Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 1085)
The main purpose is to accelerate the development and expansion of the Philippines' overseas Merchant Marine fleet by regulating overseas shipping companies engaged in liner service to and from Philippine ports.
The Maritime Industry Authority (MARINA) is directed to implement the regulations prescribed in the Letter of Instructions No. 1085.
All overseas shipping companies, whether Filipino-owned or foreign-owned, engaged in liner service to and from Philippine ports, must secure a permit from MARINA prescribing their schedule and sailing frequencies before calling at Philippine ports.
No, vessels already in operation on the date of the issuance (November 21, 1980) are automatically granted the required permit.
Ships operating without permits shall be subject to penalties including fines, refusal of berthing space, and denial of priority at Philippine ports.
MARINA shall regulate the entry of new operators into routes adequately served by traditional operators based on cargo availability and the 40-40-20 sharing criteria under the UNCTAD Code of Conduct for Liner Conferences.
The policy adheres to the principles of international agreements on shipping.
The President of the Philippines has final approval over the guidelines, rules, and regulations formulated by MARINA for the implementation of this Letter of Instructions.
The 40-40-20 sharing criterion is used to regulate entry of new operators on routes, ensuring proper allocation of shipping space between traditional operators and new entrants as guided by the UNCTAD Code of Conduct for Liner Conferences.