In support of Government efforts to reduce the transport costs of goods and consequently reduce their prices in the market, shipments of logs and falcata shipments shall be subject to the "65%-35%" scheme when using equipment, not supplied by the cargo handling contractor, for marshalling, sorting, and delivery of the said shipments.

This Policy is the same as in the handling of containers where the "65%-35%" ratios have been incorporated in the handling rates of containers.

The Cargo Owner or its agent shall only pay 65% of the total arrastre due to the cargo-handling contractor. The remaining 35% shall accrue to the Cargo Owner or its agent for providing the cargo-handling equipment. The PPA Government Share shall be based on the gross or total arrastre charge due on the shipment.

This, however, does not apply to stevedoring work where the rates have been determined on the premise that vessels are self-sustaining.

This Memorandum Circular shall take effect 15 April 2003 and shall remain in full force and effect until otherwise revoked by competent authority.

For compliance.

Adopted: 14 Apr. 2003

(SGD.) BENJAMIN B. CECILIO
  Assistant General Manager
  For Operations