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REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF CUSTOMS MANILA 1099 January 15, 2014 CUSTOMS MEMORANDUM ORDER NO. ______________ SUBJECT: REVISED RATES TO BE CHARGED BY OFF-DOCK CONTAINER YARD/CONTAINER FREIGHT STATIONS (CY/CFS)

WHEREAS, the Bureau of Customs (BOC) have been receiving numerous written complaints of alleged overcharging by CY/CFS Operators in violation of the provisions provided under CMO 24-2001. WHEREAS, the promulgation of revised uniform rates based on public consultations with the various stakeholders will help level the playing field among the operators. WHEREAS, Section III-F of Customs Administrative Order No. 11-80 authorizes the commissioner of Customs to promulgate uniform rates to be charged by CY/CFS. NOW THEREFORE, the following rules and regulations governing uniform rates to be charged by CY/CFS-OZ operators for consolidated import cargo are hereby promulgated. 1. Objective To promulgate a revised and uniform rate system to be charged by CY/CFS-OCZ operators for consolidated import cargo. 2. Revised Rates The rates to be charged by outside CY/CFS-OCZ operators for consolidated import cargo shall exceed the following:
Storage Arrastre & Wharfage Documentation Stripping and Cargo Out Handling OLRS Insurance Heavy Lift (over 3 revenue ton oversize single unit cargo) Dangerous Cargo VAT Php40/Revenue Ton counted from date of stripping Per rates promulgated by the Philippine Ports Authority (PPA) Php1,000 per Bill of Lading Php1,000 per Revenue Ton Php200 per Bill of Lading Php1,000 per Bill of Lading or 1/8 of 1% of FOB value, whichever is higher Php2,000 per Revenue Ton 100% surcharge on storage, stripping and handling Per BIR regulations

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Note 1:

Insurance charge shall be waived by CY/CFS-OCZ operator if cargo owner/consignee presents a general and continuing waiver of cargo claims against the warehouse operator making the warehouse operator a coinsured party in the marine insurance.

3.

Measurement and Weight Rates based on Revenue Tons (measurement/weight) shall be based on measurements/weights declared in the manifest/bill of lading unless a discrepancy in weight or measurement of more than 12% is officially reported to the Bureau of Customs by the operator and wharfinger, in which case the actual measurement or weight shall be the basis for applying the approved rates.

4.

Procedure for Investigation a. Any importer/consignee or its authorized customs representative/broker may file a written complaint supported by official receipt of payment which indicates a violation of this Order. The written complaint shall be filed with the Office of the Deputy Commissioner, Assessment and Operations Coordinating Group (AOCG) who shall cause the immediate conduct of an investigation. b. Upon receipt of the written complaint, the same shall be assigned to any member of the Technical Working Group, Bonded Warehouse Committee (TWG-BWC) who shall conduct the investigation. c. A notice of investigation duly signed by the Deputy Commissioner, AOCG shall be sent to the concerned CY/CFS Operator to submit a written answer under oath. The CY/CFS Operator may file its answer within five (5) days upon receipt of the notice of investigation. The assigned member of the TWG-BWC shall prepare a resolution within five (15) day from receipt of the answer or from expiration of the time given to the concerned CY/CFS Operator to file its answer, if the latter does not file any answer. d. The resolution signed by the member of the TWG-BWC assigned to conduct the investigation, shall be sent to the Head, Secretariat, BWC, who shall schedule the deliberation by the members of the BWC. e. The decision, either dismissing the complaint or imposing penalties and sanctions in accordance with this Order, shall be made by the majority of the members of the BWC constituting a quorum. The Chairman, BWC shall only vote to break a tie. The decision of the BWC shall be immediately final and executory. f. The Office of the Commissioner shall be furnished a copy of the decision of the BWC.

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5.

Penalties and Sanctions for Violations The following penalties and sanctions shall be imposed: a. For the first offense, a penalty of one hundred thousand pesos (PhP100,000.00) payable to the Bureau of Customs, and refund to the consignee of one hundred percent (100%) of the overcharge which shall be made within ten (10) days after the rendition of the decision by the BWC. Non-payment of the penalty and non-refund of the overcharge shall cause the suspension of transfer of containers to the erring CY/CFS Operator until full payment and refund has been made. b. For the second offense, the BWC shall, in addition to the penalty imposed under the immediately preceding paragraph, order the immediate suspension of transfer of containers to the erring CY/CFS Operator for a period of one (1) month. c. For the third offense, the BWC shall, in addition the penalties provided in paragraph (a) of this Section, shall revoke the permit to operate against the erring CY/CFS Operator.

6.

Repealing Clause All customs Memorandum Orders, circulars, rules and regulations inconsistent with this CMO are hereby deemed superseded and /or amended accordingly.

7.

Effectivity This Order shall take effect one week after the date of the issuance thereof to allow the proper dissemination to all concerned.

JOHN P. SEVILLA Commissioner