Rules on Foreign Ships' Special Permit in PH Waters

MIA MARINA Circular No. 2009-02 amends Section 1 of Rule V of the IRR of RA 9295 by substituting a revised Section 1 text on Special Permits for foreign ships.
The amended Special Permit framework applies to foreign ships engaged in the domestic trade in Philippine territorial waters under specified conditions.
The circular incorporates compliance requirements through cross-references to Memorandum Circular 2009-01 for insurance compliance.

The circular is issued in response to the prevailing global economic crisis.
The revised rule continues to restrict foreign ships from transporting passengers or cargo between Philippine ports or places, except under tightly controlled conditions tied to domestic shipping availability and public interest.

No foreign ship is allowed to transport passengers or cargo between ports or places within Philippine territorial waters except upon a Special Permit granted by MARINA.
Special Permits are granted only when no domestic ship is available or suitable to provide the needed shipping service and when the public interest warrants the same.

Cargo ships temporarily utilized in domestic trade under a Special Permit must qualify for a temporary replacement and meet all enumerated conditions.
The temporary replacement must be for an existing ship: once the replaced ship becomes operational, the Special Permit for the temporary replacement is terminated.
The ship age limit is enforced:
- Ships not more than fifteen (15) years old from date of launching may qualify without age-based additional fees stated under the later age tiers.
- Ships more than fifteen (15) years old but not more than twenty (20) years old qualify with time-limited permitting and additional fees.

For ships more than fifteen (15) years old but not more than twenty (20) years old, MARINA grants a Special Permit for a maximum period of six (6) months.
An additional fee applies for each month beyond the fifteen (15) year age requirement for such ships:
- PHP 20,000.00 for every month in excess of the fifteen (15) year age requirement.
For extensions beyond six (6) months but not to exceed a total of one (1) year, an additional fee applies:
- PHP 40,000.00 for every month in excess of the fifteen (15) year age requirement.
The additional fees are charged on top of the regular processing fees.

The cargo ship must be classed by International Association of Classification Societies (IACS).
The cargo ship must have P&I cover compliant with Memorandum Circular 2009-01.
Crew composition requirements apply to vessels holding Special Permits:
- Vessels with Special Permits for more than three (3) months must have fifty percent (50%) Filipino crew.
- Vessels must have one hundred percent (100%) Filipino crew (as stated in the rule governing the Special Permit requirement set for these vessels).
The cargo ship must comply with Philippine fiscal and labor laws.

The rule requires that temporary Special Permits end once the replaced ship becomes operational.
The circular’s validity runs for one (1) year from the date of issue (February 04, 2009).
The circular’s effectivity is immediate upon publication once in a newspaper of general circulation.