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(NAR) VOL. 15 NOS. 1-2 / APRIL - JUNE 2004

[ NTC MEMORANDUM CIRCULAR NO. 05-06-2004, June 25, 2004 ]


Pursuant to Act 3846, as amended, Executive Order No, 546, and the International Telecommunications Regulations specifically ITU-T Recommendation D.90 for the charging and billing of maritime accounts of Philippine Registered Ships, the Commission hereby promulgates the following guidelines in the grant of Certificate of Recognition to accounting authorities in the maritime mobile service.

A. Scope

These guidelines are intended to define the duties and responsibilities of accounting authorities.  This is to ensure that accounting authorities operate in accordance with the International Radio Regulations, taking into account the applicable ITU-T Recommendations, specifically Recommendation D.90.

B. Definition of Terms

1. Accounting Authority (AA) - refers to any organization designated by the Administration who acts as a billing intermediary between the maritime mobile stations and service providers.

2. Maritime Mobile Service - a mobile service which covers the maritime mobile satellite service as well as the MF, HF and VHF radio media, unless specifically stated otherwise.

3. Maritime Mobile Satellite Service - a mobile satellite service which covers the mobile earth stations located on board ships. Survival craft stations; emergency position - indicating radio beacon stations; and Inmarsat communications equipment are included in this service.

4. Service Provider - a recognized private operating agency (RPOA) authorized to provide communication service to and from the maritime mobile stations.

5. Maritime Bill - the bill issued by the service provider with respect to collection of charges for the maritime mobile traffic that originated from a maritime mobile station.

6. Administration - refers to any government organization who is responsible for discharging the obligations undertaken in the Convention of the International Telecommunications Union.  For purposes of these guidelines, "Administration" refers to the National Telecommunications Commission (NTC) or the Commission.

7. ITU-T - refers to the organization of the International Telecommunications Union responsible for developing international telecommunications recommendations relating to standardization of international telecommunications services and facilities, including matters related to international charging and accounting principles and the settlement of international telecommunications accounts.

8. ITU Recommendation D.90 - refers to the principles for charging, billing, international accounting and settlement for the maritime mobile service.


1. Accounting Authorities must be registered with the Commission. Registration must be subject to periodic review and inspection to determine compliance with the provisions of this Circular.

i. If a registered Accounting Authority is planning to relinquish its Authority, the Commission must be notified in writing at least six (6) months in advance of such plan.

ii. If a registered Accounting Authority intends to change ownership, merge, or sell, it shall inform the Commission in writing at least three (3) months in advance.  The new owner shall be treted as new applicant if it is interested in becoming an Accounting Authority.

2. Each Accounting Authority will be allocated a distinct Accounting Authority Identification Code (AAIC).  The AAIC consists of two parts; the first part will be two letters denoting the country in which the accounting authority is based (for example:  Philippines is PH); and the second part will be numeric with a maximum of two characters, denoting the particular Accounting Authority.

3. Accounting Authorities are responsible for remitting in a timely manner, all valid amounts due to foreign administrations or their agents.

4. Accounting Authorities must cooperate fully with the Commission in all respects concerning international maritime settlement issues, including the resolution of questions of fact or other issues arising as a result of settlement operations.

5. Accounting Authorities must maintain all accounting records for a period of at least five (5) years.

6. The NTC shall submit all names, addresses, and identification codes of Accounting Authorities to the Radiocommunications Bureau for inclusion in the List of Ship Stations.

7. The ITU-T Recommendation D.90 is hereby adopted to form part of this Memorandum Circular (MC). Copy of ITU-T Recommendation D.90 is appended to this Circular.

D. Qualifications of Accounting Authority

1. Organized under Philippine Laws to engage in the business of maritime accounting, billing and collection, and other related services.

2. Have skill and expertise in the field of maritime accounting, billing and collection, or other related endeavor such as general commercial accounting in the international shipping industry.

3. Authorized Capitalization of Four Million (PHP 4,000,000.00) pesos.

4. Capable in providing full accounting facilities for all maritime services including maritime mobile satellite by means of an electronic media for transmission and reception of bills and software needed in the accounting and billing operation.

E. Requirements for the Recognition as Accounting Authority

Any application for Recognition to be an Accounting Authority shall be filed with the Commission duly supported with the following requirements:

1. Letter of Intent
2. Duly accomplished application form
3. Duly certified true copy of SEC Registration Certificate and Articles of Incor poration; or DTI Registration Certificate; or business permit (optional for new).
4. Latest Audited Financial Statement, if applicable
5. List of personnel complement or organizational structure
6. List of equipment or office facilities
7. Procedure in the collection and billing of customers/clients
8. Flowchart in the collection and billing of customers/clients.
9. Economic viability and financial feasibility study.

F. Role of Accounting Authority

1. Provides customers with a clear statement of accounts in accordance with the IYU-T Recommendation D.90 indicating, among others, the period, date, time, and amount as a basis of which charges will be levied for the services provided.

2. Obtains applicable tariff information from the service provider and making this information available to its customers.

3. Guarantees payment of the collection charges to the communication service providers for traffic that originated from Philippine registered maritime mobile stations.

4. Maintains up-to-date and accurate records of the ship stations for which it has full responsibility.  Any change in status, ownership, termination or commencement of contract must be notified immediately to the ITU thru the Commission.  The report must contain the following information:

i. Inmarsat Mobile Number (IMN)
ii. Ship call sign
iii. Maritime Mobile Service Identity Number (MMSI)
iv. Commencement/termination date
v. Previous agent or new agent, if applicable
vi. Previous owner, if applicable.

5. Submits to the Commission, on a quarterly basis, an updated list of shipping companies with their corresponding status of accounts.

6. Issues Certification to shipping companies with updated payments of maritime/satellite accounts for purposes of licensing with the Commission.

7. Submits any requirement that may be determined by the Commission from time to time.

G. Grant of Certificate of Recognition as Accounting Authority

A Certificate of Recognition as Accounting Authority shall be issued after compliance with the provisions of this Circular and shall be valid for a period of one (1) year.  Provided that, any new Certificate of Recognition shall be issued on temporary basis and shall be valid for a period of six (6) months.

Subsequent renewal of Certificate of Recognition shall be valid for a period of one (1) year.

H. Grounds for denial or disapproval; and/or suspension or revocation of Certificate of Recognition

The Commission may deny or disapprove an application for the following reasons:

1. Incomplete application.

2. Applicant fails to provide necessary information as requested by the Commission; or the applicant indicates that it cannot meet a particular provision of this Circular.

Failure to submit required reports to the Commission and non-payment of necessary fees and charges and/or violation to any provisions of this Circular may be a ground for the suspension and revocation of the Certificate of Recognition.

I. Fees and Charges
1. Filing Fee- PHP 500.00
2. Temporary Certificate of - PHP 2,500.00
 Recognition Fee  
 Regular Certificate of Recognition Fee- PHP5,000.00 per year
3. Inspection Fee -PHP1,200.00 per year

J. Sanctions

Any violation of any provisions of this Circular shall be imposed a penalty fine of Five Thousand Pesos (PHP 5,000.00) for each and every offense.

Other violations of Radio Laws and Regulations shall be imposed a penalty in accordance with the schedule of fines and penalties of the Commission.

K. Effectivity

This Circular shall take effect fifteen (15) days after publication in a newspaper of general circulation and three (3) certified true copies furnished the UP Law Center.

Adopted: 25 June 2004

Deputy Commissioner
Deputy Commissioner
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