In order to resolve conflicting/varied interpretations of the government share from bagging operations under PPA Memorandum Circular No. 37-98, the following clarifications are hereby issued:

1. The bagging rate of P50.00 per metric ton under PPA Memorandum Circular No. 37-98 shall be applied only to domestic bagging operations;
   
   
2. Bagging services for imported/export cargoes in all PPA ports, except Batangas, South Harbor and MICT, shall be charged at the rate of P65.00 per metric ton. This rate is inclusive of standard bagging equipment such as hopper, sewing machine, weighing scale, etc. If the cargo is classified as "dangerous cargo" a corresponding premium will be applied to the regular rate as specified in PPA Administrative Order Nos. 02-89 and 01-90; and
   
   
3. The government share from bagging services shall not be less than 10% for domestic cargoes and 20% for imported/export cargoes.

This circular shall take effect immediately.

Adopted: 13 Nov. 1998