(CARGO HANDLING AND PORT OPERATIONS)

Learning Objectives: 1. Explain the guidelines for the entrance and clearance of foreign vessels. 2. Distinguish between
the procedures on customs transit, transshipment, and transfer of cargoes to outside CY-CFS.

VESSEL SUPERVISION AND CONTROL SYSTEM

CMTA, Sec 202. Functions of the Bureau.

 (f) Supervision and Control over the Entrance and Clearance of Vessels and Aircrafts Engaged in Foreign Commerce.

 (h) The Bureau shall exercise supervision and control over the entrance and clearance of vessels and aircrafts engaged
in foreign commerce; and to this end shall have supervision and control on all import and export cargoes, landed or
stored in piers, airports, wharves and customs facilities and warehouses (CFWs).

CMTA, Sec 215. Unhampered Access to Customs Officers Exercising Police Authority.

 Port and airport authorities in all ports of entry shall provide customs officers exercising police authority with
unhampered access to all premises within their administrative jurisdiction.

Sec 1202. Control of Customs Officer Over Boarding or Leaving of Incoming Vessel or Aircraft.

 Upon the arrival in port of any vessel or aircraft engaged in foreign trade, it shall be unlawful for any person, except
the master of the vessel or pilot-in-command, consul, quarantine officers, customs officers, or other duly authorized
persons, to board or leave the vessel or aircraft without permission of the customs officer concerned. Ports Open to
Vessels and Aircrafts Engaged in Foreign Trade. Vessels and aircrafts engaged in foreign trade shall visit designated ports
of entry only, except as otherwise especially allowed by law or applicable regulations. Every vessel or aircraft arriving
within a Customs District from a foreign port shall dock at the designated port of entry and shall be subject to the
authority of the District Collector of the port while within its jurisdiction.

Quarantine Act 2004. Pratique

 All vessels and aircrafts from foreign seaports or airports calling at any seaport or airport in the Philippines to
disembark its passengers or discharge its cargoes, or for other purposes must secure a quarantine clearance in
compliance with the health regulations. This quarantine certificate or clearance (Pratique) shall be a prerequisite to
customs clearance.

Kinds of Pratique or Clearance Issued to In-coming Vessels

 1. Free Pratique

 2. Provisional Pratique

 3. Controlled Free Pratique

 4. Radio Pratique

 5. Controlled Radio Pratique

CMTA, Sec 1208. Record of Arrival and Entry of Vessels and Aircrafts.

 A record of the date of arrival and entry of all vessels and aircrafts shall be made in the office of the District Collector in
every customs district, or in the office of the Sub-Port Collector in case of a sub-port, and kept open to public inspection.
CMTA, Sec 1209. Arrest of Vessel or Aircraft Departing Before Entry Made.

 When a vessel or aircraft arriving within the limits of a customs district from a foreign port departs or attempts to
depart before entry shall have been made, not being thereunto compelled by stress of weather, duress of enemies, or
other necessity, the District Collector of the port may cause the arrest and bring back such vessel or aircraft to the most
convenient port, and for this purpose, may call on the assistance of other agencies concerned.

CMTA, Sec 1211. Time of Unloading Cargo

 Unloading of cargo shall be commenced at any time, and shall continue without any interruption until the last package
or container has been discharged. However, unloading of cargo from a vessel or aircraft from a foreign port during non-
working hours shall be subject to the payment of service fees, dues, and charges, which shall be collected from airlines,
shipping lines, CBWs, CFWs, importers, exporters, and other stakeholders served by Bureau personnel beyond the
regular working hours, based on the actual work performed at the rate of exchange of the date the service was
rendered, if applicable. The rates of such fees, dues and charges shall be fixed by the Commissioner of Customs subject
to approval by the Secretary of Finance.

PRE-ARRIVAL (CMO 22-2010, CMTA, Sec. 1204 & 1412)

Advanced Notice of Arrival (NOA) with Estimated Time of Arrival (ETA).

 The authorized agent or representative of any vessel engaged in foreign trade entering any of the Philippine ports of
entry shall notify in writing the District Collector through a NOA submitted to the Piers and Inspection Division (PID) or
its equivalent office of the vessel’s intended arrival and all other particulars at least twenty four (24) hours in advance.
Upon receipt of the NOA, the authorized customs officer shall enter the ETA and other relevant details of the vessel into
the Advanced Electronic Manifest System.

Advance Submission of Cargo Declaration, Inward Foreign Manifest (IFM), and Consolidated Cargo Manifest (CCM).

 A true and complete copy of the cargo manifest shall be electronically sent in advance by the shipping company,
NVOCC, freight forwarder, cargo consolidator, or their authorized agents within the following cut-off period before the
arrival of the carrying vessel at the port of entry:

 a) If the transit time is more than seventy-two (72) hours, the cargo declaration, IFM, and CCM must be electronically
submitted to the Bureau within thirty-six (36) hours from the time of arrival of the vessel; or

 b) If the transit time is seventy-two (72) hours and below, the cargo declaration, IFM, and CCM must be electronically
submitted to the Bureau within twenty-four (24) hours from the time of arrival of the vessel.

Sanctions in Case of Failure to Supply Advance and Requisite Manifests.

 The party failing to submit the required information within the period as prescribed in the preceding section shall be
subject to the payment of imposable fines in accordance with Section 8.6. of this CAO without prejudice to whatever
additional recourse the BOC may pursue against the delinquent shipping line or NVOCC or consolidator or co-loader or
break-bulk agent. If the e-IFM is submitted late, the e-CCM shall be accepted without penalty provided that the
submission in the customs Advanced Electronic Manifest System shall not exceed twenty- four (24) hours after the eIFM
is registered by the office of the Deputy Collector for Operations. This same privilege shall apply in case the e-IFMs are
not validated on in time. e.g. due to system errors or due to late encoding of date of last discharge.
 ARRIVAL (CMO 22-2010, CAO 1-2016, CMTA, Sec. 1221,1202,1203,1204,1205, & 1206)

Entrance of Vessel from a Foreign Port

 Upon arrival of a vessel from a foreign port, the master of the vessel shall immediately:

 a) Report its arrival to the District Collector at the port of entry or to the authorized customs officer detailed to meet
the vessel at the end of sea passage;

 b) Accomplish the “Oath of Entering Vessel from a Foreign Port” with payment of the Customs Documentary Stamp
(CDS), in two (2) copies and submit to the office of the PID or its equivalent office within twenty-four (24) hours.

Customs Boarding Team and Boarding Formalities.

 The vessel upon arrival from a foreign port at the port of entry and after the issuance of the Quarantine Certificate
(Pratique) by the Bureau of Quarantine shall be boarded by the Customs Boarding Team duly assigned by the Chief, PID
or its equivalent office through a valid Assignment Order in the following sequence:

 a) Customs Boarding Team;

 b) Immigration Officer; and

 c) Department of Agriculture or Plant / Animal / Fisheries Quarantine Representative, as required.

Documents to be produced by Master upon Entry of Vessel.

 a) Quarantine Certificate (Pratique);

 b) Clearance of vessel from last port of call;

 c) Two (2) copies of the vessel’s general declaration;

 d) Original manifest of all cargoes destined for the port, to be returned with the endorsement of the boarding officers;
 e) Three (3) copies of the original manifest, one of which upon certification by the boarding officer as to the
correctness of the copy, shall be returned to the master;

 f) A copy of the cargo stowage plan or hatch list;  g) Two (2) copies of the store list;

Documents to be produced by Master upon Entry of Vessel.

 h) Two (2) copies of the passengers list;

 i) Two (2) copies of the crew list;

 j) Two (2) copies of all through cargo manifest for deposit with the customs officer who has jurisdiction over the vessel
while in port;

 k) The passengers and baggage manifest containing the names of all foreigners in conformity with the requirements of
the immigration laws in force in the Philippines;

 l) Two (2) copies of the original duplicate of fully accomplished bills of lading together with the copy of the Load Port
Survey Report (LPSR) for bulk and break-bulk shipment;
Documents to be produced by Master upon Entry of Vessel.

 m)Shipping goods and register of the vessel of Philippine registry;

 n) Two (2) copies of the narcotics & dangerous drugs list;

 o) Two (2) copies of the bonded store list;

 p) Two (2) copies of the mail or parcel list;

 q) Two (2) copies of the firearms & ammunition list;

 r) Two (2) copies of the crew’s declaration list; and

 s) Such other related documents

Contents of the Inward Foreign Manifest (IFM) and Consolidated Cargo Manifest (CCM)

 a) Port of discharge;

 b) Customs registry number;

 c) Bill of lading number;

 d) Marks and numbers of cartons, drums, boxes, crates and others forms of protective packaging;

 e) Container and seal number if containerized and initials FCL, if full container load, and LCL, if less container load;

 f) Number of packages;

 g) Kinds of packages e.g. cartons, boxes, crates, drums, etc;

 h) Contents of description of cargo;

 i) Shipper;

 j) Consignee;

 k) Gross weight in metric tons;

 l) Measurement in cubic meters;

 m) Port of origin;

 n) Notify party;

 o) Voyage number;

 p) Carrier identifier;

 q) Place of registry of vessel;

 r) Date of registration; and

 s) IMO number of vessel.

 Cargoes or containers not listed in the IFM but are otherwise recorded in the stowage plan, shall be covered by a
supplemental manifest which shall be submitted not later than forty-eight (48) hours from date of discharge of the last
package from the vessel. Cargoes or containers not listed in both the IFM and stowage plan shall be considered as
unmanifested subject to seizure and forfeiture

CMO 19-2015 (Revised Procedures for the Mandatory Submission of Electronic Sea Manifest in the E2m)

 Shipping Lines shall submit their e-IFM while consolidators and forwarders shall submit their e-CCM to the BOC
through VASPs. EMS shall send feedback messages to the VASPs on the result of validation. The VASP’s shall in turn,
transmit these messages to the originating shipping lines, forwarders and consolidators.

 Amendments to the submitted manifest by shipping lines, forwarders, and consolidators, before the cut-off time, as a
matter of right by sending a new e-manifest to update the previous one.

UNLOADING OF CARGOES (CMO 22-2010, CMTA, Sec. 1210, 1212, & 1213)

Permits for Discharge.

 Unless the vessel has put into “in distress”, the authorized customs officer shall, upon placing the vessel under
customs surveillance and control, issue a “General Permit” for the discharge of the cargoes. Such permit however, shall
not constitute an authority for the loading of export cargo or delivery of import cargo at ship’s side without the requisite
permits as may be required under existing rules and regulations.

Discharging or Unloading of Containerized Cargoes.

 Unloading of containerized cargoes shall be authorized only upon issuance of a General Permit by the authorized
customs officer. During unloading, the authorized customs officers on board foreign vessel shall:

 a) Verify the container number/s against the discharging sequence;

 b) Check or inspect if container seals are intact; and

 c) Submit a Discharging Report to the Chief, PID or its equivalent office upon completion of the unloading operation.

Discharging or Unloading of Bulk and Break-bulk.

 No bulk and break-bulk cargoes shall be discharged unless they are duly covered by Load Port Survey Report (LPSR).
For this purpose, the accredited cargo surveying company shall provide the authorized agent copies of the LPSR at the
port of origin.

Unloading of Bulk and Break-bulk Cargoes at Shipside.

 In addition to the General Permit to discharge and the LPSR, shipside discharge of cargoes shall be authorized only
upon presentation of necessary Shipside Permit issued by the Deputy Collector for Operations.

Discharge of Last Package.

 Upon completion of the discharge, the Customs Officer on board shall accomplish a Certificate of Date of Last
Discharge bearing the seal of the master of the vessel to be submitted at the office of the chief PID or its equivalent
office for recording in the Advanced Electronic Manifest System.
Sea Stores

 Store list shall be kept under Customs seal in the presence of the Ship Officer. Subject to penalties, Customs seal so
affixed shall not be broken while the vessel is within the jurisdictional limits of the Philippines except while on port and
only upon written application to withdraw supplies signed by the master of the vessel and approved by the District
Collector. Only the authorized customs officer shall break the seal and allow the withdrawal of such quantities as may be
authorized and re-seal the sea store compartment after such withdrawal.

Discharge of Ballast.

 When not brought to port as goods, ballast of no commercial value may be discharged upon permit granted by the
District Collector and subject to existing DENR rules and regulations.

Shifting of Cargoes

 Shifting of cargoes shall be allowed upon written request of the master of the vessel or authorized agent duly
approved by the Deputy Collector for Operations.

Direct to Truck Transfer

 Direct transfer of container or cargo from vessel to truck shall be allowed upon written request of consignee or
importer duly approved by the Deputy Collector for Operations.

Refuse and Garbage

 No refuse, garbage and the like shall be thrown or jettisoned inside any harbor more especially while the ship is
alongside piers. All damaged and rotten cargoes shall be disposed of upon arrangement and permission of the Collector
of Customs and at the area designated by said official or duly authorized representative after consultation with the
Philippine Coast Guard or the Department of Environment and Natural Resources (DENR).

Unloading of Vessel in Port from Necessity

 If a situation arises where the unloading of the vessel is required pending sojourn in port, the District Collector shall,
upon sufficient proof of the necessity, grant a permit therefore under such terms and conditions he may deem proper,
and the goods shall be unloaded and stored under the supervision of authorized customs officers.

Unloading of Vessel in Port from Necessity

 At the request of the master of the vessel or the owner thereof, the District Collector may grant permission to enter
the port and pay duties, taxes, and other charges on, and dispose of, such part of the cargo as may be perishable in
nature or as may be necessary to defray the expenses attending the vessel. The unloading of this class of cargo shall be
subject to the same rules and regulations prescribed for cargoes destined for the port. Unless authorized by a Shipside
Discharge Permit, such cargoes shall be discharged unto the pier. If discharged into lighters, such lighters must be of the
closed type and must be secured, locked, and sealed with Customs seal and must remain under guarded until final
disposition thereof is made. Upon departure, the cargo, or a part thereof, may be reloaded on board the vessel, and the
vessel may proceed with the same to its destination, subject only to the charge for storing and safekeeping of the goods
and the fees for entrance and clearance. No port charges shall be collected on vessels entering through stress of
weather, duress or other urgent necessities.
 DEPARTURE OF VESSEL (CMTA, Sec. 1214, 1215,1216, 1217, & 1218)

Clearance of Vessel for Foreign Port.

 a) A bill of health from the quarantine officer or officer of the public health service in the port;

 b) Three (3) copies of the manifest of export cargo, one of which, upon certification by the authorized customs officer

 c) as to the correctness of the copy, shall be returned to the master of the vesc) Two (2) copies of the passengers list,
showing foreigner and other passengers;

 d) The register and shipping goods, if the vessel is of Philippine registry;

 e) Clearance issued by the last port of entry; and

 f) A certificate from the Philippine Postal Corporation to the effect that it received timely notice of the sailing of the
vessel: Provided, that the District Collector shall not permit any vessel to sail for a foreign port if the master of the vessel
or agent thereof refuses to receive bags of mail delivered to the same by the Philippine Postal Corporation for transport
upon reasonable compensation. In case the Postmaster General and the master of the vessel or agent do not come to an
agreement concerning the amount of the compensation to be paid for the carriage of the mail, the matter shall be
submitted for decision to a Board of Referees to be composed of three (3) members appointed, respectively, by the
Philippine Postal Corporation, the agency of the company to which the vessel concerned belongs, and the Bureau, who
shall fix a reasonable rate of compensation.

TRANSSHIPMENT (CMO 12-2019)

TRANSSHIPMENT

• Goods intended for transshipment shall not be subject to the payment of duties and taxes: Provided, that the goods
declaration for transshipment particularly indicates such nature of goods, duly supported by commercial or transport
documents or evidence as required by the Bureau.

• Goods intended for transshipment must be loaded in the exporting means of transport within thirty (30) calendar days
from the date of arrival. The Bureau shall allow an extension of such period for valid causes.

TRANSSHIPMENT

• Extension may also be granted for fifteen (15) calendar days for non-perishable goods or five (5) calendar days in case
of Perishable Goods upon approval of the Bureau for causes other than those enumerated.

• In case of failure to load within the period allowed, the cargoes for transshipment shall be shipped back to its port of
origin at the expense of the carrier.

• Transfers or shifting of transshipment cargo from the carrier to the designated CFW and vice versa shall be
accompanied by a transfer note.

• The handling and movement of transshipment cargoes from the carrier to and within the CFW shall be under
continuous supervision and subject to the rules and regulations issued by the Bureau to include safeguard measures to
ensure that cargoes for transshipment shall not be diverted to the domestic market.
TRANSSHIPMENT

• Hazardous and nuclear wastes, weapons of mass destruction, nationally controlled goods without the requisite prior
authorization from the appropriate regulatory agency, if applicable, and other goods subject of prohibitory laws or
international conventions wherein the Philippines is a signatory, e.g. Basel Convention, CITES, etc., shall not be
discharged from the carrier even if for transshipment purposes

• Goods of the above nature discharged at the port shall be seized by the Bureau and proceeded against in accordance
with rules and regulations without prejudice to the provisions of Title XIV of CMTA, if applicable.

CUSTOMS TRANSIT (CMTA, Sec 816, 600, & 602)

CUSTOMS TRANSIT

 1. The Bureau shall allow Goods intended for warehousing at the Port of Entry, or for Outright Exportation at the point
of exit, or for Admission to Free Zones, to be transported under Customs Transit from the Office of departure provided
that any conditions and security required by the Bureau are complied with.

 2. The Bureau shall not allow the Transit of Goods for consumption at the Port of Discharge except if the Transit is
made under R.A. 10668 known as “An Act Allowing Foreign Vessels to Transport and CoLoad Foreign Cargoes for
Domestic Transshipment and for Other Purposes” subject to conditions and requirement that the Bureau may
prescribed.

Obligation of Party Responsible for Customs Transit.

 Upon arrival of all of the cargo which is the subject of a Transit declaration to its final destination or point of exit, the
Deputy Collector for Operations in the final destination or point of exit, his or her equivalent, or a person authorized by
him or her, shall tag in the system the arrival of the Transit Goods.

 The party responsible for the compliance of the obligations imposed on Customs Transit shall ensure that the Goods
are presented intact and in due course at the customs Office of destination. Failure to comply with the aforementioned
obligations or likewise failure to follow a prescribed itinerary r period for delivery of the Goods may immediately subject
the Goods to the corresponding duties, taxes and other applicable fines, penalties, and surcharges.

Carrier's Security and Amount. Carriers that transport imported

 Goods that shall be placed under customs transit from a port of entry to other ports, shall post a general
transportation security amounting to at least fifty thousand pesos (₱50,000.00).

OUTSIDE CY-CFS (CMO 43-2010)

Pre-lodgment

 1. The CBW/CY-CFS Operator applies for transit/transfer permit through VASP.

 2. VASP then generates message based on the data encoded by the CBW/CY-CFS Operator and routes this message to
the BOCVASP gateway.

 3. The gateway operations performed here are the same in the pre-lodgment process. The BOC-VASP gateway receives
and validates the message from the importer/VASP.

 4. Transit/Transshipment system receives application for transit/transfer permit from the BOC-VASP gateway and
processes this application.
 5. TSS verifies that the applicant is in the client registration database and is a registered CBW transit facility operator.

 6. TSS compares the master bill of lading with the transit permit.

TERMS
1. means a place with sufficient depth of water where vessels anchor or may ride at anchor or may ride at anchor within the
harbor.
2. the area between the transit shed and quaywall that is used for working cargo
3. means a naturally or artificially enclosed or nearly enclosed body of water in free communication with the sea.
4. the part of the pier/wharf that is occupied by a vessel, or any place in which a vessel may lie at anchor or at a dock.
5. means a strong post on a ship or dock for holding a hawser fast.
6. means the extreme forward end of a vessel
7. means floating object moored to the bottom to mark a channel, anchor, shoal, rock, etc.
8. liquid or dry goods shipped in bulk, not packed or bundled in separate units.
9. means equipment used to carry containers from one place to another.
10. includes locks, cuts, entrances, graving docks, inclined planes, slipways, quays, and other works and things appertaining to
any dock.
- A structure extending alongshore or out from the shore into a body of water, to which boats may be moored.
11. means a dock from which the water can be temporarily excluded, in order to effect repairs to hulls and keels of ships or
vessels.
12. includes harbor fees, tonnage and wharfage dues, berthing charges, and port dues and any other dues or fees imposed.
13. include animals, carcasses, baggage, and any movable property of any kind.
- Things to be transported, as distinct from passengers.
14. means a flat-bottomed boat or barge used in loading or unloading cargo to or from vessels.
15. a record carried by a vessel, containing information with respect to the vessel’s cargo, passengers, and other matters
required by regulation.
- A shipping document used by customs personnel reviewing a particular transport vehicle's intended trip that
summarizes all bills of lading that has been issued by the carrier or its representative for that particular
shipment.
16. means all navigable portions of the seas, estuaries, and inland waterways.
17. means a place where ships may anchor or tie up for the purpose of shelter, repair, loading or discharge of cargo, or for
other such activities connected with water-borne commerce, and including all the land and water areas and the structures,
equipment and facilities related to these functions.
18. a domestic port open to both domestic and international trade.
-A place where foreign goods may be cleared through a customhouse.

19. includes the seaport and its facilities of wharves, piers, slips, docks, dry docks, bulkheads, basins, warehouses, cold storage,
and loading or unloading equipment.
20. means a building or shed which is situated at or near a quay, wharf or pier, and is used for the temporary or short-term
storage of goods in transit, or to be shipped or discharge from a vessel.
- The shed on a wharf is designed to protect cargoes from weather damage and is used only for short-term
storage.
21. includes rails and railcars, highways, wheeled vehicles, bridges, tunnels, tramways, subways, passenger or cargo vessels,
ferryboats, lighters, tugs, barges, scows, ramps, and any kind of facility in use or for use of the transportation, movement,
or carriage of goods or passengers.
22. includes any ship or boat, or any description of a vessel or boat.
-A watercraft bigger than a rowboat.
23. means a building or shed used for the storage of cargo.
24. means a continuous structure built parallel to along the margin of the sea or alongside riverbanks, canals or waterways
where vessels may lie alongside to receive or discharge cargo, embark or disembark passengers, or lie at rest.
25. A structure (such as a breakwater) extending into navigable water for use as a landing place or promenade or to
protect or form a harbor.
26. A device, normally made of metal, used to connect a vessel to the bed of a body of water to prevent the craft from
drifting due to wind or current.
27. The official department that administers and collects the duties levied by a government on imported goods.