The Bureau of Customs (BOC) has shortened the period within which it allows empty foreign containers to stay in the country without having to pay duties and taxes.
Under Customs Administrative Order (CAO) No. 01-2015, signed by Customs Commissioner John Phillip Sevilla on Jan 5 and approved by Finance Secretary Cesar Purisima, the period for re-exporting of empty containers has now been cut to 90 days from 150 days.
The new measure is apparently part of government measures to help decongest Manila ports, which some cargo owners have allegedly used as virtual warehouses.
The order repeals CAO 2-97, which governs the 150-day dwell time of foreign containers.
Patrick Ronas, president of the Association of International Shipping Lines, said the new policy “should not be a problem as long as terminals are able to accept our empties for positioning out of the country.”
Under CAO 01-2015, an empty container re-exported on or before April 30, regardless of when it arrived in the Philippines, will not be subject to any duties or taxes previously mandated by CAO 2-97.
However, containers arriving as empty from January 30 until April 30 should be re-exported by July 29. Likewise, containers stuffed with imported cargoes, which were returned to the shipping line at any time from January 30 to April 30, as evidenced by the Equipment Interchange Receipt (EIR) issued by the carrier and signed by the party receiving and/or delivering the containers, should also be re-exported by July 29.
Form May 1 onwards, empty containers arriving in the country should be re-exported within 90 days from date of last discharge. Likewise, containers with imported cargoes shall be re-exported by 90 days after their return to the shipping line, based on the EIR.
Moreover, from May 1 onwards, any container which has not been re-exported within 90 days from its date of last discharge (for containers that arrived as empty), or from the date of its return to the shipping line (for containers which arrived stuffed with cargo), as evidenced under the EIR, will be subject to duties and taxes.
Containers that will not be re-exported on the said deadlines will be treated as imports, thus, their owners will have the obligation to file import entries and pay duties and taxes.
For containers that should be re-exported by April 30 but were not, import entries must be filed no later than August 28, and payment of duties and taxes should be made 15 days after the filing of entry.
On the other hand, containers that arrived from January to April 30, import entries must be filed no later than 30 days after the lapse of the 90 day period, and payment of duties and taxes must be 15 days after.
Containers that have not been re-exported by the deadlines set by BOC and import entries were not filed during the period provided, the agency will issue a warrant of seizure and detention on the empty containers. – Roumina Pablo
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