Ship Registration in the Philippines: MARINA Rules and Requirements

The Maritime Industry Authority (MARINA) is the agency that registers vessels in the Philippines. Under Section 10 of Republic Act No. 9295, the Domestic Shipping Development Act of 2004, MARINA has the power and authority to register vessels. Registration is the first step for any shipowner who wants a vessel to engage in trade and commerce between Philippine ports and within Philippine territorial or internal waters. Before a vessel can carry passengers or cargo for hire, the operator must also obtain a Certificate of Public Convenience from MARINA. This article explains who may register, what the law requires, and the steps to follow.

Who may register and operate a domestic vessel

Section 5 of RA 9295 is clear: no franchise, certificate, or any other form of authorization for the carriage of cargo or passengers, or both, in the domestic trade shall be granted except to domestic ship owners or operators.

A "Domestic Ship Operator" or "Domestic Ship Owner" is defined in Section 3 as 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 Filipino-ownership policy appears in Section 2, which declares that the Philippines needs a domestic merchant fleet owned and controlled by Filipinos or by corporations at least sixty percent (60%) of the capital of which is Filipino-owned.

The Certificate of Public Convenience

Registration alone does not authorize commercial operation. Section 3 defines a Certificate of Public Convenience as the license or authority issued by MARINA to a domestic ship operator to engage in domestic shipping.

Under Section 7, MARINA issues these certificates to qualified domestic ship operators, 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 safe, reliable, adequate, efficient, and economic service.

Every applicant must 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.

Section 10 provides that no Certificate of Public Convenience shall be valid for a period of more than twenty-five (25) years. MARINA may also modify, suspend, or revoke, upon notice and hearing, any certificate, license, or accreditation it has issued.

Classification and retirement requirements

Two requirements apply to vessels themselves.

First, under Section 22, all vessels — whether newly built or previously owned — 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.

Second, Section 23 directs MARINA to prepare and implement a mandatory vessel retirement program for all unclassed vessels that fail to meet classification standards. Vessels that have reached the maximum age under that program and do not carry a class certificate shall not be allowed to operate in the domestic trade and shall be automatically de-listed from the Philippine Registry.

Safety, manning, and insurance

Registration carries continuing obligations.

Under Section 9, all vessels operated by domestic ship operators must at all times be in seaworthy condition, properly equipped with adequate life-saving, communication, safety, and other equipment, operated and maintained according to MARINA standards, and manned by duly licensed and competent crew. MARINA has the power to inspect vessels and all equipment on board to ensure compliance.

Section 14 requires every domestic ship operator to submit annual proof of adequate insurance coverage for passengers and cargo, computed according to existing laws, rules, and regulations. Where an operator runs more than one vessel, the coverage for purposes of proving financial capacity is based on the largest operating vessel, and the total required coverage shall not exceed the value of that vessel. Insurance must be obtained from a duly licensed insurance company or an international protection and indemnity association.

Incentives for registered operators

RA 9295 grants incentives to qualified domestic ship operators, including exemption from value-added tax on the importation and local purchase of passenger and/or cargo vessels of one hundred fifty (150) tons and above, including engines and spare parts, subject to age limits: fifteen (15) years for passenger and/or cargo vessels, ten (10) years for tankers, and five (5) years for high-speed passenger crafts.

The law also provides net operating loss carry-over and accelerated depreciation. These incentives are subject to conditions in Section 4, including prior MARINA approval of the importation.

Frequently asked questions

Who registers ships in the Philippines? MARINA. Section 10 of RA 9295 expressly grants MARINA the power and authority to register vessels.

Can a foreign-owned company operate a domestic vessel? No. Under Section 5, authority to operate in the domestic trade is granted only to domestic ship owners or operators, meaning Filipino citizens, Filipino-owned partnerships, or corporations at least sixty percent (60%) of whose capital is Filipino-owned.

How long is a Certificate of Public Convenience valid? No such certificate shall be valid for more than twenty-five (25) years under Section 10 of RA 9295.

Practical takeaways

• Register with MARINA first. MARINA has the express power to register vessels under Section 10 of RA 9295.
• Confirm Filipino ownership. Only domestic ship owners or operators may be granted authority to operate in the domestic trade.
• Secure a Certificate of Public Convenience. Registration does not by itself authorize commercial operation; the certificate is required and is valid for not more than 25 years.
• Class the vessel and watch the retirement rules. Vessels must be classed by a government-recognized classification society, and unclassed vessels may be de-listed from the Philippine Registry.
• Maintain seaworthiness, manning, and insurance. These are continuing obligations, and MARINA may inspect vessels and impose fines, suspend, or revoke certificates for violations.

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

• MARINA MEMORANDUM CIRCULAR NO. 87, September 15, 1994

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