Republic of the Philippines

HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

Fiftoenth Congress
First Regular Session

HOUSE BIEL NO.__4652_

Introduced by Honorable Roger Gaviola Mercado

EXPLANATORY NOTE

Pilotage has been a recognized protession of seasoned Master Mariners after
they have opted to retire from active service in merchant ships just so that they may
be near their family and at the same time practice their profession. In the process these
Harbor Pilots have provided efficient and safe pilotage services in the berthing of
vessels, and in conducting vessels along channels and bays unfamiliar to foreign
Master on board ocean going vessels calting on Philippine Ports. (heir contribution in
the development of the country’s economy by way of safe navigation within
Philippine territorial waters can not be underestimated.

‘The Philippines has yet to pass a Pitotage Act which provides for an integrated
and comprehensive legislation on pilotage in accordance with the generally accepted
international principles of pilowage, and which is highly responsive to changing needs
and requirements affecting the Harbor Pilots and their pilotage services.

Presidential Dectee 857 which granted the Philippine Ports Authority (PPA)
regulatory powers over Pilotage has already become unresponsive to the declared
national policy of uniformity on the regulatory control of pilotage matters by the
establishment of various Port Authorities under Special Charter/s separate and
Distinct from the PPA, and when these Port Authorities have assumed upon
themselves regulatory control over Pilots in their respective territorial areas even
without express legislative mandate in their respective Special Charter/s. It is thus the
purpose of this Act to place regulatory contro! and supervision of pilotage and the
conduct of Harbor Pilots under a Pitotage Commission to rationalize regulatory
poticies on pilotage services in the interest of uniformity and general application of all
pilotage administrative policies in alt ports of the Philippines.


Its 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.

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

ROGER GAVIOLA MERCADO



Ropgblic ofthe Philippines
HOUSE or REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session

HOUSE BILL No__4652

Introduced by Honorable Roger Gaviola Mercado

AN ACT CREATING A HARBOR PILOTAGE COMMISSION,
REGULATING HARBOR, PILOTAGE SERVICES AND THE
CONDUCT OF HAI 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 barbor pilots and pilotage
organizations providing pilotage services in all ports in the country, whether owned by
the government or private persons. }

SECTION 3. Policy and Objectives- 11 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:

To ensure the safety of life a1 sea, port facilities, vessels. and their
passengers and cargoes;

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.


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 comext indicates otherwise, mean or be understood
as follows:

“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

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

“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. ¢

“Harbor Pilot” is a Master Mariner, who is not part of the regular complement of 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.

“Pilotage Organization” is an association of Harbor Pilots duly licensed and appoimed
by the Pilotage Commission for a pasticular Harbor Pilotage District as defined in this
Act.

“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.

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

"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.

“United Harbor Pilots Association of the Philippines, Jac.” ((/HPAP) is the umbrella
ational 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
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-goveramental organization (NGO)
likewise to be appointed by the President of the Philippines from among a list of
Tecommendees to be submitted by the aforesaid last two Sectors.

The PPA General Manager shail act as Chairman of the Pilotage Commission.
‘The members 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 under the
administrative control and supervision of the Secretary of the Department of
Transportation and Communications.

‘The presence of three of the Commission shal! 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 shail receive a per diem for every meeting actually attended. The
Commission shall 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 10
the Pilotage Safety Development Trust Fund provided in Section 18 of this Act.

Powers and Duties- The Pilotage Commission shall have the following powers
and functions :

(a) To exercise administrative ato, regulation, and supervision on pilotage
and the conduct of pilots in any Port District.

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

(€) 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.

(©) To Establish a comprehensive training program to assist in the taining 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;


ws

() To Maintain a register of pilots, records of pilot accidents, and other
history pertinent to pilotage;

{g) To Determine from time to Gme 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

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

SECTION 6. 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 ¢! under Executive Order No. 1088 as well as
the generally accepted internati 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 curing Sundays and holidays. The
rates thus determined shall take effect fifteen (15) days after publication in 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 7. 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 not over 500 gross tons

SECTION 8. Establishment of Harbor Pilotage district- , There shall be Twenty
Six [26] Harbor Pilotage Districts for the entire Country, namely-


FOR LUZON-
Manila, Aparri, Batangas, San Femando, Masinloc-Sta.Cruz-Sual,
Siain-Hondagua & Casiguran, Subic, Bicol Region, Pucrto Princesa

VISAYAS .
‘Cebu, floilo, North Banay, Pulupandan, Tacloban, Catbalogan, Tagbilaran.
Dumaguete, Maasin-Surigao

MINDANAO
Davao, Zamboanga, Jolo, Masao, lligan, Cagayan De Oro,
General Santos (Dadiangas), Polloc.

The Pilotage Commission may from 10 time increase 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 concemed Harbor
Pilotage District, The number of pilots for cach pilotage district shall depend on
economic viability and the need of the service.

‘The prevailing territorial jurisdiction of cach 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 9. 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 5 years.

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

SECTION 10. 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 Clef Pilot of a vacancy in his Harbor Pilotage District.
the Pilotage Commission 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 are qualified for evaluation and licensing as Harbor Pilot
shall submit their applications at the Harbor Pilotage District concerned. Atter proper
evaiuation and assessment, the Chief Pilot and the Harbor Pilotage District concemed
shall have the full discretion to choose whom to undergo on the job training from among
the most qualified candidates for Harbor Pilot.


Every Harbor pilot must undergo actual and on the job training for at least ninety
(90) days 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 Pilotage Commission shall simultaneously issue the comesponding Harbor
Pilotage License upon his appointment as the Harbor Pilot in a particuiar 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 wo
continue discharging his duties as Harbor Pilot.

The appointment of barbor pilots shall not create an employer-employee
relationship between the harbor pilot and the Pilotage Commission or the Authority. Any
Harbor Pilot in a particular pilotage @istrict 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 pilouge
services at their respective individual Harbor Pilotage District wherein he belongs at the
lime of the passage of this Act.

SECTION 11. Compulsory Retirement of Pilots- Harbor pilots appointed under
this Act shall be considered retired at the age of seventy (70) years.

SECTION 12. Establishment of a Pilotage Organization- Appointes harbor pilots
in a pilotage district shall register and organize themselves into 4 Pilotage Organization.
and must be members in good of the said Pilotage Organization for the pilotage
District as well as with the United Harbor Pilot Association of the Philippines, Inc.

SECTION 13. Harbor Pilotage District Organization. ‘There shall only be one
Harbor Pilotage District Organization for every Harbor Pilotage District. Each Harbor
Pilotage District Organization shall 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 shalt continue to act as a pilotage organization under this Act. It is the
obligation of each 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 beythe United Harbor Pilots’ Association of the
Philippines, Inc.

SECTION 14. Suspension or Cancellation of Appointment- The appointment of
a harbor pilot, after due process and inveggeation, may be suspended or cancelled by the
Pilotage Comimission for the following cases:

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

(2) Gross negligence, incompetence or inefficiency which compromises
the safety of port facilities, vessels and their passengers and cargoes;

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

(4) fovolvement or participation in smuggling or related activities through
its harbor pilots, members or officers,

(5) Failure to post the required bond or indemnity insurance;

{6) Refusal to submit to the authority of the Pilotage Commission without
justifiable cause.

(7) lntoxication and use of prohibited drugs at the time and during the
performance of his duties as Harbor Pilot.

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

(9) Acts prejudicial to the professignal Code of Conduct for Harbor Pilots.

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

SECTION 15. 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 16. - Limitation 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 Pitot Association
of the Philippines,

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

Upon actual boarding a vessel to provide pilotage services, that pilot becomes a servant
of 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 wo 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 Harbge 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 shill 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 ayents are not relieved of responsibility
for any loss or damage caused by of to the vessel even while the vessel is under
compulsory pilotage.

SECTION 17. 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 cleared for departure from port or place of incident.


SECTION 18, 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:

(1) Installation and/or upgrading of Pilotage equipment and facilities ta
conform with international safety standards for navigation.

(2) 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 services in their respective Harbor Pilotage Districts,

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

(4) Per Dies and administyative 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 or 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 19, Penal Provision’ A fine of wot less than Twenty thousand pesos
(P20,000.00) nor more than Two Hundred ‘Thousand Pesos (200,000.00) 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;


(>) Any 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

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

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

{e) 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 Harbor Pilot without holding a valid Harbor
Pilot License and Appointment issued by the Pilotage Commission.

SECTION 20. /mplementing 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 Aci, in consultation with the
United Harbor Pilots’ Association of the Philippines, and with the representatives of the
Philippine Registered shipping companies.

SECTION 21. Repealing Clause- AMl other laws, decrees, orders, rules and
regulations or parts thereof inconsistent with or contrary to the provisions of this Act ure
hereby repealed or modified accordingly.

SECTION 22. Transitory Provision. - The existing Port Authority granted by law
1o 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
constituted pursuant to this Act.

SECTION 23, Appropriations. - To carry out the provisions of this Act. there is
hereby appropriated for the initial year of operation of the Pilotage Commission. the sum
of two million pesos out of the funds in the National Treasury not otherwise appropriated.
Thereafter, the Pilotage Safety Development Trust Fund shall finance the cost of the
administrative operations of the Pilotage Commission as well as deftay such projects that
the Pilotage Commission shall undertake pursuant to this Act,

SECTION 24. 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 25, Effectivity Clause- This Act shall take effect fifteen (15) days after
its publication in at least two (2) national newspaper of general circulation.