Definitions
- Key terms such as Memorandum of Understanding, Registration, Certificate of Registration, Registration and Monitoring Committee (RMC), Freight Forwarder, Non-Vessel Operating Common Carrier (NVOCC), Cargo Consolidator, Shipper, Breakbulk Agent, and others are defined for clarity.
- Minimum Paid-Up Capital and the RMC Identification Card requirements are established.
Powers and Functions of the Registration and Monitoring Committee (RMC)
- Monitor and review the implementation of the MOU.
- Formulate policies and programs for professionalization of the freight forwarding industry.
- Deliberate and decide on registration applications.
- Conduct regular meetings with the Secretariat for oversight.
Registration Requirement and Scope
- No freight forwarders, NVOCCs, cargo consolidators, or breakbulk agents can transact with the BOC without prior registration with the PSB.
- Registration is mandatory for all such entities engaged in cargo forwarding.
Requirements for Corporations and Partnerships
- List of officers/directors, with operations officer having at least two years' experience.
- Audited financial statements showing minimum paid-up capital depending on category (e.g., NVOCC P500,000; Cargo consolidator P400,000).
- Contracts and profiles, including incorporation documents, agency agreements, and major clients.
- Proof of insurance coverage in amounts corresponding to category.
Requirements for Single Proprietors
- Personal data and proof of experience similar to corporate requirements.
- Equipment list, tax returns, proof of financial resources.
- Certificate of business name registration.
- Provision to post a surety bond if capital deficiency exists (not allowed for corporations/partnerships).
- Insurance coverage requirements similar to corporations.
Branch Office Requirements
- Branch offices of accredited entities are automatically accredited upon payment of 25% of original filing fee and submission of manager’s credentials.
Additional Requirements for Cargo Consolidators and NVOCCs
- Must issue their own bill of lading using their own name and address.
Proof of Insurance
- Original copies of insurance policies and official receipts must be submitted.
- TT Club policy holders may submit certified copies instead.
Clearance and Fees
- Applicants must have no pending customs cases or unpaid taxes; clearances from BOC and BIR required.
- Filing fee of P3,000 plus additional P1,000 for new categories.
Application Processing
- Application deemed filed upon full payment and submission of all requirements.
- PSB evaluates within 15 working days, including office inspections, then refers to RMC.
- Clarifications may suspend processing time; applicants have 5 days to respond.
- Issuance of Certificate of Registration upon full compliance.
Inspection Procedures
- Premises and document inspections conducted before approval and periodically after registration.
- Inspections by at least two PSB staff with applicant representatives present.
- Inspection reports submitted within 24 hours.
- Violations found may lead to sanctions or denial of registration.
Capital and Insurance Compliance
- Paid-up capital and equity must meet or exceed prescribed minimums at application and renewal.
- Cargo insurance coverage must be either Merchandise in Transit Floater or Through Transport Club Insurance, covering specified risks.
Validity and Renewal
- Certificates of Accreditation valid for two years unless revoked or suspended.
- Renewal applications must be submitted 45 days before expiration with similar requirements as original.
- Automatic approval if no action taken within 21 working days.
- Fees vary for express lane submissions or late filings.
General Provisions
- One certificate per business category; no issuance without full requirements.
- Certificates are not transferable and only usable by the holder.
- PSB issues RMC ID cards to authorized representatives with fees and validity provisions.
- Change in ownership or partners leads to automatic revocation and reapplication.
- Changes in directors, officers, or agents must be reported within 30 days.
- Failure to renew results in delisting and prohibition from transacting with government entities.
- PSB maintains updated lists of accredited entities and may require submission of shipment manifests.
- There are established procedures for cancellation, revocation, suspension, and appeals.
Repealing Clause and Effectivity
- Previous 1992 rules inconsistent with these provisions are revoked or amended.
- The amended rules take effect 15 days after publication in a newspaper of general circulation.