PPA revises billing, collection procedures for South Harbor, MICT wharfage charges

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PPA revises billing, collection procedures for South Harbor, MICT wharfage charges
Manila International Container Terminal and Manila South Harbor. Photo from Philippine Ports Authority.
  • The Philippine Ports Authority revised its policy on systems and procedures related to the billing and collection of wharfage charges on cargoes at the Manila South Harbor and Manila International Container Terminal
  • The new rules are contained in PPA Memorandum Circular No. 03-2024
  • The rules aim to digitalize process of issuing receipts to help reduce face-to-face interactions

The Philippine Ports Authority (PPA) revised its policy on systems and procedures related to the billing and collection of wharfage charges on cargoes at Manila South Harbor (MSH) and Manila International Container Terminal (MICT).

The new rules, contained in PPA Memorandum Circular (MC) No. 03-2024 dated February 23, aims to digitalize the process of issuing receipts to help reduce face-to-face interactions. The circular took effect immediately.

The revised policy is in compliance with Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018), which mandates all offices and agencies that provide government services to regularly undertake cost compliance analysis, time and motion studies, undergo evaluation and improvement of their transaction systems and procedures and reengineer the same if deemed necessary to reduce bureaucratic red tape and processing time.

MC 03-2024 combines in one circular the policies for both MSH and MICT covered by two different orders: MC 12-99 or the revised systems and procedures in the billing and collection of charges against cargoes at MSH issued in March 1999; and Memorandum Order (MO) No. 007-2016 or the revised systems and procedures in the billing and collection of charges against cargoes at MICT issued in May 2016.

MC 03-2024 modifies and/or repeals MC 12-99, MO 007-2016, and other PPA rules and regulations inconsistent with the new policy.

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Under the new circular, the cargo owner/customs broker should gather the required documents, or their equivalent, before logging into the terminal operator’s online portal—WebTrack for MSH, and Advanced Customer Transaction System (ACTS) for MICT.

For imports, these include applicable documents, such as the single administrative document (SAD), released through the Bureau of Customs’ Online Release System; Bureau of Internal Revenue (BIR) Form 2307 or the Certificate of Creditable Tax Withheld at the Source, if applicable, for PPA and terminal operator; bill of lading; and value-added tax (VAT) profiling/requirements for VAT zero-rated transactions.

For exports, required documents include the approved export declaration or applicable BOC-approved export permit and BIR Form 2307.

However, if the cargo is exempted from wharfage payment under existing regulations, the cargo owner/customs broker should first secure exemption from PPA and input/select the appropriate commodity code.

The cargo owner/customs broker should then access the terminal operator’s online portals and then enter their log-in details. If the transaction is in order, the cargo owner/customs broker may download a copy of the terminal operator’s electronic official receipt (eOR) for payment of the cargo charges, and the acknowledgment receipt for payment of wharfage charges.

The PPA eOR will be generated using PPA’s Internet-based Port Operations and Receipting for Terminals System (IPORTS), which can be accessed by the cargo owner/customs broker through the terminal operators’ portals.

On a daily basis, the terminal operator will be required to directly remit all wharfage collection of the day to the PPA authorized government depository bank account not later than the next banking day. Late remittances will incur interest and penalties pursuant to PPA regulations. Any discrepancies between the wharfage collection and remittance to PPA will be subject to reconciliation on the following business day. – Roumina Pablo