A Thesis
Presented to the Faculty of
College of Accountancy, Business, Economics and
International Hospitality Management
Batangas State University
Batangas City
In Partial Fulfillment
Of the Requirements for the Degree
Bachelor of Science in Customs Administration
By:
Ermita, Sherry B.
Fajutag, Mary Joy M.
Garcia, Merryl A.
Manalo, Monica C.
2016
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APPROVAL SHEET
____________________
Prima C. Delizo, CB
Adviser
PANEL OF EXAMINERS
_____________________________
Elisa S. Diaz, DBA, CPME, CMTIP
Chairperson
__________________________ _______________________
Richmond A. Marasigan, CB Amelia D. Comia, MAEd
Member Member
______________________ ______________________________
Date Elisa S. Diaz, DBA, CPME, CMTIP
Dean, CABEIHM
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ACKNOWLEDGEMENT
The researchers would like to extend their deepest and sincerest gratitude to
the following persons who have helped and supported much for the completion
Marasigan for giving constructive criticism and important suggestion that helped
To the statistician, Assoc. Prof. Realiza M. Mame for helping to interpret and
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support needed during critical stage of the study.
To their family, most especially their parents, who have been very supportive
and understanding in pursuing this thesis, for encouraging them to do so well and
Above all, the researchers give glory to Almighty God for giving them
Sherry
Mary Joy
Merryl
Monica
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TABLE OF CONTENTS
TITLE PAGE
TITLE PAGE..i
APPROVAL SHEETii
ACKNOWLEDGEMENTiii
TABLE OF CONTENTS.v
LIST OF TABLESvii
LIST OF FIGURES.viii
ABSTRACT..ix
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Respondents of the Study.35
Data Gathering Instruments..35
Data Gathering Procedures..37
Statistical Treatment of Data.38
BIBLIOGRAPHY
APPENDICES
Letter of Request
Statistical Treatment of Data
Questionnaire
CURRICULUM VITAE
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LIST OF TABLES
TABLE NO. TITLE PAGE
4.1.1 Distribution of Brokerage Firms in Terms of
Kinds of Business Organization...40
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Brokerage Firms in Terms of Number of
Years in Operation59
LIST OF FIGURE
FIGURE PAGE
1 Conceptual Framework6
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ABSTRACT
the selected customs brokerage firms in Manila, Batangas and Cavite to further
study aims to answer certain questions. The first question is about the profile of
brokerage firms in terms of import entry document operation, filing of bad order
agencies, delivery of goods and providing legal and technical advices. The last
the brokerage firms. The statistical treatments used in the study were
test.
The study found out that majority of the brokerage firms were sole
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The result exhibited that all of the respondents agreed that there were
challenges in import entry document operation, filing of bad order or short landed
significant. The rest of the variables affirms the null hypotheses that there is no
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Chapter I
THE PROBLEM
Introduction
This type of trade gives rise to a world economy, in which prices, or supply and
demand affect and are affected by global events. Trading globally gives
not available in their own countries. A product that is sold to the global market is
an export, and a product that is bought from the global market is an import.
Historically, the Philippines have been an important center for commerce for
centuries for its ethnic minority. The archipelago has been visited by outlanders
for the purpose of trading in the first and early second millennium. As of 21 st
brokerage has a vital role for without it, importers or exporters who lack time and
unfamiliar with customs rules and regulations could not transact their business
efficiently.
customs brokers and their accredited firms are the ones authorized to transact in
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document for imports and exports, declaration and payment of customs duties
and taxes, and processing of import and export entries (Republic Act No. 9280).
customs brokerage are in need to meet the demand of international trade. As the
customs brokerage firms render their services, it is impossible for them not to
sometimes due to the miscommunication and short period of time given to the
exporter/importer and the firm that keep their shipments moving through customs
and across boarders which is one of the main source of the revenue of our
country. That is why the researchers decided to conduct this study to propose
the provision of the Republic Act 9280. In the process, an importer or exporter
gets the customs brokerage firms to act as his agent in behalf of them with the
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Bureau of Customs. The brokerage firm prepares the necessary documents and
processed those documents at the BOC. It is also a business working for the
release of shipments from BOC custody until delivery to the importers house.
The researchers came up with this study due to the problems they heard
from some customs brokers they interview who are working in a brokerage firm.
goods, lack of facilities and delayed payment. From there, the researchers wants
to find out and recommend solutions to lessen the problems they encountered
by a brokerage firm and how they deal with their challenges. Knowledge on
problems encountered would help them foresee and prevent arising of problems
and it would also serve as a basis in planning possible solutions for more
effective delivery of service. The mentioned reasons serve as the purpose of the
study.
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regards to:
2.1. import entry document operation;
2.2. filing of bad order or short landed claim and processing;
2.3. payment of charges to government agencies;
2.4. delivery of goods; and
2.5. providing legal and technical advices?
3. Is there a significant difference on the challenges encountered by the customs
brokerage firms when the respondents are grouped according to their profile
variable?
4. What recommendations may be proposed to lessen the problems?
Theoretical Framework
filing of bad order or short landed claim and processing, payment of charges to
advices.
As defined legally by Republic Act 9280, a customs broker is any person who
Similarly, the practice of the customs broker is correlated to the practice of the
Customs brokers are tasked to prepare and process import and export
pilferage; pay or arrange for payment of taxes and duties on shipments; post
bonds for the products being imported or assist clients in obtaining bonds; clear
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good through customs and to their destinations or client; arrange for
routes; and advise customers on import and export restrictions, tariff systems,
(www.myplan.com/careers/customs-brokers/description-13-1199.03.html).
Conceptual Framework
model. For clearer understanding of this study, the researchers adopt the Input-
this research wherein the variable taken into consideration was shown.
In this study, the researchers put in the input box the profile of the brokerage
tried to find out the problems encountered by the customs brokerage firms with
regards to: import entry document operation; filing of bad order or short landed
The information of the input will be collected by means of the process of the
study where the researchers conducted different data gathering procedures like
survey questionnaires and data analysis. The selected brokerage firms in Manila,
Batangas and Cavite were subjected to the said procedures. The information
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The expected output were propose recommendation to lessen the problem.
Input Process Output
Profile of respondents:
kind of business
organization;
number of years
in operation;
number of
employees;
capitalization;
and
location
Survey
Challenges encountered Questionnaire Propose
by customs brokerage recommenda -
Data Analysis
firms: tion to lessen
import entry the problem.
document
operation;
filing of bad
order or short
landed claim
and processing;
payment of
charges to
government
agencies;
delivery of
goods; and
providing legal
and technical
Figure 1
Conceptual Paradigm
Research Hypothesis
customs brokerage firms when the respondents are grouped according to profile.
The researchers believed that that the results and findings of this study will
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To the Customs Brokerage Firms, this study provides possible solutions
can enhance their quality of services to determine the problem and makes
recommendations.
considering that customs brokerage firms plays important role in processing and
releasing shipments.
additional reference that can provide some information related on similar nature.
This will also provide information as a reference in the study that they will be
conducted.
aware of the services of the brokerage firms and the problems they encounter
To the future researchers, they could use this study as another source of
information or basis that will help them to conduct their own research related to
this study.
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Scope and Limitations of the Study
brokerage firms. The researchers will choose some customs brokerage firms in
Manila, Batangas and Cavite as their respondents. The researchers believed that
this study would show the challenges encountered by a customs brokerage firm.
The target respondents in this study will be limited to only 30 brokerage firms
located in Manila, Batangas and Cavite. The questionnaire will cover the profile
This study will be limited only to the subject investigation of the calendar year
2015-2016.
Definition of Terms
however, technical terms were given their conceptual and operational definition.
(Thefreedictionary.com). In this study, it refers to the entity that provide their client
cost.
Customs Broker. This refers to a bona fide holder of a valid license for
custom broker and also a holder of a valid certificate of accreditation from the
BOC (Llorando, 2006). In this study, it refers to the one who is knowledgeable in
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Importer. This refers to a person primarily liable for the payment of duties
owner of the goods if the actual owner is not known fictitious (Llorando, 2006). In
this study, it refers to the one who is seeking assistance to the brokerage firms in
consignment to the consignee at the agreed place (Llorando, 2006). In this study,
this refers to the process of taking or giving the goods to the importer.
Examination and Appraisal for the Release of Goods. This refers to the
condition, quantity, and value of the goods conform with the particulars declared
when appraised (Llorando, 2006). In this study, this refers to the filing of an
bear on imported goods, such as invoice, bill of lading, packing list, phytosanitary
2006). In this study, this refers to the processing of documents in order to effect
an importation.
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the employee to the client (Llorando, 2006). In this study, this refers to the
of payment wherein the buyer can only receive cargo upon actual payment of
charges to the required government agencies (Llorando, 2006). In this study, this
refers to the payment of customs duties and taxes and other charges.
Chapter II
REVIEW OF RELATED LITERATURE
This chapter presents the conceptual and research literature used by the
researchers. From books and past studies which were believed to be relevant to
the present study necessary for the validity of the findings. This part was
consistent of two (2) parts. The first part contained the conceptual literature,
which was the basis of the framework of the study. The second part was the
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Conceptual Literature
for imports and exports; declaration of customs duties and taxes; preparation,
signing, filing, lodging, and processing of import and export entries; representing
importers before any government agency and private entities in cases related to
professional services in matters relating to customs and tariff laws, its procedures
and practices (Republic Act [RA] 9280 or Customs Brokers Act of 2004, Section
broker, applicants must pass a written examination that tests their knowledge on:
(a) customs laws and implementing rules and regulations; (b) tariff laws and
procedures and practices; and (e) warehousing and cargo handling operations
As defined legally by Republic Act 9280, a customs broker is any person who
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Regulation Commission, who is credited to transact to the Bureau of Customs.
Similarly, the practice of the customs broker is correlated to the practice of the
prestige or goodwill of the brokerage firm before the public, ability to draw
customers, ability to bid from shippers efficiency if all personnel from manager
down to the lowest employee and frankness and honesty in delivery of goods
clearing a shipment through customs accordingly for any duties, taxes, fines or
penalties payable. In the importation process, goods are cleared through the IED
required for processing of the entry for customs clearance (Llorando, 2006).
internet through the use of the Value Added Service Provider (VASP) front-end
system. The objectives of the lodgement of entries thru VASP are the following:
monitor and control the entry of all types of imported goods, i.e., non-commercial
goods, commercial goods, semi-finish goods and regulated goods to monitor the
cargos status all throughout the clearance and release process and to promote
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adopted standards (CMO 19-2007).
them from the issuing/regulatory agencies. The enforcing authorities will check
clients and stakeholders, both internal and external and will include exporters,
other government agencies, and private entities that conduct business with the
cannot be processed unless the client is duly registered with the CPRS.
Registrants shall register in CPRS for every role they will assume in their
transactions.
Assessment Notice contains the essential details of the declaration with the
Documents and assigns stamps the appropriate section in the Formal Entry. After
that, the Entry Documents will be forwarded to the assigned section in the Formal
Entry Unit.
required in opening a Letter of Credit and it is only valid for only seven (7) days
from the date the payment instruction is generated. Beyond this, an IED
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Filing of Bad Order or Short Landed Claim and Processing. According to
Manual on Cargo Clearance process, the importer who received Error message
should resolve the error/s through Value Added Service Provider and re-file
application as soon as the error/s are solved so the Account Management Office
Registration System.
The following documents by themselves are not sufficient for a claim: bad
Cargo Loss and Damage Claim, a copy of the Bill of Lading or the Delivery
receipts, a copy of your Suppliers Invoice showing your cost of the damaged or
lost items or a copy of your invoice for repairs made to restore the merchandise
to its original condition and a Letter of Intent (a letter stating that you wish to
(http://www.comox- pacific.com/forms/CPECargoLoss.pdf).
There are several things that the agency should do when a claim is
presented. First, the Notice of Claim must be time reported to the insurance
a timely manner so that no default judgment is entered against the insured. Third,
another insurance company or party. Fourth, the initial claim reporting process
features/2009/09/221/158737.htm).
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Payment of Charges to Government Agencies. The new payment system
involves the use of both cash and non-cash payments, both transacted and
stored electronically, for either advanced or final settlement of duties and taxes.
Declared non-cash payment accounts are utilized first by the system during
generated by the system and is sent over the importers bank. The final payment
ports assessment division. The importers bank account details are provided
The CCN is issued by the BOC following the procedures for the Client Profile
Registration System. This number will also be required by the AAB when the
debit account for use in the system as well as the issuance of the AAB Reference
Number.
In accordance with CAO No. 1-2006, a fee shall be charged for the services
making, signing and filing the required import entry and follow-up work necessary
for the final release of shipments from customs custody, stamp, internal revenue
stamps, notarization fees, cost of prescribed customs form, extra labour as may
and storage, all of which shall be for the account for importer/exporter.
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of packages involves the physical act of moving products from one country to
ensure timely delivery and may require the use of heavy cranes, oversize trucks,
special types of ships, etc. This is specialized field for freight forwarders.
While in aspect of distribution of packages, it involves the use of the
forwarded to the vessels. Various transportation options are given for the
movement of goods. Speed, cost, reliability and flexibility are important points to
how freight forwarders will distribute their packages according to the cost, speed
and their requirements. Sea, railway and air are the three (3) most popular
Its virtually impossible to list all the reasons freight might be delayed in
transit. Weather is always a major concern. Trucks breakdown, traffic gets heavy,
highways are closed, drivers get sick - and your customers will expect you to
deal with it all. Anytime the freight doesnt move precisely as expected, your
Most often, changing venue of goods transport goes according to the terms
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of carriers document agreed at the starting point. The main task that the carrier
destination safe, without delay and to deliver them to the recipient in the same
state as it has been assigned. It must therefore take all precautionary measures,
especially in critical situations that can occur during transfer. The carrier may not
load or tranship the goods, all or in part to another means of transport without the
consent of the sender except in the process of obstacles and the carrier cannot
obtain instruction from the sender in due time or if the usage allows it. It is also
forbidden to carry the goods on deck or in open spaces without the senders
permission. There are exceptions though, when the carrier is obliged to deal with
special situations that alter the original terms of the contract of carriage. Thus, it
is possible that the sender, under a special right recognized by the regulations in
force, unilaterally changes the destination of the consignment. Also, there are few
situations when the carrier due to fortuitous event, is forced to take special
measures to protect the interest of the parties of the contract of carriage. The
customer turnover is inevitable, but successful brokerage firms will retain repeat
customers. It costs about five times more to bring in a new customer than to keep
an existing one. A firms ability to attract and retain new customers, is not only
related to its product or services, but strongly related to the way it services its
existing customers and the reputation it creates within and across the
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marketplace.
According to the Code of Ethics for Customs Brokers, Article II, Section 4,
a customs broker shall hold inviolable the trust and confidence reposed on him
by his clients. A customs broker shall not take advantage of his/her clients
innocence, ignorance and credulity. Neither will he/she prod or coach the clients
into committing illegal acts by evading or minimizing the payments of duties and
taxes under the guise of cost-cutting; nor he/she abet illegal acts tending to
defraud the government. He/she shall exercise due diligence over does and of
the cargoes entrusted to him/her for clearance from the customs custody till the
delivery thereof to the firms destination. The needs of the clients shall always be
served above par. He/she shall not overcharge or undercharge his/her clients on
the professional services he/she renders. Charges shall be based strictly on the
for customs broker. Neither changes shall be based on the schemed called
package deal where charges are based on the individual package per
profession.
clients. He/she shall exercise prudence and utmost caution in dealing with walk-
in clients (Code of Ethics for Customs Brokers, Resolution no. 02, Series of
2005).
Synthesis
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According to (Republic Act [RA] 9280 or Customs Brokers Act of 2004, Section
of customs duties and taxes; preparation, signing, filing, lodging, and processing
of importer etc. This republic act is found to be related in the present study
firms.
As defined legally by Republic Act 9280, a customs broker is any person who
Similarly, the practice of the customs broker is correlated to the practice of the
customs brokerage as it carries the same function and scope of practice. This
republic act is found to be ralated to the present study because they definned the
The study made by Arguelles (cited in Almacen & Gelera), was similar to the
present study because both studies were about customs brokerage firm. The
past study tackled the five characteristics of a customs brokerage firm such as
the prestige or goodwill of the brokerage firm before the public, ability to draw
customers, ability to bid from shippers efficiency if all personnel from manager
down to the lowest employee and frankness and honesty in delivery of goods
Moreover, the study of Kling 2010, if a Hold and Alert Order has been applied
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to the bill of lading, and this has not been lifted at the time of payment, no release
instruction shall be generated to the transit sheds. Only upon lifting of the HAO
will the release instruction be issued by E2M customs system. This past study is
In accordance with CAO No. 1-2006, a fee shall be charged for the services
making, signing and filing the required import entry and follow-up work necessary
for the final release of shipments from customs custody, stamp, internal revenue
stamps, notarization fees, cost of prescribed customs form, extra labour as may
and storage, all of which shall be for the account for importer/exporter. This CMO
is related to the present study in a way that it discussed the services rendered by
The past study conducted by Dean Rufus B. Rodriguez in article 1732 of the
land, water or air for compensation, offering of their services to the public, this
According to the Code of Ethics for Customs Brokers, Article II, Section 4,
a customs broker shall hold inviolable the trust and confidence reposed on him
by his clients. A customs broker shall not take advantage of his/her clients
innocence, ignorance and credulity. Neither will he/she prod or coach the clients
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into committing illegal acts by evading or minimizing the payments of duties and
taxes under the guise of cost-cutting; nor he/she abet illegal acts tending to
defraud the government. (Code of Ethics for Customs Brokers, Resolution no.
02, Series of 2005). This code is related to the present study because it is about
In the Tariff and Customs Code of 2011, customs brokerage firms included
customs clearance and tracking services, because at that time port operations
were under the Bureau of Customs. Consequently, it was assumed that these
firms were purely devoted to transacting with the Bureau of Customs on import
and export clearing only. This Tariff and Customs code of 2011 is found to be
firms. Nowadays, however, the functions of the brokerage firms may be divided
into 3 scopes: offering customs and tariff consultancies; customs clearance; and
Research Literature
Selected Customs Brokerage Firms. The researchers cited past studies that
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Industrial Park-Bauan Batangas used the descriptive method research to find
out the services rendered by the customs brokerage firms and freight forwarders,
its effectiveness and problems encountered. They also looked into significant
proposed measures to lessen the problems they focused in their study that the
services offered by the customs brokerage firm were customs and tariff
It was also revealed in the study that these services were rendered
effectively. They also found out that their respondents seldom encountered all the
new customs and tariff laws, rules and regulations and limited time for
consultation.
The data collected were limited to 20 employees from each company of the
Sakamato Orient Chemicals Corp., Stephen Phil., Inc., and Minola Refining Corp.
company).
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situation of the variables subject for evaluation. The study focused on the
customs duties and taxes, representing importers and exporters before any
relating to tariff and customs. It also covered the profile of customs brokerage
relating to tariff and customs as perceived by the clients are very satisfactory. On
the area of representing importers and exporters before any government agency
and private entities, the customs brokerage firms have satisfactory job
performance. They also said that problems in declaration of customs duties and
taxes and consulting services on matters relating to tariff and customs are
seldom encountered. The study also found out that there are no significant
with respect to the companys profile variables. From these findings, the
brokerage firm should have thorough knowledge about the business and be
aware of the companys primary factors for the success in clients satisfaction.
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There should be an effective implementation of operational procedures to
Moreover, the study of Andal, et al., (2013) aimed to assess the delivery of
services offered by customs brokerage and logistic firm in dealing with clients the
researchers used the descriptive method of research and with the used of the
questionnaire to obtain the needed data for the study. The data gathered through
the use of questionnaire were analyzed and interpreted using the statistical
analysis of variants.
Based from the data gathered the researchers found out that the customs
brokerage and logistics firms strongly agreed in the delivery of their service in
terms frequency, timeliness and costing. Findings showed that there were no
firms with respect to their profile variables such as years of operation, number of
by their clients.
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shipments and it provide great help not only on the part of the importers but on
the economy as well for it aids in efficiently transacting with the Bureau which
resulted to income generation of the government. They also asserted that the
the study were 40 employees of the BOC and 15 importers at the Port of
Batangas. The study used descriptive method of research that utilized self-
In addition to, the study of Enriquez and Makalintal (2006) entitled The Role
stressed the role of BOC on the delivery of quality services among customs
research and used questionnaire as the main data gathering instrument. Base on
the findings of the study, the BOC greatly performed their role in rendering the
quality of service on the customs brokers. The problem encountered by the BOC
processing of papers needed for the release of shipments from the BOC and in
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passing such document cause delays in the shipment to the consignee or owner
of such articles. Those delays may result also to different problems on the
On the other hand, the study of Almacen and Gelera (2009) entitled Extent
Structured questionnaire was the main instrument in gathering data. Data were
Based on the findings, it was found out that brokerage firms slightly
residents as slightly performed. It was also rebuild that there was no significant
Additionally, the study of Mangaba et al., (2010), the employees agreed that
the effect of the problems in the delay of processing of documents are the delay
warehouse, loss of articles, dissatisfaction on the part of the client, delay on the
delivery of the articles for the warehouse, delay in the release of the shipment,
additional workload and poor job performance and the lack of coordination and
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communication of the employees.
Furthermore, the study of Mangaba focuses on the problems such as delay
in the processing of documents, pending cargoes in the BOC and lack of security
in the warehouse that results in the delay of the release of cargoes, inability of
facilities and equipment as well as the formulation of storage plan and training
clearances, discrepancy between the entered and appraised value, delay in filing
cargoes on time.
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and taxes, loss of cargoes and lack of documentary requirements.
At the same time, the study of Leones, et al., (2011), entitled The Online
Some of these are physical condition of the machine that needs to be upgraded,
the internal problem of the system and the unfamiliarity of clients and operator in
for the release will be extended until the goods are examined and its condition is
least, college graduate and at least exposed to the efficiency and problems of
Container Port. The respondents profiles included the age group, civil status,
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gender, educational attainment and length of exposure to the efficiency and
like books and unpublished sources like thesis. In this study, the following
statistical tools were utilized in the analysis and interpretation of data wit:
declaration made by the firm in terms of the value and classification of the goods.
The profile of the respondents had no significant difference on the efficiency and
operating at the Port of Manila and Manila International Container Port when
Philippines, it is found out that the main difficulty encountered by the respondents
The infrastructure should be set up in all ports. Updated and clear guidelines
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must also be immediately provided in view of fast changing procedures.
In addition, the study of Cayon, et al., (2009), entitled BOC Urges Port Users
and external transactions at the port, including import licensing, valuation and
import duties could be the best determent against smuggling at the ports
because all the payment of duties, for instance, go directly to the coffers of the
national government.
Lastly, in the study conducted by Carandang and Gagalac (2011), the
accredited by the BOC were the causes encountered by the processors in filing
cargoes, lack of fund, failure to book delivery, derogatory information from the
Synthesis
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Agro-Industrial Park-Bauan Batangas is found to be similar to the present study
because both study used the descriptive method research to find out the services
rendered by the customs brokerage firms and freight forwarders, its effectiveness
and problems encountered. However, the data collected from the past study were
limited to 20 employees from each company and Import/Export Division while the
Brokerage Firms.
to the present study because at some part of the past study tackled about
The past study made by Enriquez and Makalintal entitled The Role of BOC
be related to the present study because it stressed the role of BOC on the
Moreover, the study of Almacen and Gelera is similar to the present study
Transacting at the Port of Batangas because both studies used the descriptive
gathering data.
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Performance Assessment of Customs Brokerage Firm in Batangas City, it
services this study is much related to the present research because they pertains
to the problems encountered by brokerage firms which the present studys main
topic.
clearances, discrepancy between the entered and appraised value, delay in filing
Since it discussed the problems met by the customs brokerage firms it is found to
be similar in the present study. However, in the past study the assessment made
assessed by the residents as slightly perform whereas, the present study did not
assess.
The past study conducted by Mangaba et al., the employees agreed that the
effect of the problems in the delay of processing of documents are the delay of
loss of articles, dissatisfaction on the part of the client, delay on the delivery of
the articles for the warehouse, delay in the release of the shipment, additional
workload and poor job performance and the lack of coordination and
communication of the employees this was found to be similar because the old
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study discussed about processing which is part of the topic of the present study
also the study of Mangaba focuses on the problems such as delay in the
processing of documents, pending cargoes in the BOC and lack of security in the
warehouse that results in the delay of the release of cargoes, inability of goods to
the warehouse.
The study of Leones, et al., entitled The Online Release System of PAL
processing documents that result in the delay of release. However, in the past
study they discussed that some of the physical condition of the machine is need
to be upgraded because that is one of the major problem they encountered while
the present the major problem they encountered is the more on the in the
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Chapter III
RESEARCH METHODOLOGY
This chapter presents the research design, respondents of the study, data
gathering instrument, data gathering procedure, and the statistical tools used by
the study.
Research Design
firms in Manila, Batangas and Cavite. To achieve this purpose, the researchers
find new truth. By the use of descriptive design, researchers collected data to
answer questions with regards to the topic. The study also made by the use of a
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firms, 10 from brokerage firms in Manila, 10 from Batangas and another 10 from
to gather data and help them analyze and substantiate the topic under study. The
researchers used this tool because it is the widely used method to obtain
information needed. The questionnaire that the researchers used were consist of
two parts; the first part was about the companys profile which includes the kind
capitalization; and location and the second part focused on the problems
Construction. After the approval of the topic, the researchers read more
books and other references and prepared a draft of questionnaire base on the
statement of the problem. It was submitted to the adviser for corrections and
suggestions.
advisers for corrections, suggestions, and validation. After the validation, the
researchers incorporated the comments and suggestions and the draft was again
presented to the adviser for further checking. The questionnaire was also given
to the panel list, chairperson, faculty expert, and industry expert for validation in
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a dry-run in Paraaque. They used the reliability test to know if the
questionnaires were reliable. The result of the reliability test was 0.774.
the adviser addressed to the department head of the brokerage firms located in
Manila, Batangas and Cavite. Upon approval of the department head, the
retrieved immediately but some questionnaires were retrieved for the next couple
of days.
Scoring. The researchers use the Likert Scale in determining the problems
The questionnaire covered the profile of the brokerage firms as to their kind
capitalization; and location. Furthermore, the researchers tried to find out the
problems encountered by the customs brokerage firms with regards to: import
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entry document operation, filing of bad order or short landed claim and
topic. Upon the final approval of the questionnaire, the researchers contacted the
requested the brokerage firms to allow them to administer it in their office. From
the time the request was granted, the researchers personally distributed the
answers were considered confidential and used for research purposes only by
the researchers.
2011). This was used to determine the profile of the respondents in terms kind of
capitalization.
weight and dividing the sum of weights and is particularly useful when various
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classes or groups contribute differently to the total (Sinag, 2011). This was used
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Chapter IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter presents the analysis and interpretation of data gathered based
Table 4.1.1 shows the data of the distribution of the brokerage firms in terms
Table 4.1.1
Distribution of Brokerage Firms in terms of
Kinds of Business Organization
Kind of Business Frequency Percentage
Organization
Sole Proprietorship 22 74
Partnership 1 3
Corporation 7 23
Total 30 100
submitted. The following requisite documents are needed are needed in case of
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the Board of Examiners for Customs Brokers; clearance from the MMP, if the
showing the sound financial standing or position of the applicant, duly attested by
him in BOC indicating the nature of their respective work, said list shall contain
the facsimile of the signatures and their addresses; continuing fidelity or surety
bond on the amount not less than 20,000 which amount shall be increased if the
amount found inadequate by the Collector which the government may suffer from
well as from financial obligations or liabilities that the person has assumed and
certified copy of the persons Privilege Tax Receipt for the period of the license
applied for which shall be submitted not later than 31 st of January every year, and
the by-laws duly registered with the securities and exchange commission shall
the assets and liabilities of the partnership or corporation showing the sound
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financial standing or position of the firm, duly attested the reputable CPA; list of
his employees authorized to represent him in BOC indicating the nature of their
respective work, said list shall contain the facsimile of the signatures and their
addresses; continuing fidelity or surety bond on the amount not less than 20,000
which amount shall be increased if the amount found inadequate by the Collector
which the government may suffer from whatever misconduct or negligence of the
liabilities that the person has assumed and failed to settle according to his
agreement or commitments with BOC; certified copy of the Privilege Tax Receipt
of the firm as well as those of what the license brokers represent, corresponding
Table 4.1.2
Distribution of Brokerage Firms in Terms of
Years in Operation
Years in operation Frequency Percentage
1 3 years 0 0
4 6 years 0 0
7 9 years 11 37
10 years and above 19 63
Total 30 100
The table above shows the profile of the customs brokerage firm in terms
operates for ten 10 years and above which also become the highest percentage
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become the lowest percentage.
According to the study cited by Balmes, 2009, 10 and above long years of
business operation implied the stability of the corporation backed up with the
majority stock holders/owners who decided to consolidate their resources and let
top managers is one of the reasons why the business succeeds for more than 16
years. Also, the ability to keep developing new service while also returns the old
ones. There should be also maturity to treat employees, suppliers and partners
Table 4.1.3
Distribution of Brokerage Firms in Terms of
Number of Employees
Number of Employees Frequency Percentage
15 0 0
6 10 3 10
11 15 14 47
More than 15 13 43
Total 30 100
The table above shows that majority of the brokerage firms has 11 to 15
the other hand, only 3 or 10 percent of the respondents has 6-10 employees.
In business, there often few staff with several duties, because of this, it is
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involved in the firm. The focus of a business varies greatly that is why the
brokerage firms varied in terms of the number of employees because they have
Among the firms, a corporation needed more personnel to work for their
there was a need for the firm to employ such number of personnel to
1.4 Capitalization
capitalization.
Table 4.1.4
Distribution of Brokerage Firms in Terms of
Capitalization
Capitalization Frequency Percentage
Below Php 3,000,000.00 9 30
Php 3M Php 15M 18 60
Php 16M Php 100M 3 10
Total 30 100
The kind of business organization the brokerage firms were into defined their
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capitalization. The first and second customs brokerage firms were both organized
as sole proprietorship. Their capitalization were provided to meet the services the
offered.
There was a difference on the capitalization of the two firms because the
second brokerage firm had additional services which accounted for additional
expenses and capitalization. The third customs brokerage firm had the highest
1.5 Location
business.
Table 4.1.5
Distribution of Brokerage Firms in Terms of Location
Location Frequency Percentage
Manila 10 33.3
Batangas 10 33.3
Cavite 10 33.3
Total 30 100
Based from the above findings, all of the location have an equal frequency
location of a business can affect many aspects of how it operates, such as total
sales and how costly it is to run. Even home-based businesses and online
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decision has a direct effect on an operations cost as well as its ability to serve
customers. Location decisions once made, are difficult and costly to undo. It is
always best to get the location decision right for the first time.
Table 4.2.1
Assessment on the Problems Encountered by the
Customs Brokerage Firms with Regards to
Import Entry Document Operation
Import Entry Document Operation - Weighted Verbal
processing of documents in order to effect an Mean Interpretation
importation
1. Import Entry Declaration is not valid because 3.60 Strongly Agree
it is beyond the prescribed filing period.
2. The importer failed to accomplish Single 3.77 Strongly Agree
Administrative Document/Import Entry and
Internal Revenue Document due to lack of
manifest from shipping line production and
incomplete original documents.
3. The importer failed to submit hard copies of 3.50 Agree
Assessment Notice and attachments to entry
processing offices for verification.
4. Client is not duly registered with the Client 3.53 Strongly Agree
Profile Registration System.
5. The appropriate import permits from 3.60 Strongly Agree
concerned issuing agencies for the importation
is incomplete.
COMPOSITE MEAN 3.60 Strongly Agree
It can be gleaned from Table 4.2.1 that the overall assessment of the
firms with regards to import entry document operation was strongly agree with a
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As shown in the table, failure of the importer to accomplish Single
lack of manifest from shipping line production and incomplete original documents
got the highest weighted mean which is 3.77 verbally interpreted as strongly
agree. Followed by Import Entry Declaration is not valid because it is beyond the
prescribed filing period and the appropriate import permits from concerned
issuing agencies for the importation is incomplete both having a weighted mean
registered with the Client Profile Registration System ranks fourth after having a
weighted mean of 3.53 verbally interpreted as strongly agree and lastly, failure of
entry processing offices for verification with a weighted mean of 3.50 verbally
them from the issuing/regulatory agencies. The enforcing authorities will check
clients and stakeholders, both internal and external and will include exporters,
other government agencies, and private entities that conduct business with the
cannot be processed unless the client is duly registered with the CPRS.
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Registrants shall register in CPRS for every role they will assume in their
transactions.
Assessment Notice contains the essential details of the declaration with the
Documents and assigns stamps the appropriate section in the Formal Entry. After
that, the Entry Documents will be forwarded to the assigned section in the Formal
Entry Unit.
In the previous study of Balmes and Chavez, they concluded that the level of job
and export entries, declaration of customs duties and taxes and consulting
services on matters relating to tariff and customs as perceived by the clients are
very satisfactory. On the area of representing importers and exporters before any
government agency and private entities, the customs brokerage firms have
customs duties and taxes and consulting services on matters relating to tariff and
customs are seldom encountered. The study also found out that there are no
brokerage firms with respect to the companys profile variables. From these
findings, the researchers recommended that the person who desires to establish
a customs brokerage firm should have thorough knowledge about the business
and be aware of the companys primary factors for the success in clients
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procedures to encompass a smooth flow of customs brokerage operation,
firms with regards to filing of bad order or short landed claim and processing.
Table 4.2.2
Assessment on the Problems Encountered by the
Customs Brokerage Firms with Regards to
Filing of Bad Order or Short Landed Claim and Processing
Filing of Bad Order or Short Landed Claim and Weighted Verbal
Processing - filing an official request when the Mean Interpretation
goods were damaged or defective
1. The assigned personnel are unsuitable as a 3.33 Agree
claim handler.
2. The insurance company responded to the 3.10 Agree
claim within a long period.
3. The importer who received error failed to 3.43 Agree
resolve the errors through Value Added Service
Provider.
4. The claimant failed to report the loss to the 3.57 Strongly Agree
insurance company in a timely manner.
5. The supporting documents to file a claim are 3.77 Strongly Agree
incomplete.
COMPOSITE MEAN 3.44 Agree
the selected brokerage firms with regards to filing of bad order or short landed
agree.
As shown in the above table, the supporting documents to file a claim are
incomplete got the highest weighted mean of 3.77 verbally interpreted as strongly
agree. Followed by the claimant failed to report the loss to the insurance
as strongly agree. The assigned personnel are unsuitable as a claim handler got
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a weighted mean of 3.33 verbally interpreted as agree and the insurance
company responded to the claim within a long period got the lowest weighted
Error message should resolve the error/s through Value Added Service
Provider and re-file application as soon as the error/s are solved so the Account
Cargo Loss and Damage Claim, a copy of the Bill of Lading or the Delivery
receipts, a copy of your Suppliers Invoice showing your cost of the damaged or
lost items or a copy of your invoice for repairs made to restore the merchandise
to its original condition and a Letter of Intent (a letter stating that you wish to
(http://www.comox- pacific.com/forms/CPECargoLoss.pdf).
There are several things that the agency should do when a claim is
presented. First, the Notice of Claim must be time reported to the insurance
a timely manner so that no default judgment is entered against the insured. Third,
another insurance company or party. Fourth, the initial claim reporting process
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features/2009/09/221/158737.htm).
2.3. Payment of Charges to Government Agencies
Table 4.2.3
Assessment on the Problems Encountered by the
Customs Brokerage Firms with Regards to
Payment of Charges to Government Agencies
Payment of Charges to Government Agencies Weighted Verbal
- payment of duties and taxes due to the Mean Interpretation
government
1. There is a system error in the remittance of 3.50 Strongly Agree
payment of Authorized Agent Bank to BOC
system for the payment of duties and taxes.
2. The receipt of notice of the total assessment of 3.13 Agree
duties and taxes is late.
3. The process of transaction of payments is slow 3.07 Agree
due to poor connection.
4. The importer failed to secure valid and active 3.53 Strongly Agree
Customs Client Number from the BOC.
5. The designated non-cash instrument by the 3.57 Strongly Agree
importer is not enough to cover the payable duties
and taxes.
COMPOSITE MEAN 3.36 Agree
the problems encountered by the selected customs brokerage firms with regards
As reflected on the table, the problem that got the highest weighted mean of
instrument by the importer is not enough to cover the payable duties and taxes.
Next is when the importer failed to secure valid and active Customs Client
Number from the BOC with a weighted mean of 3.53 verbally interpreted as
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strongly agree. The receipt of notice of the total assessment of duties and taxes
is late got a weighted mean of 3.13 verbally interpreted as agree. The problem
that got the lowest weighted mean of 3.07 verbally interpreted as agree is when
The CCN is issued by the BOC following the procedures for the Client Profile
Registration System. This number will also be required by the AAB when the
debit account for use in the system as well as the issuance of the AAB Reference
Number.
The new payment system involves the use of both cash and non-cash
payments, both transacted and stored electronically, for either advanced or final
settlement of duties and taxes. Declared non-cash payment accounts are utilized
first by the system during assessment of import entries. The balance payable in
payment instruction generated by the system and is sent over the importers
bank. The final payment instruction is generated after the assessment of the
account details are provided during import lodgement at the VASP (Customs
Table 4.2.4
Assessment on the Problems Encountered by the
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Customs Brokerage Firms with Regards to
Delivery of Goods
Delivery of Goods - process of taking or giving Weighted Verbal
the goods to the importer Mean Interpretation
1. Breaking down of trucks due to faulty battery, 2.97 Agree
lost keys, damaged tyres and wheels and fuel
problems.
2. The road management is poor resulting to 3.03 Agree
heavy traffic.
3. The highways are closed because of an 3.20 Agree
unexpected events and accidents.
4. The cargoes were not delivered on time due to 3.60 Strongly Agree
bad weather.
5. The appropriate trucks and equipments for the 3.47 Agree
delivery of the special types of cargo are
insufficient.
COMPOSITE MEAN 3.25 Agree
It can be gleaned from Table 4.2.4 that the overall assessment of the
firms with regards to delivery of goods was agree with a composite mean of 3.25
As shown in the table, the cargoes were not delivered on time due to bad
weather got the highest weighted mean which is 3.60 verbally interpreted as
strongly agree. Followed by the appropriate trucks and equipments for the
delivery of the special types of cargo are insufficient having a weighted mean of
resulting to heavy traffic ranks fourth after having a weighted mean of 3.03
verbally interpreted as agree and lastly, breaking down of trucks due to faulty
battery, lost keys, damaged tyres and wheels and fuel problems with a weighted
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the physical act of moving products from one country to another, this is
delivery and may require the use of heavy cranes, oversize trucks, special types
forwarded to the vessels. Various transportation options are given for the
movement of goods. Speed, cost, reliability and flexibility are important points to
how freight forwarders will distribute their packages according to the cost, speed
and their requirements. Sea, railway and air are the three (3) most popular
Its virtually impossible to list all the reasons freight might be delayed in
transit. Weather is always a major concern. Trucks breakdown, traffic gets heavy,
highways are closed, drivers get sick - and your customers will expect you to
deal with it all. Anytime the freight doesnt move precisely as expected, your
Table 4.2.5
Assessment on the Problems Encountered by the
Customs Brokerage Firms with Regards to
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Providing Legal and Technical Advices
Providing Legal and Technical Advices - Weighted Verbal
offering help to guide their clients in customs Mean Interpretation
procedures
1. There is a computer malfunction. 2.93 Agree
2. Transacting with customs employees is difficult. 2.97 Agree
3. The job performance of employees is poor. 3.00 Agree
4. The automated system of customs is unfamiliar 3.54 Strongly Agree
to the clients and operator.
5. The guidelines in processing of documents 3.57 Strongly Agree
were not clear and updated.
COMPOSITE MEAN 3.20 Agree
the problems encountered by the selected customs brokerage firms with regards
to providing legal and technical advices was agree with a composite mean of
As reflected on the table, the problem that got the highest weighted mean of
of documents were not clear and updated. Next is when he automated system of
customs is unfamiliar to the clients and operator with a weighted mean of 3.54
difficult got a weighted mean of 2.97 verbally interpreted as agree. The problem
that got the lowest weighted mean of 2.93 verbally interpreted as agree is when
successful brokerage firms will retain repeat customers. It costs about five times
more to bring in a new customer than to keep an existing one. A firms ability to
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attract and retain new customers, is not only related to its product or services, but
strongly related to the way it services its existing customers and the reputation it
According to the Code of Ethics for Customs Brokers, Article II, Section 4,
a customs broker shall hold inviolable the trust and confidence reposed on him
by his clients. A customs broker shall not take advantage of his/her clients
innocence, ignorance and credulity. Neither will he/she prod or coach the clients
into committing illegal acts by evading or minimizing the payments of duties and
taxes under the guise of cost-cutting; nor he/she abet illegal acts tending to
defraud the government. He/she shall exercise due diligence over does and of
the cargoes entrusted to him/her for clearance from the customs custody till the
delivery thereof to the firms destination. The needs of the clients shall always be
served above par. He/she shall not overcharge or undercharge his/her clients on
the professional services he/she renders. Charges shall be based strictly on the
for customs broker. Neither changes shall be based on the schemed called
package deal where charges are based on the individual package per
profession.
clients. He/she shall exercise prudence and utmost caution in dealing with walk-
in clients (Code of Ethics for Customs Brokers, Resolution no. 02, Series of
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2005).
predominant in economies, formed to earned profit that will grow the business
itself.
Table 4.3.1
Difference on the Challenges Encountered by the
Brokerage Firms in Terms of Kinds of Business Organization
Challenges p-values Computed Decision on Verbal
f-values Ho Interpretation
Import entry document 0.78 0.25 Failed to Not Significant
operation Reject
Filing of bad order or 0.26 1.44 Failed to Not Significant
short landed claim Reject
and processing
Payment of charges to 0.63 0.46 Failed to Not Significant
government agencies Reject
Delivery of goods 0.80 0.22 Failed to Not Significant
Reject
Providing legal and 0.93 0.08 Failed to Not Significant
technical advices Reject
It can be gleaned from Table 4.3.1 that all of the p-values are higher than
0.05 level of significance and the computed f-values of 0.25, 0.10, 0.46, 0.22,
1.44, and 0.08 was found not significant. This could also mean that the
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As stated by Dias, et al, (2009), sole proprietorship is the easiest form of
of the advantages of a sole proprietorship is you get to be your own boss. You
make all the decisions and receive the benefits of those decisions. Besides the
owners a business for profit. The purpose or primary purpose must be obtained
profits and to divide the same among the practice. Partnership has an
employment advantage over other entities if they offer employees the opportunity
qualified employees.
to the processes, customs policies, laws, and institution affecting the way in
in place, that is, a written form of how the business will be run. One of the
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partnership is the ability to get more money for investment.
As shown in the Table 4.3.2, all the p-values are higher than 0.05 level of
significance and the computed t-values of -0.77, 1.07, 0.048, 0.57, -0.83, and
-1.06 found not to be significant. This could also mean that the respondents do
brokerage firms whether they are operating for one 1 to 3 years, 4 to 6 years, 7
involved in running a business for the purpose of producing value for the
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business customers at cost to make profit.
utmost importance. To gain long term relationship with customers and achieve
return for the business, the business based on ethics. The trustworthiness of a
business, its customer care, its way of dealing with customers and its urge to
retain their old customers. Business ethics live a long lasting impression on the
customers and the impression on their minds builds trust, fetching a business
customs brokerage and logistics firms. As the firms operate and still in a couple
of years, the history of the company will tell how long they provide good services
and that is the reason why they are still standing despite of many competitors.
The study of Calderon (2012) said that, some employers may use length of
younger employees. But does this mean that rewarding longer service with
would appear the court is willing to accept length of service benefits are generally
not discriminatory as long as the employer is able to show the benefits fulfil a
business need. Employers should ensure that they are able to justify the use of
service related benefits and that they are not used arbitrarily, particularly when
they do not fall under the automatic under five (5) year exemption.
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3.3 Differences on the Assessment of the Respondents in Terms of
Number of Employees
Employees have an important role to be performed in any business. This
could affect the business in its operation for leading through stabilization. It can
be understand that the success of any effort of improving quality and productivity
firms had computed f-values of 0.86, 0.17, 0.18, 0.42, 1.18, .and 24 respectively.
All of which correspond to a not significant level of probability based on the .05
level of significance. This could mean that there were no significant differences
null hypothesis.
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advantage, but all of these are outcomes of the organizations people - its human
capital. If organized and manage effectively, the knowledge and skills of the
people of the organization drive sustainable competitive advantage and long term
financial performance.
guidelines to recruit, utilize and evaluate the best employees for the business.
The supervisors are also liable to make their employees more competitive and to
to his clients and fellow customs brokers is based mainly on the following
Capitalization
The strength of a business lies in its financial resources and how well they
are managed capital comprises the total assets of a business. It is the total sum
Table 4.3.4
Difference on the Challenges Encountered by the
[Type here]
Brokerage Firms in Terms of Capitalization
Challenges p-values Computed Decision on Verbal
f-values Ho Interpretation
Import entry 0.65 0.44 Failed to Not Significant
document operation Reject
Filing of bad order or 0.59 0.53 Failed to Not Significant
short landed claim Reject
and processing
Payment of charges 0.27 1.36 Failed to Not Significant
to government Reject
agencies
Delivery of goods 0.03 3.67 Reject Significant
Providing legal and 0.46 0.80 Failed to Not Significant
technical advices Reject
As shown in the above, the p-value of 0.03 was lower than the 0.05 level
This could mean that the respondents differ on their assessment on the delivery
claim and processing, and providing legal and technical advices when grouped
according to capitalization.
the business value by forming part of the business economic benefit. It is also
known as market cap or the sum of a business long term debt, stock and
size.
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To report the level of sales of a new business, it is important to start with a
working capital with respect to sales throughout the growth of a new firm. When
sales are expanding, many start-up entrepreneurs ignore their working capital
requirements. They fail to provide for the larger working capital base required to
support their large volume of sales. Some entrepreneurs think that the increased
profit from the larger sales volume will take care of increased capital
requirements. Still, others do not give any thought to the capital needs that are
changes will put demands on the firms working capital and the wise
entrepreneur will have to do some planning to see that there is sufficient working
The researchers found out that the capitalization between three million pesos
to fifteen million pesos is the highest. It affects the delivery of goods in some
circumstances like the higher the capitalization the higher goods delivery is
made. Having big capitalization is very important in the way that it will be easy to
meet the needs and wants of every firm and the expectations of the individuals in
and outside the firm. Also, researchers found out that the capitalization below
three million pesos is the lowest. Some small industry having low capitalization
suffered in terms of growth of units, employment, output and exports that affects
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3.5 Differences on the Assessment of the Respondents in Terms of
Location
Location is the place where a firm decides to site its operations. When
Table 4.3.5
Difference on the Challenges Encountered by the
Brokerage Firms in Terms of Location
Challenges p-values Computed Decision on Verbal
f-values Ho Interpretation
Import entry 0.000 12.33 Reject Significant
document operation
As shown in the table above, the p-value of 0.000 and 0.004 were lower than
the 0.05 level of significance and then the computed f-value of 12.33 and 6.96 is
found to be significant. This could mean that the respondents differ on their
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and appraisal for the release of goods, delivery of goods, filing of bad order or
short landed claim and processing, and providing legal and technical advices
Selecting the right option for accommodating your business is one of the most
important decisions when getting started. A great location can help improve sales
and productivity, attract the right kind of clients and good employees. The
location you choose will depend on the nature of your business, for example:
target and consumer demographics such as age, gender, income, lifestyle and
Businesses must have ample space for the equipment required to produce
their products and services. If you have a manufacturing company, you will
require extensive space for equipment and inventory. Consider your business's
products and services when establishing your location. If your business draws
customers to a store location, the site must be convenient to the customer. The
location must be easily accessible and provide the customer with a feeling of
safety upon their arrival and exit. Ample parking is important for customers and
employees. If customers are unable to find suitable parking, they might choose to
visit a competitor who has the same qualified services with more convenient
parking. You also need adequate space for employees to park at or near your
location. Your business's service and sales opportunities are greatly affected by
your location. Your selected location should center on your target customers and
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should generate walk-in traffic (http://www.smallbusiness.wa.gov.au/-premises-
location/).
In the present study, the research was conducted in Manila, Batangas and
Cavite. The researchers found out that locations affects the payment of charges
were needed to pay charges were just near unlike Cavite and Batangas which
are distant. In the case of import entry document operation, BOC and other
Based on the data gathered, the researchers found out that there are rooms
respondents and thus, trigger awareness for the brokerage firms to be more
responsive in their characteristics and responsibility towards their clients that will
entity.
Table 4.4.1
Proposed Recommendations on the Challenges Encountered by
Selected Customs Brokerage Firms
Areas of Concern Findings Recommendations
Import Entry It was shown in the study Have an effective
Document Operation that the composite mean of implementation of
the problems encountered operational procedures to
[Type here]
by the selected customs encompass a smooth flow
brokerage firms with of customs brokerage
regards to import entry operation.
document operation was
3.60.
Filing of Bad Order It was shown in the study File the claims within the
or Short Landed that the composite mean of contractual time limits and
Claim and the problems encountered shall be supported with
Processing by the selected customs complete documentation.
brokerage firms with
regards to filing of bad order
or short landed claim and
processing was 3.44.
Payment of Charges It was shown in the study Send a letter of request to
to Government that the composite mean of the client stating the
Agencies the problems encountered amount of money owed
by the selected customs and requesting payment by
brokerage firms with a specific deadline.
regards to payment of
charges to government
agencies was 3.36.
Delivery of Goods It was shown in the study Be aware of the closed
that the composite mean of highways, road
the problems encountered management and ensure
by the selected customs the safety equipment of the
brokerage firms with trucks to be used to avoid
regards to delivery of goods inconvenience in order to
was 3.25. deliver the goods on time.
Providing Legal and It was shown in the study Treat the clients with
Technical Advices that the composite mean of respect and guide the
the problems encountered clients in doing the customs
by the selected customs procedures for them to be
brokerage firms with familiar to the automated
regards to providing legal system.
and technical advices was
3.20.
[Type here]
Chapter V
SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
recommendations derived from the data gathered, analyze and interpreted based
Summary
the selected customs brokerage firms in Manila, Batangas and Cavite to further
study aims to answer certain questions. The first question is about the profile of
delivery of goods, filing of bad order or short landed claim and processing, and
providing legal and technical advices. The last question is about the
the brokerage firms. The respondents of this study were the selected thirty
companies from Manila, Batangas and Cavite. The statistical treatments used in
the study were percentage, weighted mean, one way analysis of variance and
[Type here]
independent t-test.
Findings
After the analysis and interpretation of data gathered, the researchers were
and above has the greatest percentage which is 63 percent meaning 19 out of 30
brokerage firms are operating for more than 10 years and the rest were below 10
employees. Moreover, most of the brokerage firms has the capital of Php
firms were located in Manila, 10 firms also were in Batangas and the remaining
operation is strongly agree with a composite mean of 3.60. On the other hand,
the researchers also found that the respondents assessment on the challenges
encountered by the selected brokerage firms in terms of filing of bad order and
short landed claim and processing is agree with a composite mean of 3.44.
[Type here]
charges to government agencies is agree with a composite mean of 3.36.
Moreover, the researchers found out that the respondents assessment on the
goods is agree with a composite mean of 3.25. Lastly, the researchers found that
brokerage firms in terms of providing of legal and technical advices is agree with
significant with a p-value of 0.03 thus rejecting the null hypothesis that there is no
agencies with a p-value of 0.004 was also found to be significant thus also
variables. Aside from that, all the variables in all aspects had a p-value of higher
than 0.05 level of significance. This affirms the null hypothesis that there is no
[Type here]
challenges encountered by the selected brokerage firms when grouped
selected brokerage firms that is why the researchers proposed actions and
Conclusions
Based on the findings generated on the study, the following conclusions were
hereby drawn:
1. Majority of the brokerage firms were sole proprietorship operating for more
The rest of the variables affirms the null hypotheses that there is no
[Type here]
challenges encountered by the selected brokerage firms when grouped
Recommendations
tenets, and principles of the Code of Ethics for Customs Brokers which are
competence, respect, integrity, justice, and fairness and conduct themselves with
4. Brokerage firms may establish good relationship with their clients and ask
suggestions and feedbacks that could provide better and quality outcomes
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BIBLIOGRAPHY
Books
Dias, L. & Shah, A., 2009. Introduction to Business. McGrow Hill Companies, Inc.
Avenue of the Americans, New York
Interim Internal Control Office (ICCO) and MISTG, 2010. Manual on Cargo
Clearance Prpcess (E2M Customs Import Assessment System) February
2010 Version 1.0. Llave Review and Training CenterInc, Manila, Philippines
Kling, R., Crawford, H., Rosenbaum, H., et al., 2010. Learning from Social
Informatics: Information and Communication Technologies in Human
Contexts. Indiana University, USA
Llorando, J.G., 2006. Dictionary of Tariff and Customs Terms. Llave Review
Training Center. Manila, Philippines
Articles/journals
Republic Act No. 9280. An Act Regulating The Practice of Customs Brokers
Profession in the Philippines, Creating for the Purpose of a Professional
Regulatory Board for Customs Brokers, and Appropriating Funds Therefor
Resolution No. 02, Series of 2005. Code of Ethics for Customs Brokers
Unpublished Thesis
Almacen, Jenny rose M. and Gelera, Virginia Grace Z., 2009. Extent of Exercise
of Social Responsibilities of Brokerage Firms Transacting at the Port of
Batangas. Undergraduate Thesis, Batangas State University
Andal, Christian Rey C., Banawa, Johnry V. and Palo, Alvin Angelo A., 2013.
Assessment on the Delivery of Services of Customs Brokerage and Logistics
Companies. Undergraduate Thesis, Batangas State University
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Customs Brokerage Firms in Batangas. Undergraduate Thesis, Batangas
State University
Carandang, Shara and Gagalac, Rose Ann, 2011. Problems Encountered by the
Processors Transacting at the Bureau of Customs. Undergraduate Thesis,
Batangas State University
Cayon, Manuel t., et al., 2009. BOC Urges Port Users to Get Accreditation to
Curb Smuggling.Undergraduate Thesis, Lyceum of Batangas, Batangas City
Enriquez, Mario and Makalintal, Emma, 2006. The Role of BOC in the Delivery of
Quality Services among Customs Brokerage Firms. Undergraduate Thesis,
Batangas State University
Leones, Ermie M., et al., 2011. The Online Release System of PAL Atlantic Lines
(Philippines) Incorporated Warehousing Division: An Evaluation.
Undergraduate Thesis, Lyceum of Batangas, Batangas City
Liwag, Jizelle I., Madlangbayan, Analyn M., Mago, Bea Marynoelle B., et al.,
2010. Implementation of Electronic-to-Mobile System to Selected Customs
Brokerage in Manila and Batangas. Undergraduate Thesis, Lyceum of
Batangas, Batangas City
Mangaba, A., Masangcay M., Mendoza, J., et al., 2010. Problems Encountered
in Warehousing Procedure by Union Agrivet Corporation. Undergraduate
Thesis, Lyceum of Batangas, Batangas City
Electronic Sources
http://www.comoxpacific.com/forms/CPECargoLoss.pdf
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www.insurance.com/magazines/features/2009/09/221/158737.htm
www.myplan.com/career/customs-brokers/description-13-1199.03.html
http://www.smallbusiness.wa.gov.au/premises-location/
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Republic of the Philippines
BATANGAS STATE UNIVERSITY
Gov. Pablo Borbon Campus I, Rizal Avenue, Batangas City
College of Accountancy, Business Economics and
International Hospitality Management
SURVEY-QUESTIONNAIRE
General Direction:
Kindly accomplish the items of this questionnaire by placing your response as
indicated carefully and honestly. Rest assured that any information will be used
for research purposes only.
Directions: Please check the space provided which corresponds to your answer.
Number of Employees
( ) 1-5
( ) 6 - 10
( ) 11 - 15
( ) more than 15
Capitalization
( ) Below Php 3,000 000.00
( ) Php 3,000 000.00 - Php 15,000 000.00
( ) Php 16,000 000.00 - Php 100,000 000.00
( ) Above Php 100,000 000.00
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Location
( ) Manila
( ) Batangas
( ) Cavite
Direction: Listed below are the problems encountered by the customs brokerage
firms. Please check the space provided which corresponds to your answer by
using the following scale:
4 Strongly Agree
3 Agree
2 Disagree
1 Strongly Disagree
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4. The claimant failed to report the loss to the
insurance company in a timely manner.
5. The supporting documents to file a claim are
incomplete.
[Type here]
SHERRY B. ERMITA
[Type here]
CAREER OBJECTIVE
PRIMARY (ELEMENTARY)
2004-2009
Lanatang, Munting-tubig
Elementary School
Lanatan,Balayan, Batangas
CHARACTER REFERENCES
PERSONAL DETAILS:
Gender: Female
[Type here]
Date of Birth: September
05,1996 Mrs. Prima C. Delizo
Civil Status: Single OIC, Department Chair of Customs Administration
Citizenship : Filipino
CABEIHM Department, Batangas State University
Religion: Roman Catholic
Language Spoken: English,
Filipino (Tagalog) Ms. Nancy Macaraig
College Instructor
ORGANIZATIONAL CABEIHM Department, Batangas State University
AFFILIATIONS:
2013-2015
Philippine Society Of
Customs Administration
Students
Batangas State University
Chapter
Batangas City
SEMINARS ATTENDED:
[Type here]
MARY JOY M. FAJUTAG
CAREER OBJECTIVE
[Type here]
PERSONAL DETAILS:
Gender: Female CHARACTER REFERENCES
Date of Birth: September
24,1996
Civil Status: Single
Citizenship: Filipino Mrs. Prima C. Delizo
Religion: Roman Catholic OIC, Department Chair of Customs Administration
Language Spoken: English, CABEIHM Department, Batangas State University
Filipino (Tagalog)
Ms. Nancy Macaraig
College Instructor
ORGANIZATIONAL CABEIHM Department, Batangas State University
AFFILIATIONS:
2013-2015
Philippine Society Of
Customs Administration
Students
Batangas State University
Chapter
Batangas City
SEMINARS ATTENDED:
[Type here]
[Type here]
MERRYL A. GARCIA
CAREER OBJECTIVE
PRIMARY (ELEMENTARY)
2004-2009
Banalo Elementary School
Banalo, Lobo, Batangas
[Type here]
PERSONAL DETAILS: CHARACTER REFERENCES
Gender: Female
Date of Birth: January 26,
1997
Civil Status: Single Mrs. Prima C. Delizo
Citizenship: Filipino OIC, Department Chair of Customs Administration
Religion: Roman Catholic CABEIHM Department, Batangas State University
Language Spoken: English,
Filipino (Tagalog) Ms. Nancy Macaraig
College Instructor
ORGANIZATIONAL CABEIHM Department, Batangas State University
AFFILIATIONS:
2013-2015
Philippine Society Of
Customs Administration
Students
Batangas State University
Chapter
Batangas City
SEMINARS ATTENDED:
[Type here]
MONICA C. MANALO
CAREER OBJECTIVE
SECONDARY
(HIGHSCHOOL)
2009-2013
Bauan Technical High
School
Bauan, Batangas
PRIMARY (ELEMENTARY)
2004-2009
As-is Elementary School
[Type here]
Bauan, Batangas
PERSONAL DETAILS: CHARACTER REFERENCES
Gender: Female
Date of Birth: May 22,1997
Civil StatuS: Single
Citizenship: Filipino Mrs. Prima C. Delizo
Religion: Roman Catholic OIC, Department Chair of Customs Administration
Language Spoken: English, CABEIHM Department, Batangas State University
Filipino (Tagalog)
Ms. Nancy Macaraig
College Instructor
ORGANIZATIONAL CABEIHM Department, Batangas State University
AFFILIATIONS:
2013-2015
Philippine Society Of
Customs Administration
Students
Batangas State University
Chapter
Batangas City
SEMINARS ATTENDED:
[Type here]
[Type here]