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COURSE SUBJECT : CUSTOM OPERATION & CARGO HANDLING

COURSE DESCRIPTION :

Handling cargos by arrastre under the supervision of the Bureau of Customs

and the Philippine Ports Authority and the legal provisions on common
carriers.

COURSE OBJECTIVES:

At the end of the course, the learners would be able to:

1. Have thorough knowledge of loading, discharging and handling of cargo

2. Have thorough knowledge of relevant national and international rules
and regulations regarding to loading, discharging, handling and stowage
of cargo have knowledge cargo transport at sea in a historical
perspective, the technological development within the subject area and
have knowledge of the social, environmental, safety, ethical, and
economical consequences regarding carriage of cargo

COURSE OUTLINE:

I. Cargo Handling
a. Brief History
b. Nature and Concept
c. Definition of Terms
d. Modes of Transportation in Cargo Handling
e. Factors Determining Type of Cargo Handling Equipment
f. Different Types of Cargo & Its Equipment
II. Philippine Port Authority (PPA) Administrative Order 10-1981 – General
Conditions on all Contracts/Permits for the Management and Operations
of Cargo Handling Services (Stevedoring and Arrastre Activities)
III. Customs Modernization and Tariff Act (CMTA) RA 10863 Title XII Section
1200 – 1225 – Customs Service Providers
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IV. Republic Act 1371 – An Act to Define, Fix, and Regulate the Amount of
All Charges and Fees in Philippine Ports, Other than Customs Duties,
Internal Revenue Taxes and Tonnage Dues
a. Harbor Fee
b. Wharfage charge
c. Berthing charge
d. Storage charge
e. Arrastre Charge
V. Civil Code of the Philippines Article 1732-1766 – Common Carriers
VI. Commonwealth Act No. 65 – Carriage of goods by Sea Act
VII. Various Technical terms in Port Operations

References:
Revised Harbor Regulations
Port Operation Manual
Airport Operation Manual
Revised Civil Code of the Philippines
Code of Commerce
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I. CARGO HANDLING

BRIEF HISTORY. Cargo handling has been in the Philippines since the time of our
ancestors. It started with the popular barter trade of the Malays wherein goods
were transferred from one place to the other in small bancas or other ordinary
watercrafts. It continued until the time of the Spaniards when small sized boats to
medium sized vessels were used. Cargadors are what the Spaniards used to call
the Filipino Indios to carry goods from one point of the pier to the other.
Eventually because of the demand of the larger trade routes, mobility and
facilitation, for the transfer of goods was necessary and the nature of cargo
handling became more complicated.

The Philippines were very much a part of this modernizing scenario. The capital
city and the historic main port of the archipelago, Manila, was located on the
largest island of the Philippines, Luzon, with its enormous hinterland. The opening
of the Luzon railway in 1892 significantly reduced the transportation costs of
products destined for export: sugar, rice, abaca, copra, tobacco and, in a minor
way, coffee.13 The railway transported these products at reasonable prices both
from farms to production and consumption centers locally and internationally.
Railways also facilitated foreign and local investors in plantations to reach more
distant production centers and markets.14 The latter was vital once the
reorganization of the colony towards an export plantation economy by the
Spanish crown completed as it was designed to self-finance the budget of the
Philippines, which was very expensive to maintain for the Spanish treasury due to
the inefficiencies of long distance administration between the archipelago and
Europe.

The introduction of the railway had a dramatic effect on the economy of the
island. Manila expanded its area of influence and moved resources and
population to take advantage of the efficiencies of the rail lines. Like today's
"developmental highways," the railway established a route of development for
the region, providing the vertebra for Manila's expansion of its economic,
demographic and social influence. This line connected the most productive areas
of Luzon, close to the provinces of Batangas and Lipa, where the larger sugar
plantations were located.

A similar process occurred to the south, on Panay (its main city is Iloilo), Negros
and Cebu, located in the archipelago of the Visayas, where rice, abaca and copra
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were produced. The abaca was used for the manufacture of ropes of great
strength and resistance. The coconut oil extracted from the copra was used for
the extraction of glycerin and the manufacture of dynamite, a common explosive
at the end of the 19th century. The arrival of the railway to Cebu and Panay,
projected under the Spanish administration and built by the Americans in 1907,
concentrated the population near the railway lines and further promoted the
existing plantation agriculture.

Upon the arrival of the U.S. Administration, the single axis of communication of
Luzon ran along the railway built by the Spanish Administration. The main railway
line connected the cities of Manila and Dagupan, at the Lingayen Gulf, and its
operation was owned by British company (the Manila Railway Company Ltd)
which had received grants to connect the railway stations in Manila and Dagupan
with their ports. Coastal shipping was the other major transit system in Luzon late
in the nineteenth century, and its connection with rail deliveries was virtually
indispensable. The sea operations connected the internal network to
international trade, the chief source of income for the Philippine economy.
An acknowledgement of this fact as represented by the connection between the
station terminal and the dock at Dagupan, was posted on January 4, 1898 in
the Gazette of Manila from a Royal Order dated October 20, 1897, which declared
that it was not a mere tramway, but a vital source of port-related commerce.

Unfortunately, there were only three ports that allowed for international trade:
Manila, Iloilo and Cebu; the rest were in natural harbors that worked well for
coastal navigation, but were too shallow to service the heavy transport ships used
for the international transportation of goods. There, coastal shipping continued
as the main means of transporting goods during the second half of the century as
the existing road network required constant maintenance as a result of heavy
rains.

The universalization of the steamers since the mid-nineteenth century, as well as

the connection of submarine cables between Europe, Asia, Australia and the
United States and above all the opening of the Suez Canal in 1869, transformed
maritime communications and boosted export economies. Distribution of mail
and newspapers between the metropolis and its colonies motivated the move
from sailing to steam navigation. The increase in maritime traffic prompted
colonial empires to protect their coasts and ports by reducing piracy. The imperial
governments and businesses improved the ports, increasing the traffic and
responding to the burgeoning demand for consumption in Europe and the United
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States of products coming from Asia. Farms expanded and connected through
railways to ports, shipping the increasing productions, gaining productivity and
reducing costs and lead times. Telegraphs, railways and submarine cables
followed.
Notably, at the end of the Nineteenth Century we see the emergence of a network
of modernized port cities in Asia located on the main maritime trade routes,
connected by the telegraph, facilitating the growth in transit of goods, passengers
and emigrants, and even colonial era strategic thought, East and West. That
development was spurred by the need to serve larger steel hulls and the
construction of concrete docks in modern Asia's port facilities such as at Singapore
and Hong Kong, which in turn helped create the cosmopolitan economic and
cultural centers they are today. This study has demonstrated that the
development of ports in the Philippines may serve to help illuminate this
process. (Cubeiro, 2017)

Looking at Philippine history, ports have been centers of commerce that became
vital to the survival of a community dating back to the very beginning of maritime
travel. Back then, trade between neighboring nations was much more dangerous
and lengthy; they used simple equipment and techniques in carrying goods from
one area to another. And even in the modern times Philippines is still striving to
serve shippers who are trying to get goods to the consumer safely and quickly.

Thus it is necessary to establish, develop, regulate, manage and operate a

rationalized national port system in support of trade and national development.
One who will supervise, control, regulates, construct, maintain, operate, and
provide such facilities or services as are necessary in the ports. And to prescribe
rules and regulation, procedures, and guidelines governing the establishment,
construction, maintenance, and operations of all other ports, including private
ports in the country.

NATURE & CONCEPT OF CARGO HANDLING. Cargo is transported through land,

air or water which requires special care and attention to safety in order to ensure
prevention of human, material or financial loss, damage and contamination of
cargo.

Depending on the type of cargo, different cargo handling and securing equipment
are used to hold shipments in place while cargo handling or transporting. If the
safety of the cargo is not taken seriously, the consequences are very serious and
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irreversible.

Safety cargo involves safe packaging of cargo containers, prevention of tampering

of the cargo container and safety transporting of the container to its final
destination.
CARGO HANDLING refers to the overall activities in warehouses and logistics
centers, such as loading and unloading cargo, transporting cargo, warehousing,
picking, and sorting.

 The main work in cargo handling is separated into six tasks: assortment,
stacking/taking inventory, transportation, storage (allocation), sorting, and
picking. These tasks greatly effect productivity and quality in logistics. Cargo
handling is a very important part of logistics, and losses in cargo handling
directly increase logistics costs.

• But, humans still have an important role to play in cargo handling, which
essentially throws the doors opens for a diverse and serious range of safety
concerns.

• It’s important that shipping personnel are well aware of the various
considerations that need to be kept in mind to perform cargo handling
operations on ships with utmost safety. Knowing the essential safety features,
and making appropriate use of materials handling equipment are just some of
the ways you can make sure you’re able to handle cargo safely on ships.

Ports in the Philippines have a relatively small number to make a significant

contribution to international trade but the quality of port infrastructure rank for
the Philippines in the WEF Global Competitive Report is the lowest among the
ASEAN-6 (Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam).
With proper equipment and process in cargo handling it will reduce the traffic of
containers in the port and will avoid port congestion that slowed down trade and
hampers economic growth.

The Global Competitiveness Report assesses the competitiveness landscape of 144

economies, providing insight into the drivers of their productivity and prosperity.
The report remains the most comprehensive assessment of national
competitiveness worldwide, providing a platform for dialogue between
government, business and civil society about the actions required to improve
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economic prosperity. Competitiveness is defined as the set of institutions, policies

and factors that determine the level of productivity of a country. The level of
productivity, in turn, sets the level of prosperity that can be earned by an
economy.

DEFINITION OF TERMS

CARRIER – refers to the person actually transporting goods or in charge of or

responsible for the operation of the means of transport such as airlines, shipping
lines, freight forwarders, cargo consolidators, non-vessel operating common
carriers and other international transport operators. (Sec. 102 (j), CMTA)

COMMON CARRIERS – are persons, corporations, firms or associations engaged in

the business of carrying or transporting passengers or goods or both, by land,
water or air for compensation, offering their services to the public. (Art. 1732, Civil
Code of the Phils.)

FREIGHT FORWARDER – refers to a local entity that acts as a cargo intermediary

and facilitates transport of goods on behalf of its client without assuming the role
of a carrier, which can also perform other forwarding services, such as booking
cargo space, negotiating freight rates, preparing documents, advancing freight
payments, providing packing/crating, trucking and warehousing, engaging as an
agent or representative of a foreign non-vessel operating common carrier/cargo
consolidator named in a master bill of lading as consignee of a consolidated
shipment, and other related undertakings. (Sec. 102, (aa), CMTA)

INTERNATIONAL FREIGHT FORWARDER – refers to persons responsible for the

assembly and consolidation of shipments into single lot, and assuming, in most
cases, the full responsibility for the international transport of such shipment from
point of receipt to the point of destination. (Sec. 102, (bb), CMTA)

NON-VESSEL OPERATING COMMON CARRIER (NVOCC) – refers to an entity,

which may or may not own or operate a vessel that provides a point-to-point
service which may include several modes of transport and/ or undertakes group
age of less container load (LCL) shipments and issues the corresponding transport
document. (Sec. 102, (ee), CMTA)
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GOODS – refer to articles, wares, merchandise and any other items which are
subject of importation or exportation.

GOODS DECLARATION – refers to a statement made in the manner prescribed by

the Bureau and other appropriate agencies, by which the persons concerned
indicate the procedure to be observed in the application for the entry or
admission of imported goods and the particulars of which the customs
administration shall require.

CARGO TRANSPORT (freight transport, cargo transport, freight shipping) is a

form of transport which is designed to move goods from one location to another
which are intended for commercial sale, although things like mail may also be
treated as cargo for transport purposes

MODES OF TRANSPORTATION IN CARGOS. The mode of transportation is an

important consideration when planning the shipment process. Besides the costs,
the urgency of the shipment, the value of the goods being shipped as well as the
size and weight of the goods need to be evaluated when determining the form of
transportation.

Modes of transportation are the ways, methods, vehicles and machines used to
move products from one location to another location. Logistics is a very diverse
and complex industry. It involves many modes of transportation and ways of
shipping goods. Sometimes, it may be challenging for a company to choose the
right mode of transportation to reach the best result. All modes of transportation
are important and plays a significant role in the industry. However, there are
many differences in terms of price, shipped commodities, transit distance, etc.
While some modes may be the perfect solution to one business, at the same time
may be absolutely useless to another one.

1. Water transportation is the most popular way of moving large volumes of

goods overseas. Compared to air, the ocean is a much more cost-efficient
option yet a rather slow one. This mode of transportation works best for
shippers who need to move goods on a distance longer than 400 km. Also,
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it works for oversized, hazardous, liquids, and weird-shaped freight. Ocean

shipping is common among large and mid-sized businesses because they
need global shipping on a regular basis. The freight is stacked in containers
that are later loaded onto the ships or barges. It plays a very crucial role in
the development of exports and imports of goods in the different parts of
the world.

Categories:

a. Aqueducts, which includes tunnels and canals.

b. Containers like tank car, tank ship, and tank truck.
c. Towing, it is very useful to pull a large water bag or an iceberg.

Advantages of Water Transportation

- Cheapest or easiest means of transportation.

- Goods in bulk are easy to be transported.
- Promotes foreign or international trade with port access
- Can easily carry a huge quantity of goods such as timber and coal.
- Risks capacity is very low
- Wide choice of shipping companies, allowing customers to shop around

Disadvantages of Water Transportation

- Delay in the movement of goods from one place to another.

- Performance is affected by seasonal variations.
- Can be used in a limited area of operations because it can only run on
seas or oceans.
- Unsuitable for small businesses because it carries a small number of
goods.

2. Air transportation (aviation) is the fanciest shipping mode, the air is a

reliable and extremely quick way to ship freight. Obviously, extraordinary
speed comes at a higher price. Because of its larger cost, the air is mostly
used by bigger companies but small businesses often use it too. This option
is the perfect solution for retail companies and light industries. Essentially,
there are specialized aircraft for hefty cargo but in general, planes are not
developed for handling oversized freight of unusual shape.
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Advantages of Air transportation

- Fastest means of transportation.

- Useful moving the goods in the amount of bulk.
- Each and every area of accessible.
- Vital for national security and defense.
- Very useful in earthquakes and other floods.
- Provides an efficient, regular, and quick service.
- Suitable for emergency services.

Disadvantages of Air Transportation

- Large capital investment needed.

- Not suitable for working goods.
- May be affected by rains.
- Risks of accidents are highest.
- Requires a specialized skill and a high degree of training for its working
operations

3. Roadways transportation is the most popular, the most frequently used,

and the most in-demand mode of transportation. A road is an identifiable
route way or path between two or more places. This mode of transport
helps to transfer the goods from one place to another place by road
through various methods like auto, buses, trucks, cargos, and other suitable
factors. It works for everyone, from individual shippers to large enterprises.
Road transport comes with a wide variety of equipment and shipping
modes.

a. Full truckload (FTL) shipping – one shipper takes the entire truck capacity
to move the freight

b. Less-than truckload shipping (LTL) – partial use of the trailer by several

shippers

There are also various types of trailers that serve different shipping needs:
dry van, flatbed, refrigerated etc.
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Advantages of Road Transport

- Flexible in nature.
- Helps to facilitate the movement of goods even in remote areas.
- Provides alternatives in the form of car, rickshaw, auto, cars, bus, trucks,
and so on.
- Good for transporting perishable products
- Requires low capital investments.
- Suitable for a short distance journey.

Disadvantages of Road Transport

- Not suited for long distance as it is not economical.

- Slow as compared to railways.
- Goods can be destroyed/damage due to specks of dust and pollutions.
- Time-consuming.
- Accidents and Breakdowns.

4. Railways transportation – means of transport in which the goods are

transferred from one place to another place and as well as transfers the
passenger from one place to another destination. It is preferred due to high
speed. Invariance to road transport, where vehicles run on a flat road or
surface, rail vehicles are directionally managed by the rail tracks on which
they run. Rail transport helps to provide administrative facilities to the
government. The public servants and defense forces run their mobility from
the railways.

Advantages of Railways Transport

- Economical for long distances because it can easily cover all area of
states and cities.
- Faster than roadways.
- Most suitable for carrying a bulky amount of goods and products.
- Provides proper protection from exposure to sun and dust pollutions.
- Most dependable means of transport.
- Very safest means of transport.
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- Helps to provide employment opportunities to both skilled and unskilled

individuals.

Disadvantages of Railways Transportation

- Huge capital required for construction maintenance.

- Not suitable for hilly areas.
- Not flexible in nature.
- Cost and time of terminal operations are the major disadvantages of rail
transport.
- Monopoly in nature.
- Consists much time for booking of goods through the comparison of
road transport.

5. Pipeline Transportation - used for sending the liquids and gases from one
place to another place like chemicals, biofuels, and natural gases.

Advantages of Pipelines Transportation

- Flexible in transporting liquids and gases.

- Low energy power consumption.
- Needs a limited area of maintenance.
- Safe and accident-free transport

Disadvantages of Pipelines Transportation

- Not flexible in nature.

- Restricted in a limited area of work.
- Difficult to make security arrangements for this transport.

CARGO HANDLING EQUIPMENTS

The form of cargo-handling equipment employed is basically determined by the

nature of the actual cargo and the type of packing used. The subject of handling
facilities raises the important question of mechanization.

Factors Determining Type of Cargo Handling Equipment

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1. Nature of the cargo – It may be bulk shiploads- dry or wet cargo; general
cargo involving conventional break-bulk handling methods; unitized cargo
involving containers or pallets; vehicular cargo shipments involving road
trailers requiring a ramp access to and from the ship; heavy lift cargo such
as a transformer needing a high lifting capacity crane; livestock needing
adequate provision to be made; dangerous cargo requiring isolation and
special handling requirements; over-side loading into barges, and so on.

2. Handling cost, general safety and reliability – This is usually based on a per
ton or cargo unit/container rate. A labor-intensive system tends to be much
more expensive than the capital-intensive system.

3. Resources available – at the seaport including shore-based equipment, dock

labor and their productivity and shipboard facilities such as derricks.

4. Weather conditions – Bad weather can seriously interrupt

loading/discharging operations and delay the scheduled departure of the
vessel.

5. Evaluation and cost of alternative cargo-handling systems – including their

maintenance and operational availability. This for example may involve the
extent to which lighterage is engaged to speed up cargo unloading and/or
the use of the ship derricks to quicken cargo discharge to the berth.

6. Competitive situation compared with other ports – This could influence the
tariff level to remain competitive and the attitude of the port authority to
providing the most modern cargo-handling facilities/techniques practicable.

7. Type of vessel – a decisive factor. It may be a combicarrier, Ro/Ro vessel,

OBO, VLCC, fruit carrier, cement carrier, refrigerated vessel, and so on.

8. Distribution arrangements – efficient distribution arrangements are a

paramount need and will influence the cargo-handling equipment
requirements. It may be by rail, road, inland waterways or pipeline.

9. Tidal conditions - tidal variations can influence the efficiency of cargo

handling and interrupt the transshipment arrangements through excessive
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movement of the vessel while at the berth. The closed dock system
eliminates such a risk.

10.Development of the combined transport operation is encouraging modern

cargo transshipment techniques.

11.International trade – market conditions are requiring quicker overall

transits, which demands faster cargo transshipment arrangement.

Different Types of Cargo & Its Equipment

1. Dry bulk
- power-propelled conveyor belts
- hopper
- Silo or elevators – for grain
- Grab type unloaders
- Loading boom
- Front loader

2. Liquid Cargo (crude oil and derivatives)

- Pumping equipment
- Terminal manifold
- Ship’s manifold
- Loading arm

3. General cargo (goods, merchandise, commodities) – break bulk cargo

- Cranes – floating cranes, ship’s own cargo gear (deck cranes, derricks)
- Hooks
- Loose gear – sling or strop, snotter or canvass, chain slings, vehicle
sling, pallet, plate lifting clamp, shackle
- Container fittings and lashing
- Twist lock
- Corner casting
- Cargo net
- Lifting beam
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II. STEVEDORING & ARRASTRE ACTIVITIES

Arrastre – A person/entity who/which performs portside cargo handling

operations, e.g. receiving, handling, custody, security and delivery of cargo passing
over piers, quays or wharves, transit sheds/warehouses and open storages within
the jurisdictional area of responsibility of the authorized contractor/operator.

Arrastre services and activities

1. Receive and load cargos from and to ship’s tackle with the use of dock
(arrastre) gang and cargo handling equipment
2. Check cargo by marks and quantity, acknowledge and sign tally sheets
3. Sort and pile cargo in sheds or open storage, if not taken directly to truck
4. Deliver and transfer cargo to, receive from, tail-end of consignee’s
transportation or ship’s tackle
5. Secure cargo from pilferage or losses while under its custody
6. Provide mechanical equipment for receiving, storing, delivery, transfer or
shifting of cargo
7. Provide checking services only when cargo is unloaded to and from shipside,
to and from barges along vessels

Responsibilities and Liabilities of the arrastre

1. Arrestre shall be liable for any further damage and/or shortage of the
contents of every package of bad cargos surveyed after it has been turned
over to arratre, EXCEPT only when the damage is not due to the inherent
nature of the goods or when the damaged noted cannot be easily detected,
in spite of prudent inspection.
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2. Arrastre shall not be responsible for filing report damages which cannot be
easily detected such as hook, holes stains, dents and for old and second
hand cases.

Porterage services – carriage or handling of passenger baggage, luggage and

personal belongings from the passenger’s ship accommodations to the
passenger’s vehicle or means of land transportation, or vice versa.

Stevedore – Person who provides cargo handling service. In the Philippines, the
term refers to a person of company engaged in cargo handling on-board a vessel
as opposed to arrastre.

Stevedoring services or activities – all work performed on board vessel

undertaken by stevedore gangs which are headed by gang bosses and composed
of winch men and signal men (i.e., the process or act of loading and unloading
cargo, stowing inside hatches, compartments and on deck or open spaces on
board vessel)

1. Process or act of loading and unloading cargo

2. Stowing inside hatches, compartments and on deck or open cargo spaces on
board vessel.

Related stevedoring services:

1. Rigging ship’s gear

2. Opening and closing hatches
3. Secuing cargo stored on board by lashing, shoring and trimming.

The responsibility of the arrastre operator lasts until the delivery of the cargo to
the consignee. The service is usually performed by longshoremen. On the other
hand, stevedoring refers to the handling of the cargo in the holds of the vessel or
between the ship's tackle and the holds of the vessel.
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III. CMTA-RA 10863 Title XII Section 1200-1225 – CUSTOMS SERVICE

PROVIDERS

Sec. 1200. Customs Brokers and Other Service Provider – Upon the
recommendation of the Commissioner, the Secretary of Finance shall issue the
necessary rules and regulations for the registration of customs brokers and the
accreditation of other customs service providers to ensure compliance with this
Act and the rules and regulations that shall be promulgated to implement it.

CHAPTER 2 – CARRIERS, VESSELS, AND AIRCRAFTS

Sec. 1201. 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: Provided, that no existing and
valid government contract covering the handling of import and export cargo shall
be diminished or impaired. Every vessel or aircraft arriving within a Customs
District of the Philippines 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.

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

Vessel and Over Other Vessel Approaching the Former – Upon the arrival in port
of any vessel engaged in foreign trade, it shall be unlawful for any person, except
the pilot, consul, quarantine officers, customs officers, or other duly authorized
persons, to board or leave the vessel without permission of the customs officer
concerned. It shall likewise be unlawful for any tugboat, rowboat, or other craft to
go alongside such vessel and for any person so authorized to board the vessel to
take any unauthorized person to board the same, or allow loitering near or
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alongside such vessel. Unauthorized tugboats and other vessels shall keep away
from such vessel engaged in foreign trade at a distance of not less than fifty (50)
meters.

Sec. 1203. Documents to be Produced by the Master Upon Entry of Vessel –

Upon entry of a vessel engaged in foreign trade, the master thereof shall present
the following certified documents to the customs boarding officers:
a. The vessel's general declaration
b. The original manifest of all cargoes destined for the port, to be returned
with the endorsement of the boarding officers
c. 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
d. A copy of the cargo stowage plan
e. Two (2) copies of the store list
f. One (1) copy of the passengers list
g. One (1) copy of the crew list
h. The original copy of all through cargo manifest, for deposit with the
customs officer who has jurisdiction over the vessel while in port
i. The passengers manifest containing the names of all foreigners, in
conformity with the requirements of the immigration laws in force in the
Philippines;
j. One (1) copy of the original duplicate of fully accomplished bill of lading;
k. The shipping goods and register of the vessel of Philippine registry; and
l. Such other related documents.

Sec. 1204. Manifest Required of Vessel from Foreign Port – Every vessel from a
foreign port must have on board a complete manifest of all its cargoes.

All cargoes intended to be landed at a port in the Philippines must be described in

separate manifests for each port of call. Each manifest shall include the port of
departure and the port of delivery with, the marks, numbers, quantity, and
description of the packages and the names of the consignees. Every vessel from a
foreign port must have on board complete manifests of passengers and baggage,
in the prescribed form, setting forth the destination and all particulars required by
immigration laws. Every vessel shall present to the proper customs officers upon
arrival in ports of the Philippines a complete list of all sea stores then on board. If
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the vessel does not carry cargo or passengers, the manifest must show that no
cargo or passenger is carried from the port of departure to the port of destination
in the Philippines.

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 agents within the cut-off period as may be determined by the Bureau
before the arrival of the carrying vessel at the port of entry. Upon arrival of the
carrying vessel, the shipping company, NVOCC, freight forwarder, cargo
consolidator, or their agents shall provide two (2) hard copies of the cargo
manifest to the Bureau in case the port of entry is either the Port of Manila (PoM)
or the Manila International Container Port (MICP), and one (1) copy only in the
case of the other ports of entry.

A cargo manifest shall in no case be changed or altered after entry of vessel,

except by means of an amendment, under oath, by the master, consignee or
agent thereof, which shall be attached to the original manifest: Provided, That
after the invoice and/or goods declaration covering an importation have been
received and recorded in the office of the appraiser, no amendment of the
manifest shall be allowed, except when it is obvious that a clerical error or any
other discrepancy has been committed in the preparation of the manifest, without
any fraudulent intent, the discovery of which would not have been made until
after examination of the importation has been completed.

Sec. 1205. Translation of Manifest – The cargo manifest and each copy thereof
shall be accompanied by a translation in English, if originally written in another
language.

Sec. 1206. Manifests for the Commission on Audit and District Collector – Upon
arrival of a vessel from a foreign port, the Bureau shall provide electronic copies of
the manifest to the Chairperson of the COA. The master shall immediately present
to the District Collector the original copy of the cargo manifest properly endorsed
by the boarding officer, and for inspection, the ship's register, or other documents
in lieu thereof, together with the clearance and other papers granted to the vessel
at the port of departure for the Philippines.
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Sec. 1207. Production of Philippine Crew – The master of a Philippine vessel

returning from abroad shall produce the entire crew listed in the vessel's shipping
crew manifest. If any member is missing, the master shall produce proof
satisfactory to the District Collector that the member has died, or absconded, has
been forcibly impressed into another service, or has been discharged. In case of
discharge in a foreign country, the master shall produce a certificate from the
consul, vice consul, or consular agent of the Philippines there residing, showing
that such discharge was effected with the consent of the aforesaid representative
of the Philippines.

Sec. 1208. Record of Arrival and Entry of Vessels and Aircraft – A record shall
be made and kept open to public inspection in every Customs District of the date
of arrival and entry of all vessels and aircraft.

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 with the assistance of other concerned
agencies.

Sec. 1210. 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 for the purpose.

Sec. 1211. Time of Unloading Cargo – Unloading of cargo from a vessel or

aircraft from a foreign port during official nonworking hours shall be allowed
subject to payment of service fees by shipping lines, airlines, or other interested
parties at rates prescribed by the Commissioner.

Sec. 1212. Entrance of Vessel through Necessity – When a vessel from a foreign
port is compelled, by stress of weather or other necessity to put into any other
 21

port than that of its destination, the master within twenty-four (24) hours after its
arrival, shall make a protest under oath setting forth the causes or circumstances
of such necessity. This protest, if not made before the District Collector, must be
produced and lodged with the District Collector.

Within the same time, the master shall make a report to the District Collector if
any part of the cargo was unloaded from necessity or lost by casualty before
arrival, and produce sufficient proof to the District Collector of such necessity or
casualty before the latter who shall give the approval thereto and the unloading
shall be deemed to have been lawfully effected.

Sec. 1213. 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,
and the goods shall be unloaded and stored under the supervision of customs
officers.

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.

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.

Sec. 1214. Entry and Clearance of Vessels of a Foreign Government – The entry
and clearance of transport or supply ship of a foreign government shall be in
accordance with the agreement by and between the Philippines and the foreign
government.

Sec. 1215. Clearance of Vessel for Foreign Port – Before a clearance shall be
granted to any vessel bound to a foreign port, the master or the agent thereof
 22

shall present to the District Collector the following properly authenticated

documents:

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 customs officer as to the correctness of the copy, shall
be returned to the master
c. Two (2) copies of the passengers list, showing foreigners 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
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 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.

Sec. 1216. Detention of Warlike Vessel Containing Arms and Munitions –

District Collectors shall report to the proper authorities or detain any vessel of
commercial registry manifestly built for warlike purposes and about to depart
from the Philippines with a cargo consisting principally of arms and munitions of
war, when the number of men shipped on board or other circumstances render it
probable that such vessel is intended to be employed by the owner or owners to
cruise or commit hostilities upon the subjects, citizens, or property of any foreign
principality or state, or of any colony, district, or people with whom the
Philippines is at peace, until the decision of the President of the Philippines is
rendered thereon, or until the owner or owners shall give a security, in double the
value of the vessel and cargo, that it will not be so employed, if in the discretion of
the District Collector such security will prevent the violation of the provisions of
this section.
 23

Sec. 1217. Oath of Master of Departing Vessel – The master of a departing

vessel shall state under oath that

a. All cargoes conveyed on the vessel, destined for the Philippines, have been
duly discharged or accounted for;
b. A true copy of the outgoing cargo manifest has been furnished to the
Bureau;
c. No letters or packets, not enclosed in properly stamped envelope sufficient
to cover postage, have been received or will be conveyed, except those
relating to the vessel; and that all mails placed on board the vessel before
its last clearance from the Philippines have been delivered at the proper
foreign port; and
d. If clearing without passenger, the vessel will not carry upon the instant
voyage, from the Philippine port; any passenger of any class, or other
person not entered upon the ship's declaration.

Sec. 1218. Extension of Time for Clearance – At the time of clearance, the
master of a departing vessel shall be required to indicate the time of intended
departure, and if the vessel should remain in port forty-eight (48) hours after the
time indicated, the master shall report to the District Collector for an extension of
time of departure, and without such extension the original clearance shall be
nullified.

Sec. 1219. Advance Notice of Aircraft Arrival. –

a. Nonscheduled Arrivals. – Before an aircraft comes into any area in the

Philippines from any place outside thereof, a timely notice of the intended
flight shall be furnished to the District Collector or other customs officer-in-
charge at or nearest the intended place of first landing, and to the quarantine
and immigration officers-in-charge at or nearest such place of landing. If
dependable facilities for giving notice are not available before departure, the
use of any radio equipment shall be appropriate as long as it will result in the
giving of adequate and timely notice of the aircraft's approach, otherwise
landing shall be made at a place equipped with navigational facilities. If, upon
landing in any area, the government officers have not arrived, the pilot-in-
 24

command shall hold the aircraft and any baggage and goods thereon intact
and keep the passengers and crew members in a segregated place until the
inspecting officers arrive.

b. Scheduled Arrivals. – Such advance notice will not be required in the case of
an airline arriving in accordance with the regular schedule filed with the
District Collector for the Customs District in which the place of first landing
area is situated, and also with the quarantine and immigration officers-in-
charge of such place.

Sec. 1220. Landing at International Airport of Entry – Except in case of

emergency or forced landings, aircraft arriving in the Philippines from any foreign
port or place shall make the first landing at an international airport of entry,
unless permission to land elsewhere other than at an international airport of entry
is first obtained from the Commissioner. In such cases, the owner, operator, or
person in charge of the aircraft shall pay the expenses incurred in inspecting the
aircraft, goods, passengers, and baggage carried thereon, and such aircraft shall
be subject to the authority of the District Collector at the airport while within its
jurisdiction.

Should an emergency or forced landing be made by an aircraft coming into the

Philippines at a place outside the jurisdiction of the latter, the pilot-in-command
shall not allow goods, baggage, passenger, or crew member to be removed or to
depart from the landing place without permission of a customs officer, unless such
removal or departure is necessary for purposes of safety, communication with
customs officers, or preservation of life, health, or property. As soon as
practicable, the pilot-in-command, or a member of the crew-in-charge, or the
owner of the aircraft, shall communicate with the customs officer at the intended
place of first landing or at the nearest international airport or other customs port
of entry in the area and make a full report of the circumstances of the flight and of
the emergency or forced landing.

Sec. 1221. Report of Arrival and Entry of Aircraft – The pilot-in-command of any
aircraft arriving from a foreign port or place shall immediately report its arrival to
the District Collector at the airport of entry or to the customs officer detailed to
meet the aircraft at the place of first landing. Upon arrival, such aircraft shall be
boarded by a quarantine officer, and after pratique or health clearance is granted,
 25

shall be boarded by a customs officer; subsequently no person shall be permitted

to board or leave the aircraft without the permission of the customs officer. The
pilot-in-command or any other authorized agent of the owner or operator of the
aircraft shall make the necessary entry. No such aircraft shall, without previous
permission from the District Collector, depart from the place of first landing or
discharge goods, passengers, or baggage.

Sec. 1222. Documents Required in Making Entry for Aircraft –

a. For the purpose of making entry, there shall be presented to the boarding
customs officer four (4) copies of a general declaration which shall contain
the following data, unless any of such data is otherwise presented on a
separate official form

a.1. Name of owner or operator of aircraft, registration marks and

nationality of aircraft, and flight number of identification
a.2. Points of clearance and entry, and date of arrival
a.3. Health and customs clearance at the last airport of departure
a.4. Itinerary of aircraft, including information as to airport of origin and
departure dates
a.5. Names and nationality of crew members
a.6. Passengers manifest showing places of embarkation and destination
a.7. Cargo manifest showing information as to airway bill number, the
number of packages related to each airway bill number, nature of
goods, destination, and gross weight, together with a copy of each
airway bill securely attached thereto
a.8. Store list; and
a.9. Such other documents as may be required by the Bureau.

b. The general declaration shall be written in English and duly signed by the
pilot-in-command or operator of the aircraft, or the authorized agent. The
section on health, and customs clearances, however, shall be signed only by
the pilot-in-command or when necessary, by a crew member when the
general declaration itself has been signed by a non-crew member. If the
aircraft does not carry cargoes or passengers, such facts must be shown in
the manifest.
 26

c. A cargo manifest shall in no case be changed or altered after entry of the

aircraft, except by means of an amendment by the pilot-in-command or
authorized agent thereof, under oath, and attached to the original
manifest: Provided, That after the invoice and/or goods declaration
covering an importation have been received and recorded in the office of
the appraiser, no amendment shall be allowed except when it is obvious
that a clerical error or any other discrepancy has been committed without
any fraudulent intent in the preparation of the manifest, the discovery of
which could not have been made until after complete examination of the
importation.

Sec. 1223. Manifests for the Commission on Audit (COA) and District
Collector – Upon arrival of an aircraft from a foreign port, the Bureau shall provide
electronic copies of the manifest to the Chairperson of the COA. The master shall
immediately present to the District Collector the original copy of the cargo
manifest properly endorsed by the boarding officer, and for inspection, the
aircraft's register or other documents in lieu thereof, together with the clearance
and other papers granted to the aircraft at the port of departure for the
Philippines.

Sec. 1224. Clearance of Aircraft for Foreign Port –

a. Any aircraft bound to a foreign port shall, before departure, be granted

clearance by the Commissioner at an airport of entry where such aircraft
has been authorized to make its landing; and

b. Before clearance shall be granted to an aircraft bound to a foreign port,

there shall be presented to the District Collector or to the customs officer
detailed at the place of departure four (4) copies of a general declaration
signed by the pilot-in-command or authorized agent of an aircraft which
shall contain the following data;

1. Name of owner or operator of aircraft, registration marks and nationality

of aircraft, and flight number of identification
2. Port of clearance, data thereof and destination
3. Health and customs clearance;
 27

4. Itinerary of aircraft, including information as to airport of destination and

departure date;
5. Names and nationality of crew members;
6. Passengers manifest showing places of destination;
7. Export cargo manifest showing information as to airway bill number, the
number of packages related to each airway bill number, nature of goods,
destination, and gross weight, together with a copy of each airway bill
securely attached thereto; and
8. Store list showing stores loaded.

Sec. 1225. Oath of Person-in-Charge of Departing Aircraft – The pilot-in-

command or authorized agent of such departing aircraft shall also state under
oath to the effect that:

a. All cargoes conveyed on the aircraft destined to the Philippines have been
duly discharged and accounted for; and
b. The aircraft has not received nor will convey any letter or packet not
enclosed in properly stamped envelope sufficient to cover postage, except
those relating to the cargo of the aircraft, and that there was delivery to the
proper foreign port of all mails placed on board said aircraft before
clearance from the Philippines.

If an aircraft is cleared to depart without passengers, the aircraft shall not carry
any passenger thereon.

A record shall be made and kept open to public inspection in every customs office
at an airport of entry of the dates of arrival and entry of all aircraft.
 28

IV. RA 1371 – An Act to Define, Fix, and Regulate the Amount of All Charges
and Fees in Philippine Ports, Other than Customs Duties, Internal Revenue
Taxes and Tonnage Dues

Section 1. Definitions. As used in this Act:

a. Harbor fee is the amount which the owner, agent, operator or master of a
vessel has to pay for each entrance into or departure from a port of entry in
the Philippine.

b. Wharfage charge is the amount assessed against the cargo of a vessel

engaged in the foreign trade, based on the quantity, weight or measure
received and/or discharged by such vessel. The owner, consignee, or agent
of either, of the merchandise is the person liable for such charge.

c. Berthing charge is the amount assessed against a vessel for mooring or

berthing at a pier, wharf, bulkhead-wharf, river or channel marginal wharf
at any port in the Philippines; or for mooring or making fast to a vessel so
berthed; or for coming or mooring within any slip, channel, basin, river or
canal under the jurisdiction of any port of the Philippines. The owner, agent,
operator or master of the vessel is liable for this charge.
 29

d. Storage charge is the amount assessed on merchandise for storage in

customs premises, cargo sheds and warehouses of the government. The
owner, consignee, or agent of either, of the merchandise is liable for this
charge.

e. Arrastre charge is the amount which the owner, consignee, or agent of

either, of merchandise or baggage has to pay for the handling, receiving and
custody of the imported or exported merchandise or the baggage of the
passengers.

V. Civil Code of the Philippines Article 1732-1766 – Common Carriers

Article 1732. Common carriers are persons, corporations, firms or

associations engaged in the business of carrying or transporting passengers or
goods or both, by land, water, or air, for compensation, offering their services to
the public.

Article 1733. Common carriers, from the nature of their business and for
reasons of public policy, are bound to observe extraordinary diligence in the
vigilance over the goods and for the safety of the passengers transported by them,
according to all the circumstances of each case.

Such extraordinary diligence in the vigilance over the goods is further expressed
in articles 1734, 1735, and 1745, Nos. 5, 6, and 7, while the extraordinary
diligence for the safety of the passengers is further set forth in articles 1755 and
1756.

SUBSECTION 2. Vigilance Over Goods

 30

Article 1734. Common carriers are responsible for the loss, destruction, or
deterioration of the goods, unless the same is due to any of the following causes
only:

(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;

(2) Act of the public enemy in war, whether international or civil;
(3) Act or omission of the shipper or owner of the goods;
(4) The character of the goods or defects in the packing or in the containers;
(5) Order or act of competent public authority.

Article 1735. In all cases other than those mentioned in Nos. 1, 2, 3, 4, and 5
of the preceding article, if the goods are lost, destroyed or deteriorated, common
carriers are presumed to have been at fault or to have acted negligently, unless
they prove that they observed extraordinary diligence as required in article 1733.

Article 1736. The extraordinary responsibility of the common carrier lasts

from the time the goods are unconditionally placed in the possession of, and
received by the carrier for transportation until the same are delivered, actually or
constructively, by the carrier to the consignee, or to the person who has a right to
receive them, without prejudice to the provisions of article 1738.

Article 1737. The common carrier’s duty to observe extraordinary diligence

over the goods remains in full force and effect even when they are temporarily
unloaded or stored in transit, unless the shipper or owner has made use of the
right of stoppage in transitu.

Article 1738. The extraordinary liability of the common carrier continues to

be operative even during the time the goods are stored in a warehouse of the
carrier at the place of destination, until the consignee has been advised of the
arrival of the goods and has had reasonable opportunity thereafter to remove
them or otherwise dispose of them.

Article 1739. In order that the common carrier may be exempted from
responsibility, the natural disaster must have been the proximate and only cause
of the loss. However, the common carrier must exercise due diligence to prevent
or minimize loss before, during and after the occurrence of flood, storm or other
natural disaster in order that the common carrier may be exempted from liability
for the loss, destruction, or deterioration of the goods. The same duty is
 31

incumbent upon the common carrier in case of an act of the public enemy
referred to in article 1734, No. 2.

Article 1740. If the common carrier negligently incurs in delay in transporting

the goods, a natural disaster shall not free such carrier from responsibility.

Article 1741. If the shipper or owner merely contributed to the loss,

destruction or deterioration of the goods, the proximate cause thereof being the
negligence of the common carrier, the latter shall be liable in damages, which
however, shall be equitably reduced.

Article 1742. Even if the loss, destruction, or deterioration of the goods

should be caused by the character of the goods, or the faulty nature of the
packing or of the containers, the common carrier must exercise due diligence to
forestall or lessen the loss.

Article 1743. If through the order of public authority the goods are seized or
destroyed, the common carrier is not responsible, provided said public authority
had power to issue the order.

Article 1744. A stipulation between the common carrier and the shipper or
owner limiting the liability of the former for the loss, destruction, or deterioration
of the goods to a degree less than extraordinary diligence shall be valid, provided
it be:

1. In writing, signed by the shipper or owner;

2. Supported by a valuable consideration other than the service rendered by
the common carrier; and
3. Reasonable, just and not contrary to public policy.

Article 1745. Any of the following or similar stipulations shall be considered

unreasonable, unjust and contrary to public policy:

1. That the goods are transported at the risk of the owner or shipper;
2. That the common carrier will not be liable for any loss, destruction, or
deterioration of the goods;
3. That the common carrier need not observe any diligence in the custody of
the goods;
 32

4. That the common carrier shall exercise a degree of diligence less than that
of a good father of a family, or of a man of ordinary prudence in the
vigilance over the movables transported;
5. That the common carrier shall not be responsible for the acts or omission of
his or its employees;
6. That the common carrier’s liability for acts committed by thieves, or of
robbers who do not act with grave or irresistible threat, violence or force, is
dispensed with or diminished;
7. That the common carrier is not responsible for the loss, destruction, or
deterioration of goods on account of the defective condition of the car,
vehicle, ship, airplane or other equipment used in the contract of carriage.

Article 1746. An agreement limiting the common carrier’s liability may be

annulled by the shipper or owner if the common carrier refused to carry the goods
unless the former agreed to such stipulation.
Article 1747. If the common carrier, without just cause, delays the
transportation of the goods or changes the stipulated or usual route, the contract
limiting the common carrier’s liability cannot be availed of in case of the loss,
destruction, or deterioration of the goods.

Article 1748. An agreement limiting the common carrier’s liability for delay
on account of strikes or riots is valid.

Article 1749. A stipulation that the common carrier’s liability is limited to the
value of the goods appearing in the bill of lading, unless the shipper or owner
declares a greater value, is binding.

Article 1750. A contract fixing the sum that may be recovered. by the owner
or shipper for the loss, destruction, or deterioration of the goods is valid, if it is
reasonable and just under the circumstances, and has been fairly and freely
agreed upon.

Article 1751. The fact that the common carrier has no competitor along the
line or route, or a part thereof, to which the contract refers shall be taken into
consideration on the question of whether or not a stipulation limiting the common
carrier’s liability is reasonable, just and in consonance with public policy.
 33

Article 1752. Even when there is an agreement limiting the liability of the
common carrier in the vigilance over the goods, the common carrier is disputably
presumed to have been negligent in case of their loss, destruction or
deterioration.

Article 1753. The law of the country to which the goods are to be
transported shall govern the liability of the common carrier for their loss,
destruction or deterioration.

Article 1754. The provisions of articles 1733 to 1753 shall apply to the
passenger’s baggage which is not in his personal custody or in that of his
employee. As to other baggage, the rules in articles 1998 and 2000 to 2003
concerning the responsibility of hotel-keepers shall be applicable.

SUBSECTION 3. Safety of Passengers

Article 1755. A common carrier is bound to carry the passengers safely as far
as human care and foresight can provide, using the utmost diligence of very
cautious persons, with a due regard for all the circumstances.

Article 1756. In case of death of or injuries to passengers, common carriers

are presumed to have been at fault or to have acted negligently, unless they prove
that they observed extraordinary diligence as prescribed in articles 1733 and
1755.

Article 1757. The responsibility of a common carrier for the safety of

passengers as required in articles 1733 and 1755 cannot be dispensed with or
lessened by stipulation, by the posting of notices, by statements on tickets, or
otherwise.

Article 1758. When a passenger is carried gratuitously, a stipulation limiting

the common carrier’s liability for negligence is valid, but not for willful acts or
gross negligence.
 34

The reduction of fare does not justify any limitation of the common carrier’s
liability.

Article 1759. Common carriers are liable for the death of or injuries to
passengers through the negligence or willful acts of the former’s employees,
although such employees may have acted beyond the scope of their authority or
in violation of the orders of the common carriers.

This liability of the common carriers does not cease upon proof that they
exercised all the diligence of a good father of a family in the selection and
supervision of their employees.

Article 1760. The common carrier’s responsibility prescribed in the

preceding article cannot be eliminated or limited by stipulation, by the posting of
notices, by statements on the tickets or otherwise.

Article 1761. The passenger must observe the diligence of a good father of a
family to avoid injury to himself.

Article 1762. The contributory negligence of the passenger does not bar
recovery of damages for his death or injuries, if the proximate cause thereof is the
negligence of the common carrier, but the amount of damages shall be equitably
reduced.

Article 1763. A common carrier is responsible for injuries suffered by a

passenger on account of the willful acts or negligence of other passengers or of
strangers, if the common carrier’s employees through the exercise of the diligence
of a good father of a family could have prevented or stopped the act or omission.

SUBSECTION 4. Common Provisions

Article 1764. Damages in cases comprised in this Section shall be awarded in

accordance with Title XVIII of this Book, concerning Damages. Article 2206 shall
also apply to the death of a passenger caused by the breach of contract by a
common carrier.
 35

Article 1765. The Public Service Commission may, on its own motion or on
petition of any interested party, after due hearing, cancel the certificate of public
convenience granted to any common carrier that repeatedly fails to comply with
his or its duty to observe extraordinary diligence as prescribed in this Section.

Article 1766. In all matters not regulated by this Code, the rights and obligations of
common carriers shall be governed by the Code of Commerce and by special laws.

VI. Commonwealth Act No. 65 – Carriage of goods by Sea Act

"Carriage of Goods by Sea Act";

WHEREAS, the primordial purpose of the said Acts is to bring about uniformity in
ocean bills of lading and to give effect to the Brussels Treaty, signed by the United
States with other powers;

WHEREAS, the Government of the United States has left it to the Philippine
Government to decide whether or not the said Act shall apply to carriage of goods
by sea in foreign trade to and from Philippine ports;

WHEREAS, the said Act of Congress contains advanced legislation, which is in

consonance with modern maritime rules and the practices of the great shipping
countries of the world;

WHEREAS, shipping companies, shippers, and marine insurance companies, and

various chambers of commerce, which are directly affected by such legislation,
 36

have expressed their desire that said Congressional Act be made applicable and
extended to the Philippines

Section 1. That the provisions of Public Act Numbered Five hundred and twenty-
one of the Seventy-fourth Congress of the United States, approved on April
sixteenth, nineteen hundred and thirty-six, be accepted, as it is hereby accepted
to be made applicable to all contracts for the carriage of goods by sea to and from
Philippine ports in foreign trade: Provided, That nothing in the Act shall be
construed as repealing any existing provision of the Code of Commerce which is
now in force, or as limiting its application.

a. The term "carrier" includes the owner or the charterer who enters into a
contract of carriage with a shipper.

b. The term "contract of carriage" applies only to contracts of carriage covered

by a bill of lading or any similar document of title, insofar as such document
relates to the carriage of goods by sea, including any bill of lading or any
similar document as aforesaid issued under or pursuant to a charter party
from the moment at which such bill of lading or similar document of title
regulates the relations between a carrier and a holder of the same.

c. The term "goods" includes goods, wares, merchandise, and articles of every
kind whatsoever, except live animals and cargo which by the contract of
carriage is stated as being carried on deck and is so carried.

d. The term "ship" means any vessel used for the carriage of goods by sea.

e. The term "carriage of goods" covers the period from the time when the
goods are loaded on to the time when they are discharged from the ship.

RISKS

Section 2. Subject to the provisions of section 6, under every contract of

carriage of goods by sea, the carrier in relation to the loading handling, stowage,
carriage, custody, care, and discharge of such goods, shall be subject to the
responsibilities and liabilities and entitled to the rights and immunities hereinafter
set forth.
 37

RESPONSIBILITIES AND LIABILITIES

Section 3.

1. he carrier shall be bound, before and at the beginning of the voyage, to

exercise due diligence to —

a. Make the ship seaworthy;

b. Properly man, equip, and supply the ship;
c. Make the holds, refrigerating and cooling chambers, and all other parts of
the ship in which goods are carried, fit and safe for their reception carriage
and preservation.

2. The carrier shall properly and carefully load, handle, stow, carry, keep, care
for, and discharge the goods carried.

3. After receiving the goods into his charge the carrier, or the master or agent of
the carrier, shall, on demand of the shipper, issue to the shipper a bill of lading
showing among other things —

a. The leading marks necessary for identification of the goods as the same are
furnished in writing by the shipper before the loading of such goods starts,
provided such marks are stamped or otherwise shown clearly upon the
goods if uncovered, or on the cases or coverings in which such goods are
contained, in such a manner as should ordinarily remain legible until the
end of the voyage.

b. Either the number of packages or pieces, or the quantity or weight, as the

case may be, as furnished in writing by the shipper.

c. The apparent order and condition of the goods: Provided, That no carrier,
master, or agent of the carrier, shall be bound to state or show in the bill of
lading any marks, number, quantity, or weight which he has reasonable
ground for suspecting not accurately to represent the goods actually
received, or which he has had no reasonable means of checking.
 38

4. Such a bill of lading shall be prima facie evidence of the receipt by the carrier
of the goods as therein described in accordance with paragraphs (3) (a), (b),
and (c) of this section: Provided, That nothing in this Act shall be construed as
repealing or limiting the application of any part of the Act, as amended,
entitled "An Act relating to bills of lading in interstate and foreign commerce,"
approved August 29, 1916 (U. S. C. title 49, secs. 81-124), commonly known as
the "Pomerene Bills of Lading Act."

5. The shipper shall be deemed to have guaranteed to the carrier the accuracy at
the time of shipment of the marks, number, quantity, and weight, as furnished
by him; and the shipper shall indemnify the carrier against all loss damages,
and expenses arising or resulting from inaccuracies in such particulars. The
right of the carrier to such indemnity shall in no way limit his responsibility and
liability under the contract of carriage or to any person other than the shipper.

6. Unless notice of loss or damage and the general nature of such loss or damage
be given in writing to the carrier or his agent at the port of discharge before or
at the time of the removal of the goods into the custody of the person entitled
to delivery thereof under the contract of carriage, such removal shall be prima
facie evidence of the delivery by the carrier of the goods as described in the
bill of lading. If the loss or damage is not apparent, the notice must be given
within three days of the delivery.

Said notice of loss or damage maybe endorsed upon the receipt for the goods
given by the person taking delivery thereof.

The notice in writing need not be given if the state of the goods has at the
time of their receipt been the subject of joint survey or inspection.

In any event the carrier and the ship shall be discharged from all liability in
respect of loss or damage unless suit is brought within one year after delivery
of the goods or the date when the goods should have been delivered:
Provided, That if a notice of loss or damage, either apparent or concealed, is
not given as provided for in this section, that fact shall not affect or prejudice
the right of the shipper to bring suit within one year after the delivery of the
goods or the date when the goods should have been delivered
 39

In the case of any actual or apprehended loss or damage the carrier and the
receiver shall give all reasonable facilities to each other for inspecting and
tallying the goods.

7. After the goods are loaded the bill of lading to be issued by the carrier, master,
or agent of the carrier to the shipper shall, if the shipper so demands, be a
"shipped" bill of lading Provided, That if the shipper shall have previously
taken up any document of title to such goods, he shall surrender the same as
against the issue of the "shipped" bill of lading, but at the option of the carrier
such document of title may be noted at the port of shipment by the carrier,
master, or agent with name or name the names of the ship or ships upon
which the goods have been shipped and the date or dates of shipment, and
when so noted the same shall for the purpose of this section be deemed to
constitute a "shipped" bill of lading.

8. Any clause, covenant, or agreement in a contract of carriage relieving the

carrier or the ship from liability for loss or damage to or in connection with the
goods, arising from negligence, fault, or failure in the duties and obligations
provided in this section, or lessening such liability otherwise than as provided
in this Act, shall be null and void and of no effect. A benefit of insurance in
favor of the carrier, or similar clause, shall be deemed to be a clause relieving
the carrier from liability.

RIGHTS AND IMMUNITIES

Section 4.

1. Neither the carrier nor the ship shall be liable for loss or damage arising or
resulting from unseaworthiness unless caused by want of due diligence on the
part of the carrier to make the ship seaworthy, and to secure that the ship is
properly manned, equipped, and supplied, and to make to the holds,
refrigerating and cool chambers, and all other parts of the ship in which goods
are carried fit and safe for their reception, carriage, and preservation in
accordance with the provisions of paragraph (1) of section 3. Whenever loss or
damage has resulted from unseaworthiness, the burden of proving the
exercise of due diligence shall be on the carrier or other persons claiming
exemption under the section.
 40

2. Neither the carrier nor the ship shall be responsible for loss or damage arising
or resulting from —

a. Act, neglect, or default of the master, mariner, pilot, or the servants of the
carrier in the navigation or in the management of the ship;
b. Fire, unless caused by the actual fault or privity of the carrier;
c. Perils, dangers, and accidents of the sea or other navigable waters;
d. Act of God;
e. Act of war,
f. Act of public enemies;
g. Arrest or restraint of princes, rulers, or people, or seizure under legal
process;
h. Quarantine restrictions;
i. Act or omission of the shipper or owner of the goods, his agent or
representative;
j. Strikes or lockouts or stoppage or restraint of labor from whatever cause,
whether partial or general; Provided, That nothing herein contained shall
be construed to relieve a carrier from responsibility for the carrier's own
acts;
k. Riots and civil commotions
l. Saving or attempting to save life or property at sea;
m. Wastage in bulk or weight or any other loss or damage arising from
inherent defect, quality, or vice of the goods;
n. Insufficiency of packing;
o. Insufficiency of inadequacy of marks;
p. Latent defects not discoverable by due diligence; and
q. Any other cause arising without the actual fault and privity of the carrier
and without the fault or neglect of the agents or servants of the carrier,
but the burden of proof shall be on the person claiming the benefit of this
exception to show that neither the actual fault or privity of the carrier nor
the fault or neglect of the agents or servants of the carrier contributed to
the loss or damage.

3. The shipper shall not be responsible for loss or damage sustained by the
carrier or the ship arising from any cause without the act, fault, or neglect of
the shipper, his agents, or servants.
 41

4. Any deviation in saving or attempting to save life or property at sea, or any

reasonable deviation shall not be deemed to be an infringement or breach of
this Act or of the contract of carriage, and the carrier shall not be liable for any
loss or damage resulting therefrom: Provided, however, That if the deviation is
for the purpose of loading cargo or unloading cargo or passengers it shall,
prima facie, be regarded as unreasonable.

5. Neither the carrier nor the ship shall in any event be or become liable for any
loss or damage to or in connection with the transportation of goods in an
amount exceeding $600 per package lawful money of the United States, or in
case of goods not shipped in packages, per customary freight unit, or the
equivalent of that sum in other currency, unless the nature and value of such
goods have been declared by the shipper before shipment and inserted in the
bill of lading. This declaration, if embodied in the bill of lading, shall be prima
facie evidence, but shall not be conclusive on the carrier.
By agreement between the carrier, master, or agent of the carrier, and the
shipper another maximum amount than that mentioned in this paragraph may
be fixed: Provided, That such maximum shall not be less than the figure above
named. In no event shall the carrier be liable for more than the amount of
damage actually sustained.

Neither the carrier nor the ship shall be responsible in any event for loss or
damage to or in connection with the transportation of the goods if the nature
or value thereof has been knowingly and fraudulently misstated by the shipper
in the bill of lading.

6. Goods of an inflammable, explosive, or dangerous nature to the shipment

whereof the carrier, master or agent of the carrier, has not consented with
knowledge of their nature and character, may at any time before discharge be
landed at any place or destroyed or rendered innocuous by the carrier without
compensation, and the shipper of such goods shall be liable for all damages
and expenses directly or indirectly arising out of or resulting from such
shipment. If any such goods shipped with such knowledge and consent shall
become a danger to the ship or cargo, they may in like manner be landed at
any place, or destroyed or rendered innocuous by the carrier without liability
on the part of the carrier except to general average, if any.
 42

SURRENDER OF RIGHTS AND IMMUNITIES AND INCREASE OF RESPONSIBILITIES

AND LIABILITIES

Section 5. A carrier shall be at liberty to surrender in whole or in part all or any

of his rights and immunities or to increase any of his responsibilities and liabilities
under this Act, provided such surrender or increase shall be embodied in the bill
of lading issued to the shipper.

The provisions of this Act shall not be applicable to charter parties; but if bills of
lading are issued in the case of a ship under charter party, they shall comply
with the terms of this Act. Nothing in this Act shall be held to prevent the
insertion in a bill of lading of any lawful provision regarding general average.

SPECIAL CONDITIONS

Section 6. Notwithstanding the provisions of the preceding sections, a carrier,

master or agent of the carrier, and a shipper shall, in regard to any particular
goods be at liberty to enter into any agreement in any terms as to the
responsibility and liability of the carrier for such goods, and as to the rights and
immunities of the carrier in respect of such goods, or his obligation as to
seaworthiness (so far as the stipulation regarding seaworthiness is not contrary to
public policy), or the care or diligence of his servants or agents in regard to the
loading, handling stowage, carriage, custody, care, and discharge of the goods
carried by sea: Provided, That in this case no bill of lading has been or shall be
issued and that the terms agreed shall be embodied in a receipt which shall be a
non-negotiable document and shall be marked as such.

Any agreement so entered into shall have full legal effect: Provided, That this
section shall not apply to ordinary commercial shipments made in the ordinary
course of trade but only to other shipments where the character or condition of
the property to be carried or the circumstances, terms, and conditions under
which the carriage is to be performed are such as reasonably to justify a special
agreement.

Section 7. Nothing contained in this Act shall prevent a carrier or a shipper from
entering into any agreement, stipulation, condition, reservation, or exemption as
to the responsibility and liability of the carrier or the ship for the loss or damage
 43

to or in connection with the custody and care and handling of goods prior to the
loading on and subsequent to the discharge from the ship on which the goods are
carried by sea.

Section 8. The provisions of this Act shall not affect the rights and obligations of
the carrier under the provisions of the Shipping Act, 1916, or under the provisions
of section 4281 to 4289, inclusive, of the Revised Statutes of the United States, or
of any amendments thereto; or under the provisions of any other enactment for
the time being in force relating to the limitation of the liability of the owners of
seagoing vessels.

TITLE II

Section 9. Nothing contained in this Act shall be construed as permitting a

common carrier by water to discriminate between competing shippers similarly
place in time and circumstances, either (a) with respect to the right to demand
and receive bills of lading subject to the provisions of this Act; or (b) when issuing
such bills of lading, either in the surrender of any of the carrier's rights and
immunities or in the increase of any of the carrier's responsibilities and liabilities
pursuant to section 6, title I, of this Act or (c) in any other way prohibited by the
Shipping Act, 1916, as amended.

Section 10. Section 25 of the Interstate Commerce Act is hereby amended by

adding the following proviso at the end of paragraph 4 thereof: "Provided,
however, That insofar as any bill of lading authorized hereunder relates to the
carriage of goods by sea, such bill of lading shall be subject to the provisions of the
Carriage of Goods by Sea Act."

Section 11. Where under the customs of any trade the weight of any bulk cargo
inserted in the bill of lading is a weight ascertained or accepted by a third party
other than the carrier or the shipper, and the fact that the weight is so ascertained
or accepted is stated in the bill of lading, then, notwithstanding anything in this
Act, the bill of lading shall not be deemed to be prima facie evidence against the
carrier of the receipt of goods of the weight so inserted in the bill of lading, and
the accuracy thereof at the time of shipment shall not be deemed to have been
guaranteed by the shipper.
 44

Section 12. Nothing in this Act shall be construed as superseding any part of the
Act entitled "An act relating to navigation of vessels, bills of lading, and to certain
obligations, duties, and rights in connection with the carriage of property,"
approved February 13,1893, or of any other law which would be applicable in the
absence of this Act, insofar as they relate to the duties, responsibilities, and
liabilities of the ship or carrier prior to the time when the goods are loaded on or
after the time they are discharged from the ship.

Section 13. This Act shall apply to all contracts for carriage of goods by sea to or
from ports of the United States in foreign trade. As used in this Act the term
"United States" includes its districts, territories, and possessions: Provided,
however, That the Philippine legislature may by law exclude its application to
transportation to or from ports of the Philippine Islands. The term "foreign trade"
means the transportation of goods between the ports of the United States and
ports of foreign countries. Nothing in this Act shall be held to apply to contracts
for carriage of goods by sea between any port of the United States or its
possessions, and any other port of the United States or its possession: Provided,
however, That any bill of lading or similar document of title which is evidence of a
contract for the carriage of goods by sea between such ports, containing an
express statement that it shall be subject to the provisions of this Act, shall be
subjected hereto as fully as if subject hereto as fully as if subject hereto by the
express provisions of this Act: Provided, further, That every bill of lading or similar
document of title which is evidence of a contract for the carriage of goods by sea
from ports of the United States, in foreign trade, shall contain a statement that it
shall have effect subject to the provisions of this Act.

Section 14. Upon the certification of the Secretary of Commerce that the foreign
commerce of the United States in its competition with that of foreign nations is
prejudiced the provisions, or any of them, of Title I of this Act, or by the laws of
any foreign country or countries relating to the carriage of goods by sea, the
President of the United States, may, from time to time, by proclamation, suspend
any or all provisions of Title I of this Act for such periods of time or indefinitely as
may be designated in the proclamation. The President may at any time rescind
such suspension of Title I hereof, and any provisions thereof which may have been
suspended shall thereby be reinstated and again apply to contracts thereafter
made for the carriage of goods by sea. Any proclamation of suspension or
rescission of any such suspension shall take effect on a date named therein, which
date shall be not less than ten days from the issue of the proclamation.
 45

Any contract for the carriage of goods by sea, subject to the provisions of this Act,
effective during any period when title I hereof, or any part thereof, is suspended,
shall be subject to all provisions of law now or hereafter applicable to that part of
Title I which may have thus been suspended.

Section 15. This Act shall take effect ninety days after the date of its approval; but
nothing in this Act shall apply during a period not to exceed one year following its
approval to any contract for the carriage of goods by sea, made before the date
on which this Act is approved, nor to any bill of lading or similar document of title
issued, whether before or after such date of approval in pursuance of any such
contract as aforesaid.

VARIOUS TECHNICAL TERMS IN PORT OPERATION

 Anchorage – A place with sufficient depth of water where vessels anchor

within the harbour. (QMS 2016)

 Average Draft of Vessel – adding the drafts upon arrival and upon departure of
all vessels and dividing them by 2.

 Beam of Vessel – width of a vessel at the widest point, or a point alongside the
ship at the midpoint of its length.
 46

 Berth – specified length of quay wall where a vessel can tie up. (UNCTAD PMS
Vol.4)

 Berthing/Docking – Maneuvering of a vessel from anchorage position or from

a pilot station to a berth, including the process of stationing the vessel
alongside the pier, quay or wharf.

 Breakwaters – Physical structure that protects port infrastructure from the

sea. (UNCTAD PMS Vol.4)

 Bulk Cargo – Cargo that is unpacked or undivided into parts and handled in
mass. It may come in any of the following forms: solid, pulverized, liquid, semi-
liquid or gas.

 Cargo Throughput – Total volume of cargo discharged and loaded at the port.
It includes breakbulk, liquid bulk, dry bulk, containerized cargo, transit cargo,
and transshipment.

 Coastwise/Domestic Trade – term applied in a general sense to the trade

carried on between ports of the same country.

 Container – large metal box in which goods are stuffed and handled as one
unit. The standard sizes are 20 ft. x 8 ft.; 40 ft. x 8 ft.; 45 ft. x 8 ft.

 Container Freight Station – a warehouse or transit shed adjacent to the

container yard used for stuffing and stripping of container cargo.

 Container Terminal – A port facility designed to provide an integrated use of

berthing facilities for containership and harbor transport system for containers
and their contents.

 Container Yard (CY) – A designated area in a container terminal usually

adjacent to the marshalling yard where containers and chassis are received
stacked and dispatched.

 Containerized Cargo – Cargo packed in vans or containers for easy handling

and transporting of the same as a unit.
 47

 Controlling Depth – The least depth of water in the navigable parts of the
waterway, which limits the allowable draft of vessels.

 Breakbulk – Cargo that is handled in units, packages, crates, bags and the like.

 Deadweight Tonnage (DWT) – The total carrying capacity of a ship expressed

in long tons (2,240 lbs.) on a specified draft. The deadweight tonnage includes
the total weight of cargoes, fuel, water in tanks, stores, baggage, passengers,
crew, and their effects but exclude the water in the boilers.

 Depth – The vertical distance measured at the middle of the vessel’s length
from top of keel or top of ceiling to top of upper deck at sides or amidships.

 Disembarkation – The act of landing or going ashore from a ship.

 Dockage Report – A form used by computerized and non-computerized port

which specifies the name of vessel, voyage number, flag registry, ship
operator/owner, vessel particulars (GRT, LOA) port calls, (last/next) and vessel
movement from anchorage up to departure from berth. (QMS 2016)

 Down/Idle Time – The total time work on the vessel actually comes to a stop.
Draft Maximum - The deepest draft of a vessel measured upon arrival and
upon departure.

 Draft of Vessel – The depth of the ship measured vertically from the waterline
to the lowest part of the vessel’s hull, propellers or other reference point.

 Dues - Include harbor fees, tonnage and wharfage dues and other dues or fees
imposed by virtue of the existing laws as P.D. 857.

 Dwell Time –The number of hours spent by a vessel from waiting time to berth
until the time of completion of the un-berthing process on final departure. Dry
Bulk–This pertains to unpacked solid goods.

 Embarkation – The act of boarding a vessel or ship. Foreign Trade - A term

applied to the trade carried on between a Philippine port and a foreign port.
 48

 Freight – The price paid to a ship owner for the transport of goods or
merchandise by sea from one specific port to another. The word freight is also
used to denote goods which are in the process of being transported from one
place to another.

 Full Container Load (FCL) – A container loaded with cargoes belonging to one
consignee covered by one bill of lading and meant for door-to-door delivery.

 Gang – A group of cargo workers employed to work in a hatch.

 Gross gang-hours – The total number of hours rendered by gangs in

discharging and loading cargo, including the gangs idle time. This is computed
by obtaining the difference between the time the gang started and the time
they finished work.

- Net gang-hours – The total number of hours actually spent by gangs in

discharging and loading cargo, excluding the gangs’ idle time. This is
computed by obtaining the difference between gross gang hours and idle
gang hours.

- Idle gang-hours – The difference between the gross-gang hours and net
gang-hours.

 Gross Registered Tonnage or Gross Tonnage – This is the volume of all

enclosed spaces of a ship. The measure of the internal volume of space within
a vessel expressed in terms of 100 cubic feet a ton, except for the following
spaces: shelter deck spaces with permanent middle line openings at least four
feet long, lavatories for officers and crew, shelters for deck passengers on
short voyages, condensed space, close-in spaces solely for machinery,
cookhouse and bakeries, wheelhouse. Since 1994 when the results of the 1969
International Tonnage Measurement Convention came into force, Gross
Registered Tonnage (GRT) has been referred to as Gross Tonnage (GT).

 Infrastructure - The fixed and immoveable parts of a harbour such as land,

roads, quay walls and breakwaters. (UNCTAD PMS Vol.4)

 Harbor – A protected part of the sea, lake or other body of water used by
vessels as a place of safety. (QMS 2016)
 49

 Hatch – An opening in a vessel’s deck through which cargo can be lowered.

 Length Overall (LOA) – The total length from the foremost to the aftermost
points of a vessel’s hull.

 Less Container Load (LCL) – A container loaded with cargoes belonging to two
or more consignees.

 Liquid Bulk – It refers to unpacked liquid goods that can be handled through a
pipeline, is stored and transported on the vessel or vehicle in tanks.

 Loading – The operation of transferring cargo from the quay of barge into the
hold or on to the deck of a ship. It is not complete until the cargo has been
removed from the slings and placed in the hold or on the deck of a vessel.

 Lo-lo (lift-on lift-off) – Cargo handling method by which vessels are loaded or
unloaded by either ship or shore cranes. (Port Reform Toolkit, World Bank
Group)

 Manifest (Clearance or Entrance for Cargo and Passenger) – A document

containing a listing of a commodity items/passengers carried by a vessel. The
manifest is one of the requirements for clearance/entrance of vessel.

 Marshalling Yard – A place where containers are stacked and arranged

according to the sequence or withdrawal to consignee or transferred to CY-
CFS or CY inside Port/Customs Zone. It is also where the containers are
arranged prior to loading to a carrying vessel in accordance with the sequence
of loading in the storage plan.

 Metric Ton – The weight measurement equivalent to 2,204.6 lbs. or 1,000

kilograms. Mooring - Securing to a dock or to a buoy, or anchoring with two
anchors.

 Net Registered Tonnage (NRT) – This is derived from gross tonnage by the
deduction of space allowed for navigation, machinery, and crew
accommodation. The total enclosed space of a vessel expressed in 100 cubic
feet to a ton, excluding the following spaces:
 50

- Propelling space which includes machinery and boiler spaces, and shaft
trunks in crew ships excluding store rooms and cabin;

- Master and crew spaces;

- Spaces for helm capstan, anchor gears and spaces used for the navigation
of the ship, such as chart room, signals and boatswain stores;

- Donkey boiler and engine if connected to main pimps;

- Water ballast spaces other than the double bottoms;

- Sail room which is limited to 2.5% of the gross tonnage of ships wholly
propelled by sails. Since 1994 when the results of the 1969 International
Tonnage Measurement Convention came into force, Net Registered
Tonnage (NRT) has been referred to as Net Tonnage (NT).

 Net Service Time – This refers to the vessel working time. Packaging - Form of
shipping cargoes, either as breakbulk or conventional, bulk or containerized.
Packing or Stuffing - Loading of cargoes inside a container.

 Pallet - A portable platform or deck, generally about 6 ft. x 4 ft. on which goods
can be attached to form a unit load which can be transported usually by a
mechanical appliance such as forklift trucks. Pallet usually stands on bearers
with a clearance of several inches leaving a space into which forklift can
penetrate for lifting purposes.

 Pier – Any structure built into the sea but not parallel to the coastline and
includes any stage, stair loading place, landing stare, jetty floating barge on
pontoon and any bridge or other works connected therewith. (QMS 2016)

 Port – 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 the functions. (QMS 2016)

- Terminal Port – For purposes of this Manual, a terminal is defined as a

generic term for a front line unit consisting of a port facility or a number of
 51

port facilities, government or private. There are different kinds of terminal

such as those engaged in multi-purpose operations as opposed to
specialized or dedicated to a single type of operation, e.g. bulk terminal

- Base Port (BP) – A center or hub of operations and is, in most cases, the
busiest terminal in a PMO.

- Other Terminal Port (OTP) – For this Manual, Other Terminal Port shall
refer to a port under the umbrella of PPA with lesser activities compared to
a baseport. This operational definition should not be confused with the
same term referred to by other agencies.

- Other Government Port (OGP) – A public port owned and maintained by

other government entities, e.g. LGU. These ports have, generally, smaller
scale of operations compared to what is referred to in this Manual as Other
Terminal Port. There are ports under the LGU but are included in the
statistical reporting system of PPA. These ports are grouped under Other
Government Ports.

- Private Port - A port owned and maintained by a private entity. It may be

commercial or non-commercial as may be allowed by PPA.

 Port Dues – Charge against vessel engaged in foreign trade, including those
engaged in barter trade, that enter any port whether private or government
on each bases in gross registered tonnage (GRT) of the vessel. (QMS 2016)

 Port Management Office (PMO) – The PPA’s administrative and operational

arm. There are twenty-six (26) PMOs which oversees the Base ports and
Terminal Management Offices (TMOs).

 Port of Origin – Defined as the last port of call. (QMS 2016) Quay walls - The
basic physical infrastructure provided to berth ship. (UNCTAD PMS Vol.4) Roll
On/Roll Off (Ro-Ro)

 Vessels – Specially designed vessels for carrying trailers, cars and other rolling
equipment which is discharged through the bow or stern ramps or both.

 Shipcalls – The number of vessels which call or arrive at a particular port at any
given time.
 52

 Spacing Factor – is an arbitrary rate (expressed in percent) which is being used

to indicate the spacing between vessels when at berth. The normal factor is
ten percent (10%) of LOA. (PPA MANUAL ON THE REVISED SYSTEM ON PORT
STATISTICS)

 Stripping - Unloading goods from a container.

 Terminal Management Office (TMO) – Refers to an administrative unit

overseeing the operation of a terminal in delivering frontline services.

 Time on Berth – This is also described as the Service Time . It is the number of
hours a vessel spent from the time of completing the berthing process to the
time of completion of the un-berthing process on final departure. It may
include the downtime/idle time of the vessel while on berth.

 Transshipment – The shipment of goods or containers to an intermediate

country of destination then to yet another country of final destination. The
port intermediate country is referred to as transshipment port.

 Transit Cargo – Cargo discharged and loaded from a port of origin to a port of
destination through another port.

 Transit Shed – A covered building on the pier or wharf used for storage of
cargo in transit, that is, cargo recently unloaded from or soon to be loaded to
a ship.

 Twenty-Foot-Equivalent Unit (TEU) – The unit of measurement equivalent to a

container’s length of 20 feet. It is often used to express the capacity of
container ships or container terminals (Wikipedia).

 Vessel – includes any ship or boat or any description of a vessel or boat, or any
artificial contrivance used or capable of being used as a means of
transportation on water. (QMS 2016)

 Waiting Time – The number of hours spent by a vessel from the time of first
reporting at the port to the time of completion of the berthing process before
working.
 53

 Wharf – A continuous structure built parallel to 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.
(QMS 2016)

CUSTOM OPERATION
 54

AND
CARGO HANDLING

DR. MARY ANN CO AYDE