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SIXTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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Second Regular Session 
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'14 
~UG 19 P4 :37 
SENATi;.. 
S.B. No. 2\164 
Introduced by: Senator Paolo Benigno ItBam" A. Aquino IV 
AN ACT EXEMPTING THE CARRIAGE OF CONTAINER VANS FROM THE PROVISIONS OF SECTION 
1009 OF PRESIDENTIAL DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF AND CUSTOMS 
CODE OF 1978, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
As a response to the call of the President and key stakeholders, this measure seeks to 
amend Section 1009 of the Presidential Decree No. 1464, otherwise known as the Tariff and 
Customs Code of 1978 to introduce reform in the shipping industry. 
Given that the Philippines is an archipelago composed of more than 7,100 islands, the 
transport of goods relies heavily on sea routes interconnecting the islands. Shipping is the 
means of transporting goods between islands and even in and out of the country. Shipping cost 
impacts the movement and price of traded goods. 
Facilitating inter-island trade in the country has become costly and cumbersome for 
micro, small and medium enterprises (MSMEs). Currently, inter-island shipping is exclusively 
reserved for ships bearing the Philippine flag. While this helps the domestic shipping industry, 
the cost of shipping is hampering trade especially for the MSMEs. 
This measure seeks to allow foreign ships to call in multiple ports provided that their 
cargoes are intended for import or export and duly cleared by the Commissioner of Customs. 
This would allow importers and exporters to co-load in foreign ships going in or out of the 
Philippine jurisdiction. 
Moreover, this bill gives clarification on the definition of common carriers and public 
service in the shipping industry. With this bill, foreign cargoes shall not be subjected to the law 
concerning common carriers and public services as defined in the Civil Code and the Domestic 
Shipping Development Act, respectively. 
MSMEs who are importing or exporting goods will be able to access a cheaper 
alternative in transporting their goods through co-loading in foreign ships. Ultimately, this leads 
to lower prices of goods for the Filipino public. 
In view of the foregoing, the approval of this bill is earnestly sought. 
Senator p~~n0sr~:v:o 
IV 


i. 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
'14 
AUG 19 P 4 :37 
SENAXE 
S.B, No. ~36 4 
R«;CEIVE1) Hy;-----t-
Introduced by: Senator Paolo Benigno "Bam" A. Aquino IV 
AN ACT EXEMPTING THE CARRIAGE OF CONTAINER VANS FROM THE PROVISIONS OF 
SECTION 1009 OF PRESIDENTIAL DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF AND 
CUSTOMS CODE OF 1978, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
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SECTION 1. Declaration of Policy. -It is the policy of the State to: 
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a. To assist importers and exporters in enhancing their competitiveness in the light 
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of intensifying international trade; and 
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b. To lower the cost of shipping containerized export cargoes from Philippine ports 
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to international ports and containerized import cargoes from international ports. 
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SECTION 2. Definition of Terms. - For the purposes of this bill, these terms are defined 
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as follows: 
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a. "Container Van" shall refer to a standardized reusable steel box used for the 
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safe. efficient and secure storage and movement of materials and products 
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within an intermodal freight transport system where the cargo carried in the 
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container van can be moved from one mode of transport to another without 
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having to unload or reload the contents of such container van; 
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b. "Domestic port" shall refer to any Philippine seaport; 
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c. "Domestic cargo" shall refer to goods, articles, commodities or merchandise 
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which are intended to be shipped from one domestic port to another domestic 
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port, even if. in the carriage of such cargo, there may be an intervening foreign 
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port; 
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d. "Export cargo" shall refer to goods, articles, commodities or merchandise carried 
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in container vans of foreign vessels and duly declared by the Bureau of Customs 
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at the port of origin as cargoes for shipment to a port outside the jurisdiction of 
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the Philippines; 


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e. "Foreign cargo" shall refer to import or export cargo carried in a container van of 
a foreign vessel; 
f. 
"Foreign container van" shall refer to container van whether empty or loaded 
with import or export cargo which belongs to a foreign vessel; 
g. "Foreign port" shall refer to any seaport outside the jurisdiction of the 
Philippines; 
h. "Foreign vessel" shall refer to a ship registered or documented in a flag registry 
other than that of a Philippines; and 
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"Import cargo" shall refer to goods, articles, commodities or merchandise of 
foreign origin carried in a container van of a foreign vessel which are intended to 
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be cleared by the Bureau of Customs for delivery to the port of final destination 
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within the jurisdiction of the Philippines. 
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SECTION 3. Scope. _. This Act shall be apply exclusively to a foreign container van and to 
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import and export articles or cargoes carried in such foreign container van by a foreign vessel 
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SECTION 4. Carriage of a foreign container van or foreign cargo by a foreign vessel. -
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This Act shall allow the following circumstances: 
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a. A foreign container van carrying foreign cargo arriving from a foreign port on a 
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foreign vessel, such foreign vessel, after being cleared at its port of entry, shall 
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be allowed to carry the foreign container van to its domestic port of final 
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destination; 
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b. A foreign container van carrying foreign cargo arriving from a foreign port on a 
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foreign vessel may be carried by another foreign vessel calling at the same port 
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of entry to the domestic port of final destination of such foreign cargo; 
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c. A foreign container van carrying foreign cargo intended for export may be 
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carried on a foreign vessel from its domestic port of origin through another 
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Philippine port to its foreign port of final destination; 
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d. A foreign container van carrying foreign cargo intended for export may be, 
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transshipped in any foreign vessel from its domestic port of origin through a 
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domestic transshipment port and transferred at such domestic transshipment 
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port to another foreign vessel which shall carry it to its foreign port of final 
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destination; 
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e. An empty foreign container van going to or coming from any domestic port or 
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going to or coming from a foreign port; and 


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SECTION 5. Authority of the Commissioner of Customs. - The Commissioner of Customs, 
upon such reasonable conditions as he may impose, may do the following acts: 
a. Clear any foreign vessel for any domestic port and authorize the conveyance 
therein of a foreign container van containing foreign cargo bought from abroad 
upon such foreign vessel; 
b. Allow a foreign vessel to take a foreign container van containing import or export 
articles or cargo at any Philippine port and convey the same upon such foreign 
vessel to a foreign port; 
c. 
Authorize the transshipment of such foreign cargo intended for export through 
another Philippine port of its conveyance by another foreign vessel to the cargo's 
foreign port of final destination; 
d. Take measures to ensure that no foreign vessel carries any domestic cargo; and 
e. Take measures to address illegal activities, including smuggling. 
SECTION 6. Application of the Carriage of Goods by Sea Act. - Carriage conducted in 
accordance with this law shall be governed by Commonwealth Act No. 65, otherwise known as 
the Carriage of Goods by Sea Act with respect to the liability of the carrier for the loss of, or 
damage to, goods carried. 
SECTION 7. Carriage by foreign vessels not a public service, foreign vessels not common 
carriers. - Foreign vessels engaging in carriage conducted in accordance with this law shall not 
be considered common carriers as provided in Republic Act No. 386, otherwise known as the Civil 
Code; neither shall such foreign vessels be considered as offering a public service and thus shall 
fall outside the coverage of Republic Act No. 9295, otherwise known as the Domestic Shipping 
Development Act. 
SECTION 8. Prohibitions. - No foreign vessel shall be allowed to carry any domestic cargo 
or domestic container van, whether loaded or empty, even if such domestic container van may 
contain foreign cargo. 
SECTION 9. Implementing Rules and Regulations. - Within sixty (60) days from the 
approval of this Act, the Bureau of Customs, in coordination with the Department of Finance, 
shall promulgate such rules and regulations necessary for the effective implementation of this 
Act. 
SECTION 10. Separability Clause. - If any provision of this Act is subsequently declared 
invalid or unconstitutional, other provisions hereof which are not affected thereby shall remain 
in full force and effect. 


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SECTION 11. Repealing Clause. - All laws, decrees, orders, rules and regulations, and 
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other issuances, or parts thereof, inconsistent with the provisions of this Act are hereby repealed 
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or modified accordingly. 
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SECTION 12. Effectivity Clause. - This Act shall take fifteen (15) days after its publication 
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in the Official Gazette or in a newspaper of general circulation 
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Approved,