Short Title.
Section 1
SECTION 1. Short Title. — This Act shall be known as the “Domestic Shipping Development Act of 2004.”
RA 9295 CHAPTER I General Provisions
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Declaration of Policy.
Section 2
SEC. 2. Declaration of Policy. — The State recognizes that shipping is a necessary infrastructure, which is vital to the economic development of our country. The Philippines needs a strong and competitive domestic merchant fleet owned and controlled by Filipinos or by corporations at least sixty percent (60%) of the capital of which is owned by Filipinos and manned by qualified Filipino officers and crew, which shall: (a) bridge our islands by ensuring safe, reliable, efficient, adequate and economic passenger and cargo service; (b) encourage the dispersal of industry and the economic development of our regional communities by ensuring the availability of regular, reliable and efficient shipping services; (c) ensure the growth of exports by providing necessary, competitive and economical domestic sea linkages; (d) serve as a naval and military auxiliary in times of war and other national emergencies; and (e) function as an employment support base for our Filipino seafarers. To attain these objectives, it is hereby declared to be the policy of the State to: (a) promote Filipino ownership of vessels operated under the Philippine flag; (b) attract private capital to invest in the shipping industry by creating a healthy and competitive investment and operating environment; (c) provide necessary assistance and incentives for the continued growth of the Philippine domestic merchant marine fleet; (d) encourage the improvement and upgrading of the existing domestic merchant marine fleet and Filipino crew to meet international standards; (e) ensure the continued viability of domestic shipping operations; and (f) encourage the development of a viable shipbuilding and ship repair industry to support the expansion and modernization of the Philippine domestic merchant marine fleet and its strict adherence to safety standards which will ensure the seaworthiness of all sea-borne structures.
Definition of Terms.
Section 3
SEC. 3. Definition of Terms. — As used in and for purposes of this Act, the following terms, whether in singular or plural, are hereby defined as follows: “Domestic Shipping” shall mean the transport of passengers or cargo, or both, by ships duly registered and licensed under Philippine law to engage in trade and commerce between Philippine ports and within Philippine territorial or internal waters, for hire or compensation, with general or limited clientele, whether permanent, occasional or incidental, with or without fixed routes, and done for contractual or commercial purposes; “Domestic Trade” shall mean the sale, barter or exchange of goods, materials or products within the Philippines; “Domestic Ship Operator” or “Domestic Ship Owner” may be used interchangeably and shall mean a citizen of the Philippines, or a commercial partnership wholly owned by Filipinos, or a corporation at least sixty percent (60%) of the capital of which is owned by Filipinos, which is duly authorized by the Maritime Industry Authority (MARINA) to engage in the business of domestic shipping; “Shipper” shall mean any person, partnership or corporation who shall procure for itself the services of a domestic ship operator for the carriage of its cargo in the domestic trade upon payment of proper compensation; “MARINA” shall mean the Maritime Industry Authority; “Ship” or “Vessel” may be used interchangeably and shall mean any kind, class or type of craft or artificial contrivance capable of floating in water, designed to be used, or capable of being used, as a means of water transport in the domestic trade for the carriage of passengers or cargo, or both, utilizing its own motive power or that of another; “Importation” shall mean the direct purchase, lease or charter of newly constructed or previously owned ships, or the purchase of ship's spare parts form foreign sources or from registered enterprises operating in special economic zones as this term is defined in Republic Act No. 7916 entitled, “The Special Economic Zone Act of 1995;” “Spare parts” shall mean the replacement parts or components of a vessel, including but not limited to its hull, engines, machineries, equipment, appurtenances, necessaries accessories, articles, supplies, materials, steel plates, aluminum plates, other metal plates, communications equipment, and other parts or components thereof, installed aboard the ship necessary for its safe and efficient navigation and operation; “Certificate of Public Convenience” shall mean the license or authority issued by MARINA to a domestic ship operator to engage in domestic shipping; “Cargo handling equipment” shall mean any machinery, gear or equipment used by the ship operator or a duly authorized and licensed port operator to service or handle cargo, on board the vessel, at the pier, or in the terminal or container yard such as, but not limited to, cranes, forklifts, top lifts, stackers, tractor heads, containers, pallet boards, and the like, including all spare parts, replacement parts, appurtenances, accessories, articles, supplies and materials thereof; “Shipbuilding” shall mean the design, construction, launching and outfitting of all types of ships and watercraft; “Ship repair” shall mean the overhaul, refurbishment, renovation, improvement, or alteration of the hull, machineries, equipment, outfits and components of all types of ships; “Shipyard” shall mean the shipbuilding or repair facilities which have the capability to lift vessels above the waterline in order to effect ship work on vessels, appendages, structure, machinery and equipment; and “Shipbuilder” or “Ship repairer” shall mean a citizen of the Philippines, or a commercial partnership owned by majority of Filipinos, or a corporation incorporated under the laws of the Philippines, the capital of which is owned or controlled in any proportion by Filipinos or by foreign nationals, or by both such Filipinos or foreign nationals, or by corporations whether Filipino or foreign-owned, which is duly authorized by the MARINA to engage in the business of shipbuilding or ship repair or to otherwise operate a shipyard, graving dock or marine repair yard. CHAPTER IIINVESTMENT INCENTIVES
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