PCCI Calls on the Government for the Timely Issuance of the Joint Administrative Order to Reduce Logistics Costs and Improve Port Efficiency

Business group supports BOC’s lead role in advancing a more transparent and efficient logistics regulatory framework

Short link: https://wp.me/paaccn-10Oh

MANILA, August 11, 2026 — The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, on Monday, August 10, called for the immediate signing of the Joint Administrative Order (JAO) that will strengthen the Bureau of Customs’ (BOC) lead role in implementing an inter-agency regulatory framework for international shipping lines, container yards, and other logistics service providers.

For decades, Philippine enterprises have grappled with high logistics costs, non-transparent ancillary charges, and recurring port congestion — persistent constraints that have undermined the country’s trade competitiveness, increased the cost of doing business, and ultimately burdened Filipino consumers.

The draft JAO, which has completed its public consultation process and is now undergoing final review by the concerned government agencies, directly addresses these long-standing industry concerns.

Among its key provisions, the JAO requires shipping lines and other covered entities to report all applicable charges to the BOC, which will standardize the nomenclature of logistics fees and oversee the regulation of allowable charges and fee limits under the framework. It also mandates the refund of container deposits within 15 days from the return of containers and prohibits shipping lines from withholding cargo over unpaid charges arising from separate transactions.

In addition, pending the determination of a permanent benchmark, a 75% yard utilization threshold will guide the implementation of decongestion measures to improve port efficiency.

PCCI President Perry L. Ferrer emphasized the urgency of the measure, noting that excessive logistics costs have long eroded the competitiveness of Philippine enterprises.

“The JAO is a long-overdue solution to the excessive and non-transparent fees that have burdened our industries for years. We urge the Department of Finance (DOF), Department of Transportation (DOTr), Department of Trade and Industry (DTI), the Bureau of Customs (BOC), and the other concerned agencies to finalize and sign the order without further delay. Every day of delay prolongs the burden on businesses and consumers,” Ferrer said.

Credit for image, PCCI on X (former Twitter).

Ferrer expressed full confidence in the BOC’s capacity to lead the implementation of the new regulatory framework, citing the agency’s continuing reforms under Commissioner Ariel F. Nepomuceno.

“JAO is a critical first step toward comprehensive logistics reform”

“Commissioner Nepomuceno’s reforms have helped foster a more transparent, predictable, and rules-based trading environment. We believe the Bureau of Customs is well-positioned to lead the implementation of this important reform, working closely with the other partner agencies,” Ferrer added.

PCCI Vice President for Industry Bryan L. Ang echoed the call, highlighting the tangible benefits the JAO would bring to Filipino businesses and households.

“By addressing excessive logistics costs and promoting greater transparency and accountability across the supply chain, this JAO responds to long-standing concerns raised by the business community. Its effective implementation will help businesses operate more competitively while ultimately benefiting consumers through more efficient and transparent logistics services,” Ang said.

Ang noted that over the years, the proliferation of numerous ancillary shipping charges has significantly increased the cost of importing goods, with some importers reporting logistics costs rising from around ₱30,000 to well over ₱100,000 per container.

“These additional costs are ultimately passed on to Filipino consumers through higher prices. The JAO is a critical step toward ensuring that logistics charges remain fair, transparent, and justifiable while strengthening the competitiveness of Philippine trade,” Ang explained.

The current draft JAO builds upon earlier proposals to strengthen oversight of international shipping practices and is being advanced by the BOC as part of broader efforts to modernize customs administration, improve transparency, and reduce trade bottlenecks. The government is targeting its issuance ahead of the seasonal increase in cargo volumes later this year.

PCCI reaffirmed its commitment to working closely with the Bureau of Customs and other government agencies to improve trade facilitation, address cargo congestion, reduce logistics costs, and strengthen customs administration for the benefit of Philippine enterprises and Filipino households alike.

PCCI believes the JAO is a critical first step toward comprehensive logistics reform that will enhance the country’s competitiveness, attract greater investment, strengthen supply chain resilience, and help lower the cost of goods for Filipino consumers.

The Chamber urged all concerned agencies to seize this opportunity to deliver a more transparent, efficient, and globally competitive logistics system that supports sustainable economic growth and job creation. (/)

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