(NAR) VOL. 6 NO. 3 / JULY - SEPTEMBER 1995
A. Measures to Encourage Shipowning/Lease-Irrevocable-Purchase (LIP) Arrangements
1. Shipowning Companies
2. Companies with LIP Contracts
3. Penalties/Sanctions
- The company shall pay to the Bureau of Internal Revenue the 4.5% withholding tax of the vessel's bareboat charter hire reckoned from the vessel's date of delivery to the bareboat charterers up to the date of re-delivery to the registered owners or up to the deletion of the vessel from the Philippine registry, whichever is later. Proof of such remittances shall be submitted to the MARINA within sixty (60) days from revocation of the LIP; and
- The amount of P 500,000.00 shall be imposed as penalty;
- The charter party of bonus vessels bareboat-chartered under the LIP scheme shall no longer be extended upon expiry nor shall the vessels be replaceable pursuant to item B hereof.
B. Replacement of Deleted Vessels
Any existing bareboat chartering company duly accredited by MARINA and without any owned tonnage may bareboat charter a vessel as replacement of a previously bareboat chartered vessel already deleted provided the vessel to be replaced was deleted after 31 December 1985; and provided, further, that the replacement of the vessel shall require the necessary incremental increase in paid-up capitalization stipulated under MC No. 42.
C. Pre-Approval Documentary Requirements
The applicant company under this Memorandum Circular shall submit the following pre-approval documentary requirements:
D. Saving Clause
All provisions of Memorandum Circular Nos. 33-A, 38, and 42 and of the Rules and Regulations Implementing PDs 760/866/1 711 which are not contrary to or inconsistent with this Memorandum Circular shall remain in full force and effect.
E. Repealing Clause
Memorandum Circular No. 42-A is hereby repealed.
F. Effectivity Clause
This Memorandum Circular shall take effect fifteen (15) days after its publication once in a newspaper of general circulation.
Adopted: 13 July 1995
(SGD.) PACIENCIO M. BALBON, JR.
Administrator