SIXTEENTH CONGRI
OF THE PHILIPPIN:

S$ OF THE REPUBLIC )
)

Second Regular Session )

2
BILL NO, 222

HOUS

Introduced by ANGKLA Party-list Representative JESULITO A. MANALO.

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:

EXPLANATORY NOTE

\ perusal of the World ‘Trade Organization records yield that the dollar
yalue of the world’s merchandise exports is equivalent to US$18.3 ‘Trillion.
Presently, 90% of world trade is still reliant on the use of maritime transport.
Clearly, it cannot be denied that the maritime sector plays an enormous role in
facilitating commerce in all pagts of the world and of course, in connecting people.

Given that we are an archipelagic nation, transportation of goods beeween
our islands is all the more inevitable. ‘Truly, shipping is already an intrinsic mode
of trade and commerce in the country. Notably, aside from our domestic fleets, on
numerous occasions, other foreign vessels likewise engaged in commerce,
necessatily find it more expedient and even practical for them to trade, if they can
be allowed to pass through our internal waters,

Currently however, inter-island shipping is exclusively reserved for ships
bearing the Philippine flag. While this boosts the domestic shipping industry, the
unfortunate consequence is that the costs of shipping adversely affects trading,
particularly for the micro, small and medium enterprises (MSMEs). Further, the
present restriction somehow slows down movement of the goods and inflates the



costs of shipping, and eventually the prices of the merchandise shipped cartied by

these MSMEs.

‘This measure is thus intended to initiate reforms in the shipping industry,
particularly 10 address specifically the concerns of MSMFs relative to the inte
island trading system within the Philippines, ‘Lhis bill proposes to permit foreign
ships to call in multiple ports, subject to the cleat condition that their cargoes are
not to be traded or sold for business within the Philippines and are stringently for
import ot export. Hence, this would allow importers and exporters merely to ¢0-
load in foreign ships going in or out of the Philippine jurisdiction. ‘This measure
likewise provides the parameters in the implementation of its provisions, including,
the authority of the Bureau of Customs (BOC) in the monitoring and regulation of
the passage of foreign vessels carrying foreign cargoes within our islands and to
our ports, and the treatment accorded to them under this Act

It must be stressed that the present proposed bill is primarily geared
towards extending assistance to the MSMEs through less expensive modes and
routes of shipment. In doing so, we shall not, in any manner, abandon the
protection that our country accords t our domestic vessels, since they shall
continuously enjoy the exclusive right and privilege to ply and trade within our
archipelagic waters and islands.

“Lhus, the swift passage of the bill is earnestly sought.

\. Party-Jist Representative
“/ ANGKLA



SIXTEENTH CONGRESS OF THE REPUBLIC )
OF ‘THE PHILIPPTN'| )

Second Regular Session )

. 5222
HOUSE BILL NO__~

Introduced by ANGKLA Party-list Representative JESULITO A. MANALO.

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:

SECTION 1. Declaration of Policy. —It is the policy of the State to

a. Support trade and commerce through implementation of a more
practical and expeditious system of shipping within the nation’s
intemal waters, without causing any threat to the domestic flects.

b. Assist importers and exporters in enhancing their competitiveness in
the light of intensifying international trade; and

c. Lower the cost of shipping containerized export cargoes from
Philippine ports co international ports and containerized import

cargoes from international ports.

SECTION 2. Definition of Terms. — Vor the purposes of this bill, these
terms are defined as follows:
a. “Container Van” shall refer to a standardized reusable steel box used

for the safe, efficient and secure storage and movement of materials


b.

d.

e

h.

stem where the

and products within an intermodal freight teansport

cargo cartied in the container van can be moved fiom one mode of
transport to another witbout having to unload or reload the contents
of such container vanz

“Domestic port” shall refer to any Philippine seaport;

“Domestic cargo” shall refer to goods, articles, commodities or
merchandise which are intended to be shipped from one domestic
port to another domestic port, even if, in the carriage of such cargo,
there may be an intervening foreign port;

“Export cargo” shall refer to goods, articles, commodities or
merchandise carticd in container vans of foreign vessels and duly
declared by the Bureau of Customs at the port of origin as cargoes

for shipment to a port outside the jurisdiction of the Philippines;

“Foreign cargo” shall refer (0 import or export cargo carried ina
container van of a foreign vessel;

“Foreign container van” shall refer to container van whether empty oF
loaded with import or export cargo which belongs to a foreign vessel;

“n,

eign port” shall refer to any scaport outside the jurisdiction of the
Philippines;

“Horvign vessel” shall refer to a ship registered or documented in a flag
registry other than that of a Philippines;

“Import cargo” shall refer to goods, articles, commodities or

merchandise of foreign origin carried in a container van of a foreign

ves:

el which are intended to be cleared by the Bureau of Customs for
delivery to the port of final destination within the jurisdiction of the
Philippines; and

“Transshipment” refers to the transfer of cargo from one vessel or
conveyance to another vessel for further transit to complete the

voyage and carry the cargo to its final destination.


SECTION 3. Scope. —'Vhis Act shall apply

exclusively to forcign container

vans and to import and export articles or cargoes carried in such forcign container

van by a foreign vessel.

SECTION 4. Carriage of a foreign container van or foreign cargo by a

foreign vessel, ~'Uhis Act shall allow the following circumstances:

A foreign container van carrying foreign cargo arriving from a foreign
port on a foreign vessel, such foreign vessel, after being cleared at its
port of entry, shall be allowed to carry the foreign container van to its
domestic port of final destination;

A foreign container van carrying foreign cargo arriving from a foreign
port on a foreign vessel may be carried by another foreign vessel
calling at the same port of entry to the domestic port of final
destination of such foreign cargo:

‘A foreign container van carrying foreign cargo intended for export
may be carried on a forcign vessel from its domestic port of origin
through another Philippine port to its foreign port of final
destination;

‘A foreign container van carrying foreign cargo intended for export
may be transshipped in any foreign vessel from its domestic port of
origin through a domestic transshipment port and transferred at such
domestic transshipment port to another foreign vessel which shall
carry it to its foreign port of final destination;

An empty foreign container van going to or coming from any
domestic port or going to or coming from a foreign port; and

An empty foreign container van being transshipped between wo

Philippine domestic ports.


SECTION 5. Authority of the Commissioner of Customs. — ‘the

Commissioner of Customs, upon such reasonable conditions as he may impose,

may do the following act

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 uansshipment 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 destinations

d. Impose penalties to foreign ship operators violating any provisions of
this Act; and

e. Take measur

$ to addeess illegal activities, including smuggling,

Provided, that the Commi:

ioner of Customs may delegate the powers vested in

him under this Act to any ot such subordinate officials with the rank equivalent to

a division chief or higher subject to such limitations and restrictions as may be

imposed under the rules and regulations to be promulgated by the Secretary of

Finance, upon recommendation of the Commissioner

SECTION 6. Application of the Carriage of Goods by Sea Act. —

Cattiage conducted in accordance with this law shall be governed by

Commonwealth Act No. 65, otherwise known

s the Cartiage of Goods by Sea Act

with respect to the lability of the cartier for the loss

of, or damage to, goods

carried,


SECTION 7. Carriage by forcign vessels not a public service, foreign
vessels not common carriers. — Forcign vessels engaging in carriage conducted
in accordance with this law shall not be considered common cartiers as provided in
Republic Act No. 386, otherwise known as the Civil Code; neither shall such

foreign ves side

Js be considered as offering a public service and thus shall fall ou

the coverage of Republic Act No. 9295, otherwise known as the Domestic

Shipping Development Act.

Er

ITION 8. Prohibitions. — Voreign ship operators shall submit their

o

go manifest to the Philippine Ports Authority to ensure that no domestic
cargoes are carried by the forcign ship. 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. Penalties. The Bureau of Customs, upon due notice, hearing
and determination of the existence of any breach or violation of the provisions of

this Act or any rules and regulations issued pursuant to thereto, shall have the

power and authority to impose penalty on any foreign ship operator in an amount

to be determined in the implementing rules and regulations

SECTION 10. Implementing Rules and Regulations, — Within sixty
(60) days from the approval of this Act, the Department of Finance, the Bureau of
Customs and the Philippine Ports Authority, shall promulgate such rules and

regulations necessary for the effective implementation of this Act.

SECTION 11. 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.


SECTION 12. Repealing Clause. - All laws, dectees, orders, rules and
regulations, and other issuances, or parts thereof, inconsistent with the provisions

of this Act are hereby repealed or modified accordingly.

SECTION 13. Effectivity Clause. ~'This Act shall take fifteen (15) days

after its publication in the Offvial Gazete or in a newspaper of general circulation

Approved,