Speaker Alan Peter Cayetano said the House of Representatives will work together with the Department of Trade and Industry (DTI) in swiftly passing a measure that will regulate high shipping rates to help lower costs for importers, and in turn, bring down prices of consumer goods.
Cayetano noted that shipping rates, which are unilaterally imposed by international shipping lines, have become excessive, leading to increases in the costs of imported raw materials and other goods.
At first glance, Cayetano said regulating shipping rates would appear to benefit only local importers. But he said that this measure has far-reaching consequences, as high shipping fees force importers to pass on these costs to consumers, leading to higher prices of goods.
“Local producers who import raw materials are forced to pay these exorbitant shipping fess, which jack up their production costs, and, in the process, result in higher prices for domestic consumers,” said Cayetano.
“Ang prinoprotektaha natin dito in the end ay ang ating mga consumers. This will also help the government improve its tax collection capabilities,” the Speaker added.
Among the Speaker’s goals under his “Presyo, Trabaho, Kita” (PTK) advocacy to help President Duterte fulfill his promise of a safe, secure and comfortable life for every Filipino is to pass laws that will lower prices, generate jobs and raise incomes, especially in the countryside.
He said the House will coordinate with the DTI in reconciling and finetuning a draft bill that Trade Secretary Ramon Lopez plans to submit to the House to regulate shipping fees and the pending measures already filed by several lawmakers in the 18th Congress on this issue.
According to the DTI, it plans to submit its draft bill before the end of January.
At least two bills are pending in the House seeking to regulate and standardize local fees imposed by foreign shipping lines operating in the country.
One of these is House Bill No. 4316 filed by Bagong Henerasyon Partylist Rep. Bernadette R. Herrera-Dy, which aims to standardize local charges at both the origin and destination imposed by international shipping firms.
HB 4462 filed by Ang Probinsyano Partylist Rep. Ronnie Ong mandates the Maritime Industry Authority (MARINA) to promote fair and transparent destination fees and other shipping charges among freight forwarders and agents of international shipping lines.
The DTI had earlier planned to issue a Joint Administrative Order, together with the Department of Transportation and the Department of Finance, on the regulation of local fees charged by foreign shipping lines, but later decided on asking the President instead to issue an Executive Order on this matter.
But the lack of an enabling law covering the regulation of fees imposed by foreign shipping lines operating in the country prompted the DTI to draft a bill on this concern and submit it later to Congress to give more teeth to the measure.
