Dear Xxx,

We are pleased to confirm that we can assist on this matter.

We were able to contact Mr. XXX of Bright Port, the ship agent of XXX. We understand that XXX has
indicated that it is presently negotiating with another party who will act as cargo receiver and
requested to be given until noon today.  This is crucial because, according to Mr. XXX, XXX itself is
not authorized to engage in coal importation.  Notably, a coal importer should first secure special
permits from various government agencies such as the Department of Energy (DOE), the
Department of Environment and Natural Resources (DENR), the Bureau of Internal Revenue (as an
importer of mineral products) and the Bureau of Customs (BOC). I requested for the details of the
contact person at Milky Trade so we can coordinate with him directly. 

Mr. XXX also clarified that their engagement as XXX’ ship agent is limited to providing “crew change”
while the vessel is in Manila and that they are not (nor do they intend to be) involved in the
proposed release of the coal shipment.

We have likewise made informal, no-names inquiries with a customs broker, a coal importer, and a
port operator regarding the likely timelines for the release of a coal shipment.

(a) A coal importer advised that they usually apply for a Certificate of Compliance (COC) with
the DOE at least 10 days before the arrival of the shipment.  This is since it usually takes the
DOE around 1 to 3 weeks to process the COC application. Note that the DOE also requires
the submission by the cargo receiver of a report on the quality of the coal shipment.

(b) In addition, since the vessel came from XXX, the ship agent must obtain from the Bureau of
Quarantine (BOQ) a “Provisional Pratique” (local regulations define a pratique as “the
permission for a ship to enter port, disembark persons and commence operation after
compliance with the relevant requirements). Otherwise, the vessel and the crew will most
likely be quarantined at sea for 14 days.

Republic Act No. 9271 (otherwise known as the Quarantine Act of 2004) provides that all
vessels coming from foreign ports are subject to quarantine inspection upon entry into any
port of the Philippines. The implementing rules and regulations of the Quarantine Act of
2004 (Quarantine Act IRR) provides that a vessel from a foreign port that is subject to
quarantine inspection shall be considered in quarantine until given a pratique.

The Citizen’s Charter of the BOQ provides the vessel’s representative/agent must arrange
boarding formalities with the BOQ’s Quarantine Medical Officer for quarantine inspection,
which normally takes around one day. The vessel’s representative/agent or the master of
the agent will then submit the required documents include the following:

i. Maritime Declaration of Health

ii. Deratting/deratting exemption certificate
iii. Passenger and crew list
iv. Voyage Memo/Ports of Call
v. Clinical record of cases treated during the voyage, if any; and
vi. Other documents deemed necessary by the Quarantine Medical Officer for the
compliance of health regulations.
 Under BOQ Memorandum Circular No. 18-20, or the Guidelines for Repatriation via Cruise
Ships and Other Maritime Vessels, all vessels must submit their Notice of Arrival (NOA) one
week before the estimated time of arrival. The NOA must indicate the purpose of call and
vessel activity. Further, the ship handling agency must accomplish all facilitation
requirements before the arrival of the vessel.

A Free Pratique, which is prerequisite for customs clearance, is issued if the following
conditions are met:
 Non-existence of contagious disease onboard
 Ship Sanitation Certificate is valid
 Maritime Declaration of Health and other pertinent documents submitted

(c) A customs broker indicated that even if the cargo receiver has the required permits from the
DOE, the DENR, the BIR and the BOC, it usually takes the BOC around 3 to 4 days to process
the permit application. Nonetheless, to expedite, the BOC can accept a copy of the duly filed
application for a COC with the DOE.

(d) As for the port operator, it was mentioned that upon receipt of the Notice of Arrival and
berthing application, the vessel will be placed on queue. The cargo receiver and the ship
agent must then discuss the particulars with the port operator re supply of cargo equipment,
warehousing and hauling requirements.  The operator highlighted though that they will not
accept the berthing application if the cargo receiver will not be able to submit the special
permits from the BOC, the DENR and the DOE (because the shipment may not be cleared for
release by the BOC and will just hamper port operations).

We will advise the team of further developments

Regards,

Xxx