Powers and Responsibilities Regarding Vessels
- Authorized to accept, administer, and operate all ships sold and delivered to the Philippine Government under the 1946 Agreement with the United States.
- Also responsible for any future ships or floating equipment acquired by the government.
- May operate ships directly or contract with private parties for operation, sale, lease, or charter, subject to Presidential approval.
Preference and Restriction in Disposition of Ships
- Pre-war ship operators are given preference in contracts based on the total tonnage of their coastwise service vessels.
- Prohibition against sale, lease, or charter to entities not qualified under Philippine law to operate the ships, respecting constitutional acquired rights.
- The Commission may impose conditions such as the continuation of certain shipping lines to serve public interest.
- No ship may be transferred to foreign registry or flag without the President's consent.
Specific Powers, Functions, and Duties of the Shipping Commission
(a) To adopt rules and regulations for its operations with Presidential approval.
(b) To appropriate funds via special budget for administration and operation, using proceeds from ship sales.
(c) To appoint officers and employees and fix their salaries with Presidential approval.
(d) To submit weekly reports of sales and transactions to the President.
Support and Cooperation from Government Entities
- All government departments, bureaus, offices, agencies, government-owned or controlled corporations, and local governments must provide assistance and facilities upon request to the Commission.
Financial Handling of Proceeds
- Sales proceeds are deposited in the Philippine National Bank to a special fund.
- The fund is to be used exclusively for purposes as legally directed.
Executive Authority
- The law was promulgated through an executive order signed by the President and the Chief of the Executive Office.
- Reflects the government’s intent to organize and regulate the operation and disposition of shipping assets crucial to national interest and public service.