EXECUTIVE ORDER NO. 213
EXECUTIVE ORDER NO. 213 -
DEREGULATING DOMESTIC SHIPPING RATES
WHEREAS, Executive Order No. 185
was issued on 28 June 1994, opening the domestic water transport
industry to new Operators and investors and minimizing government
intervention and control over the domestic shipping industry to attract
more investments under an environment of free-market competition;
WHEREAS, Executive Order No. 185 liberalizes only the entry of vessels
into liner routes but has not covered the deregulation of domestic
shipping rates;
WHEREAS, there is an imperative need to deregulate domestic shipping
rates by the government which prescribes such rates based on an
outdated commodity classification by then Public Service Commission
which is considered obsolete and unrealistic;
WHEREAS, the supply and demand in the domestic shipping industry would
determine the rates of shipping services provided/availed of, as now
widely practiced internationally;
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines by
virtue of the powers vested in me by law, do hereby order:
Section 1. Deregulation of Passage Rates. — Passage
rates are hereby deregulated as follows:
(1)
First and Second Class. — Passenger rates for First Class and Second
Class rates are hereby deregulated for all passenger-carrying domestic
vessels; Provided, That such accommodations in accordance with the
service standards prescribed by the Maritime Industry Authority
(MARINA); Provided, Further, That, at least fifty percentum (50%) of
the authorized passenger capacity of the vessel shall be allocated and
reserved for Third Class accommodation, whose rates shall be regulated
by the MARINA.
(2)
Tourism-Oriented Vessels. — For vessels catering to tourism as duly
certified by the Department of Tourism (DOT), or passenger vessels of
any type/size serving DOT-identified tourist priority links/areas, they
shall be exempted from the requirement of allocating 50% of their total
passenger capacity for Third Class accommodation, and accordingly,
their passage rates are hereby deregulated, unless the operators opt to
have their rates rationalized/prescribed by the MARINA.
(3) Vessels
Not Covered Above. — In cases where only First and Second Class
passenger accommodations are provided by a vessel under the
MARINA-prescribed service standards, or where Third Class passenger
accommodations provided by a vessel is less than 50% of the vessel’s
total passenger capacity, the Second Class passenger rates shall be
regulated in accordance with the prescribed rates as determined by the
MARINA.
Sec. 2. Deregulation of Cargo Shipping or Freight
Rates. —
(1)
The freight rates for all commodities now classified as Class “A” and
“B” and “C” are hereby deregulated, except for non-containerized basic
commodities the freight rates of which shall continue to be regulated,
with the MARINA prescribing the indicative/reference rates thereto;
Provided, that the Government hereby reserves its right to intervene in
cases of unreasonably high rates, especially with respect to basic
commodities.
(2) In cases,
however, where a route/link is still monopolized or cartelized as
determined by the MARINA, the freight rates to be charged therein shall
remain regulated until such time that a new operator is authorized to
operate in such route/link to provide cost-effective/competitive
shipping service, as defined by the MARINA.
Sec. 3. Implementing Guidelines. —
(1)
The MARINA, in coordination with the Philippine Shipper’s Bureau of the
Department of Trade and Industry, is hereby directed to undertake the
needed activities and issue the pertinent rules and regulations for the
effective implementation of this Executive Order. The
implementing guidelines shall include sanctions on ship owners who will
refuse cargo, especially basic commodities, without just and reasonable
cause.
(2) All
government departments, offices, agencies, or instrumentalities,
including government-owned and controlled corporations, are hereby
ordered to assist, coordinate, and cooperate with the MARINA in the
implementation of this Order.
Sec. 4. Repealing Clause. — This Order repeals or
amends all executive, departments and other agency issuances, or any
provision thereof inconsistent with this Order.
Sec. 5. Effectivity. — This Executive Order shall
take the effect fifteen (15) days after its publication once in a
newspaper of general circulation.
DONE in the City of Manila,
this 28th day of November, in the year of Our Lord, Nineteen Hundred
and Ninety-Four.
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Since 19.07.98.