Declaration of State Policies and Objectives
- Implements an integrated program for planning, developing, financing and operating all ports nationwide.
- Coordinates and optimizes port facilities, equipment, and operations.
- Ensures smooth flow of domestic and international waterborne commerce.
- Promotes regional economic growth and inter-island as well as foreign trade.
- Reorients port administration to include effective use of hinterlands and tributary areas.
- Mandates proper collection, accounting, and utilization of port income and revenues for operational and capital needs.
Definitions of Key Terms
- Provides precise meanings for terms such as Authority, Board, Port District, Port, Navigable Waters, Anchorage, Terminal Facility, Basin, Dock, Drydock, Pier, Warehouse, Transit Shed, Wharf, Transportation Facility, Lighter, Vessel, Goods, Dues, and Rates.
- Establishes legal clarity for use in implementing rules and regulations.
Creation, Functions, and Powers of the Philippine Ports Authority
- Establishes PPA as a corporate body attached to the Department of Public Works, Transportation and Communications.
- Provides authority to declare Port Districts based on survey plans and geographic delineations.
- Assigns PPA duties including port planning, supervision, operation, licensing, regulation, services provision, pilotage control, training and development.
- Grants corporate powers such as suing, contracting, property acquisition, eminent domain, levying dues and charges, dredging, and investment.
Composition and Roles of the Board of Directors
- Board comprised of secretaries from key government departments and a private sector representative appointed by the President.
- Board holds all corporate powers of the PPA.
- Members receive per diems with travel expenses but no other compensation.
Organizational Management and Staffing
- President appoints General Manager and Assistant General Managers upon Board recommendation.
- Hiring governed by a merit system consistent with Civil Service rules.
- General Manager manages daily operations, staffing, salary standards, and implements Board policies.
Financial Structure and Accountability
- Authorized capital set at three billion pesos with initial government contributions.
- Authority may create reserves, invest funds, and borrow with Presidential approval.
- Annual budgets and financial statements required.
- Commission on Audit performs auditing functions; external auditors may be engaged.
- Annual report submitted to the President detailing activities and financials.
Dues, Rates, and Charges for Port Services
- President may adjust dues upon PPA's recommendation to reflect service costs.
- PPA may fix, regulate, and collect fees for use of facilities and services.
- Strict regulations on remission of fees, limited only to specific humanitarian or diplomatic cases.
- Powers to enforce payment include detainment of vessels and goods for unpaid fees.
- Authority holds liens on goods with priority over claims except for government duties and sale expenses.
- Exemptions from real property taxes apply to PPA.
Port Regulations and Safety Controls
- PPA empowered to promulgate rules for port development, operations, and maintenance.
- Specific regulations for handling dangerous goods.
- Harbor Masters may direct vessel movements and mooring.
- Existing customs rules remain applicable until replaced by PPA regulations.
Transfer of Assets, Liabilities, and Staff to PPA
- All public port facilities, properties, and intangible rights currently held by government agencies transferred to PPA.
- Ongoing projects to be completed and transferred.
- All related debts and liabilities also transferred.
- Philippine Coast Guard retains ownership over facilities related to safety at sea but transfers other facilities.
- Staff from abolished or reorganized agencies may be absorbed by PPA based on merit and fitness.
- Severance benefits mandated for officials and employees separated.
Construction and Dredging Operations
- Bureau of Public Works designated as executing agency for design, contract preparation, supervision, and construction of port facilities.
- Bureau may perform work by force account under certain conditions.
- PPA responsible for allocation and control of construction funds.
Transitional Provisions and Operationalization
- Until fully operational, Bureau of Customs and Bureau of Public Works continue port operations in coordination with PPA.
- Gradual transfer of operations and budgets to PPA expected by fiscal year 1977.
- Disputes on transfers escalated to the President for resolution.
Powers Transferred from Bureau of Customs and Other Agencies
- PPA receives powers related to dues, fees, supervision, licensing, and regulation of ports previously held by the Bureau of Customs.
- All port-related powers, duties, functions, and properties from any government agency transferred to PPA.
Repeal of Inconsistent Laws and Provisions
- Repeals or modifies laws, decrees, and provisions inconsistent with this Decree, including prior port authority acts and port-related customs code sections.
Separability Clause
- Invalidity or unconstitutionality of any provision shall not affect the remaining provisions of the Decree.
Penalties for Violations
- Violators of this Decree or PPA regulations subject to imprisonment from 1 day to 6 years and fines ranging from 200 to 100,000 pesos.
- Government officials face additional perpetual disqualification from public office.
- Corporate entities liable through responsible officers.
- Alien offenders subject to deportation after serving sentence and fines.
- Conviction results in automatic revocation of relevant licenses or permits.
Effectivity
- The Decree takes immediate effect upon promulgation.