Remembering “Tiyo Celso”, my brave hero.

This blog is a tribute to my very own hero, in commemoration of today’s “Araw ng Kagitingan”event.

My Uncle (“Tiyo”) Celso is one of them heroes who participated in defending the beaches of Matina (Davao) against the invading Japanese forces during the early-days of World War II. He later on, took command of a bunch of guerrilla-fighters in the hills of Cebu, and continued the Filipino resistance movement against the Japanese up until US liberation day.

World War II adventures

When we (I and my siblings) were kids, after taking supper and doing our respective school homework, we then gathered around Tiyo Celso who was a great story-teller—remember that televisions and gadgets were not yet in vogue during those days.

Admittedly, as I have observed, my Tiyo Celso was gifted with above-average memory especially when recalling the minutiae of his war experiences; and he was able to maintain that ability even deep into his senior years. I would surmise, it must have been due to the peanuts and dried “dilis” that he is fond of taking, and his good physical conditioning (he loves to walk, a lot)

We were so fascinated and amazed by the war-adventure stories that he narrated to us, just like watching some war movies; and I would like to summarize them as follows (feel free to click on the web links, for more detailed information): 

Fig. 1 – The Mindanao WWII invasion theater
  • From his recruitment and military training in Marawi at the onset of WWII (he was in his mid-twenties then) as a USAFFE Philippine Scout trainee, where and when he was brain-washed by his American drill-masters that “a good Moro, is a dead Moro”; to his
  • Rush deployment to the beach-defenses of Matina (Davao) when they were transported from their Marawi camp by a military convoy under night-cover. He was emphatic in telling us his amazement upon seeing the speed and agility of the then newly deployed Willy’s Jeep military service vehicle—the precursor of our world-renowned Jeepneys; to his
Fig. 2 – The Willy’s Jeep military service vehicle
  • Retreat to a nearby schoolhouse after the beach defenses of Matina (Davao) succumbed to the superior invading Japanese forces. It was in this place and time that he and his comrades, having ran out of bullets, came face-to-face with the pursuing Japanese soldiers and engaged them into hand-to-hand combat. Consequently, he was injured and subsequently captured and imprisoned; to his
  • Escape from the Japanese prison-camp, trekking back to his home province Cebu by foot, and crossing the sea (a la island-hopping) via a small “banca” sailboat.  After making a surprise and quick visit to his family, he then enlisted and joined the guerrilla forces under the overall command of then US Army’s Lt. Col. James M. Cushing; to his
  • Ambushes of, and skirmishes with the occupying Japanese forces in the hills and roadways of Cebu island. He was also duty-bound in locating, identifying, and to some extent executing proven Japanese spies/ informers. He also took note of the fact that the Korean-recruits (of the then Imperial Army) were more cruel to the Filipinos during WWII; and his
  • Rendezvous aboard a “banca” sailboat (under night-cover) with a US submarines in the waters between Negros and Cebu islands. That particular submarine brought war materiel, personnel and vital US-liberation intelligence information; and on its departure, brought with them some American citizens who sought refuge among the Cushing’s guerrillas.

Military awards

In consideration of the above-mentioned combat incidents and actions, he was awarded recognition medals from both the US and Philippine governments, prominent of which are:

  1. The Purple Heart Medal, for the wounds that was inflicted on him during battle, and
  2. The Bronze Star Medal, for his acts heroism and meritorious service in the battlefield.
Fig. 3 – Purple Heart Medal
Fig. 4 – Bronze Star Medal

Of course, they were in addition to the usual benefits and privileges that were granted to bonafide WWII-veterans.

Post-war career

After the war and with support from the war veterans educational funds, he pursued his university studies and earned bachelor degrees in Commerce from the University of San Carlos(USC), and Law from the University of Visayas (UV). He eventually joined the civil service and pursued a career in the Bureau of Customs (BOC), where he rose to the position of BOC Collector, Port of Dadiangas City prior to his retirement from the government service.

Personal life

Tiyo Celso remained single by choice, and was so generous in supporting me and my siblings through college. As a parent (and brother to my Father), he was a strict disciplinarian. He used what he learned from the military in molding us kiddos. It took some time for me to appreciate his methods. I realized later on, and fully understood him when I had a family and children of my own. In fact, I’m convinced that the military way is still the more-effective method in molding the character and mission-orientation of a person.

Tiyo Celso migrated to the US in 1986 to pursue his dream of becoming a US-citizen, and reaping more benefits and privileges of a US WWII veteran. He decided to settle in San Diego CA where Filipinos abound, and was granted his US citizenship the following year—a dream that he cherished throughout his lifetime. I recalled that he actively campaigned for the Philippine statehood movement back in 60s.

Coming home

Tiyo Celso suffered a massive stroke at his San Diego apartment while taking a bath, and was brought to the hospital by his building administrator friend, who dutifully informed us of his predicament. He eventually died of multiple-organ failure on October 1, 2001 at the Scripps Mercy Hospital in San Diego City CA at the age of 85. He was dutifully cared-for at his deathbed by my wife, Gay; and my elder brother’s wife, Zoraida.

Fig. 5 – Scripps Mercy Hospital

The cardiac-arrest incident was so sudden that we (my siblings and I, Tiyo Celso’s nearest kins), after considering our respective options and prior commitments at that time, decided to urgently dispatch Gay and Zoraida to provide the necessary care/ assistance to the bed-ridden Tiyo Celso. Fortunately, Gay who was visiting his sister in Las Vegas at that time, arrived  in San Diego first. Zoraida, on the other hand, has to work his way from Iligan City, Northern Mindanao, Philippines. They faithfully executed our family’s decisions that were remotely relayed to them over the phone and internet. (I have to recall Gay a few days later, after learning of her Mom’s death on October 7, 2001 i.e., six-days after Tiyo’s death.)

Tiyo Celso’s remains was cremated and the ashes were brought by Zoraida on her homeward trip, and was eventually interred at the Cebu Memorial Park.

Fig 6. – Tiyo Celso as a young Philippine Scout cadet

I will never forget my very own brave and generous hero, Lt. Col. (Ret.) Celso C. Enriquez—may God rest his soul in eternal peace.

——————————End——————————–


INCOTERMS® 2010 Rules – a reprint

Guide to the Incoterms® 2010 Rules
As reprinted from the ISM website.

The Incoterms® 2010 rules* (International Commercial Terms) were developed by the International Chamber of Commerce (ICC) as a uniform set of rules to clarify the costs, risks and obligations of buyers and sellers in international commercial transactions.  Because they address issues relating to import and export, Incoterms® 2010 rules are most appropriate for use in international shipping; they are, however, used for U.S. domestic shipping as well.

Incoterms® 2010 rules are periodically revised and multiple versions are available for use by contracting parties.  The Incoterms® 2010 rules became effective January 1, 2000, and remain in effect. The Incoterms® 2010 rules are effective as of January 1, 2011.

Refer to the ICC Web site at www.iccwbo.org/Incoterms/id3040/index.html for information about these terms and their definitions, which are copyrighted by the ICC.

Note:  Although the new Incoterms® 2010 rules became available for use as of January 1, 2011, Incoterms®  2000 rules continue to be available.  It is incumbent upon contracting parties to determine which term they want to use and to designate the version being applied.

For some time Incoterms® rules have consisted of 13 terms. Incoterms® 2010 rules eliminate four of the previously-existing terms (DDU, DES, DEQ and DAF) and add two new terms (DAT and DAP), resulting in a total of 11 terms.  The new version is made available for both domestic and international use; contracting parties should, however, review the applicability of these terms to the domestic environment prior to applying them.

The terms are structured to increase incrementally the obligations (control, risk and cost) on one party while decreasing the obligations of the other, depending on the specific term chosen.  Each term clarifies which party is responsible for:

  • Inland freight (transportation within the origination country)
  • Forwarder selection
  • Export clearance
  • Carrier selection and scheduling
  • International freight
  • Import clearance
  • On-carriage (transportation within the destination country)

Delivery occurs (and risk of loss transfers) at the point designated by the term selected.  Transfer of title is NOT covered by any of the Incoterms® 2010 rules and must be separately specified by the parties.

Incoterms® 2010 rules can be divided into two groups – multi-modal (available for multiple forms of transport, including land, air and waterway transportation) and single mode (applicable only to waterway transportation). The terms in each group are listed on page 2 in order of increasing responsibility for the seller (and correspondingly decreasing responsibility for the buyer).  So, for example, using the term EXW makes the seller responsible only for making the goods available at its own premises; delivery occurs and risk of loss transfers at that point.  When the term DDP is used, the seller becomes responsible for everything except on-carriage where the location for delivery is not the buyer’s actual location.  DDP is the only Incoterms® rule that makes the seller responsible for import clearance.

Buyers in the United States who are likely to be familiar with delivery terms defined within Articles 2 and 2A of the Uniform Commercial Code (UCC) should pay particular attention to the overlap in the use of certain terms/abbreviations between the Incoterms® 2010 rules and the UCC.  “Free on board” (F.O.B.), “free alongside” (F.A.S.) and “C.I.F.” are all used in the UCC, but their definitions there are much different from the definition of the same terms in the Incoterms® 2010 rules. Under the Incoterms® 2010 rules all three of the overlapping terms (FOB, FAS and CIF) fall into the “single mode” group, meaning they can only be used for waterway transportation.  Under the UCC only F.A.S. is limited to use with a vessel.

Numerous publications and seminars are available through the International Chamber of Commerce (http://store.iccbooksusa.net/ or http://www.iccbooks.com/Home/Home.aspx) as well as from other organizations explaining in depth the application of both the Incoterms® 2000 rules and Incoterms® 2010 rules.

  TERM – DEFINITION
The multi-modal (available for multiple forms of transport, including land, air and waterway transportation) terms are:
⊕ Unchanged in Incoterms® 2010 rules Ex works (EXW) named place (seller’s location) –

An Incoterms® rule under which the price that the seller quotes applies only at the point of origin. The buyer takes possession of the shipment at the point of origin and bears all costs and risks associated with transporting the goods to the destination. This Incoterms® rule is regarded as the most open-ended. There is generally nothing specific regarding delivery and there is a mutually convenient pickup time for exporter and importer agreed upon. Used for any mode of transport.

See Also Incoterms® rules  

Compare: Delivered Duty Paid

⊕ Unchanged in Incoterms® 2010 rules Free Carrier At (FCA) named place (seller’s country) –

An Incoterms® rule under which seller delivers goods, cleared for export, to the buyer-designated carrier at a named location. Used for any mode of transport. Seller must load goods onto the buyer’s carrier. The key document signifying transfer of responsibility is receipt by carrier to exporter.

See Also: Incoterms® rules

⊕ Unchanged in Incoterms® 2010 rules Carriage Paid To (CPT) named place of destination –

An Incoterms® rule used for any mode of transportation. Buyer assumes title and risk of loss when goods are delivered to the carrier. Seller pays shipping to destination. CPT delivery takes place when the exporter hands over goods to the carrier. The exporter is given bill of lading or equivalent document (air waybill, sea waybill, multi-modal bill of lading).

See Also: Incoterms® rules

Compare: Carriage and Insurance Paid To

⊕ Unchanged in Incoterms® 2010 rules Carriage Insurance Paid (CIP) named place of destination –

An Incoterms® rule under which seller delivers goods to seller-designated carrier, pays cost of carriage to named destination and must obtain insurance to cover buyer’s risk of loss in transit. Buyer bears risk of loss and any additional costs after seller’s delivery to carrier, protected by seller’s insurance. Used for any mode of transportation; same as CPT, but seller pays for insurance and names buyer as beneficiary.

See Also: Incoterms® rules

Compare: Carriage Paid To

⊕ Eliminated in Incoterms® 2010 rules Delivered Duty Unpaid (DDU)  named place of destination –

An Incoterms® rule under which seller bears the risk and expense of getting the goods to a named destination, but excluding duties, taxes and other official charges payable on import. Some variations on DDU are possible if the seller is to pay some of the import charges. Delivery takes place when the exporter places goods at the disposal of the importer in city of delivery. There is no corresponding transportation document, although a bill of lading is usually used. Used for any mode of transportation. Same as Delivered Ex Quay (DEQ), except that the buyer and seller can specify delivery of the goods to a warehouse or other destination point. Seller must arrange for ground transport in the buyer’s country. Buyer bears responsibility for import customs duties.

This term is defined in the Incoterms® 2000 rules.  It has been eliminated in the Incoterms® 2010 rules, but the Incoterms® 2000 rules can still be used by contracting parties if they so agree.

See Also: Incoterms® rules

Compare: Delivered Duty Paid, Delivered Ex Quay, Delivered at Terminal, Delivered at Place

⊕ New in Incoterms® 2010 rules Delivered at Terminal (DAT) named place of destination –

An Incoterms® rule under which seller delivers goods to a named terminal in the destination country.  Buyer is responsible for import clearance and any further in-country carriage.  This term is one of two terms considered to be replacement terms for Delivered Duty Unpaid (DDU), which is eliminated from Incoterms® 2010.

See Also:  Incoterms® rules

Compare:  Delivered at Place, Delivered Duty Unpaid, Delivered Duty Paid

⊕ New in Incoterms® 2010 rules Delivered at Place (DAP) named place of destination –

An Incoterms® rule under which seller delivers goods to the buyer’s facility or another named location (other than a terminal) in the destination country.  Buyer is responsible for import clearance and any further in-country carriage.  This term is one of two terms considered to be replacement terms for Delivered Duty Unpaid (DDU), which is eliminated from Incoterms® 2010 rules.

See Also:  Incoterms® rules

Compare:  Delivered at Terminal, Delivered Duty Unpaid, Delivered Duty Paid

⊕ Unchanged in Incoterms® 2010 rules Delivered Duty Paid (DDP) named place of destination –

An Incoterms® rule under which seller (exporter) is responsible for all costs involved in delivering the goods to a named place of destination and for clearing customs in the country of import. Seller provides literally door-to-door delivery, including customs clearance in the port of export and the port of destination. Thus, seller bears the entire risk of loss until goods are delivered to the buyer’s premises. Full term is “DDP named place of destination.” Delivery takes place when exporter places goods at disposal of importer in city of delivery. There is no corresponding transportation document, although bill of lading is usually used. Used for any mode of transportation. Seller bears all risk and customs responsibilities until the goods are delivered to a specified location and clear import customs. Buyer assumes risk and title when the goods are delivered to the buyer’s specified location.

See Also: Incoterms® rules

Compare: Delivered Duty Unpaid, Ex Works, Free On Board (UCC), Delivered at Terminal, Delivered at Place

The single mode terms (which can only be used with waterway transportation) are:
⊕ Unchanged in Incoterms® 2010 rules Free Alongside Ship (FAS) named vessel at loading port –

An Incoterms® rule used only for maritime trade (transport by vessel) Under this arrangement, the supplier agrees to deliver the goods in proper condition alongside the vessel. The buyer assumes all subsequent risks and expenses after delivery to the pier. This term can only be used for waterway transportation. 

See also: Incoterms® rules

Compare: F.A.S – UCC

⊕ Unchanged in Incoterms® 2010 rules Free On Board (FOB) named vessel at loading port –

An Incoterms® rule used only for maritime trade (transport by vessel) under which responsibility for the shipment transfers from exporter to importer when shipment is loaded aboard the vessel. Seller must load the goods onto the ship. Centuries of maritime tradition says that the FOB point is the Ship’s Rail, also referred to as “Freight on Board.” This is the older maritime term of trade. If the freight falls while loading, however, it is the exporter’s responsibility if it lands on quay, but it is the importer’s responsibility if it lands on ship. The documentation of delivery is the ocean bill of lading or sea waybill. This term can only be used for waterway transportation.

See Also: Freight Collect, Incoterms® rules

Compare: Free On Board – UCC

⊕ Unchanged in Incoterms® 2010 rules Cost & Freight (CFR)  named port of destination

An Incoterms® rule under which goods are considered to be “delivered” (and buyer assumes risk of loss) when they pass the ship’s rail in the port of shipment.  The seller is responsible for clearing the goods for export and for costs and freight to bring the goods to the destination port.  This term can only be used for waterway transportation.

See Also: Incoterms® rules

Compare: C.&F. – UCC, C.I.F – UCC, CIF – Incoterm, Carriage Paid To

⊕ Unchanged in Incoterms® 2010 rules Cost, Insurance & Freight (CIF) named port of destination –

This Incoterms® rule is similar to Cost & Freight (CFR) where goods are considered to be “delivered” (and buyer assumes risk of loss) when they pass the ship’s rail in the port of shipment.  The seller is responsible for clearing the goods for export and for costs and freight to bring the goods to the destination port.  Under CIF the seller must also obtain marine insurance against buyer’s risk of loss or damage in transit.  This term can only be used for waterway transportation.

See Also: Incoterms® rules

Compare: C.&F. – UCC, C.I.F – UCC, Cost and Freight, Carriage Insurance Paid

⊕ Eliminated in Incoterms® 2010 rules Delivered Ex Ship (DES) named port

An Incoterms® rule under which seller’s delivery obligation is satisfied when goods are placed at buyer’s disposition on board a vessel at a designated destination port, not cleared for import.

This term is defined in the Incoterms® 2000 rules.  It has been eliminated in Incoterms® 2010 rules, but Incoterms®  2000 rules can still be used by contracting parties if they so agree.

See Also: Incoterms®  rules

Compare: Delivered Ex Quay

⊕  Eliminated in Incoterms® 2010 rules Delivered Ex Quay (DEQ) named port

An Incoterms® rule used for ship transport. Signifies that the seller is responsible for all risks and costs incurred to have the goods delivered and unloaded at a named port of destination. This includes the obligation to contract and pay for freight and transportation costs by sea or inland waterway, unloading fees, export and import licensing fees, and other taxes (unless specifically excluded in the contract). The buyer is obligated only to assist in obtaining any import license or other official authorization necessary to import the goods.

This term is defined in the Incoterms® 2000 rules.  It has been eliminated in the Incoterms® 2010 rules, but Incoterms®  2000 rules can still be used by contracting parties if they so agree.

See Also: Incoterms® rules

Compare: Delivered Ex Ship

⊕ Eliminated in Incoterms® 2010 rules Delivered at Frontier (DAF)

An Incoterms® rule under which seller’s delivery obligation is satisfied when goods are placed at buyer’s disposition on arriving means of transportation, cleared for export but not import, and not unloaded. Delivery takes place when the vehicle is placed at disposal of importer at designated border city. There is no specific documentation for transfer, although some carriers provide some. Used for any mode of transportation. Buyer acquires title, risk and responsibility for import customs clearance.

This term is defined in the Incoterms® 2000 rules.  It has been eliminated in the Incoterms® 2010 rules, but the Incoterms® 2000 rules can still be used by contracting parties if they so agree.

See Also: Incoterms® rules

—end—


Reference: https://www.instituteforsupplymanagement.org/glossary/Glossary.cfm

Rise and fall of PICOP – Mindanao’s timber plantations (Part II) CROSSROADS (Toward Philippine Economic and Social Progress)

By Gerardo P. Sicat (The Philippine Star) | Updated August 12, 2015 – 12:00am
2 781 googleplus1 9. Reprinted from Philippine Star, Business Section, Sun | 06/04/2017 04:22pm |


I am reprinting this article from Philstar which was written by an external-analyst and a co-faculty at the UPD Gerardo P. Sicat, to serve as additional literature in our study of PICOP. When I joined and until the time that I left PICOP, I still was so relatively-young that I was not able to fully-grasp the socio-economic-environmental-political games that were being played by businessmen and politicians during that era. My foremost concern then was to apply the knowledge that I learned from school and get as much experience(s) to move-on in my chosen career—in fact, the terms/ phrases global-warming and climate-change were not yet spoken nor, even whispered at that time – RHE

Tree plantations began to spread during the late 1960s in the Agusan-Surigao area of Mindanao. They were seen as part of the reforestation program of the government.

Also, a major private company was heavily involved in expanding tree plantations for its own operations.

The Paper Industries Corporation of the Philippines (PICOP). In 1952, a massive timber license covering 186,692 hectares of forest lands was granted to a logging company, Bislig Industries, Inc. In 1963, the company renamed itself as Paper Industries Corp. of the Philippines (PICOP).

PICOP was to become the first company whose pulp and paper operations would be fully integrated with its raw material source, which is the forest concession. In conception, it was a bold new venture. It was the first such company in Southeast Asia that would source its supply of materials from the mixed use of tropical forest trees for its pulp and paper operations.

The whole concession area provided a steady base for selective logging of the mature Philippine hardwood forests that have a natural logging cycle of 25 to 35 years. The large concession would allow the cutting of logs for export and for further processing.

The pulp and paper mill would require a steady supply of fast growing varieties of forest trees. It was planned that up to 46,000 hectares of the logging concession area could be clear-cut for the planting of trees that mature in seven to eight years.

The company also foresaw other private tree farms could be induced to expand the supply of tree plantations. It forecast an additional 20,000 hectares of private plantations could be tapped to supplement the concession area.

PICOP at its peak. To harvest logs continually required the construction and maintenance of a road network. At its peak in 1984, the company reported it had 2,100 kms. of roads within its concession that were good enough to carry 50 ton loads under all weather conditions.

The industrial activity rested on its lumber, plywood, and its newsprint lines. In 1984, the rated capacity was for various industries in Bislig consisting of a newsprint line, 86,000 MT; container board , 68,000 MT; plywood plants #1 and #2, 150,000 MT; lumber, 50,000 cubic meters; and blockboard, 10,000 C.M. From acquisitions, it had further pulp and paper making capacity located in the Iligan area.

For its part, PICOP undertook the planting of imported and indigenous fast growing varieties for its own plantations: falcata (11,970 hectares), eucalyptus deglupta (13,600 hectares), acacia mangium (5,560 hectares), and gmelina arborea (300 hectares) and pine trees (820 hectares). Of these fast growing trees, eucalyptus was the notable indigenous variety for the rest were imported tropical varieties.

Long term loans for tree planting from DBP also helped in the promotion of privately owned tree plantations. Such a loan program was initiated by initial funding from the World Bank. PICOP also actively provided technical information and assistance, including estimates of the values of trees grown to maturity.

The fall and demise of PICOP. Although tree plantations have survived in Mindanao today, they did not rise to the scale hoped for by those in the industry. A big part of that story was the fall and demise of PICOP.

PICOP fell apart during the financial, economic and institutional changes that hit the nation during the late 1980s. Politically, these were the years when the country experienced political turmoil, as the country transitioned between the Marcos and the Cory Aquino years.

Lack of space requires that I summarize two major points why PICOP failed:

First: institutional arrangements were undermined. PICOP’s operations depended on sustaining the institutional arrangements on which it was founded. These fell apart during the 1980s, a time when the country suffered economic and political turmoil.

  • Peace and order became a major problem as the NPA rebellion became more aggressive. The property rights assigned to the company by its concession also were affected (or destabilized ) by changing forestry regulations and policies.
  • Thus, squatting on the land and intrusions on the property rights associated with the tree plantations became rampant. Within the firm, labor union troubles percolated. In no small account, this also led to local political problems for the company.

Second: PICOP’s internal flaw as an industrial enterprise. In my view, this was a more significant explanation for its failure as an enterprise.

  • The company’s management of its future was grossly flawed. Despite its huge size, it was based on a go-alone industrial enterprise of the main owners that depended mainly on credit from the state financial institution. Of course, it had its income from the logging and industrial operations based on the forest concession, but this did not prove sufficient.
  • The company did not seek major partners in the field of paper making that could have helped it to raise capital, improve its technological capacity and productivity, and broaden its markets for its output.
  • PICOP was firmly framed along the idea the company provide production mainly for the domestic market. All its actions with respect to capturing the domestic market through state support limited its enterprise vision.
  • But its main financing was dependent on the DBP, the state development bank. When it failed to service its loans, it became an acquired asset of the state financial institution.
  • Later, when the company was sold to new investors by the government through the privatization program, those who were allowed to buy it were themselves undercapitalized and had little capacity to carry through its major industrial plan.

PICOP’s case compares poorly with the Asia Pulp and Paper (APP), the Indonesian company, which has grown on the same model of a pulp and paper company dependent on mixed use of forest trees.

From its very beginning, APP (although essentially Indonesian-owned) had competent and foreign partners from Taiwan who were experienced in pulp and paper making. APP today is a major force in the international paper and pulp industry. (It is even the main target of criticisms of environmentalists like Green Peace for its exploitation of forest resources). Today, PICOP is essentially dead.


Reference: http://www.philstar.com/business/2015/08/12/1486972/rise-and-fall-picop-mindanaos-timber-plantations-part-ii