Pursuant to the provisions of the International Maritime Organization (IMO), through the Maritime Safety Committee Resolution A.858(20) in relation to Chapter V Regulation 8-1 of the International Convention for the Safety of Life at Sea (SOLAS), 1974, and its Protocol of 1988, and in line with the national policy of enhancing safety to bolster the mandates of the Maritime Industry Authority as the Philippines' flag administration under PD No. 474 and EO Nos. 125/125-A, the Maritime Industry Board in its meeting on 13 December 2001, adopted the following guidelines on compliance with the mandatory ship reporting systems.

OBJECTIVE

This Circular gives notice on the need to comply with the mandatory ship reporting systems adopted by the International Maritime Organization (IMO) through the Maritime Safety Committee.

I. COVERAGE

All shipping companies, ship owners/operators/ managers with Philippine-flagged ships of 300 gross tons and above, and all ship masters in command of Philippine-flagged ships trading within or passing through the areas covered by mandatory ship reporting systems.

II. SPECIFIC PROVISIONS

1. All shipping companies/ship owners/operators/managers covered by this Circular shall incorporate the necessary guidelines in the ships' safety manuals to ensure compliance on the mandatory ship reporting systems as adopted by IMO.

2. Ship masters of Philippine-flagged ships when passing through the areas covered shall make the necessary reporting to the authorities in accordance with the format, content and guidelines stipulated in the pertinent MSC Resolution adopting the mandatory ship reporting system.

III. ADMINISTRATIVE FINES AND PENALTIES

Any shipping company/ship owner/operator/manager of Philippine-flagged ship which fails to comply with the provisions of mandatory ship reporting systems as adopted by IMO shall be subject to an administrative fine of TEN THOUSAND PESOS (P10,000.00), on a per incident basis, after due notice and hearing.

The master of any Philippine-flagged ship who fails to participate in the mandatory reporting to relevant authorities as required by this Circular shall be subject to an administrative fine of FIFTEEN THOUSAND PESOS (P15,000.00) on a per incident basis.

The Administration may recommend to the pertinent government agency the suspension/revocation of any licenses, permits or competency certificates of a master who is found to have violated this circular a third time.

IV. REPEALING CLAUSE

Any provision of MARINA Memorandum Circulars, otherwise, inconsistent herewith is modified/amended accordingly.

V. EFFECTIVITY

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