The Association of International Shipping Lines (AISL) lauded the Department of Transportation’s (DOTr) approach to resolving the industry’s container deposit concerns.
“We can only commend the creativity of the Transportation Secretary for a coming up with a set of viable options which shipping lines can choose from in order to solve the container deposit problem which, for years, has been a source of irritants between the importing community and international shipping lines,” the AISL, in a statement said.
The group further said the solution being proposed by the DOTr Secretary “is consistent with the provisions of House Bill No. 04933 which is under deliberation by the House Committee on Transportation.”
“DOTr’s pragmatic approach to the container deposit problem is a welcome departure from the solution offered by the PPA’s TOP-CRMS,” the group said.
In a letter dated July 12, DOTr Secretary Jaime Bautista presented three alternative options for shipping lines to consider, providing them with the freedom to choose the most suitable solution:
(a) Discontinue the container deposit practice; (b) Continue to collect container deposits contingent upon the availability to refund within 14 days, or (c) Subscribe to container deposit from Container Ledger Account (CLA) or other providers that offer equivalent services.
Shipping lines have the option to voluntarily cease the practice of requiring container deposits, continue collecting container deposit with prompt refunds, or avail of Container Ledger Account (CLA) services or explore other providers offering equivalent services, according to Ronas.
“Unlike TOP-CRMS, the DOTr’s democratic solutions provide shipping lines a latitude in determining, and choosing, the most appropriate resolution to the container deposit issue, ensuring a fair and competitive environment within the shipping industry,” Ronas said.
“The use of CLA was cited based on the successful implementation of the program in Malaysia, where they effectively addressed container deposit issues,” Ronas explained.
He added: “It should be made clear however, that the DOTr’s letter extends the same opportunity to any other providers offering equivalent services and does not endorse CLA services exclusively.”
“The shipping industry expresses its gratitude to Secretary Bautista and the DOTr for their democratic solutions and looks forward to continued cooperation in addressing future challenges,” the group said.
The Anti-Red Tape Authority (ARTA) recently issued a re-evaluation report on the Philippine Ports Authority (PPA) Administrative Order No. 04-2021, or the Trusted Operator Program-Container Registry and Monitoring System (TOP-CRMS. One of the highlights of the ARTA Reevaluation Report was its findings that there is “no sound legal and empirical basis to establish the need for the new regulation.”
With the latest ARTA findings, the group again reiterate its call to scrap the TOP CRMS immediately.
