NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
Excessive and unnecessary fees, charges and surcharges imposed as origin and 
destination charges as well as unconscionable fees imposed on the management of empty 
containers by international shipping lines undermine the country's competitiveness. These 
charges being imposed and collected at will by international shipping lines have enormous 
impact on the economy as it (a) increases the cost of importing raw materials and intermediate 
goods; (b) escalates the prices paid by the domestic consumer; (c) impairs the government's 
collection of correct taxes; and, (d) undermines the privity of obligations and contracts 
principle. 
This bill seeks to ensure that the Philippine Government asserts its inherent right to 
implement and enforce compliance with existing local and international consumer trade laws; 
to protect the interests of the consumer, promote general welfare and to establish standards 
of conduct for business and industry as well as enforce the compliance with International 
Commercial Terms (INCOTERMS) for the protection and fair treatment of Philippine domestic 
manufacturers, exporters and importers. 
In view of the foregoing, immediate approval of this measure is earnestly sought. 
RUFUS B. RODRIGUEZ 
10507
June 6, 2024
12:14 pm


NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
ENHANCING THE COMPETITIVENESS OF PHILIPPINE MARITIME TRADE BY 
STRENGTHENING THE OVERSIGHT FUNCTIONS OF RELEVANT GOVERNMENT 
AGENCIES OVER THE IMPOSITION OF SHIPPING CHARGES BY INTERNATIONAL 
SHIPPING LINES AND INSTITUTIONALIZING MECHANISMS FOR THE EFFICIENT 
MOVEMENT OF GOODS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. – This Act shall be known as the “International Maritime Trade 
Competitiveness Act.”  
SEC. 2. Declaration of Policy and Objectives. – It is hereby declared the policy of the State to 
promote industrialization through industries which are competitive in both domestic and foreign 
markets. In pursuit of this policy, the State hereby recognizes that providing access to an 
efficient and reliable transport and logistics services is a key strategy towards enhancing the 
competitiveness of Philippine products.  
The State further recognizes the need to ensure a sound regulatory environment that 
would promote competition among transport and logistics providers to improve service quality 
and reduce cost. It is, likewise, cognizant of the need to maintain a balance between 
transportation regulation and investment promotion and to ensure that transport and logistics 
providers can obtain a reasonable return on their business operations.  
The State also recognizes the sanctity of commercial contracts which lay down the 
obligations and risks assumed by the parties to facilitate fair, harmonious and convenient trade 
negotiations and movement of goods.   
Towards this end, the following objectives shall be pursued: 
a) Protect Filipinos against deceptive, unfair, and unconscionable acts and practices;
b) Promote transparency in the transactions of international logistics service providers,
including international shipping lines; Ensure proper government oversight over the
imposition of domestic charges by international shipping lines and related business
practices;
c) Empower government institutions in their roles of promoting an efficient, competitive,
and reliable logistics services; and
d) Formulate policies and develop programs that would redound to the development of the
transport and logistics sector in support of domestic and international trade.
SEC. 3. Definition of Terms. – As used in this Act: 
10507


a) 
Anchorage refers to a place with sufficient depth of water where vessels berth within 
the harbor;   
 
b) 
Bill of Lading refers to a document issued by a carrier that lists goods being shipped 
and specifies the terms of their transport;  
 
c) 
Cargo throughput refers to the total volume of cargo discharged and loaded at the port. 
It includes breakbulk, liquid bulk, dry bulk, containerized cargo, transit cargo, and 
transshipment;  
 
d) 
Consignee refers to the party appearing in the transport document to whom delivery 
may be lawfully made in accordance with the contract of carriage;  
 
e) 
Container deposit refers to the amount posted with shipping lines, freight forwarders, 
customs brokers and logistics operators or their collection agent upon the pick up or 
withdrawal of the container from the port of container yard;  
 
f) 
Container yard refers to a designated area where containers and chassis are received, 
stacked, and dispatched;  
 
g) 
Containerized cargo refers to a cargo packed in vans or containers for easy handling 
and transporting of the same as a unit;  
 
h) 
Customs broker refers to any person who is a bona fide holder of a valid Certificate of 
Registration or Professional Identification Card issued by the Professional Regulatory 
Board and Professional Regulation Commission pursuant to Republic Act No. 9280, 
otherwise known as the “Customs Brokers Act of 2004, as amended;”  
 
i) 
Delivery order refers to a document issued by the shipping line releasing the cargo to 
the consignee mentioned in the Bill of Lading upon payment of all handling charges;  
 
j) 
Demurrage fee refers to the amount charged by the shipping lines, freight forwarders, 
customs brokers, and logistics operators if full and loaded containers are not collected by 
the customers and remain inside the port, terminal, or container yard after the lapse of the 
allowable free time;  
 
k) 
Detention charges refer to the amount charged by the shipping lines, freight 
forwarders, customs brokers, and logistics operators per day once customers have 
collected the empty containers from outside the port, but do not return the empty containers 
to the depots after the specified free time;  
 
l) 
Dwell time refers to the number of hours spent by a vessel from waiting time to 
berthing, and until the time of completion of the un-berthing process on final departure;  
 
m) Freight forwarder refers to an entity that acts as a cargo intermediary and facilitates 
transport of goods on behalf of its client without assuming the role of a carrier, or assuming 
such role in the case of non-vessel owning common carrier (NVOCC), which can also 
perform other forwarding services, such as booking cargo space, negotiating rates, 
preparing documents, advancing freight payments, providing packing or crating, trucking 
and warehousing, engaging as an agent or representative of a foreign non-vessel operating 
as a common carrier or cargo consolidator named in a master bill of lading (BL) as 
consignee of a consolidated shipment, and other related undertakings;  


 
n) 
Inland container depot refers to an intermodal transport terminal, situated outside the 
ports and equipped for handling and temporary storage of cargo, which is authorized by 
the Bureau of Customs (BOC) to handle the processing, examination, and clearance of 
arriving laden containers;  
 
o) 
International commercial terms refer to a set of internationally-recognized rules which 
define the responsibilities of sellers and buyers. These specify who is responsible for paying 
for and managing the shipment, insurance, documentation, customs clearance, and other 
logistical activities;  
 
p) 
International shipping line or carrier refers to person or entity who, in a contract of 
carriage, undertakes to perform or to procure the performance of carriage of goods by sea, 
or inland waterway or by a combination of such modes by issuing its own BL and assuming 
responsibilities for the shipments that call at the international ports of the Philippines;  
 
q) 
Last Mile logistics refers to the final step of the delivery process from a distribution 
center or facility to the end-user;  
 
r) 
Logistics service providers refers to third-party logistics providers who are outsourced 
to manage a company's warehousing, distribution and transportation of freight;  
 
s) 
Non-containerized cargo refers to goods shipped in pieces separately without the use 
of a container that include goods that are shipped in crates, bags, boxes, drums, and 
barrels and which come in extremely large sizes or dimensions;  
 
t) 
Non-vessel operating common carrier refers to an entity that provides a point-to-point 
service, without owning a vessel, and which may include several modes of transport of full 
container load (FCL) shipments or undertakes groupage of less than container load (LCL) 
shipments issues its own BL, and assumes responsibilities for the shipments;  
 
u) 
Port congestion refers to a situation at the port, as determined by the Philippine Ports 
Authority (PPA) based on the guidelines and parameters set by the MARINA Board (Board), 
that effectively stalls the movement of cargoes leading to adverse economic 
consequences;  
 
v) 
Service contract refers to a contract between a shipper and a carrier or conference 
which contains the terms and conditions respecting the transport of goods from a foreign 
port to a Philippine port or vise-versa;  
 
w) Shipper refers to the person or company named in the shipping documents as the 
party responsible for initiating the shipment and entering into a transport contract with the 
carrier;  
 
x) 
Port or terminal operator refers to an entity that owns or leases ports or terminals and 
is involved in managing the movement of cargo containers between cargo ships, trucks and 
freight trains, and in optimizing the flow of goods through customs to minimize the amount 
of time a ship spends in port. A port or terminal operator may be a public or private entity.  
  
SEC. 4. Coverage. – This Act shall apply to all aspects affecting the imposition of shipping 
charges by international carriers arriving at or originating from Philippine ports.  
  


SEC. 5. Transparency of Freight and Other Charges. – Upon the effectivity of this Act, all port 
or terminal operators, international carriers, NVOCCs and forwarders shall inform the Maritime 
Industry Authority (MARINA) of their regular shipping charges and fees and publish the same 
in a newspaper of general circulation: Provided, That the publication requirement is deemed 
complied with by the establishment and management of a real-time online website accessible 
to the public. No charges or fees shall be imposed beyond the published rates.  
No new or initial rate or change in an existing rate that results in an increased cost to the 
shipper may become effective earlier than thirty (30) days after the submission to the MARINA 
of such new shipping rates, except when allowed by MARINA for reasonable or good cause: 
Provided, That a change in an existing rate resulting in a decreased cost to the shipper may 
become effective upon publication and filing.  
  
SEC. 6. Imposition of Local Shipping Charges by International Carriers. – No local charges or 
surcharges, except for internationally-accepted surcharges, fees for value-added services, 
and behavioral charges such as late payment fee, container insurance, shall be charged by 
international shipping lines or their agents, freight forwarders and NVOCCs to Philippine 
consignees and shippers. The imposition and parameters of such imposition must be clearly 
defined in the contract of carriage and subscribed by the shipper or consignee.  
  
SEC. 7. Agreements. – Within ninety (90) days after the effectivity of this Act, certified copies 
of all existing agreements between and among international carriers operating in Philippine 
ports and agreements among Philippine port or terminal operators as well as among one or 
more Philippine port or terminal operators and one or more international carriers operating in 
Philippine ports that affect Philippine maritime trade, shall be submitted to the MARINA.    
Any agreement or any amendment thereto shall become effective thirty (30) days after 
such submission: Provided, That, during the effectivity of such agreement, if the MARINA 
determines that the same is likely to produce an unreasonable reduction in transportation 
services or an unreasonable increase in transportation cost, it may refer the same to the 
Philippine Competition Commission (PCC) for appropriate action.  
  
SEC. 8. Detention Charges and Demurrage Fees. – No detention charges in the return of 
empty containers shall be imposed by shipping lines when the delay is caused by them. For 
this purpose, international shipping lines must ensure that the delivery order always indicates 
the container depot where the empty container owned by the shipping lines must be returned.  
Any demurrage fee or detention charge shall not constitute a direct or indirect lien on 
container deposits or on other cargoes or shipments covered by a separate transaction of the 
same shipper or consignee.  
  
SEC. 9. Container Deposits. – The MARINA may allow the imposition of container deposits 
only if:  
a) the forwarders or agents of international shipping lines implement an expeditious 
procedure in refunding the same within a non-extendible period of fifteen (15) days 
from the return of the container.   
b) there are clear and fair standards for deductions made known by such forwarders or 
agents to the other party prior to engagement; and  
c) there is actual proof that a container deposit has been paid before any deduction is 
made.  
  
SEC. 10. Role of Government Agencies. – To effectively implement and carry out the 
objectives of this Act the following agencies shall exercise and enforce the following functions 
in addition to their existing mandates:   
  


a) Department of Transportation – The DOTr shall facilitate the expansion of port system 
capacity of port authorities and the expansion of the Philippine freight transport system to 
facilitate the movement of containers to and from the ports.   
  
b) Maritime Industry Authority – The MARINA shall ensure competitive and efficient 
international maritime transportation services for the shipping public by:  
  
1. Reviewing and monitoring agreements among international shipping lines and port 
operators serving Philippine ports to ensure that they do not cause substantial 
increases in transportation costs or reduction in transportation services.  In applicable 
cases, the MARINA may endorse any agreement that it finds anticompetitive to the 
Philippine Competition Commission for appropriate action;  
 
2. Investigating, hearing and adjudicating complaints regarding the imposition of rates 
and charges, and practices of international shipping lines, NVOCCs, and other 
logistics service providers that impede efficient commerce;  
 
3. Imposing fines and charges in the exercise of its adjudicatory functions;   
4. Ensuring that the international shipping lines’ tariff rates and charges are published, 
and automated tariff systems are electronically available;  
 
5. Accrediting sea freight forwarders such as NVOCC, international freight forwarders 
and other similar maritime enterprises; and  
 
6. Exercising supervision over sea freight forwarders, domestic freight forwarders, and 
other similar maritime enterprises including the ship agents and their representatives, 
branches, offices or subsidiaries of international shipping lines to ensure the 
reasonableness of their rate-setting mechanism for local fees and charges, and 
compliance with existing laws, rules and regulations relating to standards of safety, 
quality and efficiency of operation.  
  
c) Department of Trade and Industry – The DTI shall:   
  
1. In coordination with the DOTr, the National Economic and Development Authority 
(NEDA), the DPWH, the MARINA, and the PPA, develop a long-term National 
Logistics Strategy that will establish an integrated transport and logistics sector that 
shall facilitate the efficient and timely movement of goods. The National Logistics 
Strategy shall include the identification of international gateway and secondary 
airports and seaports, development of new Roll On – Roll Off (RORO) ports and 
facilities, 
rail 
development, 
warehousing 
improvement, 
and 
connectivity 
enhancement; 
 
2. Ensure efficiency and competitiveness of the logistics services sector;  
 
3. Coordinate with other agencies to ensure the efficient movement of goods and empty 
containers and lower logistics cost;  
 
4. Encourage investment in the logistics services sector particularly in trucking service, 
freight forwarders, container yards and depot, dry and cold warehouses, and last mile 
logistics; and  
 


5. Monitor matters relating to transparency of local charges to implement to the full 
extent existing consumer trade laws to curb unconscionable business practices, 
excessive and unnecessary fees, charges and surcharges imposed as local charges 
by international shipping lines, their agents or forwarders.  
  
d) Philippine Ports Authority and other port authorities – The PPA and other port authorities 
shall:  
  
1. In case of urgent need, ensure as far as practicable that international shipping lines 
are given ample berthing space to facilitate the safe loading and unloading of empty 
containers in coordination with the port or terminal operator;  
 
2. Hasten the provision of the necessary infrastructure facilities by expanding the 
capacity of government-owned ports with existing contracts for handling of foreign 
vessels and foreign cargoes and facilitate the building of additional ports by the 
private sector;  
 
3. Oversee the strict enforcement of the regulations on overstaying foreign containers, 
whether laden or empty. For this purpose, the PPA and other port authorities shall 
review the effectiveness of current storage charges imposed on overstaying 
containers to improve port efficiency and prevent congestion;  
 
4. Determine the existence of port congestion. Towards this end, the PPA shall, within 
ninety (90) days from the effectivity of this Act, formulate and issue a Port Congestion 
Contingency Plan, in consultation with the Board. The Port Congestion Contingency 
Plan shall be implemented by the relevant agencies upon the declaration    of an 
imminent port congestion;  
 
5. Promulgate rules and regulations to maximize the use and further development of the 
Ports of Batangas, Subic and other ports and terminals deemed appropriate as 
alternates to the Port of Manila (POM) and the Manila International Container Port 
(MICP). Further, the PPA and Subic Bay Metropolitan Authority (SBMA) shall 
facilitate the expansion of the Ports of Batangas and Subic to accommodate 
shipments originally bound for POM and MICP and the development of other inland 
container depots (ICDs);  
 
6. Require all international port operators to maintain an online portal accessible to the 
DTI, BOC, DOTr, MARINA, PPA, and other port authorities that will provide 
information regarding daily summary of cargo throughput (volume and value), port 
dwell time of ships, dwell time of cargoes (containerized and non-containerized), 
average vessel waiting time at anchorage, and container yard utilization to facilitate 
the monitoring of port utilization; and  
 
7. Implement the Port Development Master Plan to support economic growth.  
  
e) Bureau of Customs – The BOC shall:  
  
1. Expedite the accreditation and activation of ICDs;  
 
2. Establish and manage a centralized database to facilitate a real-time inventory and 
monitor the movement of containers;   
 


3. Promulgate rules and regulations for the container yard utilization of ICDs;  
 
4. Together with MARINA, establish a one-stop shop or satellite office inside the 
customs premises, housing all representatives of international shipping lines, their 
forwarders and agents, for easier coordination in the implementation of this Act;  
 
5. In coordination with the PPA, Cebu Ports Authority, SBMA, PHIVIDEC Industrial 
Authority, Cagayan Economic Zone Authority, Regional Ports Management Authority, 
Bases Conversion Development Authority, Authority of the Freeport Bataan and other 
port authorities, promulgate, review and revise the guidelines, regulations and 
standards on such matters as:  
  
i. Ensuring the availability of inland container depot space for their empty 
containers;  
ii. Coordination with operators of designated container yards and inland 
container depots with sufficient capacity to accommodate the volume of 
containers per shipment;  
iii. Disposition of seized and abandoned cargoes to facilitate the decongestion 
of port terminals; and 
iv. Ensuring the swift processing of laden containers and loading of empty 
containers from the port to avoid congestion.  
  
f) Philippine Competition Commission – The PCC shall:   
  
1. Motu proprio or upon a verified complaint of any interested party, investigate cases 
involving violations of competition laws and regulations in relation to maritime trade; 
 
2. Review and take necessary actions on findings of anti-competitive behavior that are 
endorsed to the Commission by the MARINA; and  
 
3. Coordinate with MARINA and DTI in the implementation of competition policies in the 
maritime sector.  
  
SEC. 11. Additional Members of the MARINA Board. – To effectively implement the objectives 
of this Act, the following shall be made members of the Board in addition to its existing 
membership:  
 
a) Secretary of Foreign Affairs;  
b) Secretary of Agriculture;  
c) Secretary of Public Works and Highways;  
d) Secretary of NEDA;  
e) Commissioner of Customs;  
f) Chairperson of the PCC;  
g) Chairperson of the Land Transportation Franchising and Regulatory Board; and  
h) One representative from each of the following private sector groups who shall be appointed 
as voting members:  
1. Philippine Liner Shipping Association (PLSA) 
2. Association of International Shipping Lines (AISL) 
3. Philippine Chamber of Commerce and Industry (PCCI) 
4. Supply Chain Management Association of the Philippines 
5. Port Users Confederation 


 
The private sector representatives for each of the private sector groups shall be 
nominated by their respective associations appointed by the President of the Philippines from 
the nominees submitted by the aforementioned entities or associations for a term of three (3) 
years, and may be reappointed only once.   
Upon the expiration of their terms, the private sector members of the Board shall serve 
in a hold-over capacity until their successors shall have been qualified and appointed. Any 
vacancy in the Board pertaining to the representatives of the private sector shall be replaced 
by a person belonging to the same group represented by the member who left the position 
vacant.  The successor, who shall act in a permanent capacity, shall only serve for the 
unexpired portion of the term vacated.  
  
SEC. 12. Additional Powers and Functions of the Board. – In addition to its existing powers 
and functions, the Board shall:  
  
a) Advise the MARINA on policies relating to the competitiveness, reliability, integrity, and 
fairness of the maritime freight delivery system;  
 
b) Provide MARINA with information, insight, and expertise pertaining to conditions in the 
maritime freight delivery system;  
 
c) Make recommendations to enhance the existing policies relating to maritime freight delivery 
system or to adopt additional policies;  
 
d) Provide MARINA with the guidelines necessary in the determination of the basis and 
reasonableness of local charges being imposed by international shipping lines; and  
 
e) Encourage relevant government agencies and affected local government units to take 
appropriate actions on matters and issues affecting Philippine trade and transport logistics  
  
SEC. 13. National Logistics Efficiency Policy. – The Board shall formulate a National Logistics 
Efficiency Policy (NLEP) to ensure the efficiency of customs and border management, quality 
of trade and transport infrastructure, competence of logistics services, their ability to track and 
trace consignments, and the competitiveness of shipping prices. The NLEP shall serve as a 
guide in the formulation and issuance of the rules, regulations, and programs of the 
implementing agencies specified in this Act.  
The policy shall institutionalize the use of information technology to enhance connectivity 
among relevant government agencies to facilitate efficient business transaction consistent with 
the objectives of Republic Act No. 11032 or the Ease of Doing Business and Efficient 
Government Service Delivery Act.  
  
SEC. 14. Prohibited Acts. – It shall be unlawful for any international carrier or its agent, port or 
terminal operator, NVOCC, or logistics service provider to perform the following acts:  
 
a) Operate under an agreement that has been suspended by virtue an order of a proper 
authority, or a temporary restraining order or rendered ineffective by injunction issued by 
the court;  
 
b) Charge, demand, collect, or receive greater, less, or different compensation for the 
transportation of property or for any service in connection therewith than the rates and 
charges provided in the service contract or those published and filed with the MARINA;  
 


c) Engage in any anti-competitive practice prohibited under Republic Act No. 10667 or the
Philippine Competition Act.
SEC. 15. Penalties. – The violation of the provisions of this Act or its guidelines shall be 
sanctioned by the penalties as may be determined by the MARINA such as fines, cancellation 
of the accreditation, or the blacklisting of any forwarder, agent or international shipping line, or 
both.  
In fixing the amount of fines, the MARINA shall take into consideration the gravity of the 
violation, based on a criteria to be prescribed in the rules and regulations to be issued to 
implement this Act.  
The imposition of penalties and other sanctions under this Act shall not preclude any 
aggrieved party or government agency from filing a criminal, civil or administrative case for 
violation of existing laws, rules and regulations by reason of the same act or omission.  
SEC. 16. Education Campaign. – The MARINA and the DTI shall, in coordination with private 
stakeholders, develop a program to educate all Philippine shippers and consignees on how to 
negotiate using the INCOTERMS, the freight, and other shipping charges imposed by 
forwarders and agents of international shipping lines, the best practices to manage or control 
the supply chain and updates in the implementation of this Act.  
SEC. 17. Submission of Annual Report. – The Board shall, not later than the first quarter of 
the succeeding year, submit to the President of the Philippines and both Houses of Congress 
an annual report containing the summary of all transactions pertaining to international shipping 
operations as well as the issues and concerns of the industry and recommend, if necessary, 
measures that require legislative action.   
SEC. 18. Implementing Rules and Regulations. – The Board shall, within sixty (60) working 
days from the effectivity of this Act, issue such rules and regulations as may be necessary to 
implement the provisions of this Act.   
SEC. 19. Suppletory Application of Related Laws. – The applicable provisions of Presidential 
Decree No. 474, Executive Order Nos.  125 and 125-A, s.  1987, Republic Act No. 7394 or the 
Consumer Act of the Philippines, Republic Act No. 10863 or the Customs Modernization and 
Tariff Act, Republic Act No. 10667 or the Philippine Competition Act and all other related laws, 
rules and regulations, insofar as they are not inconsistent, shall supplement in the 
implementation of the provisions of this Act.  
SEC. 20.  Separability Clause. – If any provision of this Act is declared invalid or 
unconstitutional, such parts not affected by such declaration shall remain in full force and 
effect.  
SEC. 21.  Repealing Clause. – All laws, orders, rules and regulations and other issuances, or 
parts thereof, which are inconsistent with this Act are hereby repealed, amended or modified 
accordingly.  
SEC. 22. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of general circulation.  
Approved,