QuestionsQuestions (MIA MEMORANDUM CIRCULAR NO. 27-C)
Only Philippine nationals authorized to principally engage in overseas shipping and duly accredited by MARINA may charter and register any foreign-owned vessel under P.D. 866/1711.
The principal officers (e.g., President, Vice-President for Operations, General Manager, Freight/Chartering Managers or equivalents) must have at least three (3) years experience in both ship and shipping management.
At least PHP 1.5M for the first three (3) chartered vessels; the equity/capital must increase to PHP 2.5M for the charter of additional vessels in excess of three.
The corporate name must indicate that the company’s principal purpose is chartering or overseas shipping; any word/term suggesting the company is merely an agent or auxiliary must be eliminated or amended.
The applicant may bareboat charter up to seven (7) vessels for every owned vessel of at least 5,000 DWT permanently under Philippine registry.
It may initially bareboat charter five (5) vessels for a maximum of four (4) years per vessel.
No, not beyond four (4) years maximum period unless the applicant acquires at least one (1) vessel of at least 5,000 DWT through direct purchase or through conversion into a lease-irrevocable purchase financing scheme with at least a 10% downpayment and no balloon payments beyond the first half of the charter period.
The ratio of bareboat chartered tonnage to owned tonnage must be maintained at a maximum of 7:1 in terms of number of vessels.
None, provided that evidence of ownership is submitted to MARINA.
The vessel must be classed by a recognized international classification society and must have valid Continuous Machinery Survey (CMS) and Continuous Hull Survey (CHS) at the time of application issued by an international accredited classification society.
The vessel shall not be more than 15 years old; in meritorious cases it may be more than 15 but not more than 25 years old. Vessel age is reckoned from the date of launching.
The pro-forma bareboat (and time charter) contracts must be in accordance with international chartering practices.
Proof of payment of the withholding tax of 4.5% corresponding to previously chartered vessels of the company must be or shall have been submitted.
Among others: certification from an internationally accredited classification society that the vessel’s class is maintained (within 30 days from approval of the charter), copies of duly executed and authenticated bareboat/time charter parties (within 30 days from execution, but not later than 6 months from approval), and copies of duly executed lease-financing agreements (within 30 days after MARINA approval).
Documents/certificates issued by the original flag of registry on board the vessel must be removed and taken possession of by the charterer within 30 days after accepting delivery.
After registration and acceptance of delivery, the vessel must immediately and at all times during the charter period utilize the Philippine flag and call sign duly authorized by the Philippine Coast Guard and National Telecommunications Commission, respectively.
The vessel must be completely manned by Filipino officers and crew; no foreign officer/crew is allowed except as supernumeraries. For specialized vessels, foreign officers/crew may be allowed in lieu of Filipino officers/crew only for a maximum period of six (6) months.
MARINA conducts a hearing through its Legal Office/Office of Overseas Shipping to allow the shipping entity to explain circumstances. First violations may incur up to PHP 10,000; second up to PHP 20,000; continued willful neglect up to PHP 20,000 per month or revocation/cancellation of the Permanent Certificate of Philippine Registry. Violations of conditions no. 4 and 5 specifically carry PHP 100,000 and bar bareboat chartering for up to five (5) years. Findings/recommendations go to the Administrator, whose decision becomes final after 15 days unless appealed to the MARINA Board within the period.
It takes effect immediately.