Pursuant to R.A. 7621 and Board Resolution No. 169-97 dated 26 June 1997 of the Cebu Port Commission, these guidelines are being issued for the compliance of all concerned.

SECTION 1.       Statement of General Policy. - It is the declared general policy of the Authority that all cargo-handling operators/company whose contracts/permits issued by the Authority have expired shall be allowed to operate on hold-over status and given a hold-over permit (Annex "A*") subject to the conditions herein set forth.

SECTION 2.       When to Apply For Hold-Over Permit. - Cargo-handlers with expired contracts/permit shall, within one (1) month from date hereof, file with the Authority a letter of intent to apply for a hold over permit. Any cargo-handling firm or operator who fails to apply within said period shall be deemed to be operating illegally and shall be subject to the penalties herein provided.

SECTION 3.       Clearance from RMD. - Applicants for hold over permits/contracts with unpaid or unsettled account with the Authority shall not be given shall hold-over permits/contracts until such account shall have been fully paid and clearance from the Resource Management Division of the Authority is secured.

SECTION 4.       Terms and Conditions. - Hold-over permits shall be subject to the following terms and conditions:

i.        the hold-over permit/contract shall be for a maximum period of one (1) year subject to early withdrawal or revocation by the Authority;

ii.       the rate of government share, area of operation, etc. of the hold-over permittee shall be the same and consistent with the provisions set forth in its expired management contract/permit;

iii.      the permittee shall execute an undertaking to abide by all policies, decisions orders, directives, rules and regulations issued by the Authority which the Authority may hereafter prescribe or issue.

SECTION 5.       Processing Fee. - A processing fee in the amount of P3,000.00 shall be collected from each applicant for hold-over permit.

SECTION 6.       Penalty. - In case a cargo-handling firm or operator whose contract/permit has expired fails to apply for hold-over permit within the period stated under Section 2 hereof, said cargo-handling firm or operator and/or its owners and employees, without prejudice to other legal action which the Authority may deem appropriate to take, shall:

a.      be excluded or barred from performing any cargo-handling or related services within the port and/or barred from entering the port premises and/or expelled therefrom;

b.      any privilege or permit (Permit to Occupy or Lease., Pass etc.) granted by the Authority shall be deemed automatically withdrawn or cancelled.

SECTION 7.       Similar Penalty to Vessels/Shipping. - No vessel or shipping company shall engage the services of a cargo-handling firm or operator whose contract has expired and who has not applied for a hold-over permit or one whose application has been denied, otherwise said vessel or shipping company shall suffer the penalty provided under par. (b) of the immediately preceding paragraph.

SECTION 8.       Repealing Clause. - All circulars, orders, memoranda, and other issuances adopted/issued by the Authority inconsistent herewith are hereby repealed or modified accordingly.

SECTION 9.       Effectivity. - This Memorandum Circular shall take effect immediately.

Adopted: 30 June 1997