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Business February 1, 2026

BOOM or BUST? Bank of Canada Fee Hike THREATENS Exports!

BOOM or BUST? Bank of Canada Fee Hike THREATENS Exports!

A looming increase in customs service fees threatens to significantly burden Philippine exporters, sparking concern within the industry. The proposed changes stem from the introduction of a new customs processing system, intended to modernize operations but potentially at a steep cost.

While acknowledging the need for streamlined and digitized government processes, exporters are voicing strong opposition to the proposed fee hike. Initial reports suggest a substantial jump in costs, though specific details remain elusive due to a lack of transparency regarding the full proposal.

Currently, exporters navigate a relatively modest fee structure: P45 for cargo data exchange, P40 for container management, and P55 for import permits. Additional fees of P18 and P23 apply for electronic manifests via sea and air, respectively. These established costs are now facing potential disruption.

Industry leaders warn that any increase in these fees will directly translate to higher prices for goods and services, eroding the competitiveness of Philippine exports in the global market. The impact would be felt across numerous sectors, hindering economic growth.

A critical call has been made for a thorough regulatory impact assessment (RIA) by the Anti-Red Tape Authority before implementation. This assessment is vital to determine the system’s viability and its effect on trade and economic development.

Furthermore, there’s a strong argument that the Bureau of Customs should absorb or subsidize the costs associated with developing and deploying the new system. Modernization efforts, it’s argued, are public investments designed to benefit the entire trading community and bolster national competitiveness.

Exporters are also demanding greater transparency, specifically requesting a detailed breakdown of the proposed fee structure. This scrutiny aims to identify and eliminate any potential duplicate or unnecessary charges embedded within the new system.

The proposed system is designed to replace the existing E2M system, addressing long-standing issues such as slow response times, notification failures, encoding errors, and limitations in document handling. Stakeholders previously voiced these concerns, prompting the need for an upgrade.

A preliminary consultation was held last month, with exporters participating to voice their initial concerns. However, a further public consultation is being requested, one that occurs *after* the service provider is selected, to ensure a fully informed discussion and a fair assessment of the financial implications.

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