PCCI Urges Immediate Signing of JAO to Cut Logistics Costs, Ease Port Congestion

The Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, has called for the immediate signing of a Joint Administrative Order (JAO) that would 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.

PCCI said the measure is urgently needed to address persistent problems that have affected Philippine businesses for decades, including high logistics costs, non-transparent ancillary charges and recurring port congestion. These issues have increased the cost of doing business, weakened the country’s trade competitiveness and ultimately contributed to higher prices for consumers.

The draft JAO has completed its public consultation process and is now undergoing final review by the concerned government agencies. Once issued, it will require shipping lines and other covered entities to report all applicable charges to the BOC. The agency will also standardize the nomenclature of logistics fees and oversee the regulation of allowable charges and fee limits under the new framework.

The proposed order would also require the refund of container deposits within 15 days from the return of containers and prohibit shipping lines from withholding cargo over unpaid charges arising from separate transactions.

To help address port congestion, the JAO would initially use a 75% yard utilization threshold as a guide for implementing decongestion measures while a permanent benchmark is being determined.

PCCI President Perry L. Ferrer stressed the need for government agencies to act without further delay, saying 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.

Ferrer also expressed confidence in the BOC’s ability to lead implementation of the regulatory framework, citing reforms being pursued under Commissioner Ariel F. Nepomuceno. “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 likewise backed the measure, saying it could deliver tangible benefits to businesses and Filipino households by addressing excessive logistics costs and improving transparency throughout the supply chain. “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 pointed to the proliferation of ancillary shipping charges as a major contributor to rising import costs. Some importers, he said, have reported logistics expenses increasing from around PHP 30,000 to more than PHP 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 on earlier proposals to strengthen government oversight of international shipping practices. The BOC is advancing the measure as part of broader efforts to modernize customs administration, improve transparency and reduce trade bottlenecks.

The government is targeting the issuance of the order ahead of the seasonal increase in cargo volumes expected later this year.

PCCI reaffirmed its commitment to working with the BOC and other government agencies to improve trade facilitation, address cargo congestion, reduce logistics costs and strengthen customs administration.

The business group said the JAO represents a critical first step toward broader logistics reforms that could enhance the country’s competitiveness, attract investment, strengthen supply chain resilience and help reduce the cost of goods for Filipino consumers.

PCCI urged all concerned agencies to move swiftly on the measure, saying a more transparent and efficient logistics system is essential to supporting sustainable economic growth, investment and job creation.


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