Implementing rules and regulations for amended Cabotage Law released
Business World
May 17, 2016

A JOINT DEPARTMENT Administrative Order was issued yesterday for the implementation of the Co-Loading Act or Republic Act No. (RA) 10668, also known as the amended Cabotage Law.
President Benigno S. C. Aquino III signed in July last year the amendments to the Cabotage Law which is expected to help cut logistics cost and ease restrictions, allowing foreign ships to transport, import or export cargo directly to and from any local port other than the Port of Manila.
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The circular dated May 16 and published yesterday — and signed by the secretaries of the Departments of Finance, Transportation and Communication, Trade and Industry, and Justice — sets the law?s Implementing Rules and Regulations (IRR).?
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Among the procedural sections of the IRR are Section 6 on Co-loading of Import Cargo, Section 7 on Co-loading of Export Cargo, and Section 8 on Co-loading of Empty Containers.?
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Section 6 of the IRR states that commodities of foreign origin shall be covered by the necessary import entry for consumption, warehousing or transshipment, which shall be filed at the assessment at the Port of Discharge.
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Section 7 states that commodities of foreign origin shall be covered by an export declaration and other necessary documents which shall be filed on the first port of loading.
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Section 8 of the IRR states that an empty foreign container van going to or coming from any Philippine port or foreign port shall be allowed to load or co-load from any port in the Philippines.
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Lastly, Section 12 outlined the authority of the Department of Finance, Department of Transportation and Communication, Department of Trade and Industry, and Department of Justice.
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Section 4 tackles vessels carrying foreign container vans and containerized, bulk or break bulk foreign cargoes.
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Sought for comment about the IRR, Trade Secretary Adrian S. Cristobal, Jr. said in a text message: ?The Co-Loading Act liberalizes the operations of foreign shipping companies in the domestic market. Allowing foreign vessels to consolidate their cargo while plying domestic waters will help reduce the domestic shipping and logistics costs, which will enhance the competitiveness of our exporters.?
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The IRR will take effect 15 days after its publication.?
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