Law Summary
Purpose
- To prescribe guidelines governing the salvage of vessels, cargoes, wrecks, derelicts, and other navigation hazards within Philippine waters.
Scope
- Applicable to all salvage operations involving sunken, floating, grounded vessels, wrecks, or objects within the territorial waters of the Philippines.
Definitions
- Salvage: Rescue, towing, breaking, scrapping, refloating, or removal of ships, wrecks, hazards, and their cargoes within Philippine jurisdiction.
- Salvor: Qualified person or entity holding a Philippine Coast Guard-issued Salvor Certificate of Registration (SCR).
- Wreck: Vessel or structure no longer functional as designed.
- Hazard: Any danger or obstruction to safe navigation.
- Abandoned Vessel: Unmanned, ownerless, or officially abandoned vessel.
- Port of Registry: Registration or licensing place at time of casualty or owner’s domicile if unregistered.
- Salvor Certificate of Registration: PCG-issued accreditation document for salvors.
- Salvage Certificate of Inspection: Attestation by Coast Guard that an object is a hazard after survey.
- Salvage Permit: Authorization issued for specific salvage operations.
- Emergency Salvage Permit: Permit for immediate salvage to remove navigational hazards.
- Permit to Transport: Authorization to move salvaged items.
General Provisions
- Philippine Coast Guard (PCG) is the sole government authority responsible for safety and salvage regulation in Philippine waters.
- Only Filipino citizens or corporations at least 75% Filipino-owned may engage in salvage business and obtain SCR.
- Salvage operations require prior issuance of Salvage Permit or Emergency Salvage Permit.
- Salvors are liable for damages during operations.
- Vessel owners may salvage their own property without permit provided ownership is established at the time of salvage.
Salvor Certificate of Registration (SCR)
- Applicants must meet minimum requirements including vessels, equipment, and personnel.
- Application submitted to nearest Coast Guard District with supporting documents such as business registration, NBI clearance, tax returns, and equipment certification.
- New registrants receive a provisional one-year SCR, subject to review before granting a permanent three-year SCR.
- Only the Commandant of the PCG approves SCR issuance.
Salvage Permits
- Required to conduct salvage operations, with distinct forms for commercial, government, abandoned vessels, and cargo salvage.
- Different clearances required for WWII vessels, cultural property, and use of explosives.
- Salvage Permit includes location, objects to be salvaged, and duration.
- Permits issued for not more than one year and may be renewed.
Salvage Operations
- Use of explosives requires clearance from PNP Firearms and Explosives Unit and Coast Guard supervision.
- Salvaging cargo requires customs clearance.
- Salved items require Permit to Transport.
- Coast Guard inspects completion of operations.
- Emergency Salvage Permits issued when immediate removal of hazards is necessary.
- Salvors must submit After-Salvage Operations Report including inventories and expenditures.
- Procedures for oil spill incidents include immediate reporting, response coordination, and supervision by PCG.
- Salvage vessels must be equipped with pollution control equipment.
Fees
- Application for SCR: ₱500
- SCR issuance and renewal: ₱2,500
- Application for Salvage Permit: ₱200
- Salvage Permit fees scale with vessel tonnage (₱1,000 to ₱2,500)
- Renewal fees same as application fees
Administrative Fines and Sanctions
- Unauthorized salvage business fined progressively from ₱5,000 up to ₱20,000 with possible suspension or revocation of license.
- Equipment or cargo recovered unlawfully may be forfeited to government.
Responsibilities
- Coast Guard District Commander: Issue permits, process SCR applications, monitor salvage operations, and enforce sanctions.
- Coast Guard Station Commander: Issue Certificates of Inspection and Emergency Permits, supervise salvage in jurisdiction.
- Assistant Chief of Staff for Navigational Safety (CG-10): Supervise implementation, maintain records, process approvals.
- Salvor: Conduct safe and thorough operations, submit reports, and remove navigation hazards completely.
Rescission and Effectivity
- Previous inconsistent memorandum circulars are rescinded.
- This circular takes effect upon publication.
Annex A - Minimum Requirements for Salvor Applicants
- Salvage barge with boom and crane, motor tugboat of at least 300 H.P.
- Personnel including divers and necessary pumps.
- Storage for explosives, welding and cutting tools, towing equipment, communication sets, first aid kit.