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‘DOING BUSINESS IN PHILIPPINES COMMENTARY MOVEMENT OF GOODS (TRANSPORT AND SHIPPING) [PHL 980-001] Laws relating to inward and outward transport Artcios 1732 to 1786 of the Chi Code ofthe Pilppines set forth certain rules in respect of ‘common carters. However the Code of Commerce and special laws and conventions, have Subsidaryappitation tothe Civil Code provisions on common carriers, paticuleriy ih respect of ‘veriand transportation and maritime cammeres. The Civil Code provides that contracts for ine Srriag of goods by sea from the Philipines tom forelgn country are governed by the lews of ‘that foreign country ‘lr land and water transport are regulated bythe respective government agencies under the iret control and supervision of the Department of Transportation and Communication. Under Presidential Decree No 1466 dated 11 1une 1978, Philippine fay carters and vessels are ‘Wen preference oer other carriers and vesel for the transport of persons and cargo to or om the Plippines where such goods are to be pal fr from Philippine funds or oars, subject to 8 1n-2004, Republic Act No 9295, otherwise known as the Domestic Shipping Ac of 2004 was pss Into l,i declare that iis 2 State ple to: (2) promote Fipine ownership of vessels operated under the Philippine lag; (0) attract private capital to Invest n the shipping Industry by creating a heathy and Competitive investient end operating environments (© provide necessary asistance and incantves forthe continued growth ofthe Philippine ‘domestic merchant marine fest; 4) encourage the Improvement and upgrading ofthe existing domestic merchant marine Meet ping crew te met international standard (6) ensure the continued viabilty of domestic shipping operations; and (0 encourage the development of a vabe shipbuilding and ship repair industry to support the expansion and modernisation ofthe Philippine domestic merchant marine fet an its strict adherence to safety standards which wil ensure the ecaworthines of al ea-borne structures (RA No 9295, x2) ‘Ta mpiement these policies, the Domestic Shipping Act of 2004 conferred jrtsition, powers and duties to the Maritime Industry Authory (MARINA): (2) Regier vescels; (2) Issue carticates of pubic convenience, or any extensions or amendments thereto, Authorsing the operation of all kinds, classes and types of vessel n domestic shiplng provided, that ne such carifeate shall be valid for 2 period of more than twesty-ve 25) years: (2) Meaty, suspend or revoke at any tine, upon notice and Nearing, any certifies, leance ‘or accreditation It may have Issued to any dormastle ship operator, (4) Establish and prescribe routes, zones or areas of operations of domestic ship operators; (5) Require any domestic sip operator to provide shipping services to any coastal ace, Island or region inthe country where such services are nacessar forthe development of the ‘area, to meet emergency seat requireont, or when pubic merest co weauines, (6) Sot safety standards for vessels In accordance with applicable conventions and Feoulations: Paget DOING BUSINESS IN PHILIPPINES COMMENTARY (7) Reauire all domes ship operators to comply with operational and safety standards for ‘esse sat by appleable conventons and regulations, maintain ite vessels in ste and Seivceable condition, rest the Standords ofsafey of ife at sea and safe menting requirements, and furnsh sae, adequate, effcent, rellable and proper service 2 ll times; (8) inspect al vessels b ensure and enforce compliance with safety standards and other regulations; (2) Ensure that all domi ship aperation shal have the financial capacty to provide and Sustain safe, vllable, ficient and economic passenger or cargo service, OY both (20) Determine the impact which any new service shall have to the locality i wil serve; (21) Adopt and enforce such rules an regulations which wil ensure compliance by every ‘domestic ship operator with requrod safety standards and other rules ang repultions on ese safety, (12) Adopt such rules and regulations which ensue the reasonable stability of passengers nd feight rates and, i necessary, to Inlervene In order to protect public interest; (13) Hear and adjudicate any complaint made In writing involving any vclation of this aw or the rules and regulations ofthe Author, (14) impose such fines aod panaties on, including the revocation of lcences of, sy ‘domestic ship operator who shal fall maintain ts vessels n safe and serviceable ondition, ‘ro shall volate oF fl to comply with safety regulations (15) Investigate any complaint made in wring against any domestic ship operator, or any Shpperor any group o shippers regarding any mater ivoving Welton of te rovarane a his het (16) Upon notice and hearing, impose such nes, suspend or revoke carticates of publ ‘onventnce or other licence sued, or otherwise penalise any ship operator, shipper oF ‘group of shippers found velating the provisions ofthis Act; and (22) tssue such rules ant regulations necessary to implement the provisions ofthis Act: Drovided, that such rues and regulations cannct change or in any way amend or be contrary tothe intent and purposes ofthis Act (RA No 9295, sec 10), Moreover, under the Domestic Shipping Act of 2004 only domestic shipowners or operators, that |e; those ships duly registered and le=tsed under Philippine law, may obtain franchises, Catifeates and other forms of suthoreaton forthe cariage of Carge or passenger or both, In the domestic trade (RA No 9295, sec 5). Ialso disallows foreign vesces from transporting passengers or cargo betwoar ports or places within the Palipine territorial water, except upon the grant of Special Permit bythe MARINA when no domestic vessels avalabe or sultste to Drove the needed shipping service and public interest warrants the same (RA No 9295, see 6). Presidential Decree No 760 (90 760), a5 amended, elms the registration of foreign owned \vossas under charter oF lass to Philippine nations, provided thatthe operation of tre wesset ‘hal be entirely in the hands of Philippine natlonas and free from any peription or Interference from the allen owner, except such actions to directly protect hs rghts 2s owner of {he vessel. It frtherrequtres thatthe repstred vessel shall be manned completely By lpn rau, excapt in casa of speclsed vessels and subject to rules and regulations prescribed by MARINA. A rocont executive Saer (Exective Order No 667) extended indefinitely the ’flectiveness of any charter or Tease contrac: entered into pursuant to PD 760, amended, “nis otherwise rovoked by the President ofthe Philippines. MARINA ADVISORY No 2005-004 suspended the requirement for tugbosts and barges in the domestic rade to secure a Certiteate of Publi Convontance (CPC) unde the implementing Rules ‘and Ragulations (IRR) of BA 5295 pending the outcome af further study on the matter {in addition, MARINA Advisory No 2007-001 requires all shipowners, operators, charteres, and/or {arco ownars to abtain laine msthorty fm Mana hates Corying manne meyore, ‘Supercargoes,shipowner representatives and other persone anboard ships inthe domestic trade. Page2 DOING BUSINESS IN PHILIPPINES COMMENTARY ‘The latter-authority to be Issued by the MARINA shal be vali forthe specifi voyage and {uration ae indiate inthe application. MARINA Advisory No 2007-02 provides that effective immediately, the MARINA shall no longer ‘prove vessel plans nor register Newly Aequired/Bullt Wooden Malled Ship as wall = ese CFCS to wooden hulled ships engaged In the carriage of cargous and passengers [PHL 180-002] Laws relating to movement and storage of goods Movement of goods "In genera, the Chi Code, Code of Commerce and the Carriage of Goods by Sea Act (*COGSA") ‘epulat the storage of goods and the mavernant thereat inte Philippines: Given the diversity of products end goods being stored and transported, however, various ordinances and regulations Fave been Ise by local government units and relevant government agencies, respectively, to Cover the storage and transpor of goods speci to thelr aaas of expertise. For instance, persons transporting marine products would have to present atthe pots ‘Sertineate from the Bureau of Rsneies ang Aquatic Resources stating tint the marine product is fot endangered. Persons transporting logs are required to present 2 permit rom the Department ‘of Environment and Natural Resources a various checkpoints, andthe tucks transporting the Togs are required to be weighed to ensure compliance with the stated load limit. kewise, ‘learance must be secured from the Plipine National Police forthe traneport of motor venicles bby sum. Also pertinent are the rgulations ised by the Bureau of Customs, Bureau of Quarantine and the Philppine Ports Authority. Moreover, Memorandum Circular No 147 sued by the MARINA provides the clearance Fequlremants for vehicles, animal, plants, forest product, fish and aguatic products, minerals Sand mineral products, and toxic and hazardous materials toe loaded onboard intesland ships. [PHL 480-003] International conventions ‘The Philippines isa party or signatory to the fllowing international Maritime Conventions + International Convention forthe Prevention of Plltion tothe Ses by Gil (OTLPOL) (ondon, £2 May 1954), In fore in the Pilppines on 19 January 1964 “Internationa Regulations for Preventing Colisions at Sea (London, 17 May to 17 une 1960), n ore in the Philipines on 11 Noverber 1965, + International Convention forthe Safety of Life at Sea (Londen, 17 June 1960), in force In {he Pippin on 26 November 1968. (SOLAS “60 and SOLAS"), + International Convention on Load Lines (1966), n force In the Philpines on 26 November isse. + International Convention on Tonnage Measurement of Ships (London, 23 une 1969). ‘UN Law ofthe Sea Convention 1982 ratified In 1986 by the Philippines, ' UN Convention on the Carriage of Goods by Sea (Hambure, 31 March 1978), signed by the Philippines on 14 June 1578. (This i net ye ate by the Philipines) {ASEAN Agreement forthe Facilitation of Search for Ships on Distress and Rescus of Survivor of Ship Accidents (Kuala Lumpur, 15 May 1975) was ratified by the Philipines on 25 huly 2975, Ti te nat ye in force the Philppines due tothe lack of catln feral reyulrmenss necessary for enforcement + Convention on the Inter-governmental Maritime Consultative Organization (nov IM), (Genova, 6 March 1948), force Inthe Philippines on 3 Novernber 1968, and other ferentlons sdopted by IMO (SOLAS 1974); LOABLINES; TONNAGE; INMARSAT "76, + Convention (140 No. 23) Conceming the Repatriation of Seamen as medi by the Fin Revision Convention (Montreal, 8 October 1946), In force in the Philipines on 37 November Pages