As a response to the call of the President and key stakeholders, this measure seeks to amend Section 1009 of the Presidential Decree No. 1464, otherwise known as the Tariff and Customs Code of 1978 to introduce reform in the shipping industry.

Given that the Philippines is an archipelago composed of more than 7,100 islands, the transport of goods relies heavily on sea routes interconnecting the islands. Shipping is the means of transporting goods between islands and even in and out of the country. Shipping cost impacts the movement and price of traded goods.

Facilitating inter-island trade in the country has become costly and cumbersome for micro, small and medium enterprises (MSMEs). Currently, inter-island shipping is exclusively reserved for ships bearing the Philippine flag. While this helps the domestic shipping industry, the cost of shipping is hampering trade especially for the MSMEs.

This measure seeks to allow foreign ships to call in multiple ports provided that their cargoes are intended for import or export and duly cleared by the Commissioner of Customs. This would allow importers and exporters to co-load in foreign ships going in or out of the Philippine jurisdiction.

Moreover, this bill gives clarification on the definition of common carriers and public service in the shipping industry. With this bill, foreign cargoes shall not be subjected to the law concerning common carriers and public services as defined in the Civil Code and the Domestic Shipping Development Act, respectively.

MSMEs who are importing or exporting goods will be able to access a cheaper alternative in transporting their goods through co-loading in foreign ships. Ultimately, this leads to lower prices of goods for the Filipino public.

In view of the foregoing, the approval of this bill is earnestly sought.

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