M a n i l a



WHEREAS, the promotion and maintenance of the Philippine ship repair industry is a major government program that deserves priority attention;

WHEREAS, the Maritime Industry Authority has been tasked to enhance domestic capability for ship repair and maintenance;

WHEREAS, repairs undertaken abroad entail payment in foreign currency, thereby resulting to the depletion of the country's foreign exchange reserves;

WHEREAS, in furtherance thereof, it is imperative to ensure that, as far as practicable, all activities relating to the repairs, alteration, improvement, modification, re-conditioning, conversion or drydocking of Philippine owned and/or registered vessels be undertaken by local shipyards.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby order and decree the following as part of the law of the land:

Section 1. The policies and objectives declared in Presidential Decrees Nos. 474, 666, 878 and 1059 for the shipbuilding and ship repair industry are hereby reiterated and made an integral part of this Decree.

Section 2. All Philippine-owned and/or registered vessels shall undertake all repairs, improvement, alteration, reconditioning, conversion or drydocking with MARINA-registered ship repair years, provided that the Maritime Industry Authority may exempt any such vessel from this requirement in any of the following cases:

1. When as a result of collision, grounding, heavy weather, breakdowns and other perils of the sea occurring abroad, the vessel suffers damages necessitating emergency and/or extraordinary repairs, and it is impracticable that such vessel be brought to the Philippines for the needed repairs;

2. When on account of existing prior commitments or due to inadequacy or lack of service facilities of MARINA-registered ship repair yards, as determined by the Maritime Industry Authority, the repairs or works sought to be undertaken on the vessel cannot be accommodated by such ship repair yards;

3. When the Philippines is not one of the vessel's ports of call, in which case a waiver from the said requirement must be obtained from the Maritime Industry Authority;

4. All other meritorious cases as may be determined by the Maritime Industry Authority.

Section 3. The Maritime Industry Authority shall promulgate rules and regulations together with the procedures and guidelines for the proper and efficient implementation of the above provisions.

Section 4. Any violation of this Decree or the Rules and Regulations which shall be issued pursuant thereto shall result in the cancellation of the Certificate of Philippine Registry of the vessels or payment of a fine not exceeding FIVE THOUSAND PESOS (P5,000.00), for vessels engaged in domestic trade and TEN THOUSAND PESOS (P10,000.00), for vessels engaged in overseas trade, or both such cancellation and fine, at the discretion of the Maritime Industry Authority.

Section 5. Any provision of law, decree, executive order, or rules and regulations inconsistent with this Decree is hereby repealed or modified accordingly.

Section 6. This Decree shall take effect immediately.

Done in the City of Manila, this 17th day of October, in the year of Our Lord, nineteen hundred and seventy-seven.

The Lawphil Project - Arellano Law Foundation