Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. D109

Introduced by Honorable MARK A. VILLAR

AN ACT
EXEMPTING THE CARRIAGE OF CONTAINER VANS FROM THE
PROVISIONS OF SECTION 1009 OF PRESIDENTIAL DECREE NO.
1464, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS
CODE OF 1978, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Heeding the call of the President in his State of the Nation Address, and of
various stakeholders, and backed by studies, “to foster greater competition and to
lower the cost of transportation for our agricultural sector and other industries," this
proposed bill seeks to exempt the carriage of container vans from the provisions of
Section 1009 of Presidential Decree 1474 otherwise known as the Tariff and
Customs Code of 1978, and for Other Purposes”. In other words, the measure aims
to liberalize the entry of foreign vessels to assist the importers and exporters in
enhancing their competitiveness in light of intensifying international trade and to
lower the cost of shipping export cargoes from Philippine ports to international ports
and import cargoes from international ports.

Under the bill, liberalization means that the right to engage in carriage of
cargoes shall not be limited to vessels carrying a Certificate of Philippine Registry,
Provided that said cargoes fall within the purview of import and export cargoes.

Various studies showed that the high cost of domestic shipping services is
attributed to the lack of meaningful competition in the industry. In fact, recent data
from the Maritime Transport Authority (MARINA) provide evidence of concentration
of domestic operation in the hands of few players, and this lack of competition is


exacerbated by a restrictive cabotage policy as foreign vessels are not allowed to
engage in inter-island shipping

Thus, by liberalizing the carriage of cargoes by foreign vessels within
Philippine waters, it will ultimately benefit the Filipino people.

In view of the foregoing, the enactment of this bill is earnestly sought.

A

MARK A. VILLAR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 51.09

Introduced by Honorable MARK A. VILLAR

AN ACT
EXEMPTING THE CARRIAGE OF CONTAINER VANS FROM
THE PROVISIONS OF SECTION 1009 OF PRESIDENTIAL
DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF
AND CUSTOMS CODE OF 1978, AND FOR OTHER PURPOSES

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

SECTION 1. Declaration of Policy. - It is the policy of the State to;

a. To assist importers and exporters in enhancing their competitiveness in
the light of intensifying international trade; and;

b. To lower the cost of shipping containerized export cargoes from
Philippine ports to international ports and containerized import cargoes
from international ports

SEC. 2. Definition of Terms. - For the purposes of this bill, these terms.
are defined as follows:

a. "Container Van" shall refer to a standardized reusable steel box used
for the safe. efficient and secure storage and movement of materials
and products within an intermodal freight transport system where the


cargo carried in the container van can be moved from one mode of
transport to another without having to unload or reload the contents of
such container van;

s

"Domestic port" shall refer to any Philippine seaport;

c. “Domestic cargo” shall refer to goods, articles, commodities or
merchandise which are intended to be shipped from one domestic port
to another domestic port, even if in the carriage of such cargo, there
may be an intervening foreign port;

d. "Export cargo" shall refer to goods, articles, commodities or
merchandise carried in container vans of foreign vessels and duly
declared by the Bureau of Customs at the port of origin as cargoes for
shipment to a port outside the jurisdiction of the Philippines;

e. "Foreign cargo” shall refer to import or export cargo carried in a
container van of a foreign vessel;

f. "Foreign container van" shall refer to container van whether empty or
loaded with import or export cargo which belongs to a foreign vessel;

g. “Foreign port" shall refer to any seaport outside the jurisdiction of the
Philippines;

h. "Foreign vessel” shall refer to a ship registered or documented in a flag
registry other than that of a Philippines; and

i. "Import cargo" shall refer to goods, articles, commodities or
merchandise of foreign origin carried in a container van of a foreign
vessel which is intended to be cleared by the Bureau of Customs for
delivery to the port of final destination within the jurisdiction of the
Philippines.

SEC. 3. Scope. - This Act shall be apply exclusively to a foreign container
van and to import and export articles or cargoes carried in such foreign
container van by a foreign vessel

SEC. 4. Carriage of a foreign container van or foreign cargo by a
foreign vessel. - This Act shall allow the following circumstances:

a. A foreign container van carrying foreign cargo arriving from a foreign
port on a foreign vessel, such foreign vessel, after being cleared at its
port of entry, shall be allowed to carry the foreign container van to its
domestic port of final destination;


A foreign container van carrying foreign cargo arriving from a foreign
port on a foreign vessel may be carried by another foreign vessel calling
at the same port of entry to the domestic port of final destination of such
foreign cargo;

. A foreign container van carrying foreign cargo intended for export may

be carried on a foreign vessel from its domestic port of origin through
another Philippine port to its foreign port of final destination;

|. A foreign container van carrying foreign cargo intended for export may

be, transshipped in any foreign vessel from its domestic port of origin
through a domestic transshipment port and transferred at such domestic
transshipment port to another foreign vessel which shall carry it to its
foreign port of final destination;

. An empty foreign container van going to or coming from any domestic

port or going to or coming from a foreign port; and

An empty foreign container van being transshipped between two
Philippine domestic ports.

A foreign vessel engaged in any of the foregoing instances shall also be
allowed to carry such other cargo to and from any of the domestic ports
where the foreign vessel loads or unloads its foreign cargo: Provided,
that one of the domestic ports where such foreign vessel is coming to or
going from is either Port of Subic or Port of Batangas.

SEC. 5. Authority of the Commissioner of Customs. - The
Commissioner of Customs, upon such reasonable conditions as he may
impose, may do the following acts:

a

Clear any foreign vessel for any domestic port and authorize the
conveyance therein of a foreign container van containing foreign cargo
bought from abroad upon such foreign vessel;

Allow a foreign vessel to take a foreign container van containing import
or export articles or cargo at any Philippine port and convey the same
upon such foreign vessel to a foreign port;

. Authorize the transshipment of such foreign cargo intended for export

through another Philippine port of its conveyance by another foreign
vessel to the cargo's foreign port of final destination;

|. Take measures to ensure that no foreign vessel carries any domestic

cargo; and

. Take measures to address illegal activities, including smuggling.


SEC. 6. Application of the Carriage of Goods by Sea Act. - Carriage
conducted in accordance with this law shall be govemed by Commonwealth
Act No. 65, otherwise known as the Carriage of Goods by Sea Act with
respect to the liability of the carrier for the loss of, or damage to, goods
carried

SEC. 7. Carriage by foreign vessels neither a public service nor
common carriage. - Foreign vessels engaging in carriage conducted in
accordance with this law shall not be considered common carriers as provided
in the Civil Code (Republic Act No. 386). Neither shall such foreign vessels be
considered as offering a public service and thus shall fall outside the coverage
of the Domestic Shipping Development Act (Republic Act No. 9295)

SEC. 8. Implementing Rules and Regulations. - Within sixty (60) days
from the approval of this Act, the Bureau of Custom with the supervision of the
Department of Finance, and in coordination with the Department of
Transportation and Communications shall promulgate such rules and
regulations necessary for the effective implementation of this Act.

SEC. 9. Separability Clause. - If any provision of this Act is subsequently
declared invalid or unconstitutional, other provisions hereof which are not
affected thereby shall remain in full force and effect.

SEC. 10. Repealing Clause. - All laws, decrees, orders, rules and
regulations, and other issuances, or parts thereof, inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 11. Effectivity Clause. -This Act shall take fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved,