FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )
HOUSE OF REPRESENTATIVES

HOUSE BILLNO. 4743

Introduced by Representative Lorenzo R. ‘Tafiada IH

EXPLANATORY NOTE

Retired master mariners who have a breadth of knowledge and experience are those
who are tasked to become harbor pilots. This profession has been recognized as an
integral part of efficiency and safety of the securing and wharfing of vessels in our
harbors. Pilotage responds to the need of foreign master mariners in steeting their ships
in Philippine ports, which they are not familiar with. Undoubtedly, their role has
ensured the safe navigation of ships within our territorial waters, which, in tum,
contributes to our economy,

Mt present, we have no existing laws that cover pilotage services in congruence with
international standards and principles of the said occupation. Such is why Congress
needs to enact a comprehensive and integrated statute that aims to respond to the needs
of our harbor pilots. Furthermore, the Philippine Ports Authority (PPA), mandated with
regulatory powers over pilotage, has become partially irrelevant with the current context
of having various port authorities with their respective charters. These port authorities
distinct from the PPA also exercise regulatory control over harbor pilots. This is so, even
amidst the fact that they do not have the explicit legislative mandate to do such based on
their respective charters.

‘The main purpose of this proposed measure is to set the parameters of regulatory
control and the supervision of the pilotage profession. Moreover, this seeks to
Protessionalize the conduct of harbor pilots. All these shall be governed by the proposed
Pilotage Commission which shall rationalize policied and programs in relation to
pilotage services in order to not only streamline regulations, but also to ensure that
uniformity will be applied in accordance to the rights and welfare of harbor pilots and
the safety and security of our ports and territorial waters,

It is also the purpose of this proposed legislation to _ institutionalize prevailing
Jurisprudence on pilotage services, to rationalize the Pilotage fees and other charges
related to pilotage services such as tug assistance and overtime work during night-time
and Sundays and Holidays, to define Harbor Pilot's liability in the event of damage to


property or death and injury to persons caused by a vessel under pilotage, and to
streamline the legal relations and regulatory control on Harbor Pilots and pilotage
organizations in all ports of the country under the Pilotage Commission.

Furegoing considered , the passage of this Bill is earnestly requested.

TT.
Ro Joxcks
LOREW4O R. TANADA IH
Represittative
4" District, Quezon


FIFTEENTH CONGRESS OF TRE )
REPUBLIC OF THE PHILIPPINES d
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

¥ AAS
HOUSE BILL NO. 4243

Introduced by Representative Lorenzo R. Tafiada It

AN ACT
CREATING A HARBOR PILOTAGE COMMISSION, REGULATING HARBOR
PILOTAGE SERVICES AND THE CONDUCT OF HARBOR PILOTS IN ALL
PORTS IN THE PHILIPPINES AND FOR RELATED PURPOSES

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

SECTION 1. Title. - ‘This Act shall be known as the Pilotage Service Act of 2011.

SECTION 2. Scope. - ‘This Act shall apply to all harbor pilots and_pilotage
organizations providing pilotage services in all ports in the country, whether owned by
the government or private persons.

SECTION 3. Policy und Objectives, - It is hereby recognized by the State that pilotage
service plays a vital and complementary role in the efficient operation of ports and the
protection of marine environment. It is, therefore, the policy of the state through the
Pilotage Commission to regulate, and supervise pilotage services and the conduct of
pilots in all ports in the country to attain the following objectives:

(a) To ensure the safety of life at sea, port facilities, vessels, and their passengers and
cargoes;

(b) To ensure safe and efficient pilotage service at all times, the protection of marine
environment, and rationalize charges based on the provisions of Executive Order
1088.

(c) To promote and develop professionalism of Harbor Pilots,


SECTION 4, Definition of Terms. - For purpose of this Act, the words and phrases used
herein shall, unless the context indicates otherwise, mean ot be understood as follows:

{a)“Appointment” is a designation by the Pilotage Commission granted to a
harbor pilot to exercise his profession and render pilotage service in a particular
pilotage district.

(b) “Authority” refers to the Philippine Ports Authority in general and to such
other Port Authority, under a Special Charter, and granted with jurisdiction,
supervision and control over port operation and management at a specific port in
the Philippines.

1 "Harbor Pilot” is a Master Mariner, who is not part of the regular complement
ot the vessel, taken on board at a particular place, is in charge of its conduct and
navigation, and is duly licensed and appointed to act as such by the Pilotage
Commission to render pilotage service within a specific pilotage district.

id) “Non-Governmental Organization” (NGO) includes non-stock, non-profit
private organizations with proven track record or experience in the conservation,
management and protection of marine environment.

(e) “Pilotage Commission” refers to the Pilotage Commission created under this
Act.

(f) *Pilotage License” is the permit or license granted by Pilotage Commission to
a Master Mariner to exercise his profession and to render pilotage services in a
particular pilotage district.

(g) “Pilotage Organization” is an association of Harbor Pilots duly licensed and
appointed by the Pilotage Commission for a particular Harbor Pilotage District as
defined in this Act.

(h) “Pilotage Service” is the act of conducting, navigating or maneuvering a vessel
to/from berth or anchorage, along rivers, channels and estuaries, including all
related activities thereof.

(i) “United Harbor Pilots Association of the Philippines, Inc.” (UHPAP) is
the umbrella national organization of all harbor pilots of the country, duly
licensed and appointed to render pilotage services in their particular pilotage
district.

SECTION 5. The Pilotage Commission. - A Pilotage Commission is hereby created
consisting of Five (5) members, namely: the General Manager of the Philippine Ports

in)


Authority, the Commandant of the Philippine Coast Guard, the incumbent President of
the United Harbor Pilots Association, Inc., a representative of a National Association of
Philippine registered Shipowners who shall . be appointed by the President of the
Philippines and a representative of a recognized non-governmental organization (NGO)
likewise 10 be appointed by the President of the Philippines from among a list of
recommendees to be submitted by the aforesaid last two Sectors.

The PPA General Manager shall act as Chairman of the Pilotage Commission. The
inembers of the Commission shall be appointed by the President of the Philippines. The
Secretary of the Department of Transportation and Communications shall fix the
compensation of the members of the Pilotage Commissioners upon the
recommendation of the Pilotage Commission. The Pilotage Commission is hereby placed
der the administrative control and supervision of the Secretary of the Department of
‘ransportation and Communications.

‘The presence of three members of the Commission shall constitute a quorum for the
exercise of its functions and the affirmative vote of at least three members shall be a
valid and a binding act of the Commission. In case the chairman is absent in any
meeting, the members present shall elect a temporary chairman to preside over the
meeting,

Any provision of law to the contrary notwithstanding, the chairman and members of the
Commission shall receive a per diem for every meeting actually attended. The
Commission shail hold regular meetings once a month and in no case shall it hold more
than one special meeting in any month,

‘the per diem of the chairman and members of the Board shall be chargeable to the
Pilotage Safety Development Trust Fund provided in Section 18 of this Act.

SECTION 6. Powers and Duties of the Pilotage Commi
Commission shall have the following powers and funetions:

ion. - The Pilotage
(a) To exercise administrative control, regulation, and supervision on_pilotage and
the conduct of pilots in any Port District;

(b) Fo adopt rules and regulations necessary for the enforcement and administration
of pilotage and the conduct of pilots;

{c) To issue Harbor Pilot licenses to pilot applicants meeting the qualifications
herein set forth and such additional qualifications as may be determined from
time to time by the Pilotage Commission;

(d) To appoint duly licensed Harbor Pilots to conduct pilotage service;

(e) To establish a comprehensive training program to assist in the training and


evaluation of pilot applicants before final licensing, and formulate such other
additional training requirements for Harbor Pilots, including but not limited to a
program of continuing education on pilotage services;

tf To maintain a register of pilots, records of pilot accidents, and other history
pertinent to pilotage;

(g) To determine from time to time the number of pilots necessary to be licensed in
each Harbor Pilotage District in order ensure the operation of a safe, efficient,
and competent pilotage service in each district;

(h) To determine and fix uniform pilotage fees for pilotage services, and review the
same every five (5) years thereafter; and

(i) To conduct investigations and render a report involving any marine casualty of
vessels under pilotage, and to submit recommendations to the Secretary of
Transportation and Communications and to Congress any measure to ensure the
safety of life at sea, property and the protection of environment.

The Chairman or any member of the Pilotage Commission in his absence, shall have
power to administer ouths in any matter before the Commission for consideration or
inquiry and to issue subpoenas requiting witnesses to appear before the Commission.
Such subpoenas shall be signed by a member of the Commission, A witness willfully
disobeving such subpoena served upon the witness shall be liable for contempt to be filed
with the appropriate court of law.

SECTION 7. Power to Define Pilotage Services and Prescribe Rates. - The Pilotage
Commission shall have the power to define pilotage services, necessary tug assistance
and other related requirements subject to appropriate consultations with the
representatives of the United Harbor Pilots’ Association of the Philippines and the ship
agents or ship owners of vessels calling at ports. It shall also have the power to
determine, establish and adjust the prevailing rates upward for said services based on
the present individual fees and charges provided under Executive Order No. 1088 as
well as the generally accepted international rates on pilotage services. The factors to be
considered in the adjustment of rates shall include, among others tonnage, draft or
length of vessels, peculiarity and characteristics of the harbor, port and distance
covered by the service as well as pilotage services at nighttime, and during Sundays and
holidays. The rates thus determined shall take effect fifteen (15) days after publication
inv any newspaper of general circulation.

Unpaid Pilotage Fees shall be considered a maritime lien on the vessel in which pilotage
services as defined under this Act are rendered.

SECTION 8. Compulsory Pilotage. - Pilotage services shall be compulsory in
government and private wharves, berths, piers or anchorage. Every vessel engaged in


foreign trade shall be always under compulsory pilotage. Pilotage for vessels engaged in
domestic trade shall also be compulsory except those engaged in domestic regular ferry
services. including fast craft ferry vessels, not over 500 gross tons.

SECTION 9. Establishment of Harbor Pilotage District. - There shal! be Twenty-Six
(20? Harbor Pilotage Districts for the entire Country, namel,
(a) For Luzon: Manila, Aparri, Batangas, San Fernando, Masinloc-Sta.Cruz-Sual,
Siain-Hondagua & Casiguran, Subic, Bicol Region, Puerto Princesa;
(b) For Visayas: Cebu, Toile, North Panay, Pulupandan, Tacloban, Catbalogan,
Tagbilaran, Dumaguete, Maasin-Surigao;

a

(c) For Mindanao: Davao, Zamboanga, Jolo, Masao, ligan, Cagayan De Oro, General
Santos (Dadiangas), Polloe.

‘The Pilotage Commission may from to time inerease or decrease the number Pilotage
Districts as well as the number of Harbor Pilots thereof upon prior consultation and
with the conformity of the United Harbor Pilot Association and the concerned Harbor
Pilotage District. The number of pilots for each pilotage district shall depend on.
economic viability and the need of the service.

‘The prevailing territorial jurisdiction of each Harbor Pilotage District and the number of
existing Harbor Pilots per District shall remain unless otherwise changed by the Pilotage
Commission pursuant to this Act.

SECTION 10. Qualification of a Harbor Pitot. - No person shall be appointed as
Harbor Pilot unless he is a Filipino citizen, of sound physical and mental condition,
good moral character and has been a Master Mariner on board sea-going vessels of not
less than 5,000 gross tons for at least § years.

No person who is above fifty-five (55) years of age shall be appointed as Harbor Pilot.

SECTION 11. Appointment of Harbor Pilots. - The Pilotage Commission in
consultation and coordination with the Philippine Ports Authority, the United Harbor
Pilots’ Association of the Philippines and the pilot association concerned shall appoint
the harbor pilot in each particular pilotage district.

Upon certification of the Chief Pilot of a vacancy in his Harbor Pilotage District, the
Pilotage Cousmission shall cause the publication of the vacancy for the said Harbor
Pilotage District at least once in a newspaper of general circulation.

Master Mariners who ate qualified for evaluation and licensing as Harbor Pilot shall
submit their applications at the Harbor Pilotage District coneerned. After proper
evaluation and assessment, the Chief Pilot and the Harbor Pilotage District concerned
shall have the full discretion to choose whom to undergo on the job training from among


the most qualified candidates for Harbor Pilot.

Harbor pilot must undergo actual and on,the job training for at least ninety (90)
s under the direct supervision of regular pilots of the Harbor Pilotage District and
shall only be appointed by the Pilotage Commission upon certification of the chief pilot
of the district of his competency,

The Pitotage Commission shall simultaneously issue the corresponding Harbor Pilotage
License upon his appointment as the Harbor Pilot in a particular Harbor Pilotage
District.

The appointed pilot shall serve until he reaches the age of seventy (70) years unless he
becomes incapacitated to perform his duties and responsibilities by reason of illness or
injury, Each Pilot shall undergo an annual physical and medical examination by any
physician duly accredited by the Department of Health to determine his fitness to
continue discharging his duties as Harbor Pilot.

The appointment of harbor pilots shall not create an employer-employee relationship
between the harbor pilot and the Pilotage Commission or the Authority. Any Harbor
Piiot in a particular pilotage district shall be subject to cancellation or suspension for
cause by the Pilotage Commission, as provided in Section 14 hereof, upon the
recommendation of the Chief Pilot of the said Pilotage District and the United Harbor
Pilots’ Association of the Philippines, and after due process.

The Pilotage Commission shall automatically issue a Pilot License and Appointment to
all existing, incumbent and active Harbor Pilots to perform pilotage services at their
respective individual Harbor Pilotage District wherein he belongs at the time of the
passage of this Act.

SECTION 12. Compulsory Retirement of Pilots. - Harbor pilots appointed under this
Act shall be considered retired at the age of seventy (70) years,

SECTION 13. Establishment of a Pilotage Organization. - Appointed harbor pilots in a
pilotage district shall register and organize themselves into a Pilotage Organization, and
must be members in good standing of the said Pilotage Organization for the pilotage
District as well as with the United Harbor Pilot Association of the Philippines, Inc.

SECTION 14. Harbor Pilotage District Organization. - There shall only be one Harbor
Pilotage District Organization for every Harbor Pilotage District. Each Harbor Pilotage
District Organization shal! submit to the Pilotage Commission its Articles of
Incorporation and By Laws as well as the list of its officers and members, all of whom
are duly appointed Harbor Pilots for the particular pilotage District.

The Pilotage Organizations presently organized and constituted for the specific pilotage
District shall continue to act as a pilotage organization under this Act. It is the obligation


< wach pilotage organization to elect and submit to the Pilotage Commission the name
of one of its member to act as the Chief Pilot for the pilotage district.

All Harbor Pilotage District Organization and their active and practicing Licensed
Harbor Pilot members must be a member of the Umbrella Organization for Harbor
Pilots. which for purposes of this Act shall be the United Harbor Pilots’ Association of
the Philippines, Inc.

SECTION 15. Suspension or Cancellation of Appointment. - The appointment of_a
harbor pilot, after due process and investigation, may be suspended or cancelled by the
Pilotage Commission for the following causes:

(a) Refusal or failure to render pilotage service without just or reasonable cause;

tb) Gross nm
port facil

Jigence, incompetence or inefficiency which compromises the safety of
es, vessels and their passengers and cargoes;

(c) Charging rates not agreed by the parties or authorized or prescribed by the
Pilotage Commission;

1d) Involvement or participation in smuggling or related activities through its harbor
pilots, members or officers;

tc) Failure to post the required performance bond or indemnity insurance;

{f) Refusal to submit to the authority of the Pilotage Commission without justifiable
cause;

(8) Intoxication and use of prohibited drugs at the time and during the performance
of his duties as Harbor Pilot;

(h) Use and submission of any false or forged documents for the purpose of
obtaining the Harbor Pilot License and/or Appointment;

Li) Acts prejudicial to the professional Code of Conduct for Harbor Pilots; and

j) Physical or mental impediment to render pilotage services as may be determined
by a physician accredited by the Department of Health,

SECTION 16. Administrative Sanctions. - Upon deliberate and unjustified refusal or
failure of a harbor pilot of the pilotage organization to perform services, the Pilotage
Commission upon recommendation of the Chief Pilot may order other duly appointed
harbor pilots of the same pilotage organization to render such required services without
prejudice to suspension or removal of such pilot as provided in this Act, after observance
of due process.


SECTION 17, |.imitation of Pilot’s Liability. - A Harbor pilot licensed to act as such by
the Pilotage Commission and authorized to provide pilotage services in the different
Harbor Pilotage Districts shall not be liable for damages in excess of the amount of Five
Hundred Thousand Pesos (P500,000.00) for damages or loss occasioned by a pilot's
errors. omissions, fault, or neglect in the performance of pilotage services, except as
may arise by reason of his willful misconduct or gross negligence.

Each Harbor Pilots shall post an Indemnity Insurance Bond from the Government
Service Insurance System (GSIS) or from such reputable Insurance Company acceptable
to the Pilotage Commission, to cover the limit of his liability or for such amount as may
be required by the Commission after consultation with the United Harbor Pilot
Association of the Philippines.

‘The Harbor Pilot shall be free from responsibility for damage, injury or death arising
trom the negligence of the Master and crew of the vessel under pilotage,
unseaworthiness of the vessel, breakdown of its machineries and equipment, force
majeure or fortuitous event.

Upon actual boarding a vessel to provide pilotage services, that pilot becomes a servant
ot the vessel and its owner and operator. Nothing in this section exempts the vessel, its
owner, or its operator from liability for damage or loss occasioned by that ship to a
person or property on the ground that (a) the ship was piloted by a duly licensed Pilot,
or (b) the damage or loss was occasioned by the error, omission, fault, or neglect of a
pilot duly licensed by the Commission.

The safety and protection of human life and property in maritime commerce under
compulsory pilotage is declared to be in the public interest, and the limitation and
regulation of the liability of Harbor pilots licensed and authorized under this Act to
provide harbor pilotage services, is necessary to such safety and protection and is
deemed to be in the public interest.

The Harbor Pilot on board a vessel under pilotage service shall serve as adviser of the
Master during and at the time of his engagement in the conduct and maneuver of the
vessel. ‘The Master of the vessel, its owners and agents are not relieved of responsibility
tur any loss or damage caused by or to the vessel even while the vessel is under
compulsory pilotage.

SECTION 18. Marine Accident and Casualty. - In the event of a marine accident and
casualty in which a vessel under pilotage is involved, the Pilotage Commission shall
immediately conduct its own enquiry and investigation of the incident, and shall secure
the necessary data, information and documents, needed in the further proceedings of
the investigation including depositions of witnesses, before a vessel involved in the
incident is eleared for departure from port or place of incident.


SECTION 19.  Pilotage Safety Development Trust Fund. - There shall be an
independent and separate trust fund established under this Act, to be administered by
the Pilotage Commission in accordance with existing government auditing rules and
regulations.

An amount equivalent to Five (5% ) of the gross amount of Pilotage Fees paid to the
Harbor Pilots for rendering pilotage services shall be collected to establish the Pilotage
Safety Development Trust Fund , which shall be exclusively and solely be disbursed and.
utilized for the following purposes:
1a) Installation and/or upgrading of Pilotage equipment and facilities to conform
with international safety standards for navigation;

{b) Developmental Loans by way of Financial Assistance to the needs of the different
Harbor Pilotage Organizations in the several Harbor Pilotage Districts for the
acquisition of capital equipment necessary to render pilotage secvices in their
respective Harbor Pilotage Districts;

{c) Such other projects for the promotion and development of maritime safety
involving pilotage services as well as for the protection of marine environment;

(d) Per Diems and administrative expenses of the Pilotage Commission.

The Trust Fund shall be deposited at all times in only one authorized government
depository bank as determined by the Pilotage Commission. Any and all interests that
shall accrue therefrom shall form part of the same fund.

‘The Pilotage Commission shall render a quarterly report to the Secretary of
‘Transportation and Communications of the status of the Trust Fund, including detailed
disbursements therefrom.

‘There shall be no disbursement from the Trust Fund unless they are made pursuant to
the program of expenditures duly approved by the Pilotage Commission.

No other charges ot imposition by way of government share shall be levied on the gross
income of Harbor Pilots derived from rendering pilotage services and in the exercise of
their profession as Harbor Pilots.

SECTION 20. Operations and Funding, - To carry out the provisions of this Act, the
United Harbor Pilots Association of the Philippines, Inc. shall initally shoulder the
amount of two million pesos. Thereafter, the Pilotage Safety Development Trust Fund
shall finance the cost of the administrative operations of the Pilotage Commission as
well as defray such projects that the Pilotage Commission shall undertake pursuant to
this Act,


SECTION 21. Penal Provision. - A fine of not less than Twenty thousand pesos
{P20,000.00) nor more than Two Hundred Thousand Pesos (P200,000.00) or
imprisonment for a period of not less than one (1) year nor more than six (6) years or
both such fine and imprisonment, at the discretion of the court, shall be imposed upon:

{a) Any person who shall render pilotage services without license and appointment
by the Pilotage Commission;

(>) Anv person who represents himself as a Harbor Pilot for a particular Pilotage
District without being a member of the Pilotage Organization for the said
particular Harbor Pilotage District;

{c) Any person who shall give any false or forged documents for the purpose of
obtaining the Harbor Pilot License and/or Appointment;

(a) Any person who shall use an expired, revoked and/or suspended Harbor Pilot
License or Appointment to perform pilotage services;

{c) Any person who shall assume, use or advertise the title of a Harbor Pilot under
his name, or any description to convey the impression that he is an active and
duly Licensed Itarbor Pilot without holding a valid Harbor Pilot License and
Appointment issued by the Pilotage Commission,

SECTION 22. Implementing Rules and Regulations. - The Pilotage Commission is
hereby authorized to promulgate the appropriate rules and regulation based on
admiralty laws and practices for the proper implementation of this Act, in consultation
with the United Harbor Pilots’ Association of the Philippines, and with the
representatives of the Philippine Registered shipping companies.

SECTION 23. Repeating Clause. - All other laws, decrees, orders, rules and regulations
or parts thereof inconsistent with or contrary to the provisions of this Act are hereby
repealed or modified accordingly,

SECTION 24. Transitory Provision. - The existing Port Authority granted by law to
exercise supervision and regulation of Pilotage and the conduct of Harbor Pilots shall
continue to function in the interim until such time that the Pilotage Commission shall be
vonstituted pursuant to this Act.

SECTION 25. Separability Clause. - If any part or provision of this Act is declared as
unconstitutional or invalid by a court of competent jurisdiction, the other parts or
provisions, which are not affected thereby, shall continue to be in full force and effect.

SECTION 26. Effectivity Clause, - This Act shall take effect fifteen (15) days after its
publication in at least two (2) national newspaper of general circulation.

Approved,