QuestionsQuestions (PPA Memorandum Circular No. 03-2010)
The legal authority cited is Section 6.a)(iii) of Presidential Decree (P.D.) No. 857.
PPA generally collects fees and charges on a cash and carry basis. The RF is maintained to avoid risks in handling large cash, to respond to port users who prefer centralized payment, to facilitate cargo and vessel clearance, and to help avoid late charges and/or penalties.
All port users may avail of the RF facility for payment of their invoices/billings for cargo and/or vessel charges.
A port user may avail of only one type of RF facility—either centralized or decentralized.
A port user with centralized RF is assigned only one Debtor Code and maintains only one RF PPA-wide.
A port user with decentralized RF is assigned a Debtor Code for each area of operation or Servicing PMO and must maintain separate RF accounts per Servicing PMO.
RF customers must maintain a minimum cash deposit equivalent to their average 15-day transaction volume. Their RF account is replenished every week to keep transactions covered by the deposit balance.
An RF invoice shall not be created. The RF Customer will be automatically treated as a cash basis customer, requiring the transactions to be paid in cash until the account is replenished and the minimum required RF balance is restored.
Each Servicing PMO shall create, generate, and transmit the RF invoices to its RF customer.
They must be handled separately from other NCP transactions using the RF template. The RF template should be e-mailed within two days to the PMO for uploading into the FIRST OU Accounting Module, following the “Procedures on Loading of NCP Invoice Template.”
Because loading/unloading of oil is done in private port oil refinery/depot arrangements and the measurement of oil loaded/unloaded requires special handling by an Independent Surveyor.
A Wharfage Clearance Certificate (WCC) must be accomplished and signed by the Oil Company.
The Port of Loading countersigns the WCC and ensures that the computation of wharfage dues complies with the proper rate category (50% for registered company-owned oil refinery/depot or 100% for unregistered/private port and third-party cargoes).
The WCC is prepared in five (5) copies distributed to: (1) Oil Company, (2) Port of Unloading–Finance, (3) Port of Unloading–Operations, (4) Port of Loading–Finance, and (5) Port of Loading–Operations. If there are multiple unloading ports, the “Port of Unloading” copy is reproduced per port.
The WCC serves as the authority for the PMO to grant clearance to the vessel after loading/unloading the oil cargo.
The final actual volume loaded/unloaded is determined by an Independent Surveyor. HO-Treasury secures the Surveyor’s Report and the Summary of Stockpoints Actual Receipt in metric ton from the Oil Companies.
A post-billing is issued by creating an RF invoice equivalent to the balance (the difference).
A Credit Memo (CM) is created to credit back the RF with the excess amount (resulting in a negative entry in the BIR Relief Summary List of Sales).
The Servicing PMO must ensure that the BIR Form 2307 corresponding to the Expanded Withholding Tax is secured from the RF customer.