Streamlining of logistics processes, bannered by the implementation of the Unified Logistics Pass (ULP), will result in savings P1.9 billion, according to Ernesto Perez, undersecretary and deputy director-general of the Anti-Red Tape Authority.
This developed as the Philippine Ports Authority (PPA) has issued new guidelines on accreditation, permit and pass for transport service providers in ports, in line with the government initiatives to rationalized the existing process.
Perez also said the ULP alone will bypass hundreds of stickers and passes from local government units, ports, economic zones and other entitles that truckers have to secure to be able to ply their route.
A World Bank study showed the streamlined procedure will reduce by 73 percent to 56 from the current 209 the number of steps and by 87 percent to 35 from 271 the number of days it would take to secure those passes.
The cost savings estimate is based on the standard cost model calculation from the tariff paid to companies and professionals/middlemen as well as the opportunity cost.
The cost will be brought down to P378 million from P2.2 billion pre-reform.
At the ULP ceremonial launch yesterday, ARTA director-general Jeremiah Belgica said the use of a unified QR Code or Quick Response Code in the entire logistics chain would facilitate transfer and delivery of basic goods and necessities across the country and lower the cost of products bought by consumers.
He added 70 percent of the cost of a product is attributable to transportation or logistical cost.
A joint memorandum circular (JMC) for the implementation of the ULP applies to all responsible officers of the relevant national government agencies and to local chief executives and offices of all cities and municipalities who will ensure alignment and consistencies of requirements and processes ULP will be piloted this month in 10 major ports and the Cavite economic zone.
Meanwhile, PPA Administrative Order No. 01-2022 signed by general manager Jay Daniel Santiago said effective Jan. 1, 2022, a Transport Accreditation, Permit and Pass for Ports or (TAPPP) will serve as a single certificate accreditation (CA), permit to operate (PTO) and vehicle access pass for transport service providers.
The new system, the AO said, rationalizes the existing process in consideration of Republic Act 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act.
TAPPP is recognized in all ports nationwide. However, this is exclusive of the commercial and technical service arrangements of port service providers and terminal operators to facilitate and expedite transactions with port users.
“This order prescribes the omnibus guidelines for transport service providers doing business or intending to do business in ports under the jurisdiction of PPA, including private ports.
This regulation is exclusive of the commercial and technical services arrangements adopted by port service providers and port terminal operators to facilitate and expedite transactions with port users,” the PPA order said.
PPA said all application for issuance of CA, PTO and vehicle access pass that are pending with PPA offices as of Dec. 31, 2021 shall be processed and issued TAPPP under this order.
The TAPPP is valid for a period of three years from date of issuance. An application for renewal shall be filed not later than 60 days before the expiration.
PPA order said the processing fee costs P10,500 while the replacement of lost or damaged TAPPP and amendment of TAPP cost P600.
In line with PPA’s digitalization and streamlining policies the application for issuance of TAPPP shall be filed only through the official PPA website.