When transacting with a freight forwarding company, the most important thing to look for

is their accreditation papers. It is not new in the business that there are dummy or fly-
by-night freight forwarding companies in the Philippines. These companies may be
registered entities but are not necessarily qualified to operate as a freight forwarder.

A legitimate freight forwarder in the Philippines follows the accreditation process of the
Fair Trade Enforcement Bureau – Business Licensing and Accreditation Division under
the Department of Trade and Industry. This process is pursuant to Philippine Shippers’
Bureau Revised Rules on Freight Forwarding (PSB Administrative Order No. 06, S.
2005).

The accreditation requires freight forwarding companies to submit the following

documents for accreditation:

 SEC Certificate of Incorporation and the Articles of Incorporation

The category being applied for should match the primary purpose of the business
as stated in the certificate. Otherwise, DTI will allow the applicant to facilitate the
revision with SEC. The applicant will be issued a provisional accreditation within
90 days.
 Audited Financial Statement with a Minimum Paid-Up Capital Requirement

Non-Vessel Operating Common Carrier (NVOCC) Php4,000,000.00

International Freight Forwarder Php2,000,000.00

Domestic Freight Forwarder Php250,000.00

 Copy of the recent Mayor’s Permit, BIR Certificate of Registration and SSS
Certificate of Membership
 List of Corporate Officers, Bio-Data (with prescribed DTI format) and Passport
size pictures. An officer must have a 3-year experience in the shipping, freight
forwarding or related businesses.
 Proofs of cargo insurance coverage (i.e. Photocopy of insurance policies)
These are just a few of the many requirements for the accreditation. This process
ensures that cargoes are in capable hands of accredited entities. The Certificate
of Accreditation is valid for 2 years from the date of issuance and shall be
renewed prior to expiration.
Why is it important to transact with an
accredited freight forwarder in the Philippines?
1. Recognition by other Government and attached agencies
The Certificate of Accreditation from DTI is duly recognized by other Government
agencies like the Bureau of Customs. Its offices all over the Philippines honor
this certificate and there is an assurance of smooth clearance of your cargoes in
terms of the legitimacy of the supporting documents for your shipment.
2. Legal claims in case of losses, theft and damages
When you transact with a fly-by-night freight forwarder, chances are, you have no
legal claims against them when the need arises. The incidence of loss or theft is
also highly likely.

Accredited forwarders also secure freight insurance for your cargoes and they
have the financial capacity to indemnify you when unavoidable risks happen.

3. Consumer Protection
The Certificate of Accreditation is also a protection for businesses and
consumers transacting with freight forwarders. Any complaints must be submitted
and will be attended to by the DTI-PSB. DTI releases blacklisted freight
forwarders as they release a list of accredited ones.
4. Proven track record
Accredited freight forwarders have a proven track record for their service. You
can have an assurance that these are experts in the business as they have
proven the same when they applied for the accreditation.
5. Wide network domestically and internationally
Your business does not only need to cover local shipments but international too.
That is a good indicator that your business is growing. An accredited freight
forwarder can also engage in booking and arranging your international shipments
aside from the local ones.

The Department of Trade and Industry releases an updated list of accredited Non-
Vessel Owning Common Carriers (NVOCCs), International Freight Forwarders (IFFs)
and Domestic Freight Forwarders (DFFs) on a monthly basis.

Philippine Shipper's Bureau (PSB)

 Why is it necessary to accredit freight forwarders, cargo consolidators,

breakbulk agents, and non-vessel operating carriers?
In order to professionalize the freight forwarding industry and eradicate the fly-by-night
forwarders, the Philippine Shippers Bureau (PSB) is mandated under Executive Order (EO)
No. 514 and its implementing rules and regulations to implement the accreditation of freight
forwarders.

PSB Administrative Order (AO) No. 06, Series of 2005 provides that Non-Vessel Operating
Common Carrier (NVOCC), International Freight Forwarder (IFF), and Domestic Freight
Forwarder (DFF) “must be accredited first before they can legally engage in the said
categories.”

 Are couriers and truckers covered by this Order?

No. The jurisdiction of this Order covers only sea freight forwarders as stated in Rule II,
Section 3 regarding “covered firms”:

“Sec. 3. Covered firms - The five (5) categories namely: Non-Vessel Operating Common
Carrier (NVOCC), Cargo Consolidator (CC), International Freight Forwarder (IFF), Break-
bulk Agent (BBA) and Domestic Freight Forwarder (DFF) are hereby simplified into three
(3), namely: Non-Vessel Operating Common Carrier (NVOCC), International Freight
Forwarders (IFF), and Domestic Freight Forwarders (DFF) which are defined above. Non-
Vessel Operating Common Carrier includes the functions of a Cargo Consolidator;
International Freight Forwarder includes the functions of a Break-bulk Agent. These three
categories are referred to as “covered firms” under this Order; hence they must be
accredited first before they can legally engage in the said functions and/or operations.”

 I am an overseas Filipino worker (OFW). I want to send a ‘balikbayan” box

this holiday season via sea freight but a friend said it is not safe to use a
freight forwarder. Is this true?

No. By using only the services of PSB-accredited companies, OFWs are assured of safe and
efficient movement of their cargoes. In case of loss or damaged cargo, PSB can easily
assist them in claiming compensation from accredited freight forwarders.

 What is PD No. 1466?

PD No. 1466 is the Cargo Reservation Law of the Philippines .

 What is the coverage of PD No. 1466?

PD No. 1466 covers all branches of government including government-owned and controlled
corporations and those in the private sector which are beneficiaries of the loans, credits
and/or guarantee from government financial institutions.
  What does PD No. 1466 require of its covered entities?

It requires that they use RP Flag Vessels in the shipment of their export and import cargoes
whenever such vessels are available and suitable; otherwise, they have to secure a waiver
from PSB so they can utilize foreign flag vessels.

 What is the penalty for violation of PD No. 1466?

Violation of PD No. 1466 carries a minimum fine of P10,000 for shipments in the liner
service and P50,000 for shipments on chartered vessels.

 What kind of complaints may be filed with the Philippine Shippers’ Bureau
(PSB) in connection with the shipment of goods?

1. Non-delivery of shipments;
2. Loss of or damage to shipments;
3. Excessive charges by freight forwarders, shipping lines, and other service providers;
and
4. Unethical/Unprofessional conduct of freight forwarders, shipping lines, and other
service providers.

 What are the requirements for filing a complaint with PSB?

1. Signed letter of complaint; and

2. Relevant documents such as Bill of Lading, receipt for charges paid, packing list,
commercial invoice/purchase order, if any, forwarders cargo receipt, etc.

 How long does it take for PSB to mediate complaint?

Assuming all the requirements are provided by the complainant, the mediation process
takes approximately 20 days.

 What happens if there is a failure of mediation between the complainant

and respondent?

 The case will be submitted to the PSB Hearing Officers for final resolution within 15 days.