Philippine Fisheries Code of 1998

Policy and objectives; State intent

Section 2 declares State policy to prioritize food security as the overriding consideration in the utilization, management, development, conservation, and protection of fishery resources.
Section 2 requires the State to adopt a flexible approach to achieve food security in response to demographic trends of fish, trends in domestic and international trade of fish and other aquatic products, and the law of supply and demand.
Section 2 limits access to Philippine fishery and aquatic resources to the exclusive use and enjoyment of Filipino citizens.
Section 2 mandates rational and sustainable development, management, and conservation of fishery and aquatic resources in Philippine waters including the EEZ and adjacent high seas, consistent with maintaining sound ecological balance and protecting and enhancing environmental quality.
Section 2 directs preferential protection of fisherfolk rights, especially local communities and municipal fisherfolk, through preferential use of municipal waters based on MSY or TAC, consistent with international treaty commitments.
Section 2 provides support to the fishery sector—primarily municipal fisherfolk, including women and youth sectors—through technology and research, financial support, post-harvest facility construction, marketing assistance, and other services, including protection of municipal fisherfolk against foreign intrusion extending to offshore fishing grounds.
Section 2 requires that fish workers receive a just share for their labor in the utilization of marine and fishery resources.
Section 2 requires integrated coastal area management in specific natural fishery management areas, supported by research, technical services, and guidance provided by the State.
Section 2 grants the private sector the privilege to utilize fishery resources on the premise that the grantee/licensee/permittee is an active participant and partner of the Government in sustainable development and conservation.
Section 2 sets fishery-sector objectives including conservation, protection, sustained management, poverty alleviation and supplementary livelihood among municipal fisherfolk, improved aquaculture productivity within ecological limits, optimal utilization of offshore and deep-sea resources, and upgrading post-harvest technology.

Coverage and key defined terms

The Code applies to all Philippine waters, including waters over which the Philippines has sovereignty and jurisdiction, the country’s 200-nautical mile EEZ, and continental shelf. (Section 3)
The Code applies to all aquatic and fishery resources whether inland, coastal, or offshore, including fishponds, fish pens/cages. (Section 3)
The Code applies to all lands devoted to aquaculture, and businesses and activities relating to fishery, whether private or public. (Section 3)
The State reserves use and exploitation of fishery and aquatic resources in Philippine waters exclusively to Filipinos, subject to strictly regulated research and survey activities. (Section 5)

Core definitions established under Section 4 include:

Department means the Department of Agriculture.
Secretary means the Secretary of the Department of Agriculture.
Exclusive Economic Zone (EEZ) is an area beyond and adjacent to the territorial sea not extending beyond 200 nautical miles from baselines as defined under existing laws. (Section 4)
Philippine waters include waters within Philippine territory and the territorial sea, seabeds, insular shelves, and all other waters over which the Philippines has sovereignty and jurisdiction, including the 200-nautical miles EEZ and continental shelf. (Section 4)
Municipal waters include the municipal marine waters defined by lines from the coastline at low tide, plus an offshore limit of 15 kilometers, and special rules where two municipalities are on opposite shores with less than 30 kilometers of marine waters between them. (Section 4)
Municipal fishing is fishing within municipal waters using vessels of three (3) gross tons or less, or fishing not requiring the use of fishing vessels. (Section 4)
Municipal fisherfolk are persons directly or indirectly engaged in municipal fishing and other related fishing activities. (Section 4)
FARMCs are the Fisheries and Aquatic Resources Management Councils. (Section 4)
Fisherfolk are people directly and personally and physically engaged in taking and/or culturing and processing fishery and/or aquatic resources. (Section 4)
Aquaculture is fishery operations involving raising and culturing fish and other species in fresh, brackish, and marine waters. (Section 4)
Aquatic pollution covers introduction by human or machine, directly or indirectly, of substances or energy to the aquatic environment resulting or likely to result in deleterious effects, including dumping/disposal of waste, discharges of petroleum/residual products and other harmful substances, and includes deforestation and unsound agricultural practices that cause similar hazards. (Section 4)
Fishing means taking fishery species from their wild state or habitat, with or without vessels. (Section 4)
Fishing gear includes any instrument or device and accessories utilized in taking fish and other fishery species; active fishing gear includes gear movement/pursuit techniques such as trawl and purse seines; passive fishing gear includes hook and line, fish pots, traps, and gill nets across the path of fish. (Section 4)
Fishing with Explosives and Fishing with Noxious or Poisonous Substances are defined as prohibited methods to kill/stun/disable/render unconscious fishery species and alter/damage habitat. (Section 4)
Closed Season is the period when taking specified fishery species with specified gear is prohibited in specified areas. (Section 4)
Catch Ceilings are annual catch limits allowed from fishing areas to prevent overfishing and depletion of breeding stocks. (Section 4)
Maximum Sustainable Yield (MSY) is the largest average quantity of fish that can be harvested on a sustainable basis under existing environmental conditions. (Section 4)
Total Allowable Catch (TAC) is the maximum harvest allowed during a given period from a fishery area/species/group/combination, normally not exceeding MSY. (Section 4)
Monitoring, Control and Surveillance includes monitoring (continuous observing of effort, resources, and yields), control (regulatory conditions governing exploitation and disposition), and surveillance (observations required to maintain compliance). (Section 4)
Fishing vessel is any boat/ship/watercraft equipped for taking fishery species or aiding one or more vessels in fishing-related activities. (Section 4)
Fish cage, fish pen, fish corral of “baklad”, fish pond, fish hatcheries, and related aquaculture structures are defined for regulatory use. (Section 4)
Commercial fishing is defined by use of gear for trade/business/profit beyond subsistence or sports fishing, classified by vessel gross tonnage into small scale (3.1 GT to 20 GT), medium scale (20.1 GT to 150 GT), and large scale (more than 150 GT). (Section 4)
Coastal Area/Zone is a defined band of land and adjacent ocean space with specified landmark-based distance limits. (Section 4)

Utilization rules and resource access system

The use and exploitation of fishery and aquatic resources in Philippine waters is reserved exclusively to Filipinos, subject to strictly regulated research and survey activities for purely research, scientific, technological, and educational purposes that benefit Filipino citizens. (Section 5)
The Department sets levels of rentals for fishpond areas covered by Fishpond Lease Agreement (FLA) and license fees for Commercial Fishing Boat Licenses (CFBL) reflecting resource rent, and determines corresponding fees and charges for licenses/permits for fishing gear and other fishery activities beyond municipal waters. (Section 6)
License fees for fishing activity in municipal waters are determined by LGUs in consultation with FARMCs, and FARMCs may recommend appropriate license fees. (Section 6)
The Department issues the number of licenses and permits for fishery activities subject to MSY limits as determined by scientific studies or best available evidence, with preference to resource users in local communities adjacent or nearest to municipal waters. (Section 7)
The Secretary may prescribe catch ceiling limitations (quota) by specified period and area based on best available evidence, and may impose ceilings per species whenever necessary and practicable. (Section 8)
In municipal waters, fishery management areas, and waters under special agencies’ jurisdiction, catch ceilings require concurrence and approval or recommendation of the special agency and concerned LGU in consultation with the FARMC for conservation or ecological purposes. (Section 8)
The Secretary may establish closed seasons in Philippine waters outside municipal waters and in bays through public notice in at least two (2) newspapers of general circulation or public service announcements, at least five (5) days before declaration. (Section 9)
The Secretary may include waters under special agencies’ jurisdiction, municipal waters, bays, and other areas reserved for municipal fisherfolk use within the closed season, but only with concurrence and approval or recommendation of the special agency and the concerned LGU and FARMC. (Section 9)
In municipal waters, fishery management areas, and areas reserved for municipal fisherfolk use, closed seasons may be established by the concerned LGU in consultation with the FARMC for conservation or ecological purposes. (Section 9)
The Secretary may include fishery management constraints recommended by FARMCs for municipal waters and other areas reserved for municipal fisherfolk. (Section 9)
No foreign finfish, mollusks, crustacean, or aquatic plant may be introduced into Philippine waters without sound ecological/biological/environmental justification based on scientific studies subject to the biosafety standard under existing laws; the Department may approve introduction for scientific/research purposes. (Section 10)
The Department must declare closed seasons and take conservation and rehabilitation measures for rare, threatened and endangered species and bans fishing and/or taking of such species, including eggs/offspring as identified by existing laws, in concurrence with concerned government agencies. (Section 11)

Environmental requirements and enforcement framework

All government agencies and private corporations/firms/entities intending to undertake activities or projects affecting environmental quality must prepare a detailed Environmental Impact Statement (EIS) prior to undertaking development, as an integral part of planning under Presidential Decree No. 1586 and its implementing rules. (Section 12)
All EIS must be submitted to the DENR for review and evaluation, and no person (natural or juridical) may undertake any development project without first securing an Environmental Compliance Certificate (ECC) from the DENR Secretary. (Section 13)
The Department must establish a monitoring, control and surveillance system in coordination with LGUs, FARMCs, the private sector, and other agencies to ensure judicious and wise utilization, sustainable management, and conservation for exclusive Filipino benefit and enjoyment. (Section 14)
All fish and fishery products must have an auxiliary invoice issued by LGUs or their duly authorized representatives prior to transport from their point of origin to destination in the Philippines and/or for export purposes, upon payment of a fee determined by LGUs to defray administrative costs. (Section 15)

Municipal fisheries governance and rights

Municipal/city governments have jurisdiction over municipal waters and are responsible for management, conservation, development, protection, utilization, and disposition of fish and aquatic resources in their municipal waters in consultation with the FARMC. (Section 16)
Municipal and component city governments may enact appropriate ordinances in consultation with FARMCs and in accordance with the National Fisheries Policy; provincial sanggunians review such ordinances pursuant to Republic Act No. 7160. (Section 16)
LGUs enforce fishery laws, rules and regulations, and valid fishery ordinances enacted by municipal/city councils. (Section 16)
Management of contiguous fishery resources (e.g., bays straddling multiple LGUs) must be integrated and not based on political subdivisions; LGUs that share/border contiguous resources must coordinate, and IFARMCs serve as venues for close collaboration among LGUs. (Section 16)
Preference in grant of fishery rights in municipal waters is given to duly registered fisherfolk organizations/cooperatives by the Municipal/City Council under Section 149 of the Local Government Code; special agencies vested by special laws continue to grant permits for proper management and implementation. (Section 17)
All fishery-related activities in municipal waters must be utilized by municipal fisherfolk and their cooperatives/organizations listed in the LGU registry of municipal fisherfolk. (Section 18)
A municipal/city government may, through local chief executive and pursuant to an ordinance, authorize small and medium commercial fishing vessels to operate within 10.1 to 15 kilometers from shore in municipal waters only if: depth is not less than seven (7) fathoms certified by the appropriate agency; methods and gears are consistent with Department national policies; prior consultation through public hearing with the M/CFARMC is conducted; and the applicant vessel and ship-owner, employer, captain, and crew are certified by the appropriate agency as having not violated the Code and related environmental laws. (Section 18)
No authorization/permit for the 10.1 to 15 kilometers municipal waters zone may be granted for fishing in bays determined by the Department to be environmentally critical and during closed season under Section 9. (Section 18)
LGUs must maintain a registry of municipal fisherfolk to determine priorities, limit entry, and monitor fishing activities and related purposes; FARMC submits list of priorities for LGU consideration. (Section 19)
The registry must be updated annually or as necessary, and posted in barangay halls or strategic locations for public inspection to validate correctness and completeness. (Section 19)
LGUs, in consultation with FARMCs, must formulate mechanisms for inclusion/exclusion procedures beneficial to resident municipal fisherfolk, and FARMCs may recommend such mechanisms. (Section 19)
LGUs must maintain a registry of municipal fishing vessels by type of gear and other particulars with FARMC assistance. (Section 19)
Fisherfolk organizations/cooperatives with members in the municipal fisherfolk registry may be granted use of demarcated fishery areas to engage in fish capture, mariculture, and/or fish farming, except when a organization/cooperative member household already possesses another fishery right other than fish capture. (Section 20)
Resident municipal fisherfolk of the municipality concerned and their organizations/cooperatives have priority to exploit municipal and demarcated fishery areas of that municipality. (Section 21)
The LGU concerned grants demarcated fishery rights for mariculture operations in specific areas identified by the Department. (Section 22)
When LGUs and the Department determine a municipal water is overfished or in danger of being overfished and regeneration is needed, LGUs must prohibit or limit fishery activities in the affected waters. (Section 23)
The Department and LGUs must provide support to municipal fisherfolk through appropriate technology and research, credit, production and marketing assistance, and other services including training for supplementary livelihood. (Section 24)
Fishworkers are entitled to privileges under the Labor Code, SSS, and other worker benefits under other laws; fishworkers on board fishing vessels engaged in fishing operations are covered by the Philippine Labor Code, as amended. (Section 25)

Commercial fisheries licensing, eligibility, and controls

Operating a commercial fishing vessel, pearl fishing vessel, or a fishing vessel for scientific/research/educational purposes, engaging in any fishery activity, or seeking employment as a fishworker or pearl diver requires first securing a license from the Department, with the license period to be prescribed by the Department. (Section 26)
A license is not required for fishing vessels engaged in scientific/research/educational purposes within Philippine waters under an international agreement to which the Philippines is a signatory, provided the agreement defines status, privileges, obligations of the vessel and crew, and non-Filipino officials of the international agency operating the vessel. (Section 26)
Crew members of a commercial fishing vessel—except duly licensed/authorized patrons, marine engineers, radio operators, and cooks—are considered as fisherfolk for purposes of the Code. (Section 26)
All skippers/master fishers must undertake an orientation training on detection of fish caught by illegal means before they can be issued fishworker licenses. (Section 26)
Large commercial fishing vessel licenses authorize operation only in Philippine waters seven (7) or more fathoms deep, depth to be certified by NAMRIA, subject to conditions and Department rules and regulations. (Section 26)
Commercial fishing vessel licenses are issued only to Philippine citizens, partnerships, or associations/cooperatives/corporations duly registered in the Philippines with at least 60% of the capital stock owned by Filipino citizens. (Section 27)
A person issued a license must not sell, transfer, or assign stock or interest in the license-holder entity to any person not qualified to hold a license; any such transfer/sale/assignment is null and void and will not be registered in the association/cooperative/corporation books. (Section 27)
Qualified vessel owners must secure Certificates of Philippine Registry and other necessary documents for fishing operations from concerned agencies, while the commercial fishing vessel license validity is to be determined by the Department. (Section 27)
Registration/documentation/inspection/manning of all types of fishing vessels plying Philippine waters must comply with existing laws, rules, and regulations. (Section 28)
Before a licensed commercial fishing vessel begins fishing operations, the fishing gear to be used must be registered and licensed; the Department must issue guidelines to implement this within 60 days from approval of the Code. (Section 29)
Commercial fishing boat licenses must be renewed every three (3) years, and owners/operators must renew within 60 days before expiration. (Section 30)
Owners/operators must notify the Department in writing of any transfer of ownership of a registered fishing vessel, with a copy of the relevant document, within 10 days after transfer. (Section 31)
Philippine commercial fishing fleet operations in international waters or other countries allowing such operations require compliance with safety and manning requirements of the Philippine Coast Guard, Maritime Industry Authority, and other agencies, and require an international fishing permit and certificate of clearance from the Department. (Section 32)
Fish caught in such operations are treated as caught in Philippine waters—and not subject to all import duties and taxes—only when landed in duly designated fish landings and fish ports in the Philippines; landing ports established by canneries/seafood processors/fish landing sites established prior to Code effectivity are deemed authorized landing sites. (Section 32)
Fishworkers aboard Philippine registered fishing vessels conducting fishing activities beyond the Philippine EEZ are not considered overseas Filipino workers. (Section 32)
Prior to importation of fishing vessels and construction of new fishing vessels, the Department’s approval/clearance is required. (Section 33)
Incentives for municipal and small-scale commercial fisherfolk include: at least 10% of credit and guarantee funds of government financing institutions for post-harvest and marketing projects (e.g., ice plants, cold storage, canning, warehouses, transport and related infrastructure), and Department capability-building and information campaigns promoting bankability/creditworthiness with priority access to credit guarantee funds for groups and cooperatives organized under the program. (Section 34)
Incentives for commercial fishing operators to fish farther in the EEZ include long-term loans with guarantee facilities for building/acquiring/improving vessels and equipment; limited period of tax and duty exemptions on importation of fishing vessels not more than five (5) years old plus equipment/paraphernalia (with the period and guidelines fixed by the Department within 90 days); and fuel duty and tax rebates for commercial operations in the high seas (with guidelines promulgated within 90 days), plus applicable incentives under the Omnibus Investment Code of 1987 if registered with BOI. (Section 35)
Every commercial fishing vessel of Philippine registry must be manned in accordance with Philippine Merchant Marine rules and regulations when actually operated. (Section 36)
All fishing vessels must be provided with adequate medical supplies and life-saving devices determined by the Occupational Safety and Health Center; vessels of 20 GT or more must have a first-aider certified by the Philippine National Red Cross on the crew. (Section 37)
Each commercial fishing vessel must keep a daily record of fish catch and spoilage, landing points, and quantity and value of fish caught and offloaded for transshipment/sale/other disposal, certified by the captain and transmitted monthly to the Department officer/representative at the nearest designated landing point. (Section 38)
Vessels and crafts passing navigational lanes or engaged in fisheries must contribute meteorological and other data and assist the Department in documentation/reporting vital to navigation and fishing industry. (Section 39)
Registered fishing vessels must bear a color code determined by the Department and may be assigned a radio frequency specific and distinct to its area of operation for enforcement. (Section 40)
Commercial and other passage not in the regular conduct of fisheries activity must use designated navigational lanes. (Section 41)
Foreign fishing vessels wanting to use Philippine land/air/sea facilities to transport fish products caught outside Philippine territorial waters must call only at duly designated government-owned or controlled regional fishport complexes after securing clearance from the Department. (Section 42)
The Department must promulgate guidelines on use of radio communication facilities on board fishing vessels and assignment of radio frequencies in coordination with the National Telecommunications Commission. (Section 43)
The number and wattage of superlights used in commercial fishing vessels are regulated by the Department, and use of superlights is banned within municipal waters and bays. (Section 44)

Aquaculture land use, leases, zoning, and protections

Public lands such as tidal swamps, mangroves, marshes, foreshore lands, and ponds suitable for fishery operations may not be disposed or alienated; FLA may be issued for public lands declared available for fishpond development primarily to qualified fisherfolk cooperatives/associations. (Section 45)
Upon expiration of existing FLAs, current lessees are entitled to priority and an extension of 25 years in utilizing leased areas; thereafter, FLAs may be granted to Filipino citizens with preference primarily to qualified fisherfolk cooperatives/associations and small and medium enterprises under Republic Act No. 8289. (Section 45)
The Department must declare reservation portions of available public lands certified suitable for fishpond purposes for fish sanctuary, conservation, and ecological purposes. (Section 45)
Two (2) years after approval of the Act, no fish pens, fish cages, or fish traps are allowed in lakes. (Section 45)
Fishpond leases are limited in area to 50 hectares for individuals and 250 hectares for corporations or fisherfolk organizations. (Section 46)
Fishpond leases last 25 years and are renewable for another 25 years; in case of death of the lessee, spouse and/or children as heirs have preemptive rights to the unexpired term subject to the same terms and conditions, if qualified. (Section 46)
Lease rates are determined by the Department, and all fees collected must be remitted to National Fisheries Research and Development Institute and other qualified research institutions for aquaculture research development. (Section 46)
Leased areas must be developed and producing on a commercial scale within 3 years from lease approval; areas not fully producing within 5 years from approval revert automatically to public domain for reforestation. (Section 46)
Fishponds may not be subleased, in whole or in part; violation cancels the FLA. (Section 46)
Transfer or assignment of rights to FLA requires prior written approval of the Department. (Section 46)
Lessees must reforest river banks, bays, streams, and seashore fronting the dike of the fishpond under rules and regulations; failure to comply cancels the FLA. (Section 46)
Lessees must provide facilities minimizing environmental pollution (e.g., settling ponds, reservoirs); failure cancels the FLA. (Section 46)
The Department must establish a code of practice for aquaculture for environmentally-sound design and operation, developed through consultative process with DENR, fishworkers, FLA holders, fishpond owners, fisherfolk cooperatives, small-scale operators, research institutions, academe, and other stakeholders, and may consult specialized international organizations. (Section 47)
The Department must formulate incentives and disincentives (including effluent charges, user fees, and negotiable permits) to encourage compliance with environmental standards and promote sustainable management. (Section 48)
The DENR, in coordination with the Department, LGUs, other concerned agencies, and FARMCs, determines which abandoned/undeveloped/underutilized fishponds under FLAs can be reverted to original mangrove state and then restores those areas. (Section 49)
If a fishpond lease agreement holder acquires citizenship in another country during existence of the FLA, the lease is automatically cancelled and improvements are forfeited in favor of the government and disposed of under rules and regulations. (Section 50)
Fish pens, fish cages, fish traps, and other fish culture structures may be constructed and operated only within established zones designated by LGUs in consultation with FARMCs consistent with national fisheries policies, and only after securing corresponding licenses. (Section 51)
For an individual person, no more than 10% of suitable water surface area of all lakes and rivers may be allotted for aquaculture purposes like fish pens, fish cages, and fish traps, and stocking density and feeding requirements must be controlled and determined by carrying capacity. (Section 51)
Fish pens and fish cages outside municipal waters must be built and operated only within fish pen and fish cage belts designated by the Department, after securing corresponding licenses and paying required fees. (Section 51)
Existing pearl farm leases are respected and allowed under their terms; new leases may be granted to qualified persons with necessary capital and technology by LGUs having jurisdiction. (Section 52)
No new concessions, licenses, permits, leases, or similar privileges for establishment/operation of fish pens, fish cages, fish corrals/traps, and similar structures in municipal areas may be granted except to municipal fisherfolk and their organizations. (Section 53)
Inland fishponds, fish cages, and fish pens must be covered under the Philippine Crop Insurance Corporation insurance program for losses caused by force majeure and fortuitous events. (Section 54)
Lessees/licensees/permittees must not construct anything that obstructs free navigation in streams, rivers, lakes, or bays flowing through or adjoining structures; any violating construction must be removed upon order of the Department in coordination with other agencies at the expense of the lessee/licensee/occupants, when applicable. (**Section