Title
Guidelines for Maritime Mobile Service Accounting
Law
Ntc Memorandum Circular No. 05-06-2004
Decision Date
Jun 25, 2004
NTC Memorandum Circular No. 05-06-04 provides guidelines for the grant of a Certificate of Recognition to accounting authorities in the maritime mobile service in the Philippines, outlining qualifications, requirements, fees, and penalties for non-compliance.
guidelines
grant
certificate of recognition

Legal basis and international linkage

  • The Circular is promulgated pursuant to Act 3846, as amended.
  • The Circular is promulgated pursuant to Executive Order No. 546.
  • The Circular adopts international principles under International Telecommunications Regulations.
  • The Circular specifically references ITU-T Recommendation D.90 for charging and billing of maritime accounts of Philippine registered ships.
  • NTC Memorandum Circular No. 05-06-2004 adopts ITU-T Recommendation D.90 as part of the Circular and appends a copy of ITU-T Recommendation D.90.

Purpose and coverage rules

  • The Circular defines the duties and responsibilities of accounting authorities in the maritime mobile service.
  • The Circular ensures that accounting authorities operate in accordance with International Radio Regulations.
  • The Circular applies in a manner that takes into account applicable ITU-T Recommendations, specifically Recommendation D.90.

Core definitions of key terms

  • Accounting Authority (AA) refers to any organization designated by the Administration that acts as a billing intermediary between maritime mobile stations and service providers.
  • Maritime Mobile Service covers the maritime mobile satellite service and the MF, HF and VHF radio media, unless specifically stated otherwise.
  • Maritime Mobile Satellite Service covers mobile earth stations on board ships, including survival craft stations, emergency position–indicating radio beacon stations, and Inmarsat communications equipment.
  • Service Provider refers to a recognized private operating agency (RPOA) authorized to provide communication service to and from maritime mobile stations.
  • Maritime Bill means the bill issued by the service provider for collection of charges for maritime mobile traffic that originated from a maritime mobile station.
  • Administration refers to the National Telecommunications Commission (NTC) or the Commission for purposes of the Circular.
  • ITU-T refers to the International Telecommunications Union organization responsible for international telecommunications recommendations, including charging and billing principles and settlement of international telecommunications accounts.
  • ITU Recommendation D.90 refers to principles for charging, billing, international accounting, and settlement for the maritime mobile service.

General provisions for accounting authorities

  • Accounting Authorities must be registered with the Commission.
  • Accounting Authority registration is subject to periodic review and inspection to determine compliance with the Circular.
  • If a registered Accounting Authority plans to relinquish its Authority, the Commission must be notified in writing at least six (6) months in advance.
  • If a registered Accounting Authority intends to change ownership, merge, or sell, it must inform the Commission in writing at least three (3) months in advance.
  • The new owner is treated as a new applicant if it is interested in becoming an Accounting Authority.
  • Each Accounting Authority is allocated a distinct Accounting Authority Identification Code (AAIC).
  • The AAIC has two parts: two letters indicating the country where the Accounting Authority is based (e.g., Philippines is PH) and a maximum of two numeric characters denoting the particular Accounting Authority.
  • Accounting Authorities must remit in a timely manner all valid amounts due to foreign administrations or their agents.
  • Accounting Authorities must cooperate fully with the Commission on international maritime settlement issues, including resolution of questions of fact or other issues arising from settlement operations.
  • Accounting Authorities must maintain accounting records for at least five (5) years.
  • The NTC must submit all names, addresses, and identification codes of Accounting Authorities to the Radiocommunications Bureau for inclusion in the List of Ship Stations.
  • ITU-T Recommendation D.90 is adopted to form part of the Circular.

Qualifications and recognition requirements

  • An applicant Accounting Authority must be organized under Philippine laws to engage in maritime accounting, billing and collection, and other related services.
  • An applicant must have skill and expertise in maritime accounting, billing, and collection, or related endeavor such as general commercial accounting in the international shipping industry.
  • An applicant must have authorized capitalization of Four Million (PHP 4,000,000.00) pesos.
  • An applicant must be capable of providing full accounting facilities for all maritime services, including maritime mobile satellite, using electronic media for transmission and reception of bills and the software needed for accounting and billing operations.
  • Any application for Recognition must be filed with the Commission and must be supported by the following requirements:
    • Letter of Intent
    • Duly accomplished application form
    • A duly certified true copy of SEC Registration Certificate and Articles of Incorporation, or DTI Registration Certificate, or business permit (optional for new)
    • Latest Audited Financial Statement, if applicable
    • List of personnel complement or organizational structure
    • List of equipment or office facilities
    • Procedure in the collection and billing of customers/clients
    • Flowchart in the collection and billing of customers/clients
    • Economic viability and financial feasibility study

Role, duties, and reporting obligations

  • Accounting Authorities must provide customers with a clear statement of accounts in accordance with ITU-T Recommendation D.90, including the period, date, time, and amount used as the basis for charges for services provided.
  • Accounting Authorities must obtain applicable tariff information from the service provider and make this information available to customers.
  • Accounting Authorities must guarantee payment of collection charges to communications service providers for traffic originating from Philippine registered maritime mobile stations.
  • Accounting Authorities must maintain up-to-date and accurate records of ship stations for which they have full responsibility.
  • Any change in status, ownership, termination, or commencement of contract must be notified immediately to the ITU through the Commission.
  • The report to the ITU must contain:
    • Inmarsat Mobile Number (IMN)
    • Ship call sign
    • Maritime Mobile Service Identity Number (MMSI)
    • Commencement/termination date
    • Previous agent or new agent, if applicable
    • Previous owner, if applicable
  • Accounting Authorities must submit to the Commission, on a quarterly basis, an updated list of shipping companies with the corresponding status of accounts.
  • Accounting Authorities must issue certification to shipping companies with updated payments of maritime/satellite accounts for licensing purposes with the Commission.
  • Accounting Authorities must submit any requirement determined by the Commission from time to time.

Certificate issuance, validity, and renewal

  • The Commission issues a Certificate of Recognition as Accounting Authority after compliance with the Circular’s provisions.
  • A Certificate of Recognition is valid for one (1) year.
  • Any new Certificate of Recognition is issued on a temporary basis valid for six (6) months.
  • Subsequent renewals of the Certificate of Recognition are valid for one (1) year.

Grounds for denial, suspension, and revocation

  • The Commission may deny or disapprove an application for incomplete application.
  • The Commission may deny or disapprove an application if the applicant fails to provide necessary information requested by the Commission.
  • The Commission may deny or disapprove if the applicant indicates it cannot meet a particular provision of the Circular.
  • Failure to submit required reports to the Commission and non-payment of necessary fees and charges may be grounds for suspension and revocation.
  • Violation of any provisions of the Circular may be grounds for suspension and revocation.

Fees, charges, and penalties

  • The filing fee is PHP 500.00.
  • The temporary Certificate of Recognition fee is PHP 2,500.00.
  • The regular Certificate of Recognition fee is PHP 5,000.00 per year.
  • The inspection fee is PHP 1,200.00 per year.
  • Any violation of any provision of the Circular carries a penalty fine of PHP 5,000.00 for each and every offense.
  • Other violations of radio laws and regulations are penalized according to the Commission’s schedule of fines and penalties.

Transitory and separability effects

  • New Certificates of Recognition are issued temporarily for six (6) months, while continued authorization proceeds through renewal cycles of one (1) year.
  • The Circular’s effectivity is governed by the publication and UP Law Center copy-furnishing requirements: 15 days after publication and after submission of three (3) certified true copies to the UP Law Center.

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