MARINA revises rules on accreditation of maritime enterprises

• The Maritime Industry Authority has revised accreditation rules for maritime enterprises and expanded coverage of such enterprises to include ship management and companies that import and trade accessory boats, recreational crafts, and marine spare parts

• Memorandum Circular No. DS-2020-02 repeals MARINA’s almost two-decades-old rules on accreditation for maritime enterprises under MC 186 issued in 2003

• The new rules take effect on February 24

• MC DS-2020-02 aims to encourage companies engaging in crew management to invest in ship management operations

The Maritime Industry Authority (MARINA) has revised its rules on accreditation of maritime enterprises, expanding coverage to include ship management and companies engaged in importation and trading of accessory boats, recreational crafts, and marine spare parts.

Memorandum Circular (MC) No. DS-2020-02, which takes effect on February 24, repeals MARINA’s almost two-decades-old rules on accreditation for maritime enterprises under MC 186 issued in 2003.

The revised rules aim to encourage companies engaged in crew management to invest in ship management operations, and seek to have a source of data information on domestic seafarers employed by local manning agencies.

Under MC DS-2020-02, maritime enterprise now refers to a company or business undertaking which may include ship management; ship agency; multimodal transport operation and any other similar enterprise whose activities consist of representing within the Philippines, as an agent, the business interests of one or more shipping lines or shipping companies. It also includes ship husbanding; ship chandling; manning; companies engaged in importation and trading of accessory boats, recreational crafts, and marine spare parts; and other similar enterprises.

A maritime enterprise, except those covered by a separate accreditation by MARINA, must be accredited under MC DS-2020-02.  Domestic shipping enterprises, meanwhile, are accredited under CMC 2006-03.

The accreditation under MC DS-2020-02 will be valid for a period of three years and renewable for the same number of years, as was the case in the old circular.

MARINA also maintained the required minimum paid-up capital of P500,000 for applicant maritime enterprises.

Companies intending to operate in maritime-related enterprises for ships in the domestic trade must submit their applications for accreditation at MARINA’s Domestic Shipping Service (DSS). Companies intending to operate in maritime-related enterprises for Philippine-registered ships in the international trade must submit their applications at the Overseas Shipping Service (OSS).

Re-issuance of Certificate of Accreditation (CA) will be made whenever there are changes or amendments to the corporate/company name. A notice in writing must be filed with MARINA for any change in the incorporators, directors, or officers of the corporation/company, without the need for the re-issuance of the CA.

MC DS-2020-02 also now specifically states that the applicant must be a citizen and permanent resident of the Philippines, while commercial partnerships must be wholly owned by a Philippine citizen. In case of corporations, at least 60% of the capital should be owned by a Philippine citizen.

The fee for the issuance of CA has been raised from P5,000 under MC 186 to P11,000 for a corporation/partnership and P7,600 for a single proprietorship.

For the re-issuance of CA due to change of corporate/company name or change of business name for single proprietorship, the fee is P2,800.

The grounds for suspension or cancellation of accreditation remain the same, as well as the fines/penalties, except that a third offense now also includes company blacklisting and disqualification from applying for CA for one year.

The grounds for suspension/cancellation of accreditation after due investigation are:

• Failure to comply with any of the provisions under MC DS-2020-02
• Willful or gross violation of any of the terms and conditions of accreditation

Companies operating with expired CA will be liable for fines/penalties in accordance with the following schedule:

• First violation – P10,000
• Second violation – P20,000
• Third violation – P25,000, including company blacklisting and disqualification from applying for CA for one year under MC DS-2020-02

Aside from MC 186, MC DS-2020-02 also amends or repeals all other inconsistent rules, regulations, and circulars. – Roumina Pablo