MANILA – Unrealistic cutthroat prices by cargo forwarders are to blame for the spate of undelivered 'balikbayan' boxes, the Bureau of Customs said on Monday.
Commissioner Rufino Biazon told InterAksyon.com that freight forwarders are driving down their rates to attract more customers, who end up not receiving their packages because the cargo handlers are unable to settle taxes and duties due on the shipments.
He said many cargo forwarders failed to settle the taxes and duties on their container shipments starting last year, as most of these firms engaged in price undercutting so they can attract more overseas Filipino workers to avail of their services.
The standard fee for a balikbayan box is $100, inclusive of taxes and duties, but some cargo forwarders have been offering their services for as low as $50 a box, Biazon said.
"Then when the cargoes arrive at the ports, the forwarders have no money to pay the taxes and duties because they are charging unbelievably low [rates] to their customers. The cargo forwarder's failure to pay the taxes and duties is the reason why they are blacklisted," the Customs chief said.
"As a policy, the containers may only be released once the consignees have paid the corresponding taxes and duties of these containers. We don’t release unless the consignee fulfills its obligation. These cargoes, which include balikbayan boxes, are consolidated in one container, and the basis of the taxes and duties is per container and not per box," he said.
The consignee, which is the cargo forwarder, has 30 days to settle the taxes and duties, failing which Customs would forfeit the shipment in favor of government and auction it off.
InterAksyon.com earlier reported that the Department of Trade and Industry-Philippine Shippers' Bureau has blacklisted a number of cargo forwarders and their foreign partners because of consumer complaints on undelivered balikbayan boxes.
The blacklist was released just as OFWs began shipping home balikbayan boxes for the Christmas season.
The DTI-PSB has since revised the blacklist, removing some forwarders that addressed customer concerns and adding others that are the subject of similar complaints.
source: interaksyon.com