BOC mulls ₱2M bond for freight forwarders, deconsolidators

The Bureau of Customs (BOC) is eyeing to require freight forwarders and deconsolidators to post a cash bond as part of a proposed accreditation system to avoid a repeat of the non-processing or abandonment of balikbayan boxes.

During the ceremonial distribution of the unclaimed balikbayan boxes at the BOC - Port of Manila on Wednesday, BOC commissioner Ariel Nepomuceno said the proposed Customs Administrative Order, containing the guidelines on the accreditation of freight forwarders and deconsolidators, is now awaiting approval from the Department of Finance (DOF).

Nepomuceno said it would be the first time that the BOC will be setting an accreditation process for freight forwarders and deconsolidators.

“We need to have clear standards, exact parameters, and accountability measures should they fail to deliver,” he said.

“Among them is, for you to be accredited, to require them to post a cash bond… We are looking at a figure of P2 million. It’s not too big or not too small,” Nepomuceno added.

The BOC chief said the cash bond will be automatically tapped should a freight forwarder or deconsolidator fail to deliver an overseas Filipino worker’s (OFW) balikbayan box.

In December last year, the BOC began the distribution of the “first waive” of 68 out of 140 containers, which are estimated to have about 100,000 balikbayan boxes.

For the first batch, the agency processed 20,944 balikbayan boxes, of which 14,305 boxes have been delivered to their intended recipients.

For the final distribution, the BOC said 72 containers estimated to contain 24,536 balikbayan boxes are being processed.

Of this figure, 14 containers have already been released from the Manila International Container Port (MICP), while the 58 remaining are under processing pending completion of clearances.

Nepomuceno said the BOC is targeting to complete the delivery of all backlog balikbayan boxes to their respective intended consignees within March.

Case buildup 

Since 2022, the BOC has received numerous complaints and follow-ups from OFWs and their families regarding undelivered balikbayan boxes. 

The undelivered balikbayan piled up and were in storage for years in various ports in the country due to failure of both foreign-based freight consolidators and their local counterpart-deconsolidators to process the delivery of shipments upon arrival in the Philippines. 

Nepomuceno said the BOC, in cooperation with the National Bureau of Investigation (NBI), will file charges including large-scale estafa against 11 freight deconsolidators involved in the issue of abandoned balikbayan boxes. 

“We are also exploring how we can file related cases against their foreign-based freight consolidator counterparts,” he said.

He said the balikbayan boxes backlog was largely caused by foreign-based freight consolidators, who supposedly enticed OFWs with “unusually low” shipping fees and “promises of fast, door-to-door delivery.”

Nepomuceno said the consolidators collect payments abroad and ship the boxes in bulk.

Upon arrival, the consolidators failed to complete the required processing or settle charges – such as shipping line, port, storage, and handling fees.

This resulted in shipments remaining unprocessed, unpaid, and are eventually deemed abandoned, despite OFWs having already paid in full. — JMA, GMA Integrated News