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    Firms in ecozones exempt
    from paying port user fees
    By VG Cabuag
    Reporter

    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.

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