Legal basis and governing framework
- The Circular is issued pursuant to Republic Act No. 1937 (the Tariff and Customs Code) as amended, and Presidential Decree Nos. 474 and 761 as amended.
- The Circular states that its rules shall govern operation of vessels in Philippine waters in accordance with these enabling laws and applicable customs and maritime requirements.
Coastwise License (CWL) requirements
- No vessel may engage in the coastwise trade unless a Coastwise License (CWL) is secured from and issued by the Maritime Industry Authority (MARINA).
- The CWL is valid for one (1) year from its issuance and is separate and distinct from any other certificate issued by the Authority relative to the vessel’s operation.
- Temporary CWL may be issued pending approval of the certificate of Philippine registry, but its validity cannot be longer than thirty (30) days unless the Administrator grants otherwise.
- Temporary CWL must be prepared and signed in triplicate and must contain the reason for granting the temporary license, the time for which granted, and the amount deposited to cover the fees.
- Eligibility for coastwise trade is limited to vessels carrying a certificate of Philippine registry.
- All ports and places in the Philippines are opened to vessels lawfully engaged in coastwise trade subject to the provisions of law applicable in particular cases.
- Vessels engaged in coastwise trade must fly the Philippine coastwise emblem at the main mast while entering, leaving, and in ports during daytime.
- The Philippine coastwise emblem must be a rectangular white flag with one blue and red stars ranged from staff to tip in the horizontal median line.
Bay and River License (BRL) requirements
- No vessel may engage in the business of towing or carrying of articles or passengers in bays, harbors, rivers, and inland waters navigable from the sea unless a Bay and River License (BRL) is issued by MARINA.
- The BRL is valid for one (1) year from its issuance.
- The BRL must specify the particular port or other body of water where the vessel may engage in towing or carrying articles or passengers.
- The limits of a bay or river within which a licensed vessel can navigate include the confluent river or lake navigable during any season of the year.
- Eligibility for a BRL requires that the vessel must be built in the Philippines and ownership must be vested in:
- citizens of the Philippines; or
- domestic corporations or companies with seventy-five per centum (75%) of their corporate capital belonging to citizens of the Philippines.
- Existing bay and river license holders who do not possess the required citizenship/capital thresholds under the eligibility rule may continue operating as eligible for BRL under existing law.
- No BRL is required for:
- vessels of three tons net or less;
- yachts, launches and other crafts used exclusively for pleasure and recreation;
- ship’s boats and launches bearing the vessel’s name and home port, plainly marked thereon; and
- vessels owned by the Government of the Philippines.
- The exemption from BRL requirements ceases at once if the exempt vessel engages in transporting cargo or passengers, for hire.
- Vessels under BRL—specifically all lighters, cascoes, paraos and bancas provided with a BRL—must bear the letters "B" and "A" immediately followed by the number of the license:
- the branding/carving must be in a conspicuous place forward on each bow; and
- the marking must be painted in dark color so it is plainly visible.
- If a BRL-designated vessel is of steel, the letter and number must be indelibly chiselled or cut into the vessel.
Pleasure Yacht License (PYL) rules
- The Administrator may license yachts used and employed exclusively as pleasure vessels owned by Filipino citizens.
- Licensed pleasure yachts may proceed from port to port of the Philippines and to foreign ports without entering or clearing at the customhouse.
- A pleasure yacht licensed under the authority above must comply with a customs notification procedure:
- upon arriving from a foreign port in the Philippines, after previously advising the Commissioner of Customs by telegraph of its probable arrival, the yacht must enter at a port of entry and must immediately report its arrival to the Customs authorities.
- The pleasure yacht license must be in the form prescribed by the Administrator.
- Licensed pleasure yachts must have their name and port of registration placed on a conspicuous portion of their hulls.
- Licensed pleasure yachts must be in all respects in accordance with the laws of the Philippines.
- Any violation of the pleasure yacht provisions renders the vessel liable to seizure and forfeiture.
- For identification of yachts and owners, the Administrator may issue a commission to sail for pleasure for any designated yacht owned by a citizen of the Philippines designating the particular cruise.
- The Administrator may prescribe a required yacht signal; all licensed yachts must use the signal of the form, size and colors prescribed by the Administrator.
- The commission to sail for pleasure is a token of credit to any Filipino official and to the authorities of any foreign power.
Documentary requirements for licensing
- License applications must include:
- a duly accomplished application form;
- a Certificate of Philippine Registry/Certificate of Ownership;
- a Certificate of inspection; and
- payment of the filing fee prescribed under existing rules and regulations.
- For motorized pleasure craft, applicants must pay energy tax in accordance with P.D. No. 845 and its implementing guidelines for:
- all motorized speedboats, yachts, launches and other watercrafts used for pleasure and recreation.
- For license renewal, the applicant must submit—in addition to the abovementioned requirements except item #2—a document showing passenger and freight rates and must surrender the old license.
Renewal, transfer, and operational surrender
- The license granted must be presented for renewal at the MARINA Central Office or the Maritime Regional Office where the owner/operator resides or homeports on or before the expiration date.
- If a vessel’s license expires while the vessel is underway on the return voyage to homeport, the owner, master or agent must present the expired licenses for renewal upon arrival.
- If the vessel is not in operation for any cause, the owner, master or agent must surrender the license on or before its expiration with the request for deferment or renewal.
- When the owner, master or agent applies for a transfer of license from one class to another, the corresponding license must be issued subject to submission or compliance with the necessary documentary requirements relevant to the change.
Enforcement, reporting, and administrative fines
- The MARINA Enforcement Office and the Maritime Regional Offices are directed to strictly enforce/monitor compliance with the Circular.
- Non-compliance must be reported within 48 hours to the Maritime Legal Affairs Office or the concerned unit of the Maritime Regional Office for appropriate action.
- Enforcers must not be obstructed or hindered from lawfully boarding vessels, inspecting them, and examining documents to determine compliance or non-compliance.
- For violations under the Circular, administrative fines and penalties must be in accordance with the existing rules and regulations and their subsequent amendments.
Repeal and effectivity rule
- Inconsistent provisions of existing MARINA rules and regulations, circulars, and orders are repealed or modified accordingly.
- The Circular becomes effective fifteen (15) days after its publication once in a newspaper of general circulation.