Legal basis and revocation of prior issuances
- Presidential Decree No. 857 provides the authority for Section 6.a) (iii).
- The circular revokes PPA Memorandum Circular No. 45-99.
- The circular repeals all orders, circulars, rules, and regulations, and other issuances inconsistent herewith.
Policy rationale for revolving fund
- PPA generally collects fees and charges on a “Cash and Carry Basis.”
- The revolving fund facility exists as an exception to support port users by:
- Avoiding risks in carrying/handling substantial cash.
- Responding to port client requests for centralized payment for all shipments/transactions PPA-wide.
- Facilitating cargo and vessel clearance.
- Avoiding incurrence of late charges and/or penalties.
Who may use revolving fund facility
- The revolving fund (RF) facility is open to all port users for payment of their invoices/billings for cargo and/or vessel charges.
- A port user may avail of only one RF facility type, which is either Centralized RF Facility or Decentralized RF Facility.
Centralized vs decentralized RF assignment
- Under Centralized RF Facility, the port user is assigned only one Debtor Code and must maintain only one RF PPA-wide.
- Under Decentralized RF Facility, the port user is assigned a Debtor Code for each area of operation or Servicing PMO.
- Under Decentralized RF Facility, the port user must maintain separate RF per Servicing PMO.
Minimum RF deposit and cash fallback rule
- RF customers must maintain with PPA (or the servicing PMO, as applicable) a minimum cash deposit equivalent to its average 15-day transaction volume.
- The RF account must be replenished every week to keep transactions covered by the RF deposit balance.
- An RF Invoice shall not be created in the System if the RF balance is insufficient.
- If RF balance is insufficient, the RF customer is automatically treated as a Cash Basis Customer and must have transactions paid in cash until replenishment restores the minimum required RF balance.
Registration and onboarding mechanics
- A port user availing of the RF facility must accomplish a Customer Registration Form (CRF) for an RF Customer.
- The CRF requires the port user to indicate its choice of either Centralized RF Facility or Decentralized RF Facility.
- The CRF also requires the port user to indicate the minimum maintaining amount of RF.
- The CRF must be submitted to any Operating Unit (OU): HO/PDO/PMO OU.
RF Administrator setup and debtor code transmission
- The concerned OU/Servicing Unit (PDO/PMO) must forward the duly accomplished CRF by fax to the RF Administrator, HO-Treasury for setup of the RF facility.
- The approved CRF showing the RF customer’s Debtor Code must be sent by fax by HO-Treasury to the Servicing PMO.
Initial RF deposit requirements
- For Centralized RF Facility, after CRF approval, the port user deposits the minimum maintaining balance of RF at HO-Treasury or any Servicing PMO for credit to its centralized RF account.
- For Decentralized RF Facility, after CRF approval, the port user must make the deposit to all its RF accounts in each and every enrolled area of operation or Servicing PMOs.
RF invoice creation, NCP handling, and charging
- Each Servicing PMO must create, generate, and transmit RF invoices to its RF customer.
- RF invoices at an NCP port must be handled separately from other NCP transactions using the template.
- The RF Template must be e-mailed within two days to the PMO for uploading into the FIRST OU Accounting Module to keep the RF account at its current balance.
- The charging rule applies as follows: upon creation of the RF invoice, application/charging against the RF is done subsequently.
- The servicing PMO must ensure the BIR Form 2307 corresponding to the Expanded Withholding Tax is secured from the RF customer.
- The OU may view RF balances in the RF Summary by Debtor or Listing of RF Transactions by OU and RF customer.
RF replenishment, balance verification, and summaries
- RF customers must deposit or replenish the RF at least every week to cover transactions.
- Replenishment must be done by batch of invoices for easier monitoring and reconciliation.
- Servicing PMO (for decentralized customers) and HO-Treasury (for centralized customers) must periodically verify RF balances to ensure compliance with the minimum maintaining balance.
- RF Summary by Debtor/Listing of RF Transactions (invoices applied, deposits made, balances) must be generated periodically.
- Transmittal/e-mailing of the RF Summary by Debtor to RF customers must be done on the 15th and end-of-month or as agreed upon with the RF customer, using the following mapping:
- OU → RF customer (Centralized RF facility)
- Servicing PMO → RF customer (Decentralized RF facility)
- HO-Treasury → RF customer (Centralized RF facility)
Reconciliation responsibilities
- The system must generate an RF Summary by RF customer or a Listing of RF Transactions by OU and RF customer.
- Centralized RF customers may undertake reconciliation with HO-Treasury.
- For decentralized RF customers, reconciliation must be done with the Servicing PMO.
Domestic oil shipments covered by RF
- Domestic oil shipments loaded from private port Oil Refineries and unloaded to private port Oil Depots nationwide are handled under special RF mechanics.
- A Wharfage Clearance Certificate (WCC) is accomplished and signed by the Oil Company.
- The Port of Loading must countersign the WCC and ensure wharfage dues computation follows:
- 50% rate category for registered company-owned oil refinery/depot, or
- 100% for unregistered private port and third party cargoes.
- The official WCC format uses the specified form and the WCC must be numbered by the Port of Loading.
WCC copy distribution and vessel clearance effect
- The WCC must be prepared in five (5) copies and distributed as follows:
- Original — Copy for Oil Company
- Duplicate — Copy for Port of Unloading-Finance
- Triplicate — Copy for Port of Unloading-Operations
- Quadruplicate — Copy for Port of Loading-Finance
- Quintuplicate — Copy for Port of Loading-Operations
- If there are two or more Ports of Unloading, the “Copy for Port of Unloading” must be reproduced correspondingly, and reproduced copies must be accomplished and signed.
- For cargoes destined to different ports of unloading, the Port of Loading must indicate separately the volume to be unloaded to each PMO/PTO by reflecting the exact location of the oil depot.
- The WCC serves as the authority for the PMO to grant clearance to the vessel after loading/unloading the oil cargo.
- Two copies of the WCC must be retained by the Port of Loading—one for Operations Section and one for Finance Section.
- The Copy for Port of Unloading must be presented by the Oil Company’s authorized representative to the Port/s of Unloading.
- The Port/s of Unloading must review and correct, if necessary, the estimated wharfage dues indicated in the WCC.
- The copy retained by the Port of Unloading supports granting of vessel clearance and must be forwarded to the Operations Section and Finance Section for creation of the RF invoice.
Domestic oil RF invoicing and post-billing adjustments
- RF invoices for oil shipments are created based on estimated wharfage dues in the WCC and must use the Non-Computerized Port (NCP) Template.
- The NCP template must be e-mailed within two days to the PMO and uploaded into the FIRST OU Accounting Module following the procedures on loading of the NCP invoice template.
- The Port of Loading and Port/s of Unloading must create and apply the RF invoices for their respective revenue initially based on estimated wharfage dues.
- Upon creation of RF invoice and issuance of billing:
- Application/charging against RF is done by Ports of Loading/Unloading after the RF invoice is created.
- Upon receipt of the actual volume loaded/unloaded, book entries are adjusted accordingly.
- The final actual volume is determined by an Independent Surveyor.
- HO-Treasury must secure the surveyor’s report and the Summary of Stockpoints Actual Receipt in Metric Ton from the Oil Companies.
- HO-Treasury must prepare a Schedule of Wharfage Dues on Actual Shipments per oil company, per vessel, per voyage and send it by e-mail to the Ports of Loading and Ports of Unloading.
Credit memo and RF charge correction logic
- After receipt of HO-Treasury’s e-mail, the Port of Loading and Port/s of Unloading must create respective RF invoices or Credit Memo as follows:
- If actual wharfage dues are higher than estimated wharfage dues, issue a post billing by creating an RF invoice equivalent to the balance.
- If estimated wharfage dues invoiced originally are higher than actual wharfage dues, create a Credit Memo (CM) showing a negative entry in the BIR RELIEF Summary List of Sales.
- After creation:
- Post-billing RF invoices are applied/charged against RF.
- Credit Memo credits back the RF with the excess amount.
- The RF invoices and Credit Memo, if any, must be printed and transmitted by the Port of Loading and Port/s of Unloading to the RF customer (Oil Companies).
Domestic oil tax document and RF processes
- The servicing PMO must ensure the BIR Form 2307 corresponding to the Expanded Withholding Tax is secured from the RF customer.
- Deposit/replenishment of the RF and reconciliation of RF balances for domestic oil shipments follow the same RF rules on deposit/replenishment and reconciliation under the revolving fund guideline sections.
Registered oil depot listing for wharfage rate computation
- Updates of the listing of private port oil facility of oil companies duly registered must be provided by Head Office-Commercial Service Department (CSD) to the Treasury Department.
- CSD must furnish the Port District Offices/Port Management Offices (PDOs/PMOs) photocopies of the approved Certificates of Registration/Permits to Operate (COR/PTO), including those issued to oil companies.
- The COR/PTO serves as guidance for PDOs/PMOs in computing the applicable wharfage due rate for a registered company-owned oil depot.