The House of Representatives has approved on second reading the bill that will provide a system for the Philippines’ ship registry, with the aim to make the country a competitive and leading flag state and maritime nation.
House Bill (HB) No. 9042, also known as the Philippine Ship Registry System Act, aims to establish the scope and procedure for the Philippine Ship Registry, the recognition and enforcement of maritime claims, and the limitation of liability.
Likewise, it will provide incentives to promote a comprehensive and orderly Philippine ship registry system.
ANGKLA Partylist representative Jesulito Manalo, principal author of the bill, said the proposed legislation seeks to help the country become more competitive while encouraging more ship owners in other parts of the world to register their vessels under the Philippine flag.
“In order to achieve this, we first must recognize that presently, there is a lack of a particular law completely addressing the registry system in the Philippines, which has been a perennial source of confusion and disorder,” he said.
Manalo stressed the need to formulate policies and rules that adhere to global standards and maritime conventions, particularly on ship registry.
He said only about 200 vessels are registered under the Philippine flag despite the country being a major supplier of global maritime professionals on board vessels in many parts of the world.
“Other countries have attracted many foreign-owned vessels to register under their flag states by reason of their simplified system of registration and the appealing incentives they offer,” Manalo said.
Under HB 9042, the Registry is to be comprised of the Register of Ships and the Record of Ship Mortgages and Encumbrances.
The proposal is to have one registry for all domestic and international flag vessels.
The Maritime Industry Authority (Marina) will be the lead agency in implementing the proposed law, and shall keep and maintain the registry of ships.
Ships registered with the Philippine flag are entitled to the privilege to engage, consistently with the limitations provided by law, in Philippine coastwise trade in accordance with corollary permits, certificates and franchises that may be issued to the vessel. They are also entitled to the right to invoke the exercise of the jurisdiction and control by Philippine government authorities over all persons found on board the vessel, or over any incident involving the penal or disciplinary responsibility of the master or any member of the crew, whether the same arises from a crime or quasi-delict committed on board the vessel or from any collision or other incident of navigation concerning the ship.
In turn, a Philippine-registered ship is obliged to abide by all applicable laws, decrees, orders, rules and regulations of the Philippines.
A certificate of Philippine registration shall be valid for no more than three years, and may be continuously renewed for a similar period, provided all requirements for registration or its renewal are met.
In case of bareboat chartered vessels, the certificate shall be valid for no more than three years or the period of the bareboat charter, whichever is shorter.
Registering a vessel in the Philippines requires payment of a processing fee, registration fee, and annual tonnage tax fee for the issuance and continued possession of a valid and subsisting certificate of registration. The annual tonnage tax fee shall be computed at a rate of US$0.10 per net register tonnage or its equivalent in Philippine peso based on the present or latest exchange rate posted by the Bangko Sentral ng Pilipinas on the date the tonnage tax fees are paid.
The tonnage tax fee can be reduced to $0.8 per net tonnage register as an incentive if the registered foreign-owned vessel where the ship owner, manager, operator, or bareboat charterer and all its crew officers, and employees have a valid, subsisting bargaining agreement that conforms to international labor standards, rules, and conventions.
The importation by the owner, manager, agent or bareboat charterer of a vessel, and of the spare parts, steel/metal plates and equipment needed to refurbish, repair and maintain such vessel shall be exempt from payment of import duties and taxes, value added taxes, and all other pertinent taxes.
The bill also includes provisions on licensure; conditions for registration; types of registration; record of ship mortgages and encumbrances; maritime liens and encumbrances; ship mortgages; enforcement of mortgage; foreign lines and mortgages; right to limit liability; limits of liability; limitation fund; enforcement/investigation; and casualty investigation.
While the Lower House version has been approved on second reading last February 7, no counterpart bill has yet been filed with the Senate. – Roumina Pablo
