Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

5457
HOUSE BILL NO.

INTRODUCED BY REP. SANDRO L. GONZALEZ, SPEAKER ALAN PETER
"COMPANERO" S. CAYETANO, REP. MARIA LAARNI L. CAYETANO, REP.
PAOLO Z. DUTERTE, AND REP. ERIC GO YAP

AN ACT
REGULATING HARBOR PILOTAGE SERVICES AND THE CONDUCT OF HARBOR
PILOTS IN ALL PORTS IN THE PHILIPPINES, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

No ship may dock in a harbor without the guidance provided by a skilled harbor pilot.
Thus, the service these harbor pilots perform is of critical importance in developing a modem

maritime industry which facilitates the safe and efficient transfer of people and goods from one
port to another.

At present, this essential service is regulated on the basis of Presidential Decree 85, which
has not stopped complaints from being raised on matters such as the quality of the pilotage service
provided, the lack of proper equipment for pilotage, the overcharging of fees, and collection of
unauthorized fees. To bring the regulation of harbor pilotage to world standards, a new law is
necessary which will modernize pilotage as it is performed in the country

This proposed Act will strengthen the role of the Philippine Ports Authority in regulating
pilotage, define the requirements for appointment as a harbor pilot, and specify when a ship must.
procure pilotage services to comply with safety requirements of a modem maritime industry

For these reasons, I enjoin my colleagues in the House to support the passage of this bill.

REP. ZALEZ
MARINO Party List

(
REP. ALAN PETER "COMPANERO" S. REP. PAOLAYZ. DUTERTE
CAYETANO Deputy)Xpeaker
Speaker 1* District olDavao City
1* District of Taguig City-Pateros
REP. MARIA CAYETANO REP. ERIC GO YAP

2™ District of Taguig City ACT-CIS Party List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

5457
HOUSE BILL NO. |"

INTRODUCED BY REP. SANDRO L. GONZALEZ, SPEAKER ALAN PETER
"COMPANERO" S. CAYETANO, REP. MARIA LAARNI L. CAYETANO, REP.
PAOLO Z. DUTERTE, AND REP. ERIC GO YAP

AN ACT
REGULATING HARBOR PILOTAGE SERVICES AND THE CONDUCT OF HARBOR
PILOTS IN ALL PORTS IN THE PHILIPPINES, AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. — This Act shall be known as the "Pilotage Act of 2019."

Sec. 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 by private
persons.

Sec. 3. Policy and 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 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 safety at all times of properties, port facilities, vessels, cargoes and other port users:

(b) To ensure effective and efficient delivery of pilotage services through rationalization of
pilotage fees and charges;

(c) To encourage healthy and friendly environment among active harbor Pilots;
(@) To ensure the safety of life and property at sea, and the protection of marine environment;

(©) To upgrade the skills and qualifications of harbor pilots to promote and develop
professionalism among their ranks;

See. 4. Definition of Terms. — For the purpose of this Act, the words and phrases used herein
shall be defined as follows

(a) Appointment refers to a designation by the Port Authority granted to a harbor pilot to exercise
his profession and render pilotage service in a particular harbor pilotage district;

(b) Administration refers to the Maritime Industry Authority (MARINA) which issues the
Pilotage License after examination for a particular Pilotage district.

(c) Port Authority refers to the Philippine Ports. Authority (PPA) and other port authorities created
under a special charter, including the ports within the economic zones and autonomous regions,
having exclusive jurisdiction, supervision and control over port operation and management in
specific port in the Philippines;

(@ Harbor Pilot refers to a duly licensed Master Mariner, who is not part of the regular
complement of the vessel, taken on board at a particular place, and tasked to efficiently and
effectively perform pilotage service within a specific pilotage district


(e) Harbor Pilotage District refers to the territorial area including all inland waters, channels,
waterways, anchorages, navigable tributaries as well as port, wharves, pier, jetties delineated by
latitude and longitude.

(£) Pilotage License refers to the license granted by the Administration to a Master Mariner to
exercise his profession and to render pilotage services in that particular pilotage district;

(g) Pilotage Organization refers to an association of Harbor Pilots duly established fora particular
Harbor Pilotage District as defined in this act;

(h) Pilotage Service refers to 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) Recognized Umbrella Organization of Harbor Pilots refers to a national federation or
association of harbor pilots, the membership of which comprises the majority of the duly licensed
harbor pilots in the Philippines duly registered with the Securities and Exchange Commission,
Cooperative Development Authority or the concerned regulatory body.

(i) Recognized Umbrella Organization of Ship Agents refers to a national federation or
association of ship agents the membership of which comprises the majority of the ship agents in
the Philippines duly registered with the Securities and Exchange Commission, Cooperative
Development Authority or the concerned regulatory body.

Sec. 5. Powers and Functions of the Port Authority. — The Port Authority shall have the
following powers and functions:

(a) Exercise administrative control, regulation and supervision on pilotage and conduct of pilots
in port districts under its jurisdiction;

(b) Establish, determine and adjust rates and fees for harbor pilotage services by taking into
account the current rate structure, tonnage of vessels, peculiarity and intrinsic characteristic of
each port and harbor and such other important factors: Provided, That no imposition or adjustment
shall be made without prior consultation with the Harbor Pilots and concerned Shipowners in a
public hearing called for the purpose.

(©) Conduct regular consultative meetings with duly established pilotage organizations and duly
appointed harbor pilots in relation to improvement of services, upgrading of pilot facilities, rate
restructuring and such other related concerns;

(4) Determine and appoint the number of harbor pilots needed in a particular pilotage district in

the case of PPA and in a particular port in the case of independent port authorities upon due
consultation with the concerned pilotage district;

(e) Ensure the efficient and fair handling of appointment of harbor pilots; suspend or cancel the

appointment of harbor pilots for just cause, giving due notice to affected parties and after proper
hearing;

(£) Grant and issue pilotage appointment to harbor pilots;

(g) Cancel or suspend the license of harbor pilots for any act in violation of the provisions of this
Act,

(h) Establish a comprehensive training program for pilot applicants before their final appointment
as Harbor Pilots in their respective Pilotage District, and such additional and continuing pilotage
education developed in cooperation with the national and local pilotage associations.

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

Sec. 6. Establishment of Harbor Pilotage District. — Pilotage Districts shall be established
throughout the Philippines to be known by the name of the principal port embraced within its


limits. The Port Authority shall determine the number of pilots in a given pilotage district,
and may increase or decrease the same when necessary or expedient for the purpose of
providing an adequate and efficient pilotage service, economic viability and upon prior
consultation with the Harbor Pilots of the concerned Pilotage District. The Philippine Ports
Authority shall exercise general jurisdiction over all Pilotage Districts, except when a
specific port or anchorage is under the jurisdiction of another Port Authority by Special
Charter or is otherwise, located in a declared autonomous region.

Sec. 7. Provision of Pilotage Services. — Pilotage service shall be provided either directly
by the Port Authority or through an established pilotage organization in a government
maintained or privately-managed ports in the country. Every vessel while navigating in any
pilotage district or any part thereof shall be under pilotage and the owner, agent or master
of the vessel shall comply with that requirement. A vessel while being moved within any
area of the port that is, or forms part of a pilotage district shall be deemed a vessel
navigating a pilotage district.

Sec.8. Compulsory Pilotage. — Pilotage services shall be compulsory in all government
and private wharves, berths, piers, jetties, or anchorage except as otherwise provided in
this paragraph. Every vessel engaged in foreign trade shall always be under compulsory
pilotage. Pilotage for vessels engaged in domestic trade shall likewise be compulsory
unless exemption is secured by the domestic vessel as provided in this act.
Chemical/Gas/Oil Tanker vessels or any other vessels carrying hazardous cargoes shall
always be under compulsory pilotage. The Port Authority may, if't appears to be necessary,
exempt any vessel other than tanker vessels engaged in domestic trade while navigating in
any pilotage district, from being under pilotage service subject to such conditions as it may
deem appropriate.

The Port Authority shall consider the following factors in determining the type of
appropriate coverage for each port:

(a) Size and type of vessels;

(b) Physical and technical configuration of ports including mooring and berthing
capabilities;

(c) Hydrographic situation of the harbor including its channels and passageways;

(d) Navigational capabilities of each port, safety and traffic devices and other related
navigational aids;

(©) Volume of vessel traffic or average frequency of vessel arrivals and departures; and

(8) Such other factors which may affect the risk of vessel movements. The Port Authority
may issue a Pilotage Exemption Certificate to the Master of the vessel granted
exemption under this Act, provided that the Master has completed 60 inbound and
outbound trips to and from the port where the vessel makes its regular port calls.

Sec. 9. Qualifications of Harbor Pilots. — A person shall be appointed as a harbor pilot if
one possesses the following:

(@) Filipino citizenship;

(b) Sound physical and mental condition;

(c) Good moral character;

(d) Duly licensed by the Administration to practice one’s profession within a specified port
or district; and

(©) Must have been a Master Mariner on board sea going vessels of not less than five
hundred (500) gross tons for at least five (5) years.


See. 10. Compulsory Retirement of Pilots. — Upon the effectivity of this Act, a harbour
pilot shall be considered retired upon reaching the age of seventy (70): Provided, However,
that all harbor pilots shall undergo annual medical and physical examinations as a
requirement for the continued exercise of pilotage service profession,

Sec. 11. Appointment of Harbor Pilots. — All harbor pilots, before practicing the
profession, must get an appointment from the Port Authority. The Port Authority shall
appoint only a limited number of harbor pilots per district or port for efficiency purposes.
The appointment will not result to an employer-employee relationship between the Port
Authority and the harbor pilot-applicant.

Sec. 12. Establishment of a Pilotage Organization. - The appointed harbor pilots in each
Harbor Pilotage District shall organize themselves into a corporation, partnership or
cooperative. Said organizations must be duly registered with either the Securities and
Exchange Commission or Cooperative Development Authority. The Port Authority shall
allow only one pilotage organization in every Harbor Pilotage District, and to which all the
Harbor Pilots for the said District shall all belong and be members thereof.

Sec. 13. Record. - Harbor pilots organizations shall keep a record of his or its operations
and financial transactions and such other records or reports pertaining to pilotage services
operations. Such records shall be made open to member-pilots and concerned government
agencies for inspection and examination. The inspection and examination of records under
this Act shall be limited purely to pilotage matters and operations.

Sec. 14. Operating Capital, Equipment and Facilities. - To effectively and efficiently
render pilotage services, individual pilots and pilot organizations shall make available such
operating capital equipment or facilities may be required by the Port Authority.

See. 15. Pilotage Fees as Maritime Lien. - Pilotage Fees for pilotage services actually
rendered on a vessel shall constitute a maritime lien on the vessel concemed as in unpaid
crew wages of the vessel, which may be enforced by a suit in rem in the Philippines or
otherwise in any foreign country in which the vessel may be found. No vessel shall be
granted departure clearance unless the Pilotage Fees are paid in full or a satisfactory
arrangements are agreed upon for the payment of Pilotage Fees.

See. 16. Grounds for Suspension or Cancellation of Appointment. - The Port Authority
may cancel or suspend the appointment of harbor pilots on the following grounds:

(a) Refusal or failure to render effective and efficient pilotage service without justifiable
cause;

(b) Failure or refusal to observe and comply with safety standards and port policies;

(©) Gross incompetence or negligence which resulted in the loss of cargoes, loss of lives
and destruction of vessel and harbor properties;

(d) Implementation of rates and fees not agreed by the parties or duly authorized by the
Port Authority;

(©) Involvement or participation in illegal activities such as smuggling and trafficking
passengers;

(£) Failure or refusal to post the required performance bond and other related fees;
(g) Failure to comply with the substantive requirements of the Port Authority;


(h) Failure or refusal to post the required indemnity insurance;

(i) Intoxication and use of prohibited drugs during the performance of duties as a harbor
pilot;

(j) Fraudulent misrepresentation, including the use and submission of any false or forged
documents, in obtaining the Harbor Pilot License or appointment;

(k) Acts prejudicial to the Professional Code of Conduct for harbor pilots;

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

(m) Failure to comply with any of the provisions of this Act and its implementing rules and
regulations.

Sec. 17. Responsibility of Owner, Agent or Master of a Vessel. - The owner, agent or
master of a vessel shall only employ duly licensed and appointed harbor pilots to render
pilotage services in a particular district or port. A person acting in violation of this Section
shall be fined in such amount as may be prescribed by the Port Authority. For this purpose,
the Port Authority shall publish the list of appointed harbor pilots and their respective
jurisdictions in such manner as to ensure that every owner, agent or master of a vessel is
properly informed.

Sec. 18. Limitation of Pilot’s Liability. — A harbor pilot licensed to act as such by the Port
Authority and authorized to provide pilotage services in the different harbor pilotage
districts 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 their responsibility for any loss or damage caused by or to the vessel even
while the vessel is under compulsory pilotage. Under this act, the master retains his
overriding authority and the responsibility to make decisions with respect to the safety of
his crew, passengers and/or cargoes, and the environment.

A harbor pilot licensed to act as such by the Port Authority 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 one’s willful misconduct or gross negligence.

Each harbor pilot shall post an indemnity insurance bond from the Government Service
Insurance System (GSIS) or from such reputable insurance company acceptable to the Port
Authority, to cover the limit of the liability. 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, breakdown of its
machineries and equipment, force majeure or fortuitous event.

Upon actual boarding of 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 from 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
appointed by the Port Authority.


Section 19. 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 ten (10) years or both such fine and
imprisonment, at the discretion of the court, shall be imposed upon to:

(a) Any person who shall render pilotage services without a valid license for that particular
district issued by the Administration and without a valid appointment by Port Authority;

(b) Any person who represents one’s self as a harbor pilot for a particular pilotage district
without being a member of the duly recognized 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 or appointment;

(@) Any person who shall use an expired, revoked or suspended harbor pilot license or
appointment to perform pilotage services; and