Philippine exporters are calling on the Bureau of Customs (BOC) to establish clear rules governing returned export shipments, warning that policy gaps are compounding losses from ongoing disruptions in Middle East and European trade routes.
The appeal comes as exporters and cargo consolidators estimate losses exceeding USD200 million in recent months due to delayed deliveries, rerouted vessels, and rejected shipments linked to geopolitical tensions in the Middle East.
Speaking on the sidelines of the United Portusers Confederation general membership meeting on June 25, Philippine Export Service Providers and Consolidators Association President Tomas Medina said the absence of a formal customs framework for returned cargo is creating additional costs for exporters already grappling with supply chain disruptions.
“While buyers may have paid for the freight going out, when the cargo does not reach its destination or arrives too late and has to be returned, all the costs are charged back to us,” Medina said.
The issue has become increasingly urgent as transit times to Europe have stretched dramatically. Some shipments that previously took a few weeks to arrive are now taking up to 100 days, significantly reducing shelf life and prompting some buyers to reject deliveries outright.
According to Medina, exporters face a second challenge once cargo returns to the Philippines. Despite remaining sealed and fully traceable, returned shipments are often processed as imports, exposing businesses to storage fees, documentation requirements, and lengthy approval processes before goods can be released or re-exported.
The situation highlights how trade disruptions are exposing procedural bottlenecks beyond ports and shipping lanes. Industry groups argue that as supply chains become more volatile, customs systems must become more responsive to exceptional circumstances affecting global trade.
Medina acknowledged efforts by Customs Commissioner Ariel Nepomuceno to expedite cargo releases but stressed that frontline customs personnel need a clear policy basis to act swiftly.
Exporters are pushing for dedicated guidelines covering the treatment, release, and re-export of returned shipments, arguing that regulatory certainty would help reduce costs and preserve competitiveness at a time when Philippine exporters are already navigating rising freight risks and unpredictable delivery schedules.
