REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

1954

House Bill No.

~~ Iniroduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN I

EXPLANATORY NOTE

Pilotage service is one of the important complementary services to vessels in port. The
Charter of the Philippine Ports Authority (PPA), Presidential Decree No. 85, specifically
Section 6 (a) (viii), vests PPA with the power to control, regulate and supervise pilotage and
the conduct of pilots in any port district. PPA has promulgated several regulations on pilotage
in order to implement its mandate and/or to respond to the complaints of both foreign and
coastwise shipping lines/operators. The complaints include unsatisfactory or delayed services
tendered by some pilots, lack of proper equipment and gear overcharging of pilotage fees and
the collection of unauthorized fees.

At present, pilotage services are solely provided by the members of the Harbor Pilots’
Association in a pilotage district which is under the United Harbor Pilots’ Association of the
Philippines (UHPAP), On 3 February 1986, President Marcos signed Executive Order No.
1088 without prior consultation with the maritime sector and the PPA. The EO made pilotage
services in all ports in the country compulsory, and increased pilotage fees by as much as
four thousand percent (4,000%) for the benefit of UHPAP members, the umbrella
organization

Presently, there is a need to define clearly pilotage services, and to establish in an
unequivocal manner the basis for the imposition of not less than 10% of government share in
the gross receipts from harbor pilotage operations. This bill seeks to provide a mechanism
maritime liability of harbor pilots

In view of the foregoing, early passage of this bill is earnestly requested.

MAN ;OCHAN Til
Representati
Magdalo Para sa Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. _1954

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN IL

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 House of Representatives of the Philippines in
Congress assembled:

SECTION 1, Title. - This Act shall be known as the "Pilotage Service Act of 2016".

SEC. 2. Policy and Objectives. - It is hereby declared the policy of the State to
regulate, control, and supervise pilotage services and the conduct of pilots in all ports of the

country to attain the following objectives:

a) Ensure the safe conduct in ports of vessels and seaborne commerce/passengers;
b) Protect port structure and facilities;

c) Establish reasonable charges for pilotage services;

d) Foster fair competition among harbor pilots in the delivery of pilotage services;
e) Ensure efficient pilotage services at all times; and

f) Professionalize harbor pilotage services.

SEC. 3. Definition of Terms. - For purposes of this Act, the terms used herein, unless

the context indicates otherwise, shall mean as follows:

a) Pilotage service is the act of conducting maneuvering a vessel to/from berth to
anchorage;

b) Harbor pilot is a licensed master mariner duly accredited by the Philippine Ports
Authority to conduct pilotage in a pilotage district;


c) Authority refers to the Philippine Ports Authority;

d) Accreditation is the authority granted by PPA to any harbor pilot to render pilotage
services in a particular pilotage district;

) Permit to operate is the authority granted by the PPA to any pilots' organization to
render pilotage service in a particular pilotage district; and

£) Gross income from pilotage services is the total gross billing whether collected or
not, assessed against the ship owner/ agents for pilotage and related services.

SEC. 4. Establishment of Pilotage District. - The Philippine Ports Authority is
hereby authorized to establish, through longitude and latitude, the pilotage districts
throughout the country including the number of pilots for each pilotage district.

SEC. 5. Provision of Pilotage Services. - Pilotage services in all pilotage districts
shall be provided directly by the Authority either by contract or through accredited pilots

organizations.

SEC. 6. Compulsory or Optional Pilotage. - For entering a harbor and anchoring
thereat, or passing through rivers or straits within a pilotage district, as well as docking and
undocking at any pier/wharf, or shifting from one berth to another, every vessel engaged in
foreign trade shall be under compulsory pilotage, except in specific ports/areas/cases declared
as optional per the regulations promulgated by the Authority.

Pilotage for vessels engaged in domestic trade shall be optional, except in specific
ports/areas/cases declared as compulsory per regulations promulgated by the Authority.

SEC. 7. Accreditation of Harbor Pilots. - Harbor pilots shall be accredited by the
Authority, on the basis of merit and fitness, for a term of not less than one (1) year but not
exceeding five (5) years.

Accreditation may be renewed under such terms and conditions as the Authority may
adopt, but in no case shall the renewal exceed the compulsory retirement age as provided for

in Section 9 hereof.


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‘The accreditation, transfer, suspension and cancellation of a harbor pilot's
accreditation shall be governed by the rules and regulations promulgated by the Authority,

Nothing contained herein shall be construed to mean an employer-employee
relationship between the Harbor Pilot and the Authority.

SEC. 8. Qualification of a Harbor Pilot. - No person shall be accredited as harbor
pilot unless he is a Filipino citizen and, on the day of accreditation, is not more than fifty-five
(55) years old, of sound physical and mental condition, of good moral character, and a holder
of license as harbor pilot for the pilotage district applied for.

SEC. 9. Compulsory Retirement of Pilots. - Upon the effectivity of this Act, harbour
pilots shall be considered retired at the age of sixty (60) years.

SEC. 10. Establishment of a Pilots' Organization. - Pilots in a pilotage district may
form themselves into a pilots’ organization which shall be registered with the Securities and
Exchange Commission and accredited with the Authority. The organization shall be headed
by a Chief Pilot to be elected from the member-pilots

SEC. 11. Permit to Operate. - Every pilots' organization shall secure from the
Authority a permit to operate (PTO) for such services under terms/conditions the Authority

may prescribe.

SEC. 12. Cancellation of PTO. - The PTO may be canceled by the Authority only for

cause and after due process.

SEC. 13. Record. - Harbor pilots’ pilots’ organizations shall keep a record of their
operations and financial transactions and such other records or reports as may be required by
this Act. All records shall be made open to member-pilots and concerned government

agencies for inspection and examination.

SEC. 14, Indemnity Insurance. - Every pilots’ organization shall collectively insure
its membership with the Government Service Insurance System (GSIS) at an amount to be
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determined by the Authority to cover in whole or in part any liability arising from any
accident resulting in damage to vessel(s), port facilities and other properties, and/or death or
injury to persons caused by its members in the performance of pilotage service.

SEC. 15. Operating Capital, Equipment and Facilities. - To effectively and
efficiently render pilotage services, individual pilots and/or pilots’ organizations shall make

available operating capital, equipment or facilities as may be required by the Authority.

SEC. 16. Pilotage Services and Rates, - The Authority shall define pilotage services,
including tug assistance and other related services, and shall determine, establish and adjust
the rates therefore, in coordination with relevant government agencies and concerned private
sectors, taking into consideration factors such as, but not limited to, tonnage of vessels and
distance covered by the service.

The rates thus determined shall take effect fifteen (15) days after publication in any

newspaper of general circulation.

SEC. 17. Government Share for Pilotage Services. - For the privilege granted to
pilots/pilots' organizations to undertake pilotage services and for the use of port facilities,
there shall be collected a government share of not less than ten (10%) percent in the pilots’

gross income from pilotage and related services

SEC. 18. Extent of Liability. - A harbor pilot/pilotage organization providing pilotage
service to a vessel shall be responsible for the damage sustained by the vessel and other
facilities, and for the death or injury to persons resulting from his/its failure or negligence.
He/she may only be absolved from liability if the accident is caused by force majeure or
natural calamities, or when his/her order is countermanded by the master of the vessel:
Provided, however, That he/she exercises extraordinary diligence in the performance of
his/her duties to prevent or minimize damage.

SEC. 19. Penalties. - Any person who violates the provisions of this Act and the
implementing rules and regulations shall be punished by imprisonment of not less than ten
(10) days but not more than six (6) months, as may be determined by the court.


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If the offender is a duly-accredited harbor pilot, his accreditation shall, in addition to
his imprisonment, be suspended/cancelled or revoked.

‘The Authority shall have the power to suspend, cancel or revoke the accreditation of a
harbor pilot and to impose administrative fines in an amount not less than Twenty Thousand
Pesos (P20,000.00) but not more than Two Hundred Thousand Pesos (P200,000.00) for such
specific violation as shall be determined by the Authority.

SEC. 20. Issuance of New Accreditation to Incumbent Harbor Pilots. — Incumbent
pilots in all pilotage districts shall be issued new accreditations in accordance with the
provisions of this Act. In no case shall said new accreditations exceed the compulsory
retirement age for harbor pilots as provided for in Section 9 hereof.

SEC. 21. Repealing Clause, - Executive Order No. 1088 and 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.
SEC. 22. Separability Clause. - If any part or provision of this Act is held
unconstitutional or invalid, other parts or provisions which are not affected thereby shall

continue to be in full force and effect.

SEC. 23. Effectivity. - This Act shall take effect fifteen (I5) days after its publication in at
least two (2) national newspapers of general circulation.

Approved,