MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1466
A DECREE AMENDING PRESIDENTIAL DECREE NO. 894, AS AMENDED
WHEREAS, it has been declared a national policy to accord high priority to the development of the country's maritime and air transport industries;
WHEREAS, Presidential Decree No. 806 was promulgated in recognition of the important role that overseas shipping plays in the economic development of the country;
WHEREAS, Presidential Decree No. 894, as amended by Presidential Decree Nos. 917 and 962, was promulgated to conserve the country's foreign exchange, promote the growth and development of the Philippines' overseas air and water transport industries, and to enhance national self-reliance in the transport of passengers and cargoes;
WHEREAS, it is necessary to align the provisions of Presidential Decree No. 894, as amended, with the equal cargo-sharing concept contained in Presidential Decree No. 806; and
WHEREAS, there is need for a more effective mechanism to implement the provisions of these Decrees.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,...
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Presidential Decrees
A Decree Amending Presidential Decree No. 894, As Amended
Presidential Decree No. 1466
Summary of Presidential Decree No. 1466
Definitions:
- "Philippine flag air carriers" refers to aircraft registered in the Philippines and operated by Philippine citizens or entities owned/controlled by Philippine citizens. (Section 1)
- "Philippine flag vessels" refers to vessels registered in the Philippines and owned/controlled/chartered by Philippine citizens or entities owned/controlled by Philippine citizens. (Section 1)
Mandatory Use of Philippine Flag Carriers:
- Government offices, agencies, instrumentalities, and government-owned/controlled corporations must use Philippine flag air carriers and/or vessels for transportation of persons or export/import cargoes paid from Philippine government funds. (Section 2)
- Persons, partnerships, corporations, or entities granted a loan, credit, or obligation guaranteed by the government or its financial institutions must use Philippine flag air carriers and/or vessels for transportation of persons and export/import cargoes paid from such loans, credit, or guarantees. (Section 3)
Implementing Agencies:
- The Civil Aeronautics Board and the Freight Booking and Cargo Consolidation Center of the Philippine Shippers' Council are the central implementing agencies for air and sea-borne transport aspects, respectively. (Section 4)
Waivers:
- The Civil Aeronautics Board or the Freight Booking and Cargo Consolidation Center may grant waivers in the following instances: (Section 5)
- When suitable Philippine flag carriers or vessels are not available at reasonable freight rates and within a reasonable period of time.
- When an international agreement or convention adhered to by the Philippine government provides otherwise.
- On the basis of reciprocity, when a foreign country grants similar treatment to Philippine flag carriers or vessels.
- In the case of export commodity groups determined as exempted by the Philippine Export Council.
- When the national interest requires it.
- Waivers may be delegated to Philippine consular offices abroad or authorized organizations.
Implementing Rules and Regulations:
- The Secretaries of Trade and Tourism, in consultation with relevant agencies, shall promulgate the necessary implementing rules and regulations within 90 days from the approval of this Decree. (Section 6)
Disallowance of Payment:
- The Chairman of the Commission on Audit shall disallow payment of passenger fare or cargo freight on any foreign flag air carrier or vessel in the absence of a waiver. (Section 7)
Penalties and Sanctions:
- Violation of Sections 2 and 3, and implementing rules and regulations, shall be punished by a fine not exceeding the cost of freight but not less than P5,000.00. (Section 8)
- Government offices, financing institutions, and implementing agencies shall adopt administrative sanctions and measures to ensure compliance. (Section 8)
Appropriations:
- P150,000.00 is initially appropriated to the Civil Aeronautics Board and the Freight Booking and Cargo Consolidation Center for operational expenses in implementing this Decree. (Section 9)
- Adequate funds shall be included in the national budget thereafter.
Repealing Clause and Effectivity:
- All laws, decrees, orders, rules and regulations inconsistent with this Decree are repealed or modified accordingly. (Section 10)
- This Decree shall take effect upon issuance of the implementing rules and regulations. (Section 11)
Definitions:
- "Philippine flag air carriers" refers to aircraft registered in the Philippines and operated by Philippine citizens or entities owned/controlled by Philippine citizens. (Section 1)
- "Philippine flag vessels" refers to vessels registered in the Philippines and owned/controlled/chartered by Philippine citizens or entities owned/controlled by Philippine citizens. (Section 1)
Mandatory Use of Philippine Flag Carriers:
- Government offices, agencies, instrumentalities, and government-owned/controlled corporations must use Philippine flag air carriers and/or vessels for transportation of persons or export/import cargoes paid from Philippine government funds. (Section 2)
- Persons, partnerships, corporations, or entities granted a loan, credit, or obligation guaranteed by the government or its financial institutions must use Philippine flag air carriers and/or vessels for transportation of persons and export/import cargoes paid from such loans, credit, or guarantees. (Section 3)
Implementing Agencies:
- The Civil Aeronautics Board and the Freight Booking and Cargo Consolidation Center of the Philippine Shippers' Council are the central implementing agencies for air and sea-borne transport aspects, respectively. (Section 4)
Waivers:
- The Civil Aeronautics Board or the Freight Booking and Cargo Consolidation Center may grant waivers in the following instances: (Section 5)
- When suitable Philippine flag carriers or vessels are not available at reasonable freight rates and within a reasonable period of time.
- When an international agreement or convention adhered to by the Philippine government provides otherwise.
- On the basis of reciprocity, when a foreign country grants similar treatment to Philippine flag carriers or vessels.
- In the case of export commodity groups determined as exempted by the Philippine Export Council.
- When the national interest requires it.
- Waivers may be delegated to Philippine consular offices abroad or authorized organizations.
Implementing Rules and Regulations:
- The Secretaries of Trade and Tourism, in consultation with relevant agencies, shall promulgate the necessary implementing rules and regulations within 90 days from the approval of this Decree. (Section 6)
Disallowance of Payment:
- The Chairman of the Commission on Audit shall disallow payment of passenger fare or cargo freight on any foreign flag air carrier or vessel in the absence of a waiver. (Section 7)
Penalties and Sanctions:
- Violation of Sections 2 and 3, and implementing rules and regulations, shall be punished by a fine not exceeding the cost of freight but not less than P5,000.00. (Section 8)
- Government offices, financing institutions, and implementing agencies shall adopt administrative sanctions and measures to ensure compliance. (Section 8)
Appropriations:
- P150,000.00 is initially appropriated to the Civil Aeronautics Board and the Freight Booking and Cargo Consolidation Center for operational expenses in implementing this Decree. (Section 9)
- Adequate funds shall be included in the national budget thereafter.
Repealing Clause and Effectivity:
- All laws, decrees, orders, rules and regulations inconsistent with this Decree are repealed or modified accordingly. (Section 10)
- This Decree shall take effect upon issuance of the implementing rules and regulations. (Section 11)