REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bilt No. "7655

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

Pilotage service is one of the important complementary services to vessels in port. The Charter of
the Philippine Ports Authority (PPA), Presidential Decree No. 85, specifically Section 6 (a)
iii), vests PPA with the power to control, regulate and supervise pilotage and the conduct of
pilots in any port district. PPA has promulgated several regulations on pilotage in order to
implement its mandate and/or to respond to the complaints of both foreign and coastwise
shipping lines/operators.

The complaints include unsatisfactory or delayed services rendered by some pilots, lack of
proper equipment and gear overcharging of pilotage fees and the collection of unauthorized fees.

At present, pilotage services are solely provided by the members of the Harbor Pilots’
Association in a pilotage district which is under the United Harbor Pilots’ Association of the
Philippines (UHPAP).

On 3 February 1986, President Marcos signed Executive Order No. 1088 without prior
consultation with the maritime sector and the PPA. The EO made pilotage services in all ports in
the country compulsory, and increased pilotage fees by as much as four thousand percent
(4,000%) for the benefit of UHPAP members, the umbrella organization.

Presently, there is a need to define clearly pilotage services, and to establish in an unequivocal
manner the basis for the imposition of not less than 10% of government share in the gross
receipts from harbor pilotage operations.

This bill seeks to provide a mechanism maritime liability of harbor pilots.

In view of the foregoing, early passage of this bill is earnestly requested.

.

IC. ALEJANO
Representative
Magdalo Para sa Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 7655.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
REGULATING HARBOR PILOTAGE SERVICES AND THE CONDUCT OF HARBOR
PILOTS IN ALL PORTS IN THE PHILIPPINES AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Title. - This Act shall be known as the "Pilotage Service Act of 2018".

SEC. 2. Policy and Objectives. - It is hereby declared the policy of the State to regulate,
control, and supervise pilotage services and the conduct of pilots in all ports of the country to
attain the following objectives:

a) Ensure the safe conduct in ports of vessels and seaborne commerce/passengers;
b) Protect port structure and facilities;

) Establish reasonable charges for pilotage services;

4) Foster fair competition among harbor pilots in the delivery of pilotage services;
) Ensure efficient pilotage services at all times; and

£) Professionalize harbor pilotage services.

SEC. 3. Definition of Terms. - For purposes of this Act, the terms used herein, unless the
context indicates otherwise, shall mean as follows:

a) Pilotage service is the act of conducting maneuvering a vessel to/from berth to

anchorage;
b) Harbor pilot is a licensed master mariner duly accredited by the Philippine Ports
Authority to conduct pilotage in a pilotage district;

c) Authority refers to the Philippine Ports Authority;

4) Accreditation is the authority granted by PPA to any harbor pilot to render pilotage
services in a particular pilotage district;

©) Permit to operate is the authority granted by the PPA to any pilots’ organization to
render pilotage service in a particular pilotage district; and


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£) Gross income from pilotage services is the total gross billing whether collected or not,
assessed against the ship owner/ agents for pilotage and related services.

SEC. 4. Establishment of Pilotage District. - The Philippine Ports Authority is hereby
authorized to establish, through longitude and latitude, the pilotage districts throughout the
country including the number of pilots for each pilotage district.

SEC. 5. Provision of Pilotage Services. - Pilotage services in all pilotage districts shall
be provided directly by the Authority either by contract or through accredited pilots

organizations.

SEC. 6. Compulsory or Optional Pilotage. - For entering a harbor and anchoring thereat,
or passing through rivers or straits within a pilotage district, as well as docking and undocking at
any pier/wharf, or shifting from one berth to another, every vessel engaged in foreign trade shall
be under compulsory pilotage, except in specific ports/areas/cases declared as optional per the
regulations promulgated by the Authority.

Pilotage for vessels engaged in domestic trade shall be optional, except in specific
ports/areas/cases declared as compulsory per regulations promulgated by the Authority.

SEC. 7. Accreditation of Harbor Pilots. - Harbor pilots shall be accredited by the
Authority, on the basis of merit and fitness, for a term of not less than one (1) year but not

exceeding five (5) years.

Accreditation may be renewed under such terms and conditions as the Authority may
adopt, but in no case shall the renewal exceed the compulsory retirement age as provided for in
Section 9 hereof.

‘The accreditation, transfer, suspension and cancellation of a harbor pilot's accreditation
shall be governed by the rules and regulations promulgated by the Authority.

Nothing contained herein shall be construed to mean an employer-employee relationship
between the Harbor Pilot and the Authority.

SEC. 8. Qualification of a Harbor Pilot. - No person shall be accredited as harbor pilot
unless he is a Filipino citizen and, on the day of accreditation, is not more than fifty-five (55)


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years old, of sound physical and mental condition, of good moral character, and a holder of a
license as harbor pilot for the pilotage district applied for.

SEC. 9. Compulsory Retirement of Pilots. - Upon the effectivity of this Act, harbour
pilots shall be considered retired at the age of sixty (60) years.

SEC. 10. Establishment of a Pilots' Organization. - Pilots in a pilotage district may form
themselves into a pilots’ organization which shall be registered with the Securities and Exchange
Commission and accredited with the Authority. The organization shall be headed by a Chief
Pilot to be elected from the member-pilots.

SEC. 11. Permit to Operate. - Every pilots’ organization shall secure from the Authority
a permit to operate (PTO) for such services under terms/conditions the Authority may prescribe.

SEC. 12. Cancellation of PTO. - The PTO may be cancelled by the Authority only for
cause and after due process.

SEC. 13. Record. - Harbor pilots/ pilots’ organizations shall keep a record of their
operations and financial transactions and such other records or reports as may be required by this
‘Act. All records shall be made open to member-pilots and concerned government agencies for
inspection and examination.

SEC. 14. Indemnity Insurance. - Every pilots’ organization shall collectively insure its
membership with the Government Service Insurance System (GSIS) at an amount to be
determined by the Authority to cover in whole or in part any liability arising from any accident
resulting in damage to vessel(s), port facilities and other properties, and/or death or injury to
persons caused by its members in the performance of pilotage service.

SEC. 15. Operating Capital, Equipment and Facilities. - To effectively and efficiently
render pilotage services, individual pilots and/or pilots’ organizations shall make available
operating capital, equipment or facilities as may be required by the Authority.

SEC. 16. Pilotage Services and Rates. - The Authority shall define pilotage services,
including tug assistance and other related services, and shall determine, establish and adjust the
rates therefore, in coordination with relevant government agencies and concemed private sectors,
taking into consideration factors such as, but not limited to, tonnage of vessels and distance
covered by the service.


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‘The rates thus determined shall take effect fifteen (15) days after publication in any
newspaper of general circulation.

SEC. 17. Government Share for Pilotage Services. - For the privilege granted to
pilots/pilots’ organizations to undertake pilotage services and for the use of port facilities, there
shall be collected a government share of not less than ten (10%) percent in the pilots’ gross
income from pilotage and related services.

SEC. 18. Extent of Liability. - A harbor pilov/pilotage organization providing pilotage
service to a vessel shall be responsible for the damage sustained by the vessel and other facilities,
and for the death or injury to persons resulting from his/its failure or negligence. He/she may
only be absolved from liability if the accident is caused by force majeure or natural calamities, ot
when his/her order is countermanded by the master of the vessel: Provided, however, That he/she
exercises extraordinary diligence in the performance of his/her duties to prevent or minimize
damage.

SEC. 19. Penalties. - Any person who violates the provisions of this Act and the
implementing rules and regulations shall be punished by imprisonment of not less than ten (10)
days but not more than six (6) months, as may be determined by the court.

If the offender is a duly-accredited harbor pilot, his accreditation shall, in addition to his
imprisonment, be suspended/cancelled or revoked.

‘The Authority shall have the power to suspend, cancel or revoke the accreditation of a
harbor pilot and to impose administrative fines in an amount not less than Twenty Thousand
Pesos (P20,000.00) but not more than Two Hundred Thousand Pesos (P200,000.00) for such
specific violation as shall be determined by the Authority.

SEC. 20. Issuance of New Accreditation to Incumbent Harbor Pilots. — Incumbent
pilots in all pilotage districts shall be issued new accreditations in accordance with the provisions
of this Act. In no case shall said new accreditations exceed the compulsory retirement age for
harbor pilots as provided for in Section 9 hereof.

SEC. 21. Repealing Clause. - Executive Order No. 1088 and all other laws, decrees,
orders, rules and regulations or parts thereof inconsistent with or contrary to the provisions of
this Act are hereby repealed or modified accordingly.


SEC. 22. Separability Clause. - \f any part or provision of this Act is held
unconstitutional or invalid, other parts or provisions which are not affected thereby shall
continue to be in full force and effect.

SEC. 23. Effectivity. - This Act shall take effect fifteen (15) days after its publication in
at least two (2) national newspapers of general circulation.

Approved,