Regulating The Operations Of Shipbuilding And Ship Repair Yards

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 1059 December 1, 1976

REGULATING THE OPERATIONS OF SHIPBUILDING AND SHIP REPAIR YARDS

WHEREAS, the priority attention and incentives given by the government for the shipbuilding and ship repair industry have attracted new investment including the inflew of foreign capital and technology;

WHEREAS, the MARITIME INDUSTRY AUTHORITY has been tasked to enhance domestic capability for shipbuilding, repair and maintenance;

WHEREAS, the establishment of numerous shipyards could lead to destructive competition and possible collapse of the shipbuilding and ship repair industry;

WHEREAS, it is strongly imperative to regulate the activities of the shipyards in the country to effectively promote the shipbuilding and ship repair program in particular, and the development of the maritime industry as a whole.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution do hereby order and decree the following as part of the law of the land:

Section 1. The policies and objectives declared in Presidential Decrees...

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PRESIDENTIAL DECREE No. 1059

Regulating the Operations of Shipbuilding and Ship Repair Yards

• Reiterates the policies and objectives declared in Presidential Decrees Nos. 474, 666, and 878 for the shipbuilding and ship repair industry. (Section 1)

• Empowers the Maritime Industry Authority with the following functions and responsibilities:

    - Approve plans for shipbuilding and/or ship repair facilities, as well as plans and specifications for construction, repair, improvement, alteration, and/or reconditioning of any watercraft shipyards in the country. (Section 1.1)

    - Regulate the activities of shipbuilding and ship repair yards by determining the minimum and maximum capacity of their facilities, which will be the basis for classification by the Maritime Industry Authority to ascertain the allowable shipbuilding and/or ship repair capacity of every shipyard. (Section 1.2)

    - Ensure equitable participation among all registered shipyards, preclude destructive competition, and provide ample protection to those registered earlier. Shipyards registered after January 1, 1977, shall only be allowed to accept contracts beyond the capacity of prior registered shipyards. However, if prior registered shipyards cannot accommodate contracts on time due to existing commitments or inadequate facilities, the shipowner, agent, or operator shall be allowed to engage the services of the shipyard of their choice upon proof and determination by the Maritime Industry Authority of the non-availability of needed services by any prior registered shipyard. (Section 1.3)

• The Maritime Industry Authority shall promulgate rules, regulations, procedures, and guidelines for the proper and efficient implementation of the provisions. (Section 2)

• Any provisions of law, decree, executive order, or rules and regulations inconsistent with this Decree are hereby repealed or modified accordingly. (Section 3)

• This Decree shall take effect immediately. (Section 4)