Law Summary
Scope and Coverage
- Applies to steel/wooden hulled ships operating in Philippine waters including:
- Passenger-carrying ships not required to be classed.
- Tankers not required to be classed.
- Bulk carriers not required to be classed.
- Other cargo ships not required to be classed.
- Tugboats pulling/pushing non-propelled tanker barges carrying oil products.
- Exemptions include:
- Passenger High-Speed Crafts.
- Passenger-carrying ships required or currently classed.
- Oil, chemical tankers, gas carriers 500 gross tonnage (gt) and above.
- Bulk carriers 500 gt and above required to be classed.
- Fishing boats, non-propelled barges, sailing ships, pleasure crafts not engaged in commercial trade.
- Government-owned ships not engaged in commercial trade and naval warships.
Key Definitions
- Administration: Refers to the Maritime Industry Authority (MARINA).
- Code: National Safety Management (NSM) Code for Safe Ship Operation and Pollution Prevention.
- Company: The shipowner or organization/person assuming responsibility for ship operation including managers or bareboat charterers with full duties as per the Code.
- Safety Management System (SMS): Documented system enabling company personnel to implement safety and environmental protection policies effectively.
- NSM Manual: Three-part manual developed by MARINA.
- Document of Compliance (DOC): Certificate issued to companies complying with Code requirements.
- Safety Management Certificate (SMC): Certificate issued to ships operating under an approved SMS.
Specific Requirements on Implementation
- All covered companies and Philippine-registered ships must develop and implement SMS consistent with the Code and Guidelines.
- Submission of SMS manual and securing of DOC/SMC are required by specified dates depending on ship type and tonnage.
- Detailed schedule defining compliance deadlines for different categories:
- Passenger ships: staggered compliance deadlines by gross tonnage.
- Tankers, bulk carriers, tugboats: similar tiered timelines.
- Other ships: compliance deadlines later based on tonnage size.
- Option to obtain ISM Certification per Memorandum Circular No. 143.
- Use of NSM Manual by the Administration is allowed for compliance.
- Ships detained for non-compliance can resume operations only after certification requirements are met.
Fees and Charges
- Specific fees imposed for NSM Manual acquisition.
- Separate fees for issuance of DOC and SMC certificates.
- Certification process fees vary depending on ship size category and whether certification activities occur within or outside the working station or maritime office.
- Fees differentiated for document review, initial visits, company audits, and ship audits across five tiers of ship size (from 250 gt and above to less than 15 gt).
Sanctions and Penalties
- Detention of ships at port for failure to possess required DOC or SMC after compliance deadlines.
- Monetary fines imposed according to severity and ship size:
- Non-possession of DOC: fines ranging from PHP 5,000 to PHP 50,000.
- Non-possession of SMC: fines ranging from PHP 4,500 to PHP 45,000.
- Failure to notify Administration of responsible entity: fines PHP 1,000 to PHP 10,000.
- Failure to submit SMS Manuals: fines PHP 1,000 to PHP 10,000.
- Fines applied only after due notice and hearing.
Repealing Clause
- All conflicting Memorandum Circulars, rules, regulations, and issuances are amended or repealed accordingly.
Effectivity Clause
- The Circular takes effect fifteen (15) days after publication in a newspaper of general circulation.