Home » Breaking News, Customs & Trade, Maritime, Ports/Terminals » Cebu port revises storage rates for foreign cargoes starting Feb 24

Cebu_containersThe Cebu Port Authority (CPA) is adjusting storage rates on foreign cargoes at the Cebu International Port (CIP) beginning February 24.

The revision in rates, as contained under CPA Memorandum Circular (MC) No. 01-2016 dated January 28, supersedes MC 05-2015, a May 2015 order which effectively reduced storage rates. MC 05-2015, in turn, repealed MC 02-2015 which took effect in March 2015 and which had raised storage rates to discourage overstaying of cargoes at the port.

CPA, in an email to PortCalls, said its Port Management Department “concluded that with the implementation of CPA MC 02-2015, the yard utilization rate was lower. With the guidelines of MC 05-2015, the intention of which was supposed to be more considerate, some importers have discovered how to circumvent the guidelines.” CPA did not provide details on how this has been done.

The port authority said MC 01-2016 went through consultations with stakeholders last month.

Under the new circular, loaded, empty, and non-containerized imports will continue to enjoy free storage for five calendar days. Loaded, empty, non-containerized exports will have four calendar days of free storage from the previous three days.

The free storage period (FSP) is granted even after the cargo owner has received clearance to withdraw the shipment, the circular noted. However, once the period is up, storage surcharges will apply.

After the FSP, a 20-foot loaded import will be charged P462.50 for the sixth to 10th day of storage; P508.90 from the 11th to the 15th day; P554.50 (16th to 20th day); P600.90 (21st to 25th day); P647.30 (26th to 30th day); and P693.75 (31st day and beyond).

For a loaded export 20-footer, the storage rates after the FSP will range from P72.30 for the sixth to 10th day up to P174.10 from the 32nd day and beyond.

Fees for an empty import 20-footer after the FSP will be P578.15 for the sixth to 10th day; P636.15 for the 11th to 15th day; P693.15 (16th to 20th day); P751.15 (21st to 25th day); P809.15 (26th to 30th day); and P867.20 for the 31st day and beyond.

For empty export containers, fees after the FSP will be P90.40 per 20-footer for the fifth and sixth days up to P217.65 for the 32nd day and beyond.

Meanwhile, the storage fees for foreign non-containerized cargoes, post-FSP, are being reduced to P13.40 per revenue ton (RT) per calendar day for imports from the previous P15 per RT, and those for exports to P6.25 per RT per calendar day from P7 per RT.

Lower fees for cleared overstaying boxes

A surcharge on Customs-cleared but overstaying foreign cargoes will also be levied to avoid stockpiling at CIP and congesting the port, according to MC 01-2016. CPA clarified that surcharges for such cargoes are in addition to regular storage charges and regardless of the number of containers.

The storage surcharge for Bureau of Customs (BOC)-cleared but overstaying containers has also been cut, to P3,348.20 per calendar day for a 20-footer from P3,750 previously, and to P6,696.45 for a 40-footer from P7,500.

Cargo unclaimed or unpaid after 30 days will be treated as abandoned and subject to public auction.

“If and when BOC clearance is received by the cargo owner within the applicable FSP, the cargo owner will be granted the remaining days of the FSP without being charged with storage surcharge yet,” the circular said.

Early submission

At the same time, under MC 01-2016 stakeholders who submit import documents early to the BOC will get an incentive of graduated time allowance before storage surcharges apply.

“CPA shall grant a number of days with no storage surcharges but only regular storage charges in order to give time allowance for the withdrawal of containers after clearance from the BOC is received; Provided that the importer within two (2) working days, or a total of sixteen 16 working hours after the vessel arrives, has submitted the Import Entry (with Complete Shipping Documents such as Bill of Lading, Certificate of Origin, Commercial Invoice, Packing List, SSDT [Statement of Settlement of Duties and Taxes], Import Entries from Other Government Agencies, Fumigation, etc as required by BOC) and Internal Revenue Declaration (Entry Form) of their cargoes to the BOC for the timely processing of clearances by the said Bureau,” according to MC 01-2016.

A storage surcharge will only be imposed after the incentive of time allowance has lapsed, depending on the number of containers.

For import, export, loaded, or empty containers of whatever size numbering one to 10, the incentive of time allowance is one calendar day; for 11 to 20 containers, two days; 21 to 30 containers, three days; 31 to 40 containers, four days; and 41 containers or more, five days.

If the importer fails to submit on time, storage surcharges will apply immediately after the BOC clearance is received by the importer.

For importers who submit complete documentation within the prescribed period while getting clearance to withdraw within the FSP, “the importer may fully consume the remaining days of the FSP, and afterwards consume the applicable number of days for the incentive time allowance.” Consumption of the time allowance starts immediately once the remaining days of the FSP are used up, the circular further noted.

CIP experienced yard and berth congestion in 2014 and in early 2015 due to the influx of cargoes and the overstaying of containers, among others. To accommodate growing volumes, a new international terminal will soon be constructed with a completion target of 2019.

READ: Cebu Port leases 1.2 hectares to extend container yard

READ: Cebu Port Authority lists facilities for proposed P19.3B container terminal

According to the CIP’s cargo-handling operator Oriental Port and Allied Services Corp., yard utilization from February 1 to February 16 was 50% to 60%, down from around 70% to 90% in January 2016. – Roumina Pablo

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