Philippine Ports Authority

Internal Audit Department

Foreign
-Vessel Charges and Cargoes Charges
PMO __________________
Audit Period _________________
Auditor: ____________________________

Audit Criteria Questions Yes No Auditor’s Findings

REQUIREMENTS
PPA Memorandum Circular 13-2002
Reduction of Documentary
Requirements for Arrival and Departure
Clearance for Domestic and for Domestic
and Foreign Vessels

Pursuant to DOTC Memorandum Order No.

2001-40 dated 20 September 2001 and in
compliance with Presidential Instructions
dated 25 September 2001 relative to the
reduction of red tape, bottlenecks and graft
and corruption the number of documentary
requirements for the arrival and departure
clearance of domestics and foreign vessels
shall be reduces and standardized. For this
purpose, the following guidelines are
hereby, issued for compliance.

1.2 For Foreign Vessels

1.2.1 For Arrival Clearance
a. Inward Foreign Manifest
b. Dangerous Cargo Manifest
(when applicable)
c. Passenger Manifest (when
applicable)
d. Application for Berth/Anchorage
1.2.2 For Departure Clearance
a. Outward Foreign Manifest
b. Passenger Manifest (when
applicable)
c. Official Receipt/s of Payment of

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 Audit Criteria Questions Yes No Auditor’s Findings
Port Charges

2. All vessels on maiden call shall in

addition to the foregoing documents, be
required to submit for such first call only the
following: Vessel Information Sheet,
Certificate of Inspection (for domestic) and
International Tonnage Certificate (for foreign
vessels)
VESSEL Secure copy of the following: Resource Personnel:
Port Dues/Dockage  Dockage Report of the Sampled
Population (vessel)
 NOA/ABA
 Official Receipt and Computation
Sheet

To Do:
Working paper per IAD computation
against PMO collected charges

Reference:PPA Site
Charges on Vessels

1. Vessels engaged in foreign trade,

including in barter trade, that enter any
port, whether private or government,
shall be charged PORT DUES on each
call based on GRT, as follows:
US$ 0.81
2. Vessel engaged in foreign trade,
including those engaged in barter
trade, that berth at any port of call shall
also be charged DOCKAGE at BERTH
per GRT per calendar day or fraction
thereof, as follows, provided that, for
purposes of computation, a maximum
of 50,000 GRT shall be used:

At Government Port US$ 0.81

At a Private Port US$ 0.20

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 Audit Criteria Questions Yes No Auditor’s Findings
officially registered
with PPA

3. Vessels engaged in foreign trade that

do not berth but drop anchor at either
government or privately-owned port of
call shall be charged DOCKAGE at
BERTH per GRT per calendar day or
fraction thereof, as follows, provided
that, for purposes of computation, a
maximum 50,000 GRT as follows:
US$ 0.20
4. Pursuant to the terms of the BIMP-
EAGA program shall be entitled to the
following special port charges against
vessels carrying the flag of Indonesia,
Brunei and the Philippines which are
accredited to operate under the BIMP-
EAGA program shall be entitled to the
following special port against vessels:

PORT DUES US$ 0.40 per GRT

DOCKAGE US$ 0.20 per GRT

day or fraction
thereof

8. Idle vessel occupying dockside berth at

any government port despite a shifting order
from the Port Manager or his authorized
representative to give way to an incoming
operating vessel, shall be assessed a
charge of 300% of applicable DOCKAGE
FEE for FOREIGN VESSELS and 500% of
applicable Domestic Dockage Fee(Usage
Fee)for Domestic vessels, provided that the
payment of such assessed fees shall be
made by the owners, agents or
representatives prior to actual departure
from berth.

9. Vessel occupying dockside berth at any

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 Audit Criteria Questions Yes No Auditor’s Findings
government port, but are subject of a
restraining order, injunction, writ of
attached, and other similar orders by a
competent court or authority shall be
assessed a charge of 600% of the
applicable DOCKAGE for foreign vessels
and 1000% of the applicable Domestic
Dockage Fee(Usage Fee) for domestic
vessels; provided, that the payment of such
assessed fees shall be made by the party
granted the favorable judgement or order,
and, provided further, that the same is made
immediately after the court or competent
authority’s decision.
PILOTAGE Secure copy of the following: Resource Personnel:
 Certificate of Services Rendered
(CSR) if it not direct charging
 Official Receipt and Computation
Sheet

To Do:
Working paper per IAD computation
against PMO collected charges
PPA Administrative Order 04-2003
Guidelines on the Pilotage Services To
Be Rendered In All Ports And The
Corresponding Fees Therefor

2. Required Pilotage Services for Entering

and Leaving the Port (pages 3-13)

5. Applicable Pilotage Rate

5.1.2 For Coastwise Vessel

For Foreign Vessels Rate in US$ or

its Peso
Equivalent
Less than 500 GRT $ 30.00
500 GRT to 2,500 GRT 43.33
2,500 GRT to 5,000 GRT 71.33

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 Audit Criteria Questions Yes No Auditor’s Findings
5,000 GRT to 10,000 GRT 133.67
10,000 GRT to 15,000 GRT 181.67
15,000 GRT to 20,000GRT 247.00
20,000GRT to 30,000 GRT 300.00
30,000 GRT to 40,000 GRT 416.00
40,000 GRT to 60,000 GRT 483.00
60,000 GRT to 80,000 GRT 550.00
80,000 GRT to 100,000 GRT 616.67
100,000 GRT to 120,000 GRT 666.67
120,000 GRT to 130,000 GRT 716.67
130,000 GRT to 140,000 GRT 766.67
Over 140,000 GRT $0.05 or its peso equivalent for
to every excess tonnage

5.2 There shall be one fee for either

docking or mooring or anchoring and
another fee for either undocking or
unmooring or leaving anchorage.

5.3 There shall be a uniform fee of 100% of

the EO 1088 rates for each of the special
services listed in Section 3 hereof and as
requested by the Master of the vessel of
ship’s agent

Section 3 Special Services

Shifting
Bow-out Docking
Ship to ship Docking / Undocking
Dead Ship Docking / Undocking or Mooring
/Unmooring
Meeting vessel at a point other than the Pilot’s
Boarding Station/Quarantine Anchorage except
in Aparri where this is a regular service
Conduction of vessel provided the distance is
not less than five (5) nautical miles
Unwristing
Mediterranean Mooring/Docking
Channeling In / Channeling Out

6. Payment of Pilotage Service Fee. Xxx

6.3 Pilotage service rendered on Sunday,

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 Audit Criteria Questions Yes No Auditor’s Findings
holiday or between 1800H to 600H, a
premium fee of one hundred over the
regular pilotage fees for vessels engaged in
foreign trade and fifty (50%) percent for
coastwise vessels. However, no premium
fee shall be considered for service rendered
after 18ooH if it shall be proven that the
service can be completed before such hour,
after the one (1) hour grace period has
expired.

The additional premium fee for Sunday,

holiday or night service shall be based on
only one (1) regular service fee regardless
of how many movements have been
rendered to the vessel, whether regular or
special. For uniformity of implementation
attached as Annexes showing the sample
computations Annex 1 for a foreign vessel
with pilotage service and premium, Annex 2
for domestic vessel and Annex 3 for
pilotage service rendered on Sunday and
nighttime.
Line Handling

Basis CH Approved Tariff

Lay-up Vessels
PPA Administrative Order No. 04-90
Addendum to PPA No. 07-89 Entitled
“Designation of Lay-up Areas of Vessels
for PMOs”
PPA Administration Order 01-2009
Authorizing PPA to Designate and
Administer Lay-up Areas for Foreign
Vessels in PPA Ports

2nd Paragraph

The PPA Board, in its BoardCom Resolution

No. 2009-1169, confirmed PPA’s function
and responsibility of designating lay-up
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 Audit Criteria Questions Yes No Auditor’s Findings
areas for foreign vessels in the different
ports administered by PPA, approved the
fixing and imposition of a nominal lay-up fee
of US$91.00 per day per foreign vessel
regardless of size and directed that
coordination be administrative requirements
relative to the entry, lay-up and departure of
vessel and crew up to and from Philippines
ports.
PPA Memorandum Circular No. 11-2009
Guidelines for Foreign Vessels Intending
to Lay-up in the Different PPA
Administered Ports

3. Definition of Terms
3.1 Laid-up vessels – Vessels which have
been decommissioned or otherwise
unemployed and idle while waiting for
better business prospects for their
operations.
3.2 Lay-up areas- The areas designated by
PPA for vessels that are laid-up. These
are identified by the corresponding
coordinates in latitudes and longitudes

4. General Provisions
4.1 Designated Lay-up Areas- The lay-up
areas duly designated by PPA in the
different ports under its jurisdiction
shall be used as lay-up areas for
foreign and domestic vessels.

5. Specific Guidelines
5.7 Payment of Lay-up Fee

A nominal lay-up fee of US$91.00 (plus

VAT) per day per foreign vessel regardless
of size, shall be charged by the Authority.
The authorized lay-up agent shall pay the
lay-up fee on a monthly basis payable on
the 5th day of the succeeding month. Failure
of the lay-up agent to pay the lay-up fee on
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 Audit Criteria Questions Yes No Auditor’s Findings
the time shall subject to interests and
penalties in accordance with the existing
regulations of PPA.

For payment in Philippine Peso

denomination, the Foreign Currency
Exchange Rate (FCER) issued by the
Commercial Services Department. PPA
head Office (based on the 15-day average
of the prescribed Bangko Sentral ng
Pilipinas FCER) prevailing at the time of the
issuance of invoice shall be used in
determining the peso-value of dollar
denominated port due PPA.

5.8 Other PPA Charges

Aside from the lay-up rate, the following

PPA charges shall likewise be collected.

5.8.1 Upon vessels arrival, port dues of

US$0.081 per GRT per call shall be
collected. This is the amount
assessed against a vessel engaged
in foreign trade based on its total
GRT or part thereof, including those
engaged in barter trade for each
entrance into and departure from a
port of entry in the Philippines.
5.8.2 An anchorage fee of US$0.020 per
GRT per calendar day or fraction
thereof shall also be collected upon
arrival of the vessel. This is the
amount assessed against a vessel
engaged against a vessel engaged
in trade, including those engaged in
barter trade, that do not berth but
drop anchor at government port
while waiting completion of
documents processed for lay-up.
5.8.3 Upon vessel’s departure, an
anchorage fee of US$0.020 per
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 Audit Criteria Questions Yes No Auditor’s Findings
GRT per calendar day or fraction
thereof shall be collected. This is
the amount assessed against a
vessel engaged in international or
foreign trade, including those
engaged in the international or
foreign trade, including those
engaged in barter trade, that do not
berth but drop anchor at
government port while waiting
completion of documents processed
for vessel’s departure at the
anchorage area.

EXCEPTION
From Port Charges
Reference: PPA Website
1. Notwithstanding the above
provisions of duly BOI-registered
firms as well as those granted
special exemptions by law enacted
or decreed after January 1976 shall
be exempted from payment of port
charges until otherwise revoked or
amended.
2. Vessels for drydocking or repair at
any duly authorized drydocking
shipyard facilities shall be exempted
from dockage/usage fees from the
time it calls at a shipyard facility up
to the time the drydocking or
repair is completed.
3. Vessels (foreign or
domestic)certified for
shipbreaking at the duly accredited
shipbreaking yard shall be
exempted from all vessel charges.
Scraps resulting from the
shipbreaking of foreign vessels
which are re-exported or sold
locally shall be exempted from
wharfage. Scraps resulting from

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 Audit Criteria Questions Yes No Auditor’s Findings
the shipbreaking of domestic
vessels shall likewise be exempted
from wharfage.
4. Vessels in distress or those
calling at any port for
humanitarian reasons shall be
also be exempted from all vessels
charges.
5. Donations from international or
local organizations duly
authorized or registered by the
DSWD or the Office of the
President shall be exempted from
wharfage and storage charges
provided there is evidence that the
same is requested for
release/delivery within seven (7)
days from notice of arrival.
6. Foreign naval and other state not
engaged in commercial shopping
services shall be exempted from
payment of all vessel charges in the
foreign government owning such
vessels also grant reciprocal
privileges to vessels owned by the
Philippine government which are
similarly situated.
CARGOES Secure copy of the following: Resource Personnel:
Wharfage  CargoManifest of the Sampled
Population (vessel)
 Bill of Lading of the Sampled
Population (vessel)
 Official Receipt and Computation
Sheet
 Discharging/Loading Tally Sheet

To Do:
Working paper per IAD computation
against PMO collected charges
PPA Memorandum Order 09-83
Guideline in the Collection of Wharfage
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 Audit Criteria Questions Yes No Auditor’s Findings
Dues on Domestic Cargo and
Government Share on Arrastre Income

Section 3. Definition of Terms-

1. “Direct Collection” – A system
whereby PPA directly bills and
collects whafage dues and
government share on arrastre
income from shiippers/ consignees.

Reference :(PPA WEB SITE)

Charges on Cargoes
1. All non-containerized foreign
cargoes coming in (imported), going
out (exported) or transshipped
through a government-owned wharf
shall be charged WHARFAGE for
the use of port facilities on the basis
of the total metric or revenue
tonnage whichever is applicable,
rounded off to the nearest ton, as
follows:

If IMPORTED
A Cargoes in Sack/Bag/Bulk/Uncrated Live 36.65
Animals/Steel Products and Lumber/Heavy
Lift per metric Ton
B Others Per Revenue Ton 30.55
If EXPORTED
A Cargoes in Sack/Bag/Bulk/Uncrated Live 18.35
Animals/Steel Products and Lumber/Heavy
Lift per metric Ton
B Others Per Revenue Ton 15.25
Foreign Transhipment
A single charge per metric or revenue ton payable by shipping
agent

A Cargoes in Sack/Bag/Bulk/Uncrated Live USD

Animals/Steel Products and Lumber/Heavy 0.833
Lift per metric Ton
B Others Per Revenue Ton USD
0.694

2. All containerized foreign cargoes

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 Audit Criteria Questions Yes No Auditor’s Findings
(FCL or LCL singles ) shall be
charges WHARFAGE per box as
follows:

Provided, that if cargoes in a box

are owned by more than one (1)
shipper/consignee, that is LCL
containers, the WHARFAGE for
non-containerized cargoes shall
apply; and PROVIDED FURTHER
that NO WHARFAGE shall be
charged on empty containers i.e
without contents of any sort.

If Imported
20 ft 519.35
35 ft 656.85
40 ft 779.05
45 ft 916.50
If Exported
20 ft 259.70
35 ft 329.95
40 ft 391.05
45 ft 458.25
Foreign Transhipment
Per TEU USD 1.00

3. All non-containerized domestic

cargoes shall be charged
WHARFAGE as they enter or leave
a government-owned wharf on the
basis of their total revenue or metric
tonnage rounded off to the nearest
ton, as follows:

3.1 (last paragraph)

The WHAFAGE for all
foreign and domestic
cargoes whether
containerized or not that are

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 Audit Criteria Questions Yes No Auditor’s Findings
loaded or discharged from a
vessel at ancho without using
any government wharf or at an
officially registered private port
whether exclusively or
commercially, shall be one-
half (1/2) of the
corresponding charge a
government-owned port.

Arrastre & Stevedoring Secure copy of the following:

 CargoManifest of the Sampled
Population (vessel)
 Bill of Lading of the Sampled
Population (vessel)
 Official Receipt and Computation
Sheet
 PMO’s CH Approved Tariff Rate
 Monthly Gross Income Report
(MGIR) request breakdown for
other Income

To Do:
Working paper per IAD computation
against PMO collected charges
PPA MC 37-2002
Guidelines in the Collection of Port
Charges and Cargo Handling Charges
for Domestic Operations
4.7 Modified Cash and Carry System
4.7.2 Wharfage, arrastre and stevedoring
charges and storage fees for the
Modified Cash and Carry System
shall be paid by the
Shipper/Consignee’s Liner
Representative following the
process flow for Inbound Xxx…
4.7.6 Post Billing
4.7.6.1 PPA shall reconcile the
payment against the Bill of
lading, Final Manifest and any
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 Audit Criteria Questions Yes No Auditor’s Findings
other container inventory
record and shall issued a Bill of
Charge (Annex 12) for any
underpayment or Confirmation
notice if payment is in order
(Annex 13), not later than 30
calendar days from the date of
departure of the vessel.
4.7.6.2 Shipper/Consignee’s Liner
Representative shall pay within
calendar days from receipt of
the Bill of Charge

5. Operating Guidelines Common to all

Prescribed Collection Systems
5.1 Usage Fee
5.1.1. Usage fee shall be paid by the
Shipping line prior to the
approval of the departure
clearance of the vessel based
on the Dockage Report Xxx..
5.1.2. In case of delay in the
departure of the vessel, the
additional usage fees shall be
paid by the shipping Line prior
to the approval of the extended
departure clearance based on
the Dockage Report.
5.2 Storage
5.2.1. Storage fee for inbound cargo
shall be collected prior to the
approval of the Gate
Pass/Equipment Interchange
Receipt (EIR) or any similar
document before its release from
the pier.
5.2.2 Storage fee for outbound cargo
shall be billed by PPA to the
Shipping Line based on the Bill
of Lading and/or Final Outward
Coasting Manifest within one
calendar day after departure of

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 Audit Criteria Questions Yes No Auditor’s Findings
the carrying vessel. Payment
shall be made within three
calendar days after departure of
the carrying vessel.
5.2.3 Storage fees for empty containers
is chargeable against the
Shipping Line.(*** CHARGES)
5.3 Stripping or stuffing Charges,
Stand-By Time, Line Handling and
Other Cargo Handling and Port
Related Services
5.3.2 Container rates shall not apply to
containers that are stripped or stuffed at
the pier/wharf/terminal inside the port,
instead, the regular or existing arrastre
charges shall be applied against the
cargo (contents)
Take note of the CH approved tariff
rate applied to stripping/stuffing

5.7 Accountable Forms

5.7.1 The following documents are
accountable forms should be pre-numbered
5.7.1.1. Computation Sheet (CS)
5.7.1.2. Discharging/Loading Tally Sheet
(DLTS)
5.7.1.3. Summary of Port Charges (SOPC)
5.7.1.4 Bill of Charges (BOC)
5.7.1.5. Credit Memo (CM)

5.2 The Cargo Handling Operator (CHO)

shall distribute within two calendar days
from the date of vessel departure the
accomplished Discharging/Tally Sheet…

Reference: PPA website

Charges in Storage
1. STORAGE shall be charged on
cargoes that remain in any
government-owned port beyond the
“free-storage period” (FSP). The
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 Audit Criteria Questions Yes No Auditor’s Findings
said period is defined for all types of
cargoes as follows:

For Foreign Cargo:

For Imported Five (5) calendar days after

Cargoes the day that the last item of
cargo is discharged from
the carrying vessel.
For Export Cargoes Four (4) calendar days
from the day that the cargo
is received at the port
For Foreign A total of fifteen (15)
Transshipment calendar days from the day
of arrival to the day of
departure
PROVIDED that if the cargo is not loaded
as scheduled the resulting fee shall be paid
by whoever is at fault.

2. STORAGE for non-containerized

cargoes shall be determined on the
basis of the number of the calendar
days that the cargo stays in the pot
the “free-storage period” and the
total revenue tonnage of the cargo
according to the following schedule
per revenue ton per day or fraction:

Imported Cargoes ₱ 7.50

Cargoes for Export 3.75
Foreign Transshipment $0.171

3. STORAGE of a container whether

or not it contains cargo shall be
determined on the basis of calendar
days the cargo stays in the port
after the prescribed
free-storage period”

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 Audit Criteria Questions Yes No Auditor’s Findings

NEW STORAGE CHARGES AFTER FREE

STORAGE PERIOD (FSP) OF FIVE (5) DAYS IN
PHP (₱)
6th - 11th - 16th - 21tst - 26th - 31st
Impor 10th 15th 20th 25th 30th day
ted day day day day and
Box beyo
nd
20 481.3 529.4 577.5 625.6 673.8 721.9
footer 0 3 6 9 2 5
35 842.2 926.4 1,010 1,094 1,179 1,263
footer 0 2 .64 .86 .08 .30
40 962.6 1,058 1,155 1,251 1,347 1,443
footer 0 .86 .12 .38 .64 .90
45 1,082 1,191 1,299 1,407 1,516 1,624
footer .90 .19 .48 .77 .06 .35

NEW STORAGE CHARGES AFTER FREE STORAGE

PERIOD (FSP) OF FOUR (4) DAYS IN PHP (₱)
5th 7th 12th 17th 22nd 27th 32nd
- - - - - - day
Exp 6th 11th 16th 21st 26st 31st and
orte day day day day day day bey
d ond
Box
20 60.1 120. 132. 144. 156. 168. 180.
foot 5 30 33 36 39 42 45
er
35 105. 210. 231. 252. 273. 294. 315.
foot 30 60 66 12 78 84 90
er
40 120. 240. 264. 288. 312. 336. 360.
foot 30 60 66 72 78 84 90
er
45 134. 268. 295. 322. 394. 376. 403.
foot 40 80 68 56 44 32 20
er

NEW STORAGE CHARGES AFTER FREE

STORAGE PERIOD (FSP) OF FIFTEEN (15) DAYS
IN PHP (₱)
16th 21th - 26th - 31tst - 66th - 41st
Trans - 25th 30th 35th 40th day
shipp 20th day day day day
and
ed day beyo
Box nd

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 Audit Criteria Questions Yes No Auditor’s Findings
20 10.94 12.03 13.13 14.22 15.32 16.41
footer
35 19.14 21.05 22.97 24.88 26.80 28.71
footer
40 21.88 24.07 26.26 28.44 30.63 32.82
footer
45 24.44 26.88 29.33 31.77 34.22 36.66
footer

4. The PPA Board of Directors shall

have the power to adjust or
suspend the “free-storage period”
and/or increase the storage charges
for ports declared by it as
congested. PROVIDED, that
foreign transshipment shall not be
subject to the said escalation.

PPA Memorandum Circular No. 01-2011

Revocation of PPA Memorandum
Circular No. 01-2009 (50%-50%) sharing
in the Arrastre Fees in Instances Where
Cargo Handling (CH) Operators Utilizes
Equipment of the Shipping Lines in
Rendering Services to Vessels and
Cargo Owner

Consistent with the requirement in the CH

Contract, the Authority shall now strictly
implement the policy where the authorized
CH Operator are obliged to procure their
equipment either by purchase or lease.

Xxx..
In the event where the shipping company is
willing to allow the CH Operator to use the
equipment, any arrangement at regards the
payment shall be internal between the CH
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 Audit Criteria Questions Yes No Auditor’s Findings
operator and the shipping company.

The payment of arrastre shall be 100%

Auditee:

______________________

Signature Over Printed Name

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