Pimentel warns DoTC, MIAA against move to collect terminal fees from OFWs by November 1; calls for Senate inquiry

Senator Aquilino "Koko" Pimentel III warned the Department of Transportation and Communications (DOTC) and the Manila International Airport Authority (MIAA) against the implementation of the integration of terminal fees with airplane tickets by November 1, saying that this would violate an existing law exempting overseas Filipino workers (OFWs) from paying such fees.

"They want to violate an existing law exempting our OFWs from paying terminal fees. What for? Removing the terminal fee counters at the airport will not ease congestion because you will have another line where our modern-day heroes need to line up to refund a fee that they are legally exempted from paying. This new scheme should be scrapped because it is illogical, legally questionable, and extremely unfair to our OFWs," Senator Pimentel said.

Under MIAA Circular No. 08, terminal fees otherwise known as "international passenger service charge" (IPSC) amounting to Php 550 per passenger will be integrated in all air tickets, subject to remittance to MIAA by international airlines. OFWs who purchase their tickets in the Philippines will be able to claim their exemption by showing their overseas employment certificate (OEC) issued by the Philippine Overseas Employment Administration (POEA). However, for tickets that OFWs will purchase online and outside the country, the IPSC will be collected by default subject to refund by returning OFWs upon presentation of their OECs at the airport's designated counters or through the MIAA office.

Pimentel echoed the position taken by Labor Secretary Rosalinda Baldoz in her letter to DoTC Secretary Joseph Abaya, which the DOTC received on October 7, 2014. In that letter, Labor Secretary Baldoz said:

"While there is a refund scheme the MIAA has put in place for terminal fees to be integrated into the airline tickets, we reiterate our earlier position articulated by our representatives during the meetings called by MIAA to continuously and automatically exempt the OFWs from paying the IPSC (International Passenger Service Charge) even for tickets purchased abroad or via online. This is pursuant to Republic Act (RA) 8042 as amended by RA 10022 that mandates the exemption of migrant workers from the payment of the travel tax, documentary stamp and airport fee upon proper showing of proof of entitlement which is the OEC issued by the POEA."

Pimentel stressed that the DoLE's position is clear: MIAA and the DOTC should undertake all the necessary preparations and systems to ensure the continued automatic exemption of OFWs from payment of terminal fee and other fees provided by existing laws.

"We cannot have two major departments at odds with each other over the collection of terminal fees by airline companies. By default, this scheme will deprive our OFWs of a benefit that they have been enjoying since 1995, when the Migrant Workers' Act was passed. While we favor moves to ease the congestion in our airport terminals, existing laws must be respected," Pimentel said.

He lamented that airline companies should not be caught in between such differences in opinion between the DoTC and DoLE. "Let's resolve these issues by hearing all sides, and agreeing on a common interpretation of what the law actually says. Definitely, we will question the DoTC and MIAA on why they continue to insist on a November 1 implementation of the IPSC scheme even after getting the position of the Secretary of Labor as well as various OFW groups about this matter."

The senator will file a Senate resolution calling for an inquiry into MIAA's Memorandum Circular No. 08, series of 2014.