-- -------- -------- - -----

Republic of the Philippines

Department of Transportations and Communication
MARITIME INDUSTRY AUTHORITY
TridaBuilding, Taft Avenue corner T.M. Kalaw, Ermita, Manila

I MARINA CIRCULAR NO. 2015 - ~

. Series of 2015

: TO : ALL DOMESTIC SHIPOWNERS, OPERATORS, SHIPMANAGERS,

CHARTERERS AND ALL OTHERS CONCERNED

SUBJECT: REVISED RULES AND REGULATIONS TO IMPLEMENT A SAFETY

MANAGEMENT SYSTEM FOR DOMESTIC SHIPPING

Pursuant to Presidential Decree No. 474, Executive Oder No. 125/125-A, and
Republic Act No. 9295 and its Implementing Rules and Regulations (IRR), as
amended, and in order to enhance safe operations of ships and to prevent marine
pollution, the following revised regulations are hereby adopted:

I. OBJECTIVES

1. Promote the safety of life and property at sea and the prevention of damage
to the marine environment;

2. Ensure compliance with globally recommended and mandatory codes,

guidelines and standards including those prescribed by relevant national
government authorities relating to the issue of maritime safety and marine
pollution measures;

3. Enable companies to achieve and maintain high standards of safety and

marine environment protection through safe practices in ship operation and
safe working environment; establishing of safeguards against identified
risks; and, continuous improvement of safety management skills of
personnel ashore and aboard ships, including preparation for emergencies
related to both safety and marine environment protection;

4. Rationalize MARINA Circulars relating to the implementation of Safety

Management Systems (SMS) of companies engaged in domestic shipping;

11. COVERAGE AND EXEMPTIONS

1. This Circular shall apply to all ships, whenever operating in Philippine

waters:

.1 Passenger high speed crafts;

.2 Passenger-carrying ships 50 GT and above;
.3 Oil tankers, chemical tankers and gas carriers;
.4 Bulk carriers;
.5 Cargo ships 50 GT and above;
.6 Tugboats, whenever pulling/pushing non-propelled tanker barges
carrying oil products;
 .7 Fish Carriers engaged in Short International Voyages and support
tankers;
.8 Submersible Crafts including those carrying passengers;
.9 Mobile Offshore Drilling Units (MODUs); and
.10 Floating Production and Storage (FPSOs/FSUs).

2. It shall not cover the following ships:

a. Ships of primitive built;

b. Warships and naval ships;
c. Government-owned ships not engaged in commerce;
d. Ships carrying not more than twelve (12) passengers;
e. Non-propelled barges and dredgers;
f. Fishing boats/vessels;
g. Sailing ships; and
h. Pleasure crafts not engaged in commercial trading.

Ill. DEFINITIONS

1. Administration refers to the Maritime Industry Authority (MARINA);

2. Anniversary Date refers to the day and month of each year that
corresponds to the date of expiry of the relevant document or certificate.

3. Company refers to the owner of the ship or any other organization or

person such as the manager, or the bareboat charterer, who has assumed
the responsibility for operation of the ship from the ship-owner and who, on
assuming such responsibility, has agreed to take over all the duties and
responsibilities imposed by the ISM Code and the herein attached
guidelines.

4. Domestic Shipping shall mean the transport of passengers or cargo, or

both, by ships duly registered and licensed under Philippine law to engage
in trade in commerce between Philippine ports and within Philippine
territorial or internal waters, for hire or compensation, with general or limited
clientele, whether permanent, occasional or incidental, with or without fixed
routes, and done for contractual or commercial purpose.

5. Document of Compliance (DOC) refers to a document issued to a

Company which complies with the requirements of this Circular and its
guidelines

6. International Safety Management (ISM) Code refers to the International

Management Code for the Safe Operation of Ships and for Pollution
Prevention adopted by the International Maritime Organization (IMO) by
resolution A. 741 (18), as amended;

7. Primitive built ship refers to any wooden hulled ships which are not
propelled by mechanical means;

, -
 8. Recognized Organizations (RO's) refer to any organization recognized by
MARINA, such as, the members of the International Association of
Classification Societies (IACS) or organizations separately accredited by the
Administration complying with the requirements of IMO Resolution Nos.
A.739 (18) and A.789(19), as may be amended, to conduct certification
services for Philippine domestic companies and its ships.

9. Safety Management Certificate (SMC) refers to a document issued to a

ship which signifies that the Company and its shipboard management
operate in accordance with the approved Safety Management System
(SMS).

10. Safety Management System (SMS) refers to a structured and documented

system enabling the Company personnel to implement effectively the
Company safety and environmental protection policy.

11. Ship or Vessel refers to any kind, class or type of craft or artificial
contrivance capable of floating in water, designed to be used, or capable of
being used, as a means of floating in water transport in the domestic trade
for the carriage of passengers or cargo, or both, utilizing its own motive
power or that of another.

IV. GENERAL PROVISIONS

1. Every company operating any of the ships herein covered shall develop,
adopt and implement a SMS compliant with the standards set by the
Revised Guidelines on the Implementation of the International Safety
Management (ISM) Code by Companies (MSC-MEPC.7/Cirr.8) and the ISM
Code which is hereby incorporated in this Circular by reference.

2. Companies and ships presently certified under the NSM and ISM Codes
pursuant to the provisions of Memorandum Circular Nos. 159 and 143
respectively, shall comply with this Circular, upon expiration of their
relevant DOC/SMC.

3. No company/ship shall be allowed to operate without the required

DOC/SMC.

4. Where another company/entity other than the registered owner/disponent

owner has assumed operational control' and responsibility over a ship
covered under this Circular, the registered/disponent owner shall
communicate to the Administration the company/entity which shall assume
responsibility for compliance with this Circular.

5. Ships of foreign registry temporarily used in the Philippine waters on Special

Permits issued by the Administration are required to have a SMS compliant
with the ISM Code.

6. All companies and ships commencing operations after the effectivity of this
Circular and which are covered herein, are given twelve(12) months from
date of accreditation under MC No. 79/79-A or registration under Philippine
flag, to have the required DOC and SMC.

3
V. SPECIFIC PROVISIONS

1. A company with existing SMS Manual previously approved by the

Administration relative to the implementation of MC No. 143 shall no longer
be required to submit the SMS Manual for document review under this
Circular.

2. A company with an existing SMS Manual issued and approved under MC

No. 159 shall be required under this Circular to resubmit the same for
document review which must be compliant with this Circular and secure its
approval and apply for the issuance of a new DOC within a period three (3)
months reckoned from the date of expiration of its existing DOC.

3. A ship with existing SMC under MC No. 159 shall be required to be certified
after the Company have been issued its DOC as prescribed in the
preceding paragraph of herein Circular;

4. DOC and SMS shall be issued pursuant to this Circular shall be valid for a
period not exceeding five (5) years.

5. The company has the option to secure certification from either the
Administration or any Recognized Organization which has entered into a
Memorandum of Agreement (MOA) with the Administration.

6. The conduct of audit by MARINA auditors shall be guided by the Auditor's

Manual approved by the Administration.

VI. DOCUMENTARY REQUIREMENTS

1. Document Review
.1 Letter application/request
.2 SMS Manual

2. Initial Company Assessment

.1 Letter application/request
.2 Photocopy of SMS Manual approval letter

3. Initial Ship Assessment

.1 Letter application/request
.2 Photocopy of SMS Manual approval letter
.3 Photocopy of Interim DOC

4. Initial Company Audit

.1 Letter application/request
.2 Photocopy of Interim DOC
.3 Company Internal Audit Report

5. Initial Ship Audit

.1 Letter application/request
.2 Photocopy of Interim/Full-Term DOC

4
 ·3 Photocopy of Interim SMC
.4 Ship Internal Audit Report

6. Company Annual/Renewal Verification

.1 Letter application/request
.2 Photocopy of DOC
.3 Company Internal Audit Report
.4 Management Review Report

7. Ship Intermediate/Renewal Verification

.1 Letter application/request
.2 Photocopy of DOC
.3 Photocopy of SMC
.4 Ship Internal Audit Report
.5 Master's Review Report

VII. SCHEDULE OF FEES AND CHARGES

Particulars Amount
1. Document Review

1.1. 50GT-100GT P 3,000.00

1.2. Above 100 GT - 500 GT P 4,000.00
1.3. Above 500 GT - 1,000 GT . P 5,000.00
1.4. Above 1000 GT P 6,000.00

2. Full-Term DOC issued by MARINA! Interim DOC issued by ~ 7,500.00

MARINA
3. Full-Term SMC issued by MARINA! Interim SMC issued by P 7,500.00
MARINA
4. Audit conducted by MARINA
4.1 Company
a. Category I - Small (with less than 20 P29,000.00
employees)

b. Category II - Medium (between 21 to 50 employees) ~45,OOO.OO

c. Category III - Large (more than 50 employees)
4.2 Ship
a. Category I
.1 Passenger High Speed Crafts;
.2 Passenger carrying ships 50 gt and above
carrying less than 1500 passengers;
.3 Oil Tankers, Chemical Tankers and Gas Carriers;
.4 Bulk carriers;
.5 Other cargo ships;
.6 Tugboats, whenever pulling/pushing non- P30,OOO.00
propelled tanker barges carrying oil products;
.7 Fish Carriers engaged in Short International
Voyages and support tankers;
.8 Submersible Crafts including those carrying
passengers;
.9 Mobile Offshore Drilling Units (MODUs); and
5
 .10 Floating Production and Storage (FPSOs/FSUs).

b. Category"
.1 Passenqer ships carrvinq more 1500 passenqers P45,000.00
5. Additional charges for audit conducted outside work station of P 4,7001
Auditor(s) day +
amount of
fare ticket
(economy
class) per
Auditor
6. Additional Audit Same as
company &
ship audit
fee

VIII. PENALTIES AND SANCTIONS

1. Operating without a valid DOC

a. Withdrawal of all associated SMC and/or Interim SMC
b. In addition to the foregoing sanction, the following penalties shall be
imposed:

Penalty (In PhP)

Particulars
1st offense 2nd offense 3rtl offense
1.1 Category I P100,000.00 and P150,000.00 and P200,OOO.00
suspension of CPC suspension of and revocation
for 30 days(no sail CPC for three(3) ofCPC
condition until months(no sail
compliance) condition until
compliance)
1.2 Category II P200,000.00 and P250,000.00 and P300,000.00
suspension of CPC suspension of and revocation
for 30 days(no sail CPC for three(3) ofCPC
condition until months(no sail
compliance) condition until
compliance)
1.3 Category III P300,OOO.00 and P350,000.00 and P400,OOO.OO
suspension of CPC suspension of and revocation
for 30 days(no sail CPC for three(3) ofCPC
condition until months(no sail
compliance) condition until
compliance)

6
 2. Operating without a valid SMC
a. Withdrawal of SMC
b. In addition to the foregoing sanction, the following penalties shall be
imposed:

Penalty for Company (In PhP) Penalty for the Master (In PhP)
Particulars 1SIoffense 2na offense 3ra offense 1SI 2nd 3ra offense
offense offense I

1.1 Companies P300,000.00 P350,000.00 P400,000.00 Pi5,OOO.OO P20,000.00 P25,000.00

operating (no sail (no sail and and and and
ships 250gt condition condition revocation Warning suspension Cancellation
and above until until ofCPC of license of License
compliance) compliance) for 30 days

1.2 Companies 13200,000.00 13250,000.00 13300,000.00 Pi5,OOO.OO P20,000.00 P25,000.00

operating (no sail (no sail and and and and
ships 150gt condition condition revocation Warning suspension Cancellation
to 249.99gt until until ofCPC of license of License
compliance) compliance) for 30 days

1.3 Companies Pi 00,000.00 Pi50,000.00 P200,000.00 Pi5,OOO.OO P20,000.00 P25,000.00

operating (no sail (no sail and and and and
ships 50gt condition condition revocation Warning suspension Cancellation
to 149.99gt until until ofCPC of license of License
compliance) compliance) for 30 days

3. Failure to communicate to the Administration the name & details of the entity
who has assumed responsibility of complying with this Circular.

Penalty (In PhP)

Particulars
1st offense 2nd offense 3ra offense
1.1 Category I P50,000.00 and P75,000.00 and P200,000.00
warning suspension of and revocation
CPC for three(3) ofCPC
months(no sail
condition until
compliance)
1.2 Category II P75,000.00 and P100,000.00 and P125,000.00
warning suspension of and revocation
CPC for three(3) ofCPC
months(no sail
condition until
compliance)
1.3 Category" I P100,000.00 and P150,000.00 and P200,000.00
warning suspension of and revocation
CPC for three(3) ofCPC
months(no sail
condition until
compliance)
7
IX. TRANSITORY PROVISIONS

Companies which shall initially implement a SMS are given until 01 January
2017 to have the required DOC and SMC.

Existing certificates issued to companies and ships under MC Nos. 143 and
159 shall remain valid until their next scheduled renewal audit.

X. REPEALING CLAUSE

Memorandum Circular Nos. 159 and 143 are hereby repealed.

Provisions of other existing Memorandum or MARINA Circulars, Rules and

Regulations, Orders or Decisions which are inconsistent with this Circular are
hereby repealed or modified accordingly.

XI. SEPARABILITY CLAUSE

Should any provision or part of this Circular be declared by the competent

authority to be invalid or unconstitutional, the remaining provisions or parts
thereof shall remain in full force and effect and shall continue to be valid and
effective.

XII. EFFECTIVITY

This Memorandum Circular shall take effect fifteen (15) days after its
publication once in a newspaper of general circulation in the Philippines.

Manila, Philippines, 03 November 2015.

SECRETARY'S CERTIFICATE

This is to certify that MARINA Circular NO.2015-11 has been approved by the
MARINA Board in its 237th Regular Meeting held on November 03, 2015 .

A ITY VIRG~ B. CALAG

Acting Corporate Board Secretary

Published on at _
Copy filed with UP Law Center on _