MARINA amends rules on tonnage fee assessment

• Rules on assessment and collection of annual tonnage fee (ATF) have changed, the Maritime Industry Authority (MARINA) says

• MARINA has issued Memorandum Circular No. DS-2022-01 reducing the ATF for payments made from July 1 to December 31

• The maritime watchdog also introduced a new provision that levies a P10 charge per gross ton on ships aged 0-5 years reckoned from its launch date. The regular schedule will apply starting from the vessel’s sixth year

• Shipowners with outstanding unpaid ATF before MC DS-2022-01 was issued will be allowed to settle the fee in staggered or installment mode

• MC DS-2022-01, signed on October 20 by Administrator Hernani Fabia, takes effect 15 days after its publication on October 26

The Maritime Industry Authority (MARINA) has amended its rules on assessment and collection of annual tonnage fee (ATF), including lower ATF for ships aged 0-5 years.

All owners of Philippine-registered ships in the domestic trade are required to pay the ATF of P25 per gross ton if payment is made from January 1 to March 31, and P30 per GT if payment is made from April 1 to December 31, according to MARINA Memorandum Circular No. DS-2022-01.

MC DS-2022-01, signed on October 20 by Administrator Hernani Fabia, takes effect 15 days after its publication on October 26.

Previously, the ATF was P35 per GT if paid from July 1 to December 31 under MC No. 2008-07, which provides the revised rules on the collection of ATF.

MC DS-2022-01 amends MC No. 2008-07.

The new MC added that in cases where the ship is 0-5 years in age reckoned from its launch date, the ATF is calculated at P10 per GT. The regular schedule will apply starting from the ship’s sixth year.

In all cases, the minimum payment should still be P500 per ship, as it was with MC No. 2008-07.

The ATF will be assessed on the GT of each registered vessel as of December 31 of the year immediately preceding the calendar year. The ATF is used to finance MARINA’s programs, activities, and projects for the promotion and development of maritime safety in the country.

For newly registered ships, the ATF should be assessed and collected from the date of issuance of the Certificate of Philippine Registry.

Payment of the ATF will be at the MARINA regional office (MRO) where the ship is registered.

In case a vessel changes its place of registry, the ATF for the preceding year must first be settled with the concerned MRO where the ship was registered prior to the transfer of registration to a new registry.

In case of deletion of a ship from the Philippine registry, the ATF should be assessed and collected for the duration of the ship’s operation prior to the approval/notice of deletion issued by MARINA.

Upon due written notice to MARINA, the registered shipowner may suspend operations to lay up the ship, in which case the ATF will be assessed and collected for the duration the ship is in operation during the year prior to the receipt of notice of suspension.

In case of change of ownership of the ship, the tonnage fee for the immediately preceding year must be paid in full. Failure to show proof of payment will be a ground for the denial of the request for approval for change of ownership. Either the seller or the buyer should pay for the ATF before the registration of the ship by the new owner.

Any application filed by the registered shipowner for certificates and licenses, including the company’s Certificate of Accreditation, is deemed suspended until full payment of the ATF.

Pursuant to MC DS-2021-03, or the revised rules on the grant of pioneer status for domestic shipowners, a shipowner/operator with International Association of Classification Societies-classed new or newly built ship granted with pioneer status will only be charged 50% of regular fees, including ATF, for a period of six years. In relation to this, the assessment and collection of the ATF will start from the approval of the amended Certificate of Public Convenience (CPC).

Similarly, the owner of a ship granted a roll-on/roll-off missionary route status under DS-2021-01 will only be charged 50% of fees and charges, including the ATF, for the “five-year protection of investment” period.

Any registered shipowner who fails to pay the ATF on or before December 31 each year will be levied a 50% surcharge based on the total assessed amount and non-renewal/non-issuance of applicable licenses/certificates, including the Certificate of Accreditation. Previously, a 1% interest for every month of delinquency was also charged under MC No. 2008-07.

MARINA’s Domestic Shipping Service will have oversight functions in monitoring, assessment, and reviewing MC DS-2022-01’s implementation to ensure uniformity and consistency.

As a transitory provision, registered shipowners who have outstanding unpaid ATF before the effectivity of MC DS-2022-01 will be allowed to settle the fee in staggered or installment mode by filing a written request with the concerned MRO.

Upon approval of the request, payment should be made in four equal installments without interest within one year from the date of letter approval. Failure to do so after a year will mean revocation of the CPC. – Roumina Pablo