PHILIPPINE PORTS: AUTHORITY PPA ADMINISTRATIVE ORDER - 2022 To All Port Managers International Shipping Lines/Companies/Agents Terminal Operators / Cargo Handling Operators Importers Brokers And Others Concerned SUBJECT : IMPLEMENTING OPERATIONAL GUIDELINES OF PPA ADMINISTRATIVE ORDER (AO) NO. 04-2021, ENTITLED “POLICY ON THE REGISTRATION AND MONITORING OF CONTAINERS” LEGAL BASES 1.1. Presidential Decree No. 857, as amended 1.2, Sections 5 and 26 of Republic Act No. 11032 otherwise known as “Ease of Doing Business and Efficient Government Service Delivery Act of 2018" 1.3. PPA AO No. 04-2021 1.4. Other Regusiony Retorencos Customs Administrative Order (CAO) 01-2015 on the Shortening of Period for Re-Export of Empty Containers from 150 to 90 days ii, United Nations Office of Drugs and Crime (UNODC) Joint Port Control Unit (JPCU) Initiatives ili, United Nations Office of Drugs and Crime-World Customs Organization (UNODC-WCO) Container Control Programs (CPP) iv. United Nations Centre for Trade Facilitation and Electronic Business (UNCEFACT) Smart Container Specifications es OBJECTIVES 2.1. To prescribe the implementation of operational guidelines on the registration and monitoring of containers pursuant to PPA AO No. 04- 2021 2.2 To streamline the procedures covering all activities related to the entry, scheduling, loading, unloading, release and movement of all containers originating from foreign ports entering and leaving ports under the administrative jurisdiction of PPA. [A Bonitaco Dive, Soum Harbor, Por Awa, Mania 1018 Philipines Box 436 Hania, Pmppines Tol. No. (4832) 954-8800 "Fat No (632) 527-4955, \Websto: wan ppa com23 24 25 26 27 28 29 2.10 21 2.12 To adopt necessary measures to help remedy congestion in ports under the jurisdiction of PPA and to implement PPA’s broader function of total Port district development, by helping alleviate storage problems at the Ports through the provision of shared facility for empty containers. To implement and institutionalize the container identification, accountability, and protection program to demonstrate PPA’s commitment to internationally agreed standards specified by the CCP- UNODC. To help prevent the use of foreign-owned containers in the commission of unlawful acts such as terrorism, human trafficking, illegal drugs and narcotics trade, arms smuggling, technical smuggling, and all such criminal activities as classified by the CCP-UNODC To assist law enforcement efforts in the discovery and deterrence of crimes and threats to public safety and national security. To help provide credible and auditable data to PPA about foreign-owned containers’ ownership and accountability, when they enter or leave the ports under the administrative jurisdiction of PPA, by means of monitoring container movement, location, utilization, storage, and dwell- time. To help reduce the cost of transporting goods by requiring container insurance coverage for containers required to be registered, in lieu of the more costly container deposit fees. To monitor actual dwell time of all foreign-owned containers and avoid exceeding the dwell time limit provided under existing law. To assist terminal operators or container yard operators in managing and planning the capacity of their container yard facility in order to efficiently use the terminals for inbound and outbound laden containers. To provide all stakeholders with reliable container monitoring information without compromising security, propriety, trade secrets, and data privacy laws. To provide a whole-of-government approach in container registration and monitoring by coordinating with authorized government agencies, with information to streamline and automate related processes.3. SCOPE This Order shall apply to all foreign-owned containers originating from foreign ports that will be unloaded at government and/or private ports under the administrative jurisdiction of PPA. 4, EXCEPTIONS 44 42 This Order shall not apply to foreign or locally owned container assets that have entered or are scheduled for re-exportation prior to the effectivity of this guidelines, The following containers are required to be registered in the TOP-CRMS, however, monitoring of containers shall NOT APPLY: 424 4.2.2 4.2.3 4.2.4 4.2.5 Containers originating from foreign ports that do not leave the port of discharge such as, but not limited to, containers classified for foreign transshipment, Return-on-Board (ROB), Foreign Cargo Remaining on Board (FROB). The monitoring of these containers. shall be limited only to its inclusion in the pre-arrival registry of inbound containers uploaded by each shipping line into the TOP- CRMS, at least 48 hours prior to vessel arrival and shall be indicated as ROB and FROB Containers that do not leave the operationally-controlied environment of a PPA-authorized container yard operator and containers which shall be moved to other premises or facilities controlled by the same operator, but are not discharged for delivery to importers or consignees. Containers that are unloaded or enter economic zones under the jurisdiction of the Philippine Economic Zone Authority (PEZA) and other freeport zones. However, containers leaving or exiting any PEZA jurisdiction shall be subject to container monitoring immediately after exiting PEZA facility Containers onboard vessels scheduled to dock and are to be unloaded in ports that are not within the jurisdiction of the PPA. Containers stored in shipping line-designated container yard that are scheduled for re-export prior to the lapse of the 90-day maximum dwell time period’ and conveyed or transported to the PPA designated container re-export staging facility at least 72 hours prior to the scheduled loading and departure date, or directly conveyed to the port of departure for loading onto the designated vessel.5s DEFINITION OF TERMS 5.1 5.2 ory 5.4 5.5 5.6 Container — shall refer to an article of transport equipment (lift-van, movable tank or other similar structure): i. fully or partially enclosed to constitute a compartment intended for containing goods; ii. of a permanent character and accordingly strong enough to be suitable for repeated use; ili, specially designed to facilitate the carriage of goods, by one or more modes of transport, without intermediate reloading; iv. designed for ready handling, particularly when being transferred from one mode of transport to another; v. designed to be easy to fill and to empty; and vi. having an internal volume of one cubic meter or more; The term "container" shalll include the accessories and equipment of the container, appropriate for the type concemed, provided that such accessories and equipment are carried with the container. The term “container” shall not include vehicles, accessories or spare parts of vehicles, or packaging. Demountable bodies, are to be treated as containers;? TOP-CRMS Fee ~ shall refer to the amount to be paid by the shipping line or importer/consignee for the services of CRMS. Container Registration and Monitoring System (CRMS) ~ shall refer to the electronic system adopted and implemented by PPA to monitor and track the location of all foreign-owned containers, originating from foreign ports, entering and leaving the ports under the administrative jurisdiction of PPA. Container Staging Facility — shall refer to a designated area or facility used for stacking and storage of empty containers for re-export, such as, container depots, warehouses, or other areas accredited and authorized by the PPA Discharge — shall refer to the process of releasing containers from the port premises and designated depot. Data Protection Officer (DPO) ~ shall refer to the assigned officer of the PPA in accordance with the Data Privacy Act of 2012. 2 1972 Customs Convention on Containers, Chapter 1, Article 1 (c)57 5.8 5.9 5.10 5.11 5.12 5.13 Foreign Ports — shall refer to all ports outside Philippine waters. Inactivity — shall refer to the period of non-use of profiles created for the use of TOP-CRMS. Insurance Service Provider — shall refer to an insurance company which has obtained a certificate of authority from the Insurance Commission pursuant to The Insurance Code of the Philippines, and duly accredited by PPA to provide container insurance for foreign-owned containers entering and leaving the ports under the administrative jurisdiction of PPA. Non-Vessel Operating Common Carrier (NVOCC) - a company who performs all services of an ocean carrier except without operating the vessels. Return-on-Board (ROB) — shall refer to foreign cargo arriving at the port of discharge and bound for return to its port of origin due to a certain circumstance as per initial schedule or as requested by the customer.? Third-Party systems shall include systems from the following types of authorized institutional users and groups: + Internal systems of PPA business units * Systems from enrolled government oversight, regulatory, revenue, border protection, and law enforcement agencies * Enrolled insurance companies duly accredited by the Insurance Commission * Enrolled government depository and private commercial or universal banks * Enrolled payment gateway or payment facilitators + Enrolled 3PL / 4PL logistics services providers, with permit to operate issued by PPA * Enrolled transport trucking/trucker services and operators with accreditation issued by PPA to port service providers + Enrolled port and/or terminal operators with accreditation issued by PPA to port service providers Trusted Operator Program (TOP) - shall refer to the implementation of a know-your-customer (KYC) mechanism that aims to help eliminate redundant procedures in container registration and monitoring. 6. DELINEATION OF RESPONSIBILITY 64 62 > wamw.cbp.gov PPA shall govern the operation and implementation of the CRMS. The Port Manager of the concerned Port Management Office (PMO) shall maintain an updated list of accredited trucking companies and its registered vehicles under their area of jurisdiction.6.3 64 6.5 6.6 67 68 Using the TOP-CRMS, the concerned PMO shall remotely monitor the location of foreign-owned containers and ensure that the 90-day period prescribed for their re-export is observed, in accordance with existing rules and regulations issued by the Bureau of Customs (BOC). The Information and Communication Technology Department (ICTD) shall ensure uninterrupted availability and accessibility of the CRMS. There shall be accredited Insurance Service Providers which shall be authorized to provide container insurance in lieu of container deposit. The container insurance shall ensure the return of empty containers to the shipping line designated container yard/depot or to the PPA designated Container Staging Facility The CRMS shall be operational seven (7) days a week and twenty-four (24) hours a day, with an uptime reliability or service level of at least 99% and must have strong software security and data protection measures in place. The list of foreign-owned empty containers enrolled in the TOP-CRMS that continue to remain in country for more than 90 days from the date of discharge of the last package shall be immediately transmitted to the Boc. All the data collected and processed using the CRMS are the exclusive property of PPA. Any request for access to data that have been collected and processed using the CRMS shall be subject to approval by the PPA designated project manager / alternate representative, and subject to the Data Privacy Act of 2012, and to existing data sharing policies of PPA. a GENERAL PROVISIONS on PROCEDURES. Tale 7.2. 7.3, 7.4. Consistent with the objective to establish explicit attribution across all natural or juridical persons transacting business through, and operating within PPA ports, this section details the general procedures of the TOP- CRMS, A comprehensive standard procedural operations reference guide for TOP-CRMS shall be issued by PPA. Container Registration — Foreign-owned containers originating from foreign ports that enter or leave the ports under the administrative jurisdiction of PPA shall be registered to the TOP-CRMS. Container Monitoring - The PPA shall monitor the movement and utilization of all foreign-owned containers while the containers are within the Philippines. Container monitoring covers the following conditions or use contexts:775. 7.76. Insurance Service Providers are required to send a digitally- signed copy of the container insurance policy to the policy owner and the beneficiary (shipping line / container owner). PPA shall require information on the amount of container insurance coverage and amount of premium paid by the importer. The other details of the container insurance policy shall be between the Insurance Service Provider and the policy owner. 7.8. Use of Container Staging Facility 784 7.8.2. 7.8.3. 7.84. 7.8.5. 7.8.6. The Container Staging Facility shall be a shared service facility to be provided by PPA and other container depot or container yard owned and operated by the PPA Terminal Operators, and enrolled in the TOP, which shall serve as a staging facility for empty foreign-owned containers that are scheduled for re-export. All empty foreign-owned containers scheduled for re-export must be registered using the TOP-CRMS, at least 4 days prior to the estimated date of departure. At least 72 hours prior to departure, the empty containers for re-export are required to be endorsed to a PPA-designated Container Staging Facility. The cost of conveying / transporting containers into and out of the PPA designated Container Staging Facility shall be on account of the exporting party. CRMS users may store empty containers at the PPA designated Container Staging Facility, free of charge, for up to 3 days, provided, that the storage service is availed within 90 days from entry (inbound/importation) into ports under the administrative jurisdiction of PPA. The cost of conveying empty containers to and from the shipping line designated container depot shall be on account of the exporting party. Empty containers staged/stored at the PPA-designated Container Staging Facility beyond 3 days, but not more than 90 days, shall incur additional storage charges, the amount of which shall be determined and subject to existing approval procedures by the PPA. 7.9. Trusted Operator Program (TOP) 7.94 The TOP is intended to institutionalize a trusted environment through zero-trust mechanisms by requiring CRMS users to undergo due diligence processes such as, TOP enrollment and submission of necessary documentary requirements as75s 78. 77. a. Conveyance from the port of discharge to the location designated by the importer/consignee/shipping line. b. Conveyance from the port of discharge to the point of entry of a port which is not under the jurisdiction of PPA, c. Conveyance from the location designated by the consignee on record to the container storage facility designated by the shipping line which owns the container. d. Conveyance from container storage facility designated by the shipping line which owns the container to any point or location in the Philippines, provided that the container is within the total maximum allowable dwell time. e. Conveyance from the container storage facility designated by the shipping line which owns the container to the Container Staging Facility authorized by PPA. f. Conveyance of empty containers scheduled for re-export from the Container Staging Facility authorized by PPA to the point of entry of the port of departure. Device Issuance — Devices shall be issued to all PPA-accredited trucking companies after successful enrollment. The accredited trucking company shall be responsible for ensuring that each device is functioning, fully charged prior to any registered trip, or plugged in to a power source while conveying container. Duration and Persistency of Location Tracking — Location tracking of containers shall only be activated when conveying a container, laden or empty, from and to any location beyond the port of discharge or the container storage area designated by the shipping line. Container Insurance Availment, Policy Issuance, Provider Accreditation 7.7.1. Forwarders/brokers/importersiconsignee shall secure container insurance through TOP-CRMS. 7.7.2. PPA shall require all Insurance Service Providers to create and maintain an account in the TOP-CRMS. 7.7.3. CRMS users will have the option to choose among a list of TOP- enrolled Insurance Service Providers based on their individual or business preference 7.7.4. Proof of container insurance coverage per container unit shall be a requirement for container dischargedetermined by the PPA and, to undertake transactional audit of all previous and current transactions as may be required by the PPA. 7.10. Third-Party Systems Integration 7.10.1. To make the TOP-CRMS seamlessly integrate with external Third-Party systems, the TOP-CRMS shall provide a catalog of secured API services that shall be made accessible to extemal environments subject to approval by the PPA designated project manager / alternate representative. 7.10.2. Third-Party systems must have an enrolled account in the TOP- RMS, with a designated user who shall be responsible and accountable for all transactions or data transfers made between the Third-Party system or systems and the TOP-CRMS. 7.10.3. The owners or operators of each Third-Party system must be PPA-accredited institutions enrolled in the TOP. 7.10.3.1.Each Third-Party systems API connection shall be supported by an agreement signed by the PPA designated project manager and the extemal party. The agreement shall include details of all API artifacts, its functions, data schema, type of encapsulation, security and data protection features, request/reply to functions, 7.10.3.2. Any Third-Party system integration, interconnectivity, data sharing, and data interchange shall have prior approval of the PPA designated project manager / alternate representative. 7.11. Secure Access and Required Use of Digital Devices 7.41.1. The secure access and use of intemet-connected digital endpoint devices to facilitate operation and maintenance of the CRMS shall conform to the digital transformation program of the Philippine government, to help achieve transactional efficiency, transparency, and traceability. TOP-CRMS FEES 8.1. For the operationalization and sustainability of the TOP-CRMS, the following fees shall be collected: i. For container monitoring and the provisioning of container insurance, the importer/consignee shall be charged Nine Hundred Eighty Pesos (Php980.00), exclusive of VAT, per container.10. 11. 12. ii. For the utilization of the PPA Container Staging Facility and other container depot or container yard owned and operated by the PPA Terminal Operators, the Shipping Line/Shipping Agent shall be charged Container Yard Handling and Storage Fees (3 days) amounting to Three Thousand Five Hundred Twenty Pesos (Php3,520.00), exclusive of VAT, per container. 8.2. Containers containing entirely donations from intemational or local organizations duly authorized or registered by the Department of Social Welfare and Development or the Office of the President of the Philippines shall be exempted from payment of Container Monitoring Fee, provided that prevailing PPA rules and regulations regarding release/delivery of donations are observed TRANSITORY PROVISION All foreign-owned containers entering or leaving the ports under the administrative jurisdiction of PPA shall be covered by this AO upon its effectivity and operability of TOP-CRMS. Initially, implementation of the TOP-CRMS shall cover Manila Intemational Container Terminal (MICT) and Manila South Harbor (MSH). The TOP-CRMS will eventually be rolled out to other ports under the administrative jurisdiction of PPA. REPEALING CLAUSE All orders and issuances inconsistent with this Order are hereby repealed or modified accordingly. SEPARABILITY CLAUSE If for any reason any provision or section of this Order is declared to be invalid or unconstitutional, the other provisions not affected shall remain in force and effect. EFFECTIVITY This Order shall take effect after fifteen (15) calendar days from its publication in the Official Gazette or in a newspaper of general circulation and a copy filed with ‘the University of the Philippines Law Center. JAY DANIEL R. SANTIAGO General Manager