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Republic Act No. 1937 Tariff and Customs Code of the Philippines AN ACT TO REVISE AND CODIFY THE TARIFF AND CUSTOMS LAWS OF THE PHILIPPINES REPUBLIC ACT NO. 1937 CUSTOMS LAW REGISTRATION OF VESSELS, COASTWISE TRADE AND LICENSING OF MARINE OFFICERS
Section
801. Registration and Documentation
of Vessels. — The Bureau of Customs is vested with exclusive
authority
over the registration and documentation of Philippine vessels. By it
shall
be kept and preserved the records of registration and of transfers and
encumbrances of vessels; and by it shall be issued all certificates,
licenses
or other documents incident to registration and documentation, or
otherwise
requisite for Philippine vessels.
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Sec.
802. Vessels Required to be Registered.
— Every vessel used in the Philippine waters, not being a transient of
foreign registry shall be registered in the Bureau of Customs. To this
end, it shall be the duty of the master, owner or agent of every vessel
to make application to the proper Collector for the registration
thereof
within fifteen days after the vessel becomes subject to such
registration.
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A
vessel of three tons gross or less shall not be registered, unless the
owner shall so desire, nor shall documents or licenses of any kind be
required
for such vessel, but the proper fee shall be charged for admeasurement,
when admeasurement is necessary, except when the same is engaged in
towing
or carrying of articles and passengers for hire.
Sec.
803. Where Registration to be
Effected. — The registration of a vessel shall be effected at its home
port, being a port of entry, or at the port of entry of the district of
the vessel's home port.
Sec.
804. Data to be Noted in Register
of Vessels. — In the register of vessels, to be kept at each port of
entry,
the following facts concerning each vessel there registered shall be
noted
in such form and detail as the Commissioner shall prescribe:
Sec.
805. Record of Documents Affecting
Title. — In the record of transfers and encumbrances of vessels, to be
kept at each principal port of entry, shall be recorded at length all
transfers,
bills of sale, mortgages, liens or other documents which evidence
ownership
or directly or indirectly affect the title of registered vessels, and
therein
shall be recorded all receipts, certificates or acknowledgment
canceling
or satisfying, in whole or in part, any such obligations. No other
record
of any such document or paper shall be required than such as is
affected
hereunder.
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Sec.
806. Certificate of Philippine
Registry. — Upon registration of a vessel of domestic ownership, and of
more than fifteen tons gross a certificate of Philippine registry shall
be issued for it. If the vessel is of domestic ownership and of fifteen
tons gross or less, the taking of the certificate of Philippine
registry
shall be optional with the owner.
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"Domestic
ownership", as used in this section, means ownership vested in
citizens
of the Philippines, or corporations or associations organized under the
laws of the Philippines at least seventy-five per centum of the capital
stock of which is wholly owned by citizens of the Philippines, and, in
the case of corporations or associations which will engage in coastwise
trade the president or managing directors thereof shall be such
citizens:
Provided,
That the certificate of Philippine registry issued to a vessel prior to
the approval of this Code shall not be affected: Provided, further,
That
any vessel of more than fifteen tons gross which on February eight,
nineteen
hundred and eighteen, had a certificate of Philippine registry under
existing
law, shall likewise be deemed a vessel of domestic ownership if there
has
been no change in its ownership or if the stock of the association or
corporation
owning such vessel has not been transferred to persons who are not
citizens
of the Philippines, and if any such vessel should have been totally
lost
through shipwreck, collision or any other marine disaster, while being
lawfully operated, it may be replaced with another vessel of the same
or
lesser tonnage by the same person, association or corporation owning
and
operating same by virtue of this section, under such terms and
conditions
as may be prescribed by the Commissioner consistent with public policy
and with the view of its utility for government service in case of war
or any public emergency: Provided, further, That the
controlling
interest in the corporation shall not be considered as held by citizens
of the Philippines: (a) if at least seventy-five percent of the stock
is
not held by such citizens and such stock is subject to any trust or
fiduciary
obligation in favor of any person not a citizen of the Philippines; (b)
if the majority of stock in said corporation entitled to vote is not in
the hands of citizens of the Philippines; (c) if by means of a contract
or agreement, the majority of the stock can be voted directly or
indirectly
in favor of any person not a citizen of the Philippines; or (d) if by
any
other means, the control of the association or corporation is conferred
upon or allowed to be exercised by any person not a citizen of the
Philippines.
Sec.
807. When Control is Deemed not
Held by Citizens of the Philippines. — It shall not be considered that
seventy-five per centum of the capital stock of a corporation is held
by
citizens of the Philippines: (a) if the certificates of seventy-five
per
centum of the capital stock are not held by such citizens and such
certificates
are subject to some trust or other fiduciary obligation in favor of a
person
not a citizen of the Philippines; (b) if seventy-five per centum of the
stock of said corporation entitled to vote is not in the hands of
citizens
of the Philippines; (c) if by means of some contract or agreement more
than twenty-five per centum of the stock in such corporation can be
voted
directly or indirectly in favor of any person not a citizen of the
Philippines;
or (d) if by any other means, the control of any interest in the
corporation
in excess of twenty-five per centum has been conferred upon or is
allowed
to be exercised by any person not a citizen of the Philippines.
The
provisions of this section shall be applicable to the administrators
and
trustees of all persons coming under its provisions and to the
successors
or assigns of such persons.
Sec.
808. Certificate of Ownership.
— Upon registration of a vessel of more than five tons gross, a
certificate
of ownership shall be issued for it, if the vessel does not take a
certificate
of Philippine registry. If such vessel is of five tons gross or less,
the
taking of a certificate of ownership shall be optional with the
owner.
Sec.
809. Form and Contents of Certificate
of Philippine Registry. — The certificate of Philippine registry shall
be in such form as shall be prescribed by the Commissioner, and it
shall
show that the vessel is engaged in legitimate trade and is entitled to
protection and flag of the Philippines.
Sec.
810. Privileges Conferred by
Certificate of Philippine Registry. — A certificate of Philippine
registry
confers upon the vessel the right to engage, consistently with law, in
the Philippine coastwise trade and entitles it to the protection of the
authorities and the flag of the Philippines in all ports and on the
high
seas, and at the same time secures to it the same privileges and
subjects
it to the same disabilities as, under the laws of the Philippines,
pertain
to foreign-built vessels transferred abroad to citizens of the
Philippines.
Sec. 811. Investigation Into Character of Vessel. — No application for a certificate of Philippine registry shall be approved until the Collector is satisfied from an inspection of the vessel that it is engaged or destined to be engaged in legitimate trade and that it is of domestic ownership as such ownership is defined in section eight hundred and six hereof.
A
Collector may at any time inspect a vessel or examine its owner,
master,
crew or passenger in order to ascertain whether the vessel is engaged
in
legitimate trade and is entitled to have or retain the certificate of
the
Philippine registry.
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robles virtual law librarychan robles virtual law library
The
Collector may at any time make an administrative investigation as to
the
ownership or title of any vessel engaged in the coastwise trade and
whether
such title or ownership is in accordance with the requirements of law;
and any vessel sold, transferred or mortgaged to any person not a
citizen
of the Philippines without previous approval of the President of the
Philippines,
or leased or chartered to any citizen or national of a country with
which
the Philippines has no diplomatic relations, or put under foreign
registry
or flag without such approval, or operated in violation of any of the
provisions
of this Code, shall be seized by the Government of the Republic of the
Philippines; and any person, corporation, company or association
violating
any of the provisions of this section shall be guilty of a misdemeanor
and be punished by a fine of not more than five thousand pesos or
imprisonment
for not more than five years, or both: Provided, That in the
event
the person guilty of such violation is a corporation, company or
association,
the manager or, in his default, the president thereof shall be
criminally
responsible for such violation.
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Sec.
812. License of Yachts Exclusively
for Pleasure. — The Commissioner may license yachts used and employed
exclusively
as pleasure vessels owned by Filipino citizens, on terms which will
authorize
them to proceed from port to port of the Philippines and to foreign
ports
without entering or clearing at the customhouse: Provided, however,
That any yacht so licensed, upon arriving from a foreign port in the
Philippines
after having previously advised the Commissioner by telegraph of its
probable
arrival, shall enter at a port of entry in the Philippines and shall
immediately
report its arrival to the customs authorities. Such license shall be in
such form as the Commissioner shall prescribe. Such vessels shall have
their name and port of registration placed on some conspicuous portion
of their hulls, and in all respects be subject to the laws of the
Philippines,
and shall be liable to seizure and forfeiture for any violation of
these
provisions.
Sec.
813. Violation by Master or Owner.
— Any master or owner violating the provisions of the preceding section
shall be liable to a fine of from five thousand pesos in addition to
any
other penalty imposed by law.
Sec.
814. Identification of Yachts
and Owners. — For the identification of yachts and their owners, a
commission
to sail for pleasure in any designated yacht owned by a citizen of the
Philippines designating the particular cruise may be issued by the
Commissioner
and shall be a token of credit to any Filipino official and to the
authorities
of any foreign power. All such licensed yachts shall use a signal of
the
form, size and colors prescribed by the Commissioner.
Sec.
815. Report of Accident to Vessel.
— When any Philippine vessel required to register sustains or causes
any
accident involving loss of life, material loss of property, or serious
injury to any person, or receives any damage affecting her
seaworthiness
or her efficiency, the managing owner, agent or master of such vessel
shall,
by the first available mail send to the Collector of the district
within
which such vessel belongs or of that within which such accident or
damage
occurred, a report thereof, stating the name of the vessel, the port to
which she belongs, and the place where she was, the nature and probable
occasion of the casualty, the number and names of those lost and the
estimated
amount of loss or damage to the vessel or cargo; and shall furnish such
other information as shall be called for.
When
the managing owner or agent of such vessel has reason to believe that
it
has been lost, he shall promptly send notice in writing to the
Collector
at her home port giving advice of such loss and the probable occasion
therefor,
stating the name of the vessel and the names of all persons on board so
far as the same can be ascertained, and shall furnish, upon request of
the Collector, such additional information as shall be required.
Sec.
816. Application of Shipping
Laws to Government Boats. — Vessels owned or operated by the Government
shall not be subject to the requirement of this Code relative to
registration
and navigation except in so far as prescribed in the regulations of the
Bureau of Customs.
Sec.
817. Revocation of Certificate.
— When it shall appear to the Commissioner that any certificate of
Philippine
registry or certificate of ownership was illegally or improperly
issued,
he may cancel the same.
Sec. 818. Inspection of Hulls, Boilers and Other Constructional Features. — In the exercise of the authority conferred upon the Bureau of Customs over the coastwise trade and over Philippine vessels and shipping generally, it shall be the duty of the Commissioner to cause adequate technical inspections to be made from time to time and as occasion may require of the hulls, engines, boilers and other mechanical and constructional features of all vessels of foreign or private ownership navigating in any waters of the Philippines, on common trade routes open to general or competitive navigations, and carrying passengers from any port of the Philippines, to any other place or country and to fix the standard which must be attained in respect thereto: Provided, however, That every vessel of foreign registry holding a certificate issued under Regulation 11 or 12 of the International Conference on Safety of Life at Sea, 1948, shall be exempt from any inspection save that which may be necessary for the purpose of verifying the said certificate and whether the conditions of the ship's seaworthiness corresponds substantially with that stated in the certificate: Provided, further, That vessels belonging to countries which are not signatories to the International Conference on Safety of Life at Sea, 1948, which have inspection laws similar to those of the Philippines, shall, if the laws of said countries grant reciprocal rights to vessels of Philippine registry, be exempt from any inspection save that which may be necessary to convince customs authorities that the condition of the vessel, its boilers and life-saving equipment are as stated in the current certificate of inspection. The hulls, engines and boilers of all steam vessels engaged in coastwise traffic shall be inspected at least once a year or in case of the hulls of a wooden vessel, at least once every two years. chanrobles virtual law library Sec. 819. Inspection Certificate. — A certificate of inspection shall be issued to a vessel if it shall be found upon inspection that said vessel conforms with the requirements applicable to it: Provided, That any vessel of Philippine registry arriving from a foreign port with an unexpired certificate issued, upon the request of the Philippine Government, by a foreign government signatory to the International Conference on Safety of Life at Sea, 1948, shall be exempt from any inspection save that which may be necessary to convince customs authorities that the condition of the ship's seaworthiness corresponds substantially to that stated in the certificate, in which case the vessel shall be entitled to have a certificate of inspection issued to it. If the condition of the ship's seaworthiness does not correspond to that stated in the certificate, then the ship shall not be permitted to proceed to the sea without securing a new inspection certificate. Sec. 820. Sanitary Inspection. — It shall be incumbent upon the Commissioner to provide an adequate system of sanitary inspection for Philippine vessels. To this end a sanitary inspector may be appointed for the port of Manila. At the other respective ports, the function of sanitary inspector may be exercised by the surveyor or other official thereunto deputed by the Collector. It shall be the duty of the sanitary inspector by personal examination to ascertain the sanitary condition of vessels subject to inspection by him and to see that the sanitary regulations of the Bureau of Customs are fully complied with, and a clearance shall not be granted to any such vessel until the sanitary inspector shall so certify. Sec. 821. Fire-Fighting Apparatus and Life-Saving Equipment. — The regulations of the Bureau of Customs shall prescribe the mechanical equipment and fire-apparatus to be carried on Philippine vessels for the purpose of preventing and extinguishing fires. Such vessels shall also be required to carry life-saving equipment, consisting of boats, life-preservers and other devices, to be prescribed by regulation, sufficient for the safety of the passengers and crew in cases of emergency; and provision shall be made for adequate means of utilizing such equipment. Sec. 822. Certification of Applicant for Marine Officer. — If the Board of Marine Examiners shall find that the experience, habits and character of an applicant are such as to warrant the belief that he can safely be entrusted with the duties and responsibilities of the position for which he makes application and that the applicant has in other respects complied with the other requirements of law, it shall so certify to the Bureau of Customs which office shall issue the appropriate certificate. Sec. 823. Issuance of Certificates. — (a) Candidates for mate and master having passed the requisite examination shall be entitled to a certificate entitling them to navigate in any ocean. (b) Candidates for patron in major coastwise trade having passed the requisite examination shall be entitled to certificates authorizing them to navigate in the Philippine coastwise trade. (c) Candidates for patron in the minor coastwise trade having passed the requisite examination shall be entitled to certificates authorizing them to navigate upon the seas, harbors, bays, rivers or lakes for which they have shown proficiency and a thorough practical knowledge. (d) Candidates for marine engineers having passed the requisite examinations shall be entitled to certificates authorizing them to navigate as such engineers on vessels of any tonnage propelled by any kind of machinery. (e) Candidates for motor engineers having passed the requisite examinations shall be entitled to certificates authorizing them to act as such motor engineers on vessels of any tonnage propelled by internal combustion engines. Sec. 824. Form of Certificate. — The several certificates herein provided for shall be issued in the form of diplomas signed by the Commissioner and countersigned by the department head and shall entitle the holders thereof to navigate in accordance with the authority contained in them and shall not be suspended nor revoked except as hereinafter provided. Sec. 825. Physical Examination of Holders of Certificate. — Once in every five years, all holders of marine certificates shall be required to undergo a physical examination to determine their fitness to continue navigating. Any person who upon such examination is found to be physically unfit for the service shall thereafter be disqualified from engaging therein. Sec. 826. Reinstatements. — Any person who has held the office of captain, mate, master or engineer and whose license or certificate has been revoked on account of physical defects shall be entitled to reinstatement upon the favorable certificate of a physician appointed by the Commissioner to make a second examination. Sec. 827. Marine Investigation and Suspension or Revocation of Marine Certificate. — There shall be maintained in the Bureau of Customs at Manila a Board of Marine Inquiry to consist of five members, to wit: The Surveyor of the Port as chairman ex officio, two master marines and two chief engineers of the Philippine merchant marine, who shall be appointed by the department head. The members of the board shall receive a per diem of twenty pesos for each day of not less than seven hours of service rendered in connection with marine investigations. Three members present shall constitute a quorum for the transaction of business. In case of inability or absence of the Surveyor of the Port, a temporary chairman may be chosen by the members from among themselves. Such board shall have the power to investigate marine accidents and professional conduct of marine officers, giving the party affected an opportunity to be heard in his defense. The decision of the Commissioner based upon the findings and recommendations of the board, reprimanding a licensed marine officer or suspending or revoking any marine certificate on account of professional misconduct, intemperate habits, negligence or incapacity shall be final, unless, within thirty days after its promulgation, an appeal is perfected and filed with the department head who may confirm, revoke or modify said decision. Rules and regulations governing the procedure of marine investigations shall be promulgated by the department head. The Commissioner may, with the approval of the department head authorize the collectors to appoint boards for the purpose of investigating marine accidents or charges preferred against the marine officers in their respective districts. The proceedings of such investigations, together with findings and recommendations of said board shall be submitted, through the Commissioner, to the Board of Marine Inquiry, Manila, for final review and recommendation. In order to safeguard lives and properties at sea, a Collector may withhold clearance of any Philippine vessel whenever he has reasonable cause to fear that the mental condition or capacity, whether permanent or otherwise, of her master, mate or engineer under investigation, pending the final decision thereon so warrants. Sec. 828. Fees for Insurance of Certificates. — Any person to whom any certificate as master, mate, patron or engineer is issued, upon examination or by way of exchange shall pay: chanrobles virtual law library For a certificate as master, sixty pesos. First, second and third mates, and major patron, forty pesos. Chief marine or motor engineer, sixty pesos. Second, third and fourth motor engineers, forty pesos. Bay, river and lake motor engineer and patrons, thirty pesos. Sec. 829. Citizenship of Personnel on Board Vessels. — No Philippine vessel operating in the coastwise trade or on the high seas shall employ any officer or any member of the crew who is not a citizen of the Philippines. Sec. 830. Complement of Watch and Engine-room Officers on Philippine Vessels. — Every vessel registered in the Philippines shall have the following officers:
Sec.
831. Waters on Which Patron May
Navigate. — No person shall be permitted to act as master or mate on
any
waters other than for which he has been duly licensed as such patron,
and
no patron shall be permitted to act as master on any vessel of a
greater
tonnage than for which he is licensed: Provided, That when
there
are no licensed patrons available, the Commissioner may permit other
licensed
marine officers to act as master or mate on vessels of a tonnage and in
waters where, according to the law, vessels must navigate, commanded by
licensed patrons, for a period to exceed six months and subject to such
conditions as said official may prescribe.
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COASTWISE TRADE
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Sec.
901. Ports Open to Coastwise
Trade. — All ports and places in the Philippines shall be open to
vessels
lawfully engaged in the coastwise trade subject to the provisions of
law
applicable in particular cases.
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Sec. 902. Vessels Eligible for Coastwise Trade. — The right to engage in the Philippine coastwise trade is limited to vessels carrying a certificate of Philippine registry. chanrobles virtual law library
Sec.
903. License for Coastwise Trade.
— All vessels engaging in the coastwise trade must be duly licensed
annually.
Sec.
904. Philippine Coastwise Emblem.
— Vessels engaged in the Philippine coastwise trade shall fly at the
mainmast
the Philippine coastwise emblem, consisting of a rectangular white flag
with one blue and one red stars ranged from staff to tip in the
horizontal
median line.
Sec.
905. Transportation of Passengers
and Articles Between Philippine Ports. — Passengers shall not be
received
at one Philippine port for any other such port by a vessel not licensed
for the coastwise trade, except upon special permission previously
granted
by the Collector; and subject to the same qualification, articles
embarked
at a domestic port shall not be transported to any other port in the
Philippines,
either directly or by way of a foreign port, or for any part of the
voyage,
in any other vessel than one licensed for the coastwise trade.
Sec.
906. Requirement of Manifest
in Coastwise Trade. — Manifests shall be required for cargo and
passengers
transported from one place or port in the Philippines to another only
when
one or both of such places is a port of entry.
Sec.
907. Manifests Required Upon
Departure From Port of Entry. — Prior to departure from a port of
entry,
the master of a vessel licensed for the coastwise trade shall make out
and subscribe duplicate manifests of the whole of the cargo and all of
the passengers taken on board such vessels, specifying in the cargo
manifests
the marks the marks and numbers of package, the port of destination,
and
the names of the consignees, together with such further information as
may be required, and in the passenger manifests, the name, sex, age,
residence,
port of embarkation, and destination of all passengers, together with
such
further information as may be required. He shall deliver such manifests
to the Collector, or other customs official duly authorized, before
whom
he shall swear to the best of his knowledge and belief, in respect to
the
cargo manifests, that the goods therein described, if foreign, were
imported
legally and that the duties, taxes and other charges thereon have been
paid or secured, and in respect to the passenger manifests, that the
information
therein contained is true and correct as to all passengers taken on
board.
Thereupon, the said Collector, or customs official, shall certify the
same
on the manifests, the original of which he shall return to the master
with
a permit specifying thereon, generally, the lading on board such
vessel,
and authorizing him to proceed to his port of destination, retaining
the
duplicates.
Sec.
908. Manifests Required Prior
to Unlading at Port ofEntry. — Within
twenty-four hours after the arrival at a port of entry of a vessel
engaged
in the coastwise trade, and prior to the unlading of any part of the
cargo,
the master shall deliver to the Collector or other proper customs
official
complete manifests of all the cargo and passengers brought into said
port,
together with the clearance manifests of cargo and passengers for said
port granted at any port or ports of entry from which said vessel may
have
cleared during the voyage.
Sec.
909. Departure of Vessel Upon
General Manifest. — The Commissioner may by regulation permit a vessel
to depart coastwise from a port of entry upon the filing of a general
manifest
by the master thereof, the owners, agents or consignees being required
to present the proper detailed manifest within forty-eight hours after
the departure of the vessel.
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Sec.
910. Bay and River License. —
Annual licenses authorizing vessels of any tonnage to engage in the
business
of towing or carrying of articles or passengers in the bays, harbors,
rivers
and inland waters navigable from the sea shall be issued by the
Collector
of the various ports of entry under the conditions hereinbelow
prescribed;
and except as otherwise expressly provided, no vessel shall be
permitted
to engage in this character of business until the proper license
therefor
has been procured.
A
bay and river license shall specify the particular port or other body
of
water in which the vessel in question may engage in business as
aforesaid.
Sec.
911. Vessels Eligible for Bay
and River License. — To be eligible for the bay and river license, a
vessel
must be built in the Philippines, and the ownership of such vessel must
be vested in: (a) citizens of the Philippines; (b) domestic
corporations
or companies seventy-five per centum of whose corporate capital belongs
to citizens of the Philippines: Provided, That the present owners of
vessels
with bay and river license under existing law who do not possess any of
the requirements herein prescribed may nevertheless continue operating
such vessels as eligible for said bay and river license.
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Sec. 912. Exemption of Certain Craft from Requirement of Bay and River License. — No bay and river license shall be required of any of the following classes of vessels:
The
exemption of any vessel shall at once cease if it engages in the
business
of transporting cargo or passengers, for hire.
Sec.
913. Revocation of License. —
The Commissioner may, for cause at any time, revoke any coastwise
license
or bay and river license.
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