Memorandum Circular No. 105

MEMORANDUM CIRCULAR NO.
105
TO : ALL DOMESTIC SHIPPING COMPANIES, OIL

COMPANIES, OPERATORS/CHARTERERS AND OTHER
MARITIME ENTITIES CONCERNED
SUBJECT : GUIDELINES ON THE TEMPORARY UTILIZATION OF

FOREIGN-OWNED/REGISTERED VESSELS AND
PHILIPPINE-REGISTERED OVERSEAS VESSELS IN THE
DOMESTIC TRADE.
Pursuant to the provisions of Presidential Decree No. 474 and Executive Order
Nos. 125/125-A, the following guidelines shall govern the temporary utilization of
foreign-owned/registered vessels and Philippine-registered overseas vessels in the
domestic trade.
I. OBJECTIVE
This Memorandum Circular aims provide guidelines in the temporary use of

foreign owned/registered vessels and Philippine-registered overseas vessels in the
domestic trade.
II. COVERAGE
This Circular shall apply to domestic shipping companies/operators/charterers/oil

companies and concerned entities intending to temporarily utilize vessels of any type in
the domestic trade.
III. GENERAL GUIDELINES
1. The issuance of a Special Permit under this Memorandum Circular is

anchored on the temporary character of the need to utilize foreign-
owned/registered vessels and Philippine-registered overseas vessels, in the
domestic trade.
2. Shipping Companies/Operator/charterers or Oil Companies which will

utilize/need foreign owned/registered vessels, and Philippine-registered
overseas vessels to be used temporarily in the domestic trade to carry or
transport passengers and/or cargoes shall apply for a Special Permit with
the Domestic Shipping Office, this Authority, and pay the required
processing fee therefore.
3. On the other hand, Private/Public Corporation, Partnership, Association
and other Entities which shall utilize vessels in oil exploration and drilling
activities, offshore surveying, dredging, construction, underwater cable
laying, floating hotel and/or recreation center, training/research ships,
storage facilities and other similar activities shall apply for Exemption
Certificate with Domestic Shipping Office.
4. The carriage by foreign shipping companies of their Own empty

containers (considered ship’s gear) between domestic ports shall be
exempted from issuance of Special Permit.
IV. SPECIAL REQUIREMENT
All vessels to be temporarily utilized in the domestic trade with the issuance of
SP/EP must comply with the following:
1. Must not be more than 15 years old from date of launching. However, this
shall not apply to Philippine registered vessels and LPG carriers.
2. Must be classed by a recognized international classification society.
V. INSTANCES WARRANTING THE ISSUANCE OF SPECIAL PERMITS
A Special Permit shall be issued in any of the following instances:
1. There is no existing vessel operating in the proposed route/area of

operation;
2. There is no available local vessel to transport the cargo to meet the

shipping requirement;
3. The proposed vessel is contracted by private/public entities; and
4. In the case of vessel carrying or bringing in foreign tourists, operation

calls at domestic ports is part of its itinerary.
VI. DEFINITION OF TERMS
1. Vessel - shall refer to all crafts or artificial contrivance utilizing any

source of motive power designed, used or capable of being used as a
means of water transportation.
2. Domestic trade - shall mean any operation of a vessel within

Philippine waters.
3. Domestic/Philippine Ports - shall mean any port within Philippine
waters.
4. Temporary Utilization - shall mean the operation of a foreign-

owned/registered vessel or Philippine-registered overseas vessel in the
domestic trade for an aggregate period of less than one (1) year.
5. Foreign-Owned/Registered Vessel - shall mean a vessel owned by a

foreign national/company registered under foreign flag.
6. Philippine-Registered Overseas vessel - shall mean a vessel operating

in the overseas trade under Philippine flag.
VII. DURATION OF SPECIAL PERMIT
A Special Permit shall be issued on a month-to-month basis, or on a bi-monthly

basis but no Special Permit shall have a duration of more than three (3) months per
issuance.
An Exemption Permit shall have a duration co-terminus with the contract for
which the vessel shall be utilized, but not to exceed one (1) year.
VIII. DOCUMENTARY REQUIREMENTS
a) The following documentary requirements are to submitted prior to

issuance of special Permit:
1. Letter of Intent
2. Duly notarized Fixture Note or Contract of Affreightment or duly

authenticated/notarized Time/Voyage Charter Agreement between
vessel’s registered owners and charterers duly signed, with names
of signatories printed.
3. Duly notarized Resolution of the company’s Board of Directors,

certified by the Board Secretary authorizing the filing of the
application and designating the officials/authorized representatives
to represent the applicant-company/registered owner.
4. Valid Certificate of vessel’s registry
5. Class Certificate/Latest Survey Report
6. SOLAS Certificates
7. Crew list indicating STCW certificates (number and validity) of
the crew certificated
8. Proof of payment of Processing Fee
9. Additional Requirements
For log carriers
a) Clearance from the Department of Environment

and Natural Resources
For passenger vessels
a) Clearance from the Department of Tourism (DOT)

for tankers/barges for carriage of
petroleum/petroleum by - products:
b) Qualifications for officers and ratings who have

specific duties and responsibilities for loading,
discharging and care in transit or handling of cargo
on board tankers:
i) At least one (1) year sea service on board

tanker vessels; or
ii) Have taken an approved Tanker

Familiarization or Basic/General Tanker
Safety Course
For Regulation No. V/1:
i) At least one (1) year experience on board oil

tankers during the last five (5) years; and
ii) Completed an Advanced/Specialized Oil

Tanker Course
For Regulation V/2:
i) At least one (1) year experience on board

chemical tankers during the last five (5) years;
and
ii) Completed an Advanced/Specialized
Chemical Tanker Course
For Regulation No. V/3:
i) At least one (1) year experience on

board LPG/LNG Tankers during the
last five (5) years; and
ii) Completed an
Advanced/Specialized LPG/LNG
Tanker Course
b) EIAB Certificate of Compliance

(COC)
c) Certified true copy of the

TOVALOP (except LPG carriers) &
P & I Coverage
The oil company shall file a request with the Department of

Energy thru the Energy Industry Administration Bureau for the issuance of
a COC for the temporary utilization of the foreign/Philippine-registered
tanker(s).
b. The documentary requirements for issuance of Special Permit shall be as

prescribed in the MARINA MC No. 85 and any amendment thereto.
IX. PROCESSING FEES
The Applicant shall pay the processing fee herein listed:
a. Special Permit/Exemption P12,000.00 minimum/

Certificate for temporary month/vessel or P60.00/
utilization of Foreign- 50 GRT or fraction
Registered Vessels in the thereof whichever is
Domestic Trade/Extension/ higher
Renewal of SP/EC
b. Special Permit/Exemption P1,100.00 minimum/

Certificate for temporary issuance/vessel or
utilization of Philippine P55.00/100 GRT or
Registered Overseas Vessel fraction thereof
in the Domestic Trade whichever is higher
Extension/Renewal of SP/EC
c. Special Permit for temporary P2,200.00 minimum/
utilization of Foreign- issuance/vessel or
Registered Vessels in the P60.00/100 GRT or
Manila-Subic route fraction thereof
whichever is higher
d. Amendment of Special Permit P220..00/vessel

/Exemption Certificate
X. POST-APPROVAL CONDITIONS
The applicant-company shall submit within five (5) working days upon approval
of the Special Permit, a certified true copy of the Special work Permit issued by the
Bureau of Immigration and Deportation for its alien crew and, Alien Employment Permit
issued by the Department of Labor and Employment, if employment is more than thirty
(30) days.
XI. VIOLATIONS
Any violation of the terms and conditions of the Special Permit/Exemption

Permit or any provision of this Circular shall warrant the revocation/cancellation of the
Special Permit/Exemption Permit and the imposition of penalties provided for in
MARINA Memorandum Circular No. 50-A or any amendment thereto.
XII. REPEALING CLAUSE
Memorandum Circular Nos. 75 and 75-A are hereby repealed.
XIII. EFFECTIVITY
This Circular shall take effect fifteen (15) days after its publication once in a
newspaper of general circulation.
Manila, Philippines, 06 April 1995.
BY AUTHORITY OF THE BOARD:
PACIENCIO M. BALBON, JR.

Administrator
SECRETARY'S CERTIFICATE
This is to certify that Memorandum Circular No. 105 was approved in the Special
Meeting of the Maritime Industry Board held on 06 April 1995.
EMERSON M. LORENZO
Deputy Corporate Board Secretary
Date of Publication: 27 April 1995, Malaya Newspaper

Date of Submission to the UP Law Center: 28 April 1995

Memorandum Circular No. 105

Uploaded by

Copyright:

Available Formats

Memorandum Circular No. 105

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Memorandum Circular No. 105

Uploaded by

Copyright:

Available Formats

MEMORANDUM CIRCULAR NO.

TO : ALL DOMESTIC SHIPPING COMPANIES, OIL

SUBJECT : GUIDELINES ON THE TEMPORARY UTILIZATION OF

This Memorandum Circular aims provide guidelines in the temporary use of

This Circular shall apply to domestic shipping companies/operators/charterers/oil

III. GENERAL GUIDELINES

1. The issuance of a Special Permit under this Memorandum Circular is

2. Shipping Companies/Operator/charterers or Oil Companies which will

4. The carriage by foreign shipping companies of their Own empty

IV. SPECIAL REQUIREMENT

2. Must be classed by a recognized international classification society.

V. INSTANCES WARRANTING THE ISSUANCE OF SPECIAL PERMITS

A Special Permit shall be issued in any of the following instances:

1. There is no existing vessel operating in the proposed route/area of

2. There is no available local vessel to transport the cargo to meet the

3. The proposed vessel is contracted by private/public entities; and

4. In the case of vessel carrying or bringing in foreign tourists, operation

VI. DEFINITION OF TERMS

1. Vessel - shall refer to all crafts or artificial contrivance utilizing any

2. Domestic trade - shall mean any operation of a vessel within

4. Temporary Utilization - shall mean the operation of a foreign-

5. Foreign-Owned/Registered Vessel - shall mean a vessel owned by a

6. Philippine-Registered Overseas vessel - shall mean a vessel operating

VII. DURATION OF SPECIAL PERMIT

A Special Permit shall be issued on a month-to-month basis, or on a bi-monthly

VIII. DOCUMENTARY REQUIREMENTS

a) The following documentary requirements are to submitted prior to

2. Duly notarized Fixture Note or Contract of Affreightment or duly

3. Duly notarized Resolution of the company’s Board of Directors,

4. Valid Certificate of vessel’s registry

5. Class Certificate/Latest Survey Report

8. Proof of payment of Processing Fee

For log carriers

a) Clearance from the Department of Environment

For passenger vessels

a) Clearance from the Department of Tourism (DOT)

b) Qualifications for officers and ratings who have

i) At least one (1) year sea service on board

ii) Have taken an approved Tanker

For Regulation No. V/1:

i) At least one (1) year experience on board oil

ii) Completed an Advanced/Specialized Oil

For Regulation V/2:

i) At least one (1) year experience on board

For Regulation No. V/3:

i) At least one (1) year experience on

b) EIAB Certificate of Compliance

c) Certified true copy of the

The oil company shall file a request with the Department of

b. The documentary requirements for issuance of Special Permit shall be as

IX. PROCESSING FEES

The Applicant shall pay the processing fee herein listed:

a. Special Permit/Exemption P12,000.00 minimum/

b. Special Permit/Exemption P1,100.00 minimum/

d. Amendment of Special Permit P220..00/vessel

Any violation of the terms and conditions of the Special Permit/Exemption

XII. REPEALING CLAUSE

Memorandum Circular Nos. 75 and 75-A are hereby repealed.

Manila, Philippines, 06 April 1995.