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PRESIDENTIAL DECREE NO. 474
PRESIDENTIAL DECREE NO. 474 -
PROVIDING FOR THE REORGANIZATION OF MARITIME FUNCTIONS IN THE
PHILIPPINES, CREATING THE MARITIME INDUSTRY AUTHORITY, AND FOR OTHER
PURPOSES
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WHEREAS,
the efficient sea transport of raw materials, products, commodities and
people is vital to the growth of the Philippine economy; chanroblesvirtualawlibrary
WHEREAS, the functions pertaining to the development and regulation of
shipping enterprises are fragmented among various government agencies,
resulting in inadequate and inefficient shipping facilities, dependence
on external shipping interests, maldistribution of commodities, and
piece-meal solutions;chanroblesvirtualawlibrary
WHEREAS, there is imperative need to modernize and expand the
Philippine merchant fleet, and to rationalize and improve their
operations in order to make them effective instruments in promoting
domestic production, interisland and overseas trade, price
stabilization, and employment generation;chanroblesvirtualawlibrary
WHEREAS, it is urgently necessary to provide a strong organizational
framework to effect the accelerated and integrated development and
effective regulation of shipping enterprises;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, in order to
effect the desired changes and reforms in the social, economic and
political structure of our society, do hereby decree and order that the
following be adopted and made part of the laws of the land:cralaw:red
Section 1. Title. — This Decree shall be known as the
Maritime Industry Decree of 1974.
Section 2. Declaration of Policies and Objectives. —
It is hereby declared the policy of the State to accelerate the
integrated development of the maritime industry of the Philippines to
attain the following objectives: (a) To increase production and
productivity in the various islands and regions of the archipelago
through the provision of effective sea linkage; (b) To provide for the
economical, safe, adequate and efficient shipment of raw materials,
products, commodities and people; (c) To enhance the competitive
position of Philippine flag vessels in the carriage of foreign trade;
(d) To strengthen the balance of payments position by minimizing the
outflow of foreign exchange and increasing dollar earnings; (e) To
generate new and more job opportunities. chanroblesvirtualawlibrary
For the attainment of these objectives, the Government through the
Maritime Industry Authority hereinafter created shall:cralaw:red
(a) Adopt and implement a practicable and coordinated
Maritime Industry Development Program which shall include, among
others, the early replacement of obsolescent and uneconomic vessels;
modernization and expansion of the Philippine merchant fleet,
enhancement of domestic capability for shipbuilding, repair and
maintenance; and the development of reservoir of trained manpower;chanroblesvirtualawlibrary
(b) Provide and help provide the necessary; (i)
financial assistance to the industry through public and private
financing institutions and instrumentalities; (ii) technological
assistance; and (iii) in general, a favorable climate for expansion of
domestic and foreign investments in shipping enterprises; and
(c) Provide for the effective supervision, regulation
and rationalization of the organizational management, ownership and
operations of all water transport utilities, and other maritime
enterprises.
Section 3. Definition of Terms. — The terms, as used,
in this Decree, shall have the following meaning, unless the context of
the particular usage of the term indicates otherwise;chanroblesvirtualawlibrary
a. "Maritime Industry", briefly referred to as
"industry" in the broadest concept of the term. — All enterprises
engaged in the business of designing, constructing, manufacturing,
acquiring, operating, supplying, repairing and/or maintaining vessels,
or component parts thereof; of managing and/or operating shipping
lines, stevedoring arrastre and customs brokerage services, shipyards,
drydocks, marine railways, marine repair shops, shipping and freight
forwarding agencies and similar enterprises.
b. "Vessels" or "Watercraft" — Any barge, lighter,
bulk carrier, passenger ship freighter, tanker, container ship, fishing
boats or other artificial contrivance utilizing any source of motive
power, designed, used or capable of being used as a means of water
transportation operating either as common contract carrier, including
fishing vessels covered under Presidential Decree No. 43, except (1)
those owned and/or operated by the Armed Forces of the Philippines and
by foreign governments for military purposes, and (ii) bancas,
sailboats and other waterborne contrivance of less than three gross
tons capacity and not motorized.
c. "Philippine national" — A citizen of the
Philippines; or a partnership or association wholly owned by and
composed of citizens of the Philippines; or a corporation organized
under the laws of the Philippines of which at least sixty per cent of
the capital stock outstanding and entitled to vote is owned and held by
Philippine citizens; or a trustee of funds for pensions or other
employee retirement or separation benefits, where the trustee is a
Philippine national and at least sixty per cent of the funds will
accrue to the benefit of the Philippine nationals: Provided, That where
a corporation and its non-Filipino stockholders own stock in an
enterprise, at least sixty percent of the members of the governing
board of both corporations must be Philippine nationals. chanroblesvirtualawlibrary
d. "Philippine flag vessel" — A vessel or watercraft
registered under Philippine laws.
e. "Foreign flag vessel" — A vessel or watercraft
registered under the laws of a country other than the Philippines.
f. "Philippine shipping companies" — Philippine
nationals registered and licensed under the laws of the Philippines to
engage in the business of overseas and/or domestic water transportation.
A. MARITIME INDUSTRY AUTHORITY
Section 4. Maritime Industry Authority, Creation and
Organization. — There is hereby created a Maritime Industry Authority,
hereinafter referred to as the "Authority", under the Office of the
President. It shall be composed of a governing board of directors to be
known as Maritime Industry Board and the Management.
The Authority shall have general jurisdiction and control over all
persons, corporations, firms or entities in the maritime industry of
the Philippines and shall supervise, regulate in accordance with this
Decree.
The principal office of the Authority shall be in the Greater Manila
Area Regional or branch offices may be established at such other place
or places within the Philippines as may be deemed necessary by the
Board.
Section 5. Maritime Industry Development Program. —
The Authority shall prepare and annually update a Ten-Year Maritime
Industry Development Program, hereinafter referred to as "Program"
which shall contain a rational and integrated development of the
maritime industry. The Authority shall submit the same for approval by
the President of the Philippines. chanroblesvirtualawlibrary
Upon approval of the Program by the President, all government
departments, bureaus, agencies and instrumentalities shall implement
the same within their respective jurisdictions. The Authority shall
ensure that the approved program is being effectively implemented by
the participating agencies. No government body or instrumentality shall
adopt any policy or take course of action contrary to or inconsistent
with the Program.
B. MARITIME INDUSTRY BOARD
Section 6. Powers and Functions of the Board. — The
Maritime Industry Board shall have the following powers, functions, and
duties, among others:cralaw:red
a. To provide comprehensive policy guidance for the
promotion and development of the maritime industry as provided for in
this Decree; chanroblesvirtualawlibrary
b. To promulgate and prescribe such promotional and
developmental rules and regulations, standards, guidelines and
procedures and recommend laws or measures as may be necessary for the
growth and effective regulation of shipping enterprises;chanroblesvirtualawlibrary
c. To formulate a comprehensive and practicable
Maritime Industry Development Program for a ten-year period and review
and update the same annually;chanroblesvirtualawlibrary
d. To prescribe specific policies in the
determination of just and reasonable passenger fares, freight rates and
other charges relative to the operation of inter-island vessels.
Accordingly, the Board of Transportation shall exercise its rate fixing
functions in accordance with such policies;chanroblesvirtualawlibrary
e. To recommend to the President that the State,
through such agency or agencies as the President may designate,
purchase, lease, manage, operate or requisition any vessel, ship or
shipping enterprise, for national security purposes, to meet emergency
situations or when the national interest so requires;chanroblesvirtualawlibrary
f. To approve contracts;chanroblesvirtualawlibrary
g. To approve the organizational structure, staffing
pattern, and budget of the Authority upon the recommendation of the
Administrator;chanroblesvirtualawlibrary
h. To appoint, discipline and remove, and determine
the composition of the Authority technical staff and other personnel:
Provided, That all regular professional and technical personnel in the
Authority shall be permanent and career in status, but exempt from
WAPCO and Civil Service rules and regulations: Provided, further, That
the personnel shall be entitled to the benefits normally accorded to
government employees, such as retirement, GSIS insurance, leave and
similar matters: Provided, finally, That the Board or the Administrator
may engage on contractual basis or other arrangements for the temporary
services, and fix the compensation of highly qualified professionals,
except technical advisers or consulting firms;chanroblesvirtualawlibrary
i. To adopt a common seal for the Authority which
shall be juridically noticed, determine the exact location of its
office and prescribe the rules and regulations to govern its
proceedings;chanroblesvirtualawlibrary
j. To recommend to the President, through the
National Economic and Development Authority, the grant of necessary
incentives for the development of shipping and other related maritime
enterprises; and
k. To perform such acts as are proper and necessary
to implement this Decree.
Section 7. Composition and Organization. — The Board
shall be composed of eight members as follows: The Secretary of Trade,
the Secretary of Public Works, Transportation and Communications, the
Secretary of National Defense, the Executive Secretary, the Chairman of
the Board of Investments, the Chairman of the Development Bank of the
Philippines, the Chairman of the Board of Transportation and the
Maritime Administrator. The Chairman of the Board shall be appointed by
the President of the Philippines from among its members.
The officials next in rank to the regular members shall serve as
permanent alternate members, except that, in the absence of the
Chairman, the Board shall elect a temporary presiding officer. The
alternate members shall attend meetings of the Board and committees
assigned to their principals and receive the corresponding per diems
whenever their principal is absent or the said position is vacant.
The Board shall meet regularly once a month and may hold special
meetings to consider urgent matters upon call of the Chairman or any
three members thereof. A majority shall constitute a quorum for the
transaction of business. chanroblesvirtualawlibrary
Each member shall receive a monthly commutable allowance of five
hundred pesos and per diem of one hundred for every meeting of the
Board or committee thereof actually attended: Provided, That the total
amount of per diems which each may receive shall not exceed five
hundred pesos a month.
C. MANAGEMENT
Section 8. Management Head. — The management of the
Authority shall be vested in the Maritime Administrator who shall be
directly assisted by the Deputy Administrator for planning and a Deputy
Administrator for Operations hereinafter referred to as "Deputy
Administrator."
Section 9. The Maritime Administrator and Deputy
Administrator. — The Maritime Administrator and Deputy Administrators
shall be appointed by the President for a term of six years: Provided,
That upon the expiration of their respective terms, they shall continue
to serve until their successor shall have been appointed and qualified:
Provided, further, That no vacancy shall be filled except for the
unexpired portion of the term: Provided, finally, That the President
may remove the Administrator and Deputy Administrators from office for
cause upon recommendation of the Board.
The Maritime Administrator and Deputy Administrators shall be citizens
of the Philippines, at least thirty-five years old on the date of their
appointment, of good moral character, or recognized executive ability
and competence in previous public or private employment, with adequate
training and experience in economics, technology, finance, law,
management, public utility, or in other phases or aspects of the
maritime industry, receive an annual salary of fifty thousand pesos and
a monthly commutable allowance of two thousand pesos. Each Deputy
Administrator shall receive an annual salary of forty thousand pesos
and a monthly allowance of one thousand five hundred pesos.
The Administrator shall be directly responsible to the Board, and shall
have powers, functions and duties as provided in this Decree. The
Deputy Administrator shall be directly responsible to the
Administrator, and their respective powers, functions and duties shall
be determined by the Board, upon recommendation of the Administrator.
Section 10. Authority to Administer Oath. — The
Chairman of the Board, the Administrator, the Deputy Administrators,
the Chief Legal Officer and heads of divisions of the Authority shall
have the power to administer oaths for the transaction of official
business.
Section 11. General Powers and Functions of the
Administrator. — Subject to the general supervision and control of the
Board, the Administrators shall have the following general powers,
functions and duties;chanroblesvirtualawlibrary
a. To implement, enforce and apply the policies,
programs, standards, guidelines, procedures, decisions and rules and
regulations issued, prescribed or adopted by the Board pursuant to this
Decree;chanroblesvirtualawlibrary
b. To undertake researches, studies, investigations
and other activities and projects, on his own initiative or upon
instructions of the Board, and to submit comprehensive reports and
appropriate recommendations to the Board for its information and action;chanroblesvirtualawlibrary
c. To undertake studies to determine present and
future requirements for port development including navigationalds, and
improvement of waterways and navigable waters in consultation with
appropriate agencies; chanroblesvirtualawlibrary
d. To pursue continuing research and developmental
programs on expansion and modernization of the merchant fleet and
supporting facilities taking into consideration the needs of the
domestic trade and the need of regional economic cooperation schemes;
and
e. To manage the affairs of the Authority subject to
the provisions of this Decree and applicable laws, orders, rules and
regulations of other appropriate government entities.
Section 12. Specific Powers and Functions of the
Administrator. — In addition to his general powers and functions, the
Administrator shall;chanroblesvirtualawlibrary
a. Issue Certificate of Philippine Registry for all
vessels being used in Philippine waters, including fishing vessels
covered by Presidential Decree No. 43 except transient civilian vessels
of foreign registry, vessels owned and/or operated by the Armed Forces
of the Philippines or by foreign governments for military purposes, and
bancas, sailboats and other watercraft which are not motorized, of less
than three gross tons; chanroblesvirtualawlibrary
b. Provide a system of assisting various officers,
professionals, technicians, skilled workers and seamen to be gainfully
employed in shipping enterprises, priority being given to domestic
needs;chanroblesvirtualawlibrary
c. In collaboration and coordination with the
Department of Labor, to look into, and promote improvements in the
working conditions and terms of employment of the officers and crew of
vessels of Philippine registry, and of such officers and crew members
who are Philippine citizens and employed by foreign flag vessels, as
well as of personnel of other shipping enterprises, and to assist in
the settlement of disputes between the shipowners and ship operators
and such officers and crew members and between the owner or manager of
other shipping enterprises and their personnel;chanroblesvirtualawlibrary
d. To require any public water transport utility or
Philippine flag vessels to provide shipping services to any coastal
areas in the country where such services are necessary for the
development of the area, to meet emergency sealift requirements, or
when public interest so requires;chanroblesvirtualawlibrary
e. Investigate by itself or with the assistance of
other appropriate government agencies or officials, or experts from the
private sector, any matter within its jurisdiction, except marine
casualties or accidents which shall be undertaken by the Philippine
Coast Guard;chanroblesvirtualawlibrary
f. Impose, fix, collect and receive in accordance
with the schedules approved by the Board, from any shipping enterprise
or other persons concerned, such fees and other charges for the payment
of its services; chanroblesvirtualawlibrary
g. Inspect, at least annually, the facilities of port
and cargo operators and recommend measures for adherence to prescribed
standards of safety, quality and operations;chanroblesvirtualawlibrary
h. Approve the sale, lease or transfer of management
of vessels owned by Philippine Nationals to foreign owned or controlled
enterprises;chanroblesvirtualawlibrary
i. Prescribe and enforce rules and regulations for
the prevention of marine pollution in bays, harbors and other navigable
waters of the Philippines, in coordination with the government
authorities concerned;chanroblesvirtualawlibrary
j. Establish and maintain, in coordination with the
appropriate government offices and agencies, a system of regularly and
promptly producing, collating, analyzing and disseminating traffic
flows, port operations, marine insurance services and other information
on maritime matters;chanroblesvirtualawlibrary
k. Recommend such measures as may be necessary for
the regulation of the importation into and exportation from the
Philippines of vessels, their equipment and spare parts;chanroblesvirtualawlibrary
l. Implement the rules and regulations issued by the
Board of Transportation;chanroblesvirtualawlibrary
m. Compile and codify all maritime laws, orders,
rules and regulations, decisions in leasing cases of courts and the
Authority's procedures and other requirements relative to shipping and
other shipping enterprises, make them available to the public, and,
whenever practicable to publish such materials;chanroblesvirtualawlibrary
n. Delegate his powers in writing to either of the
Deputy Administrators or any other ranking officials of the Authority;
Provided, That he informs the Board of such delegation promptly; and
o. Perform such other duties as the Board may assign,
and such acts as may be necessary and proper to implement this Decree.
Section 13. Maritime Industry Manpower Needs. — The
Authority shall establish and support a system of maintaining and
developing a reservoir of trained manpower to meet the current and
future needs of the industry. For the attainment of this objective, it
shall undertake the following:cralaw:red
a. Evaluate, in collaboration with the Department of
Education and Culture, the capability of maritime educational and
training institutions and programs in the Philippines, including the
Philippine Merchant Marine Academy, herein placed under the
administrative supervision of the authority, to supply shipping and
shipyard manpower needs. chanroblesvirtualawlibrary
b. Inspect and evaluate periodically the standards,
facilities and performance of the maritime educational and training
programs of government and private schools and enterprises and
recommend to the Department of Education and Culture and other
appropriate government agencies such changes in the curriculum as may
be necessary.
c. Conduct or arrange for the holding of
pre-employment, on-the-job and other training programs to provide and
upgrade shipping skills and techniques, with the cooperation and
support of private enterprises and government agencies.
d. Provide incentives for education and training in
shipping and shipbuilding fields, specially those which are not
attractive to students such as naval architecture, including
scholarships and fellowships, in the Philippines or abroad, with
liberal grants for the entire duration of the course, to be sponsored
directly or arranged by the Administration.
Section 14. Penalties. — Any person who gives false
or misleading data or information or wilfully or through gross
negligence, conceals or falsifies a material fact, in any
investigation, inquiry or hearing, or other proceedings held pursuant
to this Decree, shall be punished with imprisonment or not less than
two nor more than six months and with a fine of not less than five
hundred nor more than one thousand pesos: Provided, however, That if
the false or misleading data or information shall have been given under
oath, the maximum penalty for giving false testimony or perjury shall
be imposed.
D. MISCELLANEOUS PROVISIONS
Section 15. Auditor. — The Commission on Audit shall
be the ex-officio Auditor of the Authority and it shall appoint its
representative therein, who shall audit all accounts thereof. chanroblesvirtualawlibrary
Section 16. Reorganizational Changes. —chanroblesvirtualawlibrary
a. Department of Trade. — The Shipping and Freight
Study Unit of the Department of Trade is hereby transferred to the
Authority together with its applicable appropriations, records,
equipment, property and such personnel as may be necessary.
b. Bureau of Transportation. — The powers and
functions pertaining to the development and supervision of maritime
shipping of the Bureau of Transportation for Water are hereby
transferred to the Authority. Accordingly the Water Transportation
Division of the Bureau is hereby abolished.
c. National Development Company. — The powers and
functions of the National Development Company relative to ship
acquisition under Republic Act No. 1407, as amended (Philippine
Overseas Act of 1955), are hereby transferred to the Authority together
with its applicable records, equipment and property.
In addition to the powers and functions herein transferred, balances of
all appropriations, funds, accounts and notes receivable derived from
shipping companies, equipment, records and supplies are likewise
transferred to the Authority.
Section 17. Retention of the Functions and Powers of
the Philippine Coast Guard. — Nothing in this Decree shall be
constructed to affect or delimit the present functions and powers of
the Philippine Coast Guard relative to maritime affairs. All such
functions and powers of the Philippine Coast Guard are retained by it.
Furthermore in the performance of its functions, especially in the
classification and inspection of vessels, the Philippine Coast Guard
will be assisted by the Authority; Provided, That within two years from
the issuance of this Decree, the President may transfer to the
Authority such regulatory functions of the Philippine Coast Guard
pertaining to maritime affairs as may be necessary for the achievement
of thems and purposes of the Authority. The Authority shall coordinate
with the Philippine Coast Guard in the exercise of supervision and
regulation of the operation of water transport utilities. chanroblesvirtualawlibrary
Section 18. Coordination with Other Agencies. — The
Authority shall coordinate with the Department of Labor, the Department
of Education and Culture and the National Manpower and Youth Council in
the exercise of its pertinent functions that have relation to the
functions of the abovementioned agencies, particularly as these pertain
to the development of trained and qualified seamen for Philippine
vessels.
In order to strengthen its coordinative functions, the Authority shall
hire and train appropriate technical personnel which may be assigned to
other government agencies involved in the implementation of laws, rules
and regulations relative to maritime affairs.
Section 19. Transitory Provision. — Officials and
employees of all existing offices or agencies which are abolished or
reorganized under this Decree may be absorbed into the Authority on the
basis of merit and fitness: Provided, That employees who shall be laid
off by reason of this Decree shall be given gratuity equivalent to one
month's salary for every year of service but in no case more than
twenty-four months salary, in addition to all benefits to which they
are entitled under existing laws and regulations.
To carry out the provisions of this Section there is hereby
appropriated the sum of Five-hundred thousand pesos out of the
unappropriated funds in the National Treasury.
Section 20. Appropriations. — To carry out the
provisions of this Decree, there is hereby appropriated the sum of two
million pesos out of the funds in the National Treasury not otherwise
appropriated. Thereafter, the succeeding appropriations of the
Authority shall be included in the Annual Appropriations Act.
In addition to the above, the Authority is hereby authorized to retain
fifty per cent of its collections from fees, charges and fines to
defray any deficiency in annual appropriations and to finance its other
projects. chanroblesvirtualawlibrary
Section 21. Repealing and Separability Clauses. — All
laws, decrees, orders, rules and regulations, policies, programs or
parts thereof, which are inconsistent with any of the provisions of
this Decree, are hereby repealed or modified accordingly.
If for any reason any section or provision of this Decree is declared
to be unconstitutional or invalid, the other sections or provisions
hereof, which are not affected thereby, shall continue in full force
and effect.
Section 22. Effectivity. — This Decree shall take
effect upon its promulgation: Provided, That these portions hereof
which may require a transition period to assure the orderly transfer of
powers and functions shall take effect as stated in the implementing
details: Provided, further, That such implementing details shall be
prepared by the Board, in consultation with the government agency heads
concerned, and submitted to the President for approval within four
months after issuance of this Decree. chanroblesvirtualawlibrary
Done in the City of Manila,
this 1st day of June, in the year of Our Lord, nineteen hundred and
seventy-four.
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