Law Summary
Nature of Shut-Out Charge
- The shut-out charge is a fee imposed on a shut-out container based on the existing cargo handling tariffs at the Manila International Container Terminal (MICT) and South Harbor.
Circumstances Warranting Shut-Out Charges Beyond Failure to Load
- The same charge equivalent to a shut-out fee may be imposed when there are changes requested or instructed by shippers or shipping lines involving:
- Change of the exporting vessel intended for loading the container.
- Change of port of destination of the container.
- Change in the declared weight of the container.
Allocation of Payment Responsibility for Shut-Out Charges
- The party responsible for the shut-out charge depends on the cause of the shut-out:
- For causes attributable to the shipper (e.g., change of loading vessel after container receipt, change of port discharge, issuance of hold order), the shipper shall bear the charge.
- For causes attributable to the shipping line or its agent (e.g., vessel fully loaded or limited port time, vessel breakdown within port, hold order issued by the shipping line/agent), the charge shall be borne by the shipping line or agent.
Payment Requirements Prior to Container Loading
- Shut-out export containers shall not be loaded onto the nominated vessel unless the shut-out charge has been previously paid.
- The amount charged corresponds to the current Philippine Ports Authority (PPA) approved cargo handling tariff applicable at the MICT and South Harbor facilities.
Immediate Effectivity
- The provisions of the circular take effect immediately upon issuance on October 5, 1998.