Measures to Develop and Expand the Country's Overseas Merchant Marine Fleet

November 21, 1980

LETTER OF INSTRUCTIONS NO. 1085

WHEREAS, it is the declared national policy to accelerate the development and expansion of the country's overseas Merchant Marine fleet;

WHEREAS, existing measures to promote and develop overseas shipping are deemed inadequate;

WHEREAS, fleet development and regulation policies must be in adherence to the principles of international agreements on shipping;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, hereby direct the following:

1. All overseas shipping companies, whether Filipino-owned or foreign owned, engaged in liner service to and from Philippine ports shall secure a permit from the Maritime Industry Authority (MARINA) which shall prescribe the schedule and sailing frequencies of the vessels of said shipping companies prior to calling at Philippine ports, provided that vessels already in operation on this date shall be automatically granted the required permit. All such permits shall be subject to periodic review to ascertain service reliability and reasonableness of freight rate except in cases where fares, charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies recognized by the Philippine Government as the proper arbiter of such fares, charges or rates. Ships operating without permits shall be subject to penalties, including fines and refusal of berthing space and priority.

2. MARINA shall regulate the entry of new operators into routes adequately served by traditional operators as may be determined from the availability of cargo and the criteria of 40-40-20 sharing under the UNCTAD Code of Conduct for Liner Conferences.

The Administrator of MARINA shall formulate the guidelines, rules and regulations necessary for the proper and effective implementation of this Letter of Instructions, subject to my final approval.

DONE in the City of Manila, this 21st day of November, in the year of Our Lord, Nineteen Hundred and Eighty. cdt