The Philippine government is providing incentives to help upgrade the domestic fleet, including route protection and a 50% discount on fees and charges for applications and renewals.
The Maritime Industry Authority (Marina) recently released Circular No. 2015-04 that implements Executive Order (EO) No. 909, issued in 2010.
Marina said the EO aims to encourage the modernization, improvement and upgrade of the domestic merchant fleet as well as the introduction of internationally classed brand-new or newly constructed vessels in domestic shipping to “bring about safer and more efficient sea transport and improved quality of services.”
MC No. 2015-04 applies to all domestic ship owners or operators intending to invest in an International Association of Classification Societies (IACS)-classed new vessel for use in transporting passengers, cargoes, or fuel/oil products on domestic waters.
New or current owners or operators who will introduce IACS ships on their respective routes will be granted pioneer status.
Under EO No. 909, domestic ship owners or operators operating as “liner” or “tramper” for a period of six years are granted several incentives.
These include giving priority to pioneer status owners and operators in the issuance by Marina of the Certificate of Public Convenience (CPC) for routes on which they propose to operate, regardless of whether the routes have an existing ship operator.
“Marina shall promptly and without delay, issue all request for issuance of ship documents, certificates, and licenses within 10 working days provided the ship owner or operator has complied and submitted all the required documentary requirements,” EO No. 909 said.
Domestic ship owners or operators granted pioneer status will only be charged 50% of the regular fee in all applications and renewals of ship documents, licenses, certificates and permits.
A special ramp or berthing facility in any port will likewise be made available to IACS-classed brand new or newly constructed ships under EO No. 909.
In order for liners with pioneer status to recover their investments, their assets are to be protected for six years with a moratorium on the deployment of additional vessels, where other vessels will be barred from plying the link or route, but without prejudice to applications by ship owners or operators offering IACS-classed brand-new or newly constructed vessels.
The pioneer status and incentives may be revoked or cancelled if the owner or operator fails to deploy a ship within six months from grant of the status; conducts any unauthorized suspension or withdrawal of service; or makes a voluntary permanent withdrawal of service within the protection period of six years. Also, the perks may be removed if the owner fails to deploy within the period specified by Marina a replacement vessel for an original ship that has become temporarily or permanently unable to operate a route covered by the pioneer status. The incentive may likewise be recalled if the ship owner fails to maintain the vessel’s IACS class or violates the provisions of MC No. 2015-04.
Meanwhile, to simplify processing and issuance of the Marina Certificate of Philippine Registration to imported ships, the maritime agency said it has done away with the need to submit the Certificate of Payment and the Certificate of Conversion issued by the Bureau of Customs (BOC).
The rule, which is embodied in Marina Advisory No. 2015-17, said that in lieu of the two documents, “import entry declaration and any proof of payment of customs duties and taxes, due the subject ship bearing the final assessment of the BOC will be accepted.”—Roumina Pablo
