QuestionsQuestions (EXECUTIVE ORDER NO. 470)
The purpose is to amend Memorandum Circular No. 42-A to encourage investments in acquiring vessels for overseas operations through importation and local purchase, stimulating the development and growth of bonafide shipowning.
A MARINA-accredited overseas shipping company can bareboat charter an additional seven (7) vessels on top of its existing chartered ships for every owned vessel.
Yes, a shipowning company has the option to allocate its quota of chartered vessels to qualified subsidiary companies.
The company must have a paid-up capital of at least P 7.0 Million, the vessel to be acquired must be at least 2,500 dwt, and the company or its affiliates must pay at least 50% of the total purchase price before bareboat chartering up to five additional vessels.
The company shall pay a 4.5% withholding tax on the vessel's bareboat charter hire to the Bureau of Internal Revenue and submit proof within 60 days, and pay a penalty of P 500,000.00. Bonus vessels under LIP scheme shall not have their charter parties extended nor be replaceable.
An existing bareboat chartering company without owned tonnage may replace a previously deleted bareboat chartered vessel deleted after December 31, 1985, subject to the necessary incremental increase in paid-up capitalization per MC No. 42.
Applicants must submit documents stipulated under MC No. 85 and implementing rules of PDs 760/866/1711, notarized certification from the seller or mortgagee bank attesting 50% payment for LIP arrangements, and other documents deemed necessary by the MARINA Administrator.
Memorandum Circular Nos. 33-A, 38, and 42 and the Rules and Regulations implementing PDs 760/866/1711 that are not inconsistent with this Memorandum Circular remain in full force and effect.
Memorandum Circular No. 42-A is repealed by MARINA Memorandum Circular No. 111.
It took effect fifteen (15) days after its publication once in a newspaper of general circulation.