Rice Import Liberalization Act

Legal basis and regulatory relationship

The Circular is issued pursuant to Presidential Decree No. 474.
The Circular is issued pursuant to Executive Order No. 125, as amended.
The Circular is issued pursuant to Section 6, Chapter III of Republic Act (R.A.) No. 9295.
The Circular implements Section 6, Rule III of the Revised Implementing Rules and Regulations (R-IRR) of R.A. No. 9295.
Inconsistent provisions of existing MARINA issuances and related rules/orders/decisions are repealed, amended, or modified accordingly under the Circular’s repealing clause.

Policy objective and purpose

The Circular is intended to promote the competitiveness of Philippine-registered ships by providing flexibility in operations.
The Circular provides omnibus guidelines for evaluating the grant of Special Permit.
The Circular supports Philippine-registered overseas ships to operate within the national territory.
The Circular supports domestic Philippine-registered ships to operate in international waters.

Scope and coverage rules

A Special Permit from MARINA must be secured in accordance with the Circular.
Special Permit issuance for overseas-to-domestic operation is allowed when no available and suitable Philippine-registered ship operates within Philippine territorial waters to meet the specific shipping requirements of the shipper or consignee, as endorsed by the concerned Shipping Association.
Special Permit issuance for domestic-to-overseas operation follows the specific rules under the Circular’s domestic trade section.
Only companies/entities duly accredited by MARINA under MARINA Memorandum Circular No. 181 or MARINA Circular No. 2006-03, and their subsequent amendments, can apply for Special Permit.

Where to file applications

Applications for temporary utilization of Philippine-registered domestic ships for international voyages must be filed with the Overseas Shipping Office (OSO).
Applications for temporary utilization of Philippine-registered domestic ships for international voyages require the submission of documentary requirements in item VI-B, plus payment of the processing fee in item VII-B.
Applications for Special Permit for ships engaging in Brunei-Indonesia-Malaysia-Philippines (BIMP)-East ASEAN Growth Area (EAGA) may be filed with the MARINA Regional Office (MRO).
Applications for Special Permit for BIMP-EAGA require documentary requirements in item VI-B, plus the processing fee in item VII-B.
Applications for temporary utilization of Philippine-registered overseas ships for domestic trade within the national territory must be filed with the Domestic Shipping Office (DSO).
Applications for overseas-to-domestic temporary utilization require documentary requirements in item VI-A and payment of the processing fee in item VII-A.

Definitions and interpretation standards

Administration means the Maritime Industry Authority (MARINA).
Date of Launching is the date when a newly-built ship is released into the water.
Domestic Operation means utilization of a ship of any type within the Philippines.
Domestic Trade means sale, barter, or exchange of goods, materials, or products within the Philippines.
Tramping Operation/Service is a ship operation that mostly does not run a regular line, takes cargo wherever shippers desire, is hired on a contractual basis or chartered by one or a few shippers under mutually agreed terms, and usually carries full cargoes or bulk commodities.
Liner Operation/Service is domestic water transportation that publicly offers services without discrimination, with regular ports of call.
Double Hull Ship means a ship constructed with wing tanks or spaces extending for the full depth of the ship’s side such that cargo tanks are located inboard of the moulded line of the side shell plating and has a double bottom tank.
National Territory is as defined in Article I of the 1987 Constitution of the Republic of the Philippines.
Ship or Vessel covers any kind/class/type of craft or artificial contrivance capable of floating in water, designed for or capable of being used as a means of water transport within Philippine territorial waters for carriage of passengers or cargo (or both), using its own motive power or that of another.
LRIT (Long-Range Identification and Tracking) is the system providing global identification and tracking of ships in accordance with SOLAS Chapter V/Regulation 19-1.
Tanker is a ship constructed or adopted for bulk carriage of inflammable liquid cargoes.
Chemical Tanker is for bulk carriage of liquid products listed in Chapter 17 of the International Bulk Chemical Code and its subsequent amendments.
Gas Carrier is for bulk carriage of liquefied gas or other products listed in Chapter 19 of the International Gas Carrier Code and its subsequent amendments.
Oil Tanker includes combination carriers, any Noxious Liquid Substance (NLS) tanker as defined in Annex II of the present MARPOL Convention, and any gas carriers as defined in Regulation 3.20 of Chapter II-1 of SOLAS as amended, when carrying cargo or part of oil in bulk.
Tanker Barge is a general name for flat-bottomed, propelled or non-propelled, rigged or unrigged craft of full body and heavy construction adapted for transport and/or storage of oil, chemical, NLS, gases, and other inflammable, hazardous, and pollutant cargo.
Vessel Age is the age reckoned from the ship’s date of launching based on the Builder’s Certificate or Certificate of Vessel Registry.

Special Permit validity and general conditions

A Special Permit must be secured before operation under the permitted scope.
Applications must indicate the service(s) proposed to be offered and the routes, location, or area of operation.
A Special Permit is valid for one (1) month up to a maximum of three (3) months per issuance, renewable for the same period, but shall not exceed one (1) year.
Each application must have a valid Contract, Fixture Note, Contract of Affreightment, or Time or Voyage Charter Contract.
Each application must be favorably endorsed by the appropriate government agencies.
All covered entities must submit Entry and Exit Clearance documents issued by the Bureau of Customs (BOC) to prove actual arrival and departure of the vessel/rig to and from the Philippines.
Paragraph IV.11 does not apply when the Special Permit contract requires trips to the Philippines and back for the duration of the contract; in that case, only the initial departure date from and final arrival clearances to the Philippines are required.
All covered Philippine-registered overseas ships must submit the LRIT Conformance Test Result to MARINA.

Overseas trade: overseas-to-domestic requirements

No age requirement applies to overseas-to-domestic operations except for tankers carrying oil in bulk, which must be not more than fifteen (15) years old.
A tanker carrying oil in bulk must be double-hulled.
Overseas-to-domestic ships must be IACS-class.
All statutory certificates must be valid at the time of application.
The shipping company must be a legal entity compliant with Philippine laws, including capitalization and ownership structure and applicable taxes.
Special Permit issuance is allowed for overseas ships operating within the national territory when there is no available and suitable Philippine-registered ship meeting specific shipping requirements, endorsed by the concerned Shipping Association.

Domestic trade: domestic-to-overseas requirements

Special Permit for domestic-to-overseas operation may be granted only to ships classed by MARINA-accredited or recognized classification societies.
Wooden-hulled ships engaged in barter trading/border crossings between specially designated points in the Southern provinces of Mindanao and Palawan are granted special handling as an exception to the classification limitation.
The ship’s class must be maintained for the duration of the Special Permit.
The ship must be manned completely by Filipinos with valid certificates and licenses throughout temporary overseas operation.
Filipino manning must include STCW Certificates or Certificate of Competency (COC) for international trade in accordance with national and international regulations.
Only lawful cargoes may be carried, and the owner/operator must ensure the cargo has all necessary documents and clearance/approvals required by appropriate government agencies.
A ship with passenger accommodations may carry documented passengers, whether paying or non-paying, up to the maximum authorized capacity, provided passengers are covered by insurance.
During overseas operations, the ship must have valid international trading certificates and other required safety documents at all times.
Upon reversion to domestic operation, the Special Permit is automatically suspended, and the owner/operator must inform MARINA within five (5) days from reversion.
For a bareboat chartered ship, the Special Permit grant is conditioned on utilization in domestic trade for an aggregate period equivalent to one half (1/2) of the bareboat charter period as approved by MARINA, except for ships utilized in East ASEAN Growth Area (EAGA).
The owner/operator must comply with any directive/order from MARINA and abide by existing laws, orders, decrees, rules, and regulations for overseas operations, particularly those pertaining to the Department of Finance and the Bureau of Customs relative to exit and entry in any port of the Philippines.
In case of accidents, damages, or losses, the owner/operator assumes full responsibility to proper authorities for consequences arising from negligence, disregard of duty, and violations of law.
The company must comply with relevant Philippine laws, rules, and regulations on Philippine-registered ships’ operations, management, and control.
For domestic trade Special Permit applications for international voyages, MARINA requires a filing with OSO, with documentary requirem