Subic Freeport business permits now valid for 3 years

To further promote the business-friendly atmosphere in this free port and boost government efforts on transparency, the Subic Bay Metropolitan Authority (SBMA) extended the validity of business registrations here from one to three years.

SBMA Chairman and Administrator Wilma T. Eisma recently released the first batch of Certificate of Registration and Tax Exemption (CRTE) that are valid for three years, and cited the agency’s streamlining of business processes to better serve the needs of business locators.

“This has long been overdue. The previous board under Chairman Garcia promised this to locators, but nothing happened. So we made it a priority project for our 2018 program and we’re proud that after all the hard work, it finally materialized now,” Eisma said.

Eisma added that her administration’s drive for a more investor-friendly climate in Subic is in keeping with President Duterte’s orders for transparency and good governance.

“We want to make life easy for our investors, and the SBMA will continuously work towards improving its system,” she pointed out.

The three-year CRTE was approved by the SBMA Board of Directors on January 26 this year. Then a public hearing to gain acceptance by stakeholders was successfully held on February 28. The announcement of the approved measure was subsequently published on May 9.

Eisma’s office had also taken over the approval and release of CRTEs to further speed up the issuance of this important business document.

According to Kenneth Rementilla, SBMA Deputy Administrator for Business and Investments, business locators were previously required to renew their CRTE annually. But under the new system, businesses with lease terms of more than three years can avail of a three-year registration, or opt for an annual renewal.

Rementilla added that CRTE-holders in the Subic Bay Freeport can enjoy waived value-added tax (VAT), ad valorem and excise tax on internal revenue taxes, customs and import duties, and national revenue taxes, among others.

However, the business locators would have to pay a final tax of 5 percent of the gross income earned (GIE), as required by law. Of the 5 percent final tax, 2 percent is allocated for revenue shares to local government units, while 3 percent goes to the national treasury.

Among those who received the three-year CRTEs from the SBMA are Dongyang Food Machinery Philippines Corp.; Johnson Controls-Hitachi Air Conditioning Philippines Inc.; Juken Sangyo (Phils.) Corp.; and UPower Building Corporation. (RFD/MPD-SBMA)

PHOTO:

SBMA Chairman and Administrator Wilma T. Eisma joins representatives of Subic-registered companies that received their 3-year CRTE from the Subic agency. (AMD/MPD-SBMA)

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SBMA goes after debtor-firms, collects P148M

The Subic Bay Metropolitan Authority’s resolve to go after stale debts and past-due accounts of business locators in the Subic Bay Freeport is handsomely paying off in millions of fresh funds for the State-owned agency.

Figures from the SBMA Finance Group indicated that the agency collected a total of P148.6 million from rentals, sublease shares, common use service area (CUSA) fees and other accounts receivable in the last 15 months that an aggressive collection program was instituted by the new administration.

The collection included long-time debt payments by Freeport-registered companies in the amount of P101.9 million and $593,118, and housing payments of P6.5 million and $172,922.

SBMA accounting officials said some of these debts have been incurred as early as year 2000, but have remained unsettled in the past 17 years.

“This is proof that just by consistently applying existing laws and policies and actively engaging our stakeholders in Subic—listening to them and figuring out mutually-acceptable solutions, we can accomplish much,” said SBMA Chairman and Administrator Wilma T. Eisma.

“Besides, looking after the interest of the government as regards the operation of the Subic Bay Freeport Zone is a duty we cannot shirk. we have to go after those who have debts, and we have to do this decisively,” she added.

Eisma said the campaign has only met support from business executives here who understood the purpose and approved the reform measures.

SBMA records showed that a lot of indebted companies have availed of payment schemes approved by the SBMA Board of Directors, allowing them to amortize past-due accounts over a certain period of time.

Some of the biggest locators that recently made upfront payments or availed of payment schemes included the Lyceum of Subic Bay, which paid P31.5 million for both arrears and advance rent; Global Daeil Subic, Inc., which signed a payment deal for P16.6 million; and Subic Bay Yacht Club, Inc., which availed of a similar repayment scheme for P11.8 million.

Meanwhile, SBMA records indicated that the agency issued billings to business locators totalling P3.88 billion from January 2016 to December 2017. From this, the agency was able to collect P3.12 billion, thus posting a collection efficiency of 80 percent.

On the other hand, the agency recorded a collection efficiency of 83 percent for its housing accounts in the same two-year period, when it netted P167.7 million from total billings of P201.4 million.

Eisma likewise said that as part of the agency’s collection thrust, the SBMA initiated an audit last year that had so far yielded P18.3 million in new billings for gross revenue shares from several business locators in the zone.

“The audit is still on-going, and everyone in the business community here can expect that they will be treated equally and fairly within the policy framework,” she added.

Earlier, the SBMA chief announced the strict but consistent implementation of existing policies covering the use of areas and facilities leased to business locators, which are operating in Subic under a tax- and duty-free regime.

She said that along this line, the SBMA has already repossessed facilities that some business locators have left idle and unimproved, revoked the lease and development contract of investors that failed to meet their obligations, and implemented a stringent policy to collect SBMA receivables, as approved by the Board of Directors.

Eisma explained that the strict measures, coupled with the streamlining of business processes in the free port zone, are meant to improve the business climate in Subic, and foster economic sustainability and equal opportunity for all. (HEE/MPD-SBMA)

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SBMA extends free accreditation fee for container-port related businesses

The Subic Bay Metropolitan Authority (SBMA) yesterday extended its free accreditation for container-port related businesses from April 13 to December 31, 2018 to encourage more enterprises to use Subic’s container terminals and decongest Manila’s ports.

The $200 accreditation fee waiver applies to the first 80 new business entrants and the first 20 accredited entities due for renewal of their accreditation certificate.

The waiver covers ship agents, freight forwarders, brokerage firms and trucking services.

Firms with an accreditation certificate should guarantee to bring at least one container within one month from filing or renewal of accreditation certification to be entitled to the waiver.

“The free accreditation initiative received positive feedback, that’s why we are bringing it back this year,” SBMA chairperson and administrator Wilma T. Eisma acknowledged.

It’s definitely an opportunity for more firms to invest in Subic and promote the Freeport, according to Subic Bay International Terminal Corporation (SBITC) president Roberto Locsin.

SBITC, the operator of the Subic Bay Freeport, pledged to ensure support and quality service to clients using its container freight station and container terminals.

Furthermore, the initiative will decongest the Ports of Manila, broaden industry awareness of the use of the Port of Subic Bay’s Container Terminal and increase container port traffic and utilization rate.

It can also accommodate more Small, Medium Enterprises (SMEs).

The Port of Subic has two modern container terminals, New Container Terminals 1 and 2, which provide on and off-dock marine port cargo as well container handling services. (Emmie V. Abadilla, Manila Bulletin)

https://business.mb.com.ph/2018/04/13/sbma-extends-free-accreditation-fee-for-container-port-related-businesses/

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Integrity Pledge waived for renewal of locator’s permit

The Subic Bay Metropolitan Authority (SBMA) Board has issued Resolution 17-05- 2004, removing the Integrity Pledge as a requisite for renewal of a locator’s business certificate.

The resolution came out on June 15 this year.

Earlier, Brighterday Subic Ltd. Inc. (BSLI), operator of All Hands Beach, filed a petition before Branch 75 of the Regional Trial Court (RTC) challenging the requirement made by SBMA for investors to compulsorily sign the Integrity Pledge.

Mark Dayrit, Brighterday chairman, complained before the court that free port investors were being “coerced and forced” to sign the pledge for their business operations to continue.

The investors were previously required to submit the signed Integrity Pledge at least a week before the renewal or issuance of their business permit.

The RTC had issued an injunction in favor of BSLI because it found that Resolution 17-05-2004 was being implemented in an “abhorrent” manner.

It then directed the SBMA to issue BSLI’s Certificate of Registration and Tax Exemption (CRTE).

Because of the subsequent issuance of the resolution, the court dismissed the petition filed by BSLI.

In his order issued on July 26, Judge Raymond Viray of RTC Branch 75 said the petition was rendered moot and academic after the SBMA removed the Integrity Pledge as a prerequisite for business registration and renewal of permit.

Viray added that the free port asked the court to dismiss the petition of Brighterday Subic Ltd. Inc., saying the SBMA had removed the pledge from its business requirements.

The SBMA described the Integrity Pledge as a commitment to ethical business practices and good corporate governance.

On May 23, the SBMA Board passed a resolution that removed the pledge from the requisites in obtaining a certificate of registration and tax exemption.

Instead, the board decided to make the Integrity Pledge a voluntary document as a “good governance practice.” (Manila Times)

http://www.manilatimes.net/integrity-pledge-waived-renewal-locators-permit/343125/

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Subic port issues rules for shipping

THE Subic Bay Metropolitan Authority (SBMA) is introducing a new rule requiring all shippers or their designated third parties to weigh packed containers or its contents under either of two allowed methods, using equipment that meets national certification and calibration requirements.

SBMA has its own rules implementing the Safety of Life at Sea Convention (SOLAS) on verified gross mass (VGM) and weight estimation of container’s contents is hereafter prohibited.

Under the SOLAS VGM, no container will be loaded onto a vessel if it does not have a VGM starting July 1.

Under the new policy, the shipper may weigh the packed and sealed container with calibrated and certified equipment or weigh each item—including the mass of pallets, dunnage, and other packing and securing materials— to be packed in the container-and adding the tare mass of the container to the total weight of its contents. The latter method needs to be certified and approved by the National Metrology Laboratory of the Philippines (NLMP).

To implement the SOLAS VGM requirement and ensure the efficient and smooth flow of commerce, the Freeport authority advises parties in the supply chain “to make arrangements for the timely transmission and exchange of VGM information.”

Carriers should give shippers cut-off times to provide them the required container weight verification so they can prepare a ship stowage plan. These cut-off times, SBMA noted, may vary depending on the carrier as well as the operational procedures or requirements of different terminal operators.

Moreover, the weighing of a loaded container for export is to be verified by the port terminal operator through its calibrated and certified weighbridge that meets the accuracy standards and requirements of SOLAS VGM and has been approved, certified, and calibrated by the NLMP for non-automatic weighing instruments.

SBMA also requires that a packed container should not exceed the maximum gross mass indicated on the Safety Approval Plate under the IMO’s Convention for Safe Containers, as amended.

A container with a gross mass that exceeds the maximum permitted weight will not be allowed aboard a ship and will also incur shut-out charges, SBMA noted. (Raadee S. Sausa, The Manila Times)

PHOTO:
The SBMA's Seaport Department is in charge of managing the Port of Subic Bay, which has been an ISO 9001-2000 certified port in 2003 and 2004.

http://www.manilatimes.net/subic-port-issues-rules-for-shipping/280118/

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SBMA to require permit to operate from locators

The Subic Bay Metropolitan Authority (SBMA) will begin strictly enforcing on July 1 the requirement for all business locators in this free port to secure a permit to operate (PTO).

According to Stefani Saño, SBMA senior deputy administrator for business and investment development, the agency will require all locators to comply with this regulation in view of recent findings that some locators have begun operation when they have yet to comply with all the requirements.

“If you don’t have a permit to operate, you have no business operating in the Subic Bay Freeport. The rule is, you need to comply first,” Saño stressed.

“This new system is not only beneficial to the government; it is also for the protection and for the interest of private businesses here,” he added.

Saño explained that in the existing system, the Certificate of Registration and Tax Exemption (CRTE) given to new locators before they open their business is also being considered as PTO. However, as the CRTE does not spell out other requirements, like an environmental compliance certificate, the system allowed some businesses to go around these requirements.

“The new board of directors saw this flaw, so we would have to change the system and stress compliance first before operation,” he added.

Saño said the SBMA had conducted a public forum with the business community on May 31 in order to enlighten Subic Freeport locators about the new permitting system.

He added that the new business permit will be implemented by the SBMA in addition to the current regulatory requirements already in existence.

“If the businesses are compliant, the system is sustainable because there is order. This is the principle behind this,” Saño also said. (FMD/MPD-SBMA)

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