Definitions of Key Terms
- Authority: Maritime Industry Authority under PD No. 474.
- Non-Vessel Operating Common Carrier (NVOCC): Carrier that does not operate vessels but issues bills of lading in its name assuming carrier liabilities.
- Ocean Freight Forwarders: Persons who procure transportation for compensation, consolidate shipments, and perform related ancillary services.
- If issuing own transport documents or undertaking liability for transport performance, treated as NVOCC.
- Ocean Common Carrier: Vessel-operating common carrier excluding tramp operations.
- Shipper: Owner or party for whom ocean cargo transport is provided.
- Consignee: Person authorized for lawful delivery under contract of carriage.
Licensing Requirements
- Applicants must be Filipino citizens or corporations with at least 60% Filipino ownership, except duly registered joint ventures.
- Applicant must be registered as a maritime enterprise per Memorandum Circular No. 9, s.1976.
- NVOCC applicants must submit a Certificate of Insurance covering cargo liability or a performance bond of P150,000 from an approved surety company.
Application Procedures
- Applications filed using prescribed forms with:
- Board resolution or proprietor/partners' authorization.
- Articles of Incorporation/Partnership or Business Name registration.
- List of directors and officers with at least 3 years' shipping experience plus biodata.
License Exemption
- Persons whose primary business is merchandise sales may forward their own merchandise shipments without a license.
Filing Process
- Applications submitted with payment of filing fees.
- Applicant's name, filing date, and time recorded in application entry book sequentially.
License Renewal
- Licenses renewed annually upon compliance with requirements.
- Late renewal incurs 25% surcharge of filing fee per month or fraction thereof.
- Operation suspends if renewal is delayed beyond deadline counted from issuance date.
License Cancellation Grounds
- Failure to maintain required qualifications.
- Willful or grossly negligent violations of licensing terms or relevant laws and regulations.
- Cancellation follows due notice and hearing.
Penalties for Operation Without License
- Fines up to P5,000 for unlicensed operation.
- Temporary business closure until license is secured.
- Fines up to P3,000 for parties dealing with unlicensed NVOCC or freight forwarders.
Enforcement Measures
- Memorandum of Agreement among Maritime Industry Authority, Bureau of Customs, Philippine Ports Authority, Philippine Coast Guard, and other agencies to enforce compliance.
Effectivity of Rules
- Rules take effect 15 days after publication in two newspapers of general circulation in the Philippines.
- Approved by the Maritime Industry Board on August 23, 1984, and signed by the Maritime Industry Authority Administrator and the Minister of Transportation and Communications.