Law Summary
Definitions of Key Terms
- Extensive definitions covering various entities and terms such as:
- Authority: Philippine Ports Authority
- Authorized Shipyard/Repair Operator: Accredited shipyards/repair facilities
- Container: Unitized cargo container of at least 1 cubic meter capacity
- Various cargo classifications: containerized, domestic, export, import, foreign transshipment, general breakbulk, third party cargoes
- Vessel statuses: decommissioned, lay-up, vessels in distress, vessels for drydocking, and vessels for scrapping
- Charges and fees: dockage at berth/anchorage, port dues, usage fee, lay-up fee, storage charge, wharfage
- Other important terms: gross registered tonnage (GRT), revenue tonnage, free storage period, minimum charge, private port
Port Dues
- Payable by vessels entering the port for loading/discharging cargo or passengers, bunkering, repairs, or crew changes.
- Single charge for multiple calls within the same harbor, payable at first port of call.
Dockage Fees
- Dockage at berth applies to cargo vessels loading/unloading and non-cargo vessels for incidental purposes.
- Dockage at anchorage charged at half the berth rate, capped at 50,000 GRT.
- Payment liability rests with vessel owner, agent, operator, or master.
- Special rules apply when a vessel is diverted, or changes trade status (foreign to coastwise, vice versa).
- Day fractions count as whole days in fee assessment.
- No dockage fee at anchorage while waiting due to strikes, calamities, or congestion if no cargo operations occur.
- Vessels over 50,000 GRT charged dockage equivalent to 50,000 GRT.
Usage Fee
- Charged against vessels engaged in domestic trade for loading/unloading cargo or passengers, bunkering, repairs, crew changes, and non-commercial watercraft.
- Half rates apply for vessels at registered private ports and bay and river trade vessels.
- Fractional days counted as whole days.
- Usage fee assessed only from time vessel is moored or anchored to time it leaves.
Lay-up Fee
- Charged to domestic vessels temporarily authorized to lay up and anchor in designated lay-up areas.
- Rate is half the usage fee, starting from lay-up approval date.
- Application requires decommission certificate from MARINA and affidavits ensuring no onboard repairs or dwelling.
Penalties for Idling and Unrelenting Berth Occupancy
- Idle foreign vessels ignoring shifting orders charged 300% of applicable dockage at berth.
- Idle domestic vessels charged 500% of the usage fee.
- If vessel is subject of court orders but remains at berth against shifting orders, foreign vessels charged 600% dockage, domestic 1000% usage fee.
- Payment required before vessel departure.
Wharfage Fee
- Charged on all cargo loaded/unloaded at government or private ports.
- 100% rates for government wharves; 50% rates for anchorage or midstream; 50% rates for private ports.
- FCL containers charged by container; LCL containers charged as non-container cargoes.
- Empty containers not charged unless owned or manifested as cargo.
- Foreign transshipment cargo charged wharfage only upon port entry, not on exit, with specified exemptions for crude oil and fertilizer with special rates.
- Import cargo pays foreign wharfage at entry port and domestic wharfage during coastwise movement; reverse for exports.
- Claims for exemption require certified supporting documents.
- BOI-registered exporters exempt from export wharfage for registered main products, but not for by-products.
Refund of Port Charges
- Refunds allowed only upon formal written request within three months of payment.
- Double payments/overpayment must be verified prior to refund.
- Advance deposits are not considered payment.
Storage Fees
- Charged on cargo stored beyond free storage periods at government port premises, sheds, warehouses.
- Free storage periods vary:
- 6 calendar days for imported cargo, from last discharge
- 5 calendar days for export cargo, from receipt
- 15 days for foreign transshipment cargo
- 2 calendar days for inbound/outbound domestic cargo, with extensions for rice and corn
- Shutout cargo storage fees charged to responsible party.
- Storage fee for containers applies per box for full containers; LCL containers charged as non-container cargo.
- PPA Board may adjust free storage and storage fees for congested ports.
Exemptions from Port Charges
- Armed Forces and government training vessels exempt from usage fees.
- Foreign naval, diplomatic, academic vessels exempt if reciprocal.
- Vessels in distress or for humanitarian reasons exempt from all vessel charges.
- Vessels for drydocking or repair at accredited facilities exempt from dockage/usage fees.
- Vessels certified for shipbreaking exempt from all vessel charges; scraps exempt from wharfage.
- Vessels stopped from discharging/loading to avoid congestion exempt from dockage or usage during suspension.
- Donated goods by authorized organizations exempt from wharfage and storage provided timely release.
- Empty containers for export use exempt from wharfage.
- Mailbags exempt from wharfage; merchandise sent by mail subject to wharfage.
Repealing Clause
- Supersedes prior PPA Memorandum Orders and inconsistent issuances.
Separability Clause
- Invalid provisions shall not affect validity of remaining provisions.
Effectivity
- Publication requirement: twice in a newspaper for two consecutive weeks.
- Circular takes effect 15 days after second publication.