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Foreign carriers are complying with the Bureau of Customs’ 90-day container dwell time policy, according to the Association of International Shipping Lines
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BOC earlier sent a letter to AISL reiterating the strict enforcement of the container dwell time rule as part of ongoing efforts to address the issue of high utilization at Manila international terminals and empty container depots
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AISL president Patrick Ronas said so far, empties at MICT are being loaded to ships for re-export, while Manila South Harbor’s Empty Loadout Shipping Alliance continues
Foreign carriers are complying with the Bureau of Customs’ (BOC) 90-day container dwell time policy, according to the Association of International Shipping Lines, Inc. (AISL).
BOC earlier sent a letter to AISL reiterating the strict enforcement of the box dwell time rule under Customs Administrative Order (CAO) No. 08-2019, with all lines very well aware of the policy, AISL president Patrick Ronas told PortCalls in a Viber message.
The order’s strict enforcement is part of ongoing efforts to address the issue of high utilization at Manila international terminals – especially for reefers – and empty container depots (ECDs).
Ronas said that so far, empties at the Manila International Container Terminal (MICT) are being loaded to ships for re-export, while Manila South Harbor’s (MSH) Empty Loadout Shipping Alliance (ELSA) continues.
ELSA, an initiative that began in 2019, allows partner shipping lines to share vessel resources. The measure enables lines to immediately evacuate empty containers from MSH regardless of which shipping line owned the container.
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 time utilization level was publicly available), overall yard utilization at MICT was at 88.56% with reefer use at 101.20%.
As of February 26, overall yard utilization at MSH was at 78.80%, reefer utilization was at 55.51%, and bulk and breakbulk yard utilization at 54.72%.
The Alliance of Container Yard Operators of the Philippines, Inc. (ACYOP) told PortCalls on February 26 that utilization at their members’ container yards was still around 85-89% but manageable. It must be noted that not all container yards are members of ACYOP.
Under CAO NO. 08-2019 – which provides BOC’s policies on admission, movement, and re-exportation of containers at seaports – foreign containers (whether loaded or empty) need to be re-exported within 90 days from the discharge of the last package or they will be subjected to payment of duties and taxes.
Beyond 90 days, these will be considered overstaying and issued an assessment notice.
BOC said based on records, several empty containers have remained within port premises beyond the prescribed 90-day period. No further details were provided.
In its letter to AISL, Customs commissioner Ariel Nepomuceno directed concerned shipping lines to immediately file the necessary goods declaration and/or settle the corresponding duties, taxes, and other charges. Non-compliance may result in the initiation of appropriate enforcement measures in accordance with existing customs laws, rules, and regulations.
READ: Remove overstaying containers, BOC orders shipping lines
BOC said it has requested AISL assistance to notify and coordinate with its member shipping lines to ensure the prompt movement and disposition of overstaying containers.
The removal of the containers is expected to free up terminal space and “help ease congestion at the Manila South Harbor and the Manila International Container Terminal,” BOC had said.
Port stakeholders earlier sounded the alarm over the high utilization levels at MICT and MSH as well as in ECDs.
AISL earlier attributed the situation to “a convergence of seasonal, operational, and logistical factors observed since mid-December of last year.”
These include the traditionally extended holiday period in December, exacerbated by additional public holidays, including December 29 and January 2, that caused delays in cargo withdrawals; seasonal impact of Chinese New Year (February 17 this year); unprecedented surge in refrigerated cargo volumes coinciding with irregular and bunched vessel arrivals leading to high reefer yard utilization at both MICT and MSH; constraints at off-dock container depots; external operational conditions in January that intensified the local challenges such as congestion and vessel bunching in other parts of Southeast Asia; and restricted cargo movement such as traffic disruptions associated with major January activities, including the annual Traslación.
In addition to strict implementation of the 90-day container dwell time ruling, 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.
READ: BOC eyes exempting SGL members’ reefer shipments from first-border inspection
BOC will also discuss with Department of Agriculture officials the possibility of freeing Super Green Lane members’ reefer shipments from first-border x-ray and physical inspection carried out at the designated examination area, retaining only inspection at the final point of destination.— Roumina Pablo
