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PRESIDENTIAL DECREE NO. 1059
PRESIDENTIAL DECREE NO. 1059 -
REGULATING THE OPERATIONS OF SHIPBUILDING AND SHIP REPAIR YARDS
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WHEREAS,
the priority attention and incentives given by the government for the
shipbuilding and ship repair industry have attracted new investment
including the inflow of foreign capital and technology; chanroblesvirtualawlibrary
WHEREAS, the MARITIME INDUSTRY AUTHORITY has been tasked to enhance
domestic capability for shipbuilding, repair and maintenance;chanroblesvirtualawlibrary
WHEREAS, the establishment of numerous shipyards could lead to
destructive competition and possible collapse of the shipbuilding and
ship repair industry;chanroblesvirtualawlibrary
WHEREAS, it is strongly imperative to regulate the activities of the
shipyards in the country to effectively promote the shipbuilding and
ship repair program in particular, and the development of the maritime
industry as a whole.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution do hereby
order and decree the following as part of the law of the land:cralaw:red
Section 1. The policies and objectives declared in
Presidential Decrees Nos. 474, 666 and 878 for the shipbuilding and
ship repair industry are reiterated herein and made an integral part of
this decree. In pursuance of such policies and objectives, the Maritime
Industry Authority is hereby empowered to exercise the following
functions and responsibilities:cralaw:red
1. It shall undertake the approval of the plans of
shipbuilding and/or ship repair facilities and the plans and
specifications for the construction, repair, improvement, alteration
and/or reconditioning of any watercraft shipyards in the country.
2. It shall regulate the activities of the
shipbuilding and ship repair yards by determining the minimum and
maximum capacity of the shipbuilding and/or ship repair facilities of
all shipyards which will be the basis of a classification to be
undertaken by the Maritime Industry Authority for purposes of
ascertaining the allowable shipbuilding and/or ship repair capacity of
every shipyard.
3. To ensure equitable participation among all
registered shipyards, to preclude destructive competition among them,
and to provide ample protection to those that were earlier registered,
it shall see to it that shipyards registered later than January 1,
1977, shall only be allowed to accept shipbuilding and/or ship repair
contracts that are beyond the capacity of prior registered shipyards;
Provided, that in case of shipbuilding and/or ship repair contracts
which cannot be accommodated by such prior registered shipyards on time
on account of existing prior commitments, of or inadequacy or lack of
the required shipbuilding and/or ship repair facilities, the shipowner,
agent or operator shall be allowed to engage the services of the
shipyard of his choice upon proof and after determination by the
Maritime Industry Authority of the non-availability of the needed
services by any prior registered shipyard.
Section 2. The Maritime Industry Authority shall
promulgate rules and regulations together with the procedures and
guidelines for the proper and efficient implementation of the above
provisions.
Section 3. Any provisions of law, decree, executive
order, or rules and regulations inconsistent with this Decree is hereby
repealed or modified accordingly.
Section 4. This Decree shall take effect immediately.
Done in the City of Manila,
this 1st day of December, in the year of Our Lord, nineteen hundred and
seventy-six.
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