The country's exporters are expected to benefit from a recent decision by the Philippine Ports Authority (PPA) to reduce by 50 percent the wharfage fees it collects on each container of export shipment until the end of December 2009.

This was in response by PPA general manager Oscar M. Sevilla to an appeal earlier made by Philexport president Sergio R. Ortiz-Luis seeking for a cut in government charges on export shipments.

Savilla said that in its latest meeting, the PPA board of directors “reconsidered the request of PHILEXPORT and has approved the reduction by half of the Export Wharfage Fee until December 31, 2009."

The decision will take effect 30 days upon the publication of the implementing rules of the decision in a national daily newspaper. The notice was published on August 14 and will therefore be effective on September 13.

When the new rates will be in force, exporters are expected to cut wharfage fee for a 20-foot container from P259.70 per container to P130.35 and that for 40-foot containers at P952.22 to half of that amount.

The issue on high port charges was repeatedly being raised by PHILEXPORT as one of the factors that have contributed to the erosion of the competitive advantages of Philippine products in comparison to similar products from competitor nations.

A study made by an independent group had found that wharfage fees charged by the government has already been small as part of the average of P1,500 per container that exporters have to shell out for every container that they ship to destinations abroad.

The bulk of the local charges were traced to private shipping lines that slapped so many fees to shippers that ranged from advanced deposits on the use of containers, to port handling fees, to cleaning fees after the containers are returned.

The unregulated imposition of allegedly “unnecessary” charges by shipping lines plying international routes in our seas was brought to the attention of PHILEXPORT and the Export Development Council (EDC) by groups of exporters whose experiences lived with the result of the independent research study.

In response, the Maritime Industry Authority (MARINA) has drafted an executive order for approval by President Arroyo to put the international shipping lines under its regulation as recommended by the EDC.

The draft order was forwarded by EDC executive director and concurrent head of the Bureau of Export Trade Promotion Senen Perlada to DTI Secretary Peter Favila for presidential decision.

Taking a stand on the regulation of domestic charges made by international shipping lines, the PPA said it would be better for MARINA to simply “supervise” not directly regulate, the fees they impose on export shipments.