TRANSPORTATION LAWS
partnership or association wholly owned by and composed of
MARITIME COMMERCE
ARTICLE 573. Merchant vessels constitute property which
may be acquired and transferred by any of the means
recognized by law. The acquisition of a vessel must
appear in a written instrument, which shall not produce
any effect with respect to third persons if not inscribed in
the registry of vessels.
The ownership of a vessel shall likewise be acquired by
possession in good faith, continued for three years, with a
just title duly recorded. In the absence of any of these
requisites, continuous possession for ten years shall be
necessary in order to acquire ownership.
A captain may not acquire by prescription Presidential
Decree No. 474
PROVIDING FOR THE REORGANIZATION OF MARITIME
FUNCTIONS IN THE PHILIPPINES, CREATING THE MARITIME
INDUSTRY AUTHORITY, AND FOR OTHER PURPOSES
Section 3. Definition of Terms. The terms, as used, in this Decree,
shall have the following meaning, unless the context of the
particular usage of the term indicates otherwise;
a. "Maritime Industry", briefly referred to as "industry" in the
broadest concept of the term. All enterprises engaged in the
business of designing, constructing, manufacturing, acquiring,
operating, supplying, repairing and/or maintaining vessels, or
component parts thereof; of managing and/or operating shipping
lines, stevedoring arrastre and customs brokerage services,
shipyards, drydocks, marine railways, marine repair shops,
shipping and freight forwarding agencies and similar enterprises.
b. "Vessels" or "Watercraft" Any barge, lighter, bulk carrier,
passenger ship freighter, tanker, container ship, fishing boats or
other artificial contrivance utilizing any source of motive power,
designed, used or capable of being used as a means of water
transportation operating either as common contract carrier,
including fishing vessels covered under Presidential Decree No.
43, except (1) those owned and/or operated by the Armed Forces
of the Philippines and by foreign governments for military
purposes, and (ii) bancas, sailboats and other waterborne
contrivance of less than three gross tons capacity and not
motorized.
c. "Philippine national" A citizen of the Philippines; or a
citizens of the Philippines; or a corporation organized under the
laws of the Philippines of which at least sixty per cent of the
capital stock outstanding and entitled to vote is owned and held
by Philippine citizens; or a trustee of funds for pensions or other
employee retirement or separation benefits, where the trustee is a
Philippine national and at least sixty per cent of the funds will
accrues to the benefit of the Philippine nationals: Provided, That
where a corporation and its non-Filipino stockholders own stock in
an enterprise, at least sixty percent of the members of the
governing board of both corporations must be Philippine
nationals.
d. "Philippine flag vessel" A vessel or watercraft registered under
Philippine laws.
e. "Foreign flag vessel" A vessel or watercraft registered under
the laws of a country other than the Philippines.
f. "Philippines shipping companies" Philippine nationals registered
and licensed under the laws of the Philippines to engage in the
business of overseas and/or domestic water transportation.
Section 12(h). Approve the sale, lease or transfer of management
of vessels owned by Philippine Nationals to foreign owned or
controlled enterprises.the vessel of which he is in command.
With respect to Article 573, read P.D. No. 474, Sections 3 & 12(h)
TITLE TWO
PERSONS WHO TAKE PART IN MARITIME
COMMERCE
SECTION ONE
SHIPOWNERS AND SHIP AGENTS
ARTICLE 586. The shipowner and the ship agent shall be
civilly liable for the acts of the captain and for the
obligations contracted by the latter to repair, equip, and
provision the vessel, provided thecreditor proves that the
amount claimed was invested for the benefit of the same.
By ship agent is understood the person entrusted with
provisioning or representing the vessel in the portin which
it may be found.
ARTICLE 587. The ship agent shall also be civilly liable for
the indemnities in favor of third persons which may arise
from the conduct of the captain in the care of the goods
which he loaded on the vessel; but he may exempt himself
therefrom by abandoning the vessel with all her
equipments and the freight it may have earned during the
voyage.
1
TRANSPORTATION LAWS
ARTICLE 588. Neither the shipowner nor the ship agent
shall be liable for the obligations contracted by the captain,
if the latter exceeds the powers and privileges pertaining
to him by reason of his position or conferred upon him by
the former.
Nevertheless, if the amounts claimed were invested for the
benefit of the vessel, the responsibility therefor shall
devolve upon its owner or agent.
ARTICLE 589. If two or more persons should be part
owners of a merchant vessel, a partnership shall be
presumed as established by the co-owners.
This partnership shall be governed by the resolutions of
the majority of the members.
If the part owners should not be more than two, the
disagreement of views, if any, shall be decided by the vote
of the member having the largest interest. If the interests
are equal, it should be decided by lot.
The person having the smallest share in the ownership
shall have one vote; and proportionately the other part
owners as many votes as they have parts equal to the
smallest one.
A vessel may not be detained, attached or levied upon in
execution in its entirety, for the private debts of a part
owner, but the proceedings shall be limited to the interest
which the debtor may have in the vessel, without
interfering with the navigation.
SECTION TWO
CAPTAINS AND MASTERS OF VESSELS
ARTICLE 609. Captains, masters or patrons of vessels
must be Filipinos, have legal capacity to contract in
accordance with this code, and prove the skill, capacity,
and qualifications necessary to command and direct the
vessel, as established by marine or navigation laws,
ordinances, or regulations, and must not be disqualified
according to the same for the discharge of the duties of
the position.
If the owner of a vessel desires to be the captain thereof,
without having the legal qualifications therefor, he shall
limit himself to the financial administration of the vessel,
and shall intrust the navigation to a person possessing the
qualifications required by said ordinances and regulations.
ARTICLE 610. The following powers shall be inherent in
the position of captain, master or patron of a vessel:
1. To appoint or make contracts with the crew in the
absence of the ship agent, and to propose said crew,
should said agent be present; but the ship agent may not
employ any member against the captain's express refusal.
2. To command the crew and direct the vessel to the port
of its destination, in accordance with the instructions he
may have received from the ship agent.
3. To impose, in accordance with the contracts and with
the laws and regulations of the merchant marine, and
when on board the vessel, correctional punishment upon
those who fail to comply with his orders or are wanting in
discipline, holding a preliminary hearing on the crimes
committed on board the vessel on the seas, which crimes
shall be turned over to the authorities having jurisdiction
over the same at the first port touched.
4. To make contracts for the charter of the vessel in the
absence of the ship agent or of its consignee, acting in
accordance with the instructions received and protecting
the interests of the owner with utmost care.
5. To adopt all proper measures to keep the vessel well
supplied and equipped, purchasing all that may be
necessary for the purpose, provided there is no time to
request instruction from the ship agent.
6. To order, in similar urgent cases while on a voyage, the
repairs on the hull and engines of the vessel and in its
rigging and equipment, which are absolutely necessary to
enable it to continue and finish its voyage; but if he should
arrive at a point where there is a consignee of the vessel,
he shall act in concurrence with the latter.
ARTICLE 612. The following obligations shall be inherent
in the office of captain:
1. To have on board before starting on a voyage a detailed
inventory of the hull, engines, rigging, spare-masts, tackle,
and other equipment of the vessel; the royal or the
navigation certificate; the roll of the persons who make up
the crew of the vessel, and the contracts entered into with
them; the lists of passengers; the bill of health; the
certificate of the registry proving the ownership of the
vessel and all the obligations which encumber the same
up to that date; the charter parties or authenticated copies
thereof; the invoices or manifests of the cargo, and the
memorandum of the visit or inspection by experts, should
it have been made at the port of departure.
2. To have a copy of this code on board.
3. To have three folioed and stamped books, placing at
the beginning of each one a memorandum of the number
2
TRANSPORTATION LAWS
of folios it contains, signed by the maritime authority, and
in his absence by the competent authority.
In the first book, which shall be called "log book," he shall
enter day by day the condition of the atmosphere, the
prevailing winds, the courses taken, the rigging carried,
the power of the engines used in navigation, the distances
covered, the maneuvers executed, and other incidents of
navigation; he shall also enter the damage suffered by the
vessel in her hull, engines, rigging, and tackle, no matter
what its cause may be, as well as the impairment and
damage suffered by cargo, and the effect and importance
of the jettison, should there be any; and in cases of
serious decisions which require the advice or a meeting of
the officers of the vessel, or even of the crew and
passengers, he shall record the decisions adopted. For
the information indicated he shall make use of the
binnacle book and of the steam of engine book kept by the
engineer.
In the second book called the "accounting book," he shall
record all the amounts collected and paid for the account
of the vessel, entering specifically article by article, the
source of the collection and the amounts spent for
provisions, repairs, acquisitions of equipment or goods,
fuel, food, outfits, wages, and other expenses of whatever
nature they may be. He shall furthermore enter therein a
list of all the members of the crew, stating their domiciles,
their wages and salaries, and the amounts they may have
received on account, directly or by delivery to their
families.
In the third book, called "freight book," he shall record the
loading and discharge of all the goods, stating their marks
and packages, names of the shippers and of the
consignees, ports of loading and unloading, and the
freightage they give. In this same book he shall record the
names and places of sailing of the passengers, the
number of packages in their baggage, and the price of
passage.
4. Before receiving cargo, to make with the officers of the
crew and two experts, if required by the shippers and
passengers, an examination of the vessel, in order to
ascertain whether it is water-tight, with the rigging and
engines in good condition, and with the equipment
required for good navigation, preserving under his
responsibility a certificate of the memorandum of his
inspection, signed by all those who may have taken part
therein.
The experts shall be appointed, one by the captain of the
vessel and another by those who request its examination,
and in case of disagreement a third shall be appointed by
the marine authority of the port or by the authority,
exercising his functions.
5. To remain constantly on board the vessel with the crew
while the cargo is being taken on board and to carefully
watch the stowage thereof; not to consent to the loading of
any merchandise or matter of a dangerous character, such
as inflammable or explosive substances, without the
precautions which are recommended for their packing,
handling and isolation; not to permit the carriage on deck
of any cargo which by reason of its arrangement, volume,
or weight makes the work of the sailors difficult, and which
might endanger the safety of the vessel; and if, on account
of the nature of the merchandise, the special character of
the shipment, and principally the favorable season in
which it is undertaken, merchandise may be carried on
deck, he must hear the opinion of the officers of the vessel
and have the consent of the shippers and of the ship
agent.
6. To demand a pilot at the expense of the vessel
whenever required by the navigation, and principally when
he has to enter a port, canal, or river, or has to take a
roadstead or anchoring place with which neither he nor the
officers and crew are acquainted.
7. To be on deck on reaching land and to take command
on entering and leaving ports, canals, roadsteads, and
rivers, unless there is a pilot on board discharging his
duties. He shall not spend the night away from the vessel
except for serious causes or by reason of official business.
8. To present himself, when making a port in distress, to
the maritime authority if in the Philippines and to the
consul of the Republic of the Philippines if in a
foreign country, before twenty-four hours have elapsed,
and to make a statement of the name registry, and port of
departure of the vessel, of its cargo, and the cause of
arrival which declaration shall be visaed by the authority or
the consul, if after examining the same it is found to be
acceptable, giving the captain the proper
certificate proving his arrival in distress and the reasons
therefor. In the absence of the maritime authority or of the
consul, the declaration must be made before the local
authority.
9. To take the necessary steps before the competent
authority in order to record in the certificate of the vessel in
the registry of vessels the obligations which he may
contract in accordance with Article583.
10.To place under good care and custody all the papers
and belongings of any members of the crew who might die
on the vessel, drawing up a detailed inventory, in the
presence of passengers, or, in their absence, of members
of the crew as witnesses.
3
TRANSPORTATION LAWS

11.To conduct himself according to the rules and precepts 5. For those caused by the misuse of the powers and the
contained in the instructions of the ship agent, being liable non-fulfillment of the obligations pertaining to him in
for all that which he may do in violation thereof. accordance with Articles 610 and 612.

12.To inform the ship agent from the port at which the
vessel arrives, of the reason of his arrival taking
advantage of the semaphore, telegraph, mail, etc., as the
case may be; to notify him of the cargo he may have
received, stating the names and domiciles of the shippers,
freightage earned, and amounts borrowed on bottomry
loan; to advise him of his departure, and of any operation
and date which may be of interest to him.
6. For those arising by reason of his going out of his
course or taking a course which he should not have taken
without sufficient cause, in the opinion of the officers of the
vessel, at a meeting with the shippers or supercargoes
who may be on board.
No exceptions whatsoever shall exempt him from this
obligation.

13.To observe the rules with respect to situation, lights
and maneuvers in order to avoid collisions.14.To remain
on board, in case the vessel is in danger, until all hope
to save it is lost, and before abandoning it, to hear the
officers of the crew, abiding by the decision of the majority;
and if the boats are to be taken to, he shall take with him,
before anything else, the books and papers, and then the
articles of most value, being obliged to prove, in case of
the loss of the books and papers, that he did all he could
to save them.
7. For those arising by reason of his voluntarily entering a
port other than that of his destination, outside of the cases
or without the formalities referred to in Article 612.
8. For those arising by reason of non-observance of the
provisions contained in the regulations on situation of
lights and maneuvers for the purpose of preventing
collisions.

15. In case of wreck, to make the proper protest in due

form at the first port of arrival, before the competent
authority or the Philippine consul, within twenty-four hours,
specifying therein all the incidents of the wreck, in
accordance with subdivision 8 of this article.16.To comply
with the obligations imposed by the laws and regulations
on navigation, customs, health, and others.

ARTICLE 618. The captain shall be civilly liable to the ship

agent, and the latter to the thirdpersons who may have
made contracts with the former;

1. For all the damages suffered by the vessel and its cargo
by reason of want of skill or negligence on his part. If a
misdemeanor or crime has been committed, he shall be
liable in accordance with the Penal Code.

2. For all the thefts committed by the crew, reserving his

right of action against the guilty parties.

3. For the losses, fines, and confiscations imposed an

account of violation of customs, police, health, and
navigation laws and regulations.

4. For the losses and damages caused by mutinies on

board the vessel or by reason of faults committed by the
crew in the service and defense of the same, if he does
not prove that he made timely use of all his authority to
prevent or avoid them.