"Without the exemption, the 50-percent additional cargo handling premium will definitely be passed on to lowly coconut farmers, substantially reducing their price take," PCA Administrator Danilo Coronacion said in a letter to PPA general manager Alfonso Cusi, as he cited the agency’s Administrative Order 04-2002 exempting copra from paying the cargo handling premium.
"Your action, which came at a time when the coconut farmers clamor for a better price of their copra, will go a long way towards improving their quality of life," Coronacion added.
PPA executive assistant Vincent Tan said AO 04-2002 is in line with President Arroyo’s directive to lower the transport cost of goods and other commodities. With the exemption of copra from payment of additional cargo handling premium, charges on both stevedoring and arrastre (direct delivery) services shall be applied using regular cargo handling fees for bulk and breakbulk cargo on a per metric ton basis.
The International Maritime Dangerous Goods (IMDG) Code of the International Maritime Organization (IMO) classifies copra as a spontaneous combustible cargo T (class 4.2). For this reason, it is subject to additional 50 percent cargo handling premium if handled in bulk or breakbulk and 25 percent if containerized as provided for in the previous PPA Administrative Order 02-89.
The PPA, however, stressed that it was not setting aside the matter of safety and that copra shall remain as Class 4.2 dangerous cargo and shall be handled, transported and stored accordingly in compliance with pertinent provisions of the authority. – Nestor Etolle