THE Philippines' Maritime Industry Authority (MARINA) will allow foreign nationals to engage in domestic shipping, according to Memorandum Circular No DS-2023-02, reports Manila's PortCalls.
The measure outline guidelines for domestic shipping as a public service under Republic Act 11659 RA 11659, and in doing so eases foreign ownership restrictions in sectors classified as a public service, which includes the shipping industry.
MARINA Memorandum Circular (MC) No DS-2023-02 prescribes the guidelines for domestic shipping as a public service based on Republic Act (RA) No 11659 or the Amended Public Service Act.
Under RA 11659, signed in March 2022, industries not classified as public utilities are not subject to the 60-40 per cent ownership required under the Constitution.
With domestic shipping one of the sectors now designated as a public service, the industry is now effectively open to 100 per cent foreign ownership.
The MARINA circular takes effect 15 days after its publication on November 13.
MC DS-2023-02 aligns with the implementing rules and regulations (IRR) of RA 11659 directing government agencies to revise their rules within six months upon effectivity of the IRR.
The circular revised rules for accrediting domestic shipping operators and entities, amending MC 2006-03 and addressing inconsistent memos and orders.
MC DS-2023-02 applies to Filipino and foreign individuals or entities investing in the operation of Philippine-flagged vessels in the country s waters. It excludes cooperatives, which must be 100 per cent Filipino-owned.
Foreign enterprises with a franchise or Certificate of Public Convenience (CPC) may operate domestic shipping services, provided they register with MARINA and adhere to specific conditions for personal and business transportation of passengers and cargo.
Incentives for foreign investors are available, subject to government agency policies. All Philippine-flagged ships must have Filipino crews, except when no qualified national is available.
MARINA can ask the National Economic and Development Authority (NEDA) to reclassify domestic shipping from public service to public utility after five years of effectivity of RA 11659.
If NEDA agrees, the President can propose to Congress reclassification as a critical infrastructure under the IRR of RA 11659, considering specific criteria.
SeaNews Turkey
The measure outline guidelines for domestic shipping as a public service under Republic Act 11659 RA 11659, and in doing so eases foreign ownership restrictions in sectors classified as a public service, which includes the shipping industry.
MARINA Memorandum Circular (MC) No DS-2023-02 prescribes the guidelines for domestic shipping as a public service based on Republic Act (RA) No 11659 or the Amended Public Service Act.
Under RA 11659, signed in March 2022, industries not classified as public utilities are not subject to the 60-40 per cent ownership required under the Constitution.
With domestic shipping one of the sectors now designated as a public service, the industry is now effectively open to 100 per cent foreign ownership.
The MARINA circular takes effect 15 days after its publication on November 13.
MC DS-2023-02 aligns with the implementing rules and regulations (IRR) of RA 11659 directing government agencies to revise their rules within six months upon effectivity of the IRR.
The circular revised rules for accrediting domestic shipping operators and entities, amending MC 2006-03 and addressing inconsistent memos and orders.
MC DS-2023-02 applies to Filipino and foreign individuals or entities investing in the operation of Philippine-flagged vessels in the country s waters. It excludes cooperatives, which must be 100 per cent Filipino-owned.
Foreign enterprises with a franchise or Certificate of Public Convenience (CPC) may operate domestic shipping services, provided they register with MARINA and adhere to specific conditions for personal and business transportation of passengers and cargo.
Incentives for foreign investors are available, subject to government agency policies. All Philippine-flagged ships must have Filipino crews, except when no qualified national is available.
MARINA can ask the National Economic and Development Authority (NEDA) to reclassify domestic shipping from public service to public utility after five years of effectivity of RA 11659.
If NEDA agrees, the President can propose to Congress reclassification as a critical infrastructure under the IRR of RA 11659, considering specific criteria.
SeaNews Turkey
