Presidential Decree No. 866 (PD 866) — Amending Presidential Decree No. 760 by Reducing the Term of the Lease or Charter Period to Not Less Than One Year, Deleting the Word "Time" in the Title and Body of the Decree, and Allowing Overseas Use in Certain Cases.
WHEREAS, the use of the term "time charter" in the decree is
too technical and restrictive as to exclude other forms of charter
parties;
WHEREAS, the requirement of "not less than five years" for
the charter or lease period has deterred many a ship-owner and/or
charterer from availing of the incentives under the decree;
WHEREAS, there is a need to give a certain degree of
flexibility to the charterer or leassee in the use of the vessel;
WHEREAS, it is imperative to amend the decree accordingly so
as to attain the objectives sought to be achieved by the same.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Republic of the Philippines, by virtue of the powers in me vested by the
Constitution, do hereby order and decree:
SECTION 1. The title of Presidential Decree No. 760 is
hereby amended to read as follows:
"ALLOWING THE TEMPORARY REGISTRATION OF FOREIGN-OWNED VESSELS
UNDER [TIME] CHARTER OR LEASE TO PHILIPPINE NATIONALS FOR USE IN THE
PHILIPPINE COASTWISE TRADE SUBJECT TO CERTAIN CONDITIONS."
SEC. 2. Section 1 of Presidential Decree No. 760 is hereby
amended to read as follows:
"SECTION 1. Any provision of law, decree, executive
order, or rules and regulations to the contrary notwithstanding, any
foreign-owned vessel under [time] charter or lease to a Philippine
national, as the term is defined in Section 3 of Presidential Decree No.
474, may be issued a temporary certificate of Philippine registry by
the Maritime Industry Authority: Provided, That the said charter
or lease (1) has the prior written approval of the Maritime Industry
Authority, (2) shall be valid and effective for a period of not less
than [five] one year, and (3) shall be used exclusively in the coastwise
trade in the Philippines. UNLESS OTHERWISE PERMITTED BY THE MARITIME
INDUSTRY AUTHORITY TO BE USED FOR OVERSEAS TRADE SUBJECT TO TERMS AND
CONDITIONS IT MAY IMPOSE: Provided, further, That the operation
of the vessel shall be entirely in the hands of Philippine nationals and
free from any participation or interference from the alien, owner,
except insofar as such action shall be to directly protect his rights as
owner thereof: Provided, finally, That the registered vessel
shall be manned completely by a Filipino crew, except in the case of
specialized fishing vessel.
The effectivity of any charter or lease contract entered into
pursuant to this Decree shall not extend beyond the year 1990, unless
otherwise extended by the President of the Republic of the Philippines."
SECTION 3. This Decree shall take effect immediately.
Done in the City of Manila, this 2nd day of January, in the
year of Our Lord, nineteen hundred and seventy-six.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
JACOBO C. CLAVE
Presidential Executive Assistant
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
