Legal basis and regulatory framework
- The Circular is issued pursuant to Presidential Decree No. 474, Republic Act No. 9295, and the rules implementing those laws.
- The Circular establishes rules for exemption from securing a Certificate of Public Convenience (CPC) under the applicable Implementing Rules and Regulations (IRR) of Republic Act No. 9295, including subsequent amendments.
Objective of the rules
- The Circular provides a system for the grant of exemption from securing a Certificate of Public Convenience (CPC).
- The exemption process is designed to apply to ships and operators that fall outside the CPC securing requirement under the IRR framework of Republic Act No. 9295.
Coverage and covered entities
- The Circular applies to all ships used exclusively for company use.
- The Circular applies to ships that are not engaged in public service in any ports or areas in the Philippines.
- The Circular applies to ships whose operations or services do not come under the purview of Republic Act No. 9295 and its IRR and subsequent amendments.
- The Circular requires filing by persons, partnerships, corporations, firms, and entities that have ships covered by these rules.
Core definitions
- A Certificate of Public Convenience (CPC) refers to the license or authority issued by MARINA to a domestic ship operator to engage in domestic shipping.
- A Certificate of Exemption from Securing CPC refers to the certificate issued by MARINA showing that a ship is not required to secure CPC.
- An Insurance Company refers to a corporation or entity authorized/licensed under Philippine laws for marine insurance and duly registered with the Insurance Commission.
- MARINA refers to the Maritime Industry Authority.
- Principal Place of Business or Office refers to:
- the address indicated in the Articles of Incorporation and By-Laws for corporations,
- the Articles of Partnership for partnerships,
- the Articles of Cooperation for cooperatives, and
- the DTI Certificate of Registration of Business Name for single proprietorships.
- A Ship (or Vessel) refers to any kind, class, or type of craft capable of floating, designed to be used (or capable of being used) in domestic trade for carriage of passengers and/or cargo, utilizing its own motive power or that of another.
What applicants must file and prove
- A person, partnership, corporation, firm, or entity with ships covered by the Circular must file an Application for Exemption from securing CPC with MARINA or the Maritime Regional Office (MRO) where its Principal Place of Business or Office is located.
- The applicant must show to the satisfaction of MARINA compliance with the jurisdictional and documentary requirements that merit exemption from securing CPC.
- Each application must indicate:
- the name(s) of ship/s,
- the nature of the applicant’s business or operation, and
- the ground(s) for exemption.
- An amendment of the Certificate of Exemption must be filed if there is:
- permanent addition or deletion of ship/s from the fleet,
- change of ship’s name, or
- change in the name of the entity.
- Proof of compliance with jurisdictional publication requirements must be presented during the hearing.
Jurisdictional publication requirements
- The applicant must present an Affidavit of publication in a newspaper of national circulation, together with the newspaper clipping.
- The applicant must present a copy of the whole newspaper where the Notice of Hearing was published.
- The Notice of Hearing (NOH) is set on a date that allows a five (5) day period for publication prior to the hearing.
Documentary requirements for exemption
- Every application for Exemption from Securing CPC must include:
- a duly accomplished application prescribed by MARINA;
- ship documents consisting of:
- Certificate of Ownership,
- Certificate of Philippine Registry, and
- Coast wise License/Bay and River License/Pleasure Yacht License, as applicable;
- authority documents consisting of either:
- Notarized Special Power of Attorney (for authorized representative for sole proprietorship/partnership), or
- Notarized Secretary’s Certificate and Board Resolution (for authorized representative for company/corporation);
- Charter Contracts, as applicable, with the rule that for local charter, there is no need to reflect the charterer’s name in the ship’s documents except in the insurance and other documents as may be necessary;
- Ship Safety Certificates based on vessel type:
- Passenger Ships: Passenger Ship Safety Certificate and Minimum Safe Manning Certificate;
- Cargo Ships: Cargo Ship Safety Certificate and Minimum Safe Manning Certificate;
- Tankers (other than gas tankers): Cargo Ship Safety Construction Certificate, Cargo Ship Safety Equipment Certificate, and Minimum Safe Manning Certificate;
- Tankers Carrying Gas: Cargo Ship Safety Construction Certificate, Cargo Ship Safety Equipment Certificate, Minimum Safe Manning Certificate, and Certificate of Fitness;
- Tugs, Dredgers and barges: Cargo Ship Safety Certificate and Safe Manning Certificate;
- High Speed Crafts: High Speed Craft Safety Certificate and Minimum Safe Manning Certificate;
- Other Ships: Passenger/Cargo Ship Safety Certificate and Minimum Safe Manning Certificate;
- Radio/Ship Station License (RSL/SSL);
- Passenger Insurance Coverage with an aggregate limit of liability of PHP 200,000.00 per passenger;
- Oil Pollution Coverage consisting of:
- Civil Liability Convention Certificate (CLC) for Tankers and Barges Carrying Persistent Oil, as applicable; and
- oil pollution coverage for tankers and barges carrying non-persistent oil, and
- Third Party Liability (TPL) for Liquefied Petroleum Gas/Liquefied Nitrogen Gas (LNG) Carriers;
- pictures of the ship showing the ship’s name on:
- port side, starboard side, and astern view, sized 5a x 7a;
- proof of payment of processing fee(s).
- For Amendment due to permanent addition/deletion of the ship from the fleet or change in the ship’s name, the applicant must file:
- an application for amendment identifying the ship to be added, deleted, or replaced and the reasons;
- relevant ship documents, as applicable (including for addition/replacement/change of ship’s name);
- a Certificate of Deletion from Philippine Registry for exportation or deletion of ship;
- proof of payment of processing fee(s).
- For Change in the name of entity, the applicant must file:
- an application form stating the change in name of the entity;
- ship documents/ship safety certificates under the relevant item for ship safety certificates, as applicable;
- proof of payment of processing fee(s).
Procedures, hearings, and processing timelines
- The application must be filed with the Central Office or the Maritime Regional Office where the applicant has its Principal Place of Business or Office.
- Jurisdiction is acquired over the applicant upon filing the application and payment of fees.
- Only applications with complete and valid documentary requirements are accepted.
- If deficiencies are noted on initial evaluation, an Order must issue within five (5) days from filing, requiring the applicant to:
- rectify noted deficiencies, or
- submit documents deemed necessary,
within ten (10) days from receipt of the order.
- A Notice of Hearing (NOH) is issued upon filing, setting the hearing date to allow a five (5) day publication period prior to the hearing.
- The NOH must contain:
- the case number,
- the venue,
- the date of hearing,
- the name(s) of the ship(s).
- The NOH must be published in any newspaper of national circulation, including tabloids.
- If the applicant fails to publish the NOH, a second NOH is issued, resetting the case for hearing after payment of fees.
- The hearing is conducted at the MARINA Central or Regional Office where the application was filed.
- The hearing is presided over by duly authorized Legal Officers or Hearing Officers.
- The shipowner or operator or its authorized representative is allowed to appear.
- The applicant must submit proof of compliance with NOH publication jurisdictional requirements and submit documentary requirements for marking during the hearing.
- The applicant must make a written Formal Offer of Evidence (FOE) during the hearing or within five (5) days from the hearing date, attaching jurisdictional and documentary requirements.
- MARINA performs post-evaluation of documents submitted with the FOE:
- If sufficient, MARINA issues an Order within three (3) days from receipt of the FOE accepting the FOE and submitting the application for resolution or decision.
- Otherwise, MARINA issues an Order directing submission of lacking requirements within ten (10) days from receipt; failure is a ground for dismissal.
- After favorable evaluation of the jurisdictional and documentary requirements, a Decision and corresponding Certification of Exemption granting the application is issued within fifteen (15) days upon acceptance of the FOE.
- For applications for Amendment of Exemption Certificate, MARINA issues a Decision and corresponding Rider Certificate.
- A Decision denying/dismissing the application issues to the applicant that does not meet the jurisdictional and documentary requirements.
- MARINA does not accept, process, or give due course to an application if the applicant has unsettled accounts with MARINA consisting of unpaid administrative penalties and fines or otherwise.
- The Administrator and Deputy Administrators or Officer-In-Charge of Deputy Administrators have authority to sign the Decision.
- If the MRO issues the Decision, it is signed by the Regional Director and forwarded to the Central Office for issuance of the corresponding certificates.
- Exemption Certificates are solely signed by the Administrator.
- MARINA issues the Decision and corresponding Exemption and Rider Certificate within fifteen (15) days upon acceptance of the FOE and declaration that the case is submitted for decision, after favorable evaluation of jurisdictional and documentary requirements.
Transitory filing rules
- All shipowners or operators covered by the Circular must file an Application for Exemption from securing CPC within six (6) months from the Circular’s effectivity.
- Shipowners or operators previously issued a Decision exempting their ships from securing CPC and still covered by the Circular must inform MARINA within six (6) months from effectivity for issuance of the corresponding Exemption Certificate.
Repeals, amendments, and separability
- Section 14 (b) of the Public Service Act, as amended, and Flag State Administration Advisory No. 64 are repealed.
- All MARINA Memorandum, MARINA Circulars, rules, regulations, or issuances inconsistent with the Circular are amended or repealed accordingly.
- If any provision or part is declared invalid or unconstitutional by a competent authority, the remaining provisions remain in full force and effect under a separability rule.