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1.         Authority

1.1.      Sections 2f, 6a(v), 22 and 23, PD 857
1.2.      PPA Memorandum Circular No. 06-89, as amended

2.         Scope

This Memorandum Circular shall cover collection of usage fees, stevedoring charges, wharfage dues, arrastre charges, storage fees, line handling, stripping/stuffing and other cargo handling charges in the baseport of PMO North Harbor.

3.         Definition of Terms

The following terms are defined for clarity:

3.1.      Cash and Carry System is a collection system in which payment is made by the parties primarily liable (the Shipping Line, the Shipper or the Consignee) in cash, manager's/cashier's check or PPA pre-approved company check prior to withdrawal of cargoes from the port/loading of cargoes unto vessel or before issuance of departure clearance.

3.2       Modified Cash and Carry System is an alternative collection system where the party availing has complied with the posting of fixed cash deposit and other requirements and given the privilege to pay on a per vessel per voyage basis within a period of three (3) working days from date of vessel departure.

3.3.      Double handling of cargoes refers to an operation where cargoes are transferred from one pier to another prior to delivery outside the port zone or loading unto vessel.

4.         General Provisions

4.1       The cash and carry system as defined in Section 3.1 shall be applicable to:

4.1.1.       Collection of usage fees
4.1.2.       Collection of stripping/stuffing charges for FCL container
4.1.3.       Collection from tramping vessels
4. 1.4.      Collection from defaulting liner as provided in Section 6.1.1.

4.2.      The Modified Cash and Carry System shall be applicable to all cargoes carried by liner vessels who have fully satisfied the provisions in Section 5.1.

4.3.      Wharfage, arrastre, stevedoring and other cargo handling charges and the corresponding 10% VAT shall be computed in accordance with existing approved tariff regulations. Under the Modified Cash and Carry System, the charges shall be paid by the shipping line acting as the authorized representative of the shipper or consignee.

4.4.      For double handling of cargoes, the additional arrastre charges shall be for the account of the shipping line.

5.         Specific Operating, Billing and Collection Guidelines

5.1.      To qualify for the Modified Cash and Carry System privilege, the following are required:

5.1.1.       Applicant shall be a liner vessel acting as representative of the shipper/consignee operating at North Harbor

5.1.2.       It has filed an application for the availment of the Modified Cash and Carry System (Annex 1);

5.1.3.       It has settled all outstanding accounts with PPA-North Harbor and STU North Harbor Port Services as of date of application; and

5.1.4.       It has posted a cash deposit equivalent to its average 3-day transaction volume (total transactions for the last 30 days x 3/30), subject to semi-annual updating by PMO North Harbor.

5.2.      Incorporated in this Memorandum Circular as Annexes 2, 3, 4 and 5 are the flow charts showing in detail the process flow in vessel clearance, discharging and loading of cargoes, the collection of charges and the documents required, viz:

5.2.1.       Process Flow for Payment of Usage Fees
5.2.2.       Process Flow for Inbound Cargo
5.2.3.       Process Flow for Outbound Cargo
5.2.4.       Process Flow for Payment of Wharfage, Arrastre and Stevedoring Charges for Modified Cash and Carry System

5.3.      Usage fee shall be paid by the Shipping Lines upon approval of the departure clearance of the vessel based on the Docket Report (Annex 6)

5.4.      In case of delay in the departure of the vessel, the additional usage fees shall be billed by PPA within two working days from the actual date of departure of the vessel.

5.5.      The Bill of Charges (Annex 7) shall be paid by the Shipping Line within two working days from receipt of the bill.

5.6.      The duly accomplished Discharging/Loading Tally Sheet (Annex 8) and the corresponding Computation Sheet (Annex 9) shall be the basis for the payment of wharfage, arrastre, stevedoring and other cargo handling charges by the Shipper/Consignee's Liner Representative. The Discharging/Loading Tally Sheet and the Computation Sheet shall be pre numbered accountable forms.

5.7.      The Cargo Handling Operator (CHO) shall distribute within one working day from date of vessel departure the accomplished Discharging/Loading Tally Sheet and the corresponding Computation Sheet as follows:

5.7.1.       Copy 1/Original Copy — Shipper/Consignee's Liner Representative/SL
5.7.2        Copy 2/Blue Copy — CHO Billing
5.7.3        Copy 3/Pink Copy — PPA Terminal
5.7.4        Copy 4/Yellow Copy — CHO Main Office

5.8.      The PPA/CHO shall post the total amount due and other pertinent information the Vessel Log Book/Monitoring of Payment (Annex 10).

5.9.      The Vessel Log Book/Monitoring of Payment shall be used to monitor the actual date of departure of the vessel and the actual date when the charges are due and paid, which shall be the basis for the imposition of the sanctions prescribed herein.

5.10.   The payment shall be made by the Shipper/Consignee's Liner Representative within 3 working days from date of departure of the vessel on a per terminal, per shipping line, per vessel, per voyage basis, duly supported by the Payment Distribution Sheet (Annex 11).

5.11.   PPA/CHO shall reconcile the payment against the Bill of Lading, Final Manifest and any container inventory record and shall issue a Bill of Charge for any under-payment, or Confirmation Notice if payment is in order (Annex 12), not later than 30 calendar days from date of departure of the vessel.

5.12.   Shipper/Consignee's Liner Representative shall pay within two working days from receipt of the Bill of Charge.

5.13.   In case of over-payment, a Credit Memo (Annex 13) shall be issued by PPA/CHO upon approval of the request for refund.

5.14.   Storage fees shall be collected as follows:

5.14.1.     Storage fees for inbound cargo shall be collected upon approval of the Gate Pass/EIR and before its release from the port zone.

5.14.2.     Storage fees for outbound cargo shall be billed PPA to the Shipping Line based on the Bill of Lading and/or Final Outward Coasting Manifest within one working day after departure of the carrying vessel. Payment shall likewise be made within three working days after departure of carrying vessel.

5.14.3.     Collection of storage fees for empty containers, chargeable against the Shipping Line, shall be in accordance with existing guidelines. Payment shall be in accordance with Sections 5.14.1 and 5.14.2 hereof.

5.15.   The Shipping Line or shipper/consignee requesting for stripping or stuffing of FCL container shall secure a permit from PPA before undertaking such activity and pay the corresponding charges upon approval of the request The Request for Stripping/Stuffing is incorporated in this Circular as Annex 14.

5.16.   Container rates shall not apply to containers that are stripped or stuffed at the pier/wharf/terminal inside the port zone; instead, the regular or existing arrastre charges shall be applied against the cargo (contents).

5.17.   Stripping/Stuffing for LCL container, stand-by time, line handling and other cargo handling services shall be included in the Computation Sheet, (Annex 9) and likewise paid within three working days from date of departure of the vessel.

5.18.   Likewise incorporated in these guidelines as Annex 15 is the "Summary of Revenues Collected Per Vessel Per Voyage" which shall be prepared by the Terminal Officer and submitted within 45 calendar days after date of vessel departure to the Port Manager and PMO Finance. It shall be used by PMO North Harbor to check the accuracy of the collected port charges and cargo handling charges per vessel per voyage as covered by the particular set of pre-numbered Discharging/Loading Tally Sheets.

6.         Sanction

6.1.      Operational

6.1.1.       In case of delay or non-payment by the Shipper/Consignee's Liner Representative within the prescribed period, the privilege to avail of the Modified Cash and Carry System shall be automatically withdrawn and the cash and carry system, as provided in Section 3.1, shall be applied to the defaulting liner. Failure to comply with the requirements of the Cash and Carry System shall be a ground for PPA to order the cargo handler to deny cargo handling services.

6.1.2.       Likewise, the cash deposit posted by the Shipper/Consignee's Liner Representative as prescribed in Section 5.1.4 hereof, shall be applied to its unpaid port charges, cargo handling charges and applicable interest and penalty charges, upon default.

6.2.      Administrative

The submission of the duly accomplished Discharging/Loading Tally Sheet and the Computation Sheet shall be strictly in accordance with Section 5.7 this Circular. CHO employees who are remiss in the performance of their duties shall be subjected to or recommended for appropriate administrative sanction.

7.         Separability Clause

If, for any reason, any section or provision of this Circular is declared to be invalid, the other sections or provisions which are not affected shall continue to be in full force and effect.

8.         Repealing Clause

8.1.      This Memorandum Circular revokes the following circulars:

8.1.1.       PPA-PMO NH MC No. 54, Series of 1990 – Strict Implementation of Regulations on Payment of Port Charges Under the Guaranteed Payment Scheme

8.1.2.       PPA-PMO NH MC No. 28, Series of 1999 - Guidelines on the Restricted Extension of Credit for the Payment of Wharfage and Government Share at the Base Port of North Harbor

8.1.3.       PPA-PMO NH MC No. 02, Series of 2000 Supplemental Guideline on the Operation of Cash Revolving Deposit Required per PPA PMO-North Harbor MC No. 28-99

8.1.4.       PPA MC No. 28-2000 - Guidelines in the Collection of Stevedoring Charges and Usage Fees in PMO North Harbor

8.1.5.       PPA MC No. 33-2000 - Addendum to the Guidelines in the Collection of Stevedoring Charges and Usage Fees in PMO North Harbor

8.1.6 PPA MC No. 38-2000     Guidelines in the Implementation of the Modified Cash and Carry System in the Collection of Wharfage and Arrastre Charges in PMO North Harbor

8.2.      Likewise, all rules and regulations, orders, circulars and other issuances which are inconsistent herewith are hereby repealed, amended or modified accordingly.

9.         Effectivity

This Memorandum Circular shall take effect on September 1, 2000.

Adopted: 22 Aug. 2000

(SGD.) JUAN O. PEÑA
General Manager