Republic of the Philippines
HOUSH OF REPRESENTATIVHS
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HOUSE BILL NO. 1C180
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Introduced by Representative Crispin Diego "Ping" D. Remulla
AN ACT PROMOTING THE DEVELOPMENT 0F PHILIPPINE SHIPBUILDING
AND SHIP REPAIR INDUSTRY ORDAINING REFORMS IN GOVERNMENT
POLICIES TOWARDS SHIPBUILDING AND REPAIR IN THE PHILIPPINES,
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Republic of the Philippines holds immense untapped potential in the shipbuilding
and ship repair industry, with its strategic maritime position comprising more than 7000 islands
and 36,289 kilometers (22,549 mi) of shoreline -the fifth longest in the world. Historically, the
Philippines  also  has  been  deeply  connected  to  its  maritime  heritage,  with  shipbuilding
communities across the archipelago, like in Pampanga, Cavite, Butuan, Sulu, and Zamboanga,
displaying robust shipbuilding industries even during the pre-colonial period. Case in point,
the country' s smallest political unit, the barangay, is named after one of the earliest native boats
used in the archipelago and the first wooden watercraft excavated in Southeast Asia.
The Shipbuilding Development Act is hereby introduced to harness and empower our
local shipbuilding sector, which is pivotal both for economic growth and national security.
Recognizing shipbuilding as a critical industry, the bill seeks to bring advancements through


the integration of modem technology, enhancing the skills of our workforce, and optimizing
industry standards.
Thus, the passage of this bill represents a strategic step forward in realizing the full
potential of the Philippine shipbuilding industry.
In view of the foregoing, the approval of this measure is earnestly sought.
CRISPIdiA«ITAVRTD.RENIIVAILA


Republic of the Philippines
HOUSH OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HOUSEBILLNo.1C180
Introduced by Representative Crispin Diego "Ping" D. Remulla
AN ACT PROMOTING THE DEVELOPMENT 0F PHILIPPINE SHIPBUILDING AND
SHIP REPAIR INDUSTRY ORDAINING REFORMS IN GOVERNMENT POLICIES
TOWARDS SHIPBUILDING AND REPAIR IN THE PHILIPPINES, AND FOR OTHER
PURPOSES
Be it enacted by the Senate and the House Of Representatives Of the Philippines in Congress assembled:
1                                                        CHAPTHR I GENHRAL PROVISIONS
2                    SECTION I. Short Title. -This Act shall be known as the "Shipbuilding Development Act".
3                    SHC. 2. Declaration of Policy. -The state recognizes the role of the shipbuilding and ship
4      repair industry as one of the vital components of the maritime sector and that it plays a key role in the
5      economic growth of the country.
6                    As such, it is important that the Philippine maritime industry also develops and enhances the
7      quality of its capacity and capability for mass water transportation as well as for its maritime and naval
8      forces. The philippines needs continued modernization and expansion of its domestic shipping fleet to
9      attain more growth and competitive advantage in the domestic sphere.
10                    To  attain these  objectives,  it  is  hereby  declared the  policy  of the  State  to:  (a)  promote  all
11      Philippine  shipbuilding  ship repair industry;  (b)  attract private  capital to  invest in the  shipbuilding
12      industry  by  creating a healthy  and competitive  investment and operating  environment;  (c)  provide
13      necessary assistance and incentives for the continued growth of the philippine shipbuilding and naval
14      fleet;  (d)  enhancement of the  Filipino  shipyard workers'  skills to meet international  standards;  (e)
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1      encourage the development of a viable shipbuilding and ship repair industry to support the expansion
2      and modemization of the philippine shipping and naval fleet and its strict adherence to safety standards
3       which will ensure the seaworthiness of all sea-borne structures.
4                   SEC. 3. Definition of Terms. -As used in and for purposes of this Act, the following terns,
5      whether in singular or plural, are hereby defined as follows:
6                    (a) "Act" refers to the shipbuilding Development Act of 2021 ;
7                    (b) "MARINA" refers to the Maritime Industry Authority;
8                    (c)"MARINA-registered shipbuilding and ship repair entities" refer to shipyards owned;
9                    (d) "Ship" or "Vessel" may be used interchangeably and shall mean any kind, class, or type of
10      craft or artificial contrivance capable offloating in water, designed to be used, or capable of being used,
11      as a means offloating in water transport in the domestic trade for the carriage of passengers or cargo,
12      or both, utilizing its own motive power or that of another
13                    (e) "Shipbuilding" shall mean the design, construction, launching, and outfitting of all types of
14       ships and watercraft;
15                    (D   "Ship   repair"   shall  mean  the   overhaul,   refurbishment,   renovation,   improvement,   or
16      alternation of the hull, machineries, equipment, outfits, and components of all types of ships;
17                    (g)  "Shipbuilding  and  Ship  Repair  Entities"  refer  to  the  citizens  of the  Philippines,  or  a
18      commercial partnership owned by majority of Filipinos, or a corporation incorporated under the laws
19       of the philippines, the capital of which is owned or controlled in any proportion by Filipinos or foreign
20      nationals, or by both such Filipinos or foreign nationals, or by corporations whether Filipino or foreign-
21      owned, which is duly authorized by the Administration to engage in the business of shipbuilding and/or
22      ship repair or to otherwise operate a shipyard, graving dock, or marine repair yards;
23                    (h) "Shipyard" refers to the shipbuilding or repair facilities which have the capability to put
24      vessels out of water in a drydock or to put vessels above the water surface in order to effect ship work
25       on vessels, appendages, structure, machinery, and equipment;
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1                    (i) "Spare parts" shall mean the replacement parts or components of a vessel, including but not
2       limited to, its hull, engines, machineries, equipment, appurtenances, necessaries, accessories, articles,
3       supplies, materials, steel plates, aluminum plates, other metal plates, communications equipment, and
4      other  parts  or  components  thereof,  installed  aboard  the  ship  necessary  for  its  safe  and  efficient
5       navigation and operation;
6                   0) "Tax incentives" refers to fiscal incentives such as those which come from in the form of
7       Income Tax Holidays  (ITYH),  exemptions,  deductions,  credits,  or exclusions  from the tax base,  as
8      providedby law,toRBEs;
9                    (k) "Technologically Improved hull material" refers to a combination of two or more constituent
10      materials with significantly different physical and chemical properties that when combined, produce a
11       material  that  is  stronger,  lighter,  or resistant to  corrosion  or electricity  such  as  FRP,  carbon  fiber
12       (graphite), Kevlar, quartz, polyester, and other similar materials.
13                                                    CHAPTHR II INVIISTMENT INCHNTIVES
14                   SEC. 4. Incentives to shipbuilding and ship Repair Industry. -To promote investments and
15      to ensure the development of a viable  shipbuilding and ship repair industry in the Philippines, this
16       incentive is hereby granted:
17                   Exemption from Value-Added Tax on the domestic purchase and/or importation of capital
18      equipment, machinery, spare parts, life-saving and navigational equipment, raw materials such as steel
19      plates and other metal plates including marine-grade aluminum plates or steel or other technologically
20      improved  hull  material  to  be  used  in the  construction,  repair,  renovation,  alteration,  modification,
21      conversion, or maintenance of the hull of any vessel operated or to be operated in the domestic trade.
22      Unless the domestic purchase and/or importation of capital equipment, machinery,  spare parts, life-
23       saving and navigational  equipment  and/or any  materials  are  to  be used in the  construction,  repair,
24      renovation,  alteration,  modification,  conversion,  or  maintenance  of the  hull  of any  marine  vessel
25      operated or to be operated within the philippine waters or the high seas, or in the construction, repair,
26      expansion, renovation, alteration, modification, or rehabilitation of its shipyard facilities, such
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1      exemption from VAT shall be availed of within five (5) years from the effectivity of this Act.
2                    The domestic purchase and/or importation of this article under sec. 4(a) of this Act shall be
3      granted exemption from VAT subject to the following conditions:
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a.   That  said  articles  are  not  manufactured  domestically  in  sufficient  quantity  of comparable
quality and at  reasonable       prices;
b.   That   said  articles  are   directly   imported  by   MARINA-registered  shipbuilding   and   ship
repair   entities;
c.   That said articles are reasonably needed and will be used exclusively by the MARINA-registered
shipbuilding and ship repair entities in its transport operations;
d.   That the approval of MARINA was obtained prior to the domestic purchase and/or importation
of articles under Sec.  4(a)  shall be granted to all MARINA-registered shipbuilding and ship
repair entities unless otherwise stated by law; and
e.   That exemption from VAT on any sale, transfer, or disposal of a ship built domestically to a
registered ship owner or operator, provided that such transaction was granted prior approval
from the MARINA.
SEC. 5.  Incentives for Board of Investments-Registered Shipbuilding and  Ship Repair
17      Hntities. -Pursuant to the requirements set forth under Executive order (EO) No. 226, otherwise known
18      as "The Omnibus Investments Code of 1987," registered shipbuilders shall be granted the following
19      incentives to the extent engaged in a preferred area of investment:
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(a) Income Tax Holiday.
1.   For four (4) years from the operation of shipbuilding and ship repair entities, the newly registered
shipbuilding  company  shall  be  fully  exempt  from  income  taxes  levied  by  the  National
Government.  Subject to  such guidelines as may be prescribed by the Board, the income tax
exemption will be extended for another year in each of the following causes:
i. the project meets the prescribed ratio of capital equipment to number of workers set by the
26       Board;
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ii. utilization of indigenous raw materials at rates set by the Board;
iii. the net foreign exchange savings or earnings amount to at least USD 500,000.00 annually
3      during the first 4 years of operation. The preceding paragraph notwithstanding, no registered pioneer
4      shipbuilding companies may avail of these incentives for a period exceeding five (5) years.
5             2.   For a period of two (2) years from operation, registered expanding shipbuilding companies shall
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be entitled to an exemption from income taxes levied by the National Government proportionate
to  their expansion under such terms  and conditions as the  Board may  determine:  Provided,
however,  that during the period within which this  incentive  is  availed of by the  expanding
company, it shall not be entitled to additional deduction for incremental labor expenses.
10             3.   The provision of Article 7 (14) of E0 226 notwithstanding, registered shipbuilding companies
11                    shall not be entitled to any extension of this incentive.
12             4.   For a period of4 years for new or existing registered shipbuilding and ship repair entities with
13                    at least four thousand (4,000) employees and produce vessels with a minimum of seven hundred
14                   (700) gross tonnage and seventy percent (70%) of such vessels produced are for export.
15             5.   For a period of4 years for new or existing shipbuilding and ship repair entities with at least one
16                    thousand (1,000) employees and produce vessels with a minimum of two hundred fifty (250)
17                    gross tonnage and for domestic sale.
18            (b) Additional Deduction for Labor Expense.
19       For the first five (5) years from registration, a registered shipbuilding and ship repair entities shall be
20      allowed an additional deduction from taxable income of fifty percent (50%) of the wages corresponding
21      to the increment in the number of direct labor for skilled and unskilled workers if the project meets the
22      prescribed ratio  of capital  equipment to number of workers  set by the Board;  Provided,  That this
23       additional deduction shall be doubled if the activity is located in less developed areas as defined in
24      Article 40 of Executive orderNo. 226 (E0 226).
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1       (c) Tax credit on Domestic capitalEquipment.
2      A tax credit equivalent to one hundred percent (100%) of the value of the national internal revenue taxes
3      and customs duties that would have been waived on machinery, equipment, and spare parts, had these
4      items been imported shall be given to the new and expanding registered shipbuilder which purchases
5      machinery, equipment and spare parts from a domestic manufacturer: Provided, that:
6             1.   the  said  equipment,  machinery,  and  spare  parts  are  reasonably  needed  and  will  be  used
7                    exclusively by the registered shipbuilder in the manufacture of its products unless prior approval
8                    of the Board is secured for the part-time utilization of said equipment in a non-registered activity
9                    to maximize usage thereof;
10             2.   the equipment would have qualified for tax and duty-free importation under paragraph
11       (c)hereof;
12             3.   the approval of the Board was obtained by the registered enterprises; and
13             4.   the  purchase  is made  within  flve  (5)  years  from the  date  of effectivity  of the  Code.  If the
14                    registered  shipbuilder sells, transfers,  or disposes of these machinery,  equipment,  and  spare
15                    parts, the provisions in the preceding paragraph for such disposition shall apply.
16      (d) Employment ofForeign Nationals.
17                    Subject to the provisions of sec. 29 of commonwealth Act (C.A.) 613, as amended, a registered
18      shipbuilder may employ foreign nationals in supervisory, technical or advisory positions for a period
19      not exceeding five (5) years from its registration, extendible for limited period at the discretion of the
20      Board: Provided, however, That when the majority of the capital stock of a registered shipbuilder is
21      owned by foreign investors, the position of president, treasurer, and general manager or their equivalents
22      may be retained by foreign nationals beyond the period set forth herein.
23                    Foreign nationals under employment contract within the purview of this incentive, their spouse,
24      and urmarried children under twenty-one (21) years of age, who are not excluded by sec. 29 of c.A.
25       613,  as  amended,  shall  be  permitted  to  enter,  and  reside  in  the  Philippines  during  the  period  of
26      employment of such foreign nationals.
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1                    A registered shipbuilding and ship repair entity shall train Filipinos as understudies of foreign
2      nationals in administrative, supervisory, and technical skills and shall submit annual reports on such
3       trainingtothe Board.
4                   SEC. 6. Incentives for Registered a}OI) Shipbuilding and ship Repair Entities Located in
5      SBSR ECo park -
6             (a)  Income Tax Holiday for 4-8 years
7             (b) Special 5% tax rate on gross income after the lapse oflTH
8             (c) Tax and duty exemption on imported capital equipment
9              (d)  Exemption from  l2%  input VAT on allowable  local purchase of goods  and  services  (e.g.,
10              communication charges)
11              (e) Uuregistered use of consigned equipment Employment of foreign nationals
12                                                                               CHAPTER III
13                                                               SBSR FINANCING PROGRAM
14                    SHC. 7. MARINA, in partnership with government financial institutions, shall provide financial
15       and technical assistance, training, and consultancy services, which will promote, develop, and foster a
16       sustainable and progressive maritime industry.
17                                                                              CHAPTER IV
18                                               SBSR COMPLIANCE TECHNICAL COUNCIL
19                   SEC.  8.  Standards  and  Regulations  Compliance.  -  MARINA  shall  promulgate  a  set  of
20      standards  and  regulations  which  all  MARINA-registered  shipbuilding  and  ship  repair  entities  are
21      required to comply with in order to avail of the incentives granted under this Act.
22      MARINA shall have the power to promulgate the set of standards and regulations for compliance, which
23       shall be revised every three (3) years. Such standards shall be formulated by MARINA in coordination
24      with all necessary government agencies.
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1                   SEC.  9.  SBSR  Compliance  Technical  Council.  -Pursuant to  the  immediately  preceding
2      section,  there  shall  be  created,  for purposes  of this  Act,  a  Shipbuilding  and  Ship  Repair  (SBSR)
3       Compliance  Technical  Council,  which  shall  accredit  the  shipyard  facilities  and  materials  used  by
4      registered shipbuilding and ship repair entities. The coordinating council shall be comprised often (10)
5       members, that shall include representatives from the private and public sectors. The following shall be
6      de facto members of the coordinating council:
7             I.    Department ofFinance (DOF)
8                                 a.Bureau of Internal Revenue (BIR)
9             II.   Department of Transportation (DOTr)
10                                 a.   Maritime Industry Authority (MARINA)
11                                  b.   Philippine ports Authority (PPA)
12                                 c. Philippine coast Guard (PCG)
13             III. Department of Trade and Industry (DTI)
14                                  a. Bureau of Incentives (BOI)
15             IV. Department of Labor and Employment (DOLE)
16             V.  Department of science and Technology (DOST)
17             VI. Department of Environment and Natural Resources (DENR)
18                                 a. Environmental Management Bureau (EMB)
19                   SEC.  10.  Powers  and  Functions  of the  SBSR  Compliance  Technical  Council.  -  The
20      standards SBSR Compliance Technical council shall have the power and authority to:
21              1.   Act as chair of the SBSR Compliance Technical council in coordination with other concerned
2 2                    Agencies;
23             2.   Set guidelines on the establishment of an SBSR ECO Industrial park;
24             3.   Supervise,   inspect,  and  evaluate  all  registered  shipyard  facilities  to  ensure  and  enforce
25                    compliance  with  the  safety  standards  and  other  regulations  in  accordance  with  applicable
26                    conventions and regulations;
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1             4.   Implement standards for the evaluation and inspection of shipyard facilities and vessels;
2             5.   Require  all  domestic  shipbuilders  or  repairers  to  comply  with  the  operational  and  safety
3                    standards for shipyards set by applicable conventions and regulations, maintain their respective
4                   shipyards in updated and serviceable order in accordance with the standards of the International
5                    Maritime organization (IMO) ;
6             6.   Set offsofety standards for all existing and new shipyard facilities in accordance with applicable
7                    conventions and regulations;
8             7.   Submit to the MARINA its flndings and recommendations on the compliance of the shipyard to
9                    the standards; and
10             8.   Promulgate such rules of procedures for the availment of the incentives provided for under this
11                    Act: Provided, That such rules and regulations cannot change or in any way amend or be contrary
12                    to the intent and puxposes of this Act.
13                   SEC.11. Shipyard Facility safety standards. -All new and existing philippine shipbuilding
14      or repair yard facilities shall undergo a safety standard compliance test prior to commencing operations.
15      The committee, in coordination with MARINA, shall have the power to inspect the shipyard facilities
16      of registered  shipbuilding  and  ship  repair  entities.  The  MARINA  shall  adopt  the  findings  of the
17      Committee during the shipyard evaluation and use the same as a basis to recommend further operation,
18      renovation, or closure of a shipyard facility. The committee shall promulgate such safety standards for
19      the test in accordance with those set by the IMO. Such standards shall be published in newspapers of
20       general circulation.
21                   SEC.   12.  Shipbuilding  and  Ship  Repair  Safety  Standards.  -  All  ships  built  by  or
22      commissioned  from  registered  shipbuilding  and  ship  repair  entities  shall  undergo  a  safety  and
23       seaworthiness test prior to  departing  from the  shipyard  facility.  MARINA  shall  have the power to
24      inspect all such vessels and all equipment on board to ensure compliance with the safety standards.
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1      MARINA shall promulgate such safety and seaworthiness standards for the test in accordance with
2      those set by international organizations related to shipbuilding.  Such standards shall be published in
3       newspapers of general circulation.
4                                                                             CIIAPTER V
5                                                  RESTRICTIONS ON SHIP IMPORTATION
6                    SEC.13. -Three (3) years from the effectivity of this Act, and every three (3) years there from,
7      MARINA shall evaluate the capability of domestic shipbuilders and the capacity of registered shipyards
8      to construct new vessels, including larger classed vessels for operation within the philippine territorial
9       waters.
10                    After  every  evaluation,  MARINA  shall  provide  an  assessment  evaluation  to  the  domestic
11       shipbuilder or domestic shipyard indicating its capability and capacity level in accordance with the rules
12      and regulations promulgated by MARINA.
13                    In  the  first  year  of evaluation,  the  MARINA  shall  determine  the  capability  of MARINA-
14      registered  shipyards to build new vessels below 500  Gross  Tonnage  (GT).  If upon evaluation,  the
15       capability  of MARINA-registered  shipyards  to  build  classed  vessels  below  500  GT  in  quantities
16      sufficient  to  meet  domestic  demand  is  proven,  then  all  domestic  shipowners/operators  shall  be
17       discouraged from importing new or previously owned vessels that are less than 500 GT for the domestic
18      trade  and  vessels  built  in  MARINA-registered  shipyards  shall  be  given  priority  for  entry  in  the
19      Philippines Registry and allowed to operate in the domestic trade.
20                                                                              CHAPTER VI
21                                                     SBSR RESEARCH AND DEVI]LOPMENT
22                    SEC.14. The development and prototyping of noble-type vessels using alternative sources of
23       energy  and  other  emerging  technologies  related to  maritime  activities  such  as,  but  not  limited  to,
24      maritime safety shall be in coordination with the philippine council for Industry, Energy and Emerging
25      Technology Research and Development (PCIEERD) of the Department of science and Technology
26      (DOST). The vessel ®rototype) produced shall be registered as shipbuilding, and ship repair entities for
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1       such puaposes shall be registered as classified exclusively for marine research production. Prototype
2      vessels (for definition) are under the ownership of its Research and Development (R&D) agency/ies
3       and  shall  likewise  be  granted  Pioneer  Status  in  accordance  with  the  provisions  of the  Omnibus
4      Investments code in case produced and commercialized by a local shipbuilder.
5                   SEC.15. Incentives on SBSR Research and Development. -
6             1.   R&D initiatives of the DOST are exempted from the regulatory guidelines for ship registration
7                    and classification provided that the plans are duly reviewed and approved by the SBSR staff.
8             2.   The prototype vessel produced through DOST-GIA (Department of science and Technology-
9                    Grants-in-Aid program) and tagged as marine research production may operate for a period of
10                    one   (1)  year  as  part  of  its  performance  testing  related  to  research,  development,   and
11                    demonstration.
12             3.   MARINA-SBSR, through the cooperation of the DOST-GIA, will craft a policy that will provide
13                    a clear adoption policy on the use of locally developed R&D marine research production one ( 1 )
14                   month after the completion of the vessel.
15             4.   The technology adaptors (ship operators/manufacturers) that will adopt locally developed R&D
16                   marine research through a duly notarized technology transfer agreement/technology licensing
17                    are entitled to a research tax break for a period of five (5) years.
18                                                                            CIIAPTER VII
19                                                     SBSR RESEARCH AND DEVELOPMENT
20                   SEC.16. -MARINA, in partnership with TESDA and CHED, shall spearhead the development
21      of training progranis such as competency standards, training regulations, competency assessment tools,
22      and competency-based curiculum development in the SBSR.
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1                                                                            CHAPTER VIII
2         NATIONAL DEFENSE AND ARMED FORCES AND OTHER GOVI]RNMENT VIISSELS
3                   SEC.17. National Defense and Armed Forces and other Government vessels. -Vessels
4      built exclusively for the use of any branch of the Armed Forces and other government vessels of the
5       Philippines shall be treated as a sale to the government and shall be exempt from national internal
6      revenue taxes: Provided, That the vessels meet the standards and requirements of the specific branch of
7      the Armed Forces of the philippines (AFP): Provided, further, That the registered shipbuilding and ship
8      repair  entities  is  awarded  or  granted  the  Project  or  commission  in  accordance  with  the  rules  and
9      regulations for the bidding purposes.
10                                                                            CHAPTER VIII
11                                                               FEES, FINES, AND PENALTIHS
12                   SEC.18. Fees, Fines, and penalties. -MARINA, upon notice and hearing and a determination
13       of the existence of any breach or violation of the provision of this Act or any rules and regulations issued
14      pursuant thereto, shall have the power and authority to:
15             (1 ) Suspend or revoke any certificates of public convenience, license, permit, accreditation, or other
16                   form of authority issued to any domestic shipowner/operators who shall violate any provision
17                    of this Act or any rules and regulations issued pursuant thereto or any condition imposed on such
18                    certificate of public convenience,license, permit, or accreditation;
19             (2) Impose a fine on domestic shipowner/operator who shall operate without a valid certificate of
20                   public convenience,license, permit, accreditation, or other form of authority;
21             (3) Impose a fine on a domestic shipowner/operator in an amount to be determined by the MARINA
22                   for refusing to accept or to cany passenger or cargo without just cause or for engaging in any
23                    prejudicial, discriminatory, or disadvantageous act towards any class of passengers or shippers;
24             (4) Impose  a fine  on  any  domestic  shipowner/operator  in an amount to  be  determined  by  the
25                    MARINA   or   suspend,   revoke   the   certificate   of  public   convenience   of  such   domestic
26                   shipowner/operator or both, who shall fail to meet the standards of such safety or who refuses
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1                   to comply with or violates safety regulations imposed by the MARINA or fails to maintain its
2                    vessel in safe and serviceable condition;
3             (5) Impose  a  fine  on  any  domestic  shipowner/operator  in  an  amount  to  be  determined  by  the
4                   MARINA or impose such other penalty, including the revocation of any certificate or license
5                    who fails to procure or renew required insurance policies;
6             (6) Impose  a  fine  on  any  domestic  shipowner/operator in an amount to  be  determined by  the
7                    MARINA or impose such penalty, including the revocation of any certificate of license who
8                   fails to meet or maintain safe marming requirements; and
9             (7) Impose such other fines and penalties the MARINA may deem necessary and appropriate in
10                    order to enforce the provision of this Act.
11                                                                                 CHAPTER X
12                              LOCAL GOVERNMENT ENGAGEMENT AND CONSULTATION
13      SEC.19. Consultation with provincial Governments. -Prior to the establishment of any shipyard
14      or ship repair facility within thejurisdiction ofa province in the philippines, MARINA alongside the
15       shipbuilding or ship repair entity intending to establish such facilities shall engage in consultations
16      with the provincial Governor of the concerned province. The purpose of these consultations shall
17       include, but are not limited to:
18      (a) Inform the provincial Government of the planned shipbuilding or ship repair activities and their
19      potential impacts on the local community and economy;
20      (b) Discuss and address any concerns or conditions that the provincial Government may have
21      regarding the establishment and operation of the shipyard or ship repair facility;
22       (c) Explore opportunities for local workforce development, environmental protection, and other
23       community benefits arising fi.om the shipyard or ship repair operations;
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1      (d) Ensure that the establishment and operation of the shipyard or ship repair facility are in alignment
2      with the provincial development plans and policies, and contribute positively to the local community.
3                                                                              CHAPTER XI
4                                             IMPLEMENTING RULES AND REGULATIONS
5                   SEC. 20. Imp]ementing Rules and Regulations. -MARINA shall promulgate the necessary
6      rules  and  regulations,  and  issuances  for the  implementation  of this  Act,  in  coordination with  the
7      Department of lnterior and Local Government (DILG) and other relevant agencies, within one (1) year
8      from its effectivity.
9                    MARINA   shall   outline   the   procedural   requirements,   timelines,   and   mechanisms   for
10      consultation, as well as the roles and responsibilities of each party involved.
11                    MARINA  shall  likewise  coordinate  with  the  necessary  administrative  agencies  for the  full
12      implementation of this Act. Provided, That such rules and regulations, and issuances cannot amend or
13      contradict the intent of any of the provisions and purposes of this Act.
14                   MARINA shall convene every year and assess the need for any amendments to the implementing
15       rules and regulations.
16                                                         CHAPTER XII FINAL PROVISIONS
17                    SEC. 21. Separability clause. -If, for any reason, any section, subsection, sentence, clause, or
18      temi of this  Act is  held to be  illegal,  invalid,  or unconstitutional,  such parts not affected by  such
19       declaration shall remain in full force and effect.
20                    SEC. 22. Repealing clause. -The provisions of c.A.146, insofar as the same applies to the
21      operation, management control and regulation ofvessels, lines, ferries, watercraft, and the like, as well
22       as the provisions of presidential Decree (PD) 474, E0125/125A, R.A. No. 9295 and such other laws,
23       PDs, Eos, issuances, rules, and regulations or parts thereof, which are inconsistent with the provisions
24      of this Act, are hereby repealed, amended, or modified accordingly.
25                    SEC. 23. Effectivity. -This Act shall take effect after fifteen (15) days following its publication
26      in at least two (2) newspapers of general circulation.
14


Approved,
15