Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

8043

House Bill No.

Introduced by Representative Sharon S. Garin

EXPLANATORY NOTE.

As the State recognizes the indispensable role of the private sector, it is also the
responsibility of the state to institute fair and transparent trade facilitation and enhance the
competitiveness of the government on services that will ultimately lower the price cost of products
and services down the stream.

It has been reported that the Philippines has one of the highest logistics costs in Asia.
According to Doctor Ruth Banomyong of the World Bank, average logistics cost of firms consists
of only 11.11% of the total sales in Thailand, 16.3% in Vietnam, and 21.40% in Indonesia.
Apparently, this record hampers the efficiency and competitiveness in doing business in the
Philippines resulting to higher costs of products and services in the local market.

The Philippine logistics services sector has lamented high shipping costs, excessive and
unnecessary fees, charges and surcharges imposed by shipping lines, management of empty
containers, inefficiency in port utilization, and regulatory concerns of the trucking industry as
hindering competitiveness of the sector.

The surcharges collected have the following effect:

(a) increase the cost of importing raw materials and intermediate goods;
(b) escalate the prices paid by the domestic consumer; and
(c) impair the government's collection of correct taxes.

The overstaying laden and seized/abandoned containers and lack of container yards for
empty containers have impeded the smooth flow of waterborne commerce passing through the
ports,

Thus, this representation finds it high time to create a body that regulates all the services
rendered by shipping lines. In this measure, the Shipping Lines Bureau and Regulatory Board is
being created to address all the concems and problems in logistics industry in connection with
trade facilitation and cargo movements inside and outside the Philippine jurisdiction.

In view of the foregoing, immediate passage of this bill is earnestly sought for.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 8043

Introduced by Representative Sharon S. Garin

AN ACT
CREATING THE SHIPPING LINES BUREAU AND REGULATORY BOARD.
UNDER THE DEPARTMENT OF TRANSPORTATION

Be it enacted by the senate and the House of Representatives of the
Philippines in congress assembled:

SECTION 1. Short Title. — This Act shall be known as the “Shipping Lines
Bureau and Regulatory Board Act.”

SEC. 2. Declaration of Policy. - It is the policy of the State to make the
economy viable and dynamic through transparent, harmonious and fast trade
facilitation. Specifically, the State shall promote efficient, transparent and cost-
effective international shipping and logistics and to minimize if not, eliminate
congestion or bottlenecks and facilitate the movement and storage of cargoes.
Towards this end, the government shall, at all time, perform efficient port utilization,
protect the local prices of goods and services through regulated charges and costing
by international shipping lines doing business within the Philippines.

SEC. 3. Creation of the Shipping Lines Bureau and Regulatory Board. —
There is hereby created in the Department of Transportation (DOT?), the Shipping
Lines Bureau and Regulatory Board.

SEC. 4. Composition of the Board - The Board shall be composed
of:

(1) The Secretary of Department of Transportation as a Chairperson;

(2) The Commissioner of the Bureau of Customs as Co-Chairperson;

(3) The Secretary of the Department of Trade and Industry as Co-Chairperson;

(4) Two (2) members with the same rank, salary and privileges of an Assistant
Secretary, all of whom shall be appointed by the President of the Philippines
upon a unanimous recommendation of the Secretary of Transportation, the
Commissioner of Bureau of Customs, and the Secretary of Trade and Industry.


One (1) member of the Board shall be a member of the Bar and shall have
engaged in the practice of law in the Philippines for at least five (5) years,
another a holder of a degree in customs administration, and/or a holder of a
degree in economics, finance or management both with the same number of
years of experience and practice.

SEC.5. Executive Director and Support Staff of the Board. — The
Board shall have an Executive Director who shall also be appointed by the
President of the Philippines upon a unanimous recommendation of the Secretary of
Transportation, Commissioner of Bureau of Customs, and Secretary of Trade and
Industry.

The Executive Director shall have the rank, salary and privileges of a Department
Service Chief and shall assist the Board in the performance of its powers and
functions.

The Board shall be supported by the Technical Evaluation Division, Legal Division,
Management Information and Technology Division, Administrative Division and
Finance Division.

SEC.6. Supervision and Control over the Board. — The Secretary of
Transportations, Commissioner of Bureau of Customs, and Secretary of Trade and
Industry, through their duly designated Undersecretary or Deputy Commissioner, as
the case maybe, shall exercise administrative supervision and control over the Board
of Shipping Lines Bureau.

SEC. 7. Powers and Functions of the Shipping Lines Bureau and Regulatory
Board. — The Board shall have the following powers and functions:

a. To prescribe and regulate routes of shipping lines services from the
country of origin up to country of destination, economically viable capacities
and zones or areas of operation of shipping lines doing business within the
Philippine territorial jurisdiction and within its exclusive economic zone
(EEZ);

b. To issue, amend, revise, suspend or cancel Certificates of Public
Convenience or permits authorizing the operations of shipping lines
services doing business within the Philippines;

c. To determine, prescribe and approve and periodically review and
adjust, reasonable fares, rates and other related charges, relative to the
operation of all shipping lines services;

d. To issue preliminary or permanent injunctions, whether prohibitory or
mandatory, in all cases in which it has jurisdiction, and in which
cases the pertinent provisions of the Rules of Court shall apply;

e. To punish for contempt of the Board, both direct and indirect, in
accordance with the pertinent provisions of, and the penalties prescribe by,
the Rules of Court;


f. To issue subpoena and subpoena duces tecum and to summon
witnesses to appear in any proceedings of the Board, to administer
oaths and affirmations;

g. To conduct investigations and hearings of complaints for violation
of this Act, Republic Act No. 10863, otherwise known as the Customs
Modernization and Tariff Act, the Public Service Act, Maritime Laws and
other relevant of the Board's rules and regulations, orders, decisions and/
or ruling and to impose fines and/ or penalties for such violations;

h. To promulgate rules and regulations governing proceedings before
the Board: Provided, that except with respect to paragraphs d,e,f, and g
hereof, the rules of procedure and evidence prevailing in the courts of law
should not be controlling and it is the spirit and intention of said rules that
the Board shall use every and all reasonable means to ascertain facts in its
case speedily and objectively and without regard to technicalities of law and
procedures, all in the interest of due process;

j. To fix, impose and collect, and periodically review and adjust,
reasonable fees and other related charges for shipping lines services
rendered;

k. To formulate, promulgate, administer, implement and enforce rules and
regulations on shipping lines services, standard of measurements and/ or
design, and rules and regulations requiring port operators, container
facilities and yards to equip, install and provide in their premises such
devices, equipment facilities and operating procedures and techniques as
may promote fast cargo movement, transparent and harmonious trade
facilitation, streamlined procedures and availability at all time of online
services within their areas of operations;

|. To coordinate and cooperate with other government agencies and entities
concerned with any aspect involving shipping lines services with the end in
view of effecting continuing improvement of services; and

m. To perform such other functions and duties as may be provided by
law, as may be provided by law, as may be necessary, or proper or
incidental to the purposes and objectives of this Executive Order.

SEC. 8. Decision of the Board; Appeals Therefrom and / or Review
Thereof. - The Board, in the exercise of its powers and functions, shall sit and render
its decision en banc. Every such decision, order, or resolution of the Board must bear
the concurrence and signature of at least two (2) members thereof.

The decision, order or resolution of the Board shall be appealable to the Office
of the President within thirty (30) days from receipt of the decision: Provided, That the
President may motu proprio review any decision or action or the Board before the
same becomes final.


SEC. 9. Appropriations. — Funds needed to carry out the provisions
of this Act shall be taken from the funds available in the Department of Transportation,
Bureau of Customs, and Department of Trade and Industry. Thereafter, the approved
budget of the Board shall be included in the General Appropriations Act.

SEC. 10. Implementing Rules and Regulations. — The Secretary of DOTr, the
Secretary of the Department of Finance (DOF), upon the recommendation of the BOC.
and the Bureau of Internal Revenue (BIR), and the Secretary of DTI shall jointly
promulgate the necessary rules and regulations within ninety (90) working days from
the affectivity of this Act.

SEC. 11. Separability Clause. - If any portion or 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.

SEC. 12. Repealing Clause. — All other laws, acts, presidential decrees,
executive orders, presidential proclamations, issuances, rules and regulations or parts
thereof which are contrary to or inconsistent with any of the provisions of this Act are
hereby repealed, amended, or modifies accordingly.

SEC. 13. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or on a newspaper of general circulation.

Approved.