AN ACT ALLOWING FOREIGN VESSELS TO TRANSPORT AND CO-LOAD FOREIGN CARGOES FOR DOMESTIC TRANSSHIPMENT AND FOR OTHER PURPOSES

Sixteenth Congress
Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-eighth day of July, two thousand fourteen.

REPUBLIC ACT NO. 10668

AN ACT ALLOWING FOREIGN VESSELS TO TRANSPORT AND CO-LOAD FOREIGN CARGOES FOR DOMESTIC TRANSSHIPMENT AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Declaration of Policy. – It is the policy of the State:

Section 2. Definition of Terms. – As used in this Act:

Section 3. Scope. – This Act shall apply exclusively to foreign vessels carrying foreign container vans or foreign cargoes.

Section 4. Carriage of a Foreign Cargo by a Foreign Vessel. – A foreign vessel:

For purposes of this Act, an empty foreign container van going to or coming from any Philippine port, or going to or coming from a foreign port, and being transshipped between two (2) Philippine ports shall be allowed.

Section 5. Authority of the Commissioner of Customs. – The Commissioner of Customs, upon such reasonable conditions as may be imposed, may do the following acts:

Provided, That such acts shall not diminish or impair any existing and valid government contract covering the handling of import and export cargo: Provided, further, That the Commissioner of Customs shall have the authority to impose penalties to foreign ship operators found to have violated any provision of this Act and to take measures to address illegal activities, including smuggling.

Section 6. Application of the Carriage of Goods by Sea Act. – Carriage conducted in accordance with this Act shall be governed by Commonwealth Act No. 65, otherwise known as the "Carriage of Goods by Sea Act" with respect to the liability of the carrier for the loss of, or damage to, goods carried.

Section 7. Carriage by Foreign Vessels Not a Public Service, Foreign Vessels Not Common Carriers. – Foreign vessels engaging in carriage conducted in accordance with this Act shall not be considered common carriers as provided in Republic Act No. 386, otherwise known as the "Civil Code of the Philippines"; neither shall such foreign vessels be considered as offering a public service and thus shall fall outside the coverage of Republic Act No. 9295, otherwise known as the "Domestic Shipping Development Act of 2004".

Section 8. Prohibitions. – Foreign ship operators shall submit their cargo manifest to the Port Authorities to ensure that no domestic cargoes are carried by the foreign ship. No foreign vessel shall be allowed to carry any domestic cargo or domestic container van, whether loaded or empty, even if such domestic container van may contain foreign cargo.

Section 9. Fines and Penalties. – The Bureau of Customs, upon due notice, hearing and determination of the existence of any breach or violation of the provisions of this Act or any rule and regulation issued pursuant thereto, shall impose a penalty or fine on any erring foreign ship operator in accordance with applicable provisions of the Tariff and Customs Code of the Philippines and other related laws.

Section 10. Implementing Rules and Regulations. – Within sixty (60) days from the approval of this Act, the Department of Finance, the Bureau of Customs, the Department of Trade and Industry, the Bureau of Immigration, and all Port Authorities, shall promulgate such rules and regulations necessary for the effective implementation of this Act.

Section 11. Separability Clause. – If any provision of this Act is subsequently declared invalid or unconstitutional, other provisions hereof which are not affected thereby shall remain in full force and effect.

Section 12. Repealing Clause. – Section 1009 of Presidential Decree No. 1464, otherwise known as the "Tariff and Customs Code of 1978" and all laws, decrees, orders, rules and regulations, and other issuances, or parts thereof, inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 13. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

Approved,

This Act which is a consolidation of Senate Bill No. 2486 and House Bill No. 5610 was finally passed by the Senate and the House of Representatives on June 9, 2015.

Approved: JUL 21 2015

(Sgd.) BENIGNO S. AQUINO III
President of the Philippines