Rights of ATI in Case of Unpaid Port Charges

As holder of a concession to operate the Port of South Harbor Manila, Asian Terminals, Inc. (“ATI”) is obligated to collect port charges prescribed by Philippine law through the Philippine Ports Authority (the “Authority”) to be imposed upon vessels, containers and cargoes. In the event of failure to pay such port charges, ATI may on behalf of the Authority:

  1. Distrain or arrest such vessel and tackle, apparel or furniture belonging to the vessel, and detain the same until the amount due have been paid; and
  2. Enforce a lien by operation of law upon containers and cargoes, and detain the same until the amount of rates or charges is fully paid.

Furthermore, if any goods which have been placed in or on the Port of South Harbor Manila are not removed therefrom within the prescribed period after the legal permit for their withdrawal and/or release from Customs custody, or the authority to load, in case of exports, has been issued by the Bureau of Customs, ATI may dispose of any such goods in the manner as the Authority deems fit in order to recover the lien. Notwithstanding the above rights and remedies provided under existing law, the vessel, shipping line, consignee, or exporter using the Port of South Harbor Manila hereby:

  1. appoint ATI as its irrevocable attorney-in-fact with full power of substitution/delegation to sign or endorse any and all documents and perform any and all acts and things required or necessary in the premises to enforce the above liens and exercise remedies for non-payment;
  2. acknowledge ATI’s and the Authority’s rights to enforce the above remedies without notice to such vessel, shipping line, consignee, or exporter, apply proceeds from any sale of the above containers or goods and, by virtue hereof, discharge ATI and the Authority of any liability whatsoever in respect of the vessel, container or cargo.