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(NAR) VOL. 20 NO.1 / JANUARY – MARCH 2009

[ PPA MEMORANDUM CIRCULAR NO. 01-2009, January 12, 2009 ]

50% - 50% SHARING SCHEME ON THE ARRASTRE FEES IN INSTANCES WHERE THE CARGO HANDLING OPERATORS (CHO) UTILIZES EQUIPMENT OF THE SHIPPING LINES IN RENDERING SERVICE TO VESSELS AND CARGO OWNERS



Pursuant to the agreement among the Association of North Harbor Cargo Handling Operators (ANCHOR) and Philippine Ports Authority (PPA) with the Philippine Chamber of Arrastre and Stevedoring Operators (PCASO) and as concurred to by the Philippine Liner Association (PLSA), the following guidelines are hereby prescribed:

1. As an amended rule, the sharing on arrastre fees for container handling where the CHO utilizes equipment of the shipping lines in rendering services to vessels and cargo owners shall be 50%-50%.

2. In such situation, the amount that goes to shipping as a reduction and to the Contractor as its income from cargo handling services rendered shall be based on the prescribed rates, net of the 10% government share, or based on the 90% of the applicable rates.

3. Henceforth, the allowed reduction in arrastre rates to shipping shall be 50% of the 90% rates, or 45%. Consequently, 50% of the 90% rates, or 45% shall go to the Contractor.

4. Where the contractor collects directly the 100% container arrastre rates from shippers/consignees, it shall remit to shipping lines 45% as rebate.

5. In cases where shipping company collects the 100% from shippers/consignees, the Contractor shall bill the shipping company 45% of the former’s share plus the 10% for PPA’s share, or a total of 55%.

6. In both instances, therefore, the Contractor shall remit to PPA its 10% government share based on 100% container arrastre rates.

All PPA orders, memoranda or circulars inconsistent herewith are hereby repealed or amended accordingly.

The Circular shall take effect February 1, 2009.

Adopted: 12 Jan. 2009

 

(SGD.) ATTY. OSCAR M. SEVILLA
General Manager

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