25 Nov 20%d:
OF THE REPUBLIC )
) Spry

)

Introduced by ANGKLA Part

st Representative JESULITO A. MANALO:

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT
NO. 9295, ENTITLED "DOMESTIC SHIPPING DEVELOPMENT ACT
OF 2004”

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

EXPLANATORY NOTE

All over the globe, it remains an uncontroverted fact that trade and
commerce are fueled by the use of matitime transport. ‘Thusly, with the World
‘Trade Organization records yielding that the dollar value of the world’s
merchandise exports is equivalent to US§18.3 ‘Trillion, a substantial portion or
90% thereof is still facilitated through shipping,

Even domestically, shipment of cargoes and tra
various parts of our country still heavily rely on the seafaring system. ‘This is
because, blatantly, seafaring is the most reasonable and practical mode of transport
given our nation’s archipelagic structure. Considering the pivotal role that
maritime transport plays in the Filipinos’ lives, and on a daily basis, it is equally
crucial for government to ensure that all vessels, particularly our own domestic
fleets plying our internal waters endure the tests of adequacy, reliability, stability,
and of course, safety at all times

sengers in the

In many parts of the world, including the Philippines, it has long been an
accepted method and procedure that countries relegate the technical duties of


inspecting vessels to classification societies, which are non-governmental
organizations, to establish and maintain technical standards for the construction
and operation of ships. These societies, which ideally are experts in this field, are
entrusted to validate that construction of vessels follow the appropriate parameters
of safety. Throughout the life of the ships, the class societies are likewise expected
to perform regular surveys to ensure the vessels’ continuous compliance with such
standards, ‘They hire classification surveyors who are designated to inspect vessels,
determining whether these vessels, their components and machineries are built and
periodically supervised and maintained according to the standards required for
their class. Classing of vessels is then a quasi-public function involving the
promotion of safety of life, property and the environment at sea. It is not a
commercial undertaking but, indubitably, a public service

Unfortunately however, with our country presently having a total of seven
(7) local classification societies accredited by the Maritime Industry Authority
(MARINA), the rationale behind designating classification societies to rigidly
monitor the reliability of domestic ships had been compromised. The cut-throat
competition among these societies has contributed more detriment than good to
public health, safety and the marine environment, Such competition has nurtured
a negative safety environment, with ship owners escaping critical repairs and
maintenance by just changing class, relying on lower quality of surveyors due to
sub-standard wages and lack of training funding, Lower technical rules and
standards are set by some of these societies, apparently due to lack of research and
development funds. With the present situation we face, we have lost sight of the
important reality that maritime safety should be dealt only with the highest regards.

On the other hand, all countries in the world have adopted the policy of
having a single national classification society. In fact, some have even been
stablished and supported by their own governments just like in Korea and
Indonesia, where most safety functions were delegated and privatized to the
national class. With the ASEAN integration, the Philippines should be ready to
compete with neighboring countries, which have strong national classification
societies. We must cooperate with them regionally on the same high level of
standards on maritime safety. We cannot be a true global maritime player if we are
content with mere sub-standard and fragmentized classification regime

As of the last update from the MARINA, our recorded maritime disasters
for the last 5 years sum up to 33 incidents. We cannot evade the sad fact that one
of the major factors causing our sea mishaps occur by reason of the obsolete and
ineffective domestic fleets that we have. While this can somehow be addressed


through more stringent monitoring, inspection and classification of vessels by the
classification societies, the lack of candor, stability, and proficiency in performing
such responsibilities by some of these societies only add up to the problem,

Our maritime regulatory agency, MARINA itself, acknowledges the
necessity and thus is convinced on the merits of adopting a single classification
society for domestic vessels. Thus, MARINA issued its Circular No. 2009 — 24
Series of 2009 on December, 2009 regarding the “Accreditation and/or
Authorization of Organizations for Purposes of Classification of Philippine-
Registered Ships in the Domestic ‘Trade and Supervision and Audit of Accredited
Organizations”. In part it was stipulated therein that:

“Pursuant to the pertinent provisions of PD 474, BO 125 and
R.A, 9295, as amended, and International Maritime Organization
Resolution A.739(18), and A.789(19), the following guidelines are
promulgated to govern the accreditation and/or authorization of
ship classification societies and other entities intending to
establish a classification society to cater to the needs of the
Philippine domestic fleet.

Section 1, OBJECTIVE:

1. To authorize IACS members and other reputable
International Classification Organizations. to perform
classification of ships and High Speed Craft in the domestic trade.
2, To accredit only one (1) local classification
organization to cater to the classification requirements of
ships in the domestic trade.

3. To institutionalize a Philippine Government (PG)
Classification System to cater to the classification requirements
for non convention wooden hulled ships and ships 35 G'' and
below.

4. To set up guidelines and procedures in the supervision and
audit of all Administration accredited and/or authorized
organizations performing classification work for ships.

5. To identify responsibilities of accredited and/or authorized
classification organization performing classification.” (Emphs
added)



‘The implementation of said circular however was suspended by reason of
strong oppositions from very few stakeholders who appear to be adversely
affected by the circular, thus sacrificing the welfare of a greater number of
individuals and enterprise, both in and outside the maritime industry. ‘To date, the
same Cizcular has not been revived.

‘hus, this proposed measure is necessary to well assist MARINA in fully
implementing a positive and dynamic safety regime best left to technical experts in
the classification and inspection of our domestic vessels. This legislation shall
intensify our policies and further develop the existing framework to foster a moze
tainable and permanent system for maritime safety.

( JESULITO AMANALO
\ Party-list Representative
“ ANGKLA



SIXTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES )
Second Regular Session )

HOUSE OF REPRE
HOUSE BIL

Introduced by ANGKLA Party-list Representative JESULITO A. MANALO

AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT
NO, 9295, ENTITLED "DOMESTIC SHIPPING DEVELOPMENT ACT
OF 2004”

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

SECTION 1. Sec 22 of Republic Act No, 92!

‘hall be read as follows:

. 22, Classification of Vessels in the Domestic ‘Linde. - All vessels,
whether newly built or previously owned, which are acquired on or after the
eficctivity of this Act shall be classed by a government accredited or authorized
classification society on the date of acquisition prior to their operation in the
domestic trade.

For this purpose, MARINA shall accredit only one (1) local class
society that shall cater to the classification requirements of ships in the domestic
trade. ‘Thus, other organizations without a certificate of accreditation or
authorization duly issued by MARINA shall not be authorized to undertake
classification service of any domestic fleet.

MARINA shall have the sole authority and prerogative to set the policies,
rules, and guidelines to be followed in the accreditation of such local classification
society. In the event that MARINA finds that the accredited local classification
s not in compliance with its policies, rules, and guidelines, MARINA has
the discretion to cancel and transfer such accreditation or authorization wo any



qualified local classification society, as it may deem fit, provided that there shall
remain merely one accredited classification society at any given time.

SECTION 2. Repealing Clause. — All laws, decrees, executive orders or rules and
regulations inconsistent with this Act are hereby repealed, amended or modified
accordingly.

SECTION 3. Bffectivity. - ‘This Act shall take effect after fifteen (15) days
following its publication in at least two (2) newspapers of general circulation.

Approved,