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Republic of the Philippines S ae 70 JUN 208 Ds

House of Representatives. , Te .
Quezon City, Metro Manila x

Twentieth Congress
First Regular Session

HOUSE BILL NO. _ 134

Introduced by Representative Arnan C. Panaligan

EXPLANATORY NOTE

The Philippines is a maritime nation. The Philippine Archipelago is
composed of 7,641 islands with a coastline of 36,389 kilometers. As such, we rely
on water transportation as the principal mode to carry people, goods and products
from one island to another. In ferrying passengers and cargo, vessels offer a more
affordable means than air transport. It is therefore imperative that the Philippines
should maintain a fleet of modem passenger and cargo vessels that will ensure the
fast, efficient and safe transport of people and goods in domestic shipping routes.
This fleet should address not only domestic sea transportation but also foreign cargo
shipping to ensure that goods and products manufactured in the Philippines can be
shipped to overseas market at a lower cost.

‘The Philippines is the 5" largest shipbuilder in terms of Vessel Completion in
Gross Tonnage (GT) following the People’s Republic of China, South Korea, Japan
and the European Union (EU), according to the Maritime Industry Authority
(MARINA). At present, there are 125 MARINA registered shipyards in the
Philippines, 44% of which are in Luzon, 23% in the Visayas and 33% in Mindanao.
According to the Shipyard Association of the Philippines (ShAP), the shipbuilding
industry has more than 30,000 workers. However, 90% of the total income of
domestic shipyards are from ship repair rather than shipbuilding.

The shipbuilding and ship repair industry offers enormous potential in
propelling the industrialization of the Philippines. It will be a major source of
revenues for the country and generator of mass employment. The skills of Filipino


engineers, naval architects, technicians and workers will ensure the global
competitiveness of the Philippine shipbuilding and ship repair industry.

The purpose of this bill is to provide the legislative framework for the full
development of a world class shipbuilding and ship repair industry through the
provision of the proper incentives to domestic shipyards. These incentives that are
intended to attract investments in the domestic shipbuilding and ship repair industry
include Exemptions from Value Added Ta, Income Tax Holiday, Additional
Deduction for Labor Expense, Tax Credit on Domestic Capital Equipment,
Employment of Foreign Nationals and Incentives for Registered Shipbuilding and
Ship Repair Entities located in Shipbuilding and Ship Repair Industrial Parks.

Furthermore, the development of the Philippine Shipbuilding and Ship Repair
Industry will support the Armed Forces of the Philippines Modernization Program
as it will give the country the capability to build its own warships and other naval
vessels for the Philippine Navy, Philippine Coast Guard, Bureau of Fisheries and
Aquatic Resources and other law enforcement agencies of the government.

Indeed, a robust and globally competitive Philippine Shipbuilding and Ship
Repair Industry will be one of the pillars of National Industrialization that can propel
the Philippines into the ranks of developed countries thereby uplifting the standard

of living of millions of Filipino families.

In view of this, the approval of this bill is earnestly sought.

Coppa 2a
ARNAN C. PANALIGAN


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©

Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

‘Twentieth Congress
First Regular Session

HOUSE BILL NO. _134

Introduced by Representative Arnan C. Panaligan

AN ACT PROMOTING THE DEVELOPMENT OF PHILIPPINE
SHIPBUILDING AND SHIP REPAIR INDUSTRY, ORDAINING
REFORMS IN GOVERNMENT POLICIES TOWARDS SHIPBUILDING
AND REPAIR IN THE PHILIPPINES AND FOR OTHER PURPOSES,

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

CHAPTER I GENERAL PROVISIONS
SECTION I. Short Title. -This Act shall be known as the "Shipbuilding
Development Act"

SEC. 2. Declaration of Policy. -The state recognizes the role of the shipbuilding
and ship repair industry as one of the vital components of the maritime sector and

that it plays a key role in the economic growth of the country.
As such, it is important that the Philippine maritime industry also develops
and enhances the quality of its capacity and capability for mass water transportation

as well as for its maritime and naval forces. The Philippines needs continued


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modernization and expansion of its domestic shipping fleet to attain more growth

and competitive advantage in the domestic sphere.

To attain these objectives, it is hereby declared the policy of the State to: (a)
promote the Philippine shipbuilding and ship repair industry; (b) attract private
capital to invest in the shipbuilding industry by creating a healthy and competitive
investment and operating environment; (c) provide necessary assistance and
incentives for the continued growth of the Philippine shipbuilding and naval fleet;
(d) enhancement of the Filipino shipyard workers’ skills to meet international
standards; (e) encourage the development of a viable shipbuilding and ship repair
industry to support the expansion and modernization of the Philippine shipping and
naval fleet and its strict adherence to safety standards which will ensure the

seaworthiness of all sea-borne structures.

SEC. 3. Definition of Terms. -As used in and for purposes of this Act, the

following terms, whether in singular or plural, are hereby defined as follows:

(a) "Act" refers to the Philippine Shipbuilding and Ship Repair Industry Act

of 2025;
(b) "MARINA" refers to the Maritime Industry Authority (Authority);

(c) "MARINA- registered shipbuilding and ship repair entities" refer to

shipyards licensed and registered by the Authority;

(d) "Ship" or "Vessel" may be used interchangeably and shall mean any kind,
class, or type of craft or artificial contrivance capable of floating in water, designed

to be used, or capable of being used, as a means of floating in water transport in the


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domestic trade for the carriage of passengers or cargo, or both, utilizing its own

motive power or that of another;

() "Shipbuilding" shall mean the design, construction, launching, and

outfitting of all types of ships and watercraft;

(f) "Ship repair" shall mean the overhaul, refurbishment, renovation,
improvement, or alteration of the hull, machineries, equipment, outfits and

components of all types of ships;

(g) "Shipbuilding and Ship Repair Entities" refer to the citizens of the
Philippines, or a commercial partnership owned by majority of Filipinos, or a
corporation incorporated under the laws of the Philippines, the capital of which is
owned or controlled in any proportion by Filipinos or foreign nationals, or by both
such Filipinos or foreign nationals, or by corporations whether Filipino or foreign21
owned, which is duly authorized by the Administration to engage in the business of
shipbuilding and/or ship repair or to otherwise operate a shipyard, graving dock, or

marine repair yards;

(h) "Shipyard" refers to the shipbuilding or repair facilities which have the
capability to put vessels out of water in a drydock or to put vessels above the water
surface in order to effect ship work on vessels, appendages, structure, machinery,

and equipment;

(i) "Spare parts" shall mean the replacement parts or components of a vessel,
including but not limited to, its hull, engines, machineries, equipment, appurtenances,
necessaries, accessories, articles, supplies, materials, steel plates, aluminum plates,

other metal plates, communications equipment, and other parts or components


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thereof, installed aboard the ship necessary for its safe and efficient navigation and

operation;

(j) "Tax incentives" refers to fiscal incentives such as those which come from
in the form of Income Tax Holidays (ITYH), exemptions, deductions, credits, or

exclusions from the tax base, as provided by law to RBEs;

(k) "Technologically Improved Hull Material" refers to a combination of two
or more constituent materials with significantly different physical and chemical
properties that when combined, produce a material that is stronger, lighter, or
resistant to corrosion or electricity such as FRP, carbon fiber (graphite), Kevlar,

quartz, polyester, and other similar materials.
CHAPTER II INVESTMENT INCENTIVES

SEC. 4. Incentives to the Shipbuilding and Ship Repair Industry. -To
promote investments and to ensure the development of a viable shipbuilding and

ship repair industry in the Philippines, the following incentive is hereby granted:

Exemption from Value-Added Tax on the domestic purchase and/or
importation of capital equipment, machinery, spare parts, life-saving and
navigational equipment, raw materials such as steel plates and other metal plates
including marine-grade aluminum plates or steel or other technologically improved
hull material to be used in the construction, repair, renovation, alteration,
modification, conversion, or maintenance of the hull of any vessel operated or to be
operated in the domestic trade. Unless the domestic purchase and/or importation of

capital equipment, machinery, spare parts, life saving and navigational equipment


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and/or any materials are to be used in the construction, repair, renovation, alteration,
modification, conversion, or maintenance of the hull of any marine vessel operated
or to be operated within the Philippine waters or the high seas, or in the construction,
repair, expansion, renovation, alteration, modification, or rehabilitation of its
shipyard facilities, such exemption from VAT shall be availed of within five (5) years

from the effectivity of this Act.

The domestic purchase and/or importation of this article under Section 4 (a)

of this Act shall be granted exemption from VAT subject to the following conditions:

a) That said articles are not manufactured domestically in sufficient quantity of

comparable quality and at reasonable prices;

b) That said articles are directly imported by MARINA-registered shipbuilding and

ship repair entities;

c) That said articles are reasonably needed and will be used exclusively by the

MARINA-tegistered shipbuilding and ship repair entities in its transport operations;

d) That the approval of MARINA was obtained prior to the domestic purchase and/or
importation of articles under Sec. 4(a) shall be granted to all MARINA-registered

shipbuilding and ship repair entities unless otherwise stated by law; and

e) That exemption from VAT on any sale, transfer, or disposal of a ship built
domestically to a registered ship owner or operator, provided that such transaction

was granted prior approval from the MARINA.

SEC. 5. Incentives for Board of Investments-Registered Shipbuilding and Ship

Repair Entities. - Pursuant to the requirements set forth under Executive order (EO)

No. 226, otherwise known as "The Omnibus Investments Code of 1987," registered


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shipbuilders shall be granted the following incentives to the extent engaged in a

preferred area of investment:
(a) Income Tax Holiday.

1. For four (4) years from the operation of shipbuilding and ship repair entities,
the newly registered shipbuilding company shall be fully exempt from income taxes
levied by the National Government. Subject to such guidelines as may be prescribed
by the Board, the income tax exemption will be extended for another year in each of

the following causes:

i the project meets the prescribed ratio of capital equipment to number of
workers set by the Board;

ii. utilization of indigenous raw materials at rates set by the Board;

iii, the net foreign exchange savings or earnings amount to at least Five
Hundred Thousand US Dollars ($500,000.00) annually during the first four
(4) years of operation. The preceding paragraph notwithstanding, no
registered pioneer shipbuilding companies may avail of these incentives

for a period exceeding five (5) years

2. For a period of two (2) years from operation, registered expanding
shipbuilding companies shall be entitled to an exemption from income taxes levied
by the National Government proportionate to their expansion under such terms and
conditions as the Board may determine: Provided, however, that during the period
within which this incentive is availed of by the expanding company, it shall not be

entitled to additional deduction for incremental labor expenses.


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3. The provision of Article 7 (14) of Executive Order No. 226 notwithstanding,
registered shipbuilding companies shall not be entitled to any extension of this
incentive.

4. For a period of four (4) years for new or existing registered shipbuilding and ship
repair entities with at least four thousand (4,000) employees and produce vessels
with a minimum of seven hundred (700) gross tonnage and seventy percent (70%)

of such vessels produced are for export.

5. For a period of four (4) years for new or existing shipbuilding and ship repair
entities with at least one thousand (1,000) employees and produce vessels with a

minimum of two hundred fifty (250) gross tonnage and for domestic sale.
(b) Additional Deduction for Labor Expense.

For the first five (5) years from registration, registered shipbuilding and ship
repair entities shall be allowed an additional deduction from taxable income of fifty
percent (50%) of the wages corresponding to the increment in the number of direct
labor for skilled and unskilled workers if the project meets the prescribed ratio of
capital equipment to number of workers set by the Board; Provided, That this
additional deduction shall be doubled if the activity is located in less developed areas

as defined in Article 40 of Executive Oder No. 226 (E0 226).
(c) Tax Credit on Domestic Capital Equipment,

A tax credit equivalent to one hundred percent (100%) of the value of the
national internal revenue taxes and customs duties that would have been waived on

machinery, equipment, and spare parts, had these items been imported shall be given


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to the new and expanding registered shipbuilder which purchases machinery,

equipment and spare parts from a domestic manufacturer: Provided, that:

|. The said equipment, machinery, and spare parts are reasonably needed and
will be used exclusively by the registered shipbuilder in the manufacture of
its products unless prior approval of the Board is secured for the part-time
utilization of said equipment in a non-registered activity to maximize usage

thereof;

2. The equipment would have qualified for tax and duty-free importation

under paragraph (c)hereof
3. The approval of the Board was obtained by the registered enterprises; and

4. The purchase is made within five (5) years from the date of effectivity of
the Code. If the registered shipbuilder sells, transfers, or disposes of these
machinery, equipment, and spare parts, the provisions in the preceding

paragraph for such disposition shall apply.
(d) Employment of Foreign Nationals.

Subject to the provisions of Section 29 of Commonwealth Act No. 613, as
amended, a registered shipbuilder may employ foreign nationals in supervisory,
technical or advisory positions for a period not exceeding five (5) years from its
registration, extendible for limited period at the discretion of the Board: Provided,
however, That when the majority of the capital stock of a registered shipbuilder is
owned by foreign investors, the position of president, treasurer, and general manager
or their equivalents may be retained by foreign nationals beyond the period set forth

herein.

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Foreign nationals under employment contract within the purview of this
incentive, their spouse, and unmarried children under twenty-one (21) years of age,
who are not excluded by Section 29 of C.A. 613, as amended, shall be permitted to
enter, and reside in the Philippines during the period of employment of such foreign

nationals.

A registered shipbuilding and ship repair entity shall train Filipinos as
understudies of foreign nationals in administrative, supervisory, and technical skills

and shall submit annual reports on such training to the Board.

SEC. 6. Incentives for Registered Shipbuilding and Ship Repair Entities

Located in Shipbuilding and Ship Repair Industrial Park -
(a) Income Tax Holiday for four (4) to eight (8) years

(b) Special five percent (5%) tax rate on gross income after the lapse of the

income tax holiday
(c) Tax and duty exemption on imported capital equipment

(d) Exemption from twelve percent (12%) input Value Added Tax on allowable

local purchase of goods and services

(e) Unregistered use of consigned equipment and employment of foreign

nationals
CHAPTER III
SHIPBUILDING AND SHIP REPAIR FINANCING PROGRAM

SEC. 7. The MARINA, in partnership with government financial institutions,

shall provide financial and technical assistance, training, and consultancy services,

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which will promote, develop, and foster a sustainable and progressive maritime

industry.
CHAPTER IV

SHIPBUILDING AND SHIP REPAIR (SBSR) INDUSTRY COMPLIANCE
TECHNICAL COUNCIL

SEC. 8. Standards and Regulations Compliance. — The MARINA shall
promulgate a set of standards and regulations which all MARINA-registered
shipbuilding and ship repair entities are required to comply with in order to avail of

the incentives granted under this Act.

The MARINA shall have the power to promulgate the set of standards and
regulations for compliance, which shall be revised every three (3) years. Such
standards shall be formulated by MARINA in coordination with all necessary

government agencies.

SEC. 9. SBSR Technical Council. -Pursuant to the immediately preceding
section, there shall be created, for purposes of this Act, a Shipbuilding and Ship
Repair (SBSR) Technical Council, which shall accredit the shipyard facilities and
materials used by registered shipbuilding and ship repair entities. The council shall
be comprised often (10) members, that shall include representatives from the private
and public sectors. The following shall be ex oficio members of the coordinating

council:
1. Department of Finance (DOF)

2. Department of Transportation (DOTr)
a) Maritime Industry Authority (MARINA)
b) Philippine Ports Authority (PPA)
c) Philippine Coast Guard (PCG)

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Coun

3. Department of Trade and Industry (DT1)
a. Board of Investments (BOI)

4. Department of Labor and Employment (DOLE)
5. Department of Science and Technology (DOST)
6. Department of Environment and Natural Resources (DENR)

7. Department of Economy, Planning and Development (DepDev)

SEC. 10. Powers and Functions of the SBSR Compliance Technical

The SBSR Technical Council shall have the power and authority to:

1. Formulate policies for the development of the shipbuilding and ship repair

industry;

2. Set guidelines on the establishment of an SBSR Industrial Park;

3. Supervise, inspect, and evaluate all registered shipyard facilities to ensure

and enforce compliance with the safety standards and other regulations in

accordance with applicable conventions and regulations;

4. Implement standards for the evaluation and inspection of shipyard facilities

and vessels;

5. Require all domestic shipbuilders or repairers to comply with the

operational and safety standards for shipyards set by applicable conventions

and regulations, maintain their respective shipyards in updated and

serviceable order in accordance with the standards of the International

Maritime Organization (IMO) ;

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6. Formulate safety standards for all existing and new shipyard facilities in

accordance with applicable conventions and regulations;

7. Furnish the MARINA its findings and recommendations on the compliance

of shipyards to the prescribed standards; and

8. Promulgate such rules of procedures for the availment of the incentives
provided for under this Act: Provided, That such rules and regulations cannot
change or in any way amend or be contrary to the intent and purposes of this

Act.

SEC.11. Shipyard Facility Safety Standards. - All new and existing
Philippine shipbuilding or ship repair facilities shall undergo a safety standard
compliance test prior to commencing operations. The council, in coordination with
MARINA, shall have the power to inspect the shipyard facilities of registered
shipbuilding and ship repair entities. The MARINA shall adopt the findings of the
council during the shipyard evaluation and use the same as a basis to recommend

further operation, renovation or closure of a shipyard facility.

SEC. 12. Shipbuilding and Ship Repair Safety Standards. - All ships built
by or commissioned from registered shipbuilding and ship repair entities shall
undergo a safety and seaworthiness test prior to departing from the shipyard facility.
MARINA shall have the power to inspect all such vessels and all equipment on board
to ensure compliance with the safety standards. MARINA shall promulgate such
safety and seaworthiness standards for the test in accordance with those set by
international organizations related to shipbuilding. Such standards shall be published

in newspapers of general circulation.

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CHAPTER V
RESTRICTIONS ON SHIP IMPORTATION

SEC.13. - Three (3) years from the effectivity of this Act, and every three (3)
years thereafter, MARINA shall evaluate and determine the progressive capability
of MARINA registered shipyards to build and construct new vessels, including

larger classed vessels for domestic operations.

After every evaluation, MARINA shall provide an assessment to the domestic
shipbuilder or domestic shipyard indicating its capability and capacity level in

accordance with the rules and regulations promulgated by MARINA.

In the first year of evaluation, MARINA shall determine the capability of
MARINA- registered shipyards to build new vessels below 500 Gross Tonnage (GT).
If upon evaluation, the capability of MARINA-tegistered shipyards to build classed
vessels below 500 GT in quantities sufficient to meet domestic demand is proven,
all domestic shipowners/operators shall then be discouraged from importing new or
previously owned vessels that are less than 500 GT for the domestic trade and vessels
built in MARINA-registered shipyards shall be given priority for entry in the

Philippines Registry and allowed to operate in the domestic trade.

The MARINA shall undertake a yearly evaluation of the progressive
capabilities of all MARINA-registered shipyards to build larger classed vessels for
domestic trade in quantities sufficient to meet the demands of domestic ship owners
and shall correspondingly adjust the size of vessels which may be sourced from

MARINA registered shipyards

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CHAPTER VI

SHIPBUILDING AND SHIP REPAIR RESEARCH AND
DEVELOPMENT

SEC.14, The development and prototyping of noble-type vessels using
alternative sources of energy and other emerging technologies related to maritime
activities such as, but not limited to, maritime safety shall be in coordination with
the Philippine Council for Industry, Energy and Emerging Technology Research and
Development (PCIEERD) of the Department of science and Technology (DOST).
The vessel (prototype) produced shall be registered as shipbuilding and ship repair
entities for such purposes shall be registered as classified exclusively for marine
research production. Prototype vessels (for definition) are under the ownership of its
Research and Development (R&D) agency/ies and shall likewise be granted Pioneer
Status in accordance with the provisions of the Omnibus Investments Code in case

produced and commercialized by a local shipbuilder.

SEC. 15. Incentives on SBSR Research and Development. -

1. Research and Development (R&D) initiatives of the Department of Science
and Technology (DOST) are exempted from the regulatory guidelines for ship
registration and classification provided that the plans are duly reviewed and

approved by the SBSR staff.

2. The prototype vessel produced through DOST-GIA (Department of Science

and Technology- Grants-in-Aid program) and tagged as marine research

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production may operate for a period of one (1) year as part of its performance

testing related to research, development, and demonstration.

3. MARINA-SBSR, through the cooperation of the DOST-GIA, will craft a
policy that will provide a clear adoption policy on the use of locally developed
R&D marine research production one (1) month after the completion of the

vessel

4, The technology adaptors (ship operators/manufacturers) that will adopt
locally developed R&D marine research through a duly notarized technology
transfer agreement/technology licensing are entitled to a research tax break

for a period of five (5) years.
CHAPTER VII

SBSR RESEARCH ¢

D DEVELOPMENT

SEC.16. - MARINA, in partnership with TESDA and CHED, shall spearhead
the development of training programs such as competency standards, training
regulations, competency assessment tools, and competency-based curiculum

development in the SBSR.
CHAPTER VIII

VESSELS OF THE ARMED FORCES OF THE PHILIPPINES AND OTHER
GOVERNMENT AGENCIES

SEC. 17. Armed Forces of the Philippines and Other Government vessels.

-Vessels built exclusively for the use of any branch of the Armed Forces of the

Philippines and other government vessels of the Philippines shall be treated as a sale

to the government and shall be exempt from national internal revenue taxes:

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Provided, That the vessels meet the standards and requirements of the specific
branch of the Armed Forces of the Philippines (AFP): Provided, further, That the
registered shipbuilding and ship repair entities is awarded or granted the Project or

commission in accordance with the rules and regulations for the bidding purposes.

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CHAPTER VIIL

FEES, FINES, AND PENALTIES

SEC.18. Fees, Fines and Penalties. - The MARINA, upon notice and

hearing and a determination of the existence of any breach or violation of the
provision of this Act or any rules and regulations issued pursuant thereto, shall have

the power and authority to:

1. Suspend or revoke any certificates of public convenience, license, permit,
accreditation, or other form of authority issued to any domestic
shipowner/operators who shall violate any provision of this Act or any rules
and regulations issued pursuant thereto or any condition imposed on such

certificate of public convenience, license, permit, or accreditation;

2. Impose a fine on domestic shipowner/operator who shall operate without a
valid certificate of public convenience, license, permit, accreditation, or other

form of authority;

3. Impose a fine on a domestic shipowner/operator in an amount to be
determined by the MARINA for refusing to accept or to carry passenger or
cargo without just cause or for engaging in any prejudicial, discriminatory, or

disadvantageous act towards any class of passengers or shippers;

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4. Impose a fine on any domestic shipowner/operator in an amount to be
determined by the MARINA or suspend, revoke the certificate of public
convenience of such domestic shipowner/operator or both, who shall fail to
meet the standards of such safety or who refuses to comply with or violates
safety regulations imposed by the MARINA or fails to maintain its vessel in

safe and serviceable condition;

5. Impose a fine on any domestic shipowner/operator in an amount to be
determined by the MARINA or impose such other penalty, including the
revocation of any certificate or license who fails to procure or renew required

insurance policies;

6. Impose a fine on any domestic shipowner/operator in an amount to be
determined by the MARINA or impose such penalty, including the revocation
of any certificate of license who fails to meet or maintain safe manning

requirements; and

7. Impose such other fines and penalties the MARINA may deem necessary

and appropriate in order to enforce the provision of this Act.
CHAPTER X
LOCAL GOVERNMENT ENGAGEMENT AND CONSULTATION

SEC.19. Consultation with Local Governments. -Prior to the establishment

of any shipyard or ship repair facility within the jurisdiction of a province in the
Philippines, MARINA alongside the shipbuilding or ship repair entity intending to

establish such facilities shall engage in consultations with the Provincial Governor

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1 and City/Municipal Mayor of the concerned local government unit(s). The purpose

2 of these consultations shall include, but are not limited to:

3 (a) Inform the local governments of the planned shipbuilding or ship repair
4 activities and their potential impacts on the local community and economy;
5 (b) Discuss and address any concerns or conditions that the local governments
6 may have regarding the establishment and operation of the shipyard or ship
7 repair facility;
8 (c) Explore opportunities for local workforce development, environmental
9 protection and other community benefits arising from the shipyard or ship
10 repair operations;
1 (d) Ensure that the establishment and operation of the shipyard or ship repair
12 facility are in alignment with the provincial development plans and policies,
13 and contribute positively to the local community.
14 CHAPTER XI
15 IMPLEMENTING RULES AND REGULATIONS
16 SEC. 20. Implementing Rules and Regulations. — The MARINA shall
v7 promulgate the necessary rules and regulations, and issuances for the
18 implementation of this Act, in coordination with the Department of Trade and
19 Industry (DTI), Department of Science and Technology (DOST), Department
20 of National Defense (DND), Department of the Interior and Local
21 Governments (DILG) and other relevant agencies within six (6) months from
22 its effectivity.

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The MARINA shall outline the procedural requirements, timelines and
mechanisms for consultation, as well as the roles and responsibilities of each

party involved.

MARINA shall likewise coordinate with the necessary administrative
agencies for the full implementation of this Act. Provided, that such rules and
regulations and issuances cannot amend or contradict the intent of any of the

provisions and purposes of this Act.

The MARINA shall convene every year and assess the need for any

amendments to the implementing rules and regulations.

CHAPTER XII
FINAL PROVISIONS.
SEC. 21. Separability Clause. - If, for any reason, any section, subsection,
sentence, clause, or term of this Act is held to be unconstitutional, such parts not

affected shall remain in full force and effect.

SEC. 22. Repealing Clause. - The provisions of Commonwealth Act No. 146,
insofar as the same applies to the operation, management control and regulation of
vessels, lines, ferries, watercraft and the like, as well as the provisions of Presidential
Decree (PD) No. 474, Executive Order No. 125/125A, Republic Act No. 9295 and
other laws, issuances, rules and regulations or parts thereof, which are inconsistent
with the provisions of this Act, are hereby repealed, amended, or modified

accordingly.

SEC. 23. Effect

ity. -This Act shall take effect after fifteen (15) days

following its publication in at least two (2) newspapers of general circulation.

Approved,

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