DTI calls for stop to unnecessary shipping charges

The Department of Trade and Industry (DTI) on Wednesday called for a stop to unnecessary shipping charges on shippers.

“We are calling on all international shipping lines to put a halt to these unnecessary charges as these are unfair,” DTI Secretary Ramon Lopez said during a presentation of a study on fees imposed by international shipping lines on importers and exporters.

Lopez also urged exporters and importers to insist on “freight collect” as this is more advantageous and called on the Bureau of Internal Revenue to investigate unpaid taxes arising from the unnecessary charges on shippers.

Based on the study on potentially avoidable international shipping costs and other charges presented by its authors Dr. Henry Basilio and Michael Raueber to the DTI and Philippine Competition Commission (PCC) officials, certain fees imposed by some international shipping lines were found to be costs that should be considered part of the foreign carriers’ operations and covered under freight costs.

The study recommended that the excessive costs should not be allowed to be incurred by or passed on to local exporters and importers, especially if they do not have any contractual relationship with the foreign carriers.

Such costs undermine the competitiveness of Philippine exporters and domestic producers by increasing the cost of imported raw materials and intermediate goods. Filipino consumers are also greatly affected by paying higher price for products for final consumption, since additional import costs are passed on to them.

Meanwhile, Lopez lauded PCC for heeding DTI’s call to investigate excessive charges imposed by international shipping lines.

“We thank the PCC led by Chairman Arsenio Balisacan and the commissioners for listening to the plea of exporters and importers. We must put an end to this unfair practice of charging excessive fees as these charges increase the cost,” said Lopez.

The DTI Secretary said that while the PCC investigates, the DTI shall continue to explore avenues so government can put an end to the practice that affect competitiveness of local firms.