FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
S. B. No. 2078 
Introduced by Senator JUAN PONCE ENRILE 
EXPLANATORY NOTE 
Ship agents play a vital role in making the navigation business, particularly the transport 
of passengers and goods, more convenient. They contribute to competitiveness and efficiency by 
facilitating a more expedient entry and departure of ships in their port of origin and destination. 
Under the present law, as contained in Articles 586 and 587 of the Code of Commerce, 
“the ship owner and ship agents shall be civilly liable for the acts of the captain” and “for the 
indemnities in favor of third persons which may arise from the conduct of the captain in the care 
of the goods which he loaded on the vessel”. As interpreted by the Supreme Court in a long line 
of decisions, it means that the ship agent is solely liable with the ship owner for cargo loss or 
damage, regardless whether the ship agent is responsible for the care of the cargo. 
However, there are other kinds of ship agents known as “tramp agents” or “port agents”, 
who are appointed by tramp operators for a particular voyage only and whose responsibility is 
limited merely to providing assistance in the usual procedures required for the facilitation of the 
vessel’s entry into, stay and departure from the port. 
It is therefore necessary to update the archaic provisions of the Code of Commerce and 
qualify the definition of a ship agent to exclude or exempt tramp agents from being liable for 
cargo loss or damage since the law already provides that the ship owner shall be responsible for 
this 
In view thereof, the early passage of this bill is earnestly sought. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
s . B . N ~ .  3078 
Introduced by Senator JUAN PONCE ENRILE 
AN ACT 
DEFINING THE LIABILITY OF SHIP AGENTS IN THE TRAMP SERVICE AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Definition of terms. - As used in this Act: 
(a) “Ship Agent” shall mean the person entrusted with the provisioning or 
representing the vessel in the port in which it may be found; 
(b) “General Agent” shall mean a ship agent appointed by the ship owner or 
carrier in the liner service for all voyages and covered by a General Agency 
Agreement whereby the agent assumes the role and responsibility of its 
principal within the Philippine territory including but not limited to 
solicitation of cargo and freight, payment of discharging or loading expenses, 
collection of shipping charges and issuingireleasing bills of lading and cargo 
manifest; 
(c) “Tramp Agent” shall mean a ship agent appointed by the ship owner, charterer 
or carrier in the tramp service for one particular voyage whose authority is 
limited to the customary and usual procedures and formalities required for the 
facilitation of the vessel’s entry, stay and departure in the port and does not 
include the assumption of the ship owner’s, charterer’s, or carrier’s 
obligations with the shipper or receiver for the goods carried by the ship; 


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(d) “Tramp Service” shall mean the operation of a contract carrier which has no 
regular and fixed routes and schedules but accepts cargo wherever and 
whenever the shipper desires, is hired on a contractual basis, or chartered by 
any one or few shippers under mutually agreed terms and usually carries bulk 
or break bulk cargoes; and 
(e) “Liner Service” shall mean the operation of a common carrier which publicly 
offers its services without discrimination to any user, has regular ports of 
CaWdestination, fixed sailing schedules and frequencies and published freight 
rates and attendant charges and usually carries multiple consignments. 
SECTION2. Liability of the ship agent, general agent and tramp agent. - The 
responsibility or liability, if any, of the ship agent, general agent and tramp agent shall continue 
to be governed by the pertinent provisions of the Code of Commerce: Provided, that in the case 
of the tramp agent, his liability shall not extend to the obligations assumed by the ship owner, 
charterer or carrier with the shipper or receiver for the goods carried by the ship: Provided, 
further, That it is the duty of the tramp agent, however, to assist the shipper or receiver in 
making cargo liability claims against the ship owner, charterer or carrier: Pvovided, final&, That 
failure or inaction to perform the aforesaid duty shall subject the tramp agent to applicable 
administrative sanctions based on the Implementing Rules and Regulations (IRR) to be 
formulated thereon by the Maritime Industry Authority (MARINA) under the Department of 
Transportation and Communication (DOTC) and by the Philippine Shippers Bureau (PSB) under 
the Department of Trade and Industry (DTI). 
SECTION 3. Repealing Clause. - All applicable laws, decrees, executive orders, rules 
and regulations which are inconsistent with this Act are hereby amended or modified 
accordingly. 
SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days following the 
completion of its publication in two (2) national newspaper of general circulation. 
Approved,