Objective of Standardization
- Standardize freight forwarding services, rates, and charges
- Protect interests of shippers and importers
- Prevent indiscriminate or excessive charges
- Enhance competition and improve service quality among freight forwarders
Scope and Coverage
- Applies to all accredited Non-Vessel Operating Common Carriers (NVOCCs), Cargo Consolidators (CCs), International Freight Forwarders (IFFs), and Breakbulk Agents (BBAs)
Nomenclature of Freight Forwarding Services
- LCL Charge: Cost for transferring consolidated container from terminal to container freight station (CFS), payable by consignee to breakbulk agent or freight forwarder
- Documentation: Costs for preparing and processing pre-arrival and necessary shipment documents, including postage and communication
- Handling Fee: For FCL shipments only, covering surveying, tallying, and claims handling
- Turn-Over Fee: Fee for processing and releasing delivery orders
- Bill of Lading (B/L) Fee: Charge for processing and issuance of house bill of lading
- Collect Fee: Charge on "Freight-Collect" importations covering agent's costs for collection, bank charges, and remittance expenses
- Currency Adjustment Factor (CAF): Surcharge on freight-collect payments made in Philippine Peso due to exchange rate fluctuations
- Value Added Tax (VAT): Tax levied on value added to service per Philippine tax laws
- Terminal Handling Charge (THC): Reimbursement for charges by international shipping lines, subject to changes
- Note 1: No double charging for LCL services by BBAs/CCs
- Note 2: Collect Fee and CAF are subject to periodic review
- Note 3: Applicability of THC may change based on future resolutions
Prescribed Freight Forwarding Rates for Containerized Import Shipments
| Service | LCL Rate | FCL Rate |
|---|---|---|
| LCL Charge | Php 600 per CBM | Not Applicable |
| Documentation | Php 600 per BL | Php 600 per BL |
| Handling Fee | Not Applicable | Php 600 per BL |
| Turn-Over Fee | Php 600 per BL | Php 600 per BL |
| Bill of Lading Fee | US$20 per BL | US$20 per BL |
| Collect Fee | 5% of Freight-Collect amount | 5% of Freight-Collect amount |
| Currency Adjustment Factor (CAF) | 3% of Freight-Collect amount | 3% of Freight-Collect amount |
| Value Added Tax (VAT) | 10% (or as prescribed by law) on items 1, 2, 3, and 4 | 10% (or as prescribed by law) on items 1, 2, 3, and 4 |
| THC Charge | Php 300 per CBM | At cost |
Implementation and Effectivity
- The memorandum circular takes effect fifteen (15) days after publication
- Published in two national newspapers of general circulation
Legal Authority
- Issued by the Director of the Philippine Shipper's Bureau (PSB)
- Based on Government policy from PSB Administrative Order No. 2, Series of 1996
Important Legal Concepts
- Standardization fosters fair competition and service improvement
- Clear delineation of charges prevents overcharging and enhances transparency
- Periodic review mechanism for fees subject to market and currency fluctuations
- Incorporation of VAT ensures compliance with tax regulations
- Protection of consignee’s rights by limiting multiple charges for the same service
This framework seeks to promote a fair, transparent, and competitive freight forwarding industry ultimately benefiting shippers and importers in the Philippines.