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TIME: AL

REGISTR.UTION UNIT
S AND INDEX SERVIGE

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

SEVENTEENTH CONGRESS
First Regular Session

497
HOUSE BILL NO," *

Introduced by: Honorable Karlo A. B., Nograles and Hon, Jericho Jonas B.
Nograles

EXPLANATORY NOTE

The Philippines is an archipelago consisting of several island provinces, where
shipping as well as seaborne or river transport are indispensable components in the
country’s economic development. The need therefore to provide government
regulations for safe navigation and the protection of the marine environment cannot
be under emphasized, and in this manner the role of Harbor Pilots and Pilotage in
general in ensuring the safe navigation of vessels (both foreign and domestic)
ing berths in all ports of the country whether privately or government owned
should be recognized and given due attention by way of uniformity in practice and
regulatory control

It Is the purpose of this Bill to pass a Pilotage Act which provides for an
integrated and comprehensive legislation on pilotage in accordance with the
generally accepted international principles of pilotage, and which is highly responsive
to changing needs and requirements affecting Harbor Pilots and their pilotage
services,

Presidential Decree 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. While PD 857 has exclusively granted the PPA the express
mandate to exercise regulatory control and supervision over Harbor Pilots and
Pilotage, it has failed to effectively exercise the same with the creation of several
Port Authorities in the country (including Special Economic Zones) which arrogated
upon themselves the regulatory contro! over Pilots in their respective territorial
jurisdiction without any express legislative mandate in their respective Special
Charter/s. There is therefore a pressing need to place regulatory control and
supervision of pilotage and the conduct of Harbor Pilots under a Pilotage Commission
to rationalize regulatory policies on pilotage services in the interest of uniformity and
general application of all pilotage administrative policies in all ports of the Philippines.


‘The proposed Bill also seeks to institutionalize prevailing jurisprudence on
pilotage services, and to define the legal responsibility and liability of Harbor Pilots
in the event of damage to property or death and injury to persons caused by a
vessel under pilotage in line with the generally and internationally prevailing rules in
other maritime jurisdictions on Harbor Pilot's liability.

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

KARLO A. B. NOGRALES JERICH' . NOGRALES


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

Seventeenth Congress
First Regular Session

en
HOUSE BILL NO. :

Introduced by: Hon. Karlo A. B. Nograles and Hon, Jericho Jonas B.
Nograles

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 2016”.

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 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 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 at 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 context indicates otherwise, mean or be
understood as follows:

“Authority” refers to the Philippine Ports Authority in general and to such other


Port Authority, under @ Special Charter, and granted with jurisdiction, supervision
and contro! 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
appointed by the Pilotage Commission for a particular 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 pilotage 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, 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
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 to 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 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 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 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
to 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 control, 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 pllotage 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 Pllotage Commission;

(d) To Appoint duly licensed Harbor Pilots to conduct pliotage service.

(e) To Establish @ comprehensive training program to assist in the training
and evaluation of pilot applicants before final licensing, and forntulate
such other additional training requirements for Harbor Pilots, including
but not limited to a program of continuing education on pilotage

vices;

(f) 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 @ 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.

(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 enviranment;

The Chairman 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 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 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 vessels, 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 Fernando, Masinloc-Sta.Cruz-Sual,
Siain-Hondagua & Casiguran, Subic, Bicol Region, Puerto Princesa

VISAYAS
Cebu, Iloilo, North Panay, 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 to 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
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 9. Qualification of a Harbor Pilot- 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 Chief 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. 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,

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 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 iliness 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 Pilot 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 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 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 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 shall continue to act as a pilotage organization under this
Act. It is the obligation of each pilotage organization to elect and submit to the
Pllotage 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 14. 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:

(1) Refusal or failure to render pllotage 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) Involvement or participation in smuggling or related activities
through its harbor pilots, members or officers;

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

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

(7) Intoxication 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 professional 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 @ 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 Pllotage 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
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 a vessel to provide pilotage services, that pilot becomes @
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 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 accasioned 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 for any loss or damage caused by or 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
pald 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
to 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 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 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. ena/ 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;

(b) Any person who represents himself as a Harbor Pilot for a
particular Pllotage 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.

(d) Any person who shall use an expired, revoked and/or
suspended Harbor Pilot License or Appointment to perform pllotage
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. 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 21. Repealing 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 22. 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 constituted pursuant to this Act. The Pilotage Commission shall
be deemed constituted upon the appointment and/or confirmation of appointment of
at least the majority of the members of the Pilotage Commission by the President,
which shall not be later than six (6) months from the passage of this Act.

SECTION 23. Funding Requirements. - To carry out the provisions of this
Act, the Pilotage Safety Development Trust Fund created under this Act shall solely
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 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.

Approved,