Definitions of Key Terms
- Memorandum of Understanding (MOU): Agreement among PSB (SHIPPERCON), BOC, MARINA, and CAB.
- Registration: Certification of compliance with industry requirements and competence.
- Certificate of Registration: Document certifying registration for business transactions among signatories.
- Committee: Multi-agency registration and monitoring body appointed by SHIPPERCON Director.
- Freight Forwarder: Carrier intermediary organizing shipment without vessel operation.
- Non-Vessel Operating Common Carrier (NVOCC): Enterprise issuing freight tariffs and bills of lading without operating vessels.
- Cargo Consolidator: Person/company grouping smaller shipments and issuing own documentation.
- Breakbulk/Consolidation Agent: Local representative named in master bill of lading.
- Philippine Shippersa Bureau (SHIPPERCON): Implementing agency under the MOU.
- PISFA: National freight forwarders' association recognized by DTI and SHIPPERCON.
- Minimum Paid-Up Capital: Financial requirement for registration classification.
- Cargo Insurance Coverage/Policy: Required insurance types and coverage amounts specific to operation categories.
Registration Requirements
- All engaged freight forwarders, NVOCCs, cargo consolidators, and breakbulk agents must register with SHIPPERCON.
- Corporations/partnerships must submit a list of officers, audited financials showing minimum paid-in capital (ranging from P250,000 to P500,000), agent contracts, and company profile including SEC documents.
- Single proprietors must prove two years industry experience, financial resources, equipment, tax returns, and business registration.
- Single proprietors with 80% minimum capital may register if a surety bond is posted.
- Proof of adequate insurance coverage is mandatory (insurance amounts correspond to business categories).
Fees for Registration
- Filing and processing fee of P3,000 per application.
- Additional fee of P1,000 per new category applied for.
Application Processing
- SHIPPERCON evaluates applications and inspects premises within 15 working days.
- The Committee recommends approval or denial based on compliance.
Certificate of Registration
- Issued upon satisfactory compliance and full payment.
- Valid for two years unless revoked, cancelled, or suspended for violations.
- Certificates are non-transferable and exclusive to registered entities.
Business Ownership and Corporate Changes
- Change or transfer of ownership in single proprietorship causes automatic certificate revocation.
- Changes materially affecting partnerships also cause revocation.
- Corporate director changes must be reported to SHIPPERCON within 30 days.
- Changes in key officers or agents abroad must also be reported within 30 days.
Renewal of Registration
- Must be filed 45 days before expiration with same requirements as initial registration.
- SHIPPERCON evaluates renewal within 15 working days.
- Failure to renew results in delisting and prohibition from transacting with government entities.
Monitoring and Inspection
- Committee and SHIPPERCON continuously monitor performance and compliance.
- Inspections of premises and documents occur before and after registration.
- SHIPPERCON staff conduct inspections with proper authorization and in presence of company officers.
- Inspection reports are submitted within 24 hours.
- Violations found may lead to sanctions or denial of registration.
- SHIPPERCON can require submission of shipment manifests for oversight.
Business Transaction Restrictions
- Only registered NVOCCs, cargo consolidators, freight forwarders, and breakbulk agents may transact with the Bureau of Customs or relevant government bodies.
Committee Functions
- Monitor MOU implementation and formulate policies for industry professionalization.
- Act on registration applications and monitor compliance.
- Meet regularly with Secretariat to ensure effective implementation.
Effectivity
- Rules took effect 15 days after publication.
This summary outlines the essential legal framework governing the registration, operation, monitoring, and regulation of freight forwarders, NVOCCs, cargo consolidators, and breakbulk agents in the Philippines as provided by the promulgated rules.