Law Summary
Coverage
- Applies to all persons or entities engaged in domestic freight forwarding services.
- Registration/accreditation for domestic air freight forwarding remains under the jurisdiction of the Civil Aeronautics Board (CAB).
Definitions
- MOU: Agreement involving the Philippine Ports Authority, MARINA, CAB, Philippine Shippers' Bureau (PSB), and PHIDOFFA.
- Registration and Accreditation: Compliance process overseen by PSB.
- Domestic Freight Forwarder: Enterprise facilitating cargo transport domestically.
- Domestic Freight Forwarding Services: Includes cargo acceptance, documentation, booking space, negotiating rates, trucking, warehousing, packing, and related activities.
- Shipper and Consignee: Defined as parties contracting carriage and receiving goods respectively.
- Registration and Monitoring Committee (RMC): Composed of government and private sector representatives.
- PSB: Lead agency implementing the MOU.
Requirements for Registration/Accreditation
- Articles of Incorporation or business name registration.
- Biography and photos of operations manager with relevant experience.
- Latest audited financial statements.
- Minimum paid-up capital or equivalent proof of assets.
- Samples of transport documents (Bills of Lading, Waybills).
- Inventory or trucking contracts.
- Insurance coverage minimum of P100,000 or as determined.
- Authority to inspect facilities.
- Permit to Operate from PPA, when applicable.
Processing of Application
- Application considered filed upon submission of full documents and payment of P3,000 fee.
- PSB to evaluate and inspect within 15 working days.
- Inspection by at least two PSB staff with report due within 24 hours.
- Approval by the RMC.
- Issuance of Registration/Accreditation certificate and RMC ID upon compliance.
Validity and Renewal
- Certificate valid for 2 years, subject to cancellation or suspension.
- Renewal applications due 45 days before expiry.
- Renewal fees: P4,500 if timely, P6,000 if late or previously delisted.
- Automatic approval if no action on application within 21 working days.
General Provisions
- Cancellation, revocation, or suspension for rule violations.
- Ownership changes in single proprietorships or partnerships cause automatic certificate revocation.
- Certificates non-transferable.
- Issuance of RMC ID cards to authorized representatives with a P100 fee.
- Reporting changes in directors or management within prescribed timeframes.
- Delisting for failure to renew registration.
- Maintenance and dissemination of an updated list of accredited entities.
Monitoring and Enforcement Procedures
- PSB collects data from complaints, records, and other agencies to monitor compliance.
- Evaluation of probable cause for investigation.
- Grounds for cancellation include fraud, misrepresentation, or violation of relevant laws.
- Grounds for suspension include failure to provide insurance proof, submit required reports, or respond to inquiries.
- Conduct of preliminary conferences and issuance of notices.
- Suspension or cancellation cases heard by RMC with majority vote decision.
- Referral to other government agencies when applicable.
- Respondent entities given chance to answer and present defense.
- Summary judgment or investigation based on complexity of issues.
- Final decisions appealable to Secretary of Trade and Industry, then to President or Court of Appeals.
Effectivity
- Rules take effect 15 days after publication in a newspaper of general circulation.