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The Bureau of Customs called on members of the Association of International Shipping Lines to dispose of overstaying empty containers, and strictly enforce the 90-day dwell rule
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The move will “free up valuable terminal space and help ease congestion at the Manila South Harbor and the Manila International Container Terminal,” BOC said
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In addition to strict implementation of the 90-day container dwell time ruling, the BOC is looking into tighter supervision and regulation of empty container depots via the mandatory use of an automated inventory management system
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BOC will also discuss with 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
The Bureau of Customs (BOC) called on members of the Association of International Shipping Lines, Inc. (AISL) to dispose of overstaying empty containers, and strictly enforce the 90-day dwell rule.
“The removal of these containers is expected to free up valuable terminal space and help ease congestion at the Manila South Harbor and the Manila International Container Terminal (MICT),” BOC said in a statement.
Yard utilization at the MICT has been stubbornly high for the last few weeks, with some days breaching 100% for refrigerated containers. As of February 20, the MICT yard use for reefers was at 94.76% and overall yard use at 84.45%.
The agency said Commissioner Ariel Nepomuceno wrote AISL director-president Patrick Ronas on the issue of empty containers remaining in ports beyond the allowable dwell period.
AISL officials and Deputy Commissioner for Assessment and Operations Coordinating Group Atty Agaton Uvero met on Friday (Feb 20) to discuss, among others, the empty container situation that have kept yard utilization elevated in Manila ports.
In his letter, Nepomuceno reiterated the strict enforcement of the 90-day container dwell time rule under Customs Administrative Order (CAO) No. 8-2019 (Policies on Admission, Movement, and Re-Exportation of Containers at the Seaports).
Under that order, 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.
PortCalls earlier reported on the BOC’s intent to strictly enforce the 90-day container dwell ruling.
According to BOC, its records show “several empty containers overstaying within port premises beyond the prescribed 90-day period.” No specific volume was cited.
Outside of the terminals, space in empty container depots (ECDs) is also constrained, with some truckers complaining of days before they are able to return empties.
BOC said Nepomuceno “directed concerned shipping lines to immediately file the necessary goods declaration and/or settle the corresponding duties, taxes, and other charges” otherwise they face appropriate enforcement measures in keeping with existing customs laws and regulations.
The agency said that AISL, as a key partner in trade facilitation and port operations, was “requested to assist in notifying and coordinating with its member shipping lines to ensure the prompt movement and disposition of overstaying containers.”
Other measures to tamp down congestion
In addition to strict implementation of the 90-day container dwell time ruling, 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.
Nepomuceno will also discuss with Department of Agriculture officials the possibility of freeing Super Green Lane (SGL) 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.
READ: BOC eyes exempting SGL members’ reefer shipments from first-border inspection
The proposal is welcomed by the SGL Association, with president Cris John Garcia saying this “would free up reefer plugs faster and improve overall yard utilization, without compromising regulatory controls.”
AISL in an earlier release 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
