Title
Salvage Permits: Coast Guard and Customs Roles
Law
Letter Of Instructions No. 263
Decision Date
Mar 31, 1975
Letter of Instructions No. 263 addresses the overlapping functions of the Philippine Coast Guard and the Bureau of Customs in issuing permits for salvage operations, designating the Coast Guard as the sole authority for salvaging derelicts and sunken vessels, while the Bureau of Customs is authorized for salvaging cargoes, with coordination required for operations involving both ships and cargoes.

Purpose and policy directive

  • The instructions direct correction of overlapping and duplication between the Philippine Coast Guard and the Bureau of Customs in salvage permitting.
  • The instructions aim to promote simplicity, economy, and efficiency in government service.
  • The instructions are intended to provide a healthier economic atmosphere for the salvage operations business.
  • The instructions reallocate salvage permitting functions to avoid conflict and duplication.

Coverage and allocation of permitting powers

  • The Philippine Coast Guard is solely authorized to issue permits to salvage derelicts and sunken vessels or wrecks.
  • The Bureau of Customs is solely authorized to issue permits to salvage cargoes carried by sunken vessels.
  • When salvage operations involve both salvage of ships and cargoes, the Bureau of Customs and the Philippine Coast Guard must coordinate to avoid possible conflict.
  • Salvage permits and licenses cover salvage of derelicts, sunken vessels or wrecks, and cargoes carried by sunken vessels within the framework of these directives.

Presidential approval requirement

  • All salvage permits or licenses are not valid unless approved by the President.
  • Presidential approval applies to permits issued under the allocated functions of the Philippine Coast Guard and the Bureau of Customs.
  • Coordination between agencies is required in mixed ship-and-cargo salvages while maintaining the Presidential approval condition.

Guidelines for permit issuance

  • Only bona-fide or qualified salvage companies or corporations shall be authorized to undertake salvage operations.
  • Salvage operations must be started and finished within a reasonable period after issuance of licenses or permits.
  • These issuance guidelines govern the authorization of salvage under both agencies’ permit-issuing responsibilities.

Implementation through recommended rules

  • The Philippine Coast Guard and the Bureau of Customs are authorized to recommend to the President the necessary rules and regulations to implement the instructions.
  • Coordination for mixed salvages is operationalized through agency-to-agency coordination under the directive.

Transitory effect and compliance structure

  • The instructions direct immediate effect, making compliance required upon issuance.
  • Compliance is structured by: (a) exclusive agency permitting authority by subject matter, (b) mandatory Presidential approval for validity, and (c) uniform issuance guidelines (qualified companies and time-bound operations).

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