EXECUTIVE ORDER NO. 213 November 28, 1994
DEREGULATING DOMESTIC SHIPPING RATES
WHEREAS, Executive Order No. 185 was issued on 28 June 1994, opening the domestic water transport industry to new Operators and investors and minimizing government intervention and control over the domestic shipping industry to attract more investments under an environment of free-market competition;
WHEREAS, Executive Order No. 185 liberalizes only the entry of vessels into liner routes but has not covered the deregulation of domestic shipping rates;
WHEREAS, there is an imperative need to deregulate domestic shipping rates by the government which prescribes such rates based on an outdated commodity classification by then Public Service Commission which is considered obsolete and unrealistic;
WHEREAS, the supply and demand in the domestic shipping industry would determine the rates of shipping services provided/availed of, as now widely practiced internationally;
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines by virtue of the powers vested in me by law, do hereby order:
Sec. 1. DEREGULATION OF PASSAGE RATES. - Passage rates are hereby deregulated...
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Executive Orders
Deregulating Domestic Shipping Rates
Executive Order No. 213
Deregulating Domestic Shipping Rates
- Passage Rates Deregulation (Sec. 1):
• First and Second Class passenger rates are deregulated for all passenger-carrying domestic vessels, provided that 50% of the passenger capacity is allocated for regulated Third Class accommodation. (Sec. 1(1))
• For tourism-oriented vessels certified by the Department of Tourism, or vessels serving tourist priority links/areas, passage rates are fully deregulated without the 50% Third Class requirement, unless operators opt for regulated rates. (Sec. 1(2))
• For vessels with only First and Second Class accommodations, or with less than 50% Third Class capacity, Second Class rates will be regulated by the Maritime Industry Authority (MARINA). (Sec. 1(3))
- Cargo/Freight Rates Deregulation (Sec. 2):
• Freight rates for commodities classified as Class "A", "B", and "C" are deregulated, except for non-containerized basic commodities whose rates will be regulated with indicative/reference rates set by MARINA. (Sec. 2(1))
• The government reserves the right to intervene in cases of unreasonably high rates, especially for basic commodities. (Sec. 2(1))
• For monopolized or cartelized routes/links, freight rates will remain regulated until a new operator provides competitive service, as determined by MARINA. (Sec. 2(2))
- Implementing Guidelines (Sec. 3):
• MARINA, in coordination with the Philippine Shipper's Bureau, will issue rules and regulations for effective implementation, including sanctions on ship owners who refuse cargo, especially basic commodities, without just cause. (Sec. 3(1))
• All government agencies are ordered to assist, coordinate, and cooperate with MARINA in implementing this Order. (Sec. 3(2))
- Repealing Clause (Sec. 4):
• This Order repeals or amends all inconsistent issuances.
- Effectivity (Sec. 5):
• This Order takes effect 15 days after publication in a newspaper of general circulation.
- Passage Rates Deregulation (Sec. 1):
• First and Second Class passenger rates are deregulated for all passenger-carrying domestic vessels, provided that 50% of the passenger capacity is allocated for regulated Third Class accommodation. (Sec. 1(1))
• For tourism-oriented vessels certified by the Department of Tourism, or vessels serving tourist priority links/areas, passage rates are fully deregulated without the 50% Third Class requirement, unless operators opt for regulated rates. (Sec. 1(2))
• For vessels with only First and Second Class accommodations, or with less than 50% Third Class capacity, Second Class rates will be regulated by the Maritime Industry Authority (MARINA). (Sec. 1(3))
- Cargo/Freight Rates Deregulation (Sec. 2):
• Freight rates for commodities classified as Class "A", "B", and "C" are deregulated, except for non-containerized basic commodities whose rates will be regulated with indicative/reference rates set by MARINA. (Sec. 2(1))
• The government reserves the right to intervene in cases of unreasonably high rates, especially for basic commodities. (Sec. 2(1))
• For monopolized or cartelized routes/links, freight rates will remain regulated until a new operator provides competitive service, as determined by MARINA. (Sec. 2(2))
- Implementing Guidelines (Sec. 3):
• MARINA, in coordination with the Philippine Shipper's Bureau, will issue rules and regulations for effective implementation, including sanctions on ship owners who refuse cargo, especially basic commodities, without just cause. (Sec. 3(1))
• All government agencies are ordered to assist, coordinate, and cooperate with MARINA in implementing this Order. (Sec. 3(2))
- Repealing Clause (Sec. 4):
• This Order repeals or amends all inconsistent issuances.
- Effectivity (Sec. 5):
• This Order takes effect 15 days after publication in a newspaper of general circulation.