MIAA Guidelines on IPSC Collection and Remittance

Legal basis and underlying purpose

Executive Order No. 903 establishes MIAA and directs it to formulate and adopt internationally acceptable airport standards and to promulgate rules for planning, development, maintenance, operation, and improvement of the airport.
Executive Order No. 903 authorizes MIAA to perform acts and transact business necessary, incidental, or conducive to attainment of the Authority’s purposes, including measures to remedy airport congestion.
The circular adopts integration of the International Passenger Service Charge (IPSC) at the point of sale to address urgent congestion and queuing at NAIA terminals.
The integration is designed to trim down processing time and promote smoother, seamless, convenient, safe, and hassle-free travel.

Core policy on IPSC collection

IPSC shall be collected from each departing passenger enplaning MANILA in an amount presently pegged at FIVE HUNDRED FIFTY PESOS (Php550.00).
IPSC shall be integrated by default by air carriers (or their agents) from the point of sale on cash or credit for:
- Purchase through electronic site/web.
- Purchase through agents.
- Purchase through selling air carrier.
The integration takes effect for tickets issued or reissued beginning October 1, 2014.
IPSC collected by the air carrier is regarded as monies held in trust on behalf of MIAA.
Business hours for terminal operations at the MIAA Administration Building are 8:00am to 5:00pm, Mondays to Fridays exclusive of holidays, and refund at the terminals is available on a 24-hour basis.

Definitions governing IPSC rules

Air Carrier refers to an airline operator with international operations.
Collection is the process of receiving payment of IPSC by the air carrier from the departing passenger at the ticket point of sale.
Collection Month is the calendar month beginning on the 1st up to the last day thereof.
Departing Passenger is any person carried or to be carried by the air carrier departing NAIA terminals.
Exemption Certificate includes:
- Overseas Employment Certificate (OEC) issued by the Philippine Overseas Employment Administration (POEA) certifying bearer as a legitimate Overseas Filipino Worker (OFW) for IPSC exemption.
- MIAA Exemption Certificate (MEC) issued by MIAA certifying bearer as a legitimate exempted passenger under MIAA Administrative Order No. 01 series of 2000.
Extra Crew refers to additional crew and/or operating crew listed in the flight’s General Declaration.
Infant is any child below two years old at the time of departure.
Internationally-Recognized Exempted Passenger refers to Infants, Flight and Extra Crew.
Locally-Recognized Exempted Passenger refers to Overseas Filipino Workers (OFW), Pilgrims, Philippine Sports Commission (PSC) Delegates or others authorized by law and the Office of the President.
International Passenger Service Charge (IPSC) is the terminal fee imposed by MIAA on departing passengers, presently pegged at Php 550.00 inclusive of 12% EVAT.
Itinerary Receipt/Passenger Ticket is a paper or electronic document holding required information in relation to the contract of carriage that allows passage for air transportation.
Remittance is the payment by the air carrier to MIAA of IPSC collection received on behalf of MIAA.
Remittance Period is on or before the end of the following month after the collection month.
Remittance Report is a form containing all necessary information for accounting IPSC collections and remittance by the air carrier.
Transit Passenger is a passenger who arrives on an aircraft from any international terminal and is not required to check-in for boarding to the intended destination.

Mandatory integration and passenger exemptions

Air carriers must include and ensure payment of IPSC in all passenger tickets issued to departing passengers showing enplanement from Manila, including non-revenue tickets.
Internationally-Recognized Exempted Passengers are not subject to payment of IPSC.
Locally-Recognized Exempted Passengers are not subject to IPSC only if:
- The passenger ticket is issued/reissued in the PHILIPPINES, and
- The exemption certificate is presented and surrendered to the air carrier or its agents upon ticket issuance.
Exemption Certificate requirements apply through the ticket issuance stage for locally-recognized exempted passengers.
No IPSC is charged to the exempted passenger categories covered by the defined exemption certificates and recognized exempted passenger categories.

Transition rules for tickets issued before October 1, 2014

During a one (1) year period from October 1, 2014, MIAA shall collect IPSC at designated collection counters from departing passengers who have already been issued/reissued passenger tickets prior to October 1, 2014.
At check-in, the air carrier must examine whether the passenger ticket contains information about IPSC payment.
Passengers are encouraged to bring a hard copy of the Itinerary Receipt during the transition period.
During transition check-in, if the ticket was issued/reissued before October 1, 2014, the air carrier representative must stamp in red ink a “PROCEED TO TERMINAL FEE COUNTER” marking on the portion of the boarding pass retained by MIAA.
Departing passengers whose boarding passes do not have the specified red stamp proceed to the immigration counters.

How IPSC is paid, inspected, certified during transition

The transition process requires:
- The departing passenger proceeds to the check-in counter for processing.
- The air carrier representative checks the issue/reissue date of the ticket.
- Passengers proceed to the terminal fee counter for payment of IPSC if the ticket was issued/reissued prior to October 1, 2014.
At payment, MIAA tellers must:
- Examine the boarding pass to verify whether it has the required red marking.
- Collect IPSC payment from departing passengers who have not paid IPSC.
- Attach the IPSC ticket (inspector’s and passenger’s copies) to the boarding pass.
For inspection, MIAA inspectors must:
- Ensure that boarding passes with the red mark have IPSC receipts attached.
- Advise payment if receipts are not attached.
After each flight, the air carrier representative surrenders boarding passes together with the inspector’s copy of the IPSC receipt to MIAA inspector for counting in the presence of the air carrier representative.
The air carrier representative certifies the total passenger load for each flight, while MIAA certifies correctness of the IPSC flight checklist (Annex B) containing:
- Air Carrier; Flight Number; Departure Date.
- Passengers with tickets issued on or after October 1, 2014.
- Passengers with tickets issued before October 1, 2014.
- Exemptions; Total Passenger Load.

Transition reporting, remittance, and service fee basis

During the transition period, all remittances must be accompanied by duly certified reports:
- Remittance Report (Annex C).
- Details of Remittance (Annex D).
- Summary of Locally-Recognized Exempted Passengers (Annex E).
Service Fee is based on total amount collected by the air carrier from flown passengers.
Even before the end of the transition period or before October 1, 2015, an air carrier may issue a certification that all tickets issued prior to October 1, 2014 have been used/flown.
Once the certification is issued, the air carrier’s service fee is based on passenger load excluding internationally-recognized exempted passengers, starting on the month succeeding issuance of the certification.

Remittance duties, timelines, and settlement

The air carrier is responsible for all IPSC collected from the time of Collection up to Remittance to MIAA.
All IPSC collection monies must be remitted to MIAA net of service fee.
Remittance is due on or before the end of the succeeding month for the collections of the month.
Remittance not made within the prescribed period is subject to a penalty surcharge of eighteen percent (18%) per annum.
If the air carrier declares an amount to be remitted less than the amount due, a penalty of twenty five percent (25%) per annum applies to the difference.
The 25% per annum penalty does not apply if, within six (6) months from the date of remittance, the air carrier reconciles its remittance report and remits the differential amount with the air carrier’s reconciliation audit report.
Remittances must be made in Philippine peso payable to MIAA regardless of the currency collected from the departing passenger.
Remittance may be made through:
- Bank Credit, depositing/transferring to Landbank of the Philippines Current Account No. 0272-1065-33; or
- Direct Payment, via cash or check payments received by MIAA’s Collection Division for a specified remittance period, with checks issued in the name of Manila International Airport Authority.
MIAA issues an Official Receipt (OR) to the air carrier upon presentation of proof of remittance, including a bank-validated deposit slip/payment slip with the remittance report.
If a bank-validated remittance/deposit form is not feasible, a notification to MIAA of deposit or fund transfer is acceptable.

Reportorial requirements and accountability

For each remittance period, the air carrier must submit to MIAA duly certified documents:
- Remittance Report (Annex F) covering monthly IPSC collections and stating:
  - Name of the Air Carrier.
  - Period covered.
  - Total passenger load (Annex G).
  - Infant and Extra Crew.
  - Passenger load subject to 3.5% service fee.
  - Locally-Recognized Exempted Passengers (Annex E).
  - Total number of paying passenger.
  - Total amount collected.
  - Net amount due.
- A bank-validated deposit slip or remittance form.
The air carrier’s authorized representative warrants the correctness of information submitted to MIAA.
The total number of departing passengers based on the remittance report is the basis of the air carrier’s IPSC remittance to MIAA.
The air carrier may request submission of copies of exemption certificates upon check-in of an exempted passenger to facilitate accomplishment of the Summary of Locally-Recognized Exempted Passengers (Annex E).
Any discrepancy, undocumented exemption, and/or exemption allowed in violation of approved parameters is charged to the air carrier.

Refund process and who handles it

MIAA processes refunds to passengers exempted from IPSC payment under the exemption categories and conditions defined for locally and internationally recognized exempted passengers.
Exempted passengers who paid IPSC on tickets issued/reissued on or after October 1, 2014 must claim refunds at:
- Refund counters located after immigration counters on the departure date, or
- The MIAA Administration Building.
Terminals refund claim requirements on departure date require:
- Submission of copies of Passenger Ticket/Itinerary Receipt/Official Receipt/Invoice showing payment for terminal fee with the code “LI (international)”.
- Surrender of the original copy of the exemption certificate (airport copy).
- Presentation of boarding pass.
MIAA Administration Building claim requirements after the departure date require:
- Refunds must be accompanied by IPSC Refund Declaration (Annex H).
- Submission of copies of Passenger Ticket/Itinerary Receipt/Official Receipt/Invoice showing payment for terminal fee with code “LI (international)”.
- Submission of the original copy of the exemption certificate (airport copy).
- Presentation of the original boarding pass and submission of a photocopy; if the original boarding pass is not available, presentation of either:
  - A passport showing identity and date of departure, or
  - A certificate from the air carrier of the departure date of the passenger/s.
- The claimant’s valid government-issued ID with photograph.
If refunds are claimed through a representative, the claim must include:
- The documents enumerated for after-departure claims, and
- The representative’s valid government-issued ID with photograph.
If refunds are authorized by a group through a representative, the claim must include:
- The documents enumerated for after-departure claims, and
- The representative’s valid government-issued ID with photograph.
For unused tickets, the air carrier is responsible for processing refunds and makes payment directly to the passenger concerned.
The air carrier must ensure refund processing is acted upon promptly.
The air carrier is also responsible for refund and payment of IPSC to exempted passengers who were erroneously assessed and charged.

Service fee, audit rights, and record retention

The collecting air carrier is entitled to a 3.5% service fee based on passenger load excluding internationally-recognized exempted passengers.
The service fee is deducted from the total proceeds due to MIAA, subject to government accounting and auditing rules, and must be clearly included in the report submitted to MIAA.
MIAA may conduct random inspection and audit of any accounting records, books, equipment, or recording devices used in IPSC collection upon prior written notice and during business hours.
The air carrier must maintain and preserve documents supporting collection and remittance in electronic format or otherwise for three (3) years at the air carrier’s office.
The air carrier must make available other documents and data necessary to confirm collection and remittance upon request by MIAA’s authorized representative, including:
- Flight Manifest.
- Duly signed General Declaration.
- Copies of OECs and MECs.
Existing MIAA operational forms, procedures, and processes documenting flight departures and attendant statistics remain enforced and may be used to validate/audit IPSC remittances.
The air carrier must provide MIAA and COA with the name, address, and telephone number of officers handling consolidation, settlement, remittance, and reporting for IPSC.
MIAA and COA must provide the air carrier the name and designation of officers and employees authorized to access air carrier records for audit purposes.

Dispute resolution timeline

If a discrepancy exists regarding IPSC collection, remittance, or reporting, the parties must notify each other in writing within five (5) business days from discovery.
The parties must reconcile discrepancies in good faith within ten (10) business days from receipt of the other party’s notice.
The reconciliation period may be extended upon mutual agreement by the parties.

Separation, cessation, modification, superseding, effectivity

The provisions are treated as separable; invalidity of any portion does not affect the remaining provisions’ full force and effect.
If an air carrier ceases operations at MIAA terminals, it must notify MIAA in writing at least sixty (60) calendar days prior to cessation.
The circular may be modified at the instance of any affected party after sufficient consultations.
All MIAA issuances in conflict are superseded.
The circular’s effectivity is October 1, 2014.