Trading restrictions imposed against the Philippines
Trading restrictions imposed by the Philippines
Based on existing Philippine government regulations, vessels flying under Philippine flag and registered in the Philippines are exclusive carriers of all shipments by Philippine government such as coal, rice, etc. from foreign ports to Philippine ports. However, due to shortage of Philippine tonnage, the Philippine government has allowed foreign flag vessels to carry these cargoes subject to unavailability of Philippine flag vessels at time of shipment at load ports and owners/operators of foreign flag vessels are required to obtain flag waiver apporval from government authorities concerned.
Quote of Presidential decree on "Flag Waiver":
In compliance with PD 1466, all shipments by the Philippine government shall be made on board vessels of Philippine registry or vessels which are chartered by Philippine citizens or by a corporation or entity owned or controlled by a citizen of the Philippines. If no Philippine flag vessel is available at a resonable freight rate within ten (10) days after the cargo is ready for shipment, said shipment may be made on any vessel, provided that the prescribed waiver is secured by the supplier from the Philippine Shippers Bureau at least fifteen (15) calendar days before date of laoding by the foreign flag vessel.
The application for flag waiver shall be filed complete with all the necessary data and information at least fifteen (15) calendar days before arrival at loading port of the foreign flag vessel to be chartered.
The application for waiver shall be filed by importer or exporter with the office of the Philippine Shippers Bureau, Department of Trade and Industries, Manila.
Upon receipt by Philippine Shippers Bureau, they will contact all Philipino shipowners if there is Philippine flag vessel available/suitable to carry said cargo and can meet required laycan. If none, waiver shall be approved. In case there will be available Philippine flag vessel, same will be recommened to the charterers for negotiation and acceptance. Should negotiation fail for any reason, Philippine shipowner notifies Philippine Shippers Bureau: waiver shall be approved.
Following schedule of fines and penalties for violation or failure to secure flag waiver:
- First violation - PHP 50,000
- Second violation - PHP 100,000
- Third violation - PHP 200,000
- Fouth violation - PHP 300,000
- Fifth and succeeding violation - PHP 500,000
See also United Nations Security Council Resolutions