Starting May 1, harbor pilots will have to pay the 10% privilege fee directly to the Cebu Port Authority (CPA) upon clearance of the vessel.
In a memorandum dated April 10, CPA general manager Angelo Verdan said the direct payment of the 10% privilege fee is pursuant to Section 6 of CPA Memorandum Circular (MC) 02-1998 dated February 20, 1998.
Verdan has ordered CPA’s relevant offices to “strictly implement CPA MC 02-1998,” which provides for the provisional pilotage rates for services rendered to foreign and coastwise vessels in all ports in the province and cities of Cebu.
CPA acting deputy general manager and legal affairs manager Atty. Yusop Uckung, in a text message to PortCalls, said the memorandum aims to “ensure proper collection of the privilege fee compared to the present practice whereby the pilots just remit to CPA the 10% privilege fee.”
He said collection will be done once the vessel is cleared, just like with the collection of vessel charge, usage fee, and berthing fee. This, he noted, is faster than the current practice of remitting the privilege fee.
Section 6 of MC 02-1998 states that “in consideration for the privilege to render pilotage service and of the use of port facilities, a pilot organization shall pay to the Authority a privilege fee of not less than ten percent (10%) of their gross income derived from pilotage and other special services.”
CPA may also directly collect the privilege fee on a per vessel basis, Section 6 notes.
“Late payments shall be subject to the applicable interest and penalties consistent with existing rules,” it adds.
For domestic vessels piloted by their own ship captains or masters who are accredited by CPA, the vessel must likewise remit to CPA the 10% of the applicable pilotage rate.
Philippine Liner Shipping Association in a text message to PortCalls said its member carriers are agreeable to Section 6 of MC 02-1998, as charges are the same under Executive Order 1088, which provides for the uniform and modified rates for pilotage services rendered to foreign and coastwise vessels at all private or public Philippine ports.
Currently, pilotage service is compulsory for domestic and foreign vessels docking and undocking at any Philippine ports, and is exclusively rendered by member associations of the United Harbor Pilots’ Association of the Philippines, Inc. – Roumina Pablo
