National Safety Management Code for Domestic Shipping

Legal basis and regulatory integration

The Circular was adopted pursuant to Presidential Decree No. 474 and Executive Order Nos. 125/125-A.
The Circular’s implemented rules become part of the Philippine Merchant Marine Rules and Regulations 1997 and specifically form Chapter XX.
The Circular’s administration and certification framework is implemented by the Maritime Industry Authority (MARINA).

Purpose and safety policy

The Circular institutionalizes adoption, implementation, and maintenance of a Safety Management System (SMS) in domestic shipping operations to foster a safety culture.
The SMS is designed to ensure personnel competence in every aspect of ship operations.
The SMS framework enables companies to achieve and maintain high standards of safety and marine environment protection through safe practices, safeguards against identified risks, and continuous improvement of personnel skills.
The Circular requires preparation for emergencies related to safety and marine environment protection.
The Circular aims to ensure compliance with mandatory rules and regulations, codes and standards governing safety and environmental protection.

Scope, coverage, and exemptions

The Circular applies to steel/wooden hulled ships when operating in Philippine waters.
Covered ships include:
- All 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 when pulling/pushing non-propelled tanker barges carrying oil products.
Exemptions apply to ships covered by Memorandum Circular No. 143, specifically:
- Passenger High Speed Crafts.
- Passenger-carrying ships required to be classed and those currently classed.
- Oil tankers, chemical tankers and gas carriers 500 gt and above.
- Bulk carriers 500 gt and above and required to be classed.
Additional exemptions apply to:
- fishing boats
- non-propelled barges
- sailing ships
- pleasure crafts not engaged in commercial trading
- government owned ships not engaged in commercial trade
- naval warships

Core definitions and key documents

The Administration refers to Maritime Industry Authority (MARINA).
The Code refers to the National Safety Management (NSM) Code for the Safe Operation of Ships and for Pollution Prevention.
The Company refers to the owner of the ship or any other organization or person such as the manager or the bareboat charterer who has assumed responsibility for operation of the ship from the shipowner and has agreed to take over all duties and responsibilities imposed by the Code.
The Safety Management System (SMS) refers to a structured and documented system enabling company personnel to implement the company’s safety and environmental protection policy effectively.
The NSM Manual refers to the three-part manual developed by the Administration.
The Document of Compliance (DOC) refers to the document issued to a Company that complies with the Code requirements.
The Safety Management Certificates (SMC) refers to the document issued to a ship signifying that the Company and its shipboard management operate in accordance with the approved SMS.
Guidance, elaborations, and interpretations for implementing the Circular are referenced to the Code, its Guidelines, and other related documents where applicable and warranted.

Mandatory SMS development, DOC/SMC, and timing

Companies and Philippine registered ships covered under II.1 must develop and implement an SMS consistent with the Code and the Guidelines for its Implementation.
Companies/ships must submit SMS manuals and secure DOC/SMC based on the applicable ship category schedule.
For passenger-carrying ships:
- For DOC/SMC (250 gt and above but not required to be classed), companies must submit the SMS manual by July 01, 2001 and secure DOC/SMC by December 31, 2001.
- For DOC/SMC (150 gt to 249.99 gt but not required to be classed), companies must submit by January 01, 2002 and secure DOC/SMC by July 01, 2002.
- For DOC/SMC (less than 150 gt but not required to be classed), companies must submit by July 01, 2002 and secure DOC/SMC by July 01, 2003.
For tankers, bulk carriers, tug-boats pulling/pushing non-propelled barges carrying oil products:
- For DOC/SMC (150 gt and above but not required to be classed), submission is July 01, 2001 and compliance is July 01, 2002.
- For DOC/SMC (less than 150 gt but not required to be classed), submission is July 01, 2002 and compliance is July 01, 2003.
For all other ships not classified under IV.1(a) and (b):
- For DOC/SMC (150 gt and above but not required to be classed), submission is July 01, 2003 and compliance is July 01, 2004.
- For DOC/SMC (less than 150 gt but not required to be classed), submission is July 01, 2004 and compliance is July 01, 2005.
Shipowners/ship managers/bareboat charterers whose company or ship may qualify may opt to secure ISM Certification in accordance with Memorandum Circular No. 143.
For purposes of complying with the Circular, companies may adopt the NSM Manual developed by the Administration.
A ship detained at port for non-compliance with the Circular may resume operations only after taking the necessary steps to comply with the certification requirements provided in the Guidelines to the Code.

Fees and charges for NSM implementation

The Circular imposes the following NSM-related fees and charges for implementation:
For the NSM Manual:
- PHP 1,000.00.
For certificates:
- DOC:
  - Short Term: PHP 1,000.00
  - Interim: PHP 3,000.00
  - (Full term DOC is not separately stated in the Circular’s fee table.)
- SMC:
  - Short Term: PHP 1,000.00
  - Interim: PHP 1,000.00
  - (Full term SMC is not separately stated in the Circular’s fee table.)
For the certification process, fees depend on ship size and whether activities occur within a working station, outside a working station, or at the Central Office/Maritime Regional Office:
- For ships operating at 250 gt and above:
  - Document Review:
    - Within working station: PHP 3,000.00
    - Outside working station: PHP 35,000.00
    - Central Office/Maritime Regional Office: PHP 30,000.00
  - Initial Visit (for new) company:
    - Within working station: PHP 1,000.00
    - Outside working station: PHP 35,000.00
    - Central Office/Maritime Regional Office: PHP 30,000.00
  - Company Audit:
    - Within working station: PHP 10,000.00
    - Outside working station: PHP 50,000.00
    - Central Office/Maritime Regional Office: PHP 45,000.00
  - Ship Audit:
    - Within working station: PHP 8,000.00
    - Outside working station: PHP 45,000.00
    - Central Office/Maritime Regional Office: PHP 40,000.00
- For ships operating at 150–249.99 gt:
  - Document Review: PHP 2,250.00 (within working station); PHP 26,250.00 (Central Office/Maritime Regional Office); outside working station fee is not separately stated in the table.
  - Initial Visit (for new) company: PHP 750.00 (within working station); PHP 22,500.00 (Central Office/Maritime Regional Office); outside working station fee is not separately stated in the table.
  - Company Audit: PHP 7,500.00 (within working station); PHP 37,500.00 (outside working station); PHP 33,750.00 (Central Office/Maritime Regional Office).
  - Ship Audit: PHP 6,000.00 (within working station); PHP 33,750.00 (outside working station); PHP 30,000.00 (Central Office/Maritime Regional Office).
- For ships operating at 50–149.99 gt:
  - Document Review: PHP 1,500.00 (within working station); PHP 17,500.00 (Central Office/Maritime Regional Office); outside working station fee is not separately stated in the table.
  - Initial Visit (for new) company: PHP 500.00 (within working station); PHP 15,000.00 (Central Office/Maritime Regional Office); outside working station fee is not separately stated in the table.
  - Company Audit: PHP 5,000.00 (within working station); PHP 25,000.00 (outside working station); PHP 22,000.00 (Central Office/Maritime Regional Office).
  - Ship Audit: PHP 4,000.00 (within working station); PHP 22,500.00 (outside working station); PHP 20,000.00 (Central Office/Maritime Regional Office).
- For ships operating at 15–49.99 gt:
  - Document Review: PHP 900.00 (within working station); PHP 10,500.00 (Central Office/Maritime Regional Office); outside working station fee is not separately stated in the table.
  - Initial Visit (for new) company: PHP 300.00 (within working station); PHP 9,000.00 (Central Office/Maritime Regional Office); outside working station fee is not separately stated in the table.
  - Company Audit: PHP 3,000.00 (within working station); PHP 15,500.00 (outside working station); PHP 13,500.00 (Central Office/Maritime Regional Office).
  - Ship Audit: PHP 2,400.00 (within working station); PHP 13,500.00 (outside working station); PHP 12,000.00 (Central Office/Maritime Regional Office).
- For ships operating at less than 15 gt:
  - Document Review: PHP 300.00 (within working station); PHP 3,500.00 (Central Office/Maritime Regional Office); outside working station fee is not separately stated in the table.
  - Initial Visit (for new) company: PHP 100.00 (within working station); PHP 3,000.00 (Central Office/Maritime Regional Office); outside working station fee is not separately stated in the table.
  - Company Audit: PHP 1,000.00 (within working station); PHP 5,000.00 (outside working station); PHP 4,500.00 (Central Office/Maritime Regional Office).
  - Ship Audit: PHP 800.00 (within working station); PHP 4,500.00 (outside working station); PHP 4,000.00 (Central Office/Maritime Regional Office).

Detention and fines for non-compliance

Non-possession of the required DOC/SMC after the applicable date of compliance under the Circular provides the basis for detaining the ship at port by way of denial of clearance to sale.
Additional penalties require due notice and hearing and impose fines based on the specific violation/offense:
- Non-possession of DOC:
  - Companies operating ships 250 gt and above: PHP 50,000.00
  - Companies operating ships 150 gt to 249.99 gt: PHP 37,500.00
  - Companies operating ships 50 gt to 149.99 gt: PHP 25,000.00
  - Companies operating ships 15 gt to 49.99 gt: PHP 15,000.00
  - Companies operating ships less than 15 gt: PHP 5,000.00
- Non-possession of SMC:
  - Operating ships 250 gt and above: PHP 45,000.00
  - Operating ships 150 gt to 249.99 gt: PHP 33,750.00
  - Operating ships 50 gt to 149.99 gt: PHP 22,500.00
  - Operating ships 15 to 49.99 gt: PHP 13,500.00
  - Operating ships less than 15 gt: PHP 4,500.00
- Failure to communicate to the Administration the name and details of the entity that assumed responsibility for complying with the Code:
  - Companies operating ships 250 gt and above: PHP 10,000.00
  - Companies operating ships 150 gt to 249.99 gt: PHP 7,500.00
  - Companies operating ships 50 gt to 149.99 gt: PHP 5,000.00
  - Companies operating ships 15 gt to 49.99 gt: PHP 3,000.00
  - Companies operating ships less than 15 gt: PHP 1,000.00
- Failure to submit SMS Manuals:
  - Companies operating ships 250 gt and above: PHP 10,000.00
  - Companies operating ships 150 gt to 249.99 gt: PHP 7,500.00
  - Companies operating ships 50 gt to 149.99 gt: PHP 5,000.00
  - Companies operating ships 15 gt to 49.99 gt: PHP 3,000.00
  - Companies operating ships less than 15 gt: PHP 1,000.00

Repeals and precedence

All memorandum circulars, rules and regulations, and issuances inconsistent with MIA Memorandum Circular No. 159, s. 2000 are amended or repealed accordingly.