Philippine Fisheries Code of 1998

Policy, objectives, and access principle

Section 2 declares food security as the State’s overriding consideration in the utilization, management, development, conservation, and protection of fishery resources.
The State adopts a flexible policy responsive to changes in demographic trends of fish, emerging trade trends in domestic and international markets, and the law of supply and demand (Section 2).
Section 2 limits access to fishery and aquatic resources for exclusive use and enjoyment of Filipino citizens.
Section 2 requires rational and sustainable development, management, and conservation in Philippine waters, including the EEZ and adjacent high seas, consistent with maintaining sound ecological balance and protecting/enhancing environmental quality.
Section 2 protects the rights of fisherfolk, with priority to municipal fisherfolk, through preferential use of municipal waters based on Maximum Sustainable Yield (MSY) or Total Allowable Catch (TAC), consistent with international treaties and agreements.

Key definitions and interpretive rules

Section 4 defines “Municipal waters” as municipal streams, lakes, inland bodies of water and tidal waters within the municipality, excluding protected areas and certain reserved lands, and includes marine waters between (i) lines drawn perpendicular to the coastline at the municipality’s boundary points at low tide and (ii) a third line parallel to the coastline including offshore islands and fifteen (15) kilometers from such coastline; when two municipalities face each other with less than thirty (30) kilometers of marine waters between them, the third line is equally distant from both opposite shores (Section 4).
Section 4 defines “Municipal fishing” as fishing within municipal waters using fishing vessels of three (3) gross tons or less, or fishing not requiring a fishing vessel (Section 4).
Section 4 defines “Fisherfolk” as persons directly or personally and physically engaged in taking and/or culturing and processing fishery and/or aquatic resources (Section 4).
Section 4 defines “Monitoring, control and surveillance” as comprising:
- Monitoring (continuous observing of fishing effort, characteristics of fishery resources, and resource yields),
- Control (regulatory conditions for exploitation/utilization/disposition), and
- Surveillance (degree and types of observations required to maintain compliance) (Section 4).
Section 4 defines “Maximum Sustainable Yield (MSY)” as the largest average quantity of fish that can be harvested from a fish stock/resource within a given period (e.g., one year) on a sustainable basis under existing environmental conditions (Section 4).
Section 4 defines “Total Allowable Catch (TAC)” as the maximum harvest allowed to be taken during a given period from a fishery area/species/group, which normally would not exceed the MSY (Section 4).
Section 4 defines “Aquaculture” as raising and culturing fish and other fishery species in fresh, brackish, and marine water areas (Section 4).
Section 4 defines “Electro fishing,” “Fishing with Explosives,” and “Fishing with Noxious or Poisonous Substances” as specific destructive methods using electricity, explosives, or harmful chemicals/substances, each intended to kill, stupefy, disable, or render unconscious fishery species (Section 4).

Utilization, management, and conservation limits

Fishery and aquatic resource use and exploitation in Philippine waters are reserved exclusively to Filipinos, but research and survey activities may be allowed under strict regulations for purely research, scientific, technological, and educational purposes that benefit Filipino citizens (Section 5).
Section 6 requires fees for fishpond rentals under Fishpond Lease Agreements (FLA) and license fees for Commercial Fishing Boat Licenses (CFBL) to reflect resource rent, as determined by the Department.
Section 6 directs the Department to prescribe fees and other fishery charges and issue the corresponding license/permit for fishing gear, accessories, and other fishery activities beyond municipal waters.
Section 6 requires license fees for fishery activities in municipal waters to be determined by LGUs in consultation with FARMCs; FARMCs may recommend appropriate license fees.
Section 7 commands the Department to issue licenses/permits for fishery activities subject to MSY limits as determined by scientific studies or best available evidence, with preference to resource users in local communities adjacent or nearest to municipal waters.
Section 8 empowers the Secretary to prescribe catch ceiling limitations (quotas) on the total quantity of fish for specified periods and areas based on best available evidence, and allows per-species catch ceilings when necessary and practicable.
Section 8 requires concurrence and approval/recommendation by special agencies, the concerned LGU, and consultation with the FARMC before catch ceilings may be established for municipal waters, fishery management areas, and waters under special agencies’ jurisdiction.
Section 9 empowers the Secretary to declare a closed season in Philippine waters outside municipal waters and in bays for conservation/ecological purposes through public notice in at least two (2) newspapers of general circulation or applicable public service announcements, at least five (5) days before declaration.
Section 9 allows closed season coverage to include municipal waters, fishery management areas, bays, and areas reserved for municipal fisherfolk, but only upon concurrence/approval/recommendation by the special agency, the concerned LGU, and consultation involving FARMCs, with LGUs empowered to establish closed seasons in municipal waters and reserved areas in consultation with FARMCs.
Section 10 prohibits introduction of any foreign finfish, mollusks, crustacean, or aquatic plants into Philippine waters without sound ecological/biological/environmental justification based on scientific studies subject to the applicable bio-safety standard under existing laws.
Section 10 allows the Department to approve introductions solely for scientific/research purposes.
Section 11 requires the Department to declare closed seasons, implement conservation/rehabilitation measures for rare, threatened and endangered species, and ban fishing and/or taking of such species including their eggs/offspring as identified by existing laws, in concurrence with concerned government agencies.

Environmental compliance and enforcement systems

Section 12 requires all government agencies and all private corporations/firms/entities undertaking activities/projects affecting environmental quality to prepare a detailed Environmental Impact Statement (EIS) prior to undertaking the development activity, as an integral part of planning under Presidential Decree No. 1586 and its implementing rules and regulations.
Section 13 requires that all EISs be submitted to the Department of Environment and Natural Resources (DENR) for review and evaluation.
Section 13 prohibits any person—natural or juridical—from undertaking any development project without first securing an Environmental Compliance Certificate (ECC) from the DENR Secretary.
Section 14 mandates establishment of a monitoring, control and surveillance system by the Department in coordination with LGUs, FARMCs, the private sector, and other agencies to ensure sustainable utilization and conservation exclusively for Filipino citizens’ benefit and enjoyment.
Section 15 requires that all fish and fishery products have an auxiliary invoice issued by LGUs or their duly authorized representatives prior to transport within the Philippines and/or for export purposes, upon payment of a fee determined by the LGUs to defray administrative costs.

Municipal fisheries governance and fisherfolk priority

Section 16 grants municipal/city governments jurisdiction over municipal waters as defined in the Code and makes them responsible, in consultation with the FARMC, for management, conservation, development, protection, utilization, and disposition of fish and fishery/aquatic resources within their municipal waters.
Section 16 permits municipal/city governments to enact appropriate ordinances in consultation with FARMCs and consistent with the National Fisheries Policy; ordinances are reviewed by the provincial sanggunian under Republic Act No. 7160.
Section 16 requires LGUs to enforce all fishery laws, rules, regulations, and valid fishery ordinances enacted by the municipal/city council.
Section 16 requires integrated management of contiguous fisheries resources that straddle multiple municipalities/cities/provinces and prohibits management based on political subdivisions of municipal waters to facilitate management as single resource systems; IFARMCs serve as collaboration venues.
Section 17 grants preference in the grant of fishery rights by the Municipal/City Council to duly registered fisherfolk organizations/cooperatives pursuant to Section 149 of the Local Government Code, while respecting permits of special agencies vested with jurisdiction over municipal waters (e.g., Laguna Lake Development Authority and Palawan Council for Sustainable Development).
Section 18 requires that all fishery-related activities in municipal waters be utilized by municipal fisherfolk and their cooperatives/organizations listed in the registry of municipal fisherfolk.
Section 18 authorizes, through an ordinance and acting through the local chief executive, operation of small and medium commercial fishing vessels within the ten point one (10.1) to fifteen (15) kilometer area from the shoreline only if all conditions are met: (i) no commercial fishing in municipal waters with depth less than seven (7) fathoms certified by the appropriate agency; (ii) use of methods/gears consistent with national Department policies; (iii) prior consultation through public hearing with M/CFARMC; and (iv) certification by the appropriate agency that the applicant vessel and the ship-owner/employer/captain/crew have not violated the Code, environmental laws, and related laws.
Section 18 bars granting such authorization/permit for fishing in bays determined by the Department to be in an environmentally critical condition and during the closed season under Section 9.
Section 19 requires the LGU to maintain a registry of municipal fisherfolk to determine priorities, limit entry, and monitor fishing and/or related activities, with the FARMC submitting the list of priorities for LGU consideration.
Section 19 requires updating the list/registry annually (or as necessary), posting it in barangay halls or strategic locations for public inspection, and formulating inclusion/exclusion mechanisms in consultation with FARMCs.
Section 19 requires LGUs, with FARMC assistance, to maintain a registry of municipal fishing vessels by type of gear and other particulars.
Section 20 provides that fisherfolk organizations/cooperatives whose members are listed in the municipal fisherfolk registry may be granted use of demarcated fishery areas to engage in fish capture, mariculture, and/or fish farming, but bars an organization/cooperative member whose household already has a fishery right other than for fish capture from enjoying the fishing rights granted to the organization/cooperative.
Section 21 grants resident municipal fisherfolk and their organizations/cooperatives priority to exploit municipal and demarcated fishery areas of the municipality.
Section 22 requires the LGU to grant demarcated fishery rights to fishery organizations/cooperatives for mariculture operation in areas identified by the Department.
Section 23 obliges LGUs, upon determination with the Department that municipal waters are overfished or at risk of overfishing and regeneration is needed, to prohibit or limit fishery activities in those waters.
Section 24 directs the Department and LGUs to provide support to municipal fisherfolk including technology/research, credit, production and marketing assistance, and training for supplementary livelihood.
Section 25 grants fishworkers the benefits accorded to other workers under the Labor Code, Social Security System, and other worker laws, and expressly covers fishworkers on board fishing vessels engaged in fishing operations under the Philippine Labor Code as amended.

Commercial fisheries licensing, eligibility, and operations

Section 26 prohibits operating any commercial fishing vessel, pearl fishing vessel, or vessel for commercial fishing-related activities (or seeking employment as a fishworker or pearl diver) without first securing a license from the Department, with the license period to be prescribed by the Department.
Section 26 exempts licensing for scientific/research vessels within Philippine waters if operating pursuant to an international agreement to which the Philippines is a signatory and if the agreement defines status, privileges and obligations, including obligations of non-Filipino officials of the international agency.
Section 26 provides that crew members of commercial fishing vessels are treated as fisherfolk except duly licensed/authorized patrons, marine engineers, radio operators, and cooks.
Section 26 requires all skippers/master fishers to undergo an orientation training on detection of fish caught by illegal means before issuance of their fishworker licenses.
Section 26 provides that large commercial fishing vessel licenses authorize operation only in Philippine waters seven (7) or more fathoms deep, with depth certified by NAMRIA, and subject to stated conditions and Department rules and regulations.
Section 27 bars issuance of commercial fishing vessel licenses unless to (i) citizens of the Philippines, or (ii) partnerships, or (iii) associations/cooperatives/corporations duly registered in the Philippines with at least sixty percent (60%) of capital stock owned by Filipino citizens.
Section 27 voids any direct or indirect sale, transfer, or assignment of stock/interest by any licensee to a person not qualified to hold the license; the transfer/sale/assignment is null and void and must not be registered in corporate/books.
Section 27 requires vessels owned by qualified entities to secure Certificates of Philippine Registry and necessary documents for fishing operations from concerned agencies; the commercial fishing vessel license validity is determined by the Department.
Section 28 provides that registration, documentation, inspection, and manning of all types of fishing vessels plying Philippine waters shall follow existing laws, rules, and regulations.
Section 29 requires registration and licensing of fishing gears used in commercial fishing before a licensed commercial fishing vessel may begin fishing operations; Department guidelines must be promulgated within sixty (60) days from approval of the Code.
Section 30 requires renewal of the commercial fishing boat license every three (3) years, and gives the owner/operator sixty (60) days prior to expiration to renew.
Section 31 requires notification in writing to the Department of transfer of ownership of a registered fishing vessel, with a copy of the document, within ten (10) days after transfer.
Section 32 permits fishing by Philippine registry vessels in international waters or foreign waters that allow such operations, subject to safety, manning, and other requirements of Philippine Coast Guard, Maritime Industry Authority, and other agencies.
Section 32 requires such international operations to secure an international fishing permit and certificate of clearance from the Department.
Section 32 provides that fish caught by such vessels are treated as caught in Philippine waters and not subject to all import duties and taxes only when landed in duly designated Philippine fish landings and fish ports; landing ports established by canneries, seafood processors, and all fish landing sites established prior to Code effectivity are treated as authorized landing sites.
Section 32 states that fishworkers on board Philippine registered vessels fishing beyond the Philippine EEZ are not considered overseas Filipino workers.
Section 33 prohibits importation of fishing vessels and construction of new fishing vessels without first obtaining Department approval/clearance.
Section 36 requires that every actually operated commercial fishing vessel of Philippine registry be manned in accordance with Philippine Merchant Marine rules and regulations.
Section 37 requires adequate medical supplies and life-saving devices on all fishing vessels; vessels of twenty (20) GT or more must have a crew member qualified as a first aider certified by the Philippine National Red Cross.
Section 38 requires each commercial fishing vessel to keep a daily record of fish catch and spoilage, landing points, and quantity and value of fish caught and offloaded for transshipment/sale/other disposal; detailed information must be certified by the captain and transmitted monthly to the Department officer/representative at the nearest designated landing point.
Section 39 requires vessels and crafts passing navigational lanes or engaged in fisheries activity to contribute meteorological and other data and assist documentation/reporting of vital navigation and fishing industry information.
Section 40 authorizes the Department to require registered fishing vessels to bear a color code and a distinct radio frequency specific to the area of operation.
Section 41 requires commercial and other passage not in the regular conduct of fisheries activity to be through designated navigational lanes.
Section 42 requires foreign fishing vessels seeking to use Philippine land/air/sea facilities for fish caught outside Philippine territorial waters to call only at duly designated government-owned/controlled regional fishport complexes after securing Department clearance.
Section 43 requires the Department, in coordination with the National Telecommunications Commission, to promulgate guidelines on operation of onboard radio communication facilities and assignment of radio frequencies by area of operation.
Section 44 regulates number and wattage of superlights by the Department and bans use of superlights within municipal waters and bays.

Incentives for fisherfolk and wider EEZ fishing

Section 34 provides that municipal and small-scale commercial fisherfolk receive incentives including:
- At least ten percent (10%) of the credit and guarantee funds of government financing institutions made available for post-harvest and marketing projects to reduce post-harvest losses, including projects like ice plants, cold storage, canning, warehouses, transport, and other related infrastructure.
Section 34 requires the Department to implement a capability-building program promoting bankability and creditworthiness, including organizing activities, technology transfer, skills training related to commercial fishing, and credit management; groups/cooperatives formed under the program receive priority access over credit guarantee funds established under the Code.
Section 34 requires the Department to conduct an information campaign to disseminate and improve accessibility of capability-building and credit programs.
Section 35 provides additional incentives to encourage fishing farther into the EEZ and beyond, subject to exhaustive evaluation of resource and exploitation conditions in specified areas.
Section 35 provides for long-term loans supported by guarantee facilities to finance building/acquisition/improvement of fishing vessels and equipment.
Section 35 provides limited-period tax and duty exemptions for Philippine registry commercial fishing operators on importation of fishing vessels not more than five (5) years old, equipment, and paraphernalia; the exemption period and guidelines are fixed by the Department within ninety (90) days from effectivity of the Code.
Section 35 provides duty and tax rebates on fuel consumption for commercial fisheries operations in the high seas for Philippine registry commercial fishing operators; guidelines are promulgated within ninety (90) days from effectivity by the Department.
Section 35 also applies all applicable incentives under the Omnibus Investment Code of 1987, provided the fishing operation project is qualified for registration and duly registered with the BOI.

Aquaculture and fishponds: land disposition and limits

Section 45 prohibits disposal or alienation of public lands such as tidal swamps, mangroves, marshes, foreshore lands, and ponds suitable for fishery operations.
Section 45 provides that upon effectivity, FLA may be issued for public lands declared available for fishpond development primarily to qualified fisherfolk cooperatives/associations.
Section 45 provides that when existing FLAs expire, current lessees receive priority and may obtain an extension of twenty-five (25) years for their leased areas.
Section 45 provides that after the extension phase, FLAs are granted to any Filipino citizen with preference primarily to qualified fisherfolk cooperatives/associations and small and medium enterprises under Republic Act No. 8289.
Section 45 requires the Department to declare as reservations portions of available public lands certified as suitable for fishpond purposes for fish sanctuary, conservation, and ecological purposes.
Section 45 bars, two (2) years after the approval of the Act, any fish pens, fish cages, or fish traps in lakes.
Section 46 requires fishpond leases for qualified persons/organizations to follow:
- Area limits: no more than 50 hectares for individuals and 250 hectares for corporations/organizations.
- Lease term: twenty-five (25) years, renewable for another twenty-five (25) years.
- Preemptive rights: in case of death, spouse and/or children as heirs have preemptive rights to the unexpired term, subject to the same terms and conditions.
- Lease rates determined by the Department, with all fees remitted to the National Fisheries Research and Development Institute and other qualified research institutions for aquaculture research development.
- Development/production timelines: producing on commercial scale within three (3) years of approval; areas not fully producing within five (5) years automatically revert to public domain for reforestation.
- No subleasing: fishpond shall not be subleased in whole or in part; violation cancels the FLA.
- Transfer/assignment only with prior written Department approval.
- Reforestation duty: lessee must reforest river banks, bays, streams, and seashore fronting the fishpond dike subject to rules to be promulgated.
- Environmental pollution minimization facilities (e.g., settling ponds/reservoirs); failure cancels the FLA.
Section 47 requires the Department to establish a code of practice for aquaculture with general principles and guidelines for environmentally sound design and operation promoting sustainable industry development, developed through consultative process with DENR, fishworkers, FLA holders, fishpond owners, fisherfolk cooperatives, small-scale operators, research institutions, academe, and other stakeholders; the Department may consult specialized international organizations.
Section 48 requires the Department to formulate incentives and disincentives (including effluent charges, user fees, and negotiable permits) to encourage compliance with environmental standards and promote sustainable management.
Section 49 mandates DENR, in coordination with the Department, LGUs, concerned agencies, and FARMCs, to determine which abandoned/undeveloped/underutilized fishponds covered by FLAs can revert to original mangrove state and to take steps to restore such areas.
Section 50 provides that fishpond lease agreement holders who acquire citizenship in another country during the existence of the FLA suffer automatic cancellation, and improvements are forfeited to government and disposed of under rules/regulations.
Section 51 requires that fish pens, fish cages, fish traps, and other culture structures be constructed and operated only within established zones designated by LGUs in consultation with concerned FARMCs consistent with national fisheries policies, and only after securing corresponding licenses.
Section 51 limits aquaculture area in lakes and rivers to not over ten percent (10%) of the suitable water surface area for aquaculture purposes like fish pens, fish cages, and fish traps, with stocking density and feeding controlled by carrying capacity.
Section 51 requires fish pens and fish cages outside municipal waters be in Department-designated fish pen and fish cage belts and after securing corresponding licenses and paying fees.
Section 52 respects existing pearl farm leases and allows operation under their terms; new pearl farm leases may be granted to qualified persons with necessary capital and technology by the LGUs with jurisdiction.
Section 53 prohibits granting new concessions, licenses, permits, leases, and similar privileges in municipal areas for fish pens/cages/corrals/traps and similar structures except to municipal fisherfolk and their organizations.
Section 54 requires inland fishponds, fish cages, and fish pens to be covered under the insurance program of the Philippine Crop Insurance Corporation for losses caused by force majeure and fortuitous events.
Section 55 prohibits construction that obstructs free navigation or impedes tidal flow to/from the area; Department may order removal of violating construction in coordination with other agencies at the expense of the lessee/licensee/occupants when applicable.
Section 55 requires the Department to formulate and implement rules within thirty (30) days after Code effectivity for immediate dismantling of existing navigation obstruction.
Section 56 prohibits constructions that obstruct defined migration paths of migratory fish species such as river mouths and estuaries within distance determined by concerned LGUs in consultation with and upon FARMC recommendation.
Section 57 requires registration of fish hatcheries, fish breeding facilities, and private fishponds with LGUs, which prescribe minimum standards in consultation with the Department.
Section 57 requires the Department to conduct a yearly inventory of all fishponds, fish pens, and fish cages whether in public or private lands.
Section 57 requires fishpond, fish pen, and fish cage operators to annually report to the Department the type of species and volume of production in aquaculture areas.

Post-harvest planning and facility licensing

Section 58 requires the Department to conduct regular studies of fisheries post-harvest operations and ancillary industries to formulate a comprehensive plan for post-harvest and ancillary industries.
Section 58 requires the comprehensive plan to account for guidelines on distribution/construction/maintenance/use of post-harvest infrastructure; credit and incentives for post-harvest operations; promotion of semi-processing/processing/handling; development of domestic fishmeal industry; development/strengthening of marketing facilities and pricing system with emphasis on collective marketing and elimination of middlemen; increased participation of cooperatives and NGOs; and integration of fisheries post-harvest operations into the national fisheries plan.
Section 59 requires LGUs to coordinate with private sector and concerned agencies and FARMCs in establishing post-harvest facilities for fishing communities such as municipal fish landing sites, fish ports, ice plants, cold storage, and fish processing establishments primarily for municipal fisherfolk, consistent with the comprehensive plan.
Section 60 requires all post-harvest facilities and fishery business establishments—including fish processing plants, ice plants, cold storages, fish ports/landings, and others—to register with and be licensed by LGUs, with LGUs prescribing minimum standards in consultation with the Department.

Import and export controls for food security

Section 61 regulates export of fishery products when exportation affects domestic food security and production.
Section 61 prohibits exportation of live fish except those hatched or propagated in accredited hatcheries and ponds.