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The proposed joint administrative order addressing port congestion, high logistics costs, and inefficient return of empty containers is ready for signing, according to Customs commissioner Ariel Nepomuceno
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Pending the signing of the JAO by department secretaries and other agency heads, Nepomuceno said they are strictly implementing the 90-day dwell time for foreign containers to help address the current issue on empty containers
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The proposed JAO will provide guidelines on port yard utilization and transparency on charges in the handling of cargoes by customs third parties and other logistics providers
The proposed joint administrative order (JAO) addressing port congestion, high logistics costs, and inefficient return of empty containers is ready for signing, according to Customs commissioner Ariel Nepomuceno.
“Hopefully lumabas na (it comes out) very soon. So we’re just waiting. Everyone is waiting,” Nepomuceno said in a chance interview at the sidelines of the recent DHL GoTrade Summit 2026.
BOC had earlier targeted signing the JAO in August, ahead of the “cyclical occurrence” of port congestion that typically begins in October. The target was then moved to September to give BOC time to thoroughly review the details.
READ: BOC targets signing of JAO addressing port congestion within September
Now, Nepomuceno said the JAO is ready for signing by the secretaries. Based on the draft, these include the secretaries of the Department of Finance, Department of Transportation, and Department of Trade and Industry. Other agencies involved in the JAO are the Bureau of Internal Revenue, the Philippine Ports Authority (PPA), the Maritime Industry Authority, and the Philippine Competition Commission.
Pending the signing of the JAO, Nepomuceno said they are strictly implementing the 90-day dwell time for foreign containers to help address the current issue on empty containers.
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 be subjected to payment of duties and taxes. Beyond 90 days, they will be considered overstaying and issued an assessment notice.
Nepomuceno last April sent a letter to the Association of International Shipping Lines (AISL), calling their attention to the dwell time policy. AISL had said their member carriers are complying with the policy.
READ: BOC orders strict monitoring of 90-day foreign container dwell time
The proposed JAO will provide guidelines on port yard utilization and transparency on charges in the handling of cargoes by customs third parties and other logistics providers.
Nepomuceno, however, earlier said the JAO “will start helping resolve the congestion issue” at the Port of Manila, while acknowledging that congestion is a “complex problem” the order alone will not fully resolve.
The draft is a revival and significant expansion of a 2019 proposal that aimed to regulate origin and destination charges imposed by foreign carriers and ease port congestion. BOC Office of the Commissioner Deputy Chief of Staff Atty. Chris Noel Bendijo earlier said the new JAO “expressly provides provisions for the BOC to sort of be the lead agency” and will be “all-encompassing,” covering not just shipping lines but truckers, container yards, and other logistics providers.
The measure is one of several BOC steps to address high yard utilization, particularly at Manila’s international terminals. Manila International Container Port (MICP) and Manila South Harbor (Port of Manila) saw yard utilization breach 100% at points earlier this year, a convergence AISL attributed to seasonal, operational, and logistical factors observed since mid-December. Conditions improved from March before climbing again in late April; at South Harbor, overall utilization has since eased, reaching over 60% in July and early August.
The initial draft of the JAO was subjected to comments from stakeholders and concerned government agencies.
The draft JAO notes that industry stakeholders have flagged high logistics costs, excessive and non-transparent fees, port utilization inefficiencies, and other regulatory constraints as factors hurting the sector’s competitiveness. Its proposed policies include efficient port utilization; transparency in local charges by foreign shipping lines; collection of lawful revenue; and controlled temporary admission of containers.
It will apply to persons and entities involved in the handling, movement, storage, release, or re-exportation of international containers, or the imposition or collection of charges related thereto. These include international shipping lines and their agents, truck operators, offdock container yard (OCY) operators, port terminal operators, inland container terminal/depot (ICT) operators, importers, exporters, and customs brokers.
Under the draft, shipping lines and their agents should observe transparency, uniformity, and reasonableness in the imposition and collection of charges relating to the handling, release, movement and return of cargo and containers, including origin, freight and local charges BOC will oversee compliance with this requirement.
BOC, in coordination with PCC, DTI, and MARINA, and in consultation with shipping lines and relevant stakeholders, will prescribe and maintain a standard schedule and nomenclature of shipping line charges, and prescribe maximum rates or ceiling on shopping line charges, taking into consideration several factors. Any adjustment should be disclosed to BOC and the public within a period, and no hidden or misleading charges will be allowed.
Shipping line charges, which are in nature of costs associated with the transport of imported goods, will form part of the dutiable value for purposes of computing duties and taxes.
Shipping line changes which are for services rendered or use of property in the Philippines will form part of the taxable income in the Philippines and subject to value-added tax and other taxes applicable.
The draft JAO takes direct aim at longstanding industry grievances over container handling:
- Container deposits must be refunded within 15 days of a shipping line’s receipt of the equipment interchange report.
- Demurrage should be imposed on a per-container basis. No demurrage or detention charges may be imposed on any laden container that is released from the port within the free period, notwithstanding that other containers covered by the same bill of lading remain in the port beyond the free time.
- Detention charges may be charged based on rules set under the JAO
Managing port congestion and yard utilization
PPA must establish the conditions for declaring port congestion based on the guidelines prescribed and approved by the PPA Board, taking into account port-specific congestion indicators, after due consultation with international shipping lines, port terminal operators, and other stakeholders, including BOC.
The DOTr secretary, on PPA Board recommendation, will declare the existence of port congestion or emergencies causing serious operational disruptions; PPA may then designate extension ports and direct foreign vessels at the congested port to berth there instead.
On yard utilization, Port of Manila and MICP operators, together with BOC and PPA, must determine within 15 days of the JAO’s effectivity what percentage of yard utilization is considered normal; pending that determination, 75% will serve as the default normal threshold. If utilization rises 5% above that threshold for 15 consecutive days, BOC will implement the transfer of laden containers under the JAO or PPA Administrative Order No. 02-2019. If overall utilization exceeds 100% or congestion is declared, foreign vessels may be allowed to berth and unload at an extension port.
Separately, and regardless of whether congestion exists, the draft JAO sets a standing container yard policy:
- Shipping lines must ensure OCYs or ICTs are available and have capacity to receive returned containers;
- In all instances, shipping lines should ensure a yard allocation of at least 130% of the projected daily inventory of containers based on historical data as determined by bC after consultation
- If actual inventory exceeds 130% of the projected daily inventory for 15 consecutive days, the shipping line will be subject to penalty, unless additional OCT or ICT has been secured to accommodate the excess containers, or a sweeper vessel is provided
All container yards acting as third parties for shipping lines in storing temporarily admitted containers must be BOC-accredited and comply with accreditation conditions.
BOC will also create or accredit automated systems to monitor container movement from discharge to load-out, including intermediate transfers.
The draft JAO sets penalties ranging from ₱5,000 to as much as ₱100,000 depending on the offense.
An oversight committee made up of all agencies with roles under the order will be formed to monitor implementation and conduct periodic policy reviews.
A complaint handling mechanism will also be set up for any affected party that wants to file a complaint with BOC involving shipping line charges and practices covered by the proposed JAO..—Roumina Pablo
READ: Manila’s Cargo Crisis — When Sea and Air Feel the Squeeze
Manila’s Cargo Crisis: What Needs to Happen
