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PPA sets transfer rates for overstaying imports from Manila ports to offdock CYs

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The Philippine Ports Authority (PPA) has specified transfer rates for overstaying import cargoes from Manila South Harbor and Manila International Container Terminal (MICT) to designated off-dock facilities.

PPA Administrative Order (AO) 03-2019 was issued to implement paragraph 9 of AO 02-2019 on transfer charges for overstaying imports.

The cargo transfer is part of efforts to promote optimal terminal efficiency and address high import dwell time at South Harbor and MICT. Overstaying import cargoes have been identified as one of the reasons for the high yard utilization rate of Manila ports at the beginning of the year and the related problem with empty container returns.

AO 03-2019 has the same effectivity date of April 5 as AO 02-2019, although AO 03-2019 was dated May 8 and received by PPA’s records division only on May 9.

AO 02-2019 applies to all imported goods, whether containerized or not, which remain within the premises of South Harbor, MICT, and their designated ports beyond the PPA-prescribed free storage period (FSP) or approved extended FSP, and which have been cleared by the port authority and other government agencies, such as Bureau of Customs (BOC), for delivery and/or withdrawal by the importers or their authorized representatives.

It also applies to all cleared import cargoes which remain inside the port for more than 30 days from more than 30 days from date of discharge.

Prior to the release of overstaying import cargoes from the designated port, AO 03-2019 said charges which these cargoes have accrued while in the premises of South Harbor and MICT shall be paid by the cargo owner, importer, or consignee or their agents or customs brokers at the port operators’ billing offices.

For containerized (per box) and non-containerized (per metric ton) cargoes, the charges are the current applicable import wharfage and arrastre rates at South Harbor and MICT.

Storage charges

For storage charges, the current applicable regular storage and penalty storage charges at South Harbor and MICT will be imposed on containerized cargoes per box, while the current applicable regular storage charges will be imposed on non-containerized cargoes.

During the transfer of overstaying cargoes from the port to the designated off-dock facility, transport-related charges (i.e. trucking and/or barging) which are based on market rates, shall be on the account of the terminal operator, without prejudice to the right of the terminal operator to collect from the cargo owner, importer, or consignee or their agents or customs brokers.

Related to the transfer of overstaying import cargoes, the consignee/importer shall settle the arrastre and storage charges at the designated port. For containerized cargoes, the current applicable arrastre rates and penalty storage charges at South Harbor and MICT shall apply. For non-containerized cargoes, the existing applicable arrastre and regular storage charges shall be imposed.

All handling charges and storage charges levied shall be subject to PPA share and remitted consistent with the prevailing schedule of remittances pursuant to the management contract of the terminal operators, Asian Terminals Inc. (ATI) and International Container Terminal Services, Inc. (ICTSI), with the ports authority.

ATI operates the Manila South Harbor and ICTSI, MICT.

AO 03-2019 and AO 02-2019 came about after PPA, BOC, the Association of International Shipping Lines (AISL), ATI and ICTSI signed a manifesto on March 15 disallowing all Customs-cleared containers from overstaying at South Harbor and MICT and have them transferred to outside depots.

The guidelines also follow a PPA notice to the public published on March 1 that directed all importers, consignees, cargo owners, and shippers to withdraw within 15 days (until March 15 only) from South Harbor and MICT their BOC-cleared containers in order to free up space in these ports.

AO 02-2019, as well as the previous orders issued last March, are meant to address high import dwell time and promote optimal terminal efficiency “in managing increased trade and demand for cargo clearance facilitation” at the two Manila ports. – Roumina Pablo


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