NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
of till' £• i . -’tiiiv’
*22 NQV 29 A10 '46
SENATE
S. No.
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
ESTABLISHING THE SCOPE AND PROCEDURE FOR PHILIPPINE SHIP 
REGISTRY, RECOGNITION AND ENFORCEMENT OF MARITIME CLAIMS, AND 
LIMITATION OF LIABILITY, AS WELL AS PROVIDING ESSENTIAL 
INCENTIVES, TO PROMOTE A COMPREHENSIVE AND ORDERLY PHILIPPINE 
SHIP REGISTRY SYSTEM FOR THE REGULATION OF VESSELS CARRYING 
THE FLAG STATE
EXPLANATORY NOTE
The Philippines is widely known to be a major supplier of global maritime 
professionals on board vessels in the world. According to the Maritime Industry 
Authority (MARINA), the country with over 700,000 registered seafarers, has only a 
fleet of 100 overseas ships flying the Philippine flag with 2.24-million gross tonnage 
as of September 2022. In contrast to the global scale, Philippines accounts for about 
36 percent of the 1.9 million seafarers serving the global fleet, but only about a 
hundred ships of the estimated 75,000 oceangoing vessels.
This bill aims to enhance and rationalize the Philippine maritime industry by 
establishing a ship registry and procedures in registration of ships in compliance with 
international maritime conventions, regulations and practices. This bill also aims to 
ensure that Filipino owned and manned maritime fleets or vessels comply with the 
minimum global standards of reliability, safety, competitiveness and effectiveness. 
This will encourage the expansion in Philippine international trade and encourage 
Philippine vessel acquisition, development, modernization and expansion.
In view of the urgent need for a uniform standard on ship/vessel registration 
in the country, immediate enactment of this bill is earnestly sought
RAMON JTONG REVILLA, JR


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
s. No. 1564
7fk'
•22 NOV 29 A10 M
Rl:CEIV.J 3V
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
ESTABLISHING THE SCOPE AND PROCEDURE FOR PHILIPPINE SHIP 
REGISTRY, RECOGNITION AND ENFORCEMENT OF MARITIME CLAIMS, AND 
LIMITATION OF LIABILITY, AS WELL AS PROVIDING ESSENTIAL 
INCENTIVES, TO PROMOTE A COMPREHENSIVE AND ORDERLY PHILIPPINE 
SHIP REGISTRY SYSTEM FOR THE REGULATION OF VESSELS CARRYING 
THE FLAG STATE
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Philippine Ship Registry
2 
System Act.
3 
Sec. 2. Declaration of Policy. — It is the policy of the State:
4 
a. To establish the Philippines as a leading maritime nation and respected flag
5 
State;
6 
b. To ensure that Filipino-owned-and-manned maritime fleets or vessels are
7 
strengthened and assisted to meet the minimum global standards for reliability,
8 
safety, competitiveness, and effectiveness;
9 
c. To provide protection to our merchant marine fleets, and help expand Philippine
10 
international trade;
11 
d. To encourage Philippine vessel acquisition, development, modernization and
12 
expansion through systemized and sustainabie programs;
13 
e. To provide policies that will attract more ship owners to register under Philippine
14 
flag, thus ensuring the country's economic growth;
15 
f. To align the tax structure for its domestic and overseas shipping fleet to make
16 
it competitive; and


1 
g. To provide a mechanism for the early adoption and implementation of
2 
international maritime regulations and conventions.
3 
Sec. 3. Implementing Agency. — The Maritime Industry Authority (MARINA) shall
4 
be the implementing agency of this Act. The MARINA shall provide secretariat support
5 
in the enforcement of this Act.
6 
Sec. 4. Definition of Terms. — As used in this Act:
7 
a. /l/resf-refers to the attachment of a vessel by judicial process through an order
8 
of a competent court in order to secure the enforcement of a maritime claim,
9 
which attachment shall produce the effect of detaining or restricting the
10 
removal of a ship in execution or satisfaction of a judgment;
11 
b. Bareboat charter refers to a contract for the lease of a ship, for a stipulated
12 
period of time, by virtue of which the bareboat charterer has complete
13 
possession and control of the ship, including the right to appoint the master
14 
and crew of the ship, for the duration of the lease;
15 
c. Bareboat charterer ox charterer xx\d^ be used interchangeably and refers to any
16 
person, commercial partnership or corporation which bareboat charters a
17 
Philippine flag vessel from another Philippine national, or a vessel of compatible
18 
foreign registry, for its own use;
19 
d. Certificate of Philippine Registration refers to the document of registration of a
20 
vessel registered in accordance with Section 13 of this Act;
21 
e. Ciaimantxe^exs to a person who asserts that a maritime claim exists in his favor;
22 
f. Court ox Philippine court ox competent court may be used interchangeably and
23 
refers to a court of appropriate jurisdiction within the territory of the
24 
Philippines;
25 
g. De-registration refers to the act of deleting a ship from the Registry of Ships of
26 
the Philippines and the cancellation of the Certificate of Philippine registry in
27 
accordance with Section 21 of this Act;
28 
h. Foreign flag vessel refers to a ship which is registered under the laws of a
29 
country other than the Philippines and which is authorized to fly the flag of that
30 
country;
31 
i. Foreign registry refers to the registry of ships of a country other than the
32 
Philippines;


1 
j. Maritime daim refers to any of the claims provided in this Act;
2 
k. Maritime Hen refers to a charge that attaches to a ship which rises from a
3 
maritime claim against the ship, its owners, charterers, managers, or operators
4 
that results in a demand for indemnity or remuneration from the ship or its
5 
owners, charterers, managers or operators and is enforceable by judicial action;
6 
I. Mortgages refers to the person, whether natural or juridical, in whose favor a
7 
ship mortgage is created in order to secure a principal obligation;
8 
m. Mortgagor refers to a ship owner who constitutes a ship mortgage over a vessel
9 
or a vessel under construction registered in its name in order to secure the
10 
fulfillment of a principal obligation;
11 
n. Phiiippine Fiag Vesseirefers to any vessel duly registered under Philippine Laws
12 
and authorized to fly the Philippine flag;
13 
0. Phiiippine nationairefers to any individual who is a citizen of the Philippines, or
14 
a commercial partnership or corporation organized under the laws of the
15 
Philippines, at least 60% of the capital of which is owned by citizens of the
16 
Philippines;
17 
p. Registration refers to the act of entering a ship in the Registry of Ships of the
18 
Philippines in accordance with this Act;
19 
q. Register of Ships of the Phiiippines or Register or Registry may be used
20 
interchangeably and refers to the official public register maintained by the
21 
MARINA which shall hold the record of all vessels under Philippine laws;
22 
r. Record of Ship Mortgages and Encumbrances refers to the public record
23 
maintained by the MARINA containing all details of the vessel's mortgage and
24 
encumbrances, as will be further described in details hereafter;
25 
s. Seagoing vesseirefers to any Philippine flag vessel of five hundred (500) gross
26 
tons or more, authorized to carry passengers or cargo, or both, in trade
27 
between a Philippine port and a foreign port, or between two foreign ports;
28 
t. Ship manager refers to any person, commercial partnership or corporation to
29 
which the technical or commercial management, or both such technical and
30 
commercial management, of a ship has been entrusted by the ship owner and
31 
for that purpose is in charge of the operation of the ship, which may include


1 
vessel maintenance and upkeep, crewing and passenger and cargo
2 
solicitations;
3 
u. Ship mortgage refers to a contract executed by the owner of a ship creating a
4 
security interest over a particular vessel or a vessel under construction in order
5 
to secure the performance of a principal obligation;
6 
V. Ship owner refers to any person, commercial partnership or corporation
7 
authorized to own, operate, manage, control, lease or charter out, or otherwise
8 
engage in the business of shipping;
9 
w. Ship operator refers to any person, commercial partnership or corporation
10 
authorized to operate, manage or control a ship owned by another;
11 
X. Tonnage or Gross tonnage may be used interchangeably unless otherwise
12 
indicated and refers to the ship's gross tonnage calculated in accordance with
13 
the tonnage measurement rules provided in the applicable international
14 
convention on the tonnage measurement of ships;
15 
y. Unit of Account refers to the Special Drawing Rights (SDR) as defined by the
16 
International Monetary Fund (IMF). The SDR is an international reserve asset,
17 
created by the IMF in 1969 to supplement its member countries' official
18 
reserves;
19 
z. Vessel or ship may be used interchangeably and refers to any boat, craft or
20 
artificial contrivance capable of floating in water, designed to be used, or
21 
capable of being used, as a means of water transport for the carriage of
22 
passengers or cargo, or both, utilizing its own motive power or that of another,
23 
and shall include a ship under construction and for purposes of this Act shall
24 
continue to be considered as personal property. It excludes fishing vessels
25 
defined and regulated under existing laws and bancas, sailboats, and other
26 
water-borne contrivance of less than three gross tons and not motorized:
27 
Provided, That this does not include those owned and/or operated by the
28 
Armed Forces of the Philippines and by foreign governments for military
29 
purposes: Provided, further, That mobile offshore platforms used in petroleum
30 
exploration and development, such as mobile offshore drilling units and
31 
offshore production platforms, shall be considered as ships when they are
32 
mobile and not affixed to the seabed.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
Sec. 5. The Philippine Ship Registry. — The Philippine Ship Registry, 
hereinafter referred to as the "Registry", is hereby established, through which the 
State confers nationality, exercises its jurisdiction, protects and enforces private rights, 
and undertakes the national and international responsibilities of a flag State, over all 
ships flying the Philippine flag.
The Registry is comprised of the Register of Ships and the Record of Ship 
Mortgages and Encumbrances. It shall be maintained by the MARINA in accordance 
with the provisions of this Act, and the rules and regulations that may be issued 
pursuant thereto. There shall be one Registry for all domestic and international flag 
vessels.
Sec. 6. Register of Ships. - A Register of Ships shall be kept and maintained by 
the MARINA, which shali record essential ship information, including the following:
a. Name of vessel;
b. Keel number;
c. Hull material;
d. Principal dimensions;
e. Gross tonnage;
f. 
Net tonnage;
g. IMO number:
h. Official number;
i. 
Place of build;
j. Year of build;
k. Name and address of registered owner, ship operator, bareboat charterer, 
manager or other person responsible for the ship;
l. 
Date of issuance of CPR;
m. Class of vessel,
n. A reference that encumbrances on the vessel appear in the primary registry.
In the case of second-hand tonnage, the following additional data shall likewise 
be listed in the Registry of Ships:
0. Place of previous registry;
p. Name of previous owner. In the case of bareboat chartered vessels, the following 
additional data shall also be listed in the Registry of Ships:


1 
q. Place of primary registry;
2 
r. Name of registered owner appearing in the primary registry;
3 
s. Name of the vessel as it appears in the primary registry;
4 
t. A reference that encumbrances on the vessel appear in the primary registry;
5 
u. Any material change of condition with respect to any of the preceding items and
6 
any other fact required by regulation shall likewise be recorded in the Registry of
7 
Ships.
8 
The MARINA may add to the required information to be submitted in
9 
accordance with international standards.
10 
Sec. 7. Effect of Registration. - Any ship registered under the Philippine registry
11 
shall be entitled to the following:
12 
a. Conferment of the nationality and status of a Philippine ship;
13 
b. Entitlement to the protection of the Philippine flag;
14 
c. Entitlement to the right to invoke the diplomatic, consular and naval
15 
protection of Philippine authorities and the protection of the flag of the
16 
Philippines;
17 
d. Imposition of the duty to fly the Philippine flag;
18 
e. Obligation to abide by all applicable laws, decrees, orders, rules and
19 
regulations of the Philippines;
20 
f. Entitlement to the privilege to engage, consistently with the limitations
21 
provided by law, in Philippine coastwise trade in accordance with corollary
22 
permits, certificates and franchises that may be issued to the vessel; and
23 
g. Entitlement to the right to invoke the exercise of jurisdiction and control by
24 
Philippine government authorities over all persons found on board the
25 
vessel, or over any Incident involving the penal or disciplinary responsibility
26 
of the master or any member of the crew whether the same arises from a
27 
crime or quasi-delict committed on board the vessel or from any collision or
28 
other incident of navigation concerning the ship.
29 
Sec. 8. One Ship, One Registry Ruie. — A ship may be registered with only one
30 
ship register at any one time. Before entering the ship in the Register, the MARINA
31 
shall ensure that any previous registration has been deleted, or that the ship has been
32 
de-registered from any foreign registry.


1 
In the case of a foreign flag ship under bareboat charter, the MARINA shall ensure
2 
that the right to fly the flag of the former flag State is suspended for the duration of
3 
its registration with the Philippine Registry. A Certificate of Registration shall be issued
4 
only upon the production of evidence indicating the suspension of its previous
5 
registration and nationality under the former flag State, and indicating the particulars
6 
of any registered encumbrances entered in the previous registry.
7 
It is the duty of the owner, master, or agent of every ship in the Register to inform
8 
the MARINA of any change in the facts pertaining to the ship and entered therein.
9 
Sec. 9. Who may Register. -
10 
a) All ships operating within the maritime territory and jurisdiction of the
11 
Philippines, except transient foreign flag ships subject to such regulations as
12 
the MARINA may prescribe, are mandated to be registered with the Philippine
13 
Registry: Provided, That they meet the conditions for the grant of registration
14 
imposed by this Act and the regulations pursuant hereto. This mandatory
15 
registration under the Philippine Flag is particularly required in the following
16 
cases:
17 
1. The ship is five hundred (500) gross tons or more, 2s 'The ship is owned
18 
by a qualified person, as may be determined by the MARINA;
19 
2. The ship meets the requirements for safety, security, marine
20 
environmental protection, crew nationality, training, certification and
21 
competency, and crew welfare.
22 
b) Any other ship, including a foreign-owned ship, may also be registered in
23 
accordance with this Act, provided the following conditions are present:
24 
1. It is used only In international voyages;
25 
2. It is managed by a qualified person residing in the Philippines, as may
26 
be determined by the MARINA;
27 
3. It complies with the applicable provisions that govern the safety and
28 
security of Philippine ships and persons on board;
29 
4. It complies with the applicable provisions that govern the terms and
30 
conditions of employment on board Philippine flag vessels;
31 
5. The ship employs full Filipino crew, unless otherwise authorized by the
32 
MARINA, consistent with applicable treaties, conventions and


1 
internationally-accepted maritime 
and labor standards 
and practices:
2 
Provided, however, That any exemption granted by the MARINA must
3 
still require that at least majority of the crew of the seagoing vessel are
4 
Filipinos; and
5 
6. Additional incentives for payment of tax tonnage, under Section 24
6 
hereof, shall be granted to the registered foreign-owned vessel where
7 
the ship owner, manager, operator, or bareboat charterer and all its crew
8 
officers, and employees have a valid, subsisting and duly implemented
9 
collective bargaining agreement that conforms to international labor
10 
standards, rules and conventions.
11 
c) Vessels of a foreign registry that are covered by a bareboat charter may be
12 
registered under the Philippine flag: Provided, That their registration under the
13 
foreign flag of primary registration shall not be abandoned, but shall be deemed
14 
suspended, for the duration of the ship's registration under the Philippine flag.
15 
Sec. 10. Licensure. — Every ship, regardless of size, intended to be used in the
16 
carriage of passengers or cargo, or both, between ports and places, in the coastal,
17 
internal, inland or sheltered waters of the Philippines, shall be covered by a license to
18 
operate: Provided, That such ship is owned by a citizen of the Philippines or a
19 
corporation or association organized under the jaws of the Philippines at least sixty
20 
percent (60%) of whose capital is owned by such citizens and the ship meets the other
21 
conditions for the grant of the license imposed by this Act and the regulations pursuant
22 
hereto.
23 
Sec. 11. Conditions for Registration. — No ship shall be registered, unless the
24 
following conditions are present, as determined by the MARINA in accordance with
25 
this Act and regulations, issued related hereto:
26 
a. Proof of Ownership. - There must be satisfactory proof of ownership and/or
27 
management by qualified persons.
28 
b. Seaworthiness. - A ship must comply with the general requirements for age,
29 
safety, security, navigation, manning, and protection and preservation of
30 
the marine environment in accordance with national and international
31 
standards for ships.


1 
c. Manning. - A ship must be manned by a crew with such level of skills and
2 
competencies as may be necessary in accordance with applicable
3 
international maritime conventions, rules, and standards as well as national
4 
law and regulations.
5 
d. Labor and social conditions. - A ship must meet the labor and social
6 
standards required by applicable international labor conventions, rules and
7 
standards as implemented by the MARINA.
8 
e. Management. - A ship must be managed by a person or entity that is under
9 
the effective jurisdiction of the State.
10 
f. Payment of fees and dues. - The applicant for ship registration must pay
11 
the corresponding registration fees and tonnage dues as may be imposed
12 
by the State.
13 
Sec. 12. Documentary Requirements. - Every ship owner, master or agent who
14 
opts to enroll a vessel for registry under the Philippine flag shall submit to the MARINA
15 
the following documents:
16 
a. A written application for registration;
17 
b. A documentary proof of ownership over the vessel;
18 
c. Proof of authority to enroll the ship for registry, if applicable;
19 
d. A copy of a certification issued by a classification society showing the ship
20 
is of a certain class, if existing and applicable; and
21 
e. Such other necessary documents that may be required by the MARINA in
22 
accordance with the best international shipping practices or standards.
23 
Sec. 13. Issuance of Certificate of Phiiippine Registration. No application for a
24 
Certificate of Philippine Registration shall be approved and issued until the MARINA
25 
has made the proper evaluation that all the conditions and documents required and
26 
mandated for registration under this Act or regulations issued hereto have been
27 
complied with. The MARINA or its deputized representative shall inspect the vessel
28 
and all its documents and ensure that it is qualified for registration under this Act.
29 
A certificate of Philippine registry shall be valid for a period of no more than
30 
three (3) years, and may be continuously renewed for a similar period: Provided, That
31 
all the requirements for registration or its renewal are met.


1 
In case of a bareboat chartered vessel, the Certificate of Philippine Registration
2 
shall be valid for a period of no more than three (3) years or the period of the bareboat
3 
charter, whichever is shorter.
4 
Sec. 14. Types of Registration. — Registration of a ship may be permanent,
5 
provisional, or temporary in nature.
6 
a. Permanent Registration. - Except as provided in the succeeding sections, the
7 
registration of a ship and issuance of a Certificate of Philippine Registration is
8 
deemed to be permanent until the ship is actually de-registered or deleted from
9 
the Register.
10 
b. Provisional Registration. - Ships constructed and/or acquired abroad, before being
11 
brought to the Philippines, may be issued a Provisional Certificate of Philippine
12 
Registration and a provisional tonnage certificate for conduction purposes.
13 
c. Temporary Registration. - The following may be issued a Temporary Certificate of
14 
Philippine Registration:
15 
1. Any ship about to be built, or under construction in the Philippines;
16 
2. Any ship owned and/or operated by an entity duly registered with the
17 
Board of Investments (BOI) under pertinent investment laws, rules and
18 
regulations, to be used exciusiveiy for the purpose of transporting raw
19 
materials and/or finished products within Philippine waters as an essential
20 
element and operation in the manufacturing, processing, or other business
21 
activity or project registered by such entity with the BOI: Provided, That
22 
such temporary registration applies only for the duration of such business
23 
activity or project, and shall not exceed one year, renewable for another
24 
year: Provided, further. That the type of ship used or service undertaken
25 
cannot be provided by a Philippine ship owner;
26 
3. Any ship that is operated and managed under a bareboat charter:
27 
Provided, That in case of a foreign flag vessel bareboat-chartered by a
28 
quaiified person for operation in Philippine waters, the ship may be
29 
temporarily registered with the Registry for the duration of the charter:
30 
Provided, further. That for the duration of temporary registration with the
31 
Philippines, any registration with a foreign flag State is suspended:
32 
Provided, finaiiy. That no ship under a bareboat charter shall be registered
10


1 
if, after the effectivity of its charter, it has undergone extensive structural
2 
modification in a manner that affects its safety and seaworthiness.
3 
Sec. 15. Markings, Name and Homeport. — All ships duly registered according
4 
to the provisions of this Act shall have their respective names plainly marked upon
5 
each side of the bow and the stern; and the homeport and International Maritime
6 
Organization (IMO) number upon the stern.
7 
Sec. 16. Change in Ownership of Ships. — In case of a sale of a Philippine-
8 
flagged ship, the transferee shall present the bill of sale or other certificate evidencing
9 
the transfer of ownership to the MARINA within fifteen (15) days after its execution
10 
for appropriate recording in the Register.
11 
Sec. 17. Correction of Errors in the Registry. — Errors in recording made in the
12 
Register shall be corrected in the following manner:
13 
a. Mere clerical errors without any effect on the meaning and substance of the
14 
document shall be corrected by the appropriate and designated officer of
15 
the MARINA who shall make the necessary correction.
16 
b. Any mistake or error that might affect the meaning and substance of the
17 
documents shall be corrected by order of the MARINA after notice to, and
18 
hearing of, the interested parties.
19 
Sec. 18. Reconstitution of Lost Certificate. — If the Certificate of Philippine
20 
Registration of a ship is lost or damaged, the owner, master or agent thereof may file
21 
an application with the MARINA for the issuance of a replacement certificate. The
22 
replacement certificate shall indicate that the original certificate is considered canceled
23 
and revoked. If after the issuance of the replacement certificate, the lost original
24 
certificate of Philippine registry is found, it shall be the duty of the owner, master,
25 
agent or any person having possession of the original certificate to surrender it to the
26 
MARINA.
27 
Sec. 19. Suspension, Canceiiation or Revocation of Ship Registration. — The
28 
registration of a Philippine flag vessel shall be canceled and its corresponding
29 
Certificate of Philippine Registration shall be revoked in any of the following cases:
30 
a. The Certificate of Philippine Registration was illegally or fraudulently obtained;
11


1 
b. The ship is sold, transferred and/or assigned to a person not qualified to register
2 
ships in the Philippines under the provisions of this Title or as may be determined
3 
by the MARINA;
4 
c. In the case of a transfer of ownership over the ship, the new transferee or assignee
5 
has properly applied for change of ownership and/or registration;
6 
d. The ship is sold by the order of a competent court;
7 
e. The ship is sold for scrapping;
8 
f. The ship is determined by the MARINA to be unsafe and unserviceable beyond
9 
repair;
10 
g. The bareboat charter of the ship has expired, or has been canceled or terminated
11 
for any reason, in which case the canceliation from the register of ships and
12 
revocation of the certificate of Phiiippine registry shall be automatic;
13 
h. The ship has been declared lost or missing pursuant to a written and notarized
14 
notice submitted by the owner, master, or agent of a Philippine flag vessel to the
15 
MARINA, containing advice of such loss and the probable cause thereof;
16 
i. Gross violations of the safety, security, environment and other standards or
17 
requirements set by the MARINA;
18 
j. The ship owner, manager, agent or bareboat charterer is proven to have given or
19 
submitted to the MARINA fabricated information or fraudulent documents relative
20 
to the registration or settlement of their fees or taxes;
21 
k. The ship has engaged in illegal activities;
22 
I. The ship owner, manager or bareboat charterer commits any act inimical to the
23 
national security or national interests of the Philippines;
24 
m. The ship is entered in a foreign registry without prior approval of the MARINA.
25 
Sec. 20. Inspection of the Register. - The Register of Ships shall be open to
26 
public inspection during ordinary business hours, in the offices of the MARINA and
27 
online. All documents and information provided in connection with the registration of
28 
a ship are considered public documents. Upon request and payment of reasonable
29 
fees, authenticated copies of any document or instrument required to be filed under
30 
this Act and pertinent rules and regulations, or extracts thereof, shall be furnished to
31 
any person.
12


1 
Sec. 21. De-registration of Ships. — A ship, which is or has been, registered in
2 
another State shall not be eligible for permanent registration in the Philippines, unless:
3 
a. A certificate has been issued by the former flag State to the effect that the
4 
ship has been de-registered; or
5 
b. A certificate has been issued by the former flag State to the effect that the
6 
ship will be de-registered on the day when such new registration is effected.
7 
Except in case of forced sales, a Philippine flagged vessel shall not be de-
8 
registered without the written consent of all holders of registered mortgages.
9 
If the de-registration of the vessel is obligatory in accordance with this section,
10 
all holders of registered mortgages shall be notified by the MARINA of the pending
11 
de-registration in order to enable such holders to take appropriate action to protect
12 
their respective interests.
13 
If the consent of the holders is not obtained, de-registration shall not be
14 
implemented earlier than three (3) months after notice to such holders of registered
15 
mortgages is given.
16 
Sec. 22. Processing Fee. — A processing fee shall be paid by the owner, master
17 
or agent of the ship sought to be registered when the application for registration or
18 
when a renewal thereof is filed. The processing fee shall be collected to cover
19 
administrative costs for handling and processing the application. The processing fee
20 
shall be in such a reasonable amount as may be determined by the MARINA.
21 
Sec. 23. Registration Fee. — A registration fee shall be payable by the ship
22 
owner, master or agent when the ship is first entered in the Registry and shall be paid
23 
when the Certificate of Philippine Registration is issued. The registration fee shall be
24 
fixed in such a reasonable amount as determined by the MARINA.
25 
Sec. 24. Tonnage Tax Fees. — An annual tonnage tax fee shall likewise be
26 
paid by the owner, manager or bareboat charterer of the vessel, in order for the
27 
issuance and continued possession of a valid and subsisting certificate of Philippine
28 
registration. The annual tonnage tax fee shall be computed at the rate of US$0.10 per
29 
net register tonnage or its equivalent in Philippine Peso based on the present or latest
30 
exchange rate posted by the Bangko Sentraing Pilipinas 
on the date of payment
31 
of the tonnage tax fees. The ship owner, master, or agent shall have the option
32 
whether to pay in US dollars or in Philippine Peso.
13


1 
For all vessels, if the owner, manager, or agent has satisfactorily established
2 
the MARINA compliance with the conditions stated in Section 9 par. b Subsection 6
3 
hereof, they shall enjoy an additional incentive. In such case, the tonnage tax fees
4 
due from them shall be reduced to the rate of US$0.08 per net register tonnage or its
5 
equivalent in Philippine Peso based on the present or latest exchange rate posted by
6 
the BSP on the date of payment of the tonnage tax fees: Provided That if the MARINA
7 
determines that the conditions for the additional incentive is violated or proof shown
8 
for its existence is fabricated, the Certificate of Philippine Registration may be revoked
9 
in accordance with Section 19 paragraph (j) hereof.
10 
Sec. 25. Adjustments in Fees and Taxes. — The MARINA may review the rates
11 
for the processing fee, registration fee, and tonnage tax fees from time to time and
12 
with the approval of the Department of Transportation, may, by regulation, adjust or
13 
increase various fees, but for a reasonable amount.
14 
Sec. 26. Exemption from Duties and Taxes. — The importation by the owner,
15 
manager, agent or bareboat charterer of a vessel, and the spare parts, steel/metal
16 
plates and equipment needed for the refurbishing, repair and maintenance of such
17 
vessel shall be exempt from the payment of import duties and taxes, value added
18 
taxes and all other pertinent taxes.
19 
In the case of a registered vessel, the annual tonnage tax fees shall be in lieu
20 
of any income tax due from the ship owner, manager, agent or bareboat charterer
21 
and the withholding tax due on the lease or bareboat charter fees earned by the ship
22 
owner. Likewise, all crewing personnel of the registered foreign-owned vessel shall be
23 
exempt from income tax and all other taxes that may be imposed on their salaries and
24 
remunerations received by reason of or in connection with their employment with the
25 
ship owner, manager or bareboat charterer of the registered foreign-owned vessel.
26 
Sec. 27. Record of Ship Mortgages and Encumbrances. - The MARINA shall
27 
maintain a Record of Ship Mortgages and Encumbrances containing the details and
28 
documents regarding all transfers, mortgages, encumbrances, or other documents
29 
proving or affecting the title to any ship registered in the Register of Ships. All
30 
documents, certificates, receipts, or acknowledgments canceling or satisfying any such
31 
obligation in whole or in part shall likewise be recorded. The date and time of recording
32 
shall be expressly stated.
14


1 
Sec. 28. Effect of Recording. — In order to be valid and enforceable, every
2 
mortgage, encumbrance, or other right over a Philippine flag vessel, whether
3 
permanent or temporary in nature, in favor of a person other than the registered ship-
4 
owner or his agent, must be entered into the Record. Priority in time of recording
5 
determines the priority in rights between different rights-holders.
6 
Sec. 29. Requirements of Recording. — A ship mortgage, encumbrance, or
7 
other rights shall be entered into the Record upon submission to the MARINA of the
8 
following:
9 
a. A copy of the contract or other instrument evidencing such mortgage,
10 
encumbrance, or other rights, which contain all the essential details thereof;
11 
b. A copy of the Certificate of Philippine Registration;
12 
c. In case of a ship under construction, a copy of its Temporary Certificate of
13 
Philippine Registration, or if such has not yet been issued, a declaration stating the
14 
ship's name, the location of the shipyard, the yard number, and the dimensions
15 
and appropriate deadweight of the vessel upon completion.
16 
Sec. 30. Annotation of Mortgages and Encumbrances. — Upon request of the
17 
mortgagee, holder of the right, or his agent, and submission of the necessary
18 
documents required in this Act for recording, the MARINA shall cause the annotation
19 
of a ship mortgage, encumbrance, or other right on the back of the corresponding
20 
Certificate of Philippine Registry of the vessel concerned, referring to the entry
21 
number, date and time of entry, and nature or subject matter of the document as
22 
contained in the Record.
23 
If a new or replacement certificate is issued, the annotations upon the previous
24 
certificate shall automatically be transferred and annotated upon the back of the new
25 
or replacement certificate.
26 
Sec. 31. Rights Over Vessels Under Construction. — Any right in respect to a
27 
vessel under construction in the Philippines may be entered and recorded after the
28 
keel has been laid or equivalent construction work has been performed.
29 
Vessels under construction contracted by a Philippine national may be
30 
registered in accordance with the provisions of this Act. In order that the vessel may
31 
be the subject of registration under this Act, it is necessary that the keel of the vessel
15


1 
must have been laid and a keel number assigned by the shipyard at the time of
2 
application.
3 
Sec. 32. Inspection of the Record. — The Record shall be open to public
4 
inspection during ordinary business hours in the offices of the MARINA and online.
5 
Upon request and payment of reasonable fees, extracts from the Record of Ship
6 
Mortgages and Other Rights, and/or authenticated copies of any document or
7 
instrument required to be filed under this Title and/or pertinent rules and regulations,
8 
or extracts thereof, shall be furnished to any person.
9 
Sec. 33. Nature of Maritime Liens. — Maritime liens arise and are enforceable
10 
whether the claims secured by such liens are against the owner, or against the demise
11 
or other charterer, manager or operator of the ship. Except in case of forced sale of
12 
the ship, the maritime liens shall be attached to the ship notwithstanding any change
13 
of ownership, registration, or flag.
14 
Sec. 34. Claims Secured by Maritime Liens. — The following claims in relation
15 
to a ship shall be secured by maritime liens on the ship:
16 
a. Claims for wages and other sums due to the master, officers and other
17 
members of the ship's complement in respect of their employment on the
18 
ship;
19 
b. Claims in respect of loss of life or personal injury occurring, whether on land
20 
or on water, in direct connection with the operation of the ship;
21 
c. Claims based on tort and not capable of being based on contract, in respect
22 
of loss or damage to property caused by the operation of the ship other
23 
than loss of or damage to cargo, containers and passengers' effects carried
24 
on the ship;
25 
d. Claims for port, canal, and other waterway dues, tonnage dues, light dues,
26 
pilotage dues, other public taxes, dues and charges of the same character;
27 
and
28 
e. Claims relating to the salvage, wreck removal and contribution in general
29 
average.
30 
Sec. 35. Claims Not Secured by Maritime Liens. — No maritime lien shall attach
31 
to a ship to secure claims for damages in connection with the carriage of oil or other
32 
hazardous or noxious substances by sea for which compensation is payable to the
16


1 
claimants pursuant to international conventions, local laws, or compulsory insurance,
2 
or those which arose out of or which resulted from the radioactive properties or a
3 
combination of radioactive properties with toxic, explosive or other hazardous
4 
properties of nuclear fuel, or of radioactive produce or waste.
5 
Sec. 36. Priority of Maritime Liens. - The maritime liens set out in Section 33
6 
hereof shall take priority over registered mortgages, hypotheques, and charges. No
7 
other claim shall take priority over such maritime liens or over such mortgages,
8 
hypotheques, or charges except as may be specifically provided under this Act. The
9 
maritime liens set forth in sub-sections (a) to (e) of Section 34 hereof shall rank equally
10 
as between themselves.
11 
Sec. 37. Maritime Liens in case ofSaivage, Wreck Removai, or Generai A verage
12 
Acts. — Maritime liens securing claims for salvage, wreck removal and contribution to
13 
general average shall take priority over all other maritime liens which have attached
14 
to the ship prior to the time when the operations giving rise to the said liens were
15 
performed.
16 
Such liens shall rank in the inverse order of the time when the claims secured
17 
thereby accrued. Claims for contribution to general average shall be deemed to have
18 
accrued on the date on which the general average act was performed, while claims
19 
for salvage shall be deemed to have accrued on the date on which the salvage
20 
operation was terminated.
21 
In the event of a forced sale of a wreck of a ship, following its removal by the
22 
MARINA, the costs of such removal shall be paid out of the proceeds of the sale before
23 
all other claims secured by maritime lien on the ship.
24 
If at the time of the forced sale, the vessel is in the possession of a ship-builder
25 
or a ship- repairer who enjoys a right of retention, such a ship-builder or ship-repairer
26 
shall surrender possession of the ship to the purchaser but is entitled to obtain
27 
satisfaction of a claim out of the proceeds of the sale after the satisfaction of the
28 
claims of holders of maritime liens mentioned in Section 34 hereof.
29 
Sec. 38. Extinguishment of Maritime Liens. - Maritime liens shall be
30 
extinguished after a - period of one (1) year from the time when the claims secured
31 
thereby arose unless, prior to the expiration of such period, the ship has been arrested
17


1 
and the ownership thereof transferred through a forced sale ordered by a competent
2 
court or tribunal.
3 
The period of one (1) year shall not be subject to suspension or interruption:
4 
Provided, That the time shall not run while the person enforcing the lien is prevented
5 
from arresting the ship legally or by circumstances beyond his control.
6 
Maritime lines which arose prior to the effectivity of this Act shall be
7 
extinguished one (1) year after the date of such effectivity.
8 
Sec. 39. Rights of Retention. — The following persons, when in possession of
9 
ship or ship that is under construction, shall have the right to retain such ship or ship
10 
under construction, without need of a court order:
11 
a. A shipbuilder, to secure claims arising out of the construction of, or other
12 
work carried out in relation to the ship; and
13 
b. A ship repairer, to secure claims arising out of the repair of, including the
14 
modification, conversion or reconstruction of the ship, or other work carried
15 
out in relation to the ship, affected during such possession.
16 
Sec. 40. Extinguishment of Rights of Retention. — The rights of retention under
17 
the preceding section shall be extinguished when:
18 
a. The claim in respect of which said right has been exercised is met or is
19 
otherwise discharged;
20 
b. The ship ceases to be in the possession of the ship-builder or ship-repairer
21 
as the case may be; or
22 
c. The competent court orders the release of the ship.
23 
Sec. 41. Assignment or Subrogation. — The assignment of or subrogation to a
24 
claim secured by a maritime lien results in the simultaneous assignment of or
25 
subrogation to such maritime lien.
26 
Claimants holding maritime liens may not be subrogated to the compensation
27 
payable to the owner of the ship under an insurance contract.
28 
Sec. 42. Exciusions. — The provisions of this Title shall not apply to:
29 
a. A claim for the enforcement of a maritime lien that is already the subject of
30 
a pending case and which is sought to be enforced under the provisions of
31 
Presidential Decree No. 1521, or the Ship Mortgage Decree, at the time of
32 
the effectivity of this Act;
18


1 
b. A maritime lien which arose prior to the effectivity of this Act, unless such
2 
lien has already been prescribed.
3 
Sec. 43. Application. - The provisions of this Chapter shall apply to every
4 
mortgage wherever executed in respect of:
5 
a. A ship that is registered in the Philippines; or
6 
b. A ship that is under construction in the Phiiippines.
7 
Sec. 44. Subject of a Ship Mortgage. — Unless otherwise stipulated, a ship
8 
mortgage shall include all the property of the mortgagor which is appropriated to the
9 
ship and on board at the time when the mortgage contract is entered into, or which
10 
is later substituted for such property.
11 
In case the ship is under construction, the ship mortgage shall include all
12 
materials, machinery and equipment owned by the mortgagor that are within the
13 
premises of the builder's yard and distinctly identified as intended to be incorporated
14 
into the ship under construction.
15 
Sec. 45. Formal Validity. — A ship mortgage shall not be valid, unless it is made
16 
by or with the consent of the owner of the ship or ship under construction, and in
17 
writing and signed by the mortgagor and mortgagee. However, the ship mortgage
18 
may be validly made in the form of an electronic document as defined by law. Except
19 
as otherwise expressly provided in this Act, no other document for formal validity shall
20 
be required in order for the ship mortgage to be binding and effective upon the
21 
mortgagor and mortgagee.
22 
Sec. 46. Registration of Ship Mortgages. — Every mortgage of a ship that is
23 
registered or under construction in the Philippines shall, on proper application, be
24 
registered in the Record of Mortgages and Encumbrances established in Section 27
25 
hereof. If such a mortgage is not registered, it shall be unenforceable against the ship
26 
and third persons.
27 
All entries in the Register of Mortgages and Encumbrances pertaining to the
28 
mortgage of a ship shall be annotated on the back of the Certificate of Philippine
29 
Registration, stating the time and date of transfer and the nature and subject matter
30 
of the encumbrance. All ship mortgages shall be registered in the order in which they
31 
are filed, indicating the date and time of registration.
19


1 
The MARINA shall, upon the registration of a mortgage, issue two official copies
2 
of the relevant entry in the Registry to the mortgagor. Each official copy of the entry
3 
shall bear the official time and date of the registration of the mortgage.
4 
If a ship mortgage is transferred or materially amended or if one mortgage is
5 
substituted for another, the transfer, amendment or substitution shall likewise be
6 
entered into the Record. Any transfer, amendment or substitution that is not entered
7 
into the Record shall be unenforceable against the ship and third persons.
8 
Sec. 47. Disclosure by the Mortgagor. - Upon request of the mortgagee prior
9 
to the execution of the mortgage to which they are parties, the mortgagor shall
10 
provide in writing the details of any prior ship mortgage and any maritime lien that is
11 
known to the mortgagor, upon the ship which is the subject of the ship mortgage.
12 
Sec. 48. Priority Between Ship Mortgages. — Ship mortgages shall rank in the
13 
order of their being recorded with the Registry.
14 
Sec. 49. Notification of De-registration of Subject of Ship Mortgage. — Except
15 
in the case of a forced sale upon order of a competent court, the de-registration of a
16 
ship shall not be permitted unless all registered ship mortgages are first deleted, or
17 
the written consent of all holders of such mortgages is obtained.
18 
Where the de-registration of the ship is obligatory according to the provisions
19 
of this Act or its implementing regulations, the MARINA shall notify the holders of
20 
registered ship mortgages of the pending de-registration in order to enable such
21 
holders to take appropriate action to protect their interests. Unless the said holders
22 
consent to a shorter period, the de-registration shall not be implemented until after a
23 
lapse of a reasonable time from notification in writing, which shall not be less than
24 
three (3) months.
25 
There shall be no other requirements for formal validity, except as stated in the
26 
preceding paragraphs.
27 
Sec. 50. Grounds to Enforce a Ship Mortgage. — A mortgagee shall be entitled
28 
to enforce the security represented by the ship under a mortgage in the following
29 
cases:
30 
a. The mortgagor defaults in the discharge of the indebtedness or other
31 
obligations secured by the ship mortgage;
20


1 
b. The mortgagor or any person in possession of the mortgaged property
2 
substantially prejudices the security of the mortgagee by any act or
3 
omission;
4 
c. The mortgagor commits any breach of the mortgage contract which, by the
5 
terms of the contract, entitles the mortgagee to enforce the security.
6 
Sec. 31. Remedies of Mortgagees. -The enforcement of the security under the
7 
mortgage may be carried out by:
8 
a. Arresting the ship subject to the mortgage and applying for an order for its
9 
forced sale by competent court; or
10 
b. Foreclosing the mortgage; or
11 
c. Any other manner stipulated in the mortgage contract.
12 
Sec. 52. Arrest and Forced Sate of a Ship. — A mortgagee entitled to enforce a
13 
mortgage, or a person exercising a maritime lien, may bring a proceeding in rem
14 
against the ship which is the subject of the mortgage or to which the maritime lien
15 
attaches, as the case may be, before a competent court having jurisdiction over the
16 
ship.
17 
The petitioner shall be entitled to apply to the court expartetor an order for the arrest
18 
of said ship. The petitioner's claim shall be supported by an affidavit stating the
19 
circumstances which shall be the. bases to enforce the mortgage or lien. An affidavit
20 
executed abroad must be duly authenticated. If the affidavit satisfactorily establishes
21 
the petitioner's claim, the competent court shall order the arrest of the ship.
22 
The court may require the petitioner to post a bond or other security before
23 
issuing the order of arrest. If so required, the bond or security shall not exceed the
24 
amount of the mortgage debt or lien.
25 
The court shall, after judgment, order the forced sale of the ship to satisfy the
26 
claim, unless the ship has been released in accordance with the next succeeding
27 
section.
28 
The rules on preliminary attachment under the Rules of Court shall not apply
29 
in the arrest of ships.
30 
Sec. 53. Release of Arrested Ship. — The court shall not release the arrested
31 
ship prior to rendition of judgment, unless the mortgagor, the owner of the ship, or
21


1 
any person authorized to act on his behalf, or of any other person interested in the
2 
ship:
3 
a. Applies to the court for an order releasing the ship from arrest, by making
4 
a cash deposit, and if the same is not possible upon presentation of
5 
competent evidence, by filing a counter-bond or security in an amount
6 
double the value of the claim, to secure the payment of any judgment that
7 
the mortgagee may recover in the action; or
8 
b. Proves that the arrest was improperly or irregularly made.
9 
Sec. 54. Notice of Forced Sale of a Ship. — Prior to the forced sale of a ship,
10 
the court shall give, or cause to be given, at least thirty (30) days prior notice of the
11 
time and place of such sale, either in customary or electronic form, to the following:
12 
a. All holders of registered mortgages;
13 
b. Such holders of maritime liens whose claims have been notified to the court
14 
and have not expired;
15 
c. All other persons having an interest in the ship, whose interests have been
16 
notified to the court.
17 
Sec. 55. Effect of Forced Sale of a Ship. — In the event of the forced sale of a
18 
ship, all mortgages, except those assumed by the purchaser with the consent of the
19 
holders, and all liens and other encumbrances of whatsoever nature, shall cease to
20 
attach to the ship but shall attach to the proceeds of sale: Provided, That at the time
21 
of the sale, the ship is in the jurisdiction of the Philippines, and the sale has been
22 
effected in accordance with the laws of the Philippines.
23 
Any charter party or contract for the use of the ship in existence at the time of
24 
the forced sale shall be deemed to be terminated, without prejudice to any claim the
25 
charterer may have against the owner of the ship at the time of the sale.
26 
Sec. 56. Bankruptcy Does Not Affect Ship Mortgage. — The mortgage of a ship
27 
is not affected by the bankruptcy or rehabilitation of the mortgagor after the date of
28 
the registration of the mortgage.
29 
Sec. 57. Distribution of the Proceeds. - The costs awarded by the competent
30 
court and expenses arising out of the arrest and sale of the ship shall be paid first out
31 
of the proceeds of such sale. Thereafter, the following claims shall be satisfied out of
32 
the balance of the proceeds of the sale in the order herein enumerated, observing
22


1 
also the preference among each category of claims, established in Sections 34 and 36
2 
hereof on maritime liens and Section 46 hereof on ship mortgages:
3 
a. Maritime liens;
4 
b. Registered mortgages: and
5 
c. Rights of retention.
6 
In case of deficiency, the mortgagee shall be entitled to file a suit in personam
7 
against the mortgagor.
8 
Sec. 58. Certificate of Release. - When a ship registered in the Philippines has
9 
been the object of a forced sale in the Philippines, the competent court having
10 
Jurisdiction shall, at the request of the purchaser, issue a certificate to the effect that
11 
the ship is sold free of all mortgages, maritime liens, and other encumbrances, except
12 
those assumed by the purchaser.
13 
Upon the production of the above-mentioned certificate, the MARINA shall
14 
delete all registered mortgages from the Registry, except those assumed by the
15 
purchaser, or issue a certificate of de-registration for the purpose of registration, as
16 
the case may be.
17 
Sec. 59. Effect of the Forced Sale of a Ship in Foreign States.— The forced sale
18 
in a foreign state of a ship registered in the Philippines shall be recognized and
19 
effective in the Philippines: Provided, That the procedure for such forced sale in that
20 
foreign state substantially corresponds to the appropriate procedure set out herein.
21 
Sec. 60. Foreign Maritime Liens. — A claim governed by the law of a State other
22 
than the Philippines and recognized by such law as giving rise to a maritime lien or
23 
right of a similar nature against the owner, or against the demise or other charterer,
24 
manager or operator of a ship, shall be recognized by and enforceable in the
25 
Philippines: Provided, That said claim constitutes or corresponds substantially to a
26 
claim set out in this Act. The provisions of this Act relating to maritime liens, including
27 
priority, ranking of liens between themselves, and enforcement, shall also apply to
28 
such claims.
29 
Sec. 61. Foreign Mortgages. — A foreign mortgage, or any mortgage which
30 
relates to a ship of foreign registry, shall be recognized and enforceable in the
31 
Philippines: Provided, That:
23


1 
a. Such mortgage has been effected and registered or otherwise recorded in
2 
accordance with the law of the State where the ship is registered;
3 
b. Such register and any instrument or document which are required to be
4 
deposited are open to public inspection, and that extracts of the register
5 
and copies of such instruments are obtainable from the registrar; and
6 
c. Either the register or the loan agreement specifies:
7 
1. The name and address of the person in whose favor the mortgage
8 
has been effected or that it has been issued to bearer;
9 
2. The amount secured by the mortgage or the manner of calculating
10 
said amount;
11 
3. The date of the mortgage; and A. such other particulars which,
12 
according to the law of the State where the ship is registered,
13 
determine the rank in regard to other registered mortgages.
14 
All matters relating to the procedure for enforcement of foreign
15 
mortgages shall be governed by this Act.
16 
Sec. 62. Priority and Ranking of Foreign Mortgages. — Foreign mortgages shall
17 
be subordinate to maritime liens as set out in this Act. The ranking of foreign registered
18 
mortgages as between themselves, and their effect as regard to third parties, shall be
19 
governed by the law of the State where the ship is registered.
20 
Sec. 63. Appiication. — The following may invoke the right to limit their liability
21 
in accordance with the rules provided for in this Title for the claims set out in the
22 
succeeding section:
23 
a. Ship owners;
24 
b. Ship operators;
25 
c. Bareboat charterers;
26 
d. Ship managers;
27 
e. Salvors with respect to claims set forth in Section 65 hereof:
28 
f. Any person whose act, neglect or default the ship owner, ship operator,
29 
bareboat charterer, ship manager or salvor is responsible for; and
30 
g. Insurers who assume the liability of any ship owner, ship operator, bareboat
31 
charterer, ship manager, or salvor.
24


1 
They may invoke their right to limit liability against any claimant in a judicial
2 
action who has sought the arrest of their vessels in order to enforce a claim, which is
3 
subject to limitation.
4 
Sec. 64. Claims which are Subject to Limitation. — The following claims made
5 
against the persons set forth in the preceding section or against the ship, whatever
6 
the basis of liability may be, shall be subject to the limitation of liability:
7 
a. Claims in respect of loss of life or personal injury, or loss of or damage
8 
to property, including damage to harbor works, basins, waterways and
9 
aids to navigation, occurring on board or in direct connection with the
10 
operation of the ship or with salvage operations and consequential loss
11 
resulting therefrom;
12 
b. Claims in respect of loss resulting from delay in the carriage by sea of
13 
cargo, passengers or their luggage;
14 
c. Claims in respect of other loss resulting from the infringement of rights,
15 
other than contractual rights, occurring in direct connection with the
16 
operation of the ship or of salvage operations;
17 
d. Claims in respect of loss or damage arising from the raising, removal,
18 
destruction or the rendering harmless of a ship which is sunk, wrecked
19 
or abandoned, including anything that is or has been on board such ship;
20 
e. Claims in respect of loss or damage resulting from the removal,
21 
destruction or the rendering harmless of the cargo of the ship;
22 
f. Claims in respect of measures taken in order to avert or minimize loss
23 
for which the person liable may limit his liability in accordance with this
24 
Title, and any further loss caused by such measures.
25 
Sec. 65. Claims Not Subject to Limitation. — The following claims shall not be
26 
subject to any limitation of liability in accordance with this Title:
27 
a. Claims arising from the contract of salvage or from any salvage operation
28 
rendered in accordance with relevant Philippine law on salvage or any
29 
applicable international salvage convention, including any claim for special
30 
compensation payable under a contract of salvage, or any contribution in
31 
general average;
25


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
b. Claims for oil pollution damage within the meaning of the applicable convention 
covering the civil liability for oil pollution damage or any amendment thereto 
which is in force;
c. Claims subject to any international convention governing or prohibiting the 
limitation of liability for nuclear damage;
d. Claims against the ship owner of a nuclear ship for nuclear damage;
e. Claims brought by employees against the shipowner, ship operator, bareboat 
charterer, ship manager, or salvor, where the duties of such employees are 
connected with the ship or with the salvage operations, as the case may be, or 
their heirs, successors, or assigns, if under the law governing the contract of 
employment, the ship owner, ship operator, bareboat charterer, ship manager, 
or salvor is not entitled to limit his liability in respect of such claims, or if the 
law governing the contract of employment permits a limit of liability greater 
than that provided for in this Act.
Sec. 66. Conduct Barring Limitation. - Any shipowner, ship operator, bareboat 
charterer, ship manager or salvor, or any person acting on their behalf, shall not be 
entitled to limit liability if it is proven that the loss resulted from the personal act or 
omission of such ship owner, ship operator, bareboat charterer, ship manager, or 
salvor, or any person acting on their behalf, and such actor omission was committed 
with the intent to cause such loss, or it was done recklessly and with the knowledge 
that such loss would probably result.
Sec. 67. Counterciaims; Right to Set Off. - When a ship owner, ship operator, 
bareboat charterer, ship manager, or salvor, who is entitled to limit his liability, has a 
counterclaim against the claimant arising out of the same occurrence, their respective 
claims shall be set off against each other and the limits of liability shall only apply to 
the balance of the claim, if any. The right of set off can be invoked only if both parties 
are entitled to limit their respective liabilities and their respective claims do not fall 
within the provisions of sections 65 and 66 of this Act.
Sec. 68. Generai Limits. — The general limits of liability for claims other than 
for passenger claims, arising from any distinct occasion shall be calculated as follows:
a. In respect of claims for loss of life or personal injury:
26


1 
1. 2,000,000 units of account for a ship with a tonnage not exceeding
2 
2,000 tons;
3 
2. For a ship with a tonnage in excess thereof, the following amount
4 
in addition to that mentioned in a.l;
5 
I. For each additional ton from 2001 to 30,000 tons, 800
6 
units of account;
7 
II. For each additional ton from 30,001 to 70,000 tons, 600
8 
units of account;
9 
III. For each additional ton in excess of 70,000 tons, 400 units
10 
of account.
11 
b. In respect of any other claims:
12 
1. 
1,000,000 units of account for a ship with a tonnage not exceeding
13 
2,000 tons;
14 
2. For a ship with a tonnage in excess thereof the foilowing amount in
15 
addition to that mentioned in b.l:
16 
I. For each additional ton from 2001 to 30,000 tons, 400
17 
units of account;
18 
II. For each additional ton from 30,001 to 70,000 tons, 300
19 
units of account;
20 
III. For each additional ton in excess of 70,000 tons, 200 units
21 
of account.
22 
The MARINA, with the approval of the Secretary of the Transportation, may by
23 
regulation revise the limits of liability provided for in this section to align such limits
24 
with applicable international maritime conventions.
25 
Sec. 69. Claims for Loss of Life in Excess of the Stipulated Limit — If the
26 
amount calculated in accordance with subsection (a) of the preceding section is
27 
insufficient to pay in full all the claims for loss of lite or personal injury, the amount
28 
calculated in accordance with subsection (b) shall be available for the payment of the
29 
unpaid balance of the claims under subsection (a).
30 
In this case, the unpaid balance for claims for loss of life and personal injury
31 
shall rank ratably with all other claims falling under subsection (b): Provided, however,
32 
That if there should be any claim arising from damage to harbor works, basins and
27


1 
waterways, and aids to navigation, these shall be satisfied first before any other claim
2 
falling under subsection (b) are satisfied, including any unsatisfied claims for loss of
3 
life or personal injury.
4 
Sec. 70. Salvor's Limit of Liability when Not Operating from a Ship. — The iimit
5 
of liability for any salvor who is not operating from any ship or salvage tug, or who is
6 
operating solely on the ship to, or in respect of, which he is rendering salvage services,
7 
shall be calculated in accordance with the provisions of Section 69 of this Act applying
8 
a tonnage of 1,500 tons.
9 
Sec. 71. Limit of Liability for Passenger Claims. - The limit of liability of a ship
10 
owner, ship operator, bareboat charterer, or ship manager, for passenger claims
11 
relating to loss of life or personal injury arising out of any distinct occasion, shall be
12 
an amount equivalent to 175,000 units of account multiplied by the number of
13 
passengers which the ship is authorized to carry according to the ship's certificate.
14 
Claims for loss of life or personal injury to passengers of a ship shall mean any such
15 
claims brought by or on behalf of:
16 
a. Any person carried on the ship under a contract of passenger carriage; or
17 
b. Any person carried on the ship who, with the consent of the master, is
18 
accompanying a vehicle, or a shipment of live animals, or other cargo which is
19 
covered by a contract for the carriage of goods.
20 
Sec. 72. Formula for Converting the Unit of Account to Philippine Peso. — The
21 
unit of account mentioned in this Chapter shall be converted to Philippine Pesos
22 
according to the value of the Philippine Peso on the date the limitation fund is
23 
constituted, or payment is made, or security is given. The equivalent value of the
24 
Philippine Peso shall be calculated in accordance with the method of valuation applied
25 
by the International Monetary Fund (IMF) for its operations and transactions in effect
26 
on the applicable date.
27 
Sec. 73. Aggregation of Claims for Loss of Life and Persona! Injury and for other
28 
Claims. -The limits of liability for loss of life and personal injury and for other claims
29 
determined in accordance with Section 68 hereof shall apply to the aggregate of all
30 
claims which arise on any distinct occasion against:
28


1 
a. The ship owner, ship operator, bareboat charterer, or ship manager and any
2 
person whose act, neglect or default such ship owner, ship operator, bareboat
3 
charterer or ship manager is responsible for; or
4 
b. The ship owner, ship operator, bareboat charterer, or ship manager of a ship
5 
rendering salvage services from a ship or the salvor or salvors operating from
6 
a salvage tug, and any person whose act, neglect or default the ship owner,
7 
ship operator, bareboat charterer, ship manager or salvor is responsible for; or
8 
c. The salvor who is not operating from a ship or salvage tug or who is operating
9 
solely on the ship to, or in respect of, which the salvage services are rendered
10 
and any person whose act, neglect or default the salvor is responsible for.
11 
Sec. 74. Creation of a Limitation Fund. — Any person entitled to limit his liability
12 
in accordance with Section 63 hereof, and who is alleged to be liable for a claim
13 
provide in Section 64 hereof may, at any time during the hearing of the case or after
14 
the arrest of his vessel, constitute a fund with the court in which legal proceedings
15 
have been instituted for the satisfaction of the claim subject to limitation.
16 
The fund shall be in an amount equivalent to the limits of liability set forth in
17 
Sections 68, 70 and 71 hereof, as the case may be, together with any interest due
18 
thereon from the date of the occurrence giving rise to the liability until the date of the
19 
creation of the fund. The total amount of the fund shall be subject to the rules on
20 
aggregation of claims set forth in section 73 of this Act.
21 
Any fund created shall be available only for the payment of claims in respect of
22 
which limitation of liability can be invoked.
23 
Sec. 75. Insurance Indemnity Cover. — Every ship owner or bareboat charterer
24 
shall be required to maintain adequate insurance coverage or protection and indemnity
25 
coverage to meet the financial responsibility for any liability which such ship owner or
26 
bareboat charterer may incur for loss of or injury to human life, damage to property
27 
and to the marine environment. In determining the limits for mandatory insurance
28 
coverage for seagoing ships, the MARINA shall take into account and be guided by
29 
the applicable limits of liability provided in relevant international conventions. In
30 
setting the limits for mandatory insurance coverage for coastwise vessels the MARINA
31 
shall consider the prevaiiing local social, economic and other conditions in the
32 
Philippines.
29


1 
Sec. 76. Form of the Fund. — The fund may be created, either by depositing
2 
the sum with a bank or other financial institution designated by the court, or by
3 
providing a bond, or other security acceptable to the court.
4 
The fund constituted by any of the persons mentioned in Section 63,
5 
subsections (a), (b), (c), (d) or (e) shall likewise be deemed constituted in favor of
6 
the persons mentioned in subsection (f) and (g) of that section.
7 
Sec. 77. Distribution of the Fund. — Subject to the provisions of Sections 68
8 
and 69 hereof, the limitation fund shall be distributed among the claimants in
9 
proportion to their claims against the fund as determined by the court.
10 
Sec. 78. Subrogation of Rights. — If at any time before the fund is distributed,
11 
the ship owner, ship operator, bareboat charterer, ship manager or salvor, or their
12 
respective insurers, settles a claim made against and payable by the fund, such person
13 
shall, up to the amount paid, acquire by subrogation the rights which the claimant
14 
would have enjoyed under this Title.
15 
Sec. 79. Contingency Fund for Expected Claim. — Where the ship owner, ship
16 
operator, bareboat charterer, ship manager, or salvor, or their respective insurers,
17 
establishes that it may be compelled to pay a claim, at a later date, whether in whole
18 
or in part, and because of such payment, the ship owner, ship operator, bareboat
19 
charterer, ship manager or salvor, or their respective insurers, would have enjoyed a
20 
right of subrogation if the claim had been paid before the fund was distributed, the
21 
court having jurisdiction over the claim and in which the fund has been constituted
22 
may order that a sufficient sum from the fund be provisionally set aside to enable the
23 
person who has been subrogated to the rights of the claimant to enforce his claim
24 
against the fund at such later date.
25 
Sec. 80. Bar to other Actions. — Where a limitation fund has been constituted
26 
in accordance with Section 74 hereof, any person having made a claim against the
27 
fund shall be barred from enforcing such claim against any other assets of the persons
28 
mentioned in Section 63 hereof and on whose behalf the fund has been constituted.
29 
Sec. 81. Release from Arrest after the Constitution of the Limitation Fund. —
30 
After a limitation fund has been constituted in accordance with Section 74 of this Act,
31 
any ship or other property, belonging to a shipowner, ship operator, bareboat
32 
charterer, ship manager or salvor on whose behalf the fund has been constituted,
30


1 
which has been arrested or attached in accordance with Title 11 of this Act in order
2 
to satisfy a claim which is enforceable against the fund or any other bond or security
3 
given, may be released from arrest at the discretion of the court.
4 
Such release shall however be mandatory if the limitation fund has been
5 
constituted:
6 
a. At the port where the occurrence took place;
7 
b. If the occurrence took place out of port, at the first port of call of the ship after
8 
such occurrence;
9 
c. At the port of disembarkation in respect of claims for loss of life or personal
10 
injury;
11 
d. At the port of discharge in respect of damage to cargo; or
12 
e. At the port where the arrest is made.
13 
The provisions of this section and of the immediately preceding section shall
14 
apply only if the claimant may bring a claim against the limitation fund before the
15 
court administering that fund and the fund is actually available and freely transferable
16 
to the claimant in respect of the claim.
17 
Sec. 82. Report of any Incident Involving a Philippine Registered Ship. — When
18 
any Philippine flag vessel sustains an accident or causes any incident involving the loss
19 
of life, material loss of property, or serious injury to any person, or receives any
20 
damage affecting her seaworthiness or her efficiency, or if it should cause any
21 
pollution or damage to the marine environment, regardless of where such accident or
22 
incident may occur, the ship owner, ship operator, bareboat charterer, ship manager,
23 
agent or master of such vessel shall immediately, after the occurrence of the accident
24 
or incident, send a report of the accident or incident to the regional office of the
25 
MARINA nearest the place of the accident or incident or, in the case of seagoing
26 
vessels, to the head office of the MARINA in the port of Manila, stating:
27 
a. The name of the vessel;
28 
b. The port to which the vessel belongs;
29 
c. The place where the incident occurred;
30 
d. The nature and probable cause of the incident;
31 
e. The number and names of those who perished; and
31


1 
f. The estimated amount of loss or damage to the vessel, the cargo or the marine
2 
environment.
3 
The ship owner, ship operator, charterer, ship manager, agent or master may
4 
be required to furnish such other information as shall be called for.
5 
Sec. 83. Marine Safety Investigation. — Following the occurrence of an accident
6 
or incident involving a Philippine flag coastwise or seagoing vessel resulting in the loss
7 
of life, material loss of property, or serious injury to any person, or receives any
8 
damage affecting her seaworthiness or her efficiency, or if tt should cause any
9 
pollution or damage to the marine environment, regardless of where such accident or
10 
incident may occur, the MARINA on its own or through a duly constituted independent
11 
group of suitably qualified safety inspectors, shall immediately undertake a marine
12 
safety investigation. This investigation shall be separate from any other form of
13 
investigation that may be undertaken by any other government agency.
14 
Sec. 84. Nature of the Investigation. — The investigation undertaken in
15 
accordance with this Chapter shall not apportion blame or determine liability but shall
16 
be conducted to determine the cause of the accident and the identification of
17 
measures to prevent the occurrence of similar marine casualties, accidents or incidents
18 
in the future.
19 
Sec. 85. Power of Safety Investigators to Investigate. — Maritime safety
20 
investigators appointed by the MARINA shall have full powers to board the Philippine
21 
flag ship regardless of where it may be found, and interview the master and the crew
22 
and any other person involved, and acquire such evidentiary material for purposes of
23 
undertaking and completing the marine safety investigation.
24 
Sec. 86. Amendment of Safety Reguiations. — Following completion of the
25 
safety investigation and upon a complete study of the safety investigation report, the
26 
MARINA shall take measures to amend its safety regulations to implement the
27 
recommendations made in the report.
28 
Sec. 87. Providing Reports to the International Maritime Organization. -The
29 
MARINA as competent authority shall provide a copy of the report to the International
30 
Maritime Organization to enable a wide dissemination of information and to assist the
31 
international maritime community to address safety issues.
32


1 
Sec. 88. Ship Construction. — Every new building registered under Philippine
2 
laws shall be constructed in accordance with standards for ship construction set forth
3 
in international maritime conventions and implemented through government
4 
regulations.
5 
Ship construction shall be under the supervision of the MARINA or a recognized
6 
organization appointed for the purpose. The recognized organization shall oversee the
7 
construction of the ship and ensure that the construction regulations provided in
8 
international maritime conventions and those issued by the MARINA covering the
9 
structural strength and integrity of all parts of the ship's hull and its appendages as
10 
well as the safety and reliability of the main propulsion, steering systems and auxiliary
11 
systems of the ship are followed.
12 
Sec. 89. Navigation and Communications Equipment — Every Philippine flag
13 
vessel shall have on board such navigation and communication equipment and
14 
apparatus required by international maritime convention for the safe navigation of
15 
ships. Every equipment and apparatus that shall be required to be installed on board
16 
shall be suited for the type, tonnage, power, means of propulsion and trading
17 
limitations of the particular ship.
18 
Sec. 90. Equipment to Prevent Marine Poiiution. — Every Philippine flag vessel
19 
shall have on board equipment and apparatus to prevent, reduce, or control pollution
20 
to the marine environment emanating from ships. Every equipment and apparatus
21 
required to be installed on board shall be suited for the type, tonnage, power, means
22 
of propulsion and trading limitations of the particular ship.
23 
Sec. 91. Inspections and Surveys. — To ensure the proper maintenance of the
24 
ship's hull, machinery and equipment, its through-life compliance with international
25 
conventions and government regulations, and its safe operation, every Philippine flag
26 
vessel shall be subject to periodic inspections and surveys.
27 
Sec. 92. Scope of Inspections and Surveys. — The inspections and surveys
28 
shall! be conducted in accordance with international maritime conventions and
29 
government regulations, and shall include an inspection and survey of the ship's:
30 
a. Hull structure;
31 
b. Machinery and equipment;
32 
c. Life-saving equipment;
33


1 
d. Fire-fighting equipment; and
2 
e. Radio and communications instaiiations.
3 
Sec. 93. Extent of authority of recognized organization. - The MARINA, in
4 
appointing a recognized organization or ciassification society to conduct the inspection
5 
and survey of ships, shaii inform the recognized organization of the specific
6 
responsibilities and conditions of the authority delegated to it.
7 
Sec. 94. Issuance of Certificates. - The recognized organization, pursuant to
8 
the functions delegated to it by the MARINA, shall have the authority to issue vessel
9 
certificates to every Philippine flag vessel and for this purpose, the vessel certificates
10 
issued by such recognized organization shall be deemed to have met the requirements
11 
of this Act.
12 
Copies of the vessel certificates shall be submitted to the MARINA which shall,
13 
upon verification of compliance, issue a certificate of inspection in favor of the
14 
complying vessel confirming the findings of the recognized organization.
15 
Sec. 95. Avaiiabiiity of Vessei Certificates. - The vessel certificates mentioned
16 
in the immediately preceding section shall be readily available on board the vessel for
17 
examination at all times.
18 
Sec. 96. Citizenship of Crew. —Vessels engaged in coastwise trade as well as
19 
sea going vessels shall employ full Filipino crew: Provided, however. That seagoing
20 
vessels shall be subject to the exemption mentioned in Section 9b(5) hereof.
21 
An exemption from this citizenship requirement on such terms and conditions
22 
and for a limited period as may be determined by the MARINA may be obtained from
23 
the MARINA upon written application from the ship owner or operator. This exemption
24 
however shall not be granted to coastwise vessels.
25 
Sec. 97. Crew Competence. — Every member of the crew of a Philippine flag
26 
vessel shall possess the appropriate certificate of competency setting forth his
27 
competence to serve in the capacity and perform the functions involved at the level
28 
of responsibility, for the position held, for the type, tonnage, power, means of
29 
propulsion, and trading limitations of the ship concerned.
30 
The certificate of competency, as well as any endorsements thereto and any
31 
renewals thereof, shall be issued by the MARINA. The certificate of competency shall
32 
attest to the fact that the seafarer to whom it is issued meets the requirements for
34


1 
service, age, medical fitness training, qualification, and examinations for the position
2 
held.
3 
Sec. 98. Crew Deployment — Crew deployment to Philippine flagged seagoing
4 
vessels engaged in international or regional trade shall continue to be undertaken by
5 
the Philippine Overseas Employment Administration (POEA) in accordance with the
6 
appropriate provisions of the Maritime Labor Convention (MLC).
7 
Sec. 99. Requisition of Vesseis. — The President of the Philippines may, in times
8 
of war and other national emergency, when the public interest so requires, order the
9 
requisition of any and all vessels of Philippine registry, absolutely or temporarily, for
10 
any naval or military purpose. The Government shall pay the owner or operator of the
11 
vessel, based on normal conditions at the time of requisition:
12 
a. The fair market value, if the vessel is taken absolutely; or
13 
b. The fair charter value, if the vessel is taken temporarily, for the period
14 
commencing from the takeover by the Government to the date the vessel is
15 
returned to its owner or operator.
16 
Sec. 100. Streamlined and Rationalized Procedures. — To ensure the effective
17 
implementation of this Act and the further streamlining of processes to support the
18 
country's competitiveness and promote trade facilitation, the MARINA shall coordinate
19 
with the Department of Foreign Affairs (DFA), Department of Finance (DOF),
20 
Department of Labor and Employment (DOLE), Department of Health (DOH),
21 
Department of Interior and Local Government (DILG), Securities and Exchange
22 
Commission (SEC), Philippine Overseas Employment Administration (POEA), Bureau
23 
of Immigration (BID), Board of Investments (BOI), Bureau of Customs (BOC), Bureau
24 
of Internal Revenue (BIR), Philippine Ports Authority (PPA), Philippine Coast Guard,
25 
Bureau of Fisheries and Aquatic Resources (BFAR), Bureau of Quarantine (BOQ) and
26 
other relevant offices and agencies to further streamline policies, requirements,
27 
processes, procedures, and national and local government fees, dues, charges, tariffs,
28 
assessments, rates and other levies, on the acquisition, registration and operation of
29 
vessels; the hiring, deployment, change and repatriation of crew; the construction,
30 
repairs, maintenance and recycling of ships; and other government and business
31 
processes concerning vessels in the Philippine Registry.
35


1 
Sec. 101. Implementing Rules and Regulations (IRR). — Within sixty (60) days
2 
after the effectivity of this Act, the MARINA shali issue the implementing ruies and
3 
regulations as may be necessary to impiement the provisions of this Act.
4 
Sec. 102. Administrative Offenses and Penalties. — To ensure faithful
5 
compliance with the rules and regulations issued in accordance with the preceding
6 
section, the MARINA, through summary administrative proceedings, may identify,
7 
prohibit, and penalize such acts and activities that may reduce the efficiency and
8 
reliability of the Phiiippine Ship Registry, impede the effectiveness of the exercise of
9 
Philippine jurisdiction and control over Philippine flag vessels, or otherwise interfere
10 
with its duties and responsibilities as a flag State and the implementation of this Title.
11 
For this purpose, the MARINA is authorized to impose an administrative fine of
12 
not less than Ten Thousand Pesos (PhP10,000.00) but not more than Five Flundred
13 
Thousand Pesos (PhP500,000.00), as well as the penalty of suspension, cancellation,
14 
or revocation of the reievant certificates, for violations of this Act and such rules and
15 
regulations that it may issue pursuant to this Act.
16 
The range of fines shall be subject to review and revision every five (5) years
17 
from the date of effectivity of this Act, but in no case shall any increase exceed an
18 
amount equivalent to twenty percent (20%) of that previously imposed.
19 
Sec. 103. Transitory Provisions. — Every ship currently registered under the
20 
Jaws of the Philippines and granted the privilege to fly its flag shall be deemed to be
21 
registered under this Act in so far as its registration is not inconsistent with the
22 
provisions of this Act and such registration shall continue to be valid until its expiration
23 
unless sooner revoked by the MARINA.
24 
Any ship mortgage entered into in accordance with the provisions of the Ship
25 
Mortgage Decree or the Chattel Mortgage Law shall continue to be valid and effective
26 
and its registration shall be transferred to the MARINA in accordance with the
27 
provisions of this Act. Nothing in the transfer shall change or in any way alter or affect
28 
any preference a registered mortgage may enjoy or the original date on which such
29 
mortgage was entered in the registry.
30 
Sec. 104. Separability Clause. — If, for any reason, any section, subsection,
31 
clause or term of this Act is held to be illegal, invalid, or unconstitutional, such parts
32 
not affected by such declaration shaii remain in fuil force and effect.
36


1 
Sec. 105. Repealing Clause. — The following laws are hereby repealed:
2 
a. Articles 573 to 585 of the Code of Commerce of 1888;
3 
b. Sections 801 to 821 of Republic Act No. 1937;
4 
c. Republic Act No. 913;
5 
d. Republic Act No. 1407;
6 
e. Republic Act No. 6106;
7 
f. Republic Act No. 7471, as amended;
8 
g. Republic Act No. 9301;
9 
h. Presidential Decree No. 214;
10 
i. Presidential Decree No. 760, as amended.
11 
The provisions of the following laws covering the powers and functions
12 
of the MARINA are hereby amended insofar as they are inconsistent with
13 
Section 6 of this Act;
14 
j. 
Presidential Decree No. 474, as amended;
15 
k. Executive Order No. 125 and 125-A, as amended;
16 
I. 
Section 10 of Republic Act No. 9295;
17 
m. Section 14 of Republic Act No. 9295 is hereby amended insofar as it is
18 
inconsistent with Section 51 of this Act.
19 
Such other laws, presidential decrees, executive orders, issuances, rules
20 
and regulations or parts thereof contrary to, or inconsistent with, the
21 
provisions of this Act are hereby repealed, amended or modified accordingly.
22 
Sec. 106. Effectivity. — This Act shall take effect fifteen (15) days after its
23 
complete publication either in the Official Gazette or in at least two (2) newspapers of
24 
general circulation in the Philippines.
Approved,
37