments, providing trucking and warehousing, packing/crating, and other related undertakings.
The Philippine Shippers' Bureau (PSB) is the lead agency in implementing the MOU and is responsible for the registration/accreditation process, issuing certificates, and monitoring compliance of domestic freight forwarders.
Requirements include Articles of Incorporation/partnership or business name registration; biodata of the operations manager with experience; latest audited financial statements; certificate of paid-up capital of at least P250,000; specimen of transport document; inventory or contract for transport equipment; insurance coverage; authority to inspect; and permit to operate by PPA if applicable.
Grounds for cancellation include misrepresentation, false statement, or fraud in connection with the submission of registration requirements; violation of Trade and Industry Laws, Tariff and Customs Code, PPA Charter, or refusal to comply with lawful orders issued by the PSB.
Such a transfer or change of ownership causes the automatic revocation of the Certificate of Registration/Accreditation. The new owner must apply for registration in accordance with the rules.
The PSB gathers data and complaints, evaluates probable cause, conducts a preliminary conference, submits recommendations to the RMC, and if warranted, files formal charges. The respondent is notified and given time to answer; failure to respond leads to judgment by default. A decision is rendered, final after 15 days unless appealed to the Secretary of Trade and Industry.