Speedy release of refrigerated containers, dry vans ordered

To decongest the country’s ports, the Department of Finance (DOF), Department of Agriculture (DA), Department of Trade and Industry (DTI), Bureau of Customs (BOC), and Philippine Ports Authority (PPA) signed Joint Administrative Order (AO) 20-01 on April 2. (Shutterstock photo)

MANILA – The government has sought the adoption of processes to ensure the speedy release of refrigerated containers and dry vans during the Luzon-wide enhanced community quarantine.

To decongest the country’s ports, the Department of Finance (DOF), Department of Agriculture (DA), Department of Trade and Industry (DTI), Bureau of Customs (BOC), and Philippine Ports Authority (PPA) signed Joint Administrative Order (AO) 20-01 on April 2.

“There is a need to issue clear and coherent inter-agency guidelines to resolve specific issues arising from restrictions imposed under the enhanced community quarantine to prevent congestion at the ports which may unduly cause disruption in the supply chain and impede the availability of basic necessities and essential goods,” the order read.

On March 27, the Inter-Agency Task Force for the Management of Emerging Infectious Diseases directed all corresponding importers, consignees, truckers, shipping lines, and concerned government regulators to address the disruptions to the supply chain and withdraw immediately all refrigerated containers as well as dry vans.”

The joint AO applies to chilled categories like medicines, fruits, vegetables, chilled meat or other foods; frozen categories such as fish and meat; and dry goods like Out of Gauge cargoes described as heavy equipment or project cargoes stored on flatbed chassis.

The Bureau of Animal Industry, Bureau of Fisheries and Aquatic Resources, Bureau of Plant Industry, National Meat Inspection Service, and Food and Drug Administration are directed to process and approve necessary permits and licenses for the release of refrigerated containers and dry vans at ports within three days.

Cargoes’ withdrawal

All reefers must be pulled out of the ports within seven days, except chilled cargoes that must be withdrawn two days earlier, according to the joint AO. Unclaimed refrigerated containers after three days from the set deadline will be declared abandoned.

Cargoes beyond 30 days from date of discharge must be pulled out within five days from the issuance of joint AO, otherwise, these will be considered abandoned subject to immediate disposition determined by DOF Secretary.

“Terminal operators are directed to cause the pullout of the reefers out of the customs yard for relocation to another facility where the appropriate government authority can make a proper determination as to whether goods inside are still viable. Transfer cost shall be on the account of the box owner or shipping line,” the joint AO said.

“If the shipment is found to be unfit for human consumption and condemned by the BOC, shipping lines shall defray the cost of condemnation to be carried out by the condemnation contractor accredited by the BOC,” it added.

Disposal contractors awarded by the BOC are directed to pay BOC liquidated damages, in case they fail to complete the pullout of the containers from the facility within five days from the issuance of the joint AO.

Disposal contractors may also face the administrative penalty of suspension for one year from participating in the competitive bidding process.

Reefers scheduled to arrive after the issuance of the joint AO would also be declared abandoned, if not withdrawn within 10 days from discharge.

The joint AO directs the BOC to give priority to arriving cargoes, particularly food, medicine medical and basic necessities.

The BOC also directs shipping lines to retain refrigerated containers aboard the vessels or be sent back to the transshipment port.

“Importers/consignees are directed to effect the immediate withdrawal of reefer containers, or otherwise face abandonment proceedings,” the order stressed.

The order also allows BOC to continue the implementation of a system allowing the electronic lodgment and online filing of goods declaration, including online payment of duties and taxes, acceptance of electronic copies of import permits, clearances and other documents to expedite transaction processing.

Import regulatory agencies are told to accept electronic filing of applications for permits and clearances and to send an electronic copy of permits to importers.

With lodgment

Lodgment of and online filing of goods declaration by importers should be two days from the date of discharge. The BOC is directed to issue the final assessment of the goods declared no later than 24 hours from the date of the online filing of the goods declaration.

Importers or consignees have three days to claim the goods after paying duties, taxes, and other charges within 24 hours from the date of issuance of BOC’s final assessment.

Shipping lines are also ordered to release all delivery orders (Do) within 24 hours upon payment by the consignee of all shipping charges. Failure to release DO within the prescribed time will compel the shipping line to waive demurrage charges for each day of delay.

In the case of reefers, lodgment and online filing of goods declaration by importers or consignees should be prior to the arrival of the vessel or within 48 hours. The goods can be claimed within 24 hours following the payment of duties, taxes, and charges within 24 hours from the date of issuance of the final assessment by BOC.

“BOC shall relax the selectivity process for food, medicine, medical and other basic necessities, and shall adopt the Green Lane Process flow for importers or consignees, jointly identified by the DTI Bureau of Import Services and the BOC, based on set criteria, provided further that importers/consignees shall be subject to a post-entry audit,” the order said.

“In the case of dry vans, the BOC shall facilitate processing the same in accordance with the BOC’s risk management and selectivity system,” it added.

The PPA is also mandated to provide free storage for all goods cleared for release by BOC for a maximum of five days from the date of discharge.

Importers or consignees are directed to immediately withdraw Out of Gauge cargoes within the free storage period of five days from the date of discharge.

Transfer of reefers

The joint AO orders the immediate transfer of overstaying reefers being stored or kept at the terminals to a location that will be jointly designated by the BOC and PPA.

All refrigerated containers with no goods declaration within seven days from the discharge of the last package from the vessel will be declared abandoned.

All expenses that will be incurred for the transfer of reefers to alternative reefer sites for storage sill be borne by the terminal operator.

BOC is tasked to make a proper determination of items intended for human or animal consumption, within 24 hours after the issuance of abandonment or forfeiture on refrigerated containers.

“The empty containers shall be returned to the shipping line that owns it or its owners,” it said.

Lease rental for alternative reefer sites shall be borne by the terminal operators, subject to collection of appropriate handling, forwarding, and storage charges from the beneficial cargo owner.

Shipping lines are required to operate from 8 a.m. to 5 p.m. and implement a system allowing for the electronic processing of shipping documents, including those related to the payment of shipping charges and issuance of delivery orders.

The BOC, PPA, DTI, DA, and other concerned agencies are directed to immediately issue their respective rules to implement the provisions of the joint AO, which takes effect immediately.