Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

3224

HOUSE BILL NO.

Introduced by HON. NIEL “JUNJUN” C. TUPAS, JR.
5" District, Iloilo

EXPLANATORY NOTE

The Philippines is an archipelago consisting of several island provinces, wherein shipping
as well as seabore or river transport is an indispensable component in the countrys economic
development. The need, therefore, to provide government regulations for safe navigation and
the protection of the marine environment can not be under emphasized. In this sense, the role
of harbor pilots and pilotage in general in ensuring the safe navigation of vessels (both foreign
and domestic) seeking 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 the 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). These Port
Authorities have arrogated upon themselves the regulatory control 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 general and international prevailing rules in other maritime jurisdiction on harbor pilot's
liability.

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

[EL JUNJUN™ C.! “AS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
First Regular Session

HOUSE BILLNO.__ 3224

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. Tite This Act shall be known as the "Pilotage Service Act of
2013”.

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 a Special Charter, and granted with jurisdiction, supervision and control

over port operation and management at a specific port in the Philippines.

“Pilotage Commis

jon” 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 Pilotage 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 Pilotage 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 Pilotage Commission shall receive a per diem for every meeting actually attended.
The Pilotage 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 :

(@) 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 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 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;

(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 to 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.

(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
the environment;

‘The Chairman or, in his absence, any member of the Pilotage Commission, shall
have the 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 & Casiguren, Subic, Bicol Region, Puerto Princesa

VISAYAS
Cebu, Iloilo, North Panay, Pulupandan, Tacloban, Catbalogan, Tagbilaran,
Dumaguete, Maasin-Surigao

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

The Pilotage Commission may from to time increase or decrease the number of
Harbor 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, with
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 five (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 Harbor 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 Harbor 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 Harbor 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 Harbor 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 Harbor 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 Harbor 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
shall have been duly appointed Harbor Pilots for the particular Harbor Pilotage District.

The Pilotage Organizations presently organized and constituted for the specific
Harbor 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 Pilotage
Commission the name of one of its member to act as the Chief Pilot for the Harbor
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 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) Involvement or participation in smuggling or related activities through
its harbor pilots, members or officers;


(5) Failure 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 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 Pilot 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
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 Harbor 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
to a person or property on the ground that (a) the ship was piloted by a duly licensed
Harbor Pilot, or (b) the damage or loss was occasioned by the error, omission, fault, or
neglect of a Harbor 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 indluding 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:

(4) Installation and/or upgrading of pilotage equipment and facilities to
conform with international safety standards for navigation.

(2) Developmental loans by way of finandal 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. Penal Provision. A fine of not less than Twenty Thousand Pesos
(P20,000.00) but not more than Two Hundred Thousand Pesos (P200,000.00) or
imprisonment for a period of not less than one (1) year but not more than six (6) years
or both such fine and imprisonment, at the discretion of the court, shall be imposed
upon:

(2) _ 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 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.

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

(©) 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
(©) 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 Ciause- 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 Cause- This Act shall take effect fifteen (15) days after
its publication in at least two (2) national newspaper of general circulation.

Approved,