Export-fee hike still
waiting for Implementation

By VG Cabuag
Reporter

THE Philippine export-fee hike, a move supported by warehouse and ground-handling operators, may remain deferred for a few more months, after exporters and air-cargo forwarders have maintained their opposition against the increased surcharge.

“Exporters really wanted the surcharge levied on imported cargoes and not against exports as it will douse cold water to its growing competitiveness in the international market. They claim that there is no way it will be levied against Philippine exports,” an industry source said.

Import fees are at P1.67 per kilo.

Supposed to be implemented in June, the fee’s imposition was deferred to September to allow freight forwarders ample time to inform their clients about the increase.

However, until today, nearly half a year after the supposed implementation, the fee hike has been postponed after proponents were unable to justify the need for the surcharge.
According to the source, exporters and service providers still have to conduct more meetings to reach an amicable settlement. However, the meetings have been postponed indefinitely.

Warehouse and ground-handlers, led by People’s Aircargo and Warehousing Inc./GlobeGrounds PAGS (Pairpags), want to increase their export service fees by more than 30 percent due to increasing export-related expenses.

For the past several years, these companies claim that they have been hit hard by the increase in export costs and that they need to hike their rates to cover these extra expenses.

Pairpags added that the country’s import volume has declining for the past two years, making the increase inevitable.

For cargo above 100 kilos, an additional export surcharge of 33 percent will be added, from the current P0.51 per kilo to P0.68 per kilo.

Similarly, air cargo below 100 kilos will be levied an additional 35 percent from P0.34 per kilo to P0.46 per kilo.

For its part, the Export Development Council, wants the export-service fee entirely scrapped, as it will make Philippine exports uncompetitive in the world market.

Meanwhile, Aircargo Forwarders of the Philippines Inc. assured its members and clients that the surcharge will not be implemented.