-
The Philippine Ports Authority issued amended guidelines on the use of the decentralized revolving funds payment scheme by port users for payment of their invoices/billings
-
PPA Memorandum Circular No. 006-2024 dated April 23 provides alternative options to payment when the revolving fund balance falls below the 20% threshold
-
Under the memo, cargo and vessel charges may now be settled through bank-to-bank transfer/deposit; electronic payment is also an alternative
The Philippine Ports Authority (PPA) has amended rules on the use of the decentralized revolving funds (RF) payment scheme by port users for payment of their invoices/billings for cargo and/or vessel charges.
PPA Memorandum Circular (MC) No. 006-2024 dated April 23 and effective April 26, provides alternative payment options when the revolving fund balance falls below the required 20% threshold.
A previous memo, MC 15-2015, identifies cash as the only payment option. An exception is the maintenance of a revolving fund which addressed port users’ concerns on carrying too much cash and avoiding late charges and/or penalties.
Under MC 006-2024, cargo and vessel charges may now be settled through bank-to-bank transfer/deposit; electronic payment is also an alternative.
General policies remain the same under the new circular. The decentralized revolving fund facility remains open to all port users for the payment of their invoices/billings for cargo and/or vessel charges.
RF customers availing of the decentralized RF facility are still required to maintain with PPA or the servicing Port Management Office (PMO), as applicable, a minimum cash deposit equivalent to its average 15-day transaction volume.
The decentralized RF should still be replenished every week or when the balance reaches 20% of the required minimum deposit to ensure transactions are adequately covered by the decentralized deposit balance.
The decentralized RF customer whose balance falls below the 20% threshold will automatically be treated as a “cash basis” customer.
The decentralized RF privileges will be restored only when replenishment is made, and the minimum required decentralized RF balance is met.
A customer availing of the decentralized RF facility is still required to accomplish a customer registration form (CRF). The RF customer availing of the decentralized RF facility will be assigned a debtor code for each area of operation or servicing PMO and should maintain a separate RF per servicing PMO.
Upon approval of the CRF, the port user with decentralized RF facility should deposit the minimum maintaining balance at any servicing PMO for credit to its account.
A port user with decentralized RF facility should make a separate deposit for each enrolled area of operation or servicing PMOs.
Several changes were made on the procedures for billing, application/charging of computation sheet against RF, and additional deposit to RF.
MC 006-2024 provides new guidelines for the withdrawal of RF privileges. It noted that the privilege of maintaining RF will be withdrawn from the customer who opted for its termination while the unutilized RF with the servicing PMO will be refunded in cash.
PPA in 2020 launched its electronic-payment portal to digitize collection of port charges and reduce face- to-face transaction. – Roumina Pablo
