Title
Clarification of shut-out charges at ports
Law
Ppa Memorandum Circular No. 43-98
Decision Date
Oct 5, 1998
The PPA Memorandum Circular No. 43-98 establishes guidelines for shut-out charges on export and transshipment containers at MICT and South Harbor, detailing the responsibilities of shippers and shipping lines regarding fees incurred due to changes in vessel, destination, or container weight.

Q&A (PPA MEMORANDUM CIRCULAR NO. 43-98)

A shut-out container refers to an export or transshipment container, whether full or empty, that fails to get loaded onto a nominated exporting vessel.

A shut-out charge is a fee imposed on a shut-out container under the existing tariff at Manila International Container Terminal (MICT) and South Harbor.

Such a charge may be imposed if shippers or shipping lines request or give instructions for a change of status, including change of exporting vessel, change of port of destination, or change in the weight of the container as previously declared.

The shipper is responsible if the shut-out is due to the shipper's instruction or fault, such as changes in loading vessel, port of discharge, or issuance of hold order by the shipper.

The shipping line or agent is responsible if the shut-out results from their instruction or fault, for example, when the vessel is full, lack of port time, vessel breakdown while in port, or hold orders issued by the shipping line or agent.

No, the shut-out export container shall not be loaded onto the nominated vessel without prior payment of the shut-out charge.

The amount is based on the prevailing Philippine Ports Authority (PPA) approved cargo handling tariff of MICT and South Harbor.

Examples include changes to the exporting vessel, changes to the port of destination, and changes in the declared weight of the container.

The circular took effect immediately upon adoption on October 5, 1998.


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