Waiver of PH Flag vessel requirement (PD1466)

[responsivevoice_button voice=”US English Female” buttontext=”Listen to Post”]

Presidential Decree 1466 and its Implementing Rules .

List of Philippine flag vessels operating overseas .

  • Presidential Decree No. 1466 (PD 1466) requires that the export or import of cargo paid from the proceeds of loans, credits or guarantees made by Philippine government financial institutions must be carried by Philippine flag vessels unless the importer or exporter applies and is granted a waiver.
  • Procedure by appearing before the Consular Officer :
  1. Fill up Waiver-Non Availability of Philippine Flag Vessel – Form in triplicate;
  2. Pay fee of $20.00 in cash, cashier’s check or postal money order payable to the Consulate; and
  3. Upon approval one copy will be given to the applicant while the other two copies will be sent through DFA to the DTI-Fair Trade and Enforcement Bureau and the Bureau of Customs.
  • For more information contact the DTI-Fair Trade and Enforcement Bureau at +632 890 4892 or email fteb_blad@dti.gov.ph 
  • Note that the Philippine Consul General, Deputy Consul General, Consul or Vice Consul are authorized to grant the waiver  only in the following instances:

A. When the services of a suitable Philippine Flag vessel are not available at reasonable freight rates and within a reasonable period of (Rule IX A.1):

  • When there is no Philippine flag vessel suitable to carry a particular type of cargo or operating on a specific liner route, an appropriate blanket waiver may be granted by the Freight Center.
  • In determining the suitability of the vessel for the carriage of a particular shipment, the following factors shall be applied: (1) type, including cargo- handling facilities aboard; (2) transit time; and (3) operating situation, of the vessel.
  • Availability within a “reasonable period of time” shall mean that the vessel will be ready to load within ten days from the date the cargo is ready for loading.
  • The reasonableness of the freight rates of the Philippine flag vessel concerned shall be determined as applied to a specific shipment. The rates it charges for the shipment shall be competitive with the total net freight charges of the foreign flag vessel which is available at the same time as the Philippine flag vessel and which is proposed to be used instead.
  • In the case of liner service, “freight rates” shall refer to the total net amount to be paid to the shipping line concerned for the transport of the shipment. This amount shall include, in addition to the base rate charge, all applicable surcharges like bunker and currency surcharges, transshipment additional and heavy-lift surcharge, but excluding cargo insurance and port congestion surcharge. In case the shipment is on a through-bill of lading, involving combined water-and-land transport to final destination, “freight rates” shall refer to total freight cost of the water-and-land transport.
  • In case of chartered vessels, such as on voyage or time basis, the reasonableness of the “freight rates” shall be determined by comparing not only the charter hire or rate per ton/day/month but also the other terms and condition in the relevant charter parties.

B. Rule IX A.4

  • In the case of export commodity groups, determined as exempted by the governing council of the Philippine Export Council. A. The Governing Council shall advise the Freight Center which export commodity groups it had determined as exempted and the conditions and reasons therefor, soon after it had so determined. B. “Export commodity groups” means (a) a specific group of commodity for export; and not to broad classifications such as textiles, handicrafts or construction materials, nor to the individual exporters or group of exporters; and (b) for export to a specific country or area, such as U.S. Pacific Coast, Japan, Western Europe and the Middle East.