Rules on Vessel Lay-Up in Philippine Waters

Applies to all persons or entities engaged or seeking to engage in vessel lay-up business.
Covers foreign vessels due for lay-up.
Includes potential and declared lay-up sites suitable as determined by MARINA.

Certificate of Accreditation: Document granted to accredited lay-up agents.
Principal Officers: Key managerial officials responsible for daily marine and business operations.
Lay-up Center: Government-declared anchorage areas designated for vessel lay-up, notably within Davao Gulf, and other areas declared by MARINA.
Vessel Lay-up: Status of foreign vessels not actively in service, moored in lay-up centers.
Vessel Lay-up Agent: Person or entity accredited to handle vessel lay-up activities pursuant to the Circular.

Only specified anchorage areas including Malalag Bay, Bunawan Bay, Pujada Bay, Mayo Bay and other MARINA-declared sites may be utilized.
Lay-up agent accreditation is a prerequisite for obtaining lay-up permits and departure clearances.
Engagement of an accredited lay-up agent is mandatory prior to laying-up a foreign vessel.
Foreign vessels must be represented by accredited agents throughout the lay-up period.
Compliance with procedural guidelines for lay-up center use is required.
Lay-up or departure of vessels from centers requires prior MARINA permit.
MARINA retains authority for onsite inspection and coordination with other government agencies for safety, security, and easing administrative requirements.

Declaration based on verified information regarding safety, depth (minimum 95 feet), minimal currents, tide predictability, free navigational approach, shelter, and environmental cleanliness.
Official declaration issued as MARINA Advisory with Board notification.

Lay-up agents coordinate with MARINA for facilities and logistics.
Assume representative responsibility for foreign vessel owners in all governmental transactions.
Restricted to MARINA-designated lay-up areas unless otherwise approved.
Required to maintain safety, security, and environmental protection measures.
Must provide on-board security guards throughout lay-up duration.

Application filed with MARINA Central or Regional Office overseeing the lay-up center.
Corporations and partnerships must reflect lay-up business in SEC-registered documents.
Single proprietorships must register with DTI and include lay-up as a major activity.
Principal officers must have minimum one year maritime-related experience.
Must deploy adequate personnel for government coordination.
Technical facilities required include tugboats, mooring buoys, communication, safety, and logistics vessels.
Minimum paid-up capital of P5 million required.

Letter of intent, company registrations, audited financial statements (for existing companies), company profile with principal officers' bio-data, list of facilities, and payment of processing fee.

Accreditation valid for three years.
Timely filing of amendments, officer replacements, quarterly vessel lay-up reports, and immediate reporting of accidents/incidents mandatory.

Written notice to MARINA at least 15 days prior to business suspension or withdrawal.
Suspension of accreditation and surrender of certificate follows.

Lay-up agents apply with vessel details to MARINA office.
MARINA issues Authority to Accept Payment, agent pays permit and lay-up fees.
Lay-up fees are payable on every 5th working day, account cleared before vessel departure.
MARINA issues permit and informs concerned government agencies for cooperation.
Departure clearance issued upon full payment and coordination with relevant agencies.

Letter of Intent, Certificate of Accreditation, vessel arrival and departure dates, and vessel particulars as required.

Accreditation fee: P10,000 per application.
Lay-up permit and departure clearance fee: P2,500 each.
Lay-up fee stratified by vessel deadweight tonnage (DWT):
- Below 50,000 DWT: US$91/day
- 50,000 to 150,000 DWT: US$104/day
- Above 150,000 DWT: US$117/day

Operating without accreditation: escalating fines from P5,000 up to P25,000.
Operating with expired accreditation: fines at 50% of standard rates.
Failure to submit reports: fines from P2,500 to P12,500.
Noncompliance with provisions: fines escalating to suspension, cancellation or revocation of permits and accreditation.
Late payment of lay-up fees incurs 1.5% monthly surcharge.

Invalidity of any provision does not affect the rest of the Circular; remaining parts remain valid.

Circular takes effect immediately upon publication in a newspaper of general circulation.