Objectives of the Circular
- To standardize the rates and charges applicable to the issuance of licenses for ancillary services at ports.
- To enhance the efficiency and effectiveness of ancillary service operations in all government ports.
- To encourage greater participation from the private sector in offering ancillary services within the ports.
Prescribed Fees and Charges for Ancillary Services
- Permit Fee: Set at P300 per annum applicable to Port Ancillary Services I and II under PPA AO No. 08-96.
- Regulatory Fee: Set at P1,500 per annum applicable to Port Ancillary Services II under the same administrative order.
- Ancillary service operators utilizing PPA-owned facilities (e.g., water supply systems, weighbridges/truck scales) must pay:
- The P300 permit fee annually.
- A regulatory payment amounting to no less than 10% of their gross income derived from ancillary services.
- Value Added Tax (VAT) as required by law on the above fees.
- Exception: Operators who supply ship provisions such as fresh water using their own equipment (trucks and hoses) are liable only for the regulatory fee of P1,500 per annum plus VAT, without the permit fee or percentage-based fee.
Scope and Application
- The circular applies to all ancillary service operators within government ports who seek or hold permits under PPA AO No. 08-96.
- It particularly addresses the payment structures related to the utilization of PPA-owned port facilities and supplies.
Repeal and Amendment of Prior Issuances
- All previous PPA orders, circulars, or other issuances that conflict or are inconsistent with the provisions of this memorandum circular are repealed or amended accordingly.
Effectivity
- The provisions of this memorandum circular shall take effect fifteen (15) days after its publication in a newspaper of general circulation.
Issuance
- The circular was adopted on March 4, 1997, signed by Carlos L. Agustin, General Manager of the Philippine Ports Authority.