When transacting with a freight forwarding company, the most important thing to look for is their accreditation papers. It is not new in the business that there are dummy or fly-by-night freight forwarding companies in the Philippines. These companies may be registered entities but are not necessarily qualified to operate as a freight forwarder.
A legitimate freight forwarder in the Philippines follows the accreditation process of the Fair Trade Enforcement Bureau – Business Licensing and Accreditation Division under the Department of Trade and Industry. This process is pursuant to Philippine Shippers’ Bureau Revised Rules on Freight Forwarding (PSB Administrative Order No. 06, S. 2005).
The accreditation requires freight forwarding companies to submit the following documents for accreditation:
SEC Certificate of Incorporation and the Articles of Incorporation
The category being applied for should match the primary purpose of the business as stated in the certificate. Otherwise, DTI will allow the applicant to facilitate the revision with SEC. The applicant will be issued a provisional accreditation within 90 days.
Audited Financial Statement with a Minimum Paid-Up Capital Requirement
Non-Vessel Operating Common Carrier (NVOCC) Php4,000,000.00 International Freight Forwarder Php2,000,000.00 Domestic Freight Forwarder Php250,000.00
- Copy of the recent Mayor’s Permit, BIR Certificate of Registration and SSS Certificate of Membership
- List of Corporate Officers, Bio-Data (with prescribed DTI format) and Passport size pictures. An officer must have a 3-year experience in the shipping, freight forwarding or related businesses.
Proofs of cargo insurance coverage (i.e. Photocopy of insurance policies)
These are just a few of the many requirements for the accreditation. This process ensures that cargoes are in capable hands of accredited entities. The Certificate of Accreditation is valid for 2 years from the date of issuance and shall be renewed prior to expiration.
Why is it important to transact with an accredited freight forwarder in the Philippines?
Recognition by other Government and attached agencies
The Certificate of Accreditation from DTI is duly recognized by other Government agencies like the Bureau of Customs. Its offices all over the Philippines honor this certificate and there is an assurance of smooth clearance of your cargoes in terms of the legitimacy of the supporting documents for your shipment.
- Legal claims in case of losses, theft and damages
When you transact with a fly-by-night freight forwarder, chances are, you have no legal claims against them when the need arises. The incidence of loss or theft is also highly likely.
- Consumer Protection
The Certificate of Accreditation is also a protection for businesses and consumers transacting with freight forwarders. Any complaints must be submitted and will be attended to by the DTI-PSB. DTI releases blacklisted freight forwarders as they release a list of accredited ones.
- Proven track record
Accredited freight forwarders have a proven track record for their service. You can have an assurance that these are experts in the business as they have proven the same when they applied for the accreditation.
- Wide network domestically and internationally
Your business does not only need to cover local shipments but international too. That is a good indicator that your business is growing. An accredited freight forwarder can also engage in booking and arranging your international shipments aside from the local ones.
Accredited forwarders also secure freight insurance for your cargoes and they have the financial capacity to indemnify you when unavoidable risks happen.
The Department of Trade and Industry releases an updated list of accredited Non-Vessel Owning Common Carriers (NVOCCs), International Freight Forwarders (IFFs) and Domestic Freight Forwarders (DFFs) on a monthly basis.
An accreditation from the government is a confidence boost to business owners who need reliable partners. Ernest Logistics Corporation takes pride to be part of this list and guarantees quality freight forwarding and management service to our clients.
How can we help you grow your business? Talk to us.