PPA removes maximum limit for assessment of vessel charges

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The Philippine Ports Authority (PPA) has lifted the 50,000 gross tonnage (GT) cap in the assessment of vessel charges, removing the maximum limit for domestic and foreign vessels that can be charged.

According to PPA Memorandum Circular (MC) No. 09-2018 dated May 8 and published May 23, the lifting is pursuant to PPA Board Resolution No. 2696.

“As such, all foreign and domestic vessels calling at PPA ports shall be assessed vessel charges (port dues, dockage-at-berth, dockage-at-anchorage, usage fee, and lay-up fee) with no maximum limit,” MC 06-2018 stated.

The new policy takes effect on June 7.

In a related order, PPA in Memorandum Order (MO) No. 04-2018 dated May 8 clarified that the assessment of vessel charges will be based on GT and not gross registered tonnage (GRT).

This is being undertaken pursuant to PPA BR No. 2697 and to be consistent with Maritime Industry Authority (Marina) Circular (MC) No. 2007-04 and the 1969 International Convention on Tonnage Measurement of Ships (ITC of 1969).

Marina MC 2007-04 provides the rules and regulations on the admeasurement/re-admeasurement of Philippine-registered domestic ships, and states that all Philippine-registered ships shall be admeasured according to the applicable provisions of the ITC of 1969.

Adopted by the International Maritime Organization in 1969, ITC was its first successful attempt to introduce a universal tonnage measurement system. The convention provides for gross and net tonnages (NT), both of which are calculated independently. GT forms the basis for manning regulations, safety rules, and registration fees, while both GT and NT are used to calculate port dues.

PPA assistant general manager for operations Hector Miole told PortCalls that PPA was just “late” in adopting the change, but noted that this has “no significant impact” on charges.

MO 04-2018 provides sample computations on using GT for vessel charges for both domestic and foreign vessels. – Roumina Pablo