Permit Requirement for Overseas Shipping Companies
- All overseas shipping companies, regardless of Filipino or foreign ownership, engaged in liner services to and from Philippine ports must secure a permit from the Maritime Industry Authority (MARINA).
- MARINA will prescribe schedules and sailing frequencies for these vessels before they call at Philippine ports.
- Ships already operational on the date of issuance are automatically granted the required permit.
Oversight of Service Reliability and Freight Rates
- Permits issued will be periodically reviewed by MARINA to ensure service reliability and the reasonableness of freight rates.
- Exceptions to rate review apply when fares, charges, or rates are set by international bodies or associations recognized by the Philippine government.
Penalties for Non-Compliance
- Ships operating without the necessary permits will face penalties including fines.
- Additional sanctions include denial of berthing space and priority at Philippine ports.
Regulation of Route Operators and Cargo Sharing
- MARINA regulates the entry of new operators on routes already sufficiently served by traditional operators.
- The adequacy of service is assessed based on cargo availability and compliance with the 40-40-20 cargo sharing rule under the UNCTAD Code of Conduct for Liner Conferences.
Authority and Implementation
- The MARINA Administrator is tasked with formulating the necessary guidelines, rules, and regulations to implement this directive effectively.
- The Administrator's formulations are subject to final approval by the President of the Philippines.