Joint Administrative Order to Ease Port Congestion Expected by August

A JOINT administrative order (JAO) aimed at easing port congestion and regulating cargo handling charges is expected to be signed by August, ahead of the seasonal buildup of cargo volumes, the Bureau of Customs (BoC) said. Customs Commissioner Ariel F. Nepomuceno said the JAO, once signed by the departments of Finance, Trade and Industry, and Transportation, will give the agency the power to coordinate government efforts in addressing port congestion. “There was a draft (during) President Rodrigo R. Duterte’s time, which he did not sign, I don’t know why. That has been revived, and I am confident that with Secretary Frederick D. Go’s commitment, this will be signed very soon, August at the latest,” he told reporters late Tuesday. Mr. Nepomuceno said the order is expected to be in place before the usual October surge in shipments. He said port congestion has been driven by both infrastructure constraints and operational issues, including limited container yards, narrow access roads, and the lack of discipline among some shipping lines and importers. Mr. Nepomuceno said one proposal is to increase container storage fees inside ports, noting that these remain lower than rates charged by private container yards. “That’s a solution, but that is not within my power … that is under the Philippine Ports Authority. So, we are waiting for the joint administrative order (which will give the BoC the power) to manage the entire congestion issue,” he added. The proposed JAO gives the BoC the legal authority to manage congestion and, to a limited extent, review charges imposed on truckers and importers. “With that JAO, one agency will be empowered to direct the other concerned agencies in solving the problem,” he said. Mr. Nepomuceno added that while the JAO would lay down an immediate framework, legislation would offer a more permanent solution since administrative orders can be reversed. He said that the BoC is also moving forward with its new Customs Processing System, with a contract award expected following a review of revised proposals. Mr. Nepomuceno said he rejected a recent proposal because it still did not sufficiently cut out human intervention. “I am not yet satisfied because in the last presentation, there was still human intervention and that defeats the purpose,” he said. He said the BoC is aiming to pilot the new system by June 2027, with the Port of Subic among those being considered for initial testing. Separately, the BoC said it signed a memorandum of understanding (MoU) with the Armed Forces of the Philippines (AFP) to strengthen border security and customs enforcement. “Under the agreement, the BoC and AFP will establish a Joint Coordination Committee (JCC) to serve as the primary policy and oversight body for the implementation of the MoU,” the BoC said in a statement. — Justine Irish D. Tabile