BOC insists North Harbor can handle foreign cargo

The Bureau of Customs (BOC) asserted authority over a decision allowing Manila North Harbor Port Inc. (MNHPI) to handle foreign shipments at the country’s busiest cargo and passenger port.

A turf war erupted earlier this month between the BOC and the Philippine Ports Authority (PPA), which had warned Romero-controlled MNHPI of possible violations in its terminal contract should it handle foreign cargo.

“Under existing laws, the opening or closing of a ‘port of entry’ is an exclusive customs function and BOC has jurisdiction and authority over vessels engaged in foreign trade and over goods subject of importation, including its means of transport,” Customs Commissioner Alberto Lina said in a statement.

He said Manila North Harbor was considered a sub-port of the Port of Manila, the principal port of entry. It added this sub-port, “with its own ‘plantilla’ and office is an authorized port of entry and, as such, it has long been allowed to accept vessels in foreign trade.”

Lina said the BOC does not grant “concessions” similar to those granted by the PPA.

“BOC is not privy to the contractual relationship between MNHPI and PPA,” Lina said.

He added, “For customs purposes, [BOC] has exclusive control, direction and management of customs offices, facilities, warehouses, ports, airports, wharves, infrastructure and other premises in the respective ports of entry such as the sub-port of Manila North Harbor.”

The official also insisted BOC has jurisdiction over all coasts, ports, airports, harbors, bays, rivers and inland waterways.

The BOC earlier granted Manila North Harbor international port status, as provided under Republic Act 10668 that amended the 50-year-old Cabotage Law. The amendments promote competition in the maritime shipping industry by lifting restrictions imposed on foreign vessels.

This status would allow Romero’s firm to compete with the Manila port operations of International Container Terminal Services Inc. and Asian Terminals Inc.

The BOC also last year awarded a certificate of authority to MNHPI, allowing it to operate an authorized customs facility.

BOC said the agreement and framework ensures integrity and security of trade facilitation from supply source to customs clearance to final distribution.

“Having been awarded this status, Customs puts its trust to MNHPI in handling and storing imported goods that are immediately discharged from the arriving airplane, vessel and other means of international transport,” Customs Deputy Commissioner Agaton Uvero said in an earlier statement.

But in a letter dated June 9, 2016, PPA said Manila North Harbor “has always been known and was treated as such as a domestic port since operations of the said port were transferred to PPA in 1976.” It said this was covered under the PPA’s Revised Charter.

The PPA also warned this week port offices, harbor pilots, shipping lines and agents against handling international cargo at the Manila North Harbor.

In a separate letter dated June 21, 2016, PPA said the contract for the development, management, operation and maintenance of the Manila North Harbor between PPA and MNHPI “expressly provides that MNHPI shall provide and undertake domestic terminal services only.”