there is a recognized need to integrate and coordinate port planning,
development, control and operations at the national level, and at the
same time promote the growth of regional port bodies responsive to the
needs of their individual localities;
WHEREAS, harbors and tributary areas have their own peculiar
potentialities to be considered in port planning and development;
WHEREAS, hitherto, the concept of port administration in this country
has been focused on the traditional functions of revenue collection,
harbor maintenance and cargo handling, to the exclusion of the port's
fuller utilization and development as a spur for regional growth;
WHEREAS, Presidential Decree No. 505 was promulgated on July 11, 1974
to carry out these stated objectives; and
WHEREAS, it was found necessary in the national interest to amend
Presidential Decree No. 505 so as to enable the Philippine Port
Authority to Exercise all the proper powers and functions of a port
authority and in order to better carry out the desired objectives:
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 desired changes and reforms in the social, economic and
political structure of our society, do hereby decree and order the
revision of Presidential Decree No. 505 by substitution with this
Decree which is hereby adopted and made part of the laws of the land;
Section 1. Title. — This Decree shall be known as the
Revised Charter of the Philippine Ports Authority created under
Presidential Decree No. 505 dated July 11, 1974.
Declaration of Policies
Sec. 2. Declaration of Policies and Objectives. —
It is hereby declared to be the policy of the State to implement an
integrated program for the planning, development, financing, and
operation of Ports or Port Districts for the entire country in
accordance with the following objectives:
a) To coordinate, streamline, improve, and optimize
the planning, development, financing, construction, maintenance and
operation of Ports, port facilities, port physical plants, all 11
equipment used in connection with the operation of a Port.
b) To ensure the smooth flow of waterborne commerce
passing through the country's Ports whether public or private, in the
conduct of international and domestic trade.
c) To promote regional development through the
dispersal of industries and commercial activities throughout the
d) To foster inter-island seaborne commerce and
e) To redirect and reorganize port administration
beyond its specific and traditional functions of harbor development and
cargo handling operations to the broader function of total port
district development, including encouraging the full and efficient
utilization of the Port's hinterland and tributary areas.
f) To ensure that all income and revenues accruing
out of dues, rates, and charges for the use of facilities and services
provided by the Authority are properly collected and accounted for by
the Authority, that all such income and revenues will be adequate to
defray the cost of providing the facilities and services (inclusive of
operating and maintenance cost, administration and overhead) of the
Port Districts, and to ensure that a reasonable return on the assets
employed shall be realized.
Sec. 3. Definitions. — For the purpose of this
Decree and of the by-laws, regulations, or rules promulgated
thereunder, the terms or words used herein shall, unless the context
indicates otherwise, mean or be understood to mean, as follows:
a) "Authority" means the Philippine Ports Authority
created by this Decree.
b) "Board" means the Board of Directors of the
Authority appointed by the President under Sec. 7 of this Decree.
c) "Functions" includes powers and duties.
d) "Port District" means the territorial jurisdiction
under the control, supervision or ownership of the Authority over an
area (land or sea), declared as such in accordance with Sec. 5 of
this Decree including but not limited to any Port within said
e) "Port" means a place where ships may anchor or tie
up for the purpose of shelter, repair, loading or discharge of cargo,
or for other such activities connected with water-borne commerce, and
including all the land and water areas and the structures, equipment
and facilities related to these functions.
f) "Navigable waters" means all navigable portions of
the seas, estuaries, and inland waterways.
g) "Anchorage" means a place with sufficient depth of
water where vessels anchor or may ride at anchor or may ride at anchor
within the harbor.
h) "Terminal Facility" includes the seaport and its
facilities of wharves, piers, slips, docks, dry docks, bulkheads,
basins, warehouses, cold storage, and loading or unloading equipment.
i) "Basin" means a naturally or artificially enclosed
or nearly enclosed body of water in free communication with the sea.
j) "Dock" includes locks, cuts, entrances, graving
docks, inclined planes, slipways, quays, and other works and things
appertaining to any dock.
k) "Drydock" means a dock from which the water can be
temporarily excluded, in order to effect repairs to hulls and keels of
ships or vessels.
l) "Pier" means any structure built into the sea but
not parallel to the coast line and includes any stage, stair, landing
place, landing stage, jetty, floating barge or pontoon, and any bridge
or other works connected therewith.
m) "Warehouse" means a building or shed used for the
storage of cargo.
n) "Transit Shed" means a building or shed which is
situated at or near a quay, wharf or pier, and is used for the
temporary or short-term storage of goods in transit, or to be shipped
or discharge from a vessel.
o) "Wharf" means a continuous structure built
parallel to along the margin of the sea or alongside riverbanks, canals
or waterways where vessels may lie alongside to receive or discharge
cargo, embark or disembark passengers, or lie at rest.
p) "Transportation Facility" includes rails and
railcars, highways, wheeled vehicles, bridges, tunnels, tramways,
subways, passenger or cargo vessels, ferry-boats, lighters, tugs,
barges, scows, ramps, and any kind of facility in use or for use of the
transportation, movement, or carriage of goods or passengers.
q) "Lighter" means a flat-bottomed boat or barge used
in loading or unloading cargo to or from vessels.
r) "Vessel" includes any ship or boat, or any
description of a vessel or boat.
s) "Goods" includes animals, carcasses, baggage, and
any movable property of any kind.
t) "Dues" includes harbor fees, tonnage and wharfage
dues, berthing charges, and port dues and any other dues or fees
imposed by virtue of existing law or this Decree.
u) "Rates" means any rates or charges including any
toll or rent under existing law or imposed by the Authority by virtue
of this Decree for facilities used or services rendered.
Establishment, Constitution, Powers and Duties
Sec. 4. Creation of Philippine Ports Authority. —
a) There is hereby established a body corporate to be
known as the Philippine Ports Authority (hereinafter called the
Authority), which shall be attached to the Department of Public Works
Transportation and Communications.
b) The principal office of the Authority shall be
located in Metropolitan Manila, but it may establish port management
units and other offices elsewhere in the Philippines as may become
necessary for the proper conduct of its business.
Sec. 5. Port District. — The Authority may, from
time to time, submit to the President, through the National Economic
and Development Authority, applications for the declaration of specific
areas as Port Districts. Such applications shall be accompanied by a
survey plan indicating the geographical location of the area or areas
to be declared as Port Districts with their respective boundaries
Sec. 6. Corporate Powers and Duties. —
a) The corporate duties of the Authority shall be:
(i) To formulate in coordination with the National
Economic and Development Authority a comprehensive and practicable Port
Development plan for the State and to program its implementation, renew
and update the same annually in coordination with other national
(ii) To supervise, control, regulate, construct,
maintain, operate, and provide such facilities or services as are
necessary in the ports vested in, or belonging to the Authority.
(iii) To prescribe rules and regulations, procedures,
and guidelines governing the establishment, construction, maintenance,
and operation of all other ports, including private ports in the
(iv) To license, control, regulate, supervise any
construction or structure within any Port District.
(v) To provide services (whether on its own, by
contract, or otherwise) within the Port Districts and the approaches
thereof, including but not limited to -
— berthing, towing, mooring, moving, slipping, or
docking any vessel;
— loading or discharging any vessel;
— sorting, weighing, measuring, storing, warehousing,
or otherwise handling goods.
(vi) To exercise control of or administer any
foreshore rights or leases which may be vested in the Authority from
time to time.
(vii) To coordinate with the Bureau of Lands or any
other government agency or corporation, in the development of any
(viii) To control, regulate, and supervise pilotage
and the conduct of pilots in any Port District.
(ix) To provide or assist in the provision of
training programs and training facilities for its staff or staff of
port operators and users for the efficient discharge of its functions,
duties, and responsibilities.
(x) To perform such acts or provide such services as
may be deemed proper or necessary to carry out and implement the
provisions of this Decree.
b) The corporate powers of the Authority shall be as
(i) To succeed in its corporate name.
(ii) To sue and be sued in such corporate name.
(iii) To adopt, alter, and use a corporate seal which
shall be judicially noticed.
(iv) To adopt, amend, or repeal its by-laws.
(v) To create or alter its own organization or any
Port Management Unit, and staff such an organization or Port Management
Unit with appropriate and qualified personnel in accordance with what
may be deemed proper or necessary to achieve the objectives of the
(vi) To make or enter of any kind or nature to enable
it to discharge its functions under this Decree.
(vii) To acquire, purchase, own, lease, mortgage,
sell, or otherwise dispose of any land, port facility, wharf, quay, or
property of any kind, whether movable or immovable.
(viii) To exercise the right of eminent domain, by
expropriating the land or areas surrounding the Port of harbor, which
in the opinion of the Authority, are vital or necessary for the total
development of the Port District.
(ix) To levy dues, rates, or charges for the use of
the premises, works, appliances, facilities, or for services provided
by or belonging to the Authority, or any other organization concerned
with port operations.
(x) To reclaim, excavate, enclose, or raise any part
of the lands vested in the Authority.
(xi) To dredge or provide dredging services, within a
Port District of elsewhere.
(xii) To acquire any undertaking affording or
intending to afford facilities for the loading and discharging or
warehousing of goods in the Port Districts.
(xiii) To supply water or bunkers for ships.
(xiv) To obtain insurance for or require the
insurance of any property, movable or immovable, belonging to the
Authority and/or goods in the custody of the Authority.
(xv) To do all such other things and to transfer all
such business directly or indirectly necessary, incidental or conducive
to the attainment of the purposes of the Authority.
(xvi) Generally, to exercise all the powers of a
corporation under the Corporation Law insofar as they are not
inconsistent with the provisions of this Decree.
Sec. 7. Board of Directors. —
a) The corporate powers of the Authority shall be
vested in a Board of Directors, which shall consist of the following
(i) The Secretary of Public Works, Transportation and
Communications, who shall act as Chairman.
(ii) The General Manager of the Authority, who shall
act as Vice-Chairman.
(iii) The Director-General of National Economic and
(iv) The Secretary of Finance.
(v) The Secretary of Natural Resources.
(vi) The Secretary of Trade.
The Directors listed under subsections (a) (i) to (vi) shall be
ex-officio members of the Board of Directors.
(vii) One (1) other person who shall be appointed by
the President of the Philippines, representing the private sector, who
by reason of his knowledge or experiences is, in the opinion of the
President, fit and proper person to be Director of the Board. Provided,
That, in the absence of the Director appointed in subsections (iii) to
(vi), the Director concerned shall designate the officer next in rank
to him in his department or office to act on his behalf as a
b) The Director from the private sector shall hold
office for a period of three years from the date of his appointment
upon the completion of such period.
c) The members of the Board or their respective
alternates shall receive a per diem as it may approve for each Board
meeting actually attended by them: Provided, That, such per diems shall
not exceed one thousand pesos during any one month for each member:
Provided further, That no other allowances or any form of compensation
shall be paid them, except actual expenses in travelling to or from
their residences to attend Board meetings.
Organization and Staff
Sec. 8. Management and Staff . —
a) The President shall, upon the recommendation of
the Board, appoint the General Manager and the Assistant General
b) All other officials and employees of the Authority
shall be selected and appointed on the basis of merit and fitness based
on a comprehensive and progressive merit system to be established by
the Authority immediately upon its organization and consistent with
Civil Service rules and regulations. The recruitment, transfer,
promotion, and dismissal of all personnel of the Authority, including
temporary workers, shall be governed by such merit system.
c) The General Manager shall, subject to the approval
of the Board, determine the staffing pattern and the number of
personnel of the Authority, define their duties and responsibilities,
and fix their salaries and emoluments. For professional and technical
positions, the General Manager shall recommend salaries and emoluments
that are comparable to those of similar positions in other
government-owned corporations, the provisions of existing rules and
regulations on wage and position classification notwithstanding.
d) The General Manager shall, subject to the approval
by the Board, appoint and remove personnel below the rank of Assistant
e) The General Manager of the Authority shall receive
a salary to be determined by the Board, and approved by the President.
f) The number of Assistant General Managers of the
Authority shall in no case exceed three (3) who shall each receive a
salary to be determined by the Board and approved by the President.
Sec. 9. General Powers and Duties of the General
Manager and Assistant General Managers
a) General Powers and Duties of the General Manager. —
The General Manager shall be responsible to the Board, and shall have
the following general powers, functions, and duties:
(i) To implement, enforce and apply the policies,
programs, guidelines, procedures, decisions, rules and regulations
promulgated, prescribed, issued or adopted by the Authority.
(ii) To manage the day to day affairs of the
Authority, and ensure the operational efficiency of the Ports under the
jurisdiction and ownership of the Authority.
(iii) To sign contracts, to approve expenditures and
payments within the budget provisions, and generally to do any all acts
or things for the proper operations of the Authority or any of the
Ports under the jurisdiction, control or ownership of the
(iv) To submit an annual budget to the Board for
Recurrent Income and Expenditure and the Estimated Capital Expenditure
for its option not later than two months before the commencement of the
ensuing fiscal year.
(v) To undertake research, studies, investigations,
and other activities and projects, and to submit comprehensive reports
and appropriate recommendations to the Board for its information and
(vi) To perform such other duties as the Board may
assign from time to time.
b) General Powers and Duties of the Assistant General
The Assistant General Managers shall be responsible to the General
Manager of the Authority, and shall have the following general powers,
functions and duties:
(i) To assist the General Manager in implementing,
enforcing, and applying the policies, programs, guidelines, procedures,
decisions, rules and regulations promulgated, prescribed, issued, or
adopted by the Authority.
(ii) To assist the General Manager in the performance
of his other functions and duties.
(iii) To perform such other duties as the General
Manager may assign from time to time.
Capital, Finance and Accounts
Section 10. Capital. —
a) The authorized capital of the Authority shall be
three billion pesos.
b) The initial paid in capital shall consist of:
(i) The value of assets (including port facilities,
quays, wharves, and equipment) and such other properties, movable and
immovable as may be contributed by the Government or transferred by the
Government or any of its agencies as valued at the date of such
contribution or transfer and after deducting or taking into account the
loans and other liabilities of the Authority at the time of the
takeover of the assets and other properties.
(ii) The initial cash appropriation of P2 million out
of the funds of the National Treasury and such further sums, including
working capital, as may be contributed by the Government.
Section 11. Creation of Reserves. — The balance of
any revenue or income of the Authority remaining at the end of each
year shall be applied to the creation of a general reserve or such
other reserves as the Authority may deem appropriate.
Section 12. Investment of Funds. — The Authority may,
from time to time, invest any of its funds not immediately required to
be expended in meeting its obligations or in the discharge of the
functions of the Authority in such government securities approved by
Section 13. Borrowing Powers. —
a) The Authority may after consultation with the
Central Bank and the Department of Finance, and with the approval of
the President of the Philippines, raise funds, either from local or
international sources, by way of loans, credits or indebtedness or
issue bonds, notes, debentures, securities, and other borrowing
instruments, including the power to create pledges, mortgages, and
other voluntary liens or encumbrances on any of its assets or
b) All loans contracted by the Authority under this
Section together with all interests and other sums payable in respect
thereof, shall constitute a charge upon all the revenues and assets of
the Authority and shall rank pari passu with one another, but shall
have priority over any other claim or charge on the revenue and assets
of the Authority; Provided, That this provision shall not be construed
as a prohibition or restriction on the power of the Authority to create
pledges, mortgages and other voluntary liens or encumbrances on any
property of the Authority.
c) Except as expressly authorized by the President of
the Philippines, the total outstanding indebtedness of the Authority in
the principal amount in local and foreign currency shall not at any
time exceed the networth of the Authority at the relevant time.
d) The President of the Philippines, by himself or
through his duly authorized representative, is further hereby
authorized to guarantee in the name and on behalf of the Republic of
the Philippines, the payments of the loans or other indebtedness of the
Authority up to the amount herein authorized.
e) All interests paid or payable by the Authority on
its loans or other forms of indebtedness shall be exempt from taxes of
Section 14. Annual Budget. —
a) The Board shall every year cause to be prepared
and shall adopt annual estimates of income and expenditures and
estimates of capital expenditure of the Authority for the ensuing year.
b) Supplementary estimates may be adopted at any of
the meetings of the Board.
Section 15. Annual Accounts. —
a) The Board shall cause proper accounts and other
records of the Authority in relation thereto to be kept. An annual
statement of account shall be rendered in respect to each year. The
Authority shall maintain such accounts and other records under a
commercial system of accounting.
b) The accounts of the Authority shall be kept and
made up to 31 December in each year.
c) The annual statement of accounts of the Authority
shall present a true and fair value of the financial position of the
Authority and of the results of the operations of the Authority for the
year to which it relates.
Section 16. Auditor. —
a) In consonance with existing laws and regulations,
the Commission on Audit shall be appointed to audit the accounts of the
Authority. In the fulfillment of international contractual commitments
of the Authority, however, the Board may engage the services of any
person or firm duly authorized by law for the audit of accounts, to
audit the accounts of the Authority.
b) The Auditor shall be paid out of the revenue of
the Authority such remuneration, compensation or expenses as the Board
Section 17. Auditor's Reports. — The Auditor shall as
soon as practicable, but not later than three months after the accounts
have been submitted for audit, send an annual report to the Board. The
Auditor may also submit such periodical or special reports to the Board
as may to him appear necessary.
Section 18. Annual Report. — The Board shall submit
to the President of the Philippines together with the Auditor's Report
on the relevant accounts, an annual report generally dealing with the
activities and operations of the Authority during the preceding year
and containing such information relating to the proceedings and
policies of the Authority.
Dues and Rates
Section 19. Dues. —
The President of the Philippines may upon recommendation of the
Authority increase or decrease such dues, collectible by the Authority
to protect the interest of the Government and to provide a satisfactory
return on the Authority's assets, and may adjust the schedule of such
dues so as to reflect the costs of providing the services; Provided,
however, that the rates of dues on all the ports of the Philippines
upon the coming into operation of this Decree shall be those now
provided under Parts 1, 2, 3, and 6 of the Title VII of Book II of the
Tariff and Customs Code, until such time that the President upon
recommendation of the Board may order that the adjusted schedule of
dues are in effect.
Sec. 20. Rates and Charges. —
a) The Authority may impose, fix, prescribe, increase
or decrease such rates, charges or fees for the use of port premises,
works, appliances or equipment belonging to the Authority and port
facilities provided, and for services rendered by the Authority or by
any organization within a Port District.
Provided, that upon the coming into operation of this Decree, the rates
of storage and arrastre charges in all ports of the Philippines shall
be those now provided under Parts 4 and 5 of Title VII Book II of the
Tariff and Customs Code until such time when the President of the
Philippines upon recommendation of the Board may order that the revised
rates, charges or fees are in effect.
b) The Authority shall regulate the rates or charges
for port services or port related services so that taking one year with
another, such rates or charges furnish adequate working capital and
produce an adequate return on the assets of the Authority. In
regulating the rates or charges for individual ports the Authority
shall take into account the development needs of the port's hinterland.
c) All dues, fees, charges and other sums imposed and
collected by the Authority shall accrue to the Authority and shall be
disposed of in accordance with the provisions of this Decree.
Sec. 21. Remission of Dues, Rates, or Charges. —
No amount due in respect of dues, rates, or charges prescribed by the
Authority under this Decree shall be waived or reduced except:
a) Where the State has arrangements with a foreign
government in respect of vessels are not normally engaged in the
conveyance of cargo or passengers; and
b) For vessels seeking shelter from inclement weather
or entering the port for medical help and other maritime necessity.
Sec. 22. Remedies for Nonpayment. — If the master,
owner or agent of any vessel refuses or neglects to pay on demand any
dues, rates, or charges made under this Decree or any part thereof, the
Authority may, in addition to any other remedy provided by law,
distrain or arrest on its own authority such vessel and tackle, apparel
or furniture belonging to the vessel, and detain the same until the
amount or amounts due have been paid.
Sec. 23. When Rates Payable and Lien. —
a) Rates or charges in respect of goods to be landed
become payable immediately on landing such goods.
b) Rates or charges in respect of goods to be shipped
are payable before the goods are loaded.
c) Rates or charges in respect of goods to be removed
from the premises of the Authority are payable on demand.
d) For the amount of rates of charges leviable under
this Decree in respect of goods, the Authority shall have lien on such
goods and is entitled to detain them until the amount of rates or
charges is fully paid. Such lien shall have priority over all other
liens and claims, except claims for duties and taxes due to the
Government and expenses of the sale.
Sec. 24. Recovery of Lien. — Without prejudice to
the authority and rights of the Bureau of Customs in the disposition of
property in Customs custody as provided for in the Tariff and Customs
Code, as amended, if any goods which have been placed in or on the
premises of the Authority are not removed therefrom within the
prescribed period after the legal permit for their withdrawal and/or
release from Customs custody, or the authority to load, in case of
exports, has been issued by the Bureau of Customs, the authority, with
the prior concurrence of the Bureau of Customs, may dispose of any such
goods in the manner as it deems fit in order to recover the lien;
Provided, That the proceeds of the sale shall be applied in the
a) Firstly, in the payment of duties and taxes due to
b) Secondly, in payment of expenses of the sale;
c) Thirdly, in payment of the rates, charges, and
fees due to the Authority in respect of the goods;
d) Fourthly, in payment of freight, lighterage or
general average, on voyage of importation and in case of exports, in
payment of domestic freight, lighterage and cartage, of which due
notice shall have been given to the Authority;
e) And finally in rendering on demand the surplus, if
any, to the person legally entitled thereto: Provided, That in case no
such demand is made within a period of one year from the date of sale
of the goods, the surplus, if any, shall become part of the general
funds of the Authority, whereupon all rights to the same by such person
shall be extinguished.
Sec. 25. Exemption from Realty Taxes. — The
Authority shall be exempt from the payment of real property taxes
imposed by the Republic of the Philippines, its agencies,
instrumentalities or political subdivisions; Provided, That no tax
exemptions shall be extended to any subsidiaries of the Authority that
may be organized; Provided, finally, That investments in fixed assets
shall be deductible for income tax purposes.
Sec. 26. Power to Make Port Regulations. —
a) The Authority may, after consultation with
relevant Government agencies, make rules or regulations for the
planning, development, construction, maintenance, control, supervision
and management of any Port or Port District and the services to the
provided therein, and for the maintenance of good order therein, and
for the maintenance of good order therein, and generally for carrying
out the purposes of this Decree.
b) The Authority may provide separate regulations for
each category of ports or port districts.
Sec. 27. Dangerous Cargo. —
a) The Authority may make regulations for the
conveyance, loading, discharging and storage of dangerous goods within
any port, port district, and the approaches to the port.
b) The Authority may provide separate regulations for
each category of ports or port districts.
Sec. 28. Powers of Harbor Master. — Further to the
provisions of any regulation under Sec. 26 and 27 of this Decree,
the Authority thru the Harbor Master of a Port or Port District
a) Direct where any vessel shall be berthed, moored,
or anchored, and the method of anchoring within the port and the
approaches to the port;
b) Direct the removal of any vessel from any berth or
anchorage to another berth or anchorage and the time within such
removal is to be effected; and
c) Regulate the mooring of vessels within the port
and the approaches to the port.
Sec. 29. Existing Regulations. — Anything to the
contrary notwithstanding and until new rules or regulations are
promulgated by the Authority under Sections 26 and 27 of this Decree,
the rules, regulations or orders made under the Customs Code or any
other law of the Philippines relating to the matters covered by
Sections 26, 27 and 28 shall continue to apply as if they were made
under said sections and any reference to a customs official or any
other officials under any law of the Philippines shall be deemed a
reference to an equivalent official of the Authority.
Transfer of Assets and Liabilities
Sec. 30. Transfer of Existing and Completed
Physical Facilities. — In accordance with the transitory provisions of
this Decree, there shall be transferred to the Authority all existing
and completed public port facilities, quays, wharves, docks, lands,
buildings and other property, movable or immovable, belonging to those
ports declared as Port Districts for purposes of this Decree.
Sec. 31. Transfer of Intangible Assets. — In
accordance with the transitory provisions of this Decree, there shall
be transferred to the Authority all intangible assets, powers, rights,
foreshore rights, interests and privileges belonging to the Bureau of
Customs, and Bureau of Public Works and other agencies relating to port
works or port operations, subject to terms to be arranged by and
between the Authority and agencies concerned. Any disagreement relating
to such transfer shall be elevated to the President for decision.
Sec. 32. Projects in Progress. — In accordance
with the transitory provisions of this Decree, all ongoing projects
relating to the construction of ports and port facilities shall be
continued by the agency or agencies involved until completion. After
completion, such projects shall be transferred to the Authority in
accordance with the agreement among agencies concerned. Any
disagreement relating to such transfer shall be elevated to the
President for decision.
Sec. 33. Transfer of Liabilities and Debts. — Upon
the transfer and acceptance by the Authority of the existing physical
facilities, intangible assets, and completed projects referred to in
the Sections immediately preceding, all debts, liabilities, and
obligations of the government agencies or entities concerned in respect
of such physical facilities, intangible assets and completed projects
within the Port Districts shall likewise be transferred to or deemed
incurred by the Authority.
Sec. 34. The Philippine Coast Guard shall retain
ownership of its properties and facilities which are necessary for the
enforcement of laws, rules and regulations pertaining to safety of life
and property at sea (SOLAS) found within ports and port districts and
shall continue to administer, operate and maintain the same as well as
assume the obligations and liabilities pertaining to such properties
and facilities. All other properties and facilities of the Philippine
Coast Guard found within ports and port districts, including all
obligations and liabilities related thereto shall be deemed transferred
to the Authority in accordance with Sec. 33 of this Decree.
Sec. 35. Transfer of Staff . — Officials and
employees of existing offices or agencies, or their subordinate units,
which are abolished or reorganized under this Decree may be absorbed by
the Authority on the basis of merit and fitness: Provided, That those
officials and employees who are deemed qualified under both the
Authority and the reorganized office agency or unit shall have the
option to either transfer or remain in their present office, agency or
unit, or elect to be separated from the service with all the benefits
they may be entitled to under existing laws: Provided, further, That
those who do not qualify under the Authority shall be retained in the
office or agency in which the unit was abolished.
Sec. 36. Gratuity and Other Benefits. — All
officials and employees whose services are terminated as a result of
this Decree shall be given gratuities equivalent to one month's salary
for every year of continuous satisfactory service rendered but not
exceeding twelve months on the basis accorded to them by existing laws.
Construction and Dredging Works
Sec. 37. Construction and Dredging Works. —
a) The Bureau of Public Works shall be the executing
agency of the Authority for the detailed design, contract document
preparation and advertisement, construction supervision of port
terminal facilities and port works, and the dredging of public ports
vested in the Authority; Provided, That when there are no qualified
bidders and for projects less than two hundred thousand pesos
(P200,000.00), the Bureau of Public Works may undertake the
construction through force account; Provided, further, That the
Authority shall perform rehabilitation or maintenance works (including
maintenance dredging) by its own personnel or private contractor,
whichever arrangement is more advantageous to port and shipping
b) The Authority shall be responsible for the
allocation and control of all funds for the execution of all
construction, rehabilitation and maintenance works mentioned in the
Sec. 38. Transitory Provisions. —
a) Until the President declares the Authority to be
fully operational, the Bureau of Customs and the Division of Ports and
Harbors of the Bureau of Public Works may continue to perform, in
coordination with the Authority, such port operations and port works as
may be deemed necessary, undertake the phased or gradual takeover of
such port operations or port works.
b) The budget for staff operations and other expenses
relating to port operations or port works of the Bureau of Customs or
the Bureau of Public Works, as the case may be, during such
transitional period, shall be submitted by them to the Authority for
information and guidance before implementation.
c) All expenses and charges relating to port
operations and port works during the transitional period shall be paid
out of the funds of the Authority or such other funds as may be
allocated to the Authority in the Annual Appropriations Act or other
sources. For this purpose, the current budget provision, funds and
allocations of the Bureau of Customs, the Bureau of Public Works and
other government agencies concerned, pertaining to the expenses,
including retirement funds, for personnel involved in port planning,
maintenance and operations, the outlays for port works and port
development, the existing balances as well as subsequent collections
from port operations shall be transferred to the Authority in
accordance with transfer arrangements to be negotiated by and among the
agencies concerned: Provided, however, That in case of disagreement
relating to such transfer, the same shall be elevated to the President
for decision: Provided, further, That all transitional arrangements
including transfers of property, funds, rights, powers and liabilities
under this Decree shall not extend beyond Fiscal Year 1977.
Sec. 39. Bureau of Customs. — The Tariff and
Customs Code is hereby modified or amended to the extent that all the
powers, duties and jurisdictions of the Bureau of Customs concerning
the following matters shall be transferred to and be vested in the
a) All dues, fees and rates collectible under Title
VII but excluding Part VII of the Code;
b) The general supervision, control, and regulation
of all matters and affairs that pertain to the operation of and the
issuance of permits or licenses to construct ports, port facilities,
warehouses, and other facilities within port districts;
c) All such other powers, duties and jurisdictions
vested in the Bureau of Customs pertaining to every matter concerning
port facilities, port operations or port works.
Sec. 40. Other Laws. — Any and all other powers
and rights, duties and functions and jurisdiction vested in and all
properties and appropriations of any government agency, authority or
instrumentality pertaining to every matter concerning port facilities,
ports operations, or port works shall be transferred to and be vested
in the Authority.
Sec. 41. Repeal. — All laws, decrees, Letters of
Instructions, orders, rules and regulations, policies, programs or
parts thereof inconsistent with or contrary to any of the provisions of
this Decree are hereby repealed or modified, including but not limited
to the following:
a) R.A. No. 4567 creating the San Fernando Port
Authority and R.A. No. 4663 as amended by R.A. No. 6086 creating the
Cagayan de Oro Port Authority.
b) Sections 26 and 27 of Presidential Decree No. 458.
c) Act No. 3592 as amended, creating the Port Work
d) Presidential Decree No. 505.
e) Sec. 711 as far as Port Administration is
concerned. Sec. 3304 and such other inconsistent provisions of the
Tariff and Customs Code without prejudice to the provisions of Sec. 38 of this Decree.
f) Sec. 3 (a) as far as it concerns stevedoring,
arrastre and customs brokerage services and the whole of Section 11 (c)
of Presidential Decree No. 474 creating the Maritime Industry Authority.
Sec. 42. Separability Clause. — If, for any
reason, any section or provision of this Decree is declared to be
unconstitutional or invalid, the other sections or provisions of this
Decree which are not affected thereby shall continue in full force and
Sec. 43. Penalties. —
a) Any person who violates any of the provisions of
this Decree or any of the rules and regulations issued or promulgated
by the Authority, shall be punished by imprisonment for not less than
one day but not more than six years, and pay a fine of not less than
two hundred pesos but not more than one hundred thousand pesos. If the
offender is a government official or employee he shall, in addition to
imprisonment and fine be perpetually disqualified to hold any public
office. If the offender is a juridical person, the penalty of
imprisonment and fine shall be imposed upon its manager, director,
representative or employee thereof responsible for the violation. If
the offender is an alien he shall be deported immediately without
further proceedings, after serving his sentence and paying the fine.
b) Any license, franchise, authority or permit to
exercise any right or privilege, which may have been issued by the
Authority in accordance with this Decree or the rules and regulations
issued or promulgated pursuant to this Decree, shall be deemed
withdrawn and revoked upon conviction of the holder thereof.
Sec. 44. Effectivity. — This Decree shall take
immediate effect upon its promulgation.
Done in the City of Manila,
this 23rd day of December in the year of Our Lord, nineteen hundred and