Clarification on the Assessment of Storage Charges for Outbound Domestic Cargoes

March 21, 2016

PPA OPERATIONS MEMORANDUM CIRCULAR NO. 01-16

 

Pursuant to PPA Memorandum Circular (MC) No. 03-95, Storage Charge is the amount assessed on articles, baggage and containers for storage in the port premises, cargo sheds and warehouses of the government. All cargoes that remain stored within or outside transit sheds or laid in the open yard storage not leased to a private entity in any government-owned port or those stored in the warehouses of the Authority beyond the Free Storage Period (FSP) are liable to the payment of storage charge.

Based on PPA MC No. 16-2003, outbound domestic cargoes are allowed FSP of two (2) calendar days after the date of cargo entry into the port.

As there have been queries on how the number of storage days an outbound domestic container or cargo should be computed, the following clarifications are hereby issued:

• The assessment of storage charge for domestic outbound cargoes starts after the lapse of the prescribed two (2) calendar day FSP;

• Cargoes remaining at the port beyond the two-day FSP shall be liable to storage charges regardless of the presence/absence of the intended carrying vessel. The imposition of storage charges shall be up to the start of loading with the assumption that loading of cargoes is continuous.

• If loading did not proceed due to the fault of consignee or shipping line, then storage charge may continue to be imposed on the remaining cargo.

Attached is the sample computation for guidance.

For compliance.

(SGD.) RAUL T. SANTOSOfficer-in-Charge

ATTACHMENT

Sample Computation

Assumption:

A 1 x 20' domestic container van was received at the North Harbor Port on March 1, 2016 for loading to a vessel bound for Davao Port. The vessel arrived at the port on March 6, 2016. The continuous loading of cargoes begin on March 7, 2016. Said container was loaded on March 8, 2016. ITAaHc

Computation of Storage