Revised Guidelines on the Granting of Extension of Free Storage Period (EFSP)

June 29, 2017

CPA ADMINISTRATIVE ORDER NO. 01-17

Pursuant to Sec. 7 (b) and (j), Sec. 9 (a), (c), (g), (k) and Sec. 21 of Republic Act No. 7621, pertinent laws, rules and regulations, and Board Resolution No. 534-2017 dated 29 June 2017, of the CPA Board of Commissioners, the following are hereby promulgated:

SECTION 1. Statement of Free Storage Policy. — It is hereby the declared policy of the Authority that the grant of applications for extension of free storage period (EFSP) shall be revised to enhance port operations, maximize port utilization, and decongest storage areas of cargoes which stay therein beyond the free storage period for reasons stated under the immediately following section.

SECTION 2. Grounds for Extension. — Extension of free storage period (EFSP) may be granted on any of the following grounds:

a.) In case where the cargoes cannot be removed from the port premises by the owner/importer/exporter/shipper/consignee thereof due to force majeure; provided that extension of the free storage period (EFSP) shall be limited only for the duration of the force majeure following the expiration of the free storage period;

b.) In cases where the cargoes are subject of seizure and/or detention proceedings by the Bureau of Customs (BOC) and such seizure or detention is later lifted or declared to be improper by competent authority, the extension of the free storage period (EFSP) shall be reckoned from the day that the cargoes were seized or detained. However, cargoes over which a penalty or fine is imposed by the BOC shall not be entitled to EFSP;

c.) In cases where the cargoes are, by law, exempt from payment of customs duties or fees (but not from storage) and the reason for extension is for causes which are not attributable to or beyond the control of the owner/exporter/importer/shipper/consignee of the cargoes as determined by the Authority;

d.) In cases of cargoes intended for charitable and similar purposes as certified by the Department of Social Welfare and Development (DSWD), Department of Health (DOH), or other government agency or instrumentality, or to tax exempt entities or individuals, where the cause of the delay is not attributable to or beyond the control of the owner/exporter/importer/shipper/consignee of the cargoes as determined by the Authority;

e.) In cases of cargoes or medical equipment, supplies, relief goods, and other similar items donated to the DSWD or to any government agency or instrumentality, where the delay for the removal of the cargoes is for causes not attributable to or beyond the control of the owner/exporter/importer/shipper/consignee of the cargoes as determined by the Authority; Provided, that such cargoes are intended for charitable or public purposes and not for profit or business of the Donee;

f.) In cases of computer system malfunction at the BOC as evidenced by a certification of such malfunction from the BOC Collector, Port of Cebu, or in his absence or unavailability, by the BOC Deputy Collector;

g.) In case of other government agencies' delay in the processing of relevant documents, system's failure, or other reasons not attributable to the owner/exporter/importer/shipper/consignee of the cargoes as evidenced by a certification from the Head of Office of the government agency concerned, or in his absence the Assistant Head of Office; and,

h.) Other cases similar or analogous to the above as may be determined by the Cebu Port Commission.

SECTION 3. When to Apply. — An application for an extension of free storage period must be filled within the free storage period or within 24 hours immediately thereafter. However, in meritorious cases as where the delay in the filing of an application is for a just cause or for reasons beyond the control of the applicant, the application may be filed within a reasonable time.

SECTION 4. Processing of Application for Extension. — All requests for extension of free storage period (EFSP) or for refund of payment made under protest shall be processed at the Office of the General Manager of the Authority. HCaDIS

SECTION 5. Original or Certified True Copy of Documents. — To avoid spurious claims and documents, the applicant must attach only the original or certified true copies of official documents to its request for EFSP. Applications for EFSP with incomplete or insufficient documents shall be refused acceptance or denied outright by the General Manager.

SECTION 6. Approval of Request. — The General Manager may approve a request for an extension of free storage period (EFSP) or refund of payment made under protest where the amount involved per shipment is less than One Million Pesos (P1,000,000.00). Where the amount involved is One Million Pesos (P1,000,000.00) or more per shipment, the General Manager shall forward the request to the CPA Board of Commissioners for approval.

SECTION 7. Partial Release. — The General Manager may allow partial delivery, in lieu of payment, where the shipment is divisible (disposable/marketable by units or parts); Provided, That, the value of the portion to be retained in the port is sufficient to cover all the accrued storage including interests and penalties.

SECTION 8. Interruption of Period. — For all the time that the application for extension of free storage period (EFSP) is pending, either with the General Manager of the Board of Commissioners, no storage shall accrue. However, when the application is denied, storage shall be computed for all the time that the cargoes are placed within the port premises excluding the free storage period.

SECTION 9. Payment under Protest. — Pending approval of the application for EFSP, or where the application for EFSP is denied, the cargoes shall not be released without payment of the corresponding storage. However, the owner/importer/exporter/shipper/consignee or customs broker/agent may pay the storage and surcharge storage, if any, under protest to be able to withdraw the cargoes. The payment shall include storage and/or surcharge storage up to the date of the actual delivery/release or loading of the cargoes.

SECTION 10. Procedure in Case of Payment under Protest. — In case of payment made under protest, the applicant for EFSP must file its application for extension of free storage period and/or refund within seven (7) calendar days from the date of payment. Otherwise, the owner/importer/exporter/shipper/consignee or broker shall be deemed to have waived his right to apply for an extension of the free storage period (EFSP) and/or right to a refund. No protest shall be entertained without prior payment of the amount due.

SECTION 11. Period to Decide on the Application for Extension of Free Storage Period (EFSP). — The General Manager shall decide on the application for extension of free storage period, or the protest, or request for refund of payment made under protest, within five (5) calendar days from receipt thereof provided that the applicant submitted complete/sufficient documents necessary for evaluating/processing the request.

SECTION 12. Appeal of General Manager's Decision; Board of Commissioners' Decision is Final. — Where the General Manager denies an application for an extension of free storage period or refund, the applicant may, within five (5) calendar days from receipt of the decision of the General Manager, file either thru email, registered mail, or personal service, a request for reconsideration with the General Manager. Where the request for reconsideration is denied by the General Manager, the applicant may file an appeal to the Board of Commissioners within seven (7) calendar days from receipt of the General Manager's decision, otherwise the decision of the General Manager shall become final.

The Board of Commissioners shall decide the appeal within the next two (2) board meetings. Any decision of the Board of Commissioners shall be final.

SECTION 13. Repealing Clause. — All administrative orders, memorandum circulars/order and rules and regulations inconsistent herewith are hereby repealed or modified accordingly. These guidelines shall have no retroactive effect.

SECTION 14. Effectivity. — This Administrative Order shall take effect fifteen (15) days after publication in a newspaper of general circulation and copies thereof filed with the U.P. Law Center.

APPROVED

(SGD.) ANGELO C. VERDANGeneral Manager

Published in the Cebu Daily News, The Freeman & Sunstar on July 26 and Aug. 2, 2017.