Port of Manila

Port of Manila INTRODUCTION International trade in the Philippines dates back even before the Spanish era in the country. It has been acknowledged in the history that Philippines’s ethnic minorities maintained trade relationships with other nationalities during the early centuries. As time passed by the expansion of the international trade transpired, giving birth to different laws and regulations governing the international trade in the country. The different ports of entry in the Philippines play an important part in foreign trade. These ports are the sites of international trade and where the last remaining stages of delivering the goods to their destinations take place. There are various ports of entry situated in different locations in the country as it is needed for the integration of trade in different localities. Historically and presently, the major port of entry of the Philippines is the Port of Manila. The Port of Manila has been the traditional and central base of the nation’s customs service. This principal port of entry is divided into three main sectors: the South Harbor, the North Harbor and the Lower Pasig River. The South Harbor, which is the center of this study, handles a big portion of the international shipping. This area of POM is sixty hectares wide and is divided into three parts: a container terminal (Pier 3 & 5) for containerized cargoes, another area (Pier 9 & 13) for the general cargoes, and a domestic terminal (Pier 15) for passengers. South Harbor was also the Spanish Port during the Spanish era but was further developed by the Americans in the 1940’s as part of their globalizing vision for trade. Also, it was once used by the USAFFE during the American regime and it was even used as docks for warships during the World War II. After the Philippines was liberalized on 1946, the Manila South Harbor was used as a mere commercial port until the present time. The expansion of international trade gradually emerged and the putting up of national and municipal ports is inevitably next in line. In the early 1970’s numerous ports were already scattered throughout the country, thus demanding the need for long-range planning for port development. This lead to the creation of the Philippine Ports Authority (PPA) under Presidential Decree No. 505 dated July 11, 1974. After several executive orders and amendments on the functions of the PPA, it is now the main government agency concerned with harbor development and cargo handling operations and has gone into total port district development. The arrastre operators in every port are also in contact with the PPA. In Manila South Harbor, for instance, the arrastre operator of which is the Asian Terminals Inc. (ATI). ATI pays for certain charges, not to the Bureau of Customs, but to the Philippine Ports Authority as compared to the relationship of a lessee and lessor. An arrastre operator, on the other hand, provides the services of loading and unloading of cargoes on board the vessel and the handling of which to the container yards. It also provides the safekeeping of cargo during its stay in the premise of the port. The specific details on the services provided by arrastre operators are further discussed in this research. CHAPTER 1 BOARDING FORMALITIES

1.1

PRE-ARRIVAL

1.1.1 Notice of Arrival (NOA) with Estimated Time of Arrival (ETA) 1.1.1 (A) The Shipping Agent or representative of any vessel engaged in foreign trade entering any of the Philippines ports of entry shall notify the Piers and Inspection Division, Bay Service Section of the vessels arrival and all other particulars at least 24 hours in advance. 1.1.1 (B) upon receipt of the Notice of Arrival (NOA), the Customs Inspector of the Piers and Inspection Division, Bay Service Section shall perform the following functions: (1) Electronically verify the vessel registry number/principal and other vessel information thru Client Profile Registration System (CPRS) (2) Input the Estimated Time of Arrival (ETA) in the E2M Customs System; (3) Encode the time and date in the system and affix his signature on the Hardcopy of the Notice of Arrival; (4) Furnish the Customs Boarding Team a copy of the processed Notice of Arrival (NOA). *Estimated time of arrival means that it is not the sure time that the vessel will arrive at the port of entry. It could be early as the time they reported. 1.1.2 Assignment of Customs Boarding Team The Customs Boarding Team shall be assigned by the Chief, Bay Service Section, thru a duly signed Assignment Order. The following Customs personnel shall be the members of the Customs Boarding Team:

1.2 (a) Customs Senior Boarding Officer; 1.2 (b) Customs Inspector; 1.2 (c) Two Customs Guard 1.1.2 (a) Duties and Responsibilities of Customs Operation Officer III (Customs Senior Boarding Officer)

1.

Board incoming foreign vessels outside the breakwater or harbor, unless prevented by stress of weather. When boarding the vessel, the Customs Senior Boarding Officer shall be assisted by the Customs inspector assigned on a vessel. During boarding formalities, only the Customs Senior Boarding Officer and the Customs Inspector shall be allowed to enter the Captain’s cabin unless the Captain chooses to give the boarding information to the Customs Senior Boarding Officers outside the Captain’s cabin. 2. Obtain from master vessel the necessary information as required in BOC OPM Form No. 15 (Records of Vessels Boarded). 3. Seal sea stores in the presence of ship’s officer and the Customs Inspector assigned on board. Under penalty of law, the Customs seal so affixed shall not be broken while the vessel is within jurisdictional limits of the Philippines except the vessel is in port and only upon written application to withdraw supplies signed by the master and approved by Collector of Customs or his duly authorized representatives. Only the Customs Senior Boarding Officer, in presence of the Customs inspector, may break the seal and allow the withdrawal of such quantities as may be authorized, and re-seal the sea store compartment after such withdrawal. Sea stores when adjusted by the Collector of Customs to be excessive or when duties assessed thereon are not paid, such excess sea stores shall be treated as that provided for in Section 2530 of the tariff and Customs Code of the Philippines, as amended. 4. All Customs Inspectors and/or Customs Guards on duty must be in their proper prescribed uniforms. Unless the Customs Inspectors are properly uniformed, the Customs Senior Boarding Officer shall not allow their embarking on the launch and shall report them as absent. 5. All Customs Inspectors and/or Customs Guards assigned to a vessel must be provided with the necessary stationary and supplies. He shall also see to it that customs inspectors have a copy of the Tariff and Customs Code of the Philippines and a Manual for Port Operations. Report of Customs Senior Boarding Officers 1. Upon his return from an official trip in the bay, the Customs Senior Boarding Officer shall transmit to the Chief, Bay Service Section (or its equivalent office) all reports, entries and other documents delivered to him by the Master, Agent of the Customs Inspector assigned on board vessels. 2. He shall prepare and submit his trip report on BOC OPM Form No. 15 (Records of the Vessel Boarded) to the Chief, Bay Service Section (or its equivalent office) and make reports of any deviation from the assignment order issued to the Customs Inspectors and Customs Guards.

1.1.2 (b) Duties and Responsibility of Customs Operation Officer 1 (Customs Inspector)

1.

Supervise the discharging and loading of cargo, and continuous surveillance to protect the interest of the Customs Service, pursuant to Section 2202 of the Tariff and Customs Code of the Philippines, as amended. 2. Responsible for the proper disposal of all cargo and stores on board vessels under their charge. It is their duty to ensure that no cargo or stores of any description are discharged from or received on, the vessel without authority from the Collector of Customs, or his authorized representatives. 3. Represent the Customs Service in his official relations with the passengers, ship’s officers, owners, agents and consignees, and ensure that the dignity of the service is not impaired. 4. Stay in the vessel to which he has been assigned until he is relieved by proper authority, except as hereinafter provided, or it be necessary in the interest of the service that immediate action be taken. 5. Honor any order, request, or permit of any description only from the following named officials:

(a) (b)

Commissioner of Customs or Deputy Commissioner of Customs; Collector of Customs or Deputy Collector for Operations; (c) Chief or Assistant Chief, Piers and Inspection Division; (d) Chief, Bay Service section; (e) Customs Senior Boarding Officers. 6. Endeavour to work in harmony at all times with Customs employees of other divisions and with the Immigration officers on board with respect to the enforcement of immigration laws, rendering assistance to those officials in the performance of their duties. In case of Philippine registered vessels returning from abroad, conducts mustering of crew, pursuant to Section 1011 of the Tariff and Customs Code of the Philippines, as amended. 7. Cooperate with quarantine in the enforcement of port quarantine regulations promulgated by the Bureau of Quarantine and shall give effect to the same, in so far as they are connected with matters of shipping and navigation, pursuant to Section 605 of the Tariff and customs Code of the Philippines, as amended. 8. Familiarize themselves with the provisions of the Tariff and Customs Code of the Philippines, as amended, Customs

Administrative Orders, Customs Memorandum orders and Circulars issued by the BOC pertinent to their duties. 9. Refers the matters to the Customs Senior Boarding Officer or Chief, Bay Service section (or its equivalent office) for decision, in case he is in doubt as to proper action to be taken. Specific Duties upon assuming Charge of Vessel (Customs Inspector)

1.

It shall be the first duty of a Customs Inspector upon assuming charge of a vessel, especially a passenger vessel, to immediately assign a Customs Guard at each accommodation ladder or gangway with the instruction not to allow persons to board the vessel without a written pass, except the stevedores to attend to the discharging or loading of cargoes. 2. The Customs Inspector shall instruct Customs Guards assigned on the gangway to conduct body searches, if necessary, on all persons boarding or disembarking from the vessel. 3. While the vessel is docked at the pier or wharf, the Customs Inspector shall make periodic inspection to ascertain that all ropes and cables from the vessel to dock are provided with rat guards and that adequate safeguards are employed, such as the covering of the holes through which ropes and cables pass. 4. If the vessel docks at night, the Customs Inspector shall require proper lightning at the gangway.

1.1.2 (c) Relationship of Customs Inspectors with Customs Guards under His Supervision 1. The Customs Inspector shall see to it that the Customs Guards assigned on the vessel are in complete uniform and present neat and clean appearance. Their official badges must be displayed conspicuously. He should impress upon them the necessity of courtesy in their official dealings with passengers, ship’s officers, consignees, and other concerned. He shall instruct them that all disputes and all questions wherein the element of doubt enters should be submitted immediately to the Customs Inspector on board and satisfy himself that the Customs Guard to whom he issues instructions thoroughly understands them, so that errors may be avoided. 2 He shall report for Customs Senior Boarding Officer on duty the unexplained absence of any Customs Guard assigned to him. 3 An efficiency report for Customs Guards shall be submitted by the Customs Inspector for each vessel on which he is in charge. Customs Guards, who are incompetent, negligent in the performance of their official duties, or guilty of disobedience, shall be the subject of a special informal report, which shall be submitted with the efficiency report. 4 He shall maintain a logbook to keep a record events, during his tour of duty, to include Customs Guard/s sent ashore or to another vessel on official business specifying the following: (a) Time of Departure; (b) Nature of Business; Destination; (c)Where in when he is to report upon the completion of his business; (e) Time returned. When Customs Guards are ordered to report to the customs Senior Boarding Officer’s launch at a certain time, a similar note shall be given, addressed to the Customs Senior Boarding Officer. These records shall always be rendered on the logbook furnished to Customs Inspectors, so that absent customs Guards can be accounted for. 5 It is essential that an accurate check be secured on all cargoes discharged from, and loaded on, a vessel. Customs Inspectors shall instruct their Customs Guard to check independently of other checkers, and to submit their Customs Guard’s Report. 6 He shall submit the Discharging Sequence and/or Inward foreign Manifest duly received in the logbook by the Customs Wharfinger. Report after Termination of Duty A Customs Inspector, returning to shore after the vessel of which he was in charge has sailed, or returning to station from an outport assignment, shall immediately report to the chief Bay Service Section (or its equivalent office) and submit all reports relative to his assignment to the latter who shall properly endorse them to the Chief, Piers and Inspection Division (or its equivalent office). The Customs Inspector, upon submission of his reports, shall register the time and date of his vessel’s departure in the priority listing of Customs Inspectors for assignments. A Customs Inspector who has not submitted his records and documents pertinent to his vessel assignment shall not be given assignment to a new vessel until he has submitted his reports and documents. The

1.

reports

of

a

Customs

Inspector

shall

include

as

supporting

documents

the

following:

Duly accomplished Inspector’s Certificate of Lading, in case of break-bulk and conventional cargoes. The original copy together with the Export Permits to be submitted to the Export Processing Division concerned; 2. Shipside Permits, if any, properly endorsed at the back thereof with accompanying transfer notes and Customs Guard’s Check report; 3. Accomplished Certificate of Inspection (CI), Certificate of Identification and Loading (CIL), if any;

4.

Certificate of date of Last cargo Discharge accomplished by Customs Inspector on board and bearing the seal of the Master of the vessel, to be submitted to the office of the Chief, Piers and Inspection Division (or its equivalent office); 5. Clearance of a vessel indicating therein the time and date the vessel actually sails and the berth assignment and the period of tome the vessel stays at such berths and/or anchorage for transmittal to the Customs Clearance Officer; 6. General permit issued by the Customs Senior Boarding Officer properly endorsed at the back thereof; and 7. All shipping documents required from the Master upon boarding a vessel, permits properly endorsed, and repots of all violations of Customs rules and regulations that may come into his attention. 8. All permits, entries and other documents received by the Customs Inspector on board a vessel shall be endorsed by him, upon completion of his portion of the action directed. Such endorsements shall always show: 8.1. The date when the action was accomplished; 8.2. The action taken; and 8.3. The portion of the action unaccomplished, except in some instances where another Customs Official is to perform the unaccomplished action. The date and time of receipt of any official document shall always be noted therein by the Customs inspector who shall initial the same.

1.1.3 Submission of Advance Electronic Manifest before Arrival of Vessels Engaged in Foreign Trade thru E2M Customs System and Penalties The submission of electronic copy of Inward Foreign Manifest (e-IFM) and electronic copy of Consolidated Cargo Manifest (eCCM) must be done through any of the Value Added Service Providers (VASPs) accredited by the BOC. The e-IFM, in the case of shipping lines must be electronically submitted at least 12 hours before arrival of the carrying vessel. The e-CCM, in case of NonVessel Operating common Carrier (NVOCC)/ cargo Consolidator/Co-leader/Break-bulk Agent must be submitted at least 6 hours before arrival of the carrying vessel. The cut-off time for e-manifest submission is calculated from the submitted estimated date and Time of Arrival using the BOC Gateway Service Clock. The e-IFM must be submitted ahead of the e-CCM. If the e-CCM is submitted ahead of the e-IFM, the eCCM will not be registered in the E2M Customs System, but has to be re-submitted when the e-IFM is already registered. 1.2 ARRIVAL 1.2.1 Quarantine Certificate for incoming Vessels from a foreign Port (SEC. 1003, TCCP) Entry of vessels from any port or place outside of the Philippines shall not be permitted until they have obtained a Quarantine Certificate issued under the authority of the Bureau of Quarantine. However, if a vessel has already been issued a Quarantine Certificate in the first Philippine port of entry, she will not be required to undergo other Quarantine formalities at succeeding ports of call in the Philippines. No person shall be allowed to board or leave the vessel before they are cleared by the Bureau of quarantine, except the pilot who is governed by the Quarantine regulations in such contingencies. The certificate shall be part of the required documents to be received by the Customs Senior Boarding Officer from the Master of the vessel. No Quarantine permit shall be required for the discharged of regularly manifested cargo, including animals, plants, etc., unless otherwise required by law or regulations. However, if animals and plants are carried as baggage, their discharged shall be subject to the regulations promulgated by the Bureau or office concerned. According to Mr. Galorport, before entering the territory of the Philippines, the vessel should raise their Registry Flag, Flag of the Philippines and Quarantine Flag (Yellow Flag) at the Quarantine Anchorage as a sign that they are not done with quarantine. The Quarantine officials and medical doctor will board the vessel at the Outside Breakwater Zone to inspect and check the vessel, passenger, crews, and master of the vessel and the captain of the vessel if they are all healthy. Once that the vessel has rats, cockroaches, insects or the passenger is in sick the Bureau of Quarantine will issue a provisionary clearance and they cannot enter the port unless they already comply all the requirements given by the Bureau of Quarantine. On the other hand, if the vessel, passenger, crews, master of the vessel and the captain of the vessel are healthy, the Bureau of Quarantine will issue pratique which allows them to enter and get contact with the port. After issuing the pratique they will now lowered the Quarantine Flag to give signal to the boarding officials in charge to start the boarding formalities. If the vessel will enter the territory of the Philippines not raising their Nationality Flag/Registry Flag they could seize and arrest by the Bureau of Customs. 1.2.2 Entrance of Vessel from a Foreign Port Upon arrival of vessel from a foreign port, BOC OPM Form No. 9 (Oath of Entering Vessel from a Foreign Port) with Customs Documentary Stamp duly accomplished by the Master in (4) copies shall be presented to the office of the Customs Clearance Officer within (24) hours.

1.2.3 Documents/ Permits

1.2.3 (a) Documents to be produced by Master upon Entry of Vessel For the purpose of making entry of a vessel engaged in foreign trade, the master thereof shall present the following documents duly certified by him, to the customs boarding officials under Sec. 1004, TCCP: a. The original manifest of all cargo destined for the port, to be returned with the endorsement of the boarding official;

b.

Three copies of the same manifest, one of which, upon certification by the boarding official as to the correctness of the copy, shall be returned to the master; c. A copy of the cargo storage plan; d. Two copies of store list; e. One copy of passenger list; f. One copy of crew list; g. The original of all through cargo manifest, for deposit, while in port, with customs official in charge of the vessel; h. A passenger manifest of all aliens, in conformity with the requirements of the immigration laws in force in the Philippines; i. One copy of the original duplicate of bills of lading fully accomplished; j. The shipping articles and registry of the vessel of the Philippine registry; Other Documents to be produced by the Master according to the Port Operation Manual of the Bureau of Customs: (a) Quarantine Certificate (Pratique); (b) Clearance of vessel from last port call; (c) Original and four (4) copies of Inward Foreign Manifest duly signed by the Master; (d) Three (3) copies each of the following: 1. Bonded Store list 2. Narcotics and Dangerous drugs list 3. Ship’s Store list 4. Mail list 5. Firearms and ammunition list 6. Crew’s declaration list 7. Parcel list (e) Through Cargo Manifest/s, if any, this shall be deposited to the Customs Inspector and shall be returned to the master prior to departure to other ports; (f) Cargo Stowage Plan or hatch list; (g) If passenger vessel, three copies of disembarking passengers list and their baggage declaration. The Customs Senior Boarding Officer after carefully comparing the copies with the original manifest, shall stamp each of such manifests on the last page thereof with a rubber stamp provided for that purpose, and verify that the necessary information required in accordance with Section 12 item No.4 hereto is contained therein. All documents, except copies for the Customs Inspector on board the vessel, shall be forwarded to the office of the Chief, Bay Service Section (or its equivalent office), for transmittal to offices concerned. 1.2.3 (b) Inward Foreign Manifest (IFM) and Consolidated Cargo Manifest (CCM) Contest The hardcopy of the inward Foreign Manifest required to be submitted by the Master of the Vessel to the Boarding Officer shall contain the following information: a) Bill of Lading number b) Marks and numbers of cartons, drums, boxes, crates and other forms of protective packaging (for breakbulk) c) Container and seal number if containerized and initials FCL, if full container load, and LCL, if less container load. d) Number of packages e) Kind of packages (cartons, boxes, crates, drums, etc.) f) Contents of description of cargo

g) h) i) j) k) l) m)

Shipper Consignee Gross weight in metric tons Measurement in cubic meters Port of origin Notify party Inward Foreign Cargo Manifest submitted not in accordance with the above requirements shall be rejected.

The Customs Senior Boarding Officer shall, with his initials, note down on all the copies of Inward Foreign Cargo Manifest delivered to him by the Master of the vessel the specific time and date when such documents were received. If the Inward Foreign Cargo Manifest is not in the English language, the Customs Senior Boarding Officer shall require its translation to English before accepting the same. (SEC. 1006, TCCP) All articles, wares, goods, merchandise, and any other cargo including unaccomplished baggage, and orders or “encargo’ from abroad, received by the master, officers and crew of vessels without bills of lading or not covered by manifests or parcel list shall be subject to seizure as unmanifested cargo under the Customs law. Distribution of Inward Foreign Manifest (IFM) Hard Copies The Inward Foreign Manifest shall be distributed to the following offices: a) Original copy - Piers and Inspection Division (PID) b) One copy - Commission on Audit (COA) Resident Auditor through the (OCOM) c) One copy - Intelligence Group (IG) d) One copy - Assessment and Operations Monitoring Group (AOCG).

Office of the Commissioner

1.2.3 (c) Permits for Discharge and Lading of Cargo Unless the vessel has put into “in distress”, the Customs Senior Boarding Officer shall, upon placing the vessel under Customs surveillance and control, issue a “General Permit”. Such permit however, shall not constitute an authority for the loading of export cargo or deliver of import cargo at ship’s side without the required entries or permits as the case may be. The General Permit shall be endorsed by the Customs Inspector assigned on board the vessel mentioned in the permit at the back thereof showing whether or not all import cargoes has been discharged at the port. Such permit shall be included in his report after the termination of his assignment on board a vessel. 1.2.3 (d) Endorsement of Permits The following permits shall be endorsed on the reverse side thereto: (a) The General Permit (b) The Shipside Permit (c) Permits for the sending of special consignments of cargo to the piers or to the Parcel Section (d) Permits issued by the Deputy Collector for Operation or its equivalent office for the transfer of cargo from one vessel to another On the same permit and directly under the preceding endorsement, the receiving Customs Inspector shall make an endorsement to the effect that he receives the cargoes on board the vessel to which he is assigned. All endorsements and returns shall be signed over the printed name and executed clearly and legibly especially with reference to any figures that maybe included. All minor corrections shall be initialed by the endorsing officer. All other permits shall be endorsed on the reverse side thereof. 1.2.3. (e) Shipside Permits Shipside Permits, when duly processed and approved by the Collector of Customs or the Deputy Collector for Operations or its equivalent office, as the case maybe, is an authority for the Customs Inspector assigned on a vessel to allow the discharged of cargoes specified on the permit at shipment unto lighters, under guarded. Three (3) kinds of Shipside Permits: (a) Regular Shipside Permit- issued by the Deputy Collector for Operations or its equivalent office as now presently required for all cargoes which belong to the categories of “regular shipside cargoes” under existing regulations. (b) Special Shipside Permit- when cargoes do not belong to “regular shipside cargoes”, such as ballast, garbage, provisions, watering, bunkering, vessel parts for repair the ship’s agent to get the authority from the Collector of Customs prior to the processing and approval by the Deputy Collector for Operations or its equivalent office. (c) Temporary Shipside Permit- is a written authority to discharge cargoes at shipside unto lighter as per order of the Collector

of Customs. The permit shall be forwarded direct to the Customs Inspector of the carrying vessel without entry being filed. This is issued only as an emergency measure so as not delay ship operations. This permit is also issued on Saturdays, Sundays and holidays when there are no offices to process the regular shipside permit. Several conditions are usually imposed in the issuance of this Temporary Permit, among which are: • That the cargo is under guarded continuously until released by the Bureau of Customs; • That the lighter shall not be taken out of the Customs designated barge pool area until the Regular Shipside Permit is issued by the Deputy Collector for Operations or its equivalent office, and is presented to the Customs Inspector of the carrying vessel; and • That the Deputy Collector for Operations/chief, Piers and Inspection Division (PID) or its equivalent office be duly notified of the discharged the Temporary Permit. Pending Issuance of Shipside Permits Pending issuance of shipside delivery permit, the Customs Inspector on board may receive written requests from consignees, countersigned by the ship’s agents, and approved by the Collector of Customs, that certain designated goods be discharged into separate carriers. Under such circumstances, the same procedure is enjoined as in the case of shipside delivery except that the consignment shall be held alongside the vessel under guarded. Provided that, in case no permit is received by the Customs Inspector on board within (72) hours from the time discharged, the Chief, Bay Service Section shall be advised accordingly so that the cargo may be sent to the Customs designated barge pool area/piers/wharf, under guarded. The Customs Inspector assigned on a vessel who allows the discharged of cargoes at shipside comply strictly with the conditions and/or requirement stated on the permit and prior to the unloading of the cargoes, he must first check the cargoes mentioned in the permit against the Inward Foreign Manifest. After affecting the total discharge of cargoes unto lighter, the Customs Inspector shall endorse the shipside permit at the back thereof specifying the quantity of cargoes discharge. He must indicate the names of lighters loaded and the corresponding names of the Customs Guards in charge of each lighter loaded. A copy of a transfer note covering the shipment together with the corresponding Guard’s Check Report made by the Customs Guard in charge shall be attached to the shipside permit for submission to the Records Section, Piers and Inspection Division (or its equivalent unit). 1.2.3 (f) Transfer Note (Boat Note) Shall be made in six copies by the Customs Inspector on board. For cargoes delivered at shipside, the transfer note shall show the following: a) Name of vessel and registry number b) Name of lighter c) Name of Broker and/or Consignee d) Marks and Numbers e) Kinds and Description of Goods f) Time and Date lighter left alongside the vessel g) Shipment Permit Number h) Names and signatures of Customs Inspector, Customs Guard In charge of Lighter and the Patron of the Lighter i) Any other information and/or remarks such as, conditions set forth on the Shipside Permit by the Collector of Customs The copies of the prepared transfer note shall be distributed as follows: • Original and Duplicate To Customs Guard In-Charge Triplicate Attached to the Shipside Permit together with the Guard’s check report • Quadruplicate To Patron of the Lighter • Quintuplicate Inspector’s file • Six copies Attached to the booklet of the Transfer Note (Issuing Officer) 1.2.4 Boarding Sequence The vessel upon arrival from a foreign port at the port of entry and after the issuance of the quarantine certificate (Pratique) by the Bureau of Quarantine shall be boarded in the order: 1. Customs Senior Boarding Officer Inspector and Customs Guards assigned to the vessel 2. Immigration officer 3. Department of Agriculture/ Bureau of Plant Industry / Bureau of Animal Industry / Bureau of Fisheries and Aquatic Resources Quarantine Representative (if required) 4. Other agencies or persons authorized by the collector of the customs. According to Mr. Galorport, after issuing the pratique to the master of the vessel by the Bureau of Quarantine and lowering the yellow flag as a go signal for the customs boarding officials to board the vessel. The flag of red and white is the sign that the pilot is on board. The assignment of customs boarding officials are in rotation. The boarding team is composed of 1 Customs Senior

Boarding officer, 1 Customs Inspector, 2 Customs Guard, Immigration officer, Plant Quarantine Representative and Animal Quarantine Representative. They should always wear the appropriate and prescribed uniform such as name plate, customs badge, black shoes and regulation cap. In case of emergency the Customs Inspector only will board the vessel. The vessel will anchored and moor at the pier. If the vessel is now ready to board by the boarding officials, the gangway will be lay down and the boarding team will go to the captain’s cabin to start the boarding formalities. *After signing the general permit by the Customs Senior Boarding Officer, the master of there will always be a copy for the Customs Inspector and to the Customs Senior Boarding Officer. After signing all the documents by the boarding team and by the master of the vessel the Customs Boarding Senior Officer may now return to the office and the Customs Inspector will remain to the vessel to supervise the unloading of cargo. 1.2.4. (a) Customs Boarding Team on Foreign Vessel The customs senior boarding officer shall place the vessel under customs control and surveillance by posting a customs inspector and customs guards thereon. (SEC.1002, TCCP) 1. No person shall be permitted to go on board such vessel except the pilot, consul, Health officials, Immigration and Customs Officers without the permission of the customs inspectors on board the vessel. 2. No tugboat, rowboat, or other watercrafts shall be allowed to go along side the vessel to ferry any person to or from the vessel without a permit from the collector of customs or his duly authorized representative. 3. Unauthorized, tugboats, rowboats and other watercrafts shall keep away from such vessel engaged in foreign trade at a distance of not less than fifty (50) meters. 1.2.4. (b) Actual Time of Arrival (ATA) of foreign Vessel thru E2M Customs System (SEC. 1012, TCCP) After boarding formalities, the E2M-OIC of Piers and Inspection Division-Bay Service Section, shall input the Actual Time of Arrival (ATA) from the boarding information sheet submitted by the Customs Boarding Officer. 1.2.4. (c) Submission of supplemental cargo manifest Supplemental e- manifest submission is treated as non-compliant/late submission, and shall be subject to penalty as stated in Part II Section 14-C this manual. Supplemental e-manifest must be submitted in hard copies and electronic form within the period prescribed in customs administrative order (CAO) 6-2007 and Customs Memorandum Order (CMO) 37-2009; otherwise, the shipments subject of the Supplemental Manifest will be considered unmanifested and subject to seizure proceedings. 1.2.4.1 Submission of Supplemental e- manifest:

1.

Cargoes/ containers not listed in the IFM but are otherwise recorded in the stowage Plan must be covered by a supplemental e-manifest submitted to the BOC through the VASP not later than forty-eight (48) hours from date of discharge of the last package from the vessel; 2. For Cargoes/ Containers not listed in the IFM and stowage plan, the supplemental e-manifest must be submitted not later than twenty-four (24) hours from the date of last package; and 3. In both cases, the deputy Collector for operations and the chief, piers and inspection division (or its equivalent office) monitor the forty-eight (48) or the twenty-four (24) hours rule as the case may be before authorizing the registration of the supplemental e-manifest onto the electronic manifest system (EMS). CHAPTER 2 UNLOADING OF CARGOES CHAPTER TWO: UNLOADING OF CARGOES

2.1 Types of Cargoes 2.1.1 Containerized trucks, trains and ships.

Cargo – cargo shipped in large containers (up to 45 feet long) that can be lifted by crane onto and off

2.1.1.1 Dangerous Cargo Is also called hazardous materials or HazMat, are solids, liquids, or gases that can harm people, other living organisms, property, or the environment. They are often subject to chemical regulations. Dangerous goods include materials that are radioactive, flammable, explosive, corrosive, oxidizing, asphyxiating, biohazardous, toxic, pathogenic, or allergenic. Also included are physical conditions such as compressed gases and liquids or hot materials, including all goods containing such as materials or

chemicals, or may have other characteristics that render them hazardous in specific circumstances. Dangerous goods are often indicated by diamonds- shaped signage. 2.1.1.2 Refrigerated Cargo/ Reefer Cargo Refrigeration is essentially the removal of heat through the process of evaporation. To prolong their “practical shelf life” – the time from harvest until the product loses its commercial value; commodities such as fruits and vegetables are being refrigerated. Stowage of refrigerated cargo. Chilled meat cargo is hung from the strengthened deck stiffening members, and the tweed deck height is arranged to provide space below the hung carcasses for the circulation of air. Frozen meat is stacked in the holds of the ship. Fruits and vegetables are stowed in a manner which permits an adequate flow of air to be maintained around the crates, etc. As a rule the refrigerated rooms in general cargo ships are made rectangular to keep down insulation costs. 2.1.2 Non-Containerized Cargo 2.1.2.1 General Cargo General cargo vessels vary in length between 80 and 160 m, the latter having a deadweight of about 20.000 tons. The cargo holds of these multipurpose vessels are able to handle both containers and all sorts of cargo. Dependent of the specific trade, the ships vary from medium speed, slender project cargo vessels to slow speed extremely high block vessels with a large load capacity. For the latter ship type viscous flow computations are carried out to ensure a favorable flow around the ship’s aft body, without flow separation. 2.1.2.2 Bulk cargo Bulk cargo is a commodity cargo that is transported unpackaged in large quantities. This cargo is usually dropped or poured, with a spout or shovel bucket, as a liquid or as a mass of relatively small solids into a bulk carrier ship's hold, railroad car, or tanker truck/trailer/semi-trailer body. Smaller quantities (still considered "bulk") can be boxed (or drummed) and palletized. Bulk cargo is classified as liquid or dry. Example of bulk cargoes are cement and sand that are not packed or in sacked. 2.1.2.3 Break- Bulk Cargo Break- bulk cargo means general goods, commodities or wares which are customarily shipped on boxed, bagged, crated or unitized form, held in the vessel’s general holding areas, and handled by piece, unit or in separate lots; without limiting the generality of the foregoing definition of break- bulk cargo, that term includes road motor vehicles and other odd- size cargo, but shall not include containerized cargo. Break- bulk cargo, so named for non- palletized items that could later be consolidated in a pallet or in a container, commonly consist of lightweight manufactured components, individual packages and small parcels. Break- bulk is the process of assimilating many small shipments into one large shipment at a central point so that economies of scale may be achieved ; to commence discharge of cargo. Break- bulk cargo is loose cargo, such as cartons, stowed directly in a vessel’s hold as opposed to containerized cargo. Example of break- bulk cargoes are sack of rice and cement. 2.2 TYPES OF CONTAINERS The main types of containers, as defined by ISO Standards Handbook on Freight Containers are: 2.2.1 General purpose containers/ Standard Containers They are closed containers, i.e. they are closed on all sides. Standard containers are used for all types of general cargo (dry cargo). A distinction may be drawn between the following types of standard containers: • Standard containers with doors at one or both end(s). • Standard containers with doors at one or both end(s) and doors over the entire length of one or both sides. • Standard containers with doors at one or both end(s) and doors on one or both sides  The various types of container also differ in dimensions and weight, resulting in a wide range of standard containers. Standard containers are mainly used as 20’ and 40’ containers. Smaller dimensions and even longer dimensions such as 45’ are very seldom used. 2.2.2 • • • • • • •

Specific purpose containers close ventilated container; open top container; platform based container open sided; platform based container open sided with complete superstructure; platform based container open sided with incomplete superstructure and fixed ends; platform based container open sided with incomplete superstructure and folding ends; platform (container)

 Open containers provides less protection to the cargo, but also prevent a crypto climate unsuitable for storage from developing. The open sides or the roof may be closed with tarpaulins, so immediately forming a crypto climate, similar to that described for standard containers, but with greater ventilation due to the opening always present with tarpaulin covers.  Flat racks refers to a type of shipping container, which has no sides or top. It is designed to accommodate cargoes, such as machinery, vehicles or forestry products, whose overall dimensions exceed those of a general- purpose container. • Bundled flat racks (e.g., three or four empty flat racks in one bundled) are classified as empty containers; • For billing purposes, a bundle of 3 or four empty flat racks is considered as one (1) lift; • The rate of a 20- foot empty container under Term A-1 of containerized cargo in the cargo handling tariff schedule of MICT and South Harbor shall be the basis in the assessment of per lift of empty flat racks. 2.2.3

Specific Cargo Containers

• •

Thermal container; Insulated container; Refrigerated container – (expendable refrigerant); Mechanically refrigerated container; Heated Container; Refrigerated and heated container; Tank container; Dry bulk container; Named cargo container (such as automobile, livestock and others); and, Air mode container.

• • • • • • • •

 Refrigerated containers (also called as reefer containers), which are not cooled, and thus operate as insulated containers, are characterized by the low heat – transfer value of their walls. Temperature variations due to exposure to solar radiation and overnight cooling are consequently lower, such that they may be used to transport some more demanding cargoes. Pre- cooled cargoes can survive short voyages in these containers, while frost – sensitive fruit can withstand short period of sub- zero temperatures without impairment of quality, especially since the fruit still releases heat by respiration processes, so raising the internal temperature. For longer voyages, however, the effectiveness of insulated containers should not be overestimated. It should also be noted that the limited extent of heat exchange also delays any desired temperature adjustment of the cargo. Cargo loaded when cooled will survive in tropical ports at a lower temperature that it would in a standard container, possibly at below the dew point temperature, so resulting in condensation.

2.2.4 Full Container Load A Full Container Load (FCL) is a standard (20 or 40 ft length) depending on location of origin Country, but sometimes it is standard container that is stuffed (loaded) and un-stuffed (discharged) under the risk and account of one shipper and only one consignee, in practice it means whole container is intended for one consignee. FCL container shipment attracts lower freight rates than an equivalent weight of cargo in bulk. The FCL means the loading reaches its allowable maximum weight or full measurement. In practice, the FCL in the ocean freight does not always mean packing a container to its full payload or full capacity. Container loading is a quite difficult procedure, and during the loading it is necessary to pay attention in order to avoid cargo damage. Following there are some rules you should know in order to save goods in proper condition: The container loading should be inspected inside and outside, before loading. The cargo must be lashed by the best appearance inside the container. The container must be loaded the admitted weight. Cargo should be packed in the proper way, it's necessary to use special packing for sea or air shipment. During the loading you have to use suitable equipment, do not use heavy forklifts into the container during loading/discharging, it follows risks of damaging the container floor.

2.2.5 Loose Container Load Less than container load (LCL) is a shipment that is not large enough to fill a standard cargo container. The abbreviation LCL formerly applied to "Less than (railway) Car Load" for quantities of material from different shippers or for delivery to different destinations which might be carried in a single railway car for efficiency. LCL freight was often sorted and redistributed into different railway cars at intermediate railway terminals reroute to final destination. 2.3 Discharging of Containerized Cargoes a) Discharging of containerized cargoes shall be authorized only upon issuance of a general permit by the customs senior boarding officer; b) Thereafter, unloading of containers shall commence; c) During unloading, the customs inspection /Customs Guard on board foreign vessel shall verify the container number/s against the discharging sequence; d) Customs Inspector/ Customs Guards shall check/ inspect of the container seals are intact;

e) Discharging Report shall be submitted upon completion of the unloading operation. 2.4 Unloading Bulk and Break bulk The clearance of cargoes for bulk and break-bulk cargoes/ shipments such as liquids, chemicals, petroleum products and all other cargo shipped in bulk/break- bulk the duties and taxes of which normally determined by weight (e. g wood, steel, coal, grain, etc.) shall be governed by pertinent regulations, more particularly Customs Administrative Order (CAO)3-2010 and Customs Memorandum Order(CMO)18-2010 on Procedure for the bulk and break-bulk cargo clearance enhancement program mandated under administrative order(AO) No. 243 as amended by AO 243-A. The said CAO and CMO allows under certain conditions the filling of import entry/ies and payment of proper duties, taxes and other fees prior to the arrival of the vessel in the Philippine port of destination and immediately cause the discharge and withdrawal of the same from customs premises and/ or custody provided that the declarations in the import entry/ies are confirmed by the Load Port Survey (LPS) Report and upon presentation of the proof of payment of duties, taxes and other fees as well as compliance with other pre-requisite for valid importation. The accredited surveyor may be allowed to board the vessel for purposes of securing/need for a Discharge Port Survey (DPS) Report due to absence of a Load Port Survey (LPS) Report or upon agreement by the shipper and consignee, upon appropriate instruction from the One Stop Shop (OSS) headed by the Deputy Commissioner of Assessment and Operations Coordinating Group (AOCG). In the event that the shipment is covered by an alert order or that the shipment is different from the details in the entry, the customs inspector or the customs guard assigned on board the vessel shall inform in writing the formal entry division or its equivalent office (Attention: the concerned customs examiner/ appraiser) thru the office of the chief, Piers and Inspection Division, indicating there in the exact location of the shipment for the usual customs examination and processing of the entry. 2.4.1 Unloading of bulk and break- bulk cargoes at shipside Shipside discharge of cargoes shall be authorized only upon presentation of necessary shipside permit issued by the deputy collector for operations. Upon receipt of the shipside permit, the Customs Inspector assigned on board shall:

(i)

Verify the subject shipment covered by the shipside permit against the inward foreign manifest as to the correctness of marks and numbers, quantity, kind of merchandise, weight, etc.;

(ii)

Issue a transfer note in six copies covering the shipment mentioned on the permit, settling forth the conditions and/or requirements imposed by the collector of the customs on the face of the shipside permit;

(iii)

Assign a customs Guard to check the shipside permit so that only those authorized to be discharged are unloaded;

(iv)

Assign a regular Customs Guard to under guard the lighters, the customs inspectors shall not allows any cargoes if the permit so stipulates;

(v)

When bulk cargoes are to be discharge unto lighters, the customs Inspector shall not allow any cargo to be unloaded without first obtaining the ton/ inch immersion table of the lighter from the patron.

(vi)

After discharge of bulk cargoes at shipside, the customs inspector on board must sign and attest to the long tally of the consignee surveyor report. In Cases where in the vessel is anchored at the anchorage, personal effects, parcel cargoes and the like may be discharged at shipside unto the launch for the subsequent immediate delivery to the office of bay service section (or its equivalent office), under guarded, where the goods shall be duly received by the customs personnel in-charge there at on the face of the transfer note. Cargoes shall be released upon presentation to the customs inspector on board a statement of settlement of duties and taxes (SSDT) duly issued by the Formal Entry Division or its equivalent office. Duties of Customs Inspectors Relative to Import Cargo (a) Unless the collector of customs their discharge into lighter or carriers to sub serve public interest, all vessels arriving from foreign port shall discharge their import cargo at officially designated piers. (b) All cargoes from vessels that go alongside the piers, except here in after specified shall be discharged thereon and no check or accounting shall be undertaken by the customs inspector on board of the vessel, except to satisfy himself that the cargo is actually thereunto discharged, and that ship’s checker is actually checking the cargo being discharged, and that the ship’s Checker is actually checking the cargo being discharged. If a sling/ tango crane goes down without any tally, he should not allow it

to be discharged until the tally sheet is attached to the sling/ tango crane. Upon completion of discharge, either be dockside or shipside, the customs inspector shall secure a written certificate from the ship’s head checker to the effect that all import cargo has been discharge as required by law and the customs inspector be furnished cargo receipts (tally sheets) for all cargoes so discharged by the ship’s head checker of shipping company.

(c)

All imports cargoes discharged at shipside shall be checked by customs guards detailed for that purpose by the customs inspector on board, and for each carrier, the said customs inspector shall accomplish a transfer note showing the quantity and description of the cargo in each lighter or carrier. A transfer note shall always accompany such cargo and information regarding damaged cargo shall be noted in the column for remarks. However, in the case of oil and gypsum in bulk, the quantity to be indicated in the transfer note shall merely be the estimated quantity based upon the report of customs accredited marine surveyors or the reading of the vessel’s gauge, as the case may be.

(d)

The Customs Inspectors on board the vessel shall permit shipside delivery upon receipt of the shipside delivery permit, provided transportation facilities for the cargo described therein are available. He shall detail a Custom Guard to take an accurate account of the number of packages and their marks and numbers. No cargo other than that described in the permit nor packages or quantity in excess of the number or amount indicated therein shall deliver. Any excess found in the cargo being under guarded shall immediately be reported the Chief, Bay Service Section (or its equivalent office).

(e)

In Cases where a discrepancy occurs between the check of the customs guard and that of other checkers on board as to the number of packages discharged into a carriers of shipside delivery, the customs inspector on board shall detail the same customs guard to accompany the carrier and re-check the cargo as it is being discharged at the consignee’s warehouse or wharf. Customs Inspectors shall instruct the customs guards accompanying such carriers to bring to the pier any package or quantity found on the carrier which is not included in the shipside permit. A Customs Guard shall be maintained on such carriers until the cargo has been totally discharged.

(f)

The delivery of cargo at ship’s side is the most important duty of customs inspectors. He shall take every pre caution top avoid mistakes. He shall read every permit carefully to ascertain the kind and quantity of the cargo that he has authority to deliver. He shall see to it that the marks and numbers of the goods being discharged at shipside conform to all particulars as reflected in the inward foreign manifest.

(g)

The Customs Inspectors on board may also receive written permits from the collector of customs or deputy collector for operations to send cargo for transfer to bonded warehouses, in which case he shall cause the goods to be checked by marks and numbers. Transfers notes in sextuplicate shall be duly accomplished and the original and duplicated thereof delivered to the customs guard in whose charge the consignment will be sent to the bonded warehouse indicated in the permit. The Customs Guard shall deliver to the goods to the customs Warehouseman/ Storekeeper in charge of the bonded warehouse, taking his receipt on the face of the transfer notes which must show the exact time and date the goods were received of the warehouse.

(h)

Special Permits are issued to send certain designated cargoes to the customhouse. Under this circumstance, the goods together with the transfer note covering such cargoes shall be under guarded to the Bay Service Section, PID (or its equivalent office). (i) Packages manifested as parcels and those containing valuable goods, if the carrying vessel did not dock alongside the pier/wharf, shall be sent to the Bay Service Section, PID (or its equivalent office) on the boarding officer’s launch, if possible; if not, on the agent’s launch, under guarded. (j) Parcels listed articles shall be properly accomplished on B.C Form No. 174 Accompanying transfer notes shall be accomplished giving the marks and numbers and the names of consignee. (k) Goods from a foreign port may be transferred directly from the directly from the carrying vessel to another vessel engaged in the coastwise or foreign trade upon receipt of written permission from the collector of customs, Detailed instructions in regard to such cargo are given in Sections 17 and 18 this manual. (l) Importations of arms and ammunitions shall be discharged immediately from vessel with proper transfer note to be sent to and receipted at the customs police division for safekeeping and for proper disposition. (m) Goods remaining on board any vessel after the expiration of the period for discharge and not required reported for transit/ transshipment to another port may be unladen by the customs authorities and stored at the vessel’s expense. Customs Inspectors must see to it that all cargoes destined for the port must be discharged at the port unless otherwise permitted by the collector to remain on board, under guarded, if the vessel should clear for other local ports. If vessels will clear for foreign port ship’s agent shall secure a permit from the collector of customs to over carry the remaining cargo. Such permit to over carry cargo shall be issued only upon guarantee of the ship’s agent that over carried cargo will be returned without delay to original port of discharge. Instructions to Customs Inspectors Relative to Carriers Receiving Import Cargo a) No cargoes shall be discharged at shipside into open carriers, except those authorized for delivery there at under existing customs rules and regulations. All other cargoes shall be discharged into secured lighters, capable of being locked and sealed with customs seals.

b)

Carriers alongside a vessel, having that is under customs supervision, shall not be permitted to shift to another vessel to receive cargo unless authorized by the collector of customs of the Deputy Collector for operations of the port

c)

Empty carriers shall not be permitted to lie at night alongside a government pier, or a vessel moored thereto; or a vessel anchored in the harbor, or be attached to such piers or vessels by cables or ropes, or be attached to partly loaded carriers which may be alongside or fastened to such pier or vessel with import cargo or discharge export cargo while the cargo on the pier or vessel is being worked at night. d) Laden or partially laden carriers at shipside containing import cargo shall not be permitted to leave the vessel without permission from the customs inspector on board, except in cases of emergency. In such circumstance, they shall be locked and sealed and placed under guard. e) All merchandise and other movable articles on board a vessel, not included in the cargo manifest or ship stores, shall be included in the list of ship stores . If not so included at the time of boarding, they shall be checked, a supplementary list prepared, and then sealed as part of the ship store. f) The customs Inspector shall, as soon as practicable after a vessel has been placed in his charge, verify by personal inspection the seal of the ship stores which may be broken. Ship’s firearms, except in unusual cases, shall not be placed under seal, but a check shall be taken of them, which shall be verified before the vessels sails, to insure that no arms have been unlawfully landed.

g)

Ship stores may b e discharged under the same conditions as other cargo but the written permission of the quarantine officer shall be presented to the customs inspector before the discharge is permitted. Upon the receipt of a permit or approved application for the transfer of ship store directly from one vessel to another of the same line, the customs inspector on board shall send it under customs guard with transfer note. The lading of stores and provisions for ship’s use in reasonable quantities must be by permit issued by the chief, Piers and Inspection Division (or its equivalent office) and by the deputy collector of customs for operations or his authorized representative in other ports of entry, provided that a vessel arriving and clearing on the same night may make such replenishments upon written request of the master or agent approved by the deputy dutiable. h) An excess of supply in ship’s store in vessels arriving from foreign ports, and all articles purchased abroad for sale on board a vessel as saloon stores or supplies, are dutiable, but all ship stores and saloon stores or supplies not in excess of the proper requirements of the vessel in her voyage outside of the Philippines shall not be deemed dutiable. Surplus in ship’s stores shall not be transferred from one vessel to another, except to a vessel of the same line in active service in the foreign trade, and then only where such stores are bona fide ship stores and not cargo. In such cases, the transfer may be allowed under customs supervision with the approval of the Collector of Customs of the Deputy Collector for Operations. The surplus ship stores of a vessel of Philippine registry shall be dutiable on her changing from the foreign status to a coastwise status. 2.4.2 Unloading of Cargoes at Dockside Import Cargoes All cargoes discharged at dockside from a vessel shall not be accounted for by the customs inspector. However, a Customs Guard on each working hatch must see to it that the ship’s checker is on board making a tally of each sling and if a sling goes down without a tally, the Custom Guard must stop the discharge from the hatch until such time that the checker done his job correctly.

2.5 Passenger’s Baggage, Parcel List and Crews Personal Effects

(a)

The Customs Inspector shall cause the immediate discharge of all baggage, parcel cargoes and articles brought in by the ship’s crews and passengers for discharge at the pier. (b) The Customs shall remind the chief officer or the purser of the vessel, if necessary, that baggage and parcels must be discharged promptly and have the same transferred, under guarded, to the Office of Bay Service Section, PID (or its equivalent office),where proper receipt will be noted on the face of the transfer note. (c) If the baggage and parcels are to be discharged into a carrier in the stream, the Customs Inspector shall assign a Customs Personnel In-Charge thereat will sign.

(d)

For Purposes of determining whether “on cargo” or entrusted shipments of merchandise or articles from abroad be included in the parcel list (B.C. Form No. 174), hereunder is the criteria: Any cargo which is found to exceed 350 lbs. (159kilos) in weight and 40 cu. Ft. (1.13 cu. Meters) in measurements shall not allow the discharge unless the shipping agent concerned shall file a supplemental cargo manifest for said parcel or cargo within twentyfour(24) hours after the arrival of the carrying vessel and pay the corresponding duties and date of discharge to Bay Service Section(or its equivalent office) of each parcel cargo shall be duly noted by the customs inspector on board under the last column of

his copy of the parcel list. Under no circumstances shall any parcel cargo destined for other ports of entry be authorized for discharge at the pier without proper authority from the Collector of Customs 2.6 Unloading of Cargo by Distressed Vessel A distressed vessel in port desiring to unload cargo for the durations of the vessel’s sojourn thereat may be issued a permit to discharge her cargo upon written request of the Master or Agent, approved by the Collector of customs under such terms and conditions he may deem proper. If the cargoes discharged will be cleared or entered in the port where they are discharged, the unloading of this class of cargo shall be subject to the same rules and regulations prescribed for cargoes destined for the port. Unless authorized by a Shipside Discharge permit such cargoes shall be discharged unto the pier. If discharged into lighters, such lighters must be of the closed type and must be secured, locked and sealed with Customs seal and must remain under guard until final disposition thereof is made. 2.7 MACHINERIES AND EQUIPMENTS USED IN CARGO HANDLING FLOATING CRANE BARGE- A crane having a barge or scow for an undercarriage and moved by cables attached to anchors set some distance off the corners of the barge; used for water work and for work on waterfronts. QUAY CRANE- Quay crane is a large dockside gantry cranes found at container terminals for loading and unloading intermodal containers from containerships. Quay cranes consistent of a supporting framework that can be traverse the length of a quay or yard and a moving platform called a “spreader”. The spreader can be lowered down on top of a container and locks on to the containers for locking points using a twist lock mechanism. Cranes normally transport a single container at once, however some newer cranes have the capability to up pick up to four 20- foot container at once. CHASSIS- The rectangular, usually steel frame, supported on springs and attached to the axles, that holds the body and motor of an automotive vehicle. TRAILERS- Trailers are mobile structures used to accommodate temporary offices, dining facilities and storage of building materials during construction projects. RUBBER TIRED GANTRY CRANE- A Rubber Tired Gantry crane is a mobile gantry crane used for tracking intermodal containers within the stacking areas of a container terminal. RTGs are used at container terminals and containers storage yards straddling multiple lanes of rail/road and container storage, or when maximum storage density in the container stack is desired. TRANSTAINERS- Transtainers used for transferring containers from sea- going vessels onto either trucks or rail wagons. A transtainer is mounted on rails with a large boom spanning the distance between the ship’s cargo hold and quay, moving parallel to the ship’s side. FORKLIFT- A forklift (also called a lift truck, a high/low) is a powered industrial truck used to lift and transport materials. Forklift trucks are available in many variations and load capacities. In a typical warehouse setting most forklifts used have load capacities between one- five tons. Larger machines, up to 50 tons lift capacity are used for lifting heavier loads, including loaded shipping containers. MOBILE X- RAY MACHINE- It is a machine being used for safety and security of its ports, shipping and terminals. X-ray cargo scanning systems offer the most efficient service in terms of scanning quality and throughput. However, in an environment where space in often at a premium, port authorities are adapting a flexible approach and also deploying mobile units. INTERNAL TRANSFER VEHICLE- A vehicle which is only found roaming inside the port’s premises for the transfer of containers/goods. Such vehicle has no plate number unlike the usual vehicles. REACH STACKER- A Reach Stacker is one of the most flexible handling solutions whether to operate a small terminal or a medium sized port. Reach stackers are able to transport a container in short distances very quickly and pile them in various rows depending on its access. Reach stackers have gained ground in container handling in most markets because of their flexibility and higher stacking and storage capacity when compared to lift trucks. Using reach stackers, container blocks can be kept 4-deep due to the second row access. There are also empty stackers that are used only for handling empty containers. EMPTY CONTAINER HANDLERS (SIDE LOADER)- Side loaders are used to transport 6m (20ft) and 12m (40ft) containers. They unload the containers to the driver’s side only. A truck and trailer unit is also available to deliver two 6m containers at the same time. For a 6m (20ft) delivery you will need a height clearance of 4.5cm, width of 6m and length 11m. For a 12m (40ft) unit the length extends to 18m. PALLET RACK MOVER- A pallet rack mover is a device that makes it possible to move pallet rack without demo or the

reassembly of the storage system. They are designed to move the entire rack assembly as one unit rather than individual pieces, saving valuable labor costs. Pallet rack movers are typically separated into different classes depending on the weight capacity of the mover. Regular or light duty movers made from a variety of materials such as formed plastic or steel with light to medium duty caster. Light duty movers have a weight capacity reaching 5,000 lbs. per mover. CHAPTER 3 TRANSSHIPMENT CHAPTER THREE: TRANSSHIPMENT Customs procedure under which goods are transferred under Customs control from the importing means of transport to the exporting means of transport within the area of one Customs office which is the office of both importation and exportation (i.e. foreign transshipment).

3.1 Special Instructions to Customs Inspectors Relative to the Discharge of transshipped Cargo 1. Goods from a foreign port may be transshipped direct from the carrying vessel to another vessel engaged in the coastwise or foreign trade upon receipt of written permissions from the Collector of Customs.

2.

When a foreign Transshipment Permit, Authorizing the transfer of cargo from a foreign port is receiving by a Customs Inspector on board of a foreign vessel, he shall permit the discharge of the consignment, causing it to be checked by marks and numbers. A description of the consignment shall appear in the permit, or in a list attached, and the utmost precaution shall be taken that no cargo is discharged on its authority other than that described therein. Beside the permit, the Customs Inspector shall require transit/transshipment cargo manifest in triplicate. The transit/transshipment cargo manifest shall be forwarded to the receiving vessel, together with the corresponding transfer note in triplicate to be receiving by the master of the carrying vessel and noted by the wharfinger or the Customs Inspector on board of the receiving vessel.

3.

Bulk and Break-bulk cargoes for foreign transshipment shall either be discharged directly into the receiving vessel if it comes alongside, or otherwise transshipped to it in lighters or discharged at the pier for eventual loading to the receiving vessel. In the latter case, only lighters capable of being secured, locked, sealed, Customs accredited and insured shall be used. The cargo destined for each port shall be discharged into separate lighters or into separate compartments of the same lighter; provided, that the compartments can be separately locked and sealed. Any deviations from the requirements of this Section shall be made only upon instruction from the Collector of Customs or other proper authorities. The lighters containing the transit/transshipment cargo shall remain under guard until it is loaded in the receiving vessel and properly receipted by the master of said vessel.

4.

Containerized cargoes for foreign transshipment shall be discharged at the pier for eventual loading to the receiving vessel under the same conditions stated in sections 18-A, item no. 2 above. 3.2 Instructions Relative to Foreign Transshipment (By CCCD) After having been duty processed at the Deputy Collector for Operations, the Foreign Transshipment permit, in case of containerized cargoes, with its supporting documents shall be coursed through the Customs container Control Division (or its equivalent office) for posting of container numbers and their eventual loading. The loading inspector assigned to carrying vessel shall verity the correctness of the container numbers indicated in the permit prior to loading of transit/transshipment cargoes on board the carrying vessel. CHAPTER 4 TRANSFERRING OF CARGOES CHAPTER FOUR: TRANSFERRING OF CARGOES

4.1 DIRECT TRUCK TRANSFER For direct transfer of container/cargo from vessel to truck, consignee/customs broker shall submit a written request to the office of the Chief, Piers and Inspection Division (or equivalent to office) which in turn shall recommend its approval to the Deputy Collector for Operations. 4.2

TRANSFER OF IMPORTED CARGO TO OUTSIDE CY-CFS (BY CCCD)

After having been duly processed at the office of the Deputy Collector for Operations, the Permit to transfer to Outside CY-CFS

shall be coursed through the Customs Container Control divisions (or its equivalent office) for posting of container numbers and their eventual transfer. The Permit to transfer to outside CY-CFS shall then be transmitted to the office of the Chief, PID (or its equivalent office). 4.2.1 FLOWCHART: CY-CFS TRANSFER PROCEDURES Container yard – Container Freight Station (CY-CFS) office

Shipping Lines

Office of the Collector for Operation (Processing) Receiving Clerk Numbering Clerk Manifest Clerk Receiving Clerk Approval by the Dep. Col.

Asian Terminal, Inc (ATI) Payment of wharfage Issuance of gate pass

Customs Container Control Division (CCCD)

Asian Terminal, Inc (ATI) Payment of wharfage Pierspass and Inspection Division (P.I.D.) Issuance of gate Receiving Clerk Approval by the Chief Releasing Clerk Wharfinger’s Office

Customs Container Control Division (CCCD)

4.2.2 FLOWCHART: DANGEROUS CARGO PROCEDURES Philippine Ports Authority (PPA) Classification of Dangerous Goods Piers and Inspection Division

Receiving Clerk Approval by the Chief Releasing Clerk Wharfinger’s Office

(P.I.D.)

Operator-Processing Permit Receiving Clerk Numbering Clerk - assigns entry number Manifest Clerk Documents Examiner reviews completeness Approval by Dep. Coll. For Operation On line Release System

Piers and Inspection Division (P.I.D.) 1. Receiving Clerk 2. Approval by Chief, P.I.D. 3. Releasing Clerk 4. Wharfinger’s Office

Asian Terminals, Inc. (ATI) For payment Arrastre/Wharfage Issuance of gate pass

DASSAD-CY 4.3

DUTIES AND RESPONSIBILITIES OF ASSISTANT CUSTOMS OPERATIONS OFFICER (WHARFINGERS)

4.3.1 At the Pier/CY-CFS 1. There shall be one Wharfinger In-Charge for each pier, who shall be responsible for the efficiency and discipline of Customs personnel under him; 2. He shall exercise effective supervision over the Arrastre Contractor’s service regarding receiving, handling, custody and delivery of cargoes; 3. He shall not carefully the condition of the fender piles and draft at the piers and submit reports thereon; 4. He shall cooperate and assist other officers of the government performing official function at the piers; 5. He shall supervise the cleaning of the piers and see to it that garbage and obnoxious cargoes are disposed of promptly and properly; 6. He shall cooperate with, and assist the enforcement and security services (ESS) in maintaining peace and order at the pier, including the exclusion of unauthorized persons inside the pier shed/warehouse and premises; 7. He shall recommend the transfer and shifting of cargoes from pier to pier only, to government bonded warehouses inside and outside the Customs premises; 8. He shall process delivery permits another types of Customs permits; Vis a Vis the Official Receipt/Statement of settlement of Duties and taxes (SSDT) issued by the Formal/Informal Entry division, prior to the release of cargo; 9. He shall, or thru his authorized representatives, accept delivery permits and other types of Customs permits officially hand carried by official messengers of the Bureau and shall properly distribute the same to concern shed/warehouse Wharfinger where the cargoes are stored; 10. He shall submit daily, weekly, monthly, and annual reports thru proper channels, to the Chief, Piers and Inspection Division (its equivalent office); 11. He shall implement all lawful orders given to him from time to time by proper customs authorities; 12. He shall submit report of Overstaying cargoes to the Chief, piers and Inspection Division (its equivalent office).

4.3.2. Outside CY-CFS (Off-Dock) 1.

There shall be (1) Wharfinger In-Charge of Outside CY-CFS (Off-Dock) who shall be responsible for the efficiency and discipline of Customs personnel under him; 2. He shall receive the Transfer Note, Inbound Container and Inward Foreign manifest from the Customs Guard; 3. He shall supervise the stripping of the containers; 4. He shall receive the stripping Tally Sheet from the CY-CFS Warehouseman; 5. He shall process delivery permits and other types of customs permits; Vis a Vis the Official Receipt/Statement of settlement of Duties and Taxes (SSDT) issued by the Formal/Informal Entry Division, prior to the release of cargo; 6. He shall see to it that the cargoes are released and delivered only to the proper parties in accordance with the marks, countermarks and registry number of the carrying vessel; 7. He shall assign a Customs Guard, prepare and sign Transfer Note as well as Supervise the transfer of cargoes to the local ports, economic zones and bonded warehouses either inside or outside customs zone including coastwise transit cargoes and other places designated by customs; 8. In all cases of transfer of packed containers covered by Warehousing Permits or other permits where duties and taxes have not been paid, the container shall be sealed with a Customs seal by the Wharfinger concerned in the presence of the Customs Examiner concerned. Said Wharfinger shall see to it that the containers transferred be Warehouseman assigned threat. If there is no Customs Warehouseman or anybody authorized by the Collector of Customs to receive the same, such containers shall remain unguarded continuously by the Customs Guard until the same is properly released by the Bureau of Customs; 9. He shall maintain a logbook to record events such as examination made, hold/alert order, notice of Warrant of Seizure and Detention (WSD) and samples taken;

10. He shall report to the Collector of Customs within twenty-four (24) hours from the time the article is deemed abandoned and submit a monthly report on Abandoned/Overstaying Cargoes to the Officer Chief, Piers and Inspection Division (or its equivalent office). CHAPTER 5 WAREHOUSING AND RELEASING OF CARGOES CHAPTER FIVE: WAREHOUSING AND RELEASING OF CARGOES 5.1 Warehousing Procedure (Process of Releasing of Less Container Load from Port of Entry to Off-dock): STEP 1. Consolidated containers who owns by multiple consignee will go to the Safeway Warehouse which is a Customs Freight Station-Outside Customs Zone with proper endorsement of the shipping line. The forwarder will present the following documents:  Bill of Lading  Manifest  Guarantee  Delivery order  Certification and authorization STEP 2. The warehouse will declare BC no. 204.  Warehousing  Informal entry  Formal entry  PEZA STEP 3. Operation division- the documents are to be process with the endorsement of shipping lines.  Bill of Lading  Manifest  Certification and authorization  Original Entry STEP 4. Proceed to CCD (CARGO CUSTOMS DECLARATION) for endorsement of the BC form # 204(Entry form) and submission of the Blue Copy (COPY FOR CCD) STEP 5. Proceed to PID (Piers Inspection Division) for endorsement of the documents. STEP 6. Proceed to the Wharfinger to take a Boat note and Spot check NOTE: the BOAT NOTE contain the name of the guard that will accompany the releasing of the cargo from the CY in

the port to the ODCC STEP 7. Pay the arrastre wharfage together with weighing to ATI and CFS to BOC’s cash Division STEP 8. Proceed to SHOC (South Harbor Operation Center) to get GATE PASS by giving the receipt from ATI. Get AISL (insurance) to be attached with Guarantee, delivery order, B/L (all documents endorsed by shipping line) NOTE: All shipping lines has a terminal in SHOC STEP 9. Proceed to the terminal of the shipping line for the issuance of EIR (Equipment Interchange Receipt) STEP 10.RELEASING OF CONTAINER, Submit the EIR, spot check, boat note, entry form, gate pass and weighing to the truck for releasing of container. ◘ Payment: CFS Arrastre Wharfage Insurance 5.2

Releasing of Cargoes

5.2.1 (Releasing of Cargo from Off-dock to the Consignee) 1. When the container is already at the warehouse it will be stripped. Before, while and after stripping the surveyor will take pictures of the seal of the cargoes and container. The cargo will place at the pallets through the use of forklift by the stevedores. 2. To know the owner of the goods they use PID number and register. And use the gate pass to know if it is from MIP or South. Separate the cargoes from MIP and South. 3. • • • • • •

For the customs broker to release the cargo, he/she has to pay at the billing section with the following documents: Entry with ID Release Order/ Delivery Order Bill of Lading Invoice Packing List Final Assessment

4. After the payment, the broker should go to the person in charge in warehousing (warehouse man) to show the following documents: Entry with I.D (photocopy only), Release Order/ Delivery Order, Bill of Lading, Invoice, Packing List, Final assessment(photocopy only) 5. There should be a truck ready to release the cargo. Before the releasing the cargo the broker should show the following documents: Entry with I.D (photocopy only), Release Order/ Delivery Order, Bill of Lading, Invoice, Packing List, Final assessment (photocopy only) 6. To the Wharfinger, the Wharfinger will check if all the payment needed to be settled has been paid, if there is no problem with the documents, the Wharfinger will issue a gate pass to the broker for the releasing of the cargo from the warehouse. 7. If after 30 working days the goods were not declared it is deemed abandoned. CHAPTER 6 HARBOR REGULATIONS AND RELATED TO CUSTOMS CHAPTER SIX: HARBOR REGULATIONS RELATED TO CUSTOMS 6.1. Vessel Entering Port All vessels entering any port, of entry or coastwise, in the Philippines shall show their colors and signal their official numbers or letters and such signals shall be kept flying till the vessel is boarded by the proper officials. All vessels within two (2) miles before arriving at designated quarantine anchorage shall display their aforementioned signals. When mail is to be discharged the vessel shall inform the port authorities by the prescribed signal at the earliest opportunity. 6.2. Flag Signals or Calls 6.2.1

At the Philippine ports of entry signals will be responded to and from Customhouse or pilot signal tower.

6.2.2 The following signals or calls shall be used in all Philippine ports of entry. a. Customs – International Code Flags E & C; at night three or four short blasts of whistle and waving of a light.

b. Quarantine – International Code Flag Q at the fore. c. Pilot – International Code Flag G or P T; at night (1) The pyrotechnic light, commonly known as a blue light, every 15 minutes; (2) A bright white light, flashed or shown at short frequent intervals just above the hull – for about a minute at a time or; (3) The International Code Signal P T by flashing light. d. Explosive or inflammables – International Code flag B at the fore. e. Medical assistance – International Code flag or Customs call. f. Contagious or infectious disease – International Code flags E Z Q g. Death – Customs and quarantine calls or International Code flags, ENL h. Distress – by day: International Code flags N C or gun or other explosives signals, fired at intervals of about a minute, or the distress signal consisting of a square flag having either above or below it a ball or anything resembling a ball; at night: (1) A gun or other explosives signal fired at intervals or about a minute, (2) Flames on the vessel (as from a burning tar, barrel, oil barrel, etc.), or (3) Rockets or shells, throwing stars of any color or description, fired on at a time, at short intervals. i. Mail – International Code flag Y. j. Water boat – International Code flags R C Q or F U. k. PID-ESS – Customs call l. Harbor master – International Code flags G Y T. m. Maneuvering – International Code flag D: at night, 6.3 Quarantine Requirements Deaths, illness or accidents, involving physical to any person on board a vessel in a harbor, shall be at once reported to the Collector of Customs and the quarantine officer. 6.4. Repair/Dry Docking of Vessels No repairs except minor once shall be allowed on any vessel in a port without the permission of the Collector of Customs or the Deputy Collector for Operations as well as its transfer to designated place of dry docking, and shall be subject to continuous under guarding until final clearance. For dry docking – in the following documents are required: (a) Searching and inventory report (b) Approval from the Office of the Deputy Collector for Operations (c) Certification from contractor (scope of work and duration of repair) 6.5. Sunken Vessel Whenever the navigation of any harbor or navigable river tributary thereto shall be obstructed by any sunken vessel, boat, watercraft or other similar obstruction has existed for a period longer than thirty days or whenever abandonment can be established in a less space of time, the sunken vessel, boat, watercraft, or other obstruction, may be broken up, removed, sold, or otherwise disposed of by the Collector of Customs, in his discretion, at the expenses of the owner: Provided, however, that if navigation of a waterway is prevented or seriously endangered by any obstruction, the Collector of Customs may cause its removal immediately and before the expiration of Thirty days at the expense of the owner thereof. 6.6 Lighters/Tugs and other Watercraft Lighters shall not be tied nor removed from alongside a vessel without permission of the Customs Inspector on board such vessel. 6.7. Police Authority performed by Customs Officers 1. Customs officers have the power to arrest within harbor limits persons violation the customs, immigration and navigation laws and regulations and persons committing crimes or breaches of the peace. Such arrest shall be reported without delay to their superior officer. 2. Any person who assaults, resists, opposes, or interferes in any manner with a customs officer in the discharge of his duty shall be liable and subject to the penalties prescribed by law. 6.8. Rat Guards 1. When any vessel either of foreign or Philippines Registry, is it any dock, pier, wharf, quay or bulkhead, such vessel shall take proper precautions to prevent the passage of rodents to or from the Vessel. The vessel shall be fended off from the pier, wharf, quay, bulkhead, or dock not less than six feet and acceptable rat guards, as prescribed, shall be fixed on all connecting lines, and, in addition, all cargo nets, chutes and similar devices extending between the vessel and shore structure, shall be removed at night unless in actual use, as shall all gangways and ladders unless guarded or properly lighted. 2. The master of any vessel of foreign registry of Philippine registry engaged in foreign trade whether lying alongside a pier, dock, quay, wharf or bulkhead, or in the stream shall have suitable rat guards placed on all lines between idle lighters or small boats or other carriers and the vessel which must be so fastened that the guard will remain at right angles to and tight on the line. 3. No cargo shall be discharged from or received on board a vessel lying alongside a pier, wharf, quay, dock or bulkhead or in the

stream before suitable rat guards have been placed on all the lines loading from the carriers to the vessel and from the vessel to the pier, wharf, quay, dock or bulkhead, except in the case of coastwise vessels handling coastwise cargo to or from barges, lighters, or other carriers or from barges, lighters, or other carriers when the rat guard requirement on lines between vessel and carrier may be dispensed with. 6.9. Other Special Anchorages Likewise all other boats and water crafts are prohibited to anchor or to linger around any vessel whether moored at a pier or anchored in the harbor at a distance of less than 50 meters from said vessel unless especially authorized by the Collector of Customs. 6.10 Specific Regulation 1. No empty lighters or carriers shall lie at night alongside a Philippine Government pier or alongside a vessel moored thereto: or shall empty lighters or carriers be attached to such pier or vessel by cables or ropes or attached to loaded or partly loaded carriers which may be alongside or fastened to such pier or vessel. 2. Empty lighters or carriers alongside or attached to such pier or vessel during daytime shall be removed there from before nightfall. 3. The provisions contained in paragraph 1 and 2 above hereof shall not apply to carriers partially laden with import or export cargo or to empty carriers which may have been prepared, or which are preparing to receive cargo from a pier, or vessel, when delivery form a pier or discharge of a vessel during night time has been duly authorized. 4. Any vessel or other water craft in the Philippine Harbor shall, when a case of sickness occurs on board, immediately hoist the regulation quarantine flag (yellow) and keep the same flying until boarded and passed upon by an inspector of the Quarantine Bureau. The flag shall be of sufficient size and so placed as to be plainly visible. 6.11 Prohibitions at the Port While in a port/ Port District, no vessel shall, without written permission of the Authority, carry out engine repairs or other related work which may render the vessel unable to move when required to do so. If a vessel is unable to move when so required by the Authority, the same shall be, or caused to be, moved by the Authority: provided, that all expenses incurred by the Authority in performing such work, shall be paid by the vessel, without prejudice to the penalty imposed under these regulations. Vessel conducting unauthorized repair work on board shall be fined not exceeding one thousand pesos. (E.O. 513, November 16, 1978, amending P.D. 857) No vessel shall remain idle at berth for more than one (1) hour, if there are other vessels waiting to berth. Unless with the written permission of the Authority, no logs, or timber shall lie afloat unattended within the limits of any port/ port district/ harbor, except alongside a vessel loading such logs, lumber, or timber or within a properly constructed log enclosure approved by the Authority. No raft or logs or timber shall exceed 200 meters in length or 18 meters in breadth without the permission of the Authority. Any log or raft found adrift or beached within the limits of any port or port district or harbor, except in cases provided herein, may after proper notice, be impounded by the Authority for proper disposition. No vessel shall emit smoke, soot, ash, grit, or oil from the funnel or any part of the vessel in such quantity as to constitute a nuisance per accidents. “Nuisance per accidents” means a nuisance under certain circumstances like a factory emitting smoke in a residential district. No private buoy or mooring shall be laid or positioned in the waters in any port or port district/ harbor unless prior authority therefore is first secured. No steam whistle, siren, horn, or like instrument shall be used by any vessel in a port or port district other than as a signal of danger or for the purpose of giving warning for the vessel’s maneuver, or other legitimate cause. 6.12. Berthing Regulations A vessel shall be considered for berthing allocation only after the agent of said vessel has filed an application for berth. All applications for berthing in pier/wharf/anchorage shall be submitted 24 hours before arrival for vessel on scheduled runs and 36 hours for tramping vessels (vessel without fixed route or regular schedules). All applications received after the berthing meeting, shall be deliberated upon the following day before the actual arrival of the vessel. First come – first serve basis shall be the general rule in determining berthing priorities of vessels, subject to the exception provided. Vessel’s arrival will mean the time a vessel drops anchor at the anchorage area when there is no available area or the time the vessel reaches the Port’s Boarding Area when a berth is available. When the available berthing space is inadequate for berthing a larger vessel having the priority to berth, the smaller next in priority, which can be accommodated shall be allowed to berth on condition that should additional space be made available such that the larger vessel can already be accommodated, the smaller vessel shall be moved to the anchorage to allow the larger vessel to berth. When a vessel scheduled to berth encounters some mechanical troubles thereby restraining said vessel to dock, an allowance of one (1) hour shall be given for repairs. If after the lapse of this grace period, said vessel is still inoperative, the priority to berth shall be passed on to the vessel having the next priority to berth.

Vessel’s with berthing priority but is scheduled to depart the following day, shall be allowed to berth to allow passengers to disembark. Provided, however that said vessel shall pullout from berth to give way to passenger vessel scheduled to depart on the same day. Berthing of any vessel shall not be waived in favor of another vessel. Vessels waiting for cargoes shall be moved to anchorage to allow the next vessel to berth. However, said vessel shall be allowed to berth again, provided that cargoes for loading are ready, unless another vessel is allowed to take the berth temporarily by the Authority. The following vessels will be given berthing priority over other vessels: a. Government owned vessels on official business; b. Vessels of foreign government not engaged in foreign trade; c. Vessels under stress; and d. Vessels carrying perishable articles. e. Whenever practicable, passenger liner or tourist vessel shall, subject to the discretion of the Port Manager/ OIC, be given also priority on a limited number of hours stay at berth over purely cargo vessel. Domestic vessels may be allowed by the Authority to dock at berths designated for foreign vessels if there are no other vessels waiting to dock at such berths. Shutdown time caused by heavy rains and other major calamities or accidents, which will restrain work on a vessel, shall be excluded from the time limitation prescribed. However, breakdown of lifting gears and also loading of fresh water, bunkering and victual ling, which should be done simultaneously with cargo handling operations, shall not be considered as reason for time extension. CHAPTER 7 PRACTICAL APPLICATION CHAPTER 7: PRACTICAL APPLICATION 7.1 Boarding Formalities: South Harbor Manila Philippines After obtaining the Quarantine Certificate given by the Bureau of Quarantine, the vessel will make entry to the port of entry and prepared for the boarding formalities. The quarantine flag will be lowered and the master of the vessel will prepare all the documents that should be submitted to the customs boarding officials. The Bay Service Section upon receiving signal for boarding will wear their proper uniform. If they are not using their proper uniform or they are incomplete uniform, they are considered as absent. It consists of name plate, customs badge, black shoes and regulation cap. The customs boarding officials will ride in a shuttle to the destined place where they will go to conduct their boarding formalities. Boarding Team which is consisting of 1 Customs Senior Boarding officer, 1 Customs Inspector, 2 Customs Guard, Immigration officer, Plant Quarantine Representative, Animal Quarantine Representative and Asian Terminal Incorporation Supervisor will meet at the shipside as preparation for the boarding at the vessel. Raising of red and white flag means that the pilot is on board. The Customs guard will tie the knot at the bollard, install the rat guard and lay down the gangway for the customs official to go and start the boarding formalities. The pilot in command will go down the vessel as a sign that he is allowing the customs boarding officials to begin the boarding formalities. The boarding formalities are usually done at the master’s cabin wherein the authorized persons can only enter the place. After signing all the documents by the Customs Senior Boarding Officer, most especially the General Permit, he will allow the master of the vessel to unload their cargoes. In every document that the master of the vessel will produce, the Customs Inspector should have one of each document. Customs Inspector is in- charge in unloading of cargoes. The customs boarding officials may search the vessel’s identity to its registry. Before unloading the cargoes, unlashing of the containers should be done. Quay crane will be used for unloading the cargoes then ITV’s (Internal Transfer Vehicles) such as tractors and chassis will transfer the cargo from the vessel to the container yards. In some cases such as Direct to Private Truck, it is not necessary to be transported by the ITV’s. The ITV will transfer the cargo to a specified space allotted for it inside the container yard then the RTG is the one organizing the order of the container being put on top of each other. Upon the compliance with the customs procedure, the customs broker shall process the clearance of the cargo by representing the required documents such as Arrastre, Wharfage, Import entry, and etc. If the duties and taxes has been paid and clearances have been issued, cargoes may already be released from the customs zone. FLOWCHART: CARGO HANDLING PROCEDURES

CONTAINER FROM THE VESSEL

QUAY CRANE

TRUCKS (INTERNAL TRANSFER VEHICLES) TRUCK WITHOUT PLATES

CONTAINER YARD (FIRST STORAGE)

SCANNING

OUT OF THE PIER

First, the vessel will arrive at the port and a customs broker is needed to arrange papers. Then, by the use of Quay Cranes, the containers will be unloaded from the vessel. After unloading it from the Vessel, it will now being loaded to the trucks. The containers loaded to the truck will be unloaded to the Container yard. This is the time when the Customs Broker will process all documents. Then, the containers will be scan using the MOBILE X- RAY SCANNERS. Broker arranges release of goods. Then there will be release order. Release. 7.2 IMPORTED ARTICLES: “CARS ON DECK” Most people who’ve just made an order for a new car are caught up in the emotional roller coaster of awaiting the delivery of the new ride. All kinds of questions pop into your mind: Will it be handled well in transport? Will it be damaged as it travels from plant, to distributor, to dealer? These are just few of the many concerns, as most motorists don’t really know what goes on behind the scenes when you buy a new ride. We will show you one small part in the very long process of getting a brand-new car to its owner. If you ordered unit happens to be a CBU or “Completely built up” car, then in all probability, it will be rolling off a ship that is large enough to transport hundreds of units in one go. In addition to this, the said humungous ship will likely sail thousands of miles,

occasionally in rough seas, before it even gets to our shores. Now, driving a car off this ship may sound uncomplicated. Do remember, though, that the car will be driven off a ship that is floating on water, on a steel ramp just wide enough for one vehicle to pass. The water may be calm, or they may be very rough. In this process, the company responsible for getting your car to you is Asian Terminals Incorporated (ATI). This private entity is one of the arrastre operators tapped by the government (which still owns all the port areas) to manage the South Harbors Port, as well as the Port of Batangas and CALABARZON (Cavite, Laguna, Batangas, Rizal and Quezon). Formerly known as the Marina Port Services, ATI has been in operation since 1986. It is ATI’s job to make sure that your brandnew vehicle is safely unloaded from the ship to the port and ascertain that everything that is supposed to be in and your car is inside the vehicle. After this primarily check, a vehicle is moved to a storage area on the port before being turned over to the local distributor. Bear in mind that this process is repeated hundreds of times for every ship that arrives. “HANDLED WITH CARE” The South Harbor located in the Port of Manila (which used to reside at the mouth of the Pasig River during the pre-colonial period). South Harbor continues to be one of the country’s main trade and transportation hubs since the height of individualization during the American colonial period, we’ve arrived at Pier-13- the only sector in the South Harbor’s five fingered piers that takes on vehicular cargo, to see the entire process step by step. The main operations begin with units being driven off the ship individually. Drivers wearing overalls with identifying numbers to keep track of who drove which car off the ship in case a unit is found damage due to mishandling-skillfully maneuver each vehicle over the ramps. Extra care is exercised in handling the vehicles, so despite the heat inside of the cargo area, the drivers are required to wear soft gloves at all times to ensure that there will be no scratches on the interior before the cars gets to its owner. It is interesting to note that since 2005; only one incident of a vehicle being damaged has been reported. It is essential that the ship is unloaded quickly for it to be on time for its next shipping run. In most cases, the ship cannot stay for more than 24 hours at the port. Now, imagine unloading 450 cars in that short period of time, and you will get an idea of how necessary it is to move quickly. Checking the movement of units without delaying the process and making the unloaded vehicles follow the correct specification as per the list that comes with each unit is complicated. This requires a balance of both precise tracking and speedy unloading. The ATI drivers will not just drive a car off the vessel; they also have to line them up in order to make efficient use of the limited parking space available at South Harbor. One mistake in the process could potentially turn into a logistical nightmare. “TUCKED SAFELY AWAY” All vehicles are then locked once they are lined up on the dock. Making sure that the keys are not lost is another challenge so for every line of cars the keys are put together in a chain so they’re not mixed up with the keys of the units from another line. After unloading the vehicles from the ship, the process of placing them in storage before the distributors retrieve them is the next challenge. Despite the protective coatings (adhesive strips on the roof, hood and fenders, plus the plastic covers for the rims) the cars have to be shielded from the very rough conditions at the port in particular the sea air, which is conductive for corrosion; the harsh sun; and the pollutant – loaded rain, with sheer number of vehicles; this is not a simple task. There are warehouses used for storage, but sometimes, these are already filled to capacity and some vehicles are left exposed to the elements, but there is no need to fret: ATI uses large rolls of Ultra-Violet (UV) protective net made in South Africa. The net stretch over the long lines of cars in the parking area, intentionally laid out at different heights to improve ventilation. It’s very surprising for us to experience just how much heat and UV rays are reduced by this protective covering. The difference between being in direct sunlight and under the net protected area is very substantial. It had better be since a square meter costs over P4, 000. There is no storage charge for the units first five days at the ATI facility. After that, a daily fee is charged to the vehicle distributor, which in the end, the new car buyers will end up paying for. One particular distributor is known to have vehicle stored at the port for 20 days, because it doesn’t have a permanent storage facility. So, there you have it, a short but vital step in what goes on before the vehicle is delivered to its respective dealership. 7.3 JURISPRUDENCE: [G.R. No. 171406, April 04, 2011] ASIAN TERMINALS, INC., PETITIONER, VS. MALAYAN INSURANCE, CO., INC., RESPONDENT. FACTS: On July 23, 1994, Petrosul International (Petrosul) shipped on board the vessel “MV Hoegh Merchant” (MV Hoegh) from Vancouver, Canada yellow crude sulphur “said to weigh 6,599.23 metric tons as per draft survey” for transportation to Manila, consigned to LMG Chemicals Corporation (LMG).

Upon arrival of the MV Hoegh in Manila on September 5, 1994, the stevedores of respondent Asian Terminals, Inc. (ATI) undertook discharging operations of the shipment or cargo from the vessel directly onto the steel barges of Creed Customs Brokerage, Inc. (CCBI), which barges were later towed upriver and arrived at the consignee LMG’s storage area in Pasig, Manila. The consignee’s hired workers thereupon received and unloaded the cargo with the use of an overhead crane and clamshell grab. During the discharge of the cargo “ex vessel” onto CCBI’s barges, SMS Average Surveyors and Adjusters, Inc. (SMS), LMG’s appointed surveyors, reported the Outturn Quantity/Weight of the cargo at 6,247.199 Metric Tons (MT),hence, given that as indicated in the Bill of Lading the weight was 6,599.23 MT, there was a shortage of 352.031 MT. Once on board the barges, the weight of the cargo was again taken and recorded at 6,122.023 MT, thus reflecting a shortage of 477.207 MT. The weight of the cargo, taken a third time upon discharge at LMG’s storage area, was recorded at 6,206.748 MT to thus reflect a shortage of 392.482 MT. The cargo having been insured, LMG filed a claim for the value of shortage of cargo with its insurer Malayan Insurance Co., Inc., (petitioner) which paid LMG the sum of P1, 144,108.43 in February 1995 and was accordingly subrogated to the rights of LMG. ISSUES: • Is the subrogation of Malayan Insurance Co., Inc., valid? • Is Jardine Davies really is the ship agent of the vessel MV Hoegh Merchant? • Is the Asian Terminals Inc. liable for the loss? HELD: The subrogation of Malayan Insurance is not valid because its marine insurance policy explicitly states under its effectivity clause that it shall cover “all shipments effective January 10, 1993 sailings and all shipments made thereafter until December 31, 1993 sailings.” Coverage had, therefore, expired almost seven (7) months prior to the loading of the shipment on July 23, 1994. Petitioner also failed to prove that respondent Jardine Davies was the local ship agent of the MV Hoegh given that such vessel was sub-chartered by LMG’s shipper Petrosul from Jardine Davies’ principal Pacific Commerce Line (PCL), thereby making Petrosul the carrier which undertook to transport LMG’s cargo. The appellate court thus concluded that liability could not be imputed to Jardine Davies, its principal PCL not being the carrier of the cargo and no privities of contract existed between it (Jardine Davies) and Petrosul. ATI was never in custody or possession of the shipment, its participation having been limited to where “the stevedores of Asian Terminals, Inc. (ATI) undertook the discharging operations of the shipment ex vessel to barges thru the use of vessel’s cargo gears, and clamshell/ grab,” a fact confirmed by petitioner’s own witness Eutiquiano Patiag. More importantly, representatives of SMS, the consignee’s assigned surveyors, were present throughout the entire discharging operations from the time the cargo was unloaded from the MV Hoegh until its discharge at LMG’s chemical terminal and never reported any mishap or incidence of mishandling on the part of ATI. The Court of Appeals Decision in connection with this case is AFFIRMED. Costs against petitioner. Appendix 1: Customs Administrative Order No. 1-93 SUBJECT: AMENDMENT TO CUSTOMS ADM. ORDER NO. 4-82 By authority of Section 609 of the Tariff and Customs Code of the Philippines as amended in relation to Sections 1005 to 1008 of the same Code, and in line with the administrative and operational reforms currently being pursued. Paragraph 11 (C) of Customs Administrative Order 4-82 is hereby amended to read as follows: A.

DISTRIBUTION OF THE INWARD FOREIGN MANIFEST

1. The master/agent of the vessel must submit the manifests in four (4) copies, one of which shall be retained by the Customs Inspector on board, to be returned duly signed by the said Inspector to the master of the vessel upon the ship’s departure. 2. Upon receipt of the manifests from the ship’s master/agent the Customs inspector shall immediately send three (3) copies to the PID Manifest Section. These manifests must be received at the PID within one (1) hour after the completion of the boarding formalities. 3. The three (4) copies of the manifest of the above-mentioned shall be distributed as follows:

a. Entry Processing Division/Data b. Monitoring Division/Unit c. Resident Auditor, BOC d. Collector of Customs 4. In addition to the inward foreign cargo manifest submitted by the ship’s master to the Customs inspector on board, the same information as therein contained shall henceforth be submitted by all shipping lines to the Data Monitoring Division/Unit in diskette media following the International Standard ISO alpha-2 country code, ISO 2014 for writing of dates of the Gregorian calendar in all numeric form (YYYYMMDD) and technical specifications. 5. All other outside government agencies entitled to the information contained in the inward foreign cargo manifest shall be provided with a copy of the diskette by the Bureau of Customs in lieu of hard copy. 6. Amendment to the inward foreign manifest pursuant to this CAO must be submitted in four (4) hard copies and distributed as in No. 3 and 4 above. Any Customs memorandum order or issuance contradictory or inconsistent with this Order is hereby deemed revoked or modified accordingly. This Order shall take effect on the first working day of February 1993. (SGD) GUILLERMO L. PARAYNO, JR. Commissioner Approved: (SGD) RAMON DEL ROSARIO, JR. Secretary of Finance January 20, 1993 Appendix 2: Customs Memorandum Order 12-2004 CMO NO. 12-2004 TO

:

All District Collectors Service/ Division Chiefs All Shipping Lines All Importers/Brokers, and All Others Concerned SUBJECT : Modification of rules and regulation on the Amendment of Inward Foreign Manifest Pursuant to Section 608 of the Tariff and Customs Code, the current rules and regulations concerning the amendment of Inward foreign Manifest for all cargoes into a port by a vessel coming from a foreign port, are hereby modified accordingly, as follows: I.OBJECTIVES: A. To make available to the different offices of the Bureau the most accurate data and information concerning vessel and its cargo; B. To simply and clarify the procedure in the amendment of the Inward Foreign Manifest. C. To further facilitate trade and at the same time provide adequate security to government revenue. II. OPERATIONAL PROVISIONS: A. Request for amendment, in accordance with the second paragraph of Section 1005 of the TCCP, of the original Inward Foreign Manifest (IFM) involving the change in the following: Consignee; nature; description; quality; volume; weight; weight and/or measurement of goods; and country of exportation must be made under oath and thus subject to the penalties of falsification or perjury should be amendment/s requested are later proven to be false and incorrect. Further, such request/s must be accompanied by a written justification indicating the reason/s for the change/s being asked. B. After submission of the requirements pursuant to section 1004 of the TCCP, no amendment shall be allowed unless under oath identifying therein the subject to be amended and the reasons thereat together with the following certifications: a. Certification from the Chief, Entry Processing Division concerned that the shipment is not overstaying/ abandoned. b. Certification from the Customs Intelligence & Investigation Service (CIIS) and enforcement & Security Service (ESS) that the shipment is not the subject to an Alert/Hold Order. c. Certification from the Law Division that shipment is not the subject of any pending litigation covered by Warrant of

seizure and detention. C. If the amendments/s of the original IFM is meritorious and such fact can be supported by sufficient proof/s and after a careful and logical evaluation of the reason/s presented justifies the change/s as requested, the District Collector shall give his written approval thereto. D. All amendment/s of the original OIFM duly approved by the District Collector should be cleared by the Office of the Commissioner, before it could take effect in the Ports of POM and MICP. In all other Ports, to avoid unnecessary delay in the release of shipment may be released upon the written approval of the District Collector of Customs however all such approved amendments and the reasons thereto, must be reported to the Commissioner on a weekly basis under tentative liquidation pending clearance from the Office of the Commissioner, except in the Port of Manila and Manila International Container Port. E. The BOC must maintain an official log of all requests for amendment/s of the IBM. Likewise hard copies of such request as well as all supporting documents should be made available to the enforcement agencies of the BOC as well as other antismuggling offices/ agencies upon demand thereof. III. REPEALING CLAUSE: All customs memoranda orders or issuances contrary to the provisions and intent of this Order are hereby deemed revoked or modified accordingly. IV. EFFECTIVITY: This order shall take effect immediately. ANTONIO M. BERNARDO Commissioner Appendix 3: Customs Memorandum Order 11-2005 CMO 11-2005 March 4, 2005 TO

:

SUBJECT

:

All District Collectors Service/ Division Chiefs All Shipping Lines All Importers/Brokers, and All Others Concerned

Amending Section 2.4 of Customs Memorandum Order (CMO) no. 12-2004 entitled MODIFICATION OF RULES AND REGULATIONS ON THE AMENDMENT OF INWARD FOREIGN MANIFEST (IFM) Pursuant to Section 608 of the Tariff and Customs Code of the Philippines; as amended, Section 2.4 of CMO 12-2004 is hereby amended to read as follows: “2.4. All ports are required to submit weekly reports of amendments to the original IFM duly approved by the District/Port Collector of Customs to the Office of the Commissioner.” Henceforth, amendment/s to the IFM shall no longer require clearance with Office of the Commissioner. This Order takes effect immediately and all other orders, memoranda or issuances contrary to this Order are hereby deemed revoked or modified accordingly.

ALBERTO D. LINA Commissioner

Glossary of Terms Ballast - heavy cargo, which loaded on board a vessel or aircraft merely for the purpose of making it steady, to enable it

to navigate in the event of scarcity of other cargo. When not brought to port as article, ballast of no commercial value may be discharged upon permit granted by the Collector of Customs for such purpose. Berth- the part of the pier/wharf that is occupied by a vessel, or any place in which a vessel may lie at anchor or at a dock. Bill of Lading- is a transport document for ocean freight issued for shipping lines, carriers an International Freight Forwarders or Non Vessel Operating Common Carrier. Break-bulk – non-containerized cargo which is a grouped or consolidated for shipment and broken down or subdivided Into Unitized Cargo, such as in Pallets, or Packed in Bags or Boxes. Bulk- liquid or dry goods shipped in bulk, not packed or bundied in separate unites. Include commodities that are loose or in mass and require be pumping, shoveling, scooping, grabbing or forking during loading or unloading. Cargo Manifest- is a declaration of the entire cargo, the object of which is to furnish the customs officers with a list to check against, to inform our revenue officers, what goods are being brought into the country, and provide a safeguard against goods being brought into this country on a vessel and then smuggled ashore. In Maritime Law, it is a record or statement in writing carried by a vessel, containing information with respect to the vessel’s cargo, passengers and other matters required by statute or regulations. Coastwise Ports- are such domestic ports as are open to coastwise trade only. These include all ports, harbors, and places not port of entry. Containerized Cargo- cargo stuffed inside a container van with the external dimensions and ratings enumerated in series 1 of ISO 668-1976 which are specially designated to facilitate ready handling particular their transfer from one mode of transport to another without intermediate reloading. Devanning-

transfer

of

cargo

from

one

container

to

another

container.

Foreign Trade- it is the commercial interchange of commodities between different countries; export and import trade. It is synonymous with the term “foreign commerce,” which is the trade between individuals or legal entities in different countries. Less Container Load- a container loaded with cargoes belonging to more than one consignee and/or covered by more than one bill of lading. Non-Vessel Operating Common Carrier (NVOCC) – means a person, including an international freight forwarder, providing point-to-point international transport of shipments without operating or owing the means of transport or equipment. An NVOCC deals with the shipper and issues its own transport document (e. g. B/L or AWB) even though it commonly subcontracts the different stages of transport to vessel, aircraft, and truck operators. Port of Entry- is a domestic port open to both foreign and coastwise trade. The term includes principal ports of entry and subports of entry. A “principal port of entry is the chief port of entry of the collection district”. Pratique- is a permission granted by quarantine officials to a vessel or aircraft to hold intercourse with the port after the ship or aircraft has complied with port regulations. Quay- a landing place or pier, usually of solid construction, where vessels berth to load or unload cargo. Regular Shipside Permit- required for all cargoes, which belong to the categories of regular shipside cargoes under the existing regulations. Saloon Stores- supplies listed as such which are intended for sale on board a vessel or aircraft. Ship’s Stores- consist of spare equipments such as chains, anchor and the likes, necessary for the safe navigation of ship.

Shifting of Cargoes- transferring of cargoes from vessel to vessel and vessel to dock, dock to vessel, hatch-to-hatch, and bay-to-bay. Sea Stores- articles specially foodstuff, such as food, wine, cigarettes, for use or consumption only of the passengers and crew on board the vessel or aircraft upon its voyage. Shipside Permit- authority issued by the Collector of Customs or his/her authorized representative for the Customs Inspector assigned on a vessel to allow the discharge of cargoes specified on the permit at shipside unto lighters, under guard. Stripping-

unloading

of

all

goods

or

cargoes

from

a

container.

Special Shipside Permit- when cargoes do not belong to the regular shipside cargoes, the broker and/or consignee has to get the authority from the Collector of Customs prior to the processing and approval by the Entry Processing Division. Stuffingfiling a container with goods or cargoes. Temporary Shipside Permit- is a written authority to discharged cargoes at shipside unto lighter as per order of the Collector of Customs. Vessels- include every sort of boat, craft or other artificial contrivance used or capable of being used a means of transportation on water. Transshipment- means the Customs procedure under which goods are transferred under Customs control from the importing means of transport to the exporting means of transport within the area of one Customs office which is the office of both importation and exportation.