Penalties and Sanctions for Revocation of LIP Schemes
- If an LIP arrangement is revoked and reverts to a pure bareboat charter:
- The company must pay a 4.5% withholding tax on the bareboat charter hire from delivery date to re-delivery or deletion date to the Bureau of Internal Revenue.
- Proof of tax remittance must be submitted to MARINA within 60 days from revocation.
- A penalty of P 500,000.00 will be imposed.
- Charter party for bonus vessels under LIP will not be extended or replaceable.
Replacement of Deleted Vessels
- Bareboat chartering companies without owned tonnage may replace previously deleted bareboat chartered vessels if:
- The deleted vessel was removed after December 31, 1985.
- Incremental increase in paid-up capitalization as per MC No. 42 is complied with.
Pre-Approval Documentary Requirements
- Applicants must submit documents required under MC No. 85 and Rules Implementing PDs 760/866/1711.
- For LIP arrangements applying to bareboat charter additional vessels, a notarized certification from the seller or mortgagee bank demonstrating at least 50% payment of the purchase price is required.
- MARINA Administrator may request other relevant documents.
Saving Clause
- Provisions of Memorandum Circular Nos. 33-A, 38, and 42, and the Rules Implementing PDs 760/866/1711 remain valid if not inconsistent with this Circular.
Repealing Clause
- Memorandum Circular No. 42-A is repealed.
Effectivity Clause
- The Circular takes effect 15 days after publication in a newspaper of general circulation.