New Adminstrative Order on imported raw material may affect prices next year
Posted on December 28th, 2009
The Federation of Philippine Industries (FPI) warned that prices of goods with imported raw material sold in the country would likely increase next year. That is once the government has implemented the law requiring all imported bulk and break bulk cargo to be surveyed by an accredited surveying company at the port of origin.
At present, there is only one firm accredited by the government to do all the inspection of all imported goods. FPI said the Committee for the Accreditation of Cargo Surveying Companies (CACSC) headed by Secretary Narciso Y. Santiago Jr. only accredited Cotecna Philippines.
As an accredited surveyor, Cotecna is required to issue a report on the quantity, grade of all cargo shipments bound for the Philippines.
This raised concerns to all groups who imports raw materials.
The Philippine Association of Flour Miller (Pafmil) said that the implementation of the order on January 4 may delay the discharge of wheat shipments already in transit to the Philippines, and it may lead to the payment of demurrage charges of around $20,000 to $30,000 per day per vessel. Pafmil said this will eventually affect the consumers because of the resulting higher cost of flour and bread products.
The Philippine Iron & Steel Institute (PISI) said that the government should accredit sufficient number of surveyors, instead of only one firm doing the surveying of the shipments, to ensure transparency, required expertise to handle the various kinds of products, and freedom of choice to ensure competitive prices and good service.
Because of these, and other concerns, FPI is asking the government for the deferment of the implementation of the Malacañang-issued Administrative Order 243-A on Bulk and Break Bulk Cargo Clearance Enhancement Program for 90 days.
