Philippines to cut box security fees

The presidential Malacanang Palace has agreed to a compromise between port users and the Bureau of Customs (BoC) to slash container security fees to a minimum after customs rejected compulsory charges of US$50 and $25 per container last December.

This comes after President Gloria Macapagal-Arroyo signed a new order that replaces an order signed at the end of last year to introduce mandatory payment of container security fees in support of the BoC's non-intrusive container inspection system project.

The lowering of the container fee was intended to lessen the financial burden on importers and exporters of goods.

The $50 charge levied on every FEU and $25 per TEU had been reduced to $10 and $5, respectively.

All import cargo that land or are stored in piers, airports, terminal facilities, including container yards and freight stations, under BoC's jurisdiction are covered by the order.

Export cargo was initially covered by the order, but the BoC suspended charges imposed on them through a new order in March.