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The Bureau of Customs ordered the immediate adoption of three measures to address high yard utilization and improve cargo movement in Manila international terminals
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These are: transfer of overstaying loaded containers, expedited assessment and processing of shipments within five days, and deployment of sweeper vessels for empty containers
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Customs commissioner Ariel Nepomuceno in a memorandum dated June 19 said increasing yard utilization levels at Manila South Harbor and Manila International Container Terminal continue to adversely affect the efficient movement of cargo and the overall flow of port operations
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The transfer of overstaying laden containers will become mandatory when yard utilization exceeds the average of 75% for two consecutive weeks
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MICT said overstaying abandoned or forfeited laden containers (more than 90 days) will also be considered for transfer to designated offsite facilities in Laguna, Cavite, and Bulacan
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BOC will also implement a five-day processing period, wherein the Notice of Assessment should be issued within five days from lodgment of the goods declaration
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District collectors of the Port of Manila and MICT are directed to coordinate with the terminal operators to allow the berthing of sweeper vessels for the evacuation and re-exportation of empty containers
The Bureau of Customs (BOC) ordered the immediate adoption of three measures – the transfer of overstaying laden containers, expedited assessment and processing of shipments, and deployment of sweeper vessels – to address high yard utilization and improve cargo movement in Manila international terminals.
Customs commissioner Ariel Nepomuceno, in a memorandum dated June 19 to BOC-Port of Manila (BOC-POM) district collector Rizalino Jose Torralba and BOC-Manila International Container Port (BOC-MICP) district collector Atty Geoff De Vera dated June 19, said increasing yard utilization levels at Manila South Harbor and Manila International Container Terminal (MICT) “continue to adversely affect the efficient movement of cargo and the overall flow of port operations.”
“Delays in the release and withdrawal of laden containers further contribute to congestion and reduce available terminal capacity, resulting in a domino effect on port operations and cargo flow. Recognizing that overstaying laden containers occupy valuable terminal space and reduce yard capacity, it is necessary to implement immediate measures to improve port operations, facilitate cargo movement, and maintain optimal yard utilization,” the memo said.
READ: Remove overstaying containers, BOC orders shipping lines
To ensure objective implementation of “congestion measures”, BOC directed the adoption of the following yard utilization thresholds:
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A yard utilization level of 75% will be considered the normal operating level
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The implementation of congestion measures will become mandatory when yard utilization exceeds the average of 75% for two consecutive weeks
Nepomuceno has directed the transfer of overstaying laden containers to accredited offdock container yards that are also owned and/or operated by, or serve as an extension facility of the terminal.
The transfers will be in the following order of priority:
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Paid but unclaimed – containers that remain unclaimed at the port at least 10 days after payment of duties and taxes
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Assessed but unpaid – containers for which the corresponding duties and taxes remain unpaid 15 days after receipt of the notice of assessment
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Unlodged goods declaration – containers covering goods for which no goods declaration has been lodged within 15 days from discharge, provided that such containers may be transferred despite an approved request for extension to lodge the goods declaration
Overstaying abandoned or forfeited laden containers (more than 90 days) will also be considered for transfer.
Transfer costs will be charged to the importer. All transfers will be subject to non-intrusive inspection and spot-checking, with appropriate security measures during actual movement of containers.
The concerned customs officer should likewise publish and make readily available the applicable rates and charges for services rendered.
In a separate advisory dated June 25, MICT said overstaying abandoned or forfeited laden containers (more than 90 days) will also be considered for transfer to designated offsite facilities in Laguna, Cavite, and Bulacan. Manila South Harbor operator Asian Terminals, Inc. (ATI) told PortCalls overstaying containers from their terminal will be moved to their Laguna facility.
5-day processing
Another measure is to prioritize the processing of goods declarations upon lodgment to facilitate the immediate release or transfer of goods.
The memorandum has directed the strict observance of the following timelines:
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Five-day processing period – The Notice of Assessment should be issued within five days from lodgment of the goods declaration. No extension beyond the prescribed five-day period will be allowed except for justifiable reasons and upon approval of the BOC deputy collector or assessment. This includes freely importable goods and regulated goods lodged under provisional goods declaration.
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Regulated Goods – Failure to submit required permits and clearances within 15 days from lodgment will result in the recommendation for the issuance of a warrant of seizure and detention against the subject shipment.
Sweeper vessels
The district collectors of BOC-POM and BOC-MICP are also directed to coordinate with the terminal operators to allow the berthing of sweeper vessels for the evacuation and re-exportation of empty containers.
The district collectors should also coordinate with shipping lines having the largest number of empty containers for re-exportation, as well as with those that have manifested their intention to evacuate their empty containers.
“All concerned shall ensure the immediate and uniform implementation of this directive, including necessary enforcement actions to ease congestion and ensure efficient cargo movement,” the memorandum added.
Prior to issuance of the June 19 memorandum, MICT in an advisory last May 19 had already asked shipping lines, customers, and consignees to expedite withdrawal of laden containers as the terminal continues to experience higher than normal yard utilization and inventory due to longer container dwell times.
READ: MICT appeals for faster container withdrawal
Association of International Shipping Lines, Inc. (AISL) president Patrick Ronas also earlier said shipping lines continue to remind clients on container withdrawal.
BOC-POM in a memorandum dated May 22 also reminded importers, shipping lines, and other concerned stakeholders to strictly comply with prescribed timelines for the release of imported cargoes and re-export of empty containers.
ATI in a marketing circular dated May 26 also reiterated its call for immediate withdrawal of import boxes – both dry and reefers – as Manila South Harbor continues to handle increased import volumes. The port operator said that if the situation does not improve in the next seven days, it will be constrained to implement Philippine Ports Authority (PPA) Administrative Order No. 02-2019, which instructs terminal operators to transfer long-dwelling cleared boxes to designated ports/container depots.
READ: Overstaying import boxes at South Harbor face transfer in 7 day
Early this year, Manila international terminals have experienced high yard utilization rates reaching more than 100% due to “a convergence of seasonal, operational, and logistical factors observed since mid-December of last year”. The situation has improved since March, but utilization started hitting higher again in the latter part of April.
BOC last March said it is looking to develop a comprehensive strategy to address port congestion, incorporating both operational and policy interventions. – Roumina Pablo
READ: MICT handles highest annual container volume at 3M TEUs
