Policy purpose and coverage
- The Circular is intended to foster standards for domestic shipping operations to protect the public interest.
- The Circular is intended to generate vital information and data to enable MARINA to supervise, regulate, and rationalize organizational management, ownership, and operation of interisland water transport utilities.
- The Circular aims to prevent the proliferation of incompetent, inefficient, unreliable and fly-by-night vessel operators.
- The Circular applies to all persons, corporations, firms, and entities engaged in the use of vessels for the carriage of passengers or cargo between various ports and places in the Philippines.
- Domestic shipping entities already registered/accredited under MARINA Memorandum Circular Nos. 9 and 51 must be accredited under this Circular after a period of one (1) year from its effectivity.
Accreditation qualification requirements
- An applicant must meet all qualification requirements and the corresponding documentary requirements before MARINA issues a Certificate of Accreditation.
- The applicant must satisfy citizenship/equity participation requirements: it must be a Philippine citizen/permanent resident, or a Philippine corporation/co-partnership/association/joint-stock company with at least sixty percent (60%) of the subscribed capital entirely belonging to citizens of the Philippines.
- The applicant must have the correct nature of business undertaking:
- For corporations/partnerships: the primary purpose reflected in the Articles of Incorporation/Articles of Partnership must be to engage primarily in domestic shipping business/operation.
- For single proprietorships: domestic shipping must be a major activity or concern and the proprietor must be duly registered with the Bureau of Domestic Trade/Department of Trade and Industry.
- The applicant must meet management competence requirements:
- For corporations/partnerships: at least two (2) of the company’s principal officers (e.g., President, Vice-President for Operations, or General Manager, or equivalents) must have at least two (2) years experience in ship management, shipping operations, and/or chartering; and the CEO and COO (or equivalents) must be citizens and permanent residents of the Philippines.
- For single proprietorships: the owner/operator or a principal officer must have at least two (2) years experience in ship management, shipping operations, and/or chartering.
Minimum paid-up capital rules
- Capitalization requirements depend on the applicant’s type and the total GRT of its owned/operated vessels, with specified minimums by GRT brackets.
- For a corporation, minimum paid-up capital is based on total GRT as follows:
- Below 500: PHP 5M
- 501–1000: PHP 7.5M
- 1001–2000: PHP 1M
- 2001–3000: PHP 1.5M
- 3001–4000: PHP 2M
- 4001–5000: PHP 4.0M
- ABOVE 5000: PHP 6.0M
- If a corporation applying for accreditation has no vessel owned/operated at the time of filing, the minimum paid-up capital is PHP 500,000.00.
- Proof for corporations:
- For new companies: paid-up capital reflected in the Articles of Incorporation.
- For existing companies: paid-up capital reflected in the SEC Examiners and Appraisers Department Certification and the latest audited financial statement.
- For a partnership, minimum capitalization depends on total GRT as follows:
- 20 GRT Below: PHP 50,000
- 21–500: PHP 200,000
- ABOVE 500: PHP 500,000
- If a partnership applying has no vessel owned/operated at the time of filing, minimum capitalization is PHP 50,000.00.
- Proof for partnerships: either the amount reflected in the Articles of Partnership (for new companies) or a SEC Certification (for existing companies).
- For a single proprietorship, minimum capitalization depends on total GRT as follows:
- 20 GRT Below: PHP 15,000
- 21–500: PHP 50,000
- ABOVE 500: PHP 200,000
- If a single proprietorship applying has no vessel owned/operated at the time of filing, minimum capitalization is PHP 15,000.00.
- Proof for single proprietorships: the minimum capitalization must be reflected in the proprietor’s duly audited financial statement.
- The Circular imposes special capitalization requirements despite the general rules:
- Entities availing of incentives under the Investment Priorities Plan of E.O. No. 226 must have minimum paid-up capital not less than PHP 1.25 M for passenger-cargo and cargo services (including tankers and barges), and PHP 1.0 M for cargo services; proof must appear in a public instrument recorded in the Securities and Exchange Commission.
- Owners of tankers and barges hauling oil and petroleum products, whether corporations or partnerships, must have minimum paid-up capital of PHP 5.0 M.
Required documents for accreditation
- Every application must be supported by required documentary submissions, including a fee.
- The application must include a letter of intent addressed to MARINA.
- The application must include a list of vessels owned/chartered (if applicable), showing vessel specifications, supported by the corresponding certificate of ownership issued by the PCG, and including routing patterns and schedules.
- The application must include the latest audited financial statement if the company is already in existence/operation.
- The application must include a list of incorporators, directors, and principal officers with their bio-data, with particular emphasis on shipping or shipping-related experience or expertise, supported by documents acceptable to MARINA.
- For corporations and partnerships, the application must include:
- The latest Articles of Incorporation/Co-Partnership and By-Laws approved and registered with the SEC, reflecting the primary purpose of engaging exclusively in domestic shipping business/operation.
- A SEC Examiners and Appraisers Department Certification reflecting recent amendments on paid-up capitalization (if applicable).
- For single proprietorships, the application must include Registration of Business Name/Business License with the DTI.
- The application must include proof of payment of the prescribed fee attached to the application for accreditation.
Fee, certificate, and renewal
- After due satisfaction and compliance with qualification and documentary requirements, MARINA must issue a Certificate of Accreditation.
- The Certificate of Accreditation is valid for three (3) years, reckoned from the date of issuance.
- The Certificate may be renewed after compliance with/submission of all relevant MARINA requirements for renewal.
- The Circular sets the filing/processing fee as follows:
- Corporations: PHP 1,650.00
- Partnerships: PHP 1,000.00
- Single proprietorships: PHP 350.00
- Documentary requirements submitted in earlier transactions and verified to be on file need not be resubmitted if the applicant indicates in its letter of intent the previous submissions.
- Submitted documents also do not need to be submitted again in future applications/transactions when they are also required and already on file.
Reporting, changes, and annual deadlines
- Every MARINA-accredited enterprise must submit required reports and documents within the prescribed periods.
- The enterprise must submit amendments of Articles of Incorporation or By-Laws to MARINA within thirty (30) calendar days from the date of SEC approval of the amendment.
- The enterprise must submit the replacement of any director or any principal officer within thirty (30) calendar days, together with the bio-data of the new director or officer.
- The enterprise must submit audited financial statements (profit and loss statements and balance sheets) on or before 30 April from the close of each calendar year.
- Reports and documents must be either the original or true copies of the original, duly attested by a responsible officer of the accredited enterprise, an independent auditor, or a proper government agency.
Withdrawal, suspension, cancellation, notice, hearing
- When a MARINA-accredited enterprise decides to withdraw from business or suspend operations, it must submit prior written notice to MARINA.
- Unauthorized withdrawal from business operations or unauthorized suspension of operations for four (4) continuous months or more causes cancellation/revocation of the Certificate of Accreditation after due notice and hearing.
- The effect of withdrawal or suspension of operations is determined by MARINA in each instance, taking into account the reasons for withdrawal or suspension.
- MARINA, in consultation with concerned administering government offices, may recommend the refund of incentives availed—in whole or in part, with or without interest or penalties—depending on the case.
Grounds for suspension/cancellation and effects
- MARINA must suspend/cancel/revoke a Certificate of Accreditation after notice and hearing for qualifying grounds upon prima facie violation of specified conditions.
- The grounds include:
- Failure to maintain the qualification requirements for accreditation.
- Failure to submit the requirements under Section 4.
- Willful or gross violation of any law, rule, or regulation pertaining to domestic shipping.
- While liability is being determined, no application for license, permit, authority, financial assistance, or incentives shall be acted upon/granted by MARINA pending compliance with Section 4 and determination of liability under this sanctions provision.
Repeal and transitory effect
- Provisions of Memorandum Circular Nos. 9 and 51 pertaining to domestic shipping and provisions of M.C. No. 56/56-A inconsistent with this Circular are repealed.
- Domestic shipping entities already registered/accredited under Memorandum Circular Nos. 9 and 51 must be accredited under this Circular after one (1) year from its effectivity.