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The Bureau of Customs will strictly implement the 90-day foreign container dwell time policy
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This is amid high utilization in the reefer yard at Manila ports as well as empty container depots
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Customs commissioner Ariel Nepomuceno will issue a notice to shipping lines this week calling their attention to the dwell time policy
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A digital system that will strictly monitor operation of empty container yards is eyed for implementation in May
The Bureau of Customs will strictly implement the 90-day foreign container dwell time policy amid congestion in the reefer yard at Manila ports as well as empty container depots (ECD).
Customs commissioner Ariel Nepomuceno will issue a notice to shipping lines this week calling their attention to the dwell time policy, according to Doris Torres, executive director and chair of Training and Education of the Philippine Multimodal Transport and Logistics Association, Inc., one of the industry groups invited by the Bureau of Customs (BOC) on Feb 13 for a stakeholders’ meeting meant to improve cargo movement and port utilization.
The notice is part of measures to address persistently high yard utilization at Manila ports.
Under Customs Administrative Order 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.
READ: BOC formalizes tracking, control procedures for container movements
In addition to strict implementation of the 90-day container dwell time ruling, Torres said the BOC is looking into tighter supervision and regulation of ECDs via the mandatory use of an automated inventory management system.
The digital system — now being worked on for possible implementation in May — requires booking of empties in ECDs, allowing the BOC to strictly monitor and generate real-time and accurate information capacity of ECDs, providing visibility over the facilities’ capacity, utilization and container dwell time.
The system will be able to track whether volumes handled by individual shipping lines match capacity of their designated yards.
A third-party provider accredited by the BOC will operate the system.
In a statement, the BOC said it will look into capacity of container yards, aging of inventoried containers, and a method to determine their real-time utilization, as immediate potential solutions to the high yard utilization.
It must be noted that a draft order requiring offdock operators and other customs facilities and warehouses to automate their inventory management system has been on the table since 2021.
At last Friday’s stakeholders’ meeting, BOC said Nepomuceno underscored the agency’s commitment to data-driven decision-making and directed concerned offices to conduct further studies, review existing systems, and benchmark international best practices to identify innovative approaches that will optimize port operations while upholding trade facilitation efficiency and revenue integrity.
Cause of high yard utilization
The stakeholders’ meeting sought to identify both immediate and long-term solutions to current port utilization issues, BOC said.
The Association of International Shipping Lines 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
Reefer yard utilization at Manila ports, most especially the Manila International Container Port (MICP), has been high in the last few weeks, breaching 100% for a number of days during the first and second weeks of February, based on BOC data.
Overall yard utilization at MICT, which handles about 70% of the Philippine container traffic, has also been elevated — in the mid-80s — for the same period.
Today (Feb 16), reefer yard utilization at MICP is 94.64% and overall yard use, 83.53%.
There are reports of the MICP empty container yard as well as depots outside the terminal at full capacity.
The situation has led to trucks having difficulty both pulling out laden containers from the terminals, and finding space for empties in depots.
During the stakeholders’ meeting, BOC said the MICP presented trends in yard utilization rates from 2024 to 2026, outlining key variables affecting operational capacity, cargo dwell time, vessel traffic volume, and overall port efficiency. The presentation provided a comprehensive overview of evolving operational demands and the factors influencing yard management, particularly during peak seasons.
Stakeholders raised operational considerations and shared recommendations on how the BOC can further support the industry in identifying practical and sustainable approaches to ease yard utilization pressures.
BOC said the discussions underscored the need for coordinated action, data-driven strategies, and responsive policy measures to ensure the smooth movement of goods while safeguarding efficiency across the supply chain.
The BOC said it will continue to hold regular engagements with industry partners to address operational concerns, align strategies, and continuously enhance port processes in support of seamless cargo movement and a more efficient trading environment.
READ: PCCBI recommends cut in empties dwell time to ease yard congestion
UPC seeks BOC intervention on reefer saturation at MICT
Port stakeholders fear higher logistics costs due to congestion; trucks in short supply
