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(NAR) VOL. II NO. 2 / APRIL - JUNE 1991

[ MIA MEMORANDUM CIRCULAR NO. 50, July 26, 1989 ]

REVISED SCHEDULE OF PENALTIES AND ADMINISTRATIVE FINES



Pursuant to the provisions of Executive Orders Nos. 125 and 125-A, Presidential Decree No. 474, as amended, and the Public Service Act, as amended (C.A. No. 146, as amended), the penalties/administrative fines for various violations shall be, as follows:

A
Violations Under Public
Service Act As Amended


1. For operating without valid Certificate of Public Convenience (CPC) or Provisional Authority (PA):

  1.1
Without CPC/PA but application for CPC pending. P500 per day of operation without CPC/PA or any authorization or P25,000 whichever is higher, for vessel of 501 GRT and above; P300 per day of operation without CPC/PA or any authorization or P10,000 whichever is higher for vessel of 101-500 GRT, and P100 per day of operation without CPC/PA or any authorization or P5,000 whichever is higher for vessel of 100 GRT and below, without prejudice to issuance of cease and desist order.
   
  1.2
Without CPC/PA and no CPC application pending. P1,000 per day of operation without CPC/PA or P50,000 whichever is higher for vessel of 501 GRT and above; P500 per day of operation without CPC/PA or any authorization or P25,000 whichever is higher for vessel of 101-501 GRT P200: P200 per day of operation or P10,000 whichever is higher for vessel of 100 GRT and below, without prejudice to issuance of cease and desist order.

2. For willfully and deliberately issuing tickets for a particular voyage in excess of the maximum authorized passenger capacity of the vessel:

  2.1
First Offense. Ten Thousand Pesos (P10,000)
   
  2.2
Second Offense. Ten Thousand Pesos (P10,000) and recommendation for suspension of Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  2.3
Third Offense. Ten Thousand Pesos (P10,000) and recommendation for indefinite suspension of Certificate of Public Convenience or Provisional Authority.

3. For carrying passengers in excess of the authorized passenger capacity:

  3.1
First Offense. P100.00 per excess passenger
   
  3.2
Second Offense. P100.00 per excess passenger and recommendation for suspension of Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  3.3
Third Offense. P100.00 per excess passenger and recommendation for indefinite suspension of the Certificate of Public Convenience or Provisional Authority.

4. For unilateral withdrawal or abandonment of the route without prior authorization or permit from the MARINA:

  4.1
First Offense. P200.00 per day of withdrawal or abandonment of service from the authorized route.
   
  4.2
Second Offense. P200.00 per day of withdrawal or abandonment of service and recommendation for suspension of the Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  4.3
Third Offense. P200.00 per day of withdrawal or abandonment and a recommendation for indefinite suspension of Certificate of Public Convenience or Provisional Authority.

5. For operating the vessel without updated and valid Certificate of Inspection/Coastwise License/Radio Station License, each violation considered a separate offense:

  5.1
First Offense. P200.00 per day of invalidity or lapsation
   
  5.2
Second Offense. P200.00 per day or invalidity or lapsation and recommendation for suspension of Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  5.3
Third Offense. P200.00 per day of invalidity or lapsation and recommendation for indefinite suspension of Certificate of Public Convenience or Provisional Authority.

6. For non-payment of annual supervision fee:

  6.1
First Offense. Amount of supervision fee already due plus 50% thereof as surcharges.
   
  6.2
Second Offense. Amount of supervision fee already due plus 50% surcharges and recommendation for suspension of Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  6.3
Third Offense. Amount of supervision fee already due plus 50% surcharges and recommendation for indefinite suspension of Certificate of Public Convenience or Provisional Authority.

7. For unauthorized omission of ports of call:

  7.1
First Offense P1,000 per day of unauthorized omission of port(s) of call.
   
  7.2
Second Offense P1,000 per day of unauthorized omission of port(s) of call and recommendation for suspension of the Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  7.3
Third Offense P1,000 per day of unauthorized omission of port of call and recommendation for indefinite suspension of the Certificate of Public Convenience or Provisional Authority.

8. For unauthorized increase of passenger capacity:

  8.1
First Offense P1,000 per day of unauthorized increase of passenger capacity, if the unauthorized increase of passenger capacity does not exceed ten (10) passengers; P2,000 per day if the unauthorized increase of passenger does not exceed twenty (20) passengers; provided, however, that this Authority may impose P100 per day of unauthorized increase in passenger per day or P10,000 whichever is higher, at the discretion of the Authority.
   
  8.2
Second Offense P1,000 per day of unauthorized increase of passenger capacity and recommendation for suspension of the Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  8.3
Third Offense P1,000 per day of unauthorized increase of passenger capacity and recommendation for indefinite suspension of the Certificate of Public Convenience or Provisional Authority.

9. For unauthorized deviation of route:

  9.1
First Offense P1,000 per day of unauthorized deviation of route.
   
  9.2
Second Offense P1,000 per day of unauthorized deviation of route and recommendation for suspension of Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  9.3
Third Offense P1,000 per day of unauthorized deviation of route and recommendation for indefinite suspension of Certificate of Public Convenience or Provisional Authority.

10. For unauthorized increase/reduction in rates (passenger and/or freight):

  10.1
First Offense P1,000 per day of unauthorized increase/reduction in rates (passenger and/or freight).
   
  10.2
Second Offense P1,000 per day of unauthorized increase/reduction in rates (passenger and/or freight) and recommendation for suspension of Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  10.3
Third Offense P1,000 per day of unauthorized increase/reduction in rates (passenger and/or freight) and recommendation for indefinite suspension of Certificate of Public Convenience or Provisional Authority.

11. For violation of time schedule:

  11.1
First Offense P200 per day of violation of time schedule.
   
  11.2
Second Offense P200 per day of violation of time schedule and recommendation for suspension of Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  11.3
Third Offense P200 per day of violation of time schedule and recommendation for indefinite suspension of Certificate of Public Convenience or Provisional Authority.

12. For failure to submit or for submitting short passenger manifest or manifest substantially short of the actual/passenger on board:

  12.1
First Offense Ten Thousand Pesos (P10,000.00)
   
  12.2
Second Offense Ten Thousand Pesos (P10,000.00) and recommendation for suspension of Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  12.3
Third Offense Ten Thousand Pesos (P10,000.00) and recommendation for indefinite suspension of Certificate of Public Convenience or Provisional Authority.

13. For operating without adequate/valid passenger insurance coverage:

  13.1
First Offense The minimum of P200 or the amount of the fare per passenger, whichever is higher per day of inadequate passenger insurance coverage or non-coverage or policy expiration/lapsation.
   
  13.2
Second Offense The minimum of P200 or the amount of the fare per passenger, whichever is higher per day of inadequate passenger insurance coverage or non-coverage or policy expiration/lapsation and recommendation for suspension of the Certificate of Public Convenience or Provisional Authority for thirty (30) days.
   
  13.3
Third Offense The minimum of P200 or the amount of the fare per passenger, whichever is higher per day of inadequate passenger insurance coverage or non-coverage or policy expiration/lapsation, and recommendation for indefinite suspension of Certificate of Public Convenience or Provisional Authority.

B
Violations Under Presidential
Decree No. 474, As Amended


1. Non-compliance of post approval conditions on bareboat charter, importation, purchase/lease purchase/option to purchase vessels, including fishing vessels:

  1.1 First Violation — P2,000 per application
-  P200/document/day of default
     
  1.2 Second Violation — P4,000 per application
- P400/document/day of default
     
  1.3 Third and Succeeding Violations — P6,000 per application
- P600/document/day of default

2. Non-compliance of post-approval conditions on Special Permits under P.D. 474, including fishing vessels:

  2.1 First Violation — P3,00 per application
-  P300/document or condition/day of default
     
  2.2 Second Violation
- P5,000 per application — P500/document or condition/day of default
     
  2.3 Third Violation — P7,000 per application
- P700/document or condition/day of default

3. Operation of foreign registered vessel in the domestic trade/Philippine registered vessel in overseas trade, without or with expired special permit under P.D. No. 474, as amended:

  3.1 First Violation — P10,000 + P1,000/operating day
     
  3.2 Second Violation — P20,000 + P2,000/operating day
     
  3.3 Third and Succeeding Violations — P30,000 + P3,000/operating day

4. Operation of foreign registered vessel in the domestic trade/Philippine registered vessel in overseas trade, with expired bareboat charter agreement.

  4.1 First Violation — P10,000 + P1,000/operating day
     
  4.2 Second Violation — P20,000 + P2,000/operating day
     
  4.3 Third and Succeeding Violations — P30,000 + P3,000/operating day

5. Operation of foreign registered vessel in the Philippines without prior MARINA approval.

  5.1 First Violation — P10,000 + P1,000/operating day
     
  5.2 Second Violation — P20,000 + P2,000/operating day
     
  5.3 Third and Succeeding Violations — P30,000 + P3,000/operating day


C
Other Sanctions in Force


The sanctions provided under Rule VI of the Rules and Regulations to Implement Presidential Decree No. 760, as amended by Presidential Decrees Nos. 866 and 1711 promulgated for the bareboat charter of overseas vessels for temporary Philippine registry, shall continue to be in force.

D
Due Process and Hearing


For violations under the Public Service Act, as amended, show cause orders shall be issued by the MARINA. The notice and hearing of the case shall be in accordance with the Interim Rules of Practice and Procedure in the Maritime Industry Authority in the Exercise of its Quasi-Judicial Functions.

For purposes of imposing the fines, penalties and other sanctions, the MARINA shall require the Maritime entity concerned to explain in writing the circumstances of the violation. The MARINA Maritime Legal Affairs Office and the operating office concerned shall conduct a hearing unless waived by the respondent.

E
Effectivity


This Memorandum Circular shall take effect fifteen (15) days after publication in the Official Gazette or a newspaper of general circulation.

Adopted: 26 July 1989

(SGD.) PHILIP S. TUAZON
Administrator

Re-Issued: 16 May 1991
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