Domestic Shipping License Philippines: How to Get a MARINA Certificate of Public Convenience

To operate a domestic shipping business in the Philippines, the vessel and its operator must be registered and licensed by the Maritime Industry Authority (MARINA). The license that authorizes a domestic ship operator to engage in domestic shipping is the Certificate of Public Convenience (CPC). Under Republic Act No. 9295, the Domestic Shipping Development Act of 2004, no franchise, certificate, or other authorization to carry cargo or passengers in the domestic trade may be granted except to qualified domestic ship owners or operators. The path to a license runs through MARINA: qualify as an operator, apply for a CPC, register the vessel, and maintain safety, insurance, and manning standards.

Who may apply for a domestic shipping license

Under Section 3 of RA 9295, a domestic ship operator or domestic ship owner is a citizen of the Philippines, a commercial partnership wholly owned by Filipinos, or a corporation at least sixty percent (60%) of the capital of which is owned by Filipinos, duly authorized by MARINA to engage in domestic shipping.

The same law defines domestic shipping as the transport of passengers or cargo, or both, by ships registered and licensed under Philippine law, engaged in trade between Philippine ports and within Philippine territorial or internal waters, for hire or compensation, with a general or limited clientele, with or without fixed routes.

A Certificate of Public Convenience is defined as the license or authority issued by MARINA to a domestic ship operator to engage in domestic shipping.

What the application must state

Section 7 of RA 9295 requires every domestic ship operator to state in its application the route it proposes to serve and the service it proposes to offer. Operators who do not intend to operate on a fixed route must still state the service they propose to offer.

MARINA issues CPCs to qualified domestic ship operators after considering the economic and beneficial effect of the proposed service on the port, province, or region to be served, and the operator's financial capacity to provide and sustain safe, reliable, adequate, efficient, and economic service.

Step-by-step: the licensing path

1. Qualify as an operator. Confirm that the applicant meets the Filipino ownership requirement under Section 3 of RA 9295.
2. Apply with MARINA for a Certificate of Public Convenience. State the proposed route or service, as required by Section 7.
3. Register the vessel with MARINA. Section 10 gives MARINA the power to register vessels.
4. Class the vessel. Under Section 22, all vessels acquired on or after the effectivity of RA 9295 must be classed by a government-recognized classification society on the date of acquisition, prior to operation in the domestic trade.
5. Secure compulsory insurance. Section 14 requires adequate insurance coverage for each passenger and for cargo, computed according to existing laws, rules, and regulations, and obtained from a duly licensed insurance company or international protection and indemnity association.
6. Comply with safety and manning standards. Section 9 requires all vessels to be seaworthy, properly equipped with life-saving, communication, and safety equipment, maintained per MARINA standards, and manned by duly licensed and competent crew.

How long a license is valid

Under Section 10 of RA 9295, a certificate of public convenience issued by MARINA shall not be valid for a period of more than twenty-five (25) years. MARINA may also modify, suspend, or revoke any certificate, license, or accreditation it issued, upon notice and hearing.

What happens if you operate without a license

Section 16 lists operating without a valid certificate of public convenience, accreditation, or other required authority as a prohibited act. Under Section 18, MARINA may, after notice and hearing, suspend or revoke the authority issued and impose a fine on an operator who operates without a valid CPC or other authority.

The same penalties may apply for refusing to carry passengers or cargo without just cause, failing to maintain vessels in safe and serviceable condition, failing to obtain or maintain adequate insurance, and failing to meet safe manning requirements.

Foreign vessels and special permits

Section 6 of RA 9295 provides that no foreign vessel may transport passengers or cargo between ports or places within Philippine territorial waters, except upon the grant of a Special Permit by MARINA when no domestic vessel is available or suitable to provide the needed shipping service and public interest warrants it.

Frequently asked questions

What is the license for domestic shipping in the Philippines? It is the Certificate of Public Convenience issued by MARINA to a domestic ship operator to engage in domestic shipping, as defined under Section 3 of RA 9295.

Who can own a domestic shipping operator in the Philippines? A Filipino citizen, a commercial partnership wholly owned by Filipinos, or a corporation at least sixty percent (60%) of the capital of which is owned by Filipinos, as provided in Section 3 of RA 9295.

How long is a MARINA certificate of public convenience valid? Under Section 10 of RA 9295, no certificate of public convenience shall be valid for more than twenty-five (25) years.

Practical takeaways

• The domestic shipping license is the Certificate of Public Convenience issued by MARINA under RA 9295.
• Only Filipino citizens, wholly Filipino-owned partnerships, or corporations at least 60% Filipino-owned may qualify as domestic ship operators.
• Applications must state the proposed route or service and demonstrate financial capacity.
• Vessels must be registered, classed, insured, seaworthy, and manned by licensed crew.
• Operating without a valid CPC exposes the operator to fines, suspension, or revocation after notice and hearing.

Primary sources

The rules discussed above are drawn from the following primary sources, as published in the Official Gazette and the national statute book.

• IRR of REPUBLIC ACT NO. 10635 - 2022 IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT 10635, "ACT ESTABLISHING THE MARINA AS THE SINGLE MARITIME ADMINISTRATION RESPONSIBLE FOR THE IMPLEMENTATION AND ENFORCEMENT OF THE INTERNATIONAL CONVENTION ON STANDARDS OF TRAINING, CERTIFICATION AND WATCHKEEPING FOR SEAFARERS, 1978, AS AMENDED, AND INTERNATIONAL AGREEMENTS OR COVENANTS RELATED THERETO:

• REPUBLIC ACT NO. 9295 - AN ACT PROMOTING THE DEVELOPMENT OF PHILIPPINE DOMESTIC SHIPPING, SHIPBUILDING, SHIP REPAIR AND SHIP BREAKING, ORDAINING REFORMS IN GOVERNMENT POLICIES TOWARDS SHIPPING IN THE PHILIPPINES, AND FOR OTHER PURPOSES

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.