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The Philippine Ports Authority (PPA) has released new guidelines for the extension of the free storage period (EFSP) for cargoes.
Under PPA Administrative Order No. 03-2011, the EFSP can only be granted when cargo delivery or cargo loading to the carrying vessels cannot be effected within the FSP due to port congestion, breakdown or non-availability of cargo- handling equipment, strike, lock-out, civil strife, typhoon, flood, earthquake, fire or other similar occurences that have hampered cargo-handling operations.
Under any of those conditions, a request for EFSP specifying the reasons must be filed with the concerned port management office together with true copies of the Customs entry, exit or covering document filed, and copies of delivery permit or special permit to transfer or permit to loan and receipts evidencing payments of customs duties and taxes.
For cargoes placed on hold or on suspension order not due to the fault of the owner, importer, exporter, consignee or customs broker, the PPA order said non- accrual of storage charges shall cover only the period of actual suspension of delivery starting from the date of issuance of the order and including two days for the Port of Manila; and three days for other ports immediately following the date of notice of release to the importer, exporter, consignee, shipper or broker.
The period does not cover the time between the expiration of the FSP and the time when the order of suspension of delivery was issued during which storage charges shall accrue.
PPA general manager Atty. Juan Sta. Ana said AO 03-2011 also targets overstaying cargoes declared by the Bureau of Customs (BOC) as abandoned or forfeited in favor of government and disposed through condemnation proceedings.
Sta. Ana said such cargoes can be extended free storage as long as BOC provides pertinent papers showing proof they are subject to condemnation proceedings.
When cargo delivery cannot be affected due to its declaration as abandoned or forfeited and its disposition through condemnation proceedings has been approved by the BOC, non-accrual of storage charges shall commence from the date of last cargo discharged to the day of destruction of abandoned or forfeited containers. -- PortCalls -- June 29, 2011
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