Question & AnswerQ&A (MIA MEMORANDUM CIRCULAR NO. 30)
An NVOCC is a common carrier that does not operate the vessels used for ocean transportation but acts as a shipper with ocean carriers and issues its own bills of lading to shippers, assuming liability and responsibilities of a carrier.
An Ocean Freight Forwarder procures transportation of property for compensation, consolidates shipments, undertakes breakbulk and distributing operations, and performs ancillary services related to these activities.
Any natural or juridical person wishing to engage in the business of NVOCC or ocean freight forwarding in the Philippines must obtain a valid license from the Maritime Industry Authority.
Applicants must be Filipino citizens or corporations/partnerships with at least 60% Filipino ownership, except for joint ventures with foreign equity registered with the Board of Investments.
Applicants must submit a resolution or letter authorizing the application, Articles of Incorporation and By-Laws or equivalent for partnerships, and a list of directors or principal officers with at least three years' shipping experience including their bio-data.
An NVOCC must present a Certificate of Insurance Cover for its liability to cargoes or alternatively secure a performance bond amounting to P150,000 from a surety company registered with the Insurance Commission and acceptable to the Authority.
Yes, persons whose primary business is merchandise sales can forward shipments of their own merchandise without a license.
Operating without a license may result in a fine of up to P5,000 and temporary closure of the business until a valid license is secured.
They may be subject to a fine not exceeding P3,000 for dealing with unlicensed NVOCCs or ocean freight forwarders.
The license must be renewed annually with the Maritime Industry Authority upon satisfaction of all relevant requirements.
Enforcement involves the Maritime Industry Authority, Bureau of Customs, Philippine Ports Authority, Philippine Coast Guard, and other relevant agencies through a Memorandum of Agreement.