AmCham PH bucks hike in PPA fees
The American Chamber of Commerce of the Philippines Inc. (AmCham Philippines) on Tuesday thumbed down the Philippine Ports Authority (PPA) plan to increase the storage fees it collects for foreign containerized cargo, indicating growing opposition from foreign business organizations.“We, at AmCham, are not for it at all. We have been lobbying against any kind of storage [fees] increases. It is not just the right time,” AmCham Philippines Executive Director Ebb Hinchcliffe told reporters during a chance interview in Makati.
“I think it will hurt more than will help,” he added.
Hinchcliffe said that they planned to send their feedback to the PPA through a joint statement from the Joint Foreign Chambers of the Philippines, the coalition of the American, Australian-New Zealand, Canadian, European, Japanese, Korean business chambers, as well as the Philippine Association of Multinational Companies Regional Headquarters Incorporated.
Earlier this month, the European Chamber of Commerce of the Philippines (ECCP) expressed its wariness about the PPA’s plan, citing its negative impact to the business community.“We need to ensure the competitiveness of the Philippine market. So, if you put taxes or more blocks that make trade more difficult, it’s not helping,” ECCP president Paulo Duarte had said. Earlier in October, the PPA disclosed during a public consultation that it plans to increase by 32 percent the storage fees for import, export and transshipment containers in its facilities that will be stockpiled in their facilities beyond the free storage period.It is also looking at introducing a 150-percent surcharge on the corresponding storage rates with an increase for reefer containers.
The government-owned and controlled corporation had cited that the increase in storage charges will optimize the use of its facilities and encourage the timely withdrawal of containers which will alleviate congestion. Local business organizations have also previously thumbed down the PPA’s proposal, with groups like the Philippine Chamber of Commerce and Industry (PCCI), Philippine Exporters Confederation, Inc. (Philexport), Foreign Buyers Association of the Philippine (Fobap), Association of International Shipping Lines (AISL), and Supply Chain Management Association of the Philippines (SCMAP) expressing similar sentiments toward the rate hike. INQ
