SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
'stl1atr 
t~lh~r t~f fqe >rrrd:Rg 
'13 
JUL -4 
1\11 :18 
S. No. 
493 
Introduced by Senator Antonio "Sonny" F. Trilianes IV 
EXPLANATORY NOTE 
History has shown that the wealth and destinies of the world's greatest nations have been 
determined and charted by the manner in which they conducted their maritime affairs. Our 
country is now at the crossroads of development and our maritime sector can rightfully claim 
that it has made a significant contribution towards achieving this feat. The Philippines is, after 
all, a maritime country. It is an archipelago of 7, I 08 islands with a territorial sea that is both a 
sea chest of vast marine wealth and natural highway for the carriage of trade and commerce. 
With the coming into force of the United Nations Convention on the Law of the Sea in 
November 16, 1994, the Philippines has thereby gained an Exclusive Economic Zone totaling as 
much as 652,800 square nautical miles in area, with sovereign rights over the exploration and 
exploitation of all living and non-living resources found in the water column as well as in the 
seabed. Our fisheries sector employs around one million Filipinos and contributes much to GNP. 
Properly explored and exploited, our vast waters and continental shelf promise to provide even 
greater opportunities for livelihood for our people. 
The Filipino people, scattered around these numerous islands, have since time immemorial 
depended on the sea for transportation. Even in this age of great progress in air and land 
transportation shipping remains the most economical, most efficient, and most important means 
of interisland. 
Considering the relevance of a Department of Maritime Affairs to the development of the 
national patrimony and to the achievements of the country's long-term goal of self-reliance and 
economic self-sufficiency, the sponsor believes that the approval of this bill is of urgent priority. 
~±t-
ANTONIO 'SONNY' F. TRILLANES IV 
Senator 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
; 
4B3 
S.No. __ 
}ittmtt' 
JJ}Ht;r ttf HIE ~jJfH'tnr~ 
"13 
JUL -4 All :18 
Introduced by Senator Antonio "Sonny" F. Triiianes IV 
AN ACT 
CREATING THE DEPARTMENT OF MARITIME AFFAIRS PROVIDING FUNDS 
THEREFOR AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
1 
CHAPTER! 
2 
SECTION 1. Title. - This Act shall be known as the "Department of Maritime Affairs 
3 
Act. " 
4 
5 
SEC. 2. Declaration of Policy. - In keeping with Article XII, paragraph 2 of the 
6 
Philippine Constitution which provides that, "the State shall protect the nation's marine wealth in 
7 
its archipelagic waters, territorial sea, and exclusive economic zone and reserve its use and 
8 
enjoyment exclusively for Filipino citizens," it is hereby declared to be the policy of the State to 
9 
achieve a marine-based economy. It shall further be the policy of the State to promote, ensure, 
10 
and coordinate the economic viability, protection, safety, and development of ports, shipping, 
11 
shipbuilding, seafaring, and other industries or activities which resolve around the sea as a 
12 
medium of transport. 
13 
14 
CHAPTER II 
15 
SEC.3. Creation of a Department of Maritime Affairs. - Pursuant to the above-
16 
mentioned national policy, there is hereby created a Department of Maritime Affairs, hereinafter 


. . 
' 
referred to as the Department, which shall, among others, recommend and implement the 
2 
Govermnent's policies, plans, and programs for the promotion of safety and development of 
3 
ports, shipping, shipbuilding, seafaring, and other activities in the maritime industry. 
4 
5 
SEC. 4. Powers and Functions. - The Department shall perform the following powers 
6 
and functions: 
7 
a) Encourage, promote, guide, and when necessary, regulate such business activities 
8 
relative to the exploration, exploitation, development, management, trade and 
9 
utilization of marine resources including marine transportation, port system and other 
10 
related activities; 
11 
b) Assess, review and, in coordination with relevant govermnent agencies, provide 
12 
direction to research and development programs including identification of source of 
13 
marine resources and determination of their commercial feasibilitY for development 
14 
and utilization; 
15 
c) Give full and complete effect to all International Maritime Organization Conventions 
16 
to which the Republic of the Philippines at present is, or in the future shall be a Party; 
17 
d) Conduct in-depth studies on all policy areas and options with respect 
to the 
18 
country's implementation of IMO Conventions, the United Nations Convention on 
19 
the Law of the Sea, and other pertinent International conventions and national laws; 
20 
e) Monitor foreign and domestic developments relative to the formulation and 
21 
implementation of the country's strategy in implementing the provisions of the 
22 
United Nations Convention on the Law of the Sea and other international conventions 
23 
including the determination of the maritime area of the country and to protect the 
24 
integrity of the said area; 
25 
f) Recommend measures to provide assistance to the private sector for the improvement 
26 
and upgrading of maritime transportation and infrastructure like ports, lighthouse; 
2 


, . . . 
1 
shipyards, fishports, refrigeration facilities, processing plants and other related 
2 
facilities; and 
3 
g) Promote, develop and monitor the continuing education, training and qualification, 
4 
availability and deployment of seafarers and other maritime manpower aboard local 
5 
and foreign vessels consistent with international standards and conventions; and 
6 
h) Generally exercise all powers and duties necessary to implement the national policy 
7 
on maritime affairs pursuant to the objectives of this Act. 
8 
9 
SEC. 5. Organization. - The Department shall consist of the following offices and 
10 
agencies: 
11 
a) Department Proper 
12 
b) Maritime Industry Development Authority 
13 
c) Philippine Ports Authority 
14 
d) National Seafarers Administration 
15 
e) Philippine Merchant Marine Academy 
16 
f) National Maritime Polytechnic 
17 
g) Maritime Research Institute 
18 
h) Philippine Coast Guard 
19 
20 
SEC. 6. Department Proper. -The Department Proper shall consist of the following 
21 
offices: 
22 
a) Office of the Secretary. - The Office of the Secretary shall consist of the Secretary 
23 
and his immediate staff. 
24 
b) Undersecretaries. - The Secretary shall be assisted by three (3) Undersecretaries, 
25 
appointed by the President upon the recommendation of the Secretary, Each 
3 


1 
Undersecretary shall have control and supervision over the respective offices and 
2 
services assigned to him by the Secretary. 
3 
c) Assistant Secretaries. - The Secretary shall also be assisted by four (4) Assistant 
. 
I 
, 
4 
Secretaries, appointed by the President upon the recommendation of the Secretary. 
5 
This will be one each for Merchant Marine Administration, Maritime Industry 
6 
Development, Ports and Harbors, and the Coast Guard. 
7 
8 
SEC. 7. Head of the Department. - The head of the Department, hereinafter referred to 
9 
as the Secretary, shall be appointed by the President subject to confirmation of the Commission 
10 
on Appointments. 
11 
12 
SEC. 8. General Powers, Terms of Offlce ad Compensation of the Secretary.- The 
13 
authority and responsibility for the exercise of the Department's power and functions shall be 
14 
vested in the Secretary, who shall hold office at the pleasure of the President and shall receive 
15 
the compensation, allowances, and other emoluments to which heads of departments are entitled. 
16 
17 
SEC. 9. Specific Power and Functions of the Secretary. - The powers and functions of 
18 
the Department shall be exercised by and through the Secretary, who shall: 
19 
a) exercise control and supervision over all offices and bureaus under the Department; 
20 
b) coordinate all policies and programs relating to maritime and marine affairs as 
21 
provided in this Act; 
22 
c) undertake consultations with other member of the Cabinet and other members of 
23 
Goverrunent officialdom relatirtg to maritime and marine matters and recommend 
24 
policies and programs to the President relative thereto; 
25 
d) advise the President of the activities, programs, plans and all information necessary or 
26 
relevant to maritime or marine affairs. 
4 


SEC. 10. Offices in tile Department. - The Department shall have, under the supervision 
2 
and control of the Secretary, an Administrative Service, a Financial and Management Service, 
3 
and a Planning Service with the following functions: 
4 
a) The Administrative Service shall be responsible for providing the Department with 
5 
sen'ices relating to personnel, legal assistance, information, records, supplies, 
6 
equipment, and custodial work; 
7 
b) The Financial and Management Service shall be responsible for providing the 
8 
Department with staff advice and assistance on budgetary, financial, and management 
9 
improvement matters; 
10 
c) The Planning Services shall be responsible for providing the Department with 
11 
services relating to planning, programming, project development, including 
12 
development policies and progr~s and priorities as may be warranted by domesti~ 
13 
and international development. 
14 
15 
SEC. 11. Transfer of Bureaus, Offices and Agencies. - The following bureaus, offices 
16, and agencies will be transferred from their respective departments (as shown in parenthesis) to 
17 
the Department of Maritime Affairs. 
18 
a) Maritime Industry Authority (DOTC) 
19 
b) Philippine Ports Authority (DOTC) 
20 
c) Philippine Merchant Marine Academy (DOTC) 
21 
d) Philippine Coast Guard (DND) 
22 
e) Seafarers Section of the Philippine Overseas Employment Administration (DOLE) 
23 
f) Seafarers Section of the Overseas Workers Welfare Administration (DOLE) 
24 
g) National Maritime Polytechnic (DOLE) 
25 
h) Maritime Training Council (DOLE) 
5 


CHAPTERllI 
2 
THE MARITIME INDUSTRY DEVELOPMENT AUTHORITY 
3 
SEC. 12. The Maritime Industry Development Authority. To carry out the policies and 
4 
purposes of promoting the growth and developing .the economic viability of the maritime 
5 
ind~stry, the Maritime Industry Authority together with its capital assets, equipment, an~ 
6 
existing budget is 
hereby transferred from the Department of Transportation and 
7 
Communications to the Department of Maritime Affairs and is hereby renamed the Maritime 
8 
Industry Development Authority. 
9 
10 
SEC. 13. Composition and Organization. - The Maritime Industry Development 
II 
Authority is hereby created initially consisting of the existing officials and employees of the 
12 
Maritime Industry Authority, headed by an Administrator. 
13 
14 
SEC. 14. Powers and Functions. - The Maritime Industry Development Authority shall 
15 
have the following powers and functions: 
16 
a) Develop and formulate plans, policies, programs, projeets, standards, specifications 
17 
and guidelines geared toward the promotion and development of the commercial and 
[8 
economic viability of the maritime industry, the growth and effective regulation of 
19 
shipping enterprises; 
20 
b) Establish, prescribe and regulate. routes, zones andlor rates pertinent to the operatioQ. 
21 
of particular operators of public water services; 
22 
c) Issue Certificate of Public Convenience for the operation of domestic and overseas 
23 
water carriers; 
24 
d) Determine fix and/or prescribe changes and/or rates pertinent to the operation of 
25 
public water transport utilities, facilities and services except in cases where charges or 
26 
rates are established by international bodies or associations of which the Philippines 
6 


'. 
1 
is a participating member or by bodies or associations recognized by the Philippine 
2 
Govermnent as the proper arbiter of such charges or rates; 
3 
e) Accredit maritime enterprises engaged in shipbuilding, ship repair, ship breaking, 
4 
domestic and overseas shipping, ship management and agency; 
5 
f) Establish and prescribe rules and regulations, standards and procedures for the 
6 
efficient and effective discharge of the above functions, and 
7 
g) Perform such other functions as may now or hereafter be provided by law. 
8 
9 
CHAPTER IV 
10 
THE pmLIPPINE PORTS AUTHORITY 
11 
SEC. 15. The Philippine Ports Authority. - To carry out the policies and purposes of 
12 
integrating and coordinating port planning, development, control and operations at the national 
13 
level, and at the same time promote the growth of regional port bodies responsive to the needs of 
14 
their individual localities, the Philippine Ports Authority, including all its capital assets, 
15 
equipment and existing budget, is hereby transferred from the Department of Transportation and 
16 
Communications to the Department of Maritime Affairs. 
17 
18 
SEC. 16. Composition and Organization. - The Philippine Ports Authority is hereby 
19 
transferred consisting of its existing officials and employees, headed by the General Manager. 
20 
21 
CHAPTER V 
22 
THE NATIONAL SEAFARERS ADMINISTRATION 
23 
SEC. 17. The National Seafarers Administration. - in order to carry out the policies and 
24 
purPoses of promoting, developing and monitoring the continuing education, training, welfare 
25 
and deployment of Filipino seafarers and other maritime workers aboard local as well as foreign 
26 
vessels, consistent with international practices, standards and conventions the National Seafarers 
7 


'. 
Administration is hereby created. The officials and personnel of the Philippine Overseas 
2 
Employment Administration involved in the administration of Filipino seafarers are hereby 
3 
transferred to the National Seafarers Administration. Likewise, all equipment, records and the 
4 
existing budget appertaining to such functions and duties, will be transferred to the National 
5 
Seafarers Administration. 
6 
7 
SEC. 18. Powers and Functions. - The National Seafarers Administration shall have the 
8 
following powers and functions: 
9 
a) Develop and form)llate plans, policies, programs and procedures for the education, 
10 
training and qualification, welfare, employment and protection of the rights of 
II 
Filipino seafarers; 
12 
b) Maintain and complete registry of Filipino seafarers; 
13 
c) Provide free placement services for seafarers; 
14 
d) Secure the best possible terms and conditions of employment for seafarers, and to 
15 
ensure compliance thereof; 
16 
e) Regulate the activities of manning agents or representatives of shipowner in the hiring 
17 
of seafarers for overseas employment; 
18 
f) Ensure that the requirements of pertinent international organizations and maritime 
19 
conventions on the standards of training and qualifications of Filipino seafarers are 
20 
fully complied with; 
21 
g) Accredit and certify maritime training centers to ensure proper compliance with the 
22 
provisions enumerated in paragraph f) above; 
23 
h) Provide the necessary technical expertise on the supervision of nautical aridmarifie 
24 
engineering schools and colleges; 
25 
i) Have original and exclusive jurisdiction over all matters or cases, including money 
26 
claims, involving employer-employee relations arising out of any law or employment 
8 


1 
contracts involving Filipino seafarers for overseas employment. In such cases, the 
2 
decision of the National Seafarers Administration shall be final and unappealable; 
3 
j) Establish a proper and legal forum for the disciplining C?f errant seafarers in order to 
4 
protect the reputation and excellent image of the good Filipino seaman; and 
5 
k) Perform such other functions as may now or hereafter be provided by l!iw. 
6 
7 
CHAPTER VI 
8 
THE NATIONAL MARITIME POLYTECHNIC 
9 
SEC. 21. Tile National Maritime Polytechnic.- To serve as the primary institution for 
10 
the'upgrading of skill of the merchant marine, the National Maritime Polytechnic (NMP) 
11 
including all its capital assets, equipment, and existing budget, is hereby transferred from the 
12 
Department of Labor and Employment to the Department of Maritime Affairs. 
13 
14 
SEC. 22. Composition and Organization.- The National Maritime Polytechnic is hereby 
15 
transferred consisting of its existing officials and employees, headed by the Executive Director 
16 
and shall continue to perform all its functions and retain all its powers, rights, and prerogatives as 
17 
mandated by its charter. Provided, however, that the chair of the NMP Board of Trustees shall be 
18 
transferred from the DOLE Secretary to the DMA Secretary. 
19 
20 
CHAPTER VII 
21 
THE MARITIME RESEARCH INSTITUTE 
22 
SEC. 23. The Maritime Research Institute. - The Maritime Research Institute is hereby 
23 
created as an -attached agency under the Department of Maritime Affairs. 
24 
25 
SEC. 24. Organization.- It shall be composed of: 
9 


1 
a) Maritime Research Institute Board of Governors which shall serve as the governing 
2 
board; and 
3 
b) The "Administration" which, as the executive ann, shall run the Institnte's day-to-day 
4 
activities and shall be headed by the executive director. 
5 
6 
SEC. 23. Functions. - The Maritime Research Institute shall have the following 
7 
functions: 
8 
a) To spearhead and encourage the development of a maritime research program to aid 
9 
the formulation of policies on all aspects of maritime affairs; 
lob) To harness and propagate the latest development in maritime technology in the fields 
11 
0 f shipbuilding, marine engineering, ship propulsion, cargo handling, sip 
12 
management and other such developments and to utilize and adopt the latest in 
13 
information technology to serve National Maritime Policy goals; 
14 
c) Develop, propagate, and enhance national awareness of maritime issues through a 
. 
I 
15 
. comprehensive infurmation program; 
16 
d) Publish information; books, monographs, and other literature in connection with the 
17 
above functions; and 
18 
e) Perform such other functions as may now or hereafter be provided by law. 
19 
20 
CHAPTER IX 
21 
THE PH ILIPPINE COAST GUARD 
22 
SEC. 24. Establishment and Transfer. - The Philippine Coast Guard, hereinafter 
23 
referred to as PCG, is hereby established as a major service separate and distinct from the 
24 
Philippine Navy. It shall henceforth be transferred from the Department of National Defense to 
25 
the Department of Maritime Affairs as a bureau thereof 
10 


SEC. 25. General Power and Functions of the peG • • The peG shall be the agency 
2 
primarily responsible for safety of life and property at sea, the protection of the marine 
3 
environment and, together with the Philippine Navy, the security of all marine resources foun4 
4 
within the Exclusive Economic Zone and within all other waters and seabed's subject to the 
5 
jurisdiction of the Republic of the Philippines. It shall likewise perform such other functions as it 
6 
is authorized to perform at the time of the effectivity of this Act. 
7 
8 
SEC. 26. Specific Functions. - The Philippine Coast Guard shall perform the following 
9 
specific functions: 
10 
a) Promulgate and enforce maritime rules and regulations for the promotion of safety of 
11 
life and property at sea; 
12 
b) Render aid to distressed persons and vessels on the high seas and waters subject to 
13 
the jurisdiction of the Philippines, to furnish clothing food, lodging, medicines and 
14 
necessary supplies and services to persons succored; and to take appropriate actions 
15 
on remains of those who have perished; 
16 
c) Register all Philippine merchant vessels; to issue safety certificates of Philippine 
17 
vessel; to approve pl!!ns for the construction, repair, or alternation of vessels; to 
18 
administer load line requirements for the promotion of the safety of life and property 
19 
at sea; conduct annual or periodic surveys and inspection of all Philippine-registered 
20 
vessels and issue certificates prescribed in the regulations consistent with 
21 
international standards; collect tonnage and other fees directly related to vessel safety 
22 
inspection, documentation and compliance with intemational standards; to assist in 
23 
the development of a single Philippine Classification Society; 
24 
d) Formulate, issue, administer, and enforce the Code of Maritime Regulations for the 
25 
design, construction, equipment, manning, operation, repair, alteration, and 
26 
maintenance of all Philippine-registered vessels and all off-shore facilities employed 
11 


in the exploration and exploitation if marine and seabed resources within the waters 
2 
subject to Philippine jurisdiction; 
3 
e) Conduct inquiries, visits, examination, and inspection on vessels in waters subject to 
4 
the jurisdiction of the Philippines for the promotion of safety of life and property at 
5 
sea and for the protection ofthe marine environment; 
6 
t) Promulgate and enfurce rules and regulations in the construction, outfitting, manning, 
7 
documentation and operation of motor boats, fishing vessels, and pleasure craft not 
8 
required to be issued a Certificate of Philippine Registry; 
9 
g) Promulgate and enforce rules and regulations on maritime communications to 
10 
promote safety of life and property at sea; 
11 
h) Regulate salvage operations and destroy or remove hazards to navigation in order to 
12 
promote safety of life and property at sea and to preserve the marine environment; 
13 
i) Investigate marine accidents, including all marine protests relative to the 
14 
responsibility and liability of ship owner and officers and to impose administrative 
15 
sanctions appertaining thereto; 
16 
j) QualifY and issue licenses to harbor pilots and bay and river patrons through proper 
17 
examinations; 
18 
k) Conduct proper examinations and carry out such other tasks of the Board of Marine 
19 
Examiners for the issuance and up grading of Merchant Marine officers licenses; 
20 
I) Develop, establish, operate, and maintain aids to navigation facilities and collect aids 
21 
to navigation dues fur this purpose from users thereof; 
22 
m) Develop, establish, operate, and maintain marine environmental protection facilities; 
23 
n) Enforce laws and to promulgate and enforce rules and regulations for the prevention 
24 
of marine pollution within the territorial waters and Exclusive Economic Zone of the 
25 
Philippines and determine and inJpose penalties for violations thereof; 
12 


0) Impose administrative penalties of maritime violations and offenses incurred by 
2 
vessels within the territorial waters of the Philippines as well as violations by 
3 
Philippine-registered vessels in foreign and international waters without pr~udice to 
4 
the civil liabilities of the offender in accordance with existing laws; 
5 
p) Conduct port State control inspections on foreign-flagged vessels calling at Philippine 
6 
ports in accordance with national laws and regional and international agreements; 
7 
q) Detain ships found to be with deficiencies that may pose a grave threat to the safety 
8 
of the passengers and crew and to the vessel and its cargo, or to the marine 
9 
environment until such time that the deficiencies are rectified in accordance with 
10 
established rules and regulations; 
11 
r) Promulgate, administer, and enforce rules and regulations giving effect to the 
12 
provisions ofIntemational Treaties, Conventions, Protocols and Municipal Laws fOr 
13 
the safety of life and property at sea; 
14 
s) Represent the Philippine government in international and regional for a concerning. 
15 
INO and other maritime matters; 
16 
t) Collect international tonnage fees for Philippine-registered vessels in the international 
17 
trade to take care of Philippine obligation with the International Maritime 
18 
Organization' 
19 
u) Assist other governmental agencies in the performances of their law enfOrcement 
20 
functions against sea jacking, piracy, illegal entry, illegal fishing, illegal gathering Of 
21 
corals and other marine products, smuggling and other frauds and violations that may 
22 
be committed within the waters of the Philippines. For this purpose, surveillance 
23 
boarding and inspections by the Philippine Coast Guard may be made on vessels 
24 
entering or leaving Philippine waters. In the performance of these functions, members 
25 
of the Philippine Coast Guard shall act as a law enforcement officers of such 
26 
agencies; 
13 


v) Organize, train, and supervise the Philippine Coast Guard Auxiliary for the purpose 
2 
of assisting in conducting search and rescue, marine environmental protection, 
3 
maintaining aids to navigation and such other activities that enhance civil relations to 
4 
include civic action, youth development, and related activities; 
5 
w) Maintain and operate all government vessels above 50 gross tons, not otherwise 
6 
assigned to the Philippine Navy, except tug boats and dredges used by the Philippine 
7 
Ports Authority, in such case, the operations shall solely be fur the mission of the 
8 
agency concerned except the PCG may utilize the vessels for search and rescue 
9 
purposes when not on actual mission; and 
lOX) Perfurm such other functions as may now hereafter be provided by law. 
11 
12 
SEC. 27. National Emergencies. - In time of war or national emergency, the President 
13 
may direct the PCG to operate under the Armed Forces of the Philippines. Such authority shall 
14 
continue until the President revokes the same. 
IS 
16 
SEC. 28. Organization. - The PCG shall be headed by a Flag Officer equivalent in rank 
17 
to the Flag-Officer-in-Command, Philippine Navy. It shall consist of uniformed and non-
18 
uniformed personnel with defined Coast Guard Table of Organization specialties, ranks and 
19 
ratings. It shall also have an independent administrative and logistics system. The Commandant, 
20 
Philippine Coast Guard may modify its present organizational structure effectively and efficiently 
21 
carry out PCG-defined functions. 
22 
23 
24 
25 
SEC. 29. PersonneL - PCG personnel shall be governed by the fullowing rules: 
a) All personnel assigned to the Philippine Coast Guard shall be transferred out of the 
Philippine Navy (PN) upon effectivity of this Act provided that the transfer may be 
14 


1 
allowed in and out of the Navy and the AFP within the transition period provided 
2 
herein; and 
3 
b) The PCG shall continue to source its commissioned officers form the same fields as 
4 
that of the PN; it also shall, until such time that a Philippine Coast Guard Academy 
5 
shall have been organized, be authorized to recruit graduates from the Philippine 
6 
Merchant Marine Academy under tenns and conditions to be determined by the 
7 
Secretary of Maritime Affairs; Provided that the PCG may accept graduates with 
8 
baccalaureate degrees to be commissioned in the PCG service from other merchant 
9 
marine institutions and other schools recognized by the Government. 
10 
11 
SEC. 30. Relations with Other Agencies.-
12 
a) The Philippine National Police shall primarily perfurm law enfurcement activities in 
13 
the maritime environment in pursuance of the provisions ofthe Revised Penal Code, 
14 
provided, that nothing in this Act shall prevent the appropriate PNP unit from being 
15 
deputized by the appropriate agency to perform the respective maritime law 
16 
enforcement function in coastal areas; and 
17 
b) Consistent with the objectives of the National Defense Act, in the pursuit ofreserv~ 
18 
training, and in the interest of keeping abreast of current developments in maritime 
19 
transportation, the Commandant, Philippine Coast Guard may allow the periodic 
20 
service of duty qualified and licensed Philippine Coast Guard personnel on board 
21 
Philippine-registered merchant vessels under such rules and regulations as the 
22 
Commandant may prescribe. 
23 
24 
SEC. 31. Transitory Provisions. - The peG shall be governed by the following 
25 
provisions: 
15 


• 
, 
a) Officers in the grade ofPN Flag and Captain who have had considerable tours of duty 
2 
with PCG may opt to join the peG and likewise those already with the PCG ma yopt 
3 
to leave within the initial year upon the effectivity of this Act after which they shall 
4 
no longer be alIowed to transfer; 
5 
b) Other Philippine navy and AFP personnel below the grade of Captain PN or 
6 
equivalent who have qualified 'for Coast Guard eligibility may also join the PCG 
7 
subject to the vacancies of the prescnbed organizational rank structure within the 
8 
transition period of one (1) year. 
9 
10 
SEC. 32. peG Funds and Expenditures. - The accrued income of the peG from its 
II 
operation and exercise of various regulatory functions shall be declared as peG Trust Receipts 
12 
and shall be made available to the peG for the improvement and maintenance of basic services 
13 
in the same manner prescribed in Executive Order No. 1002. These funds shall be utilized only 
14 
for the following .expenditures in an appropriate budget as prescribed in Executive Order No. 
IS 
1002, subject to approval ofthe Secretary of Maritime Affairs: 
16 
a) Printing .of forms and certificates directly related to the services for which they were 
17 
collected: 
18 
b) Provision for other supplies and services fur which the fees were collected; 
19 
c) Participation in international organizations and commitments to included payment of 
20 
annual assessment and dues to the International Maritime Organization (IMO) and 
21 
International Association of Lighthouse Authorities (IALA) and fur other 
22 
international agreements When the fees for the same cannot be fully covered in the 
23 
annual appropriations; 
24 
d) Maintenance of the International Maritime Organization (IMO) attache post as 
25 
prescribed under Executive order No. 162, when funds for the same cannot be fully ,. 
26 
covered in the annual appropriations. 
16 


• 
SEC. 33. Assets.- All assets of the PG including all its vessels, armaments, vehicle and 
2 
their accessories, building, real estates, lighthouses and other properties and records are hereby 
3 
vested in the newly established PCG: Provided that a Transfer and Liquidation of committee 
4 
shall be created to undertake the disposition and appropriate inventory of all these properties. 
5 
6 
CHAPTER XI 
7 
FINAL PROVISIONS 
8 
SEC. 34. Appropriation. - To carry out the purposes of this Act, there is hereby 
9 
appropriated out of any funds of the National Treasury not otherwise appropriated, the sum of. 
10 
Fifty million pesos (P50, 000, 000.00) for the operation and maintenance of the Department; 
11 
Thereafter, the appropriation for the Department, its bureaus, offices and agencies shall be 
12 
included in the annual General Appropriations Act. 
13 
14 
SEC. 35. Appropriations of Offices and Agencies to be transferred. - All offices, 
I 
15 
bureaus, and agencies being transferred to the Department of Maritime Affairs shall continue to . 
16 
operate using all funds already appropriated to them for the rest of the fiscal year in which this 
17 
Act was approved. 
18 
19 
SEC. 36. Repealing and ModifYing Clause.- PD 857, RA 3680, RA 5173, PD 601, LOI 
20 
1404, EO 493, PD 474, EO 125, EO 125-A, and all other laws, executive orders, rules and 
21 
regulations inconsistent herewith are hereby repealed, amended, or modified accordingly. 
22 
23 
SEC. 37. Effectivity. - This Act shall take effect fifteen (IS) days after its publication in 
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a newspaper of general circulation 
Approved, 
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