FOURTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
The competitiveness and efficiency in facilitating an expedient entry and 
departure of ships in its port of origin and destination is a role played by ship agents. 
The term "ship agent" as held by Supreme Court in its long line of decisions, is 
broad enough to include the ship owner. Pursuant to Articles 586 and 587 of the Code 
of Commerce, both the ship owner and ship agent are civilly and directly liable for the 
indemnities in favor of third persons, which may arise from the conduct of the captain in 
the care of goods transported, as well as for the safety of passengers transported. In 
other words, it expresses the universal principle of limited liability under maritime law. 
However, other kinds of ship agents who are known as "tramp or port agents" are 
appointed by tramp operators for a particular voyage only and are merely responsible in 
providing assistance to facilitate the vessel's entry into, stay and departure from the 
port. 
Thus, it is necessary to update the antiquated provisions of the Code of 
Commerce by providing among others, a clear definition of a tramp service and a tramp 
agent as well as to delimit the cargo liability of a tramp agent. 
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The early enactment of this legislation is earnestly sought. 
MAINNY 
V I L ~ R  


FOURTEENTH CONGRESS OF THE) 
Second Regular Session 
REPUBLIC OF THE PHILIPPINES 
) 
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SENATE 
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S. No. 
Introduced by Senator Manny Villar 
AN ACT DEFINING THE LIABILITY OF SHIP AGENTS IN THE TRAMP 
SERVICE, AMENDING FOR THIS PURPOSE ARTICLE 586 OF 
THE CODE OF COMMERCE AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Represenfatives of the Philippines in 
Congress assembled: 
SECTION 1. Article 586 of the Code of Commerce is hereby amended to 
read as follows: 
“ARTICLE 586. The shipowner and the ship agent shall be civilly 
liable for the acts of the captain and for the obligations contracted by the 
latter to repair, equip, and provision the vessel, provided the creditor 
proves that the amount claimed was invested for the benefit of the same. 
“By ship agent is understood the person entrusted with provisioning 
or representing the vessel in the port in which it may be found. SHIP 
AGENT MAY ALSO MEAN A TRAMP AGENT APPOINTED BY THE 
SHIPOWNER, CHARTERER OR CARRIER IN A TRAMP SERVICE FOR 
ONE PARTICULAR VOYAGE WHOSE AUTHORITY IS LIMITED TO 
THE CUSTOMARY AND USUAL PROCEDURES AND FORMALITIES 
REQUIRED FOR THE FACILITATION OF THE VESSEL’S ENTRY, 
STAY AND DEPARTURE IN THE PORT. 
“TRAMP SERVICE IS THE OPERATION OF A CARRIER WHICH 
HAS NO REGULAR AND FIXED ROUTES BUT ACCEPTS CARGO AT 
ANY TIME AS AGREED UPON BETWEEN THE SHIPOWNER AND THE 
SHIPPERS AND IS HIRED ON A CONTRACTUAL OR CHARTERED 
BASIS UNDER MUTUALLY AGREED TERMS, AND USUALLY 
ARRIES BULK OR BREAK BULK CARGOES. 
“THE LIABILITY OF THE SHIP AGENT OR A TRAMP AGENT IN 
A TRAMP SERVICE SHALL NOT EXTEND TO THE OBLIGATIONS 
ASSUMED BY THE SHIPOWNER, CHARTERER OR CARRIER WITH 
THE SHIPPER OR RECEIVER OF THE GOODS CARRIED BY THE 
SHIP: PROVIDED, THAT IT IS THE DUTY OF THE TRAMP AGENT TO 
ASSIST THE SHIPPER OR RECEIVER IN MAKING CARGO LIABILITY 
CLAIMS AGAINST THE SHIPOWNER, CHARTERER OR CARRIER: 
PROVIDED, FURTHER, THAT FAILURE OR INACTION TO ASSIST 
THE SHIPPER OR RECEIVER SHALL SUBJECT THE TRAMP AGENT 
TO APPLICABLE ADMINISTRATIVE SANCTIONS IMPOSED BY 
APPROPRIATE GOVERNMENT AGENCIES.” 
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SEC. 2. Ail laws, presidential decrees, executive orders, rules and 
regulations or parts thereof contrary to or inconsistent with the provisions of this 
Act is hereby repealed, modified or amended accordingly. 
SEC. 3. This Act shall take effect fifteen (15) days after its publication in at 
least two (2) national newspapers of general circulation. 
Approved, 
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