Page 38 - SEPTEMBER 2017 A ISSUE

38 www.hello-philippines.com
PAL OFFERS TO BUILD NAIA 2 EXTENSION, BUT
GOVT CITES LEGAL WOES INVOLVING LOCATION
MANILA – Philippine Airlines has
offered to build an extension terminal
for the Ninoy Aquino International
Airport’s Centennial Terminal, which
the government had committed to
improve.
Government welcomed the move on
Wednesday, but said “progress of any
discussion in this regard is remote at this
time because the area being considered
is subject of a long standing legal case.”
The location referred to is the site of the
now-defunct Philippine Village Hotel,
the former Nayong Pilipino complex
and a property owned by the Philippine
Amusement and Gaming Corporation
(PAGCOR).
The PAL offer was revealed by the
PCCorCp, Rapopcrkowveelsl-MJitTsuI-iMdigehatlys
MANILA – The Philippine Competition
Commission (PCC) on Tuesday (August
29) approved the acquisition by Japan
Tobacco (Philippines) Inc. (JTPI) of Mighty
Corporation, as well as the joint venture
by Rockwell Land Corporation and Mitsui
Fudosan (Asia) Pte. Ltd.
PCC found both transactions are not
likely to result in anti-competitive effects in
the market.
“There appears to be no ability nor
incentive for the parties to engage in anti-
competitive coordinated behavior,” PCC
said.
“Sufficient competitive constraints
remain from other market participants
after the sale,” it added.
In the transaction, JTIP will own the sales
& distribution network, manufacturing
& equipment and inventories of Mighty
Corporation, while JT International SA
(JTI SA), an affiliate of JTIP, will own the
trademarks and associated intellectual
property of Mighty Corporation and Wong
Chu King Holdings Inc.
JTIP is a company engaged in the
business of importation, manufacturing,
distribution and marketing on wholesale
basis of tobacco products; while JTI
SA is a global company engaged in the
manufacture and sale of tobacco products.
flag carrier’s president Jaime J. Bautista,
who addressed the Management
Association of the Philippines (MAP).
PAL wants to build a P20-billion
(US$400-million) passenger terminal
beside its current hub at the NAIA
Centennial Terminal 2 to expand
capacity and dramatically improve
passenger convenience.
In his MAP presentation, PAL’s
Bautista showed an architect’s
perspective of PAL’s proposed annex
building. He said the terminal would
be designed to handle 12 to 15 million
passengers per year and would have
aerobridges capable of serving 12 to 17
wide-bodied and single aisle jets.
Bautista said NAIA Terminal 2 which
First page of the PCC
resolution clearing
Japan Tobacco’s buy-
in into Mighty Corp.
JTI came into the picture just as Mighty
Corp. wrestled with Philippine authorities
over a multibillion-peso tax evasion and
fraud case over its alleged use of fake excise transacting business with the
tax stamps. The Department of Finance
accepted Mighty’s offer of a P25-billion
settlement, but stressed that such did not
preclude filing of criminal charges later
against certain company officials.
As for Rockwell and Mitsui Fudosan’s
joint venture, the firms are set to engage
in the development, construction and sale
of real estate projects in the Philippines
through the joint venture company,
Rockwell MFA Corporation (RMFA).
Rockwell and Mitsui Fudosan shall
purchase and subscribe to shares in
RMFA, where 80% of the total outstanding
shares of RMFA will be held by Rockwell
and twenty percent (20%) of the total
outstanding shares of RMFA will be held by
MFA indirectly through its wholly-owned
Philippine subsidiary, which is in the
process of incorporation with the Securities
and Exchange Commission.
PCC, the country’s anti-trust body, is
mandated under the Philippine Competition
Act to review mergers and acquisitions to
ensure that these deals will not prejudice
the interest of the consumers. n InterAksyon
| August 29, 2017, 6:07 PM
NEWS
PAL has been using exclusively since
1999, has far exceeded its maximum
capacity as it was originally built as
a domestic airport during the Ramos
administration. Constructing a new,
89,000 square-meter air terminal
(equivalent to 200 basketball courts)
north of NAIA 2 would help decongest
the airport and provide PAL passengers
much-deserved space, amenities and
modern conveniences.
MIAA: Move is welcome, but…
The Manila International Airport
Authority (MIAA), in a statement later
on Wednesday, said: “Any offer of
partnership to improve terminal 2 is
a welcome move. We are happy that
Philippine Airlines’ offer is aligned to
the government’s own plan to improve
the said terminal.”
MIAA added, though: “While this
option can be explored, progress of any
discussion in this regard is remote at this agencies like the Manila International
time because the area being considered
is subject of a long standing legal case. ”
Still, the agency assured PAL “that
we are always open to initiatives that
will redound to the best interest of
Terminal 2 users.”
The proposed annex building will
rise on a 16-hectare area adjacent
to NAIA 2, comprising of the now-
defunct Philippine Village Hotel, the
former Nayong Pilipino complex and
a property owned by the Philippine
Amusement and Gaming Corporation
BOC, DOF ink trade facilitation program for honest traders
MANILA – Honest traders
government will soon be rewarded.
This, after the Bureau of Customs
(BOC) and the Department of
Finance (DOF) signed Customs
Administrative Order (CAO)
5-2017 establishing the Authorized
Economic Operator (AEO) program.
The program gives incentives
to stakeholders with a high level of
compliance with Customs rules and
regulations. It covers the processes,
mechanism, and benefits of an AEO-
accredited stakeholder.
“Applicantsmustmeetthestandard
of reliability and trustworthiness,
File photo
September 2017 – No. 17 • UK & Europe Edition
(PAGCOR). Aside from the passenger
terminal, the complex will include
multi-level parking for 1,000 vehicles, a
new cargo terminal and ground service
facilities.
Bautista said PAL – which currently
operates at NAIA 1, NAIA 2, NAIA
3 for some of its domestic flights is
keen on the annex building project to
consolidate its operations, and provide
adequate room for its growing fleet
of jets and international and domestic
passengers. From its current fleet of 87
wide-bodied and single aisle jets, PAL
expects its aircraft count to reach 96 by doing its share to help decongest NAIA
2021.
But for PAL’s vision to succeed,
Bautista stressed that it needs
government’s full support, especially
in securing crucial land leases from
which shall be measured by its level of
risk, the nature of the business and the
conduct of its importation as against
customs revenue, compliance, and
cargo security,” according to the order.
Some of the benefits provided
in the CAO are: exemption from
renewal of accreditation; processing
and selectivity lane for AEO shipment
with no documentary, physical and
non-intrusive examination; advance
cargo clearance; one-time exemption
certificate; and expedited Customs
clearance for exports.
The program has three components:
• cargo security system which
will ensure the integrity and
security of the imported good;
• trade clearance system that enables
highly compliant stakeholders to
clear their goods with minimum
customs border intervention; and
• mutual recognition arrangement
(MRA) which provides for process
to implement and maintain mutual
recognition between two or more
Customs administrations.
Under the CAO, stakeholders
who may apply for accreditation are:
importers; exporters; Customs Bonded
Perspective of the NAIA-2 Extension
Terminal, as presented by PAL. handout
image from Philippine Airlines
Airport Autrhority (MIAA) and
PAGCOR. “We also need government
to continuously invest in building,
developing, enhancing and upgrading
airport infrstructure, not just for NAIA
but all throughout the country, as PAL
and other airlines out up more flights
and open new routes in our race for a
thriving economic future,” he said.
Bautista added that PAL has been
while stimulating air travel to the
Philippines. “We’re already building up
a new network of local and regional
flights from Clark, Cebu, Puerto
Princesa, Davao, Caticlan and Kalibo,”
he said, adding that PAL continues to
invest in the latest technology to speed
up passenger processing and aircraft
turnaround times. n InterAksyon | August 30,
2017, 7:22 PM
Warehouse (CBW) and Customs Facility
Warehouse (CFW); Customs brokers;
Non Vessel Owning Common Carrier
(NVOCC); local and international
freight forwarders with offices in the
Philippines; Shipping lines or airlines
and their agents;, authorized agent
banks (AAB); local transport operators.
Also qualified to apply for
accreditation are foreign suppliers,
manufacturers, and other entities in the
logistics and international supply chain
accredited as AEO by another country
with which the Philippines has a Mutual
Recognition Arrangement.
CAO 5-2017 serves as the
implementing rules and regulations
of Section 1227 and 1228 of Republic
Act 10863, or the Customs and
Modernization and Tariff Act (CMTA).
Meanwhile, CAO warned applicants
that any false or misleading information
in the documents submitted as well
as the commission of Customs laws
violation shall be grounds for denial of
the application.
The CAO is effective next month or
after 15 days after its publication. It was
published last Aug. 23. n Philippine News
Agency | August 28, 2017, 10:33 PM