Coverage
- Applies to all shipyards owned/operated by Filipino citizens, foreign nationals, corporations, partnerships, cooperatives, or entities engaging or intending to engage in shipbuilding or ship repair activities within the Philippines.
Key Definitions
- Administration: Refers to the Maritime Industry Authority (MARINA).
- Annual Endorsement: Confirmation of license validity following annual inspection.
- Builder's Certificate: Issued by MARINA-registered shipyards for ships constructed or modified per approved standards.
- Certificate of Dry-docking: Certification for ships complying with dry-docking requirements at a MARINA-registered shipyard.
- Dry-Docking: Process of removing ships from water for hull and integral parts maintenance.
- License: Certificate granting permission to engage in shipbuilding/repair issued by MARINA.
- Shipyard: Facility capable of lifting vessels to conduct repair or construction work.
- Shipbuilding/Repair Capability: Measure of a shipyard’s resources including machinery, manpower, technical knowhow, and financial capacity.
General Provisions: Registration
- Mandatory registration and issuance of Certificate of Registration for all entities engaged in shipbuilding/repair.
- Book of Shipyard Registry maintained by MARINA, open for public inspection subject to Freedom of Information Rules.
- Grounds for removal from registry: non-operation for five years or violation of government rules after due process.
- Name of registered entity must reflect shipbuilding and/or repair operations.
- Qualification inspection is a pre-requisite before registration/licensing.
- Shipyards must observe gender equality and women empowerment as per Republic Act 9710.
General Provisions: Licensing
- Only MARINA-registered shipyards issued licenses to operate.
- License is required to avail incentives or privileges.
- Proof of ownership or lease contract (minimum 5 years) required.
- Annual inspection mandatory before license renewal.
- License restricted to authorized business location; one license per location rule applies.
- Separate license required for ship breaking activities.
- Membership or pending application in a MARINA-recognized shipyard association is mandatory.
- ISO 9001:2015 certification for Quality Management System required from an accredited certification body.
- Applicable Health, Safety, and Environmental Management Systems must be documented and verified.
Qualification Requirements
- Classification and Capitalization:
- Class A: Facilities to build/repair ships ≥130 meters; paid-up capital of P50 million.
- Class B: Facilities for ships up to 129 meters; P25 million capitalization.
- Class C: Facilities for ships up to 80 meters; P10.5 million capitalization.
- Staffing:
- Requirements of technical and skilled personnel with minimum numbers specified for each class.
- Technical managers require education/training in shipyard operations; skilled workers require certifications or experience.
- Machinery and Equipment:
- Prescribed minimum number and types of machinery (cranes, welding machines, hydraulic jacks, etc.) for each shipyard class.
- Existing shipyards must comply with requirements upon license renewal.
Documentary Requirements
- Separate requirements specified for registration, licensing/issuance/upgrading, renewal, and annual endorsement.
- Includes applications, certifications of legal registration, proof of ownership/lease, employment permits (foreign nationals), environmental compliance, occupational safety, and financial statements.
License Validity
- License valid for five years subject to annual endorsement.
- Must be prominently displayed at place of business.
Conditions and Obligations
- License non-transferable.
- Written notice required 30 days before suspension/withdrawal.
- License renewal applications must be filed 30 days before expiry with inspection requirements complied.
- Surrender of original licenses required on suspension or withdrawal.
- Licensed shipyards must secure Shipbuilding Permits before construction or modification of ships.
- Approvals for ship plans and specifications mandatory; only Registered Naval Architects and licensed engineers may sign technical documents.
- Hull identification number assigned and displayed for new constructions.
- Regular submission of business and personnel changes to MARINA within prescribed deadlines.
- Maintain and submit records electronically quarterly including dry-docking schedules, capacity details, reports, and new ship constructions.
Fees and Charges
- Registration and licensing fees scaled by shipyard class.
- Processing, pre-qualification, and renewal fees detailed accordingly.
Sanctions and Penalties
- Closure for engaging in activities without a license after due process.
- Graduated administrative fines for violations including operation with expired license, non-endorsed license, hiring unlicensed shipyards, failure to submit reports, and non-compliance with ISO certification.
- License suspension or revocation for repeated or serious violations.
- Specific penalties for failure to secure Shipbuilding Permit and for submission of false or tampered documents.
- MARINA empowered to suspend or revoke licenses for failure to meet qualifications, gross violations, or violations of environmental laws.
Transitory Provision
- Existing licensed shipyards required to re-register during renewal or endorsement.
- Compliance with quality management and safety systems required within one year from effectivity.
Repealing Clause
- Previous circulars inconsistent with current regulations are repealed, modified, or amended accordingly.
Effectivity
- Circular effective 15 days after publication in a national newspaper or Official Gazette per legal requirements.