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THE
Philippine Ports Authority (PPA) clarified that
companies operating in economic zones are exempted from
paying port usage fees on its export products after two
terminals in
Manila
were reported to have collected different rates.
Also
known as wharfage, the said fee is the single biggest
income source of the PPA, contributing an estimated P240
million to its coffers yearly.
In a
memorandum released early this week, the PPA said that
companies registered with the Philippine Economic Zone
Authority (Peza), which oversees ecozones, may also be
exempted from paying import wharfage dues if the said
goods are raw materials needed for the production of the
exported items and if a law states that the entry of
certain types of materials are tax-free.
The
memorandum was released after the Manila International
Container Terminal (MICT) and the
Manila South Harbor
imposed different wharfage rates on materials imported
by Peza-registered firms.
“MICT
accordingly grants exemption while similar importations
that are handled at the South Harbor are being charged
[with] import wharfage,” the PPA memorandum signed on
August 13 indicated.
The
confusion stemmed from the port agency’s conflicting
decisions covering the import shipments of several
companies.
Last
March, PPA denied the request of Pan Century Surfactants
Inc. to be exempted from paying import wharfage on its
raw materials like fatty acid, lauric-myristic acid and
crude palm kernel oil.
However,
the agency decided to allow the Philippine Associated
Smelting and Refining Corp. (Pasar) from paying wharfage
on its imported copper concentrates and coal, which are
used in extracting pure copper from its ore.
The
memorandum was issued after another similar policy
regulation was released, extending reduced wharfage
until the end of the year.
Under
PPA Memorandum Order 26-2007, wharfage for exports was
reduced to P20 from P259.70 for each 20-foot container
and to P40 from P391.05 for each 40-footer.
“As
there were clamor from exporters for the extension of
the reduction in view of the strengthening of Philippine
Peso, the reduced export wharfage is hereby extended
from August 13, 2007 to December 31, 2007,” the PPA memo
said, which was signed on August 7.
However,
the port agency directed all its managers to submit a
monthly monitoring report including savings incurred by
exporters as a result of the reduced rates.
The said
reduced fee was the same rate that PPA had implemented
during April 20 to July 20. |