Law Summary

1. Authority

• Legal Basis: The memorandum is issued under Section 6(a)(iii) of Presidential Decree No. 857.

2. Rationale

• Context: This section outlines the need for centralized collection due to the locations of oil company refineries and their depots.
  • Refinery Locations:
    • Petron Corp.: Bataan Refinery (PTO Limay Bataan)
    • Caltex Phils., Inc.: San Pascual Refinery (PMO Batangas)
    • Pilipinas Shell Petroleum Corp.: Tabangao Refinery (PMO Batangas)
  • Issue: Many depots are situated far from PMO baseports, necessitating a centralized collection approach to maximize revenue.

3. Mechanics

• Cash Deposit Requirements:

  • Options for Cash Deposit:
    • Option 1: Average monthly wharfage dues based on the last three months (payment by the 25th).
    • Option 2: Average 15-day wharfage dues based on the last 12 months (payments by the 10th and 25th).
  • Monitoring: Port Managers are responsible for ensuring adequate cash deposit levels.

• Wharfage Clearance Certificate (WCC):

  • Required for each oil shipment, detailing loading and unloading dues.
  • Volume Calculation:
    • Loading dues based on cargo manifest volume.
    • Unloading dues calculated at 99.5% of loaded volume to account for losses.

• WCC Distribution:

  • Five copies are prepared for different stakeholders, ensuring proper documentation and accountability.

• Monthly Reporting:

  • Operations Section must submit a Monthly Summary of WCCs issued within three days post cut-off.

• Discrepancies and Reconciliation:

  • Volume discrepancies between reported and actual unloaded volumes must be reconciled monthly by the Treasury Department.
  • Underpayments will be collected from the concerned oil company.

• Revenue Treatment:

  • Collection of wharfage dues is credited to respective ports based on established guidelines.

4. Repealing Clause

• Revocation: This circular revokes PPA Memorandum Circular No. 13-85.

5. Effectivity

• Immediate Implementation: This memorandum is effective immediately upon adoption on October 20, 1999.

Key Takeaways

• The memorandum establishes a centralized system for collecting domestic wharfage dues from major oil companies, aimed at improving revenue capture.
• Clear cash deposit options and monitoring responsibilities are outlined for effective financial management.
• The WCC serves as a crucial document for tracking shipments and ensuring accurate billing.
• Monthly reconciliations are mandated to resolve discrepancies in reported volumes, with penalties for underpayments.
• This circular supersedes previous guidelines, reflecting updated practices in the collection of wharfage dues.