Tags: Benigno S. Aquino III, Laws, Liberalization of Philippine Cabotage, Republic Acts. S. No. H. No. Republic of the Philippines. Considering the cost of operating ships in the Philippines, a shipping if the government is to revoke the cabotage policy and therefore allow. The Maritime Industry Authority (MARINA) is pushing via a draft bill the easing of the Philippines’ cabotage law by allowing foreign flag vessels.

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It has to be retooled or adjusted to meet present challenges. Learn more about the Philippine government, its structure, how government works and the people behind it. In the EU, rights to cabotage in newly-admitted Member States in particular, Greece, Spain and Portugal were restricted; [6] cabotagee this introductory provision was abandoned after criticism in the light of the Paros ferry disaster. Most countries do not permit aviation cabotage, and there are strict sanctions against it, for reasons of economic protectionismnational securityor public safety.

RAalso known as the amended Cabotage Law.

Introduction to Air Transport Economics: Australia also permits foreign-owned airlines incorporated under Australian law such as Tiger Airways Australia and the domestic arm of Virgin Australia to operate on domestic routes, although it prohibits such airlines from operating international routes as Australian flag carriers.

Business terms Political terminology International law International trade Freight transport. For instance, Qantas operates service between New York and Los Angeles solely for use by international connecting passengers. JUL 21 Sgd. Aquino III signed in July last year the amendments to the Cabotage Law which is expected to help cut logistics cost and ease restrictions, allowing foreign ships to transport, import or export cargo directly to and from any local port other than the Port of Manila.

Implementing rules and regulations for amended Cabotage Law released

For purposes of this Act, an empty foreign container van going to or coming from any Philippine port, or going to or philippinez from a foreign port, and being transshipped between two 2 Philippine ports shall be allowed. This unusual regime is partly due to Chile’s geographical need for air service, and partly to incentivize liberalization in other countries amid the international expansion of its flag carrier LATAM Chilewhich now has major operations in many other Latin American countries.


The arguments for and against the repeal of the law have their respective merits. We use cookies to ensure you get the best experience on our website.

The objective and scope of the Cabotage Law may be likened to those of Republic Actor Retail Trade Nationalization Act, which gave to Filipino citizens the exclusive right to engage in retail trade.

Official Gazette Open Data Portal. The right of domestic vessels to exclusively engage in coastwise transportation dates back to the s when the country was under American rule.

Retrieved 10 January Carriers licensed under EU law are permitted to engage in cabotage in any EU member state, with some limitations. Allowing foreign vessels to consolidate their cargo while plying domestic waters will help reduce the domestic shipping and logistics costs, which will enhance the competitiveness of our exporters.

Passengers or goods arriving from abroad on foreign vessels may be carried by the same vessel to any port in the Philippines, and passengers departing from the Philippines or articles intended for export may be carried in a foreign vessel through a Philippine port, only with the approval of the Commissioner of Customs.

The Indonesian government averted the disaster by immediately restoring exclusivity to Indonesian registered vessels in coastwise operation.

By continuing, you are agreeing to our use of cookies. Retrieved from ” https: The disinterest in investment is aggravated by the resurgence of budget airlines phliippines offer airfares below those charged by domestic ships, in addition to being able to get to destinations in a matter of hours, not days, as is the case in sea travel.

Review of Cabotage Law

Retrieved 5 October The Closer Economic Relations agreement allows Australian air carriers to fly domestically and internationally from New Zealand and vice versa. Implementing Rules and Regulations. Provided, That such acts shall not diminish or impair any existing and valid government contract covering the handling of import and export cargo: Outside of the cases mentioned above, retail trade remains exclusively in the hands of Filipino citizens.


They represent legitimate concerns that cannot be ignored.

Republic Act No. | Official Gazette of the Republic of the Philippines

Japan Federation of Coastal Shipping Associations. In other projects Wikimedia Commons. Weighing on the issue, exporters and importers claim that the restriction on foreign vessels in the movement of goods in Philippine ports increases their costs as cargoes have to be loaded and unloaded to and from foreign and local vessels and vice versa. Certain tonnages or passenger load factors may be reserved to local vessels. One notable exception is the European Unionwhose Member States all grant cabotage rights to each other.

Enacted inthis law sought to ensure that the sale and distribution of basic food commodities remained in Filipino hands. With the changes in the global economy, this law is clearly behind the times.

They also felt that, as against foreign sailors, the familiarity of Filipino ship operators with maritime and weather conditions in the country contributes to safety in local sea travel.

And like all other businesses, the additional financial burden is invariably passed on to or shouldered by the consumers. This Act which is a consolidation of Senate Bill No. Provided, further, That the Commissioner of Customs shall have the authority to impose penalties to foreign ship operators found to have violated any provision of this Act and to take measures to address illegal activities, including smuggling.

For feedback, complaints, or inquiries, contact us. Republic of the Philippines All content is in the public domain unless otherwise stated. Cabotage rights are the right of a company from one country to trade cabotagd another country.