THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
S. No. 
Introduced by Senator S. R. Osrneia 111 
EXPLANATORY NOTE 
Presidential Decree No. 760 was signed in 1975. This decree allowed the 
temporary registration in the country of foreign-owned ships bareboat chartered 
by Philippine nationals. 
Once registered, the ship acquires international 
recognition as a Philippine registered vessel, entitling it to the rights of a 
beneficially owned ship. 
In 1976, Presidential Decree No. 866 extended the coverage of the law 
to include overseas shipping, in addition to coastwise shipping. In 1980, 
Presidential Decree 171 1 extended the effectivity of the original law from 1990 
to 1999. 
The salutary effects of bareboat chartering on domestic and ocean 
going shipping are apparent in the constant upgrading of bottoms plying the 
Philippine trade routes. The fast paced developments in transport and cargo 
handling today have led 
to a faster rate of obsolescence among vessels. 
For example, the cargo-ships of a couple of decades ago have been replaced 
by the more efficient containerized vessels. Japanese roro ships which could 
accommodate 12 vehicles were popular a decade ago, but have now been 
outmoded with the availability of European vessels which can accommodate 30 
vehicles, 
and which have 
higher speeds and superior engine economy. 
Without bareboat chartering, domestic shipping enterprises would have had to 
sink scarce capital resources in the acquisition of vessels, and the burden of 
finding a second 
hand market once new technology rendered the vessels 
obsolete. Bareboat chartering has afforded our shipping companies with 
opportunities to save on capital expenditures, as well as the flexibility to 
upgrade to the latest innovations in the market. 


In cognizance of the fact that bareboat chartering has ceased to be a 
transitional facet in the development of Philippine domestic and ocean-going 
shipping, this bill seeks to institutionalize the practice of bareboat chartering, 
and lift the limitations on the effectivity of P. D. 171 1 which ends in 1999. 
In view of the foregoing, the immediate approval of this bill is earnestly 
requested. 
S E ~ G I Q  
QSMENA 1111 
Senator 


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THIRTEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINE§ 
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First Regular Session 
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S E N A T E  
S. No. 
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Introduced by Senator S. R. OsmeAa 111 
“AN ACT 
PROVIDING FOR A CONTINUING BAREBOAT CHARTERING PROGRAM.” 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress 
assembled: 
SECTION 1: Any provision of law, decree, executive order or rules 
and regulations to the contrary notwithstanding, any foreign-owned vessel 
under bareboat charter 
or 
lease to Philippine nationals as defined in 
Section 3 (c) of 
Presidential Decree No. 474 entitled the “Maritime Industry 
Decree of 1974”, may be issued a Certification of Philippine Registry by the 
Maritime Industry Authority (MARINA); Provided, That said charter or lease: (I) 
has the prior written approval of the MARINA; (2) shall be valid and effective for 
a period of not less than one (1) year; Provided, FURTHER, That the operation 
of the vessel shall entirely be in the hands of Philippine nationals and free from 
any participation or interference from the foreign owner, except insofar as such 
action shall be to directly protect his rights as owner thereof: Provided, FINALLY, 
That the registered vessel shall be manned completely by Filipino crew, except 
in the case of specialized vessels and subject to the rules and regulations that 
the MARINA may prescribe in relation thereto. 


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Sec. 2: Any vessel issued a certificate of Philippine Registry as provided 
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for in the Section q ,  shall be entitled to all the rights and privileges of a vessel of 
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Philippine registry, as well as, the protection of Philippine laws during the validity 
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Sec. 3. 
The Maritime Industry Authority shall promulgate rules and 
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regulations for the proper and efficient implementation of this Act, considering 
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among others, but not limited to the following : (a) it shall ensure that the 
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bareboat chartered or leased 
vessels comply with existing Philippine laws, 
and effectivity of its certificate of registration. Correspondingly, the vessel shall 
also be subject to all requirements, limitations and all the duties and obligations 
imposed upon vessels of Philippine registry. 
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rules and regulations on registration and documentation as well as applicable 
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international rules and standards, particularly on the safety management of 
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ships, safety of persons on board and environmental protection, (b) to ensure 
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that vessels undergo periodic surveys and are in compliance with existing 
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Philippine standards and requirements and/ or international rules and standards, 
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as the case may be; and, (c) that the officers and crew of such vessels are 
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qualified and competent in accordance with the applicable international rules 
and standards. 
Sec. 4. 
In the grant of the privilege under this Act, the MARINA shall 
uphold and safeguard the integrity of the Philippine flag. 
Sec. 5. Repealing Clause. - 
Presidential Decrees No. 760, 866 and 
171 1 are hereby repealed. Any provision of law, decree, executive order or and 
regulations inconsistent with this Act is hereby repealed, amended or modified 
accordingly . 
Sec. 6. - Effectivity Clause. - This Act shall take effect fifteen (1 5) days 
after publication in a newspaper of general circulation. 
Approved,