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Pursuant to Sections 2(b), and 6(b) of Presidential Decree No. 474 and to implement Section 3.2 of the Memorandum of Agreement (MOA) dated 03 February 1999 among the Department of Transportation and Communications (DOTC), Department of Environment and Natural Resources (DENR), Department of Agriculture (DA), and Department of Interior and Local Government (DILG) on the specific powers, functions and responsibilities of concerned Departments and its Officer/Agencies relative to the inspection, checking and issuance of clearance requirements for the movement of domestic goods/cargoes, please be informed that the MARINA Board has approved the following rules during its 148th meeting on 03 June 1999.

I
Objective
1. To ensure strict compliance with clearance requirements of the parties to the aforesaid MOA for certain classes/categories of goods/cargoes to be loaded on board domestic vessels; and

2. To increase mobility of domestic vessels and domestic goods/cargoes in the ports and reduce transport cost by rationalizing clearance requirements.

II
Coverage
This Circular shall apply to all Philippine-registered ships engaged in the domestic trade.

III
Policy Statements
1. The relevant rules and regulations, circulars or laws of the aforesaid government agencies who are parties to the MOA governing clearance requirements for certain types/categories of cargoes/goods to be loaded/transported domestic vessels are hereby deemed incorporated in this Circular by reference.

2. The Shipowner shall institute a mechanism to ensure that cargoes accepted by its agents for loading onboard their vessels shall be covered by the appropriate clearance from the concerned agencies enumerated under (3) below.

3. Likewise, the Master of the vessel shall accept at the port of loading only cargoes which are covered by the necessary clearance from the appropriate government agency/ies, as prescribed under MOA dated 03 February 1999 and reproduced below:

3.1	Plants and animals, its by-products and related materials
	Applicability of clearance: When they come from/go to areas with quarantine restrictions
	Clearance Required: Bureau of Plant and Industry (BPI)/Bureau of Animal Industry (BAI) Clearance
3.2	Fish and Aquatic Products
	Applicability of clearance: When they come from/go to areas with quarantine services
	Clearance Required: Bureau of Fisheries and Aquatic Resources (BFAR)
3.3	Forestry and Wildlife Products, Flora and Fauna
	Applicability of clearance: When loaded on board domestic vessel
	Requirements: Department of Environment and Natural Resources (DENR) clearance and transport permit
3.4	Minerals, Mineral Products and Ores
	Applicability of clearance: When loaded on board domestic vessel;
	Requirements: Mines and Geosciences Bureau (MGB) Transport Permit, Delivery Receipt and Certification
3.5	Toxic and Hazardous Materials *
	Applicability of clearance: When loaded on board domestic vessel
	Requirements: Environmental Management Bureau (EMB) Permit to transport
3.6	Motor Vehicles and Parts
	Applicability of clearance: When transported from one port to another
	Requirements:	- Proof of ownership consisting of Registration Certificate and Official Receipt.
		- Traffic Management Group (TMG) clearance valid for 30 days
		- (N.B. checking at Port of loading only)
3.7	Mineral and Mineral Products/Sand and Gravel
	Applicability of clearance: When transported from one port to another
	Requirements:	Ore Transport Permit from Governor or City Mayor
		Delivery Receipts for sand and gravel for mineral and mineral products.

IV
Sanctions and Penalties
It shall be the primary duty and responsibility of the Master/Captain of the vessel to ensure strict adherence to this Circular, at all times, and violation of the provisions thereof shall be subject to the following administrative fines and/or penalties, after due notice and hearing as provided under MC No. 74, as amended, without prejudice to the institution of criminal and/or civil action with the regular courts against responsible corporate officers of the company and/or responsible officers of the vessel.

	SHIPOWNER/OPERATOR	MASTER/CREW
1. First Violation	P5,000 for every departure where shipment of cargoes is not covered by appropriate clearance.	P2,000 for every departure where shipment of cargoes is not covered by appropriate clearance.
2. Second Violation	P15,000 for every departure where shipment of cargoes is not covered by appropriate clearance.	P5,000 for every departure where shipment of cargoes is not covered by appropriate clearance.
3. Third Violation	P50,000 for every departure where shipment of cargoes is not covered by appropriate clearance.	P10,000 for every departure where shipment of cargoes is not covered by appropriate clearance.

VI
Repealing Clause:
Any provision of the Philippine Merchant Marine Rules and Regulations (PMMRR) 1997 and existing MARINA Memorandum Circulars and issuances which are inconsistent with this Circular are hereby repealed or modified accordingly.

V
Effectivity
This Memorandum Circular shall be published once in a newspaper of general circulation in the Philippines and shall take effect fifteen (15) days after publication.

It is hereby required of the parties concerned to post copy/ies of this Circular on board the vessel and in other conspicuous places.

Adopted: 3 June 1999

(SGD.) AGUSTIN R. BENGZON
Administrator

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^* This is in addition to the requirement under MARINA MC No. 101.