Title
Centralized Collection of Oil Wharfage Dues
Law
Ppa Memorandum Circular No. 045-99
Decision Date
Oct 20, 1999
The PPA Memorandum Circular No. 045-99 establishes revised guidelines for the centralized collection system of domestic wharfage dues from Petron Corp., Caltex Phils., and Pilipinas Shell, ensuring accurate revenue capture through a structured cash deposit and Wharfage Clearance Certificate process at designated loading and unloading ports.
contract
wharfage dues
administrative law

Legal authority and basis

  • Section 6(a) (iii) of Presidential Decree No. 857 is cited as the authority.
  • PPA Memorandum Order No. 10-91 is referenced for the Inter-Office Billing and Collection System governing the unloading dues crediting/processing.

Policy rationale and purpose

  • The centralized collection system at the loading ports for both loading and unloading domestic wharfage dues is continued to capture the complete revenue collectible from the covered oil companies.
  • The system is justified because the refineries of the oil companies where loading activities are done are located at specific PMO/PTO locations, while many unloading depots are in far-flung areas away from a PMO baseport or terminal office.

Coverage and covered entities

  • The centralized collection system applies to domestic wharfage dues collectible from Petron Corp., Caltex Phils., Inc., and Pilipinas Shell Petroleum Corp.
  • The loading ports for the system maintain centralized cash deposits at the following PMO locations:
    • PMO North Harbor for the loading port of Limay Bataan.
    • PMO Batangas for the loading ports in San Pascual Batangas and Tabangao Batangas.
  • The loading ports are tied to these 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 (baseport)

Core centralized cash deposit system

  • The oil companies must maintain a cash deposit in the ports of loading under one of two options.
  • Option 1: The cash deposit equals the oil company’s average monthly loading and unloading domestic wharfage dues, computed as:
    • (last three months shipments) ÷ 3.
  • Under Option 1, replenishment/payment of billings must be made not later than every 25th day of the month.
  • Option 2: The cash deposit equals the oil company’s average 15-day loading and unloading domestic wharfage dues, computed as:
    • (last 1A12 months shipments) ÷ 3.
  • Under Option 2, replenishment/payment of billings must be made not later than every 10th and 25th day of the month.

Wharfage clearance certificate (WCC) rules

  • Each oil shipment must be covered by a Wharfage Clearance Certificate (WCC).
  • The WCC must be pre-numbered and prepared properly and legibly in five (5) copies.
  • The five WCC copies must be distributed as follows:
    • Original — Copy for Oil Company
    • Duplicate — Copy for Port of Unloading
    • Triplicate — Copy for PMO Finance Section
    • Quadruplicate — Copy for PMO Operations Section
    • Quintuplicate — Copy for Shipping Agent
  • If there are two or more ports of unloading, the “Copy for Port of Unloading” must be reproduced/xeroxed correspondingly, and the reproduced copies must be signed as specified.
  • The official format of the WCC is established using the text/format available at the Office of the National Administrative register (ONAR), U.P. Law Center, Diliman, Quezon City.

Bases for charging loading and unloading dues

  • Loading wharfage dues must be based on the volume loaded as indicated in the cargo manifest.
  • Unloading wharfage dues must be based on 99.5% of the volume loaded.
  • The remaining 0.5% is treated as providing for loss due to evaporation, spillage and other factors, using industry standard.

WCC execution, signatories, and retention

  • The WCC must be signed by the Terminal Supervisor or Terminal Operations Officer in the ports of loading.
  • The WCC must be countersigned by the authorized representative of the oil company concerned.
  • Two copies of the WCC must be retained by the port of loading:
    • one copy for the Operations Section
    • one copy for the Finance Section
  • The Copy for Port of Unloading must be presented by the authorized representative of the oil company to the port/s of unloading.
  • The Copy for Port of Unloading serves as the authority for the port of unloading to clear the vessel after unloading.
  • The copy must be retained by the port of unloading to support vessel clearance and then forwarded to the Finance Section for proper recording and accounting.

Handling multiple unloading ports and depot location listing

  • For cargoes intended/destined to different ports of unloading, the port of loading must indicate the volume to be unloaded separately to each PMO/PTO reflecting the exact location of the oil depot.
  • An updated listing of the location of the oil depots and the applicable wharfage dues rates must be provided by the Head Office Commercial Services Department for guidance of the loading and unloading ports.

Recording, reporting, and reconciliation procedures

  • The Port Manager of the loading port is responsible for regularly monitoring the cash deposit and ensuring it is sufficiently maintained under the cash deposit computation rules.
  • The Operations Section—Port of Loading must submit a Monthly Summary of WCC issued to the Finance Section—Port of Loading not later than three days after the 25th day cut-off date.
  • The Port of Loading must:
    • charge against the deposit, or bill, the domestic wharfage dues on the oil shipments, based on the amount declared in the WCC, duly reconciled with the Surveyor’s Report submitted by the oil company.
  • The port of unloading must record the domestic wharfage dues unloading credited to it as Inter-PMO Receivable based on the amount declared in the WCC.
  • A Monthly Schedule of Inter-PMO Receivable must be submitted by the port of unloading to H.O.-Treasury Department not later than the 10th day of the following month.

Volume discrepancies and treasury billing

  • When a volume discrepancy arises between the “Volume to be Unloaded” per WCC and the volume actually unloaded, the reconciliation must be done by Head Office-Treasury Department as follows.
  • The actual volume unloaded per vessel per port must be reflected in the Monthly Summary of Stockpoints Receipts, based on the independent Surveyors Report submitted by the oil companies to Treasury Department, and must be used by Treasury Department to determine the correct volume per vessel per port of unloading.
  • The reconciliation must be done monthly by:
    • Treasury Department matching with the Monthly Report of Undistributed Collections submitted by the loading ports
    • and matching with the Schedule of Inter-PMO Receivables submitted by the ports of unloading.
  • Any under-payment on wharfage dues for unloading must be billed and collected by Treasury Department from the oil company concerned.
  • The reconciled figures must be used as the basis for crediting the unloading port concerned.
  • The Inter-Office Credit Memo (IOCM) issued by Treasury Department must be used by the unloading port to adjust, if necessary, its previous entry on the Inter-PMO Receivable Account.
  • The Inter-PMO Receivable recorded in the books of the port/s of unloading must be closed to CO/PMO Clearing Account Current Deposit (8-70-770) upon receipt of:
    • the Monthly Statement of Account Reconciliation, and
    • the IOCM from Head Office-Controllership Department.

Treatment, distribution, and due dates for reports

  • The total domestic wharfage dues collected at the ports of loading must be treated through separate handling for loading and unloading dues.

  • Domestic Wharfage Dues—Loading

    • The domestic wharfage dues-loading collected monthly under Option 1 and semi-monthly under Option 2 must be credited to the loading port.

  • Domestic Wharfage Dues—Unloading

    • The domestic wharfage dues-unloading collected monthly under Option 1 and semi-monthly under Option 2 that are creditable to the port/s of unloading must be recorded as Undistributed Collection of the port of loading.
    • The Undistributed Collection must be credited to the unloading port/s under the Inter-Office Billing and Collection System provided in PPA Memorandum Order No. 10-91.
    • The port of loading must submit a Monthly Report of Undistributed Collection/IOCM to Head Office-Treasury Department not later than the 10th day of the following month.

  • The following distribution and clearing units must submit their respective reports on the due dates prescribed:

    • from PMO Limay-Operations/PMO Batangas-Operations
    • to PMO North Harbor-Finance/PMO Batangas-Finance
    • to PDO Manila/PDO Luzon
    • to H.O.-Treasury Dept.
    • to H.O.-Controllership Dept.
    • to PDO/s concerned
    • to PMO/s concerned

Revocation clause

  • PPA Memorandum Circular No. 13-85 is revoked by PPA Memorandum Circular No. 045-99.

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