Minutes of the Meeting dated December 14, 2010

HIGHLIGHTS/EXCERPTS FROM THE MINUTES OF MEETING WITH
DFPC PORT CLIENTS AND OTHER BUSINESS LOCATORS
DECEMBER 14, 2010

AGENDA: CONSULTATION/DIALOGUE REGARDING THE ISSUANCE OF PERMIT TO CONDUCT BUSINESS AND THE IMPLEMENTATION OF OTHER IMPORTANT POLICIES OF PFDA AFFECTING BUSINESS OPERATIONS INSIDE THE DFPC

The meeting was called to order at 9:30 am by the Port Manager, Mario M. Malinao. In attendance were the DFPC Division Chiefs, Transshipment Agents, Processors, Institutional Ice Buyers, Local Fish Buyers and Local Vessel Operators.. (Please see attached attendance sheet)

The Port Manager Malinao acknowledged the presence of the port clients who attended the meeting. He informed the reasons why he called the dialogue/consultation with port clients. The DPFC management wishes to clarify issues that directly affect the conduct of business inside the port particularly issuance of Permit to Conduct Business and implementation of other important policies. He assured the clients that PFDA would never be a hindrance/obstacle to the success of business rather a helping hand in all its endeavors.

On agenda No. 1: Accreditation and Permit to Conduct Business

The PM gave the floor to Mr. Renato Caceres, Technical staff, to present and clarify some issues on the issuance of Permit to Conduct Business and Accreditation system of port clients. (Pls. see attached link for the power point presentation).

PM Malinao citing the PFDA Office Order No. 8 series of 2006, clarified the difference of Accreditation and issuance of permit to Conduct Business, Accreditation Fee, shall be paid once upon approval of accreditation while the corresponding fee for the Permit to Conduct Business shall be paid every year and renewable on or before the expiry date and failure to renew shall invalidate client’s authority to conduct business inside the port and therefore not allowed to enter the port premises.

Ted Okubo from Sanko Pacific, commented that his company is complying religiously this port policy and for him this is nothing new.

PM informed the clients that a revised form will be issued in relation to the matter discussed.

On Agenda No. 2: Annual 10% escalation on lease rates as provided in the contracts.

While Mr. Malinao discussed the next agenda, Mr. Ted Okubo questioned how the 10% rate was derived. PM Malinao answered that the rate is based on a general ruling used by all regional fish ports. However, PM Malinao emphasized that any port client in good standing may request an exemption of the escalation rate from 10% to 5% per Excom Resolution No. 09037. A company may also file for exemption of the 10% escalation if the company spent a huge amount for renovation of building and processing facilities in order to comply and passed international standards. This is in the case of Davseatic.

On Agenda No. 4. Collection of Vessel Repair Fee in addition to Berthing:

Mr. Caceres with the Chief, HMOD presented item no. 3.

The legal basis for the collection of vessel repair fee was written in the Sec. 14, Rule 4 of the Board Resolution No. 6 series of 1979, which states that:

No vessel shall be allowed to undertake any repair while at berth unless granted prior permit by the PFDA.
Repair fees shall be collected for every major repair made on a vessel.

For the purpose of this provision, major repairs shall mean work done on the vessel which interferes or makes inevitable the suspension of the normal loading or unloading procedures of said vessel which shall include but not necessarily limited to, the following:

1. Cropping and renewal of deteriorating bulwark ports, shell plating, main deck, forecastle deck, poop deck, promenade deck, and bridge deck, including monkey house of flying deck;
2. Remodelling of the superstructure, bridge deck, crew’s quarters and other compartments;
3. Replacement & installation of capstan, winders, winches, gears, derricks, king post, or any other major
4. Replacement or installation of a new or auxiliary engine;
5. Cropping or replacement of all pipes, such assalt water pipes, oil line, tank top, salt water and fresh water tank including fuel oil tank and the like.
The PM informed the client that DFPC will charge the vessel if the following items stated above are done by the vessel. He added that a public hearing/dialogue should be conducted prior to the implementation of the said charges.

The rationale behind is that the berthing space is limited and there are other vessels who will utilize the berthing facilities. It is therefore necessary to accomplish the unloading activities very fast so that others who will use it.

In response, the body, specially the transshipment agents pose no objections on this matter.

On agenda no. 5: VAT Implementation

Mr. Luisito-Romeo M. Correa discussed a new direction for CY 2011 on the implementation of the Value Added Tax (VAT). To rationalized the implemention, the amount of port fees shall be rounded off to a whole number to spare DFPC staff of giving lose change and a faster delivery of service.

Other matters:

A. The Chief, ASFD announced to the body that clients may access information such as Memomrandum Circulars, Schedule of Port Fees, Office Orders and Board Resolutions and many others through its website. Clients may leave comments and blog in the website.

B. PM Malinao informed the body the updates and the agenda during their meeting held at the PFDA Central office in Manila. He was instructed by top management to review the port charges and fees and make some modification. Based on their scrutiny, some port charges were not adjusted for quite some time now. However, this will be subject for public hearing or dialogue with clients and stkaeholders prior to implementation.

C. PM Malinao assured the body that no upward adjustment shall be made to port fees connected or poweerd by Davao Light Company unless there is an increase from the power compnay itself.

D. PM requested cooperation from the port locators in the proper disposal of solid waste and waste water with special mention to the new client occupypng facilities of Polar Bear Company. The waste marinade caused some problems to the existing waste water treatment facilities of the port. He cited that DFPC will soon upgrade its facilities through JICA (Japan International Cooperation Agency) projected to commence on 2013.

E. PM urged the client to wear proper attire in the conduct of their operations, stricltly no wearing of shorts. The fishing vessel crew should likewise follow this policy.

F. PM reminded the body that smoking is allowed in designated areas only. The quayside and processing areas are the restricted areas for smoking. PM noted this, and right away instructed the HMOD staff to aatend to this request asap.

G. Entry of alcoholic beverages and liquor is limited to vessel at limited quantity. Transshipment agents who wishe to bring -in/supply liquor to the vessel should first secure approval from the Chief, HMOD.

H. Mr. Ted Okubo commented on the occurrence of small boats of the badjaos and requested DFPC management to provide designated areas for them.

I. The body agreed that solicitations/sales and marketing activities should be banned inside the port.

J. With regards to delayed issuance or on process Health Card issued by the City Healh Office, DFPC will still issue temporary ID but subject to submission of the health card on April 01. 2011, otherwise ID issued will be recalled/revoked.

K. DFPC personnel requested FESI representative to indicate the actual name of buyer in the sales invoice to easily identify accredited buyers and for prompt delivery of service to clients paying correponding fees at the gate or PMRD office.

l. PM asked if there are still comments, reaction ,objections and any other concern regarding operations inside the port. Th body raised no other issues and concern.

M. The meeting was adjourned 12:30 noon.

Prepared by:

MARIFE F. BORJA
OPM Staff

Noted by:

MARIO M. MALINAO
Port Manager

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