Accountancy Practice Regulation in PH

Domestic Shipping: Transport of passengers or cargo within Philippine ports and waters under Philippine law for compensation.
Domestic Trade: Sale, barter, or exchange of goods within the Philippines.
Domestic Ship Operator/Owner: Filipino citizens or corporations with at least 60% Filipino ownership, licensed by MARINA.
MARINA: Maritime Industry Authority.
Ship: Any craft capable of water transport within domestic trade, registered and licensed.
Importation: Purchase or lease of ships and spare parts from foreign or special economic zones.
Spare Parts: Components necessary for vessel navigation and operation.
Certificate of Public Convenience: License issued by MARINA for domestic shipping operation.
Cargo Handling Equipment: Machinery used for cargo handling aboard vessels or at ports.
Shipbuilding and Repair Definitions: Involve construction, overhaul, or maintenance of vessels and operations by authorized Filipino-majority entities.

VAT exemption on importation/local purchase of vessels (above specific tonnage) and spare parts, subject to vessel age limits.
VAT exemption on life-saving, safety, communication, and certain metal equipment imports if conditions are met.
Restrictions and penalties on unauthorized sale or transfer of exempted articles within 10 years.
Net operating loss can be carried over for three consecutive years.
Accelerated depreciation allowed up to twice the normal rate or over 5 to 10 years depending on asset lifespan.

Only authorized Filipino ship operators can obtain operating certificates.
Foreign vessels may only operate via special permits under strict conditions.
MARINA issues certificates of public convenience considering economic impact and operator’s financial capacity.
Operators may fix their own rates to foster competition, with MARINA monitoring to protect public interest.
MARINA prescribes safety standards, inspects vessels, and ensures licensure and crew competence.
MARINA can modify, suspend, revoke licenses, establish routes, and enforce compliance with safety and operational standards.
Powers include adjudication of complaints, imposition of penalties, and rulemaking consistent with the Act.

Operators have the right to set their own rates.
Obligation to carry government cargo under mutually agreed terms with preferential treatment.
MARINA regulates rates on monopolized routes to ensure fairness and service sustainability.

Operators must maintain adequate insurance for passengers and cargo annually.
Insurance amounts relate to passenger capacity and cargo limits.
Insurance coverage capped at vessel value.
Insurance must be from licensed companies or approved international associations.
MARINA can impose additional compulsory insurance requirements.

Operating without proper authority is forbidden.
Prohibition against refusal to carry passengers/cargo without cause.
Failure to maintain vessel safety or meet insurance and manning standards is sanctioned.
Other acts detrimental to shipping safety and integrity may be penalized by MARINA.

MARINA can fix and collect fees for licensing, regulation, inspection, and promotion of maritime industry.
Fees must be reasonable, non-duplicative, and cost-recovering.
MARINA may suspend or revoke licenses, and impose fines for various violations.
Penalties include suspension, revocation, and fines for non-compliance with safety, insurance, operation, and manning standards.

VAT exemptions on importation of equipment, spare parts, materials for shipbuilding and repair under conditions.
Restrictions exist for sale or transfer of exempted articles within ten years with penalties for breach.
Net operating loss carry-over and accelerated depreciation provided similar to shipping operators.

MARINA will annually evaluate local shipyards’ capacity.
Preference given to MARINA-registered shipyards for vessels below 500 GRT initially, expanding to larger classes over time.
Domestic operators discouraged from importing vessels that can be locally built.

Existing liner operators may continue route operations post-approval.
New vessels to be classed by government-recognized classification societies before operations.
Mandatory retirement program for unclassed and age-exceeded vessels, with delisting for non-compliance.

Invalid provisions do not affect the rest of the Act.
Inconsistent laws and regulations repealed or amended (e.g., Commonwealth Act No. 146).
The Act takes effect 15 days after publication in two newspapers of general circulation.