MARINA Rules on Bareboat Charter of Ships

Foreign vessels under bareboat charter to Philippine nationals may receive Temporary Certificate of Philippine Registry with prior MARINA approval.

Only MARINA-accredited Philippine nationals may apply.
Applicants must submit comprehensive documents including vessel particulars, ownership, charter agreements, financial statements, classification certificates, and proof of tax payments.
Filing fee is PHP 10,000 per vessel for the first three years and PHP 2,000 annually thereafter.

Non-shipowning companies may charter up to 5 vessels; shipowning companies can charter up to 7 vessels per owned vessel.
Maximum charter period is 5 years for non-shipowners; no limit for shipowners but not beyond 1999.
Chartered vessels must not be older than 15 years unless MARINA allows exceptions.
Vessel names require MARINA approval.
Vessels must be classed by recognized classification societies during the entire charter period.
Charter agreements must require MARINA’s approval for any amendments.

Required timely submission of documents such as SOLAS certificates, photographs, charter agreements, Philippine Registry certificates, trading certificates, and oath of undertaking.
Obligation to remove old certificates from the previous flag and display the Philippine flag and call sign post-registration.
Undertake manning the vessel entirely with Filipino officers and crew; foreigners allowed only as supernumeraries.
Vessel operation must be exclusively controlled by the Philippine bareboat charterer without foreign owner interference, except protection of ownership rights.
Responsible for the 4.5% withholding tax on charter hire.
Submit a binding oath affirming compliance with operational, manning, ownership control, and tax payment requirements.
Must comply with all relevant Philippine laws applicable to Philippine-flagged vessels.
Maintain qualifications for accreditation throughout the charter period.
Other conditions and terms may be imposed by MARINA.
Cannot delete the vessel from registry without MARINA’s prior approval.

Administrative fines ranging from PHP 10,000 to PHP 20,000 for initial offenses regarding documentation and compliance; revocation of charter and cancellation of registry possible for repeated violations.
Serious breaches involving manning, operation control, tax payment, or deletion from registry carry fines of PHP 200,000 and five-year barring from chartering.
Violations of other Philippine flag vessel laws subject to similar penalties.
Principal officers actively responsible may be barred from future bareboat chartering even if they form new companies.
MARINA conducts hearings with notice before imposing penalties.
Decisions by the Administrator can be appealed to the Minister of Transportation and Communications within 15 days.