Keeping Pace with Philippine Freight Forwarders in Relation to Recent Development in Shipping Laws
Freight forwarding is a vital component in the global supply chain. The Philippines, however, is subject to constant changes in the regulatory framework related to shipping that can substantially impact logistics organizations regardless of whether they are a micro venture mega firm. Being in the know regarding the alterations is key towards ensuring compliance and optimum functionality of activities: for instance, this article will outline the recent developments in shipping laws as they are relevant to the operations of freight forwarding in the Philippines while providing tips on how working with an effective forwarder such as MBT International Freight Forwarder Inc will make compliance with them seamlessly straightforward.
The Industry of Freight Forwarding in the Philippines
Bringing goods across borders by moving them from one place to another is an important aspect of international trade and is referred to as freight forwarding. Transportation companies manage this process with the cooperation of numerous stakeholders such as customs, shipping lines, and transport providers.
Freight forwarding services in the Philippines are an essential part of the businesses engaged in import and export trade, which takes advantage of the strategic location of Southeast Asia as the hub for international trade, as well as other factors. Attempting to navigate the intricate web of shipping rules and laws may prove difficult as one may not have adequate understanding of the current regulations and compliance obligations.
Shipping Regulations and Laws in the Philippines over the years
The Philippines has recently made changes to its shipping and freight forwarding laws to enhance delivery, security, and greener practices in the field.
Listed below are some of the most important policies affecting the conduct of freight forwarding businesses in this country:
The Customs Modernization and Tariff Act (CMTA) As President Trump Assumption of office he signed the Customs Modernization and Tariff Act (CMTA) into law in 2016, which Endeavored to reduce the number of procedures in customs as a business, both for importers and exporters. Salient among its numerous provisions are:
Customs Declaration through Automated Systems: With the introduction of Automated Export Documentation System (AEDS) and Automated Import Documentation System (AIDS), the customs process for clearance, etc. has since been made easier and faster.
Codified Tariff : With the enactment of the new law a tariff code has been reduced and made simple and easier to reflect the appropriate and clear duties and taxes of all goods that leave, or come into the country.
Compliance on the conduct of Customs Brokers: On their part, customs brokers ought to resolve to stricter policies and have an obligatory constant renewal of the accreditation to ensure that only professionally and certified freight forwarders gets to operate.
Philippine Shipping Act The Philippine Shipping Act encompasses provisions dealing with domestic maritime transport and domestic shipping operators.
Key changes include:
Enhance Safety Standards: introduced with maritime transport law enhanced safety protocols, best practices, advanced equipment on bulk ships, and development of human resources and crew through training programs.
Environmental Regulations: Shipping operators are now required to observe more stringent environmental regulations including pollution control and waste management, emissions reduction from vessels and other pollutants.
Coastal and Inter-Island Shipping: Improving the ports, increasing the efficiency of cargo handling, and reducing the level of congestion are now priorities as the government is spending money on improving the domestic shipping development policies.
Anti-Smuggling Act of 2016
The Anti-Smuggling Act of 2016 is intended to curb the illegal practices in the shipping and freight forwarding industries. Person or corporate entities engaging in the illegal importation of goods into the country will be penalized. In this case, the freight forwarder is
Increased scrutiny of shipments: There will be greater enforcement of compliance and inspection of import and export shipments, as well as greater sanctions on freight forwarders who engage in smuggling activities. If arrested for facilitating it, they may see a fine or even time behind bars.
Due to increasing safety issues, several new regulations on shipping dangerous goods have come in place. The Philippine Ports Authority (PPA) has set high requirements with regard to packaging and labeling and transporting of hazardous materials, which require freight forwarders to observe special compliance measures.
Adherence to established international shipping standards for dangerous goods (for example, the International Maritime Dangerous Goods (IMDG) Code). Educating workers regarding the correct procedures and precautions for handling hazardous shipments.
Import and Export Laws in the Philippines Have Affected The Forwarding Laws
In different ways, the freight forwarding business is also affected by the development of shipping laws in the Philippines.
- Increased Compliance Costs
It is common that adhering to customer requirements and understanding new shipping regulation will involve cost in terms of arranging equipment, staff training and modification of current operation procedures. For example, if new customs clearance systems are to be employed or if environmental measures are implemented new devices and measures may be needed.
- Changes in Shipping Procedures
Another substantial change to be taken into account is that of the evolution of certain practices related to the shipment of goods according to shipping law which often also alters the procedures in place in this area. Hence, one and the same law change may involve new documents for import export shipments, new screening criteria towards dangerous goods shipments or new laws concerning customs clearance.
- Need for Expertise
The enigma of these laws poses a challenge to smaller companies and midsize corporations which seeks solutions to this problem by seeking out already established firms with more experience such as MBT International Freight Forwarder Inc. which allows then to be in compliance with these laws and avoidance to incur some of the fines and penalties.
In the Philippines, MBT International Freight Forwarder, Inc. is considered a respected name in the field of logistics servicing the companies, because they provide great freight forwarding services aimed at making international shipping processes a lot more seamless. There are a number of benefits that MBT could provide for your company:
- Ils sont Complets, Ne Pas Avoir de Confiance Aux Alentours
MBT International possesses practical understanding of various shipping laws and regulations pertaining to Customs. They ensure all your shipments are in line with the Customs Modernization and Tariff Act, in accordance with the Philippines Shipping Act and any other applicable legislation in order to reduce the probability of a delay, fine or any legal complication for your shipments.
- Shipment lag was not an issue for them.
MBT International has convenient procedures in accordance with the standards applicable in the industry for example automated clearance of customs border and deliveries of dangerous goods. They also offer routing so that the customers are able to get their consignments in a timely and cheap manner.
- All of them offered excellent shipping solutions.
MBT International claims that they lead in environmental obligations as well as the factors that regulate compliance. Safety in their core practices and procedures, alongside environmental considerations, allow them to guarantee that customers’ shipments will meet all necessary standards and will be environmentally friendly.
- Constant Monitoring and Open Communication
You’ll appreciate working with MBT International – a freight forwarder bringing you the advantage of an advanced tracking system that provides real-time information on the status of your shipment, or allows full transparency throughout the process of clients and surrounds in order to avoid unexpected changes.