Law Summary
Coverage
- Applies to ships used exclusively for company use.
- Applies to ships not engaged in public service within Philippine ports or areas.
- Applies to operations not covered by RA No. 9295 and its IRR and amendments.
Definitions
- Certificate of Public Convenience: License issued by MARINA for domestic shipping operations.
- Certificate of Exemption: Document issued by MARINA exempting a shipowner/operator from securing a CPC.
- Insurance Company: Entity authorized and licensed under Philippine law to conduct marine insurance.
- MARINA: Maritime Industry Authority.
- Principal Place of Business or Office: Official business address as indicated in corporate or business registration documents.
- Ship or Vessel: Any floating craft or contrivance designed for transporting passengers or cargo in domestic trade using own or external motive power.
General Provisions
- Applicants (individuals or entities) with ships covered by this Circular must file an application for exemption with MARINA or relevant Maritime Regional Office.
- Applicant must demonstrate compliance with jurisdictional and documentary requirements for exemption consideration.
Specific Provisions
- Application must include ship name(s), nature of business/operation, and grounds for exemption.
- Amendments to the Certificate of Exemption are required for:
- Permanent addition or deletion of ships in the fleet.
- Change of ship’s name.
- Change in the name of the entity.
Jurisdictional Requirements
- Applicant must provide:
- Affidavit of publication in a national newspaper with clipping.
- Complete copy of the newspaper containing the Notice of Hearing.
Documentary Requirements
- Completed MARINA application form.
- Ship documents: Certificate of Ownership, Philippine Registry, applicable licenses.
- Authorization documents (notarized powers or resolutions) for representatives.
- Relevant charter contracts.
- Ship Safety Certificates (varying by ship type, e.g., Passenger Ship Safety Certificate, Cargo Ship Safety Certificate).
- Radio/Ship Station License.
- Passenger insurance with minimum liability coverage (P200,000 per passenger).
- Oil pollution coverage details as required.
- Photographs of the ship (port, starboard, astern views).
- Proof of payment of processing fees.
- Additional documents for amendments (e.g., deletion certificate from registry, updated ship documents).
Procedures and Processing Time
- Applications filed at MARINA Central or Regional Office where principal business is located.
- Jurisdiction attaches upon application filing and fee payment.
- Acceptance only if documentary requirements are complete and valid.
- Deficiencies noticed trigger issuance of an Order to rectify within 10 days.
- Notice of Hearing (NOH) issued and published with a 5-day advance publication period.
- Hearing conducted by authorized officers with appearance of applicant or representative.
- Applicant must submit proof of notice publication and documentary requirements at hearing.
- Formal Offer of Evidence (FOE) required during or within 5 days after hearing.
- MARINA conducts post-evaluation; if satisfactory, issues acceptance Order and submits case for decision.
- Failure to comply with requirements after notice may result in dismissal.
- Decision and Certificate of Exemption issued within 15 days post-FOE acceptance.
- Denial issued if requirements unmet.
- No processing if applicant has unsettled MARINA accounts.
- Signature authority for decisions lies with Administrator, Deputy Administrators, or Regional Director for regional cases.
Transitory Provisions
- Shipowners/operators must file exemption applications within 6 months from Circular effectivity.
- Previously exempted ships must notify MARINA within 6 months for issuance of new exemption certificates.
Repealing Clause
- Repeals Section 14 (b) of the Public Service Act as amended and Flag State Administration Advisory No. 64.
- Amends or repeals inconsistent MARINA issuances accordingly.
Separability Clause
- Invalidity of any provision does not affect remaining provisions, which remain effective.
Effectivity Clause
- Circular takes effect 15 days after publication in a newspaper of general circulation in the Philippines.