Article 12 Sec 11 1987 Consti Article 14 Sec 8 1935 Consti Article 14 Sec 5 1973 Consti

No franchise, certificate, or any other form
of authorization for the operation of a
public utility shall be granted except to
citizens of the Philippines or to
corporations or associations organized
under the laws of the Philippines, at least
sixty per centum of whose capital is
owned by such citizens; nor shall such
franchise, certificate, or authorization be
exclusive in character or for a longer
period than fifty years. Neither shall any
such franchise or right be granted except
under the condition that it shall be subject
to amendment, alteration, or repeal by the
Congress when the common good so
requires. The State shall encourage equity
participation in public utilities by the
general public. The participation of foreign
investors in the governing body of any
public utility enterprise shall be limited to
their proportionate share in its capital, and
all the executive and managing officers of
such corporation or association must be
citizens of the Philippines.
No franchise, certificate, or any other form
of authorization for the operation of a
public utility shall be granted except to
citizens of the Philippines or to
corporations or other entities organized
under the laws of the Philippines sixty per
centum of the capital of which is owned by
citizens of the Philippines, nor shall such
franchise, certificate, or authorization be
exclusive in character or for a longer
period than fifty years. No franchise or
right shall be granted to any individual,
firm, or corporation, except under the
condition that it shall be subject to
amendment, alteration, or repeal by the
Congress when the public interest so
requires.
No franchise, certificate, or any other form
of authorization for the operation of a
public utility shall be granted except to
citizens of the Philippines at least sixty per
centum of the capital of which is owned by
such citizens, nor shall such franchise,
certificate, or authorization be exclusive in
character or for a longer period then fifty
years. Neither shall any such franchise or
right be granted except under the
condition that it shall be subject to
amendment, alteration, or repeal by the
National Assembly when the public
interest so requires. The State shall
encourage equity participation in public
utilities by the general public. The
participation of foreign investors in the
governing body of any public utility
enterprise shall be limited to their
proportionate share in the capital thereof.

CA 146: Public Service Act ..... Section 13. ..... (b) The term
"public service" includes every person that now or hereafter
may own, operate, manage, or control in the Philippines, for
hire or compensation, with general or limited clientele, whether
permanent, occasional or accidental, and done for general
business purposes, any common carrier, railroad, street
railway, traction railway, sub-way motor vehicle, either for
freight or passenger, or both with or without fixed route and
whether may be its classification, freight or carrier service of
any class, express service, steamboat or steamship line,
pontines, ferries, and water craft, engaged in the transportation
of passengers or freight or both, shipyard, marine railways,
marine repair shop, [warehouse] wharf or dock, ice plant, ice-
refrigeration plant, canal, irrigation system, gas, electric light,
heat and power water supply and power, petroleum, sewerage
system, wire or wireless communications system, wire or
wireless broadcasting stations and other similar public
services: Provided, however, That a person engaged in
agriculture, not otherwise a public service, who owns a motor
vehicle and uses it personally and/or enters into a special
contract whereby said motor vehicle is offered for hire or
compensation to a third party or third parties engaged in
agriculture, not itself or themselves a public service, for
operation by the latter for a limited time and for a specific
purpose directly connected with the cultivation of his or their
farm, the transportation, processing, and marketing of
agricultural products of such third party or third parties shall not
be considered as operating a public service for the purposes of
this Act.
Sec. 19. Chapter 5 Title 15 Powers and Functions of the property in their charges as well as the safety of persons and
Land Transportation Franchising and Regulatory Board. property within their areas of operation;
The Board shall:
(12) Coordinate and cooperate with other government
(1) Prescribe and regulate routes, economically viable agencies and entities concerned with any aspect involving
capacities, and zones or areas of operation of public land public land transportation services with the end in view of
transportation services provided by motorized vehicles in effecting continuing improvement of such services; and
accordance with the public land transportation development
plans and programs approved by the Department of (13) Perform such other functions and duties as may be
Transportation and Communications; provided by law, or as may be necessary, or proper or
incidental to the purposes and objectives of the Department;
(2) Issue, amend, revise, suspend or cancel Certificates of
Public Convenience or permits authorizing the operation of
public land transportation services provided by motorized
vehicles, and prescribe the appropriate terms and conditions
therefor;

(3) Determine, prescribe, approve and periodically review

and adjust reasonable fares, rates and other related charges,
relative to the operation of public land transportation services
provided by motorized vehicles;

(4) Issue preliminary or permanent injunctions, whether

prohibitory or mandatory, in all cases in which it has jurisdiction
and in which cases the pertinent provisions of the Rules of
Court shall apply;

(5) Punish for contempt of the Board, both direct and

indirect, in accordance with the pertinent provisions of, and the
penalties prescribed by, the Rules of Court;

(6) Issue subpoena and subpoena duces tecum and to

summon witnesses to appear in any proceedings of the Board,
to administer oaths and affirmations, and, in appropriate cases,
to order the search and seizure of all vehicles and documents,
upon probable cause and as may be necessary for the proper
disposition of the cases before it;

(7) Conduct investigations and hearings of complaints for

violation of the public service laws on land transportation and
of the Board's rules and regulations, orders, decisions or
rulings and to impose fines or penalties for such violations;

(8) Review motu propio the decisions/actions of the Regional

Franchising and Regulatory Offices;

(9) Promulgate rules and regulations governing proceedings

before the Board and the Regional Franchising and Regulatory
Office. However, except with respect to paragraphs 4, 5, 6, and
7 hereof, the rules of procedure and evidence prevailing in the
courts of law should not be controlling but rather the spirit and
intention of said rules. The Board and the Regional Franchising
and Regulatory Offices shall use every and all reasonable
means to ascertain facts in each case speedily and objectively
and without regard to technicalities of law and procedures, all
in the interest of due process;

(10) Fix, impose and collect, and periodically review and

adjust, reasonable fees and other related charges for services
rendered;

(11) Formulate, promulgate, administer, implement and

enforce rules and regulations on land transportation public
utilities, standards of measurements or design, and rules and
regulations requiring operators of any public land
transportation service to equip, install and provide in their
utilities and in their stations such devices, equipment, facilities
and operating procedures and techniques as may promote
safety, protection, comfort and convenience to persons and
RA 776: Civil Aeronautics Act..... Sec. 11. Nature, terms
and conditions. A Certificate of Public Convenience and
Necessity is a permit issued by the Board authorizing a person
to engage in air commerce and/or air transportation, foreign
and/or domestic.
Any permit may be altered, amended, modified, suspended,
cancelled or revoked by the Board in whole or in part, upon
complaint or petition or upon the Board's initiative as
hereinafter provided, whenever the Board finds such action to
be in the public interest.
There shall be attached to the exercise of the privileges
granted by the permit, or amendment thereto, such reasonable
terms, conditions or limitations as, in the judgment of the
Board, the public interest may require.
No permit shall confer any proprietary, property, or exclusive
right in the use of any air space, civil airway, landing area or
government air-navigation facility.
The permit shall, among others, specify the terminal and
intermediate points, if any, between which the air carrier is
authorized to operate; the service to be rendered; the time of
arrival and departure at each point, and the frequency of
flights: Provided, That no change in routes, rates, schedules,
or frequency nor supplemental or additional flights to those
covered by an Air Commerce Permit or franchise shall be
effected without prior approval of the Civil Aeronautics Board.
Insofar as the operation is to take place without the Philippines,
the permit shall designate the terminal and intermediate points
only insofar as the Board shall deem practicable, and
otherwise shall designate only the general route or routes to be
followed.
No carrier shall abandon any route, or part thereof for which a
permit has been issued, unless upon findings by the Civil
Aeronautics Board that such an abandonment is uneconomical
and is in the public interest.
PD 474: Charter of the Maritime Industry Authority.....
Section 12.
Specific Powers and Functions of the Administrator. In addition
to his general powers and functions, the Administrator shall;
a. Issue Certificate of Philippine Registry for all vessels being
used in Philippine waters, including fishing vessels covered by
Presidential Decree No. 43 except transient civilian vessels of
foreign registry, vessels owned and/or operated by the Armed
Forces of the Philippines or by foreign governments for military
purposes, and bancas, sailboats and other watercraft which
are not motorized, of less than three gross tons;
b. Provide a system of assisting various officers, professionals,
technicians, skilled workers and seamen to be gainfully
employed in shipping enterprises, priority being given to
domestic needs;
c. In collaboration and coordination with the Department of
Labor, to look into, and promote improvements in the working
conditions and terms of employment of the officers and crew of
vessels of Philippine registry, and of such officers and crew
members who are Philippine citizens and employed by foreign
flag vessels, as well as of personnel of other shipping
enterprises, and to assist in the settlement of disputes between
the shipowners and ship operators and such officers and crew
members and between the owner or manager of other shipping
enterprises and their personnel;
d. To require any public water transport utility or Philippine flag
vessels to provide shipping services to any coastal areas in the
country where such services are necessary for the
development of the area, to meet emergency sealift
requirements, or when public interest so requires;
e. Investigate by itself or with the assistance of other
appropriate government agencies or officials, or experts from
the private sector, any matter within its jurisdiction, except
marine casualties or accidents which shall be undertaken by
the Philippine Coast Guard;
f. Impose, fix, collect and receive in accordance with the
schedules approved by the Board, from any shipping
enterprise or other persons concerned, such fees and other
charges for the payment of its services;
g. Inspect, at least annually, the facilities of port and cargo
operators and recommend measures for adherence to
prescribed standards of safety, quality and operations;
h. Approve the sale, lease or transfer of management of
vessels owned by Philippine Nationals to foreign owned or
controlled enterprises;
i. Prescribe and enforce rules and regulations for the
prevention of marine pollution in bays, harbors and other
navigable waters of the Philippines, in coordination with the
government authorities concerned;
j. Establish and maintain, in coordination with the appropriate
government offices and agencies, a system of regularly and
promptly producing, collating, analyzing and disseminating
traffic flows, port operations, marine insurance services and
other information on maritime matters;
k. Recommend such measures as may be necessary for the
regulation of the importation into and exportation from the
Philippines of vessels, their equipment and spare parts;
l. Implement the rules and regulations issued by the Board of
Transportation; lawphi1.net
m. Compile and codify all maritime laws, orders, rules and
regulations, decisions in leasing cases of courts and the
Authority's procedures and other requirements relative to
shipping and other shipping enterprises, make them available
to the public, and, whenever practicable to publish such
materials;
n. Delegate his powers in writing to either of the Deputy
Administrators or any other ranking officials of the Authority;
Provided, That he informs the Board of such delegation
promptly; and
o. Perform such other duties as the Board may assign, and
such acts as may be necessary and proper to implement this
Decree.
Sec 3 EO 125-A amending Sec 14 of EO 125
(REORGANIZING THE MINISTRY OF TRANSPORTATION
AND COMMUNICATIONS). April 13, 1987
Sec. 3. Section 14 of said Executive Order is hereby
renumbered as Section 12 and amended to read as follows:
"Sec. 12. Maritime Industry Authority. The Maritime Industry
Authority is hereby retained and shall have the following
functions:
(a) Develop and formulate plans, policies, programs, projects,
standards,
specifications and guidelines geared toward the promotion and
development of the maritime industry, the growth and effective
regulation of shipping enterprises, and for the national security
objectives of the country;
(b) Establish, prescribe and regulate routes, zones and/or
areas of operation of particular operators of public water
services;
(c ) Issue Certificates of Public Convenience for the operation
of domestic and overseas water carriers;
(d) Register vessels as well as issue certificates, licenses or
documents necessary or incident thereto;
(e) Undertake the safety regulatory functions pertaining to
vessel construction and operation including the determination
of manning levels and issuance of certificates of competency
to seamen;
(f) Enforce laws, prescribe and enforce rules and regulations,
including penalties for violations thereof, governing water
transportation and the Philippine merchant marine, and
deputize the Philippine Coast Guard and other law
enforcement agencies to effectively discharge these functions;
(g) Undertake the issuance of licenses to qualified seamen
and harbor, bay and river pilots;
(h) Determine, fix and/or prescribe charges and/or rates
pertinent to the operation of public water transport utilities,
facilities and services except in cases where charges or rates
are established by international bodies or associations of which
the Philippines is a participating member or by bodies or
associations recognized by the Philippine Government as the
proper arbiter of such charges or rates.
(i) Accredit marine surveyors and maritime enterprises
engaged in shipbuilding, shiprepair, shipbreaking, domestic
and overseas shipping ship management and agency;
(j) Issue and register the continuous discharge book of
Filipino seamen;
(k) Establish and prescribe rules and regulations, standards
and procedures for the efficient and effective discharge of the
above functions;
(l) Perform such other functions as may now or hereafter be
provided by law."
Sec 10 of RA 9295: Domestic Shipping Development Act (16) Upon notice and hearing, impose such fines, suspend or
revoke certificates of public convenience or other license
SEC. 10. Jurisdiction; Power; and Duties of MARINA. - The issued, or otherwise penalize any ship operator, shipper or
MARINA shall have the power and authority to: group of shippers found violating the provisions of this Act; and

(1) Register vessels; (17) Issue such rules and regulations necessary to implement
the provisions of this Act: Provided, That such rules and
(2) Issue certificates of public convenience or any extensions regulations cannot change or in any way amend or be contrary
or amendments thereto, authorizing the operation of all kinds. to the intent and purposes of this Act.
Classes and types of vessels in domestic shipping: Provided,
That no such certificate shall be valid for a period of more than
twenty-five (25) years;

(3) Modify, suspend or revoke at any time upon notice and

hearing, any certificate, license or accreditation it may have
issued to any domestic ship operator;

(4) Establish and prescribe routes, zones or areas of

operations of domestic ship operators;

(5) Require any domestic ship operator to provide shipping

services to any coastal area, island or region in the country
where such services are necessary for the development of the
area, to meet emergency sealift requirements, or when public
interest so requires;

(6) Set safety standards for vessels in accordance with

applicable conventions and regulations;

(7) Require all domestic ship operators to comply with

operational and safety standards for vessels set by applicable
conventions and regulations, maintain its vessels in safe and
serviceable conditions, meet the standards of safety of life at
sea and safe manning requirements, and furnish safe,
adequate, efficient, reliable and proper service at all times;

(8) Inspect all vessels to ensure and enforce compliance with

safety standards and other regulations;

(9) Ensure that all domestic ship operators shall have the
financial capacity to provide and sustain safe, reliable, efficient
and economic passenger or cargo service, or both;

(10) Determine the impact which any new service shall have to
the locality it will serve;

(11) Adopt and enforce such rules and regulations which will
ensure compliance by every domestic ship operator with
required safety standards and other rules and regulations on
vessel safety;

(12) Adopt such rules and regulations which ensure the

reasonable stability of passengers and freight rates and, if
necessary, to intervene in order to protect public interest;

(13) Hear and adjudicate any complaint made in writing

involving any violation of this law or the rules and regulations of
the Authority;

(14) Impose such fines and penalties on, including the

revocations of licenses of any domestic ship operator who shall
fail to maintain its vessels in safe and serviceable condition, or
who shall violate or fail to comply with safety regulations;

(15) Investigate any complaint made in writing against any

domestic ship operator, or any shipper, or any group of
shippers regarding any matter involving violations of the
provisions of this Act;
CA 146: Public Service Act ..... Section 13. ..... (a)
The Commission shall have jurisdiction, supervision, and
control over all public services and their franchises, equipment,
and other properties, and in the exercise of its authority, it shall
have the necessary powers and the aid of the public force:
Provided, That public services owned or operated by
government entities or government-owned or controlled
corporations shall be regulated by the Commission in the same
way as privately-owned public services, but certificates of
public convenience or certificates of public convenience and
necessity shall not be required of such entities or corporations:
And provided, further, That it shall have no authority to require
steamboats, motor ships and steamship lines, whether
privately-owned, or owned or operated by any Government
controlled corporation or instrumentality to obtain certificate of
public convenience or to prescribe their definite routes or lines
of service.
CA 146: Public Service Act ..... Section 16. ..... (a)
Section 16. Proceedings of the Commission, upon notice and
hearing. - The Commission shall have power, upon proper
notice and hearing in accordance with the rules and provisions
of this Act, subject to the limitations and exceptions mentioned
and saving provisions to the contrary :
(a) To issue certificates which shall be known as certificates of
public convenience, authorizing the operation of public service
within the Philippines whenever the Commission finds that the
operation of the public service proposed and the authorization
to do business will promote the public interest in a proper and
suitable manner. Provided, That thereafter, certificates of
public convenience and certificates of public convenience and
necessity will be granted only to citizens of the Philippines or of
the United States or to corporations, co-partnerships,
associations or joint-stock companies constituted and
organized under the laws of the Philippines; Provided, That
sixty per centum of the stock or paid-up capital of any such
corporations, co-partnership, association or joint-stock
company must belong entirely to citizens of the Philippines or
of the United States: Provided, further, That no such
certificates shall be issued for a period of more than fifty years.
Sec 3 of RA 9295: Domestic Shipping Development Act
Definition of Terms. - As used in and for purposes of this Act,
the following terms, whether in singular or plural are hereby
defined as follows:
(a) "Domestic shipping" shall mean the transport of passenger
or cargo, or both, by ships duly registered and licensed under
Philippine law to engage in trade and commerce between
Philippine ports and within Philippine territorial or internal
waters, for hire or compensation, with general or limited
clientele, whether permanent occasional or incidental, with or
without fixed routes, and done for contractual or commercial
purposes;
(b) "Domestic trade" shall mean the sale, barter or exchange of
goods, materials or products within the Philippines;
(c) "Domestic Ship Operator" or "Domestic Ship Owner" may
be used interchangeably and shall mean a citizen of the
Philippines, or a commercial partnership wholly owned by
Filipinos, or a corporation at least sixty percent (60%) of the
capital of which is owned by Filipinos, which is duly authorized
by the Maritime Industry Authority (MARINA) to engage in the
business of domestic shipping;
(d) "Shipper" shall mean any person, partnership or
corporation who shall procure for itself the services of a
domestic ship operator for the carriage of its cargo in the
domestic trade upon payment of proper compensation;
(e) "MARINA" shall mean the Maritime Industry Authority;
(f) "Ship" or "Vessel" may be used interchangeably and shall
mean any kind, class or type of craft or artificial contrivance
capable of floating in water, designed to be used, or capable of
being used as a means of water transport in the domestic trade
for the carriage of passengers or cargo, or both, utilizing its
own motive power or that of another;
(g) "Importation" shall mean the direct purchase, lease or
charter of newly constructed or previously owned ships, or the
purchase of ship's spare parts from foreign sources or from Sec 12 of RA 776: Civil Aeronautics Act
registered enterprises operating in special economic zones as
this terms is defined in Republic Act No. 7916 entitled, "The Citizenship requirement. Except as otherwise provided in the
Special Economic Zone Act of 1995," Constitution and existing treaty or treaties, a permit authorizing
a person to engage in domestic air commerce and/or air
(h) "Spare parts" shall mean the replacement parts or transportation shall be issued only to citizens of the
components of vessel, including but not limited to its hull, Philippines.
engines, machineries, equipment, appurtenances, necessaries
accessories, article, supplies, materials, steelplates, aluminum
plates, other metal plates, communications, equipment, and
other parts or components thereof, installed abroad the ships
necessary for its safe and efficient navigation and operation;

(i) "Certificate of Public Convenience' shall mean the license

on authority issued by MARINA to a domestic ship operator to
engage in domestic shipping;

(j) "Cargo handling equipment' shall mean any machinery, gear

or equipment used by the ship operator or a duly authorized
and licensed port operator to service or handle cargo, on board
the vessel at the port or in the terminal or container yard such
as, but not limited to cranes, forklifts, top lifts, stackers, tractor
heads, containers, pallet boards and the like, including all
spare parts, replacement parts, appurtenances accessories,
articles, supplies and materials thereof;

(k) "Shipbuilding" shall mean the design, construction,

launching and outfitting of all types of ships and watercraft;

(l) "Ship repair" shall mean the overhaul, refurbishment

renovation improvement, or alteration of the hull, machineries,
equipment, outfits and components of all types of ships;

(m) "Shipyard" shall mean the shipbuilding or repair facilities

which have the capability to lift vessels above the waterline in
order to effect ship work on vessels, appendages, structure,
machinery and equipment; and

(n) "Shipbuilder" or "Ship repairer" shall mean a citizen of the

Philippines, or a commercial partnership owned by majority of
Filipinos or a corporation incorporated under the laws of the
Philippines, the capital of which is owned or controlled in any
proportion by Filipinos or by foreign nationals, or by both such
Filipinos or foreign nationals, or by corporations whether
Filipino or foreign-owned, which is duly authorized by the
MARINA to engage in the business of shipbuilding or ship
repair or to otherwise operate a shipyard, graving dock or
marine repair yard.

Sec 5

Authority to Operate. - No franchise, certificate or any other

form authorization for the carriage of cargo or passenger, or
both in the domestic trade, shall be granted except of domestic
ship owners or operators.

Sec 6

Foreign Vessels Engaged in Trade and Commerce in the

Philippines Territorial Waters. - No foreign vessel shall be
allowed to transport passengers or cargo between ports or
place within the Philippine territorial waters, except upon the
grant Special Permit by the MARINA when no domestic
vessels is available or suitable to provide the needed shipping
service and public interest warrants the same.