Manila Forwarder, In The Forefront of Government Compliance

Manila Forwarder, In The Forefront of Government Compliance

by Manny Paez on Sunday, February 27, 2011 at 9:11pm

Manila Forwarder, In The Forefront of Government Compliance

Manny Paez

Putting most of the balikbayan box industry executives in one place to discuss the future of balikbayan box is not an easy task.

However, it is now happening with the cooperation of majority of industry members. In the last Pilipino America Shippers Association ( PASA ) meeting held at FACLA on the Historic Filipino Town, a brighter future for the balikbayan box industry is starting to emerge.

There is a big variance in the pricing in the balikbayan box industry because, each company’s cost varies.

Companies offering low prices are non-compliance with the general requirements of the United States and Philippine government and these are being passed on to the consumers who are unaware of the situation they are getting into. Uneducated consumers are only after the low prices and as long as their balikbayan boxes are getting delivered, all is fine with them.

This line of thinking bites!

Thousands of our kababayans have been victimized by these low-end companies and their balikbayan boxes have been sold to some other enterprising individuals in the Philippines.

Their balikbayan boxes are now gone and leaves a blemish in the industry.

It is sad to say that these people who patronized those companies was misinformed or refused to accept the information that has been placed in front of their faces for years.

Their balikbayan boxes got delivered the first few times anyways, why would they believe the other balikbayan box companies who perhaps just want to charge more?

Most balikbayan box company owners are hard working Filipinos who immigrated to the United States who just want a part of the American Dream. Majority are former balikbayan box agents of other established company who decided to try their own luck in putting their own business.

Unfortunately, some are just recycled scam artist who just change their company’s name every time they get burned.

Both however will not cut the American Standards.

American consumers must be protected and to provide such protection requires money and knowledge.

The United States Federal Maritime Commission requires balikbayan box companies to have enough capitalization to engage in this business. They also require at least three years of experience to be knowledgeable with the laws and regulations of shipping.

Some balikbayan box companies go around these requirements by selling their shipments to other licensed companies who does the shipments for them. These companies, called “Master Loader”, let other companies use their license.

The Philippine Government on the other hand, through the Philippine Shipper’s Bureau, also requires companies to engage in this business substantial capitalization before they can be accredited.

Both requirements are of course for the protection of the consumers. Without such accreditation, consumers are at the mercy of the company that they will choose.

It’s cheap. However, there are laws being violated here. The competition is also not fair as they get away with other expenses that other established companies are paying.

A recent check with the Philippine Shipper’s Bureau only shows Manila Forwarder Phil, Inc as the only USA-based balikbayan box company with filed and valid accreditation.

Manila Forwarder USA Corp is also one of the few balikbayan box companies that are accredited by US Homeland Security. Regular security training modules and security updates are given and immediately implemented by Manila Forwarder USA Corp.

Manila Forwarder is headed by Manny Paez who studied Graduate Studies in Criminal Justice from California State University and a former US military with specialty in Counter-Terrorism. He was also a member of the Metropolitan Police Force in the Philippines.

Now how do you protect yourself as a knowledgeable consumer?

Ask for you balikbayan box companies accreditation. Visit or call the company’s head office office before patronizing them. If they are a one-man operation, ask them why? If you call their Manila Office and it’s a different name, ask them why?

And please, do call not a balikbayan box company looking for the cheapest rate. Ask what you deserve first, your protection as a United States’ smart consumer. A gallon of gas is now almost five bucks.

PASA – Pilipino American Shippers Association, Bringing back the Integrity of Balikbayan Box Industry

PASA – Pilipino American Shippers Association, Bringing back  the Integrity of Balikbayan Box Industry
Manny Paez 

Last January 14, 2011, the Pilipino American Shippers Association of balikbayan box industry in California had their meeting at the Manila Forwarder office in Eagle Rock Blvd, Los Angeles, CA.

The event was attended by Philippine Trade Representative Hon. Archimedes Gomez who mentioned the complaints the Philippine Department of Trade and Industry has received due to unscrupulous balikbayan box company providers. He also assured that the Philippine government will do its part in regulating the industry.

Various ideas was exchanged to protect the consumers and the industry itself both in the USA and Philippine –side.

On the Philippine-side, the governing agency of the balikbayan box industry is Philippine Department of Trade and Industry’s Philippine Shipper’s Bureau.  The Philippine Government has no recourse against balikbayan box companies who fails to deliver if the company is not accredited by PSB.  It can only order a “cease and desist to operate order “, which will be too late for the consumers.

The solution to this, as per discussion, is that US-based companies should open their own operations in the Philippines. This however, is unfair to those companies who are just starting up. Opening a freight forwarding business in the Philippines or in any part of the world is capital intensive.

One solution that was brought up was that Philippine-based companies who will accept the balikbayan box cargoes of a foreign principal must post a bond to effect clearing and deliveries of balikbayan boxes if the foreign principal failed to pay their Philippine counterpart.

One of the reasons why a balikbayan box is not being cleared thru customs or not being delivered is because the US or any foreign company fails to pay their Philippine counter part.  These have been prevalent due to cut-throat competition, offering low prices even beyond ones cost.

On the US-side, regular speakers will be invited to educate all of the members in various US Government regulations and opportunities. This will include US Homeland Security, US Department of Commerce, US Small Business Administration, US Internal Revenue Service, State Fund, OSHA, among others.

Although there was a last minute change in the location of the meeting which was originally scheduled at FACLA , this did not stop more than 30 balikbayan box industry movers and shakers to attend.


It is notable to state that Mr. Joel Longares of Atlas Shippers and Mr. JP Carino of Forex were both in attendance and provided pointers and tips for everyone.

One of the points that was agreed upon was the weight limit of balikbayan boxes. For safety and government regulation ( OSHA and Worker’s Comp ) purposes, balikbayan boxes and jumbo boxes from customers should weigh less than 150 lbs., The term “ buhatable” can be used to put humor in implementing this weight restrictions. The whole group will reject such heavy shipments.

As an alternative, heavy items can be split into various boxes and not just one. It is also notable to remind the consumers that there is a Philippine Bureau of Customs balikbayan circular restriction of sending items that is more than 12 of a kind.

For a complete list of illegal and or restricted items for shipping, please visit:

http://www.manilaforwarder.com/restrictions.html
.

Next PASA meeting will be on February 23, 2011 at 5 PM sharp in FACLA located at 1740 W Temple St,  Los Angeles. CA. All balikbayan box company executives are encouraged to attend.