-
The Bureau of Customs is looking to develop a comprehensive strategy to address port congestion, incorporating both operational and policy interventions
-
BOC is reviewing container monitoring systems such as the Automated Container Movement Monitoring System, Customs Container Management System, and In-Transit Asset Management and Supervision System
-
BOC will pursue the accreditation of off-dock container depots
-
BOC will also be drafting a comprehensive order establishing trigger points and threshold levels to proactively manage and mitigate port congestion, particularly during peak periods from November to February
The Bureau of Customs (BOC) is looking to develop a comprehensive strategy to address port congestion, incorporating both operational and policy interventions.
In a presentation at the recent general assembly of BOC’s Customs Industry Consultative and Advisory Council, Port Operations Service director Melon Carlo Santiago said that following a series of consultations with stakeholders, the bureau is, among others, eyeing the deployment and integration of electronic systems to ensure real-time monitoring and visibility of container movements.
BOC previously had initiated consultations with stakeholders after port users in February sounded the alarm over high yard utilization rates–especially for reefer cargoes–at Manila’s international terminals–Manila International Container Terminal (MICT) and Manila South Harbor, as well as in empty container depots.
According to BOC, MICT’s overall yard utilization for February was beyond 80% while reefer utilization ranges from above 90-100%. As of February 23 (the last public update from BOC-MICP), overall yard utilization at MICT was at 88.56% with reefer use at 101.20%.
For Manila South Harbor, yard utilization has improved. As of March 27, overall yard utilization was at 56.53%, reefer utilization at 64.48%, and bulk and breakbulk yard utilization at 34.15%.
The Association of International Shipping Lines earlier attributed the high yard utilization to “a convergence of seasonal, operational, and logistical factors observed since mid-December of last year”. These factors include extended yuletide holidays that have led to delays in cargo withdrawals as well as seasonal impact of the Chinese New Year with production in many import sources significantly on slowdown due to the long holiday. Also cited as challenges were the unprecedented surge in reefer volumes, and constraints at off-dock container depots.
READ: AISL addressing high yard utilization through industry engagement
As parts of ways moving forward, BOC will pursue the accreditation of off-dock container depots “to expand capacity and improve cargo handling efficiency.”
Even prior to this, BOC in 2022 also said they are drafting a memo on the accreditation of offdock container depots to complement the bureau’s monitoring of containers.
BOC also aims to deploy and integrate electronic systems to ensure real-time monitoring and visibility of container movements.
Systems currently under review by BOC include the Automated Container Movement Monitoring System (ACMMS), Customs Container Management System, and In-Transit Asset Management and Supervision System (ITAMSS).
BOC and AISL in 2023 signed a memorandum of agreement for the ACMMS, an end-to-end solution that seeks to implement the provision of Customs Administrative Order (CAO) No. 08-2019, which provides the policies on the admission, movement, and re-exportation of containers at seaports.
AISL said discussion on the implementing operational guidelines of the ACMMS started right after the signing of the MOA in 2023 but failed to progress.
The association in a recent letter to BOC recommends revisiting discussions on ACMMS, saying it addresses the need of BOC to monitor in-country dwell time and container inventory at both the terminals, depots and in-circulation, and features an appointment system that guarantees space allocation at the depots.
READ: AISL against proposed BOC empty container monitoring system
ITAMSS, meanwhile, is a proposed system that will allow BOC and truck operators to track, monitor, and audit the location and condition of empty containers.
ITAMSS will be a component subset of the import monitoring program of BOC and also implements – particularly for empty containers – CAO No. 08-2019.
Santiago also noted other stakeholder systems, such as Alliance of Container Yard Operators of the Philippines’ empty container returns system called Simply Book, and Logitech.
BOC will also be drafting a comprehensive order establishing trigger points and threshold levels to proactively manage and mitigate port congestion, particularly during peak periods from November to February.
Customs commissioner Ariel Nepomuceno, during the assembly, said BOC will also continue to strictly implement the 90-day dwell time.
Under CAO No. 08-2019, foreign containers (whether loaded or empty) need to be re-exported within 90 days from the discharge of the last package or they will subjected to payment of duties and taxes. Beyond 90 days, they will be considered overstaying and issued an assessment notice.
BOC earlier said it had written to AISL to dispose of overstaying empty containers, and strictly enforce the 90-day dwell rule.
READ: Foreign shipping lines complying with BOC order on container dwell time – AISL
Moreover, BOC will again conduct a series of meetings with stakeholders to continue the dialogue on the matter. – Roumina Pablo
