PPA MEMORANDUM CIRCULAR NO. 43-98, October 05, 1998

[ PPA MEMORANDUM CIRCULAR NO. 43-98, October 05, 1998 ]

CLARIFICATION OF SHUT-OUT CHARGES

To further clarify the implementing rules on shut-out charges on export/transhipment containers at MICT and South Harbor, the following guidelines are hereby issued.

1. Shut-out container refers to an export/transshipment container whether full or empty which fails to get loaded unto a nominated exporting vessel

2. Shut-out charge is an imposition on a shut-out container under the existing tariff at MICT and South Harbor.

3. the same charge equivalent to a shut-out charge may however be imposed on containers whether full or empty when shippers/shipping lines give instructions or request for a change of status under any of the following instances:

3.1 Change of exporting vessel where the container/s is/are intended to be loaded;

3.2 Change of port of destination of the container/s; and

3.3 Change in weight of container/s as p0reviously declared.

4. Shut-out charge shall be for the account of the shipper or the shipping line/agent depending on the cause of the shut-out. It shall be for the account of the shipper if the shut-out is due to the shipper's instruction/fault, such as but not limited to change of loading vessel after receipt of the container at the terminal and/or change of port discharge the container at the terminal and/or change of port discharge and/or issuance of hold order by the shipper. On the other hand, the shut-out charge shall be for the account of shipping line/agent if the change of status is due to shipping line/agent's request/instruction/fault such as but not limited to when vessel is full and/or lacks port time, vessel breaks down while in port and/or hold order issued by shipping line/agent.

5. The shut-out export container shall not be loaded to the nominated vessel without prior payment of the shut-out charge. The amount of the shut-out charge shall be based on the prevailing PPA approved cargo handling tariff of MICT and South Harbor.

This Circular shall take effect immediately.

Adopted: 5 Oct. 1998

(SGD.) JUAN O. PENA General Manager