THE Philippines' Department of Finance (DoF) said a joint administrative order (JAO) aimed at easing port congestion could be signed as early as next week, provided the agencies consulted do not propose any significant changes. The measure is intended to be in place before cargo volumes build up ahead of the year-end holiday season, when congestion at the docks slows processing and feeds into logistics costs.

Finance Undersecretary Rolando T. Ligon, Jr. said the participating agencies have until the end of this week to submit their comments on the order.

“Kasi ang binigay namin na deadline sa kanila this week, so kung wala naman comment na substantial (We gave them until this week, so if they get no substantial comment) then we can all sign it by next week,” he told reporters on the sidelines of the SGV Tax Symposium on Monday.

The JAO seeks to address yard utilization and to improve transparency in cargo-handling charges levied by customs third parties and other logistics providers. It will be jointly issued by the DoF, the Department of Trade and Industry (DTI), the Department of Transportation, the Bureau of Customs (BoC), the Bureau of Internal Revenue, the Philippine Ports Authority, the Maritime Industry Authority, and the Philippine Competition Commission — a lineup spanning revenue collection, trade, transport, and competition oversight, the remits that cover the yard-capacity and cargo-charge issues the order targets.

Mr. Ligon said the DoF has itself already signed the JAO.

“That was two weeks ago; we are waiting for their comments so that it can be enforced,” he said. “We drafted it together with BoC, that is why it is okay for us in principle.”

He said the goal is to fast-track implementation, as cargo volumes are expected to surge toward the end of the year.

“We are trying to fast track it. Definitely we will implement it soon,” he added.

Customs Commissioner Ariel F. Nepomuceno said that although revenue collections remain on track, the ports continue to face congestion.

“The challenge right now is congestion… (That is why) we are anticipating the formal approval of the JAO by all the secretaries,” he told reporters on the sidelines of the same event.

He attributed the delay in implementation to the DoF's decision to seek stakeholder input while the order was being formulated. “They tried not to sacrifice substantial inputs from the other stakeholders,” he added.

Once in effect, Mr. Nepomuceno said the JAO will help prevent “temporary setbacks,” citing a decline in collections in early October caused by the non-filing of entries by some customs brokers.

“If you use that as a simulation of what would happen if there's congestion, there will really be delays in processing… (which will have an impact on) logistics costs,” he added.

He identified a shortage of container yards, the country's heavy reliance on imports, and a lack of transparency in the charges imposed by shipping lines as the main factors behind port congestion.

As of 7 a.m. on Wednesday, the BoC's Port of Manila office reported an overall yard utilization rate of 73%. With the comment deadline set for the end of this and signing possible next week, that utilization reading serves as the baseline heading into the holiday buildup the order is meant to get ahead of. — Justine Iris D. Tabile