PPA cuts requirements, fees of transport service providers

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Philippine Ports Authority Administrative Order No 06-2021 also allows applicants to choose a validity period for the Permit to Operate: one, two or three years, a departure from the previous fixed three-year validity period. Photo by Scott Graham on Unsplash
  • The Philippine Ports Authority has reduced application requirements for a Certificate of Accreditation
  • Under Administrative Order No. 06-2021, the agency also provides a discount for the Permit to Operate (PTO) processing fee until December 31, 2021
  • In addition, AO 06-2021 allows applicants to choose a PTO validity period
  • The changes aim to ease the burden of transport service providers as the economy transitions to the new normal, PPA said

The Philippine Ports Authority (PPA) has reduced the processing fee for Permit to Operate (PTO) applications of transport service providers until the end of the year at the same time cut requirements for application of a Certificate of Accreditation (CA).

These are part of new guidelines under PPA Administrative Order (AO) No. 06-2021, signed by PPA general manager Jay Daniel Santiago on October 28.

The order aims to “ease the burden” of transport service providers as the economy transitions to the “new normal”. It amends PPA AO 06-2019, which provides guidelines for the accreditation of port service providers.

The CA requirements for transport service providers are now as follows:

  • Duly filled-out application form with Omnibus Statement from PPA
  • Articles of Incorporation/Partnership (for corporate partnership), Certificate of Business Name Registration (for sole proprietorship), or Certificate of Registration (for cooperative)
  • Latest income tax return (ITR) for existing entities
  • Proof of authorization like secretary’s certificate (for corporation, partnership or cooperative) or authorization letter signed by the sole proprietor (for single proprietorship).

Documentary requirements for application of a PTO are, however, unchanged as prescribed under AO 09-2020, which provides revised guidelines on the issuance of PTO for the provision of ancillary services in the ports.

Choice of validity period

AO 06-2021 also allows applicants to choose a validity period for the PTO: one, two or three years, a departure from the fixed three-year validity period under AO 09-2020.

READ: PPA extends to 3 years validity of permit to operate for ancillary services

The validity of the CA remains three years under AO 06-2019. Application for renewal of both CA and PTO is also still not later than 60 days before expiration.

Moreover, AO 06-2021 provides a discount for the processing fee of PTOs until December 31, 2021. The reduced processing fees are as follows, exclusive of value-added tax:

  • One-year validity – P3,500
  • Two-year validity – P5,000
  • Three-year validity – P7,000

By January 1, 2022, the processing fee will revert to P10,500 under AO 09-2020. The processing fee for CA application remains at P3,000.

In a statement on November 6, PPA GM Santiago said the revised guidelines is the agency’s “gesture of cooperation and assistance to the transport service providers at our ports during these trying times.”

“With this, we also expect to incentivize more transport service providers to comply with existing PPA rules and regulations in order to continue transacting with the ports to maximize the opportunity brought about by the run-up to Christmas,” he added.

PPA noted a PTO “needs to be in valid and in order as it authorizes the service provider to perform or provide services inside PPA ports including harbors, fairways and extensions to ensure that port service providers in ports under PPA’s jurisdiction comply with the health, safety, environmental and operational requirements of the port or ports where the services will be rendered.”

It said this also enables the port authority to monitor, supervise, and direct the activities of port service providers while inside the port, as well as maintain a pool of qualified service providers.

Port service providers or ancillary services required to secure PTO under AO 09-2020 include transport service/cargo forwarding/freight forwarding/hauling/trucking/shuttling/bus, hauling of own cargoes/transport of own employees or guests, bunkering, booking/ticketing office, canteen, cargo checking, cargo surveying, chandling, cleaning service, container repair, and communication service.

It also includes equipment hire, equipment repair, environmental management service, fumigation, laundering, lighterage/barging, parking/garage, reproduction/photocopy, security service, shops/stores, towing/tugging service, vessel repair/maintenance, water supplier, water taxi, weighbridge/truck scale, and other businesses and services that may be classified by PPA as port service.

Port service providers required to secure a CA under AO 06-2019 are shipping agents, shipping lines, transport service/cargo forwarding/freight forwarding/hauling/trucking/shuttling/bus, roll-on/roll-off services, and those engaged in environmental service management.

Other services covered by AO 06-2019 cover bunkering, booking/ticketing office, canteen service, cargo checking service, cargo-handling service, cargo surveying service, chandling, cleaning service, engineering contractor, container repair, communication service, equipment hire, equipment repair, fumigation, laundering, lighterage/barging service, mooring/unmooring, passenger terminal service, pilotage service, port terminal service, parking/garage service, reproduction service, shop/store, towing/tugging service, vessel repair/maintenance, waste disposal service, water supplier, water taxi, weighbridge/truck scale, and other businesses and services that may be classified by PPA as port service.

The issuance of AO 06-2021 comes even as truckers have been requesting for a moratorium on the implementation of PTO to give them more time to comply.

PPA last November 1 finally implemented AO 09-2020 for truckers, but trucking groups said many of their members are still not compliant and are not being allowed to enter Manila port terminals.

READ: PPA implements “no permit, no service” policy for truckers nationwide

The Alliance of Concerned Truck Owners and Organizations, in a statement on November 6, claimed the discount on PTO application fee “appears to be more of a well crafted marketing strategy rather than an honest to goodness re-evaluation and serious restudy of the disputed policy.” – Roumina Pablo