SIMIC

AFTER conducting a re-evaluation of the Philippine Port Authority's (PPA) Trusted Operator Program-Container Registry and Monitoring System (TOP-CRMS), the Anti-Red Tape Authority (ARTA) has advised the PPA to explore "cost-effective" alternatives to address potential congestion while minimizing the impact on stakeholders, reports Manilla's Business Mirror.

Initially, ARTA had recommended the pilot implementation of TOP-CRMS, which outlines the container monitoring policy of the PPA, subject to validation, last March.



However, upon the request of various stakeholders affected by the proposed regulation, the country's anti-red tape watchdog reevaluated the Regulatory Impact Statement (RIS) for the PPA's policy.



The reevaluation process is in accordance with ARTA's mandate to review proposed regulations by government agencies under Section 17(g) of Republic Act 11032, known as the Ease of Doing Business Law.



This section requires the review of major regulations with submitted regulatory impact assessments, following proportionality rules set by the Authority.



The Ease of Doing Business Law mandates that all proposed regulations of government agencies undergo regulatory impact assessment to determine if they impose undue regulatory burden and cost on the agencies and other relevant parties.



If necessary, a proposed regulation may undergo pilot implementation to assess its impact.



During the reevaluation process, ARTA considered valuable input and data from both government agencies and private stakeholders.



One of the key concerns was the PPA's statement during a consultation meeting in June 2023, claiming that there is currently no port congestion, which contradicts the system's intended purpose as stated in the submitted RIS.



While the TOP-CRMS is considered "preventive" for future congestion, ARTA emphasised the need to carefully consider the implementation costs for the industry.



Royal Cargo Inc CEO Michael Kurt Raeuber, a logistics firm based in the Philippines, highlighted that the estimated cost for TOP-CRMS is above PHP100 billion (US$1.8 billion), mainly due to trucking back and forth and other charges associated with about five million container movements annually.



In conclusion, ARTA's reevaluation of the TOP-CRMS calls for the exploration of cost-effective alternatives to tackle potential congestion at the port, ensuring that the industry's interests are taken into account.