Laws Governing Shipping in the Philippines

It had come to my attention that awareness on the laws to follow was not given enough observance. To abide such is to have a peaceful transaction in the sea. It would be best to raise notice to this and let shipping companies in the Philippines know what they should be following.

Republic Act No. 7471

Upon doing research on the laws governing the Philippines Overseas Shipping Development. Included in here is the republic act no. 7471 sections 1 – 4.

Section 1. Title. — This Act shall be known and cited as the "Philippine Overseas Shipping Development Act."

Section 1 states to focus on the development of Philippine Overseas Shipping.

Sec. 2. Declaration of Policy. — It is hereby declared the policy of the Government of the Philippines to:

(a) Develop and maintain a Philippine Metropolitan Marine composed of well-equipped, safe and modern vessels most suited for, Philippine requirements and conditions, manned by qualified Filipino officers and crew, and owned and operated under the Philippine flag by citizens of the Philippines or by associations or corporations organized under the laws of the Philippines, at least sixty percent (60%) of the capital of which is owned by citizens of the Philippines;

Section 2 point (a) states to have the shipping company be employed with Filipino crew thereby giving opportunities to our fellow countrymen and doing a thorough check for the durability of ship and safety of its passengers. Giving importance to the Philippines flag symbolizing ownership from a citizen of the Philippines. At least 60% of the shares should be owned by a Filipino.

(b) Assist in the development, recovery and expansion of Philippine overseas shipping capable of meeting the requirements of the expanding international trade of the Philippines;

Section 2 point (b) focuses on the progressing state of the international trade of the Philippines. To obliged fellow men to help in developing our ways to stay on the trend and let them widen their reach and progress for the better.

(c) Provide assistance to Philippine Shipping enterprises and encourage the long range vessel acquisition development modernization and expansion through private investments without direct government financial assistance; and

Section 2 point (c) The shipping companies should comply in giving assistance on the Philippines shipping enterprise. It was implied to have a private investor without asking any financial help from the government.

(d) Create a Healthy climate to attract private enterprises.

Section 2 point (d) It shall be practice to have good work ethics and exercise cleanliness amongst the group and maintain a harmless environment to persuade private enterprises.

Sec. 3. Definition. — As used this Act:

(a) "Philippine overseas shipping" means the transport of goods and/or passengers by a ship owned and operated under the Philippine flag by a Philippine shipping enterprise, except when the ship is operated solely between ports in the Philippines;

Section 3 point (a) As defined by this section, Philippine overseas shipping main goal is to deliver goods as well as passengers and shall be owned by a Philippine Citizen under the Philippine flag by a Philippine shipping enterprise. This should not be needed when transport of goods is only between ports in the Philippines.

(b) "Philippine shipping enterprise" means a citizen of the Philippines or an association or corporation organized under the laws of the Philippines, at least sixty percent (60%) of the capital of which is owned by citizens of the Philippines and engaged exclusively in Philippine overseas shipping;

Section 3 point (b) states Philippine shipping enterprise is where the owner of the enterprise is a Filipino or any organization founded under the laws of the Philippines. And almost 60% if not more is owned by a Filipino and a legit Philippine overseas shipping businessman.

(c) "MARINA" means the Maritime Industry Authority;

Section 3 point (c) a sector named ‘Marina’ or Maritime Industry Authority shall be the governing party for the said business transaction.

(d) "Monetary authority" means the Central Bank of the Philippines and any other agency in charge of foreign exchange controls; and

Section 3 point (d) Monetary authority are the authorized agency which handles the involve money in the transaction. This shall be handled by the Central Bank of the Philippines as well as any other agency which handles the foreign exchange.

(e) "Regulation" means the rules and regulations promulgated pursuant to Section 10 hereof.

Section 3 point (e) Regulations are the rules to be followed.

Sec. 4. Foreign Exchange Requirements. — Foreign exchange requirements of Philippine Shipping enterprises for the purchase of oceangoing vessels for registration under the Philippine flag, for repair or improvement of vessels, for importation of engines, spare parts, accessories, supplies, containers and for other expenses required for the operation of vessels in foreign ports or in the high seas, when recommended by the MARINA, shall be made available to the Philippine shipping enterprise subject to the regulations.

Section 4 states that the requirements of the Philippine shipping enterprises shall be present and be checked as recommended by the MARINA under the regulated laws. The requirements shall involve:

• Registration documents
• Status of the vessel
• Detailed outline of the engine of the vessel
• Report on the expenses of the transaction

Source: www.chanrobles.com

This article is brought to you by NSMS, a trusted and reliable provider of staff to shipping companies.

Share on Google Plus

About Nancy Summer Marine