Pursuant to the pertinent provisions of PD 474 and EO 125, as amended, the following guidelines shall govern the accreditation of ship classification societies and entities intending to establish a classification society to cater to the needs of the Philippine domestic fleet.

I. COVERAGE
This Memorandum Circular shall apply to all companies/entities duly organized and authorized under existing Philippine laws to engage in the classification of ships in the domestic trade.

Members of the International Association of Classification Societies (IACS) shall not be required accreditation under this Circular and the certificates issued by them shall be valid and accepted by this Authority in accordance with the terms of the MEMORANDUM OF AGREEMENT by and between this Authority and each of these Organizations.

II. GENERAL PROVISIONS

1. Classification societies already accredited with the Philippine Coast Guard are hereby required to be re-accredited under this circular within a period of ninety (90) days from its effectivity.  Failure to do so shall mean the automatic cancellation of the company current accreditation.
   
   
2. Accreditation and recognition hereunder shall serve as prerequisite to the grant of permits; authorities and incentives appertaining to classification activities, which are presently administered, to be administered by MARINA.

III. SPECIFIC PROVISIONS

1. The organization shall define and document its policy and objective for and commitment to, quality and ensure that this policy is understood, implemented and maintained.
   
   
2. The organization should be governed by principles of ethical behavior which should be contained in a Code of Ethics and as such recognize the inherent responsibility associated with a delegation of authority to include assurance as to the adequate performance of services as well as confidentiality of related information as appropriate.
   
   
3. The organization shall allow participation in the development of its rules and/or regulations by qualified technical representatives of the Administration and other parties concerned.
   
   
4. Whenever the society decides to withdraw or suspend its operation:
   
   4.1    prior written notice must be sent to the Administration;
   
   4.2    such withdrawal or suspension shall mean the automatic cancellation of the above-mentioned certificates and said certificate must be surrendered to the Administration.
   
   A previously withdrawn company/entity prior to the resumption of its operation must secure a new accreditation from the Administration.
   
   
5. The Administration may conduct random audit of the classification societies to ensure that all rules, guidelines of the administration are complied with.

IV. DEFINITION OF TERMS

1. Administration - refers to the Maritime Industry Authority (MARINA).
   
   
2. Classification Society - a non-stock, non-profit organization composed of committees represented by engine builders, shipowners, shipbuilders and underwriters.
   
   
3. Vessel Classification - the process being performed by classification societies to ensure that a ship is properly designed, constructed and maintained in a safe condition through the imposition of rules governing vessel construction, carrying out of surveys during the building and/or alteration and repair of a ship and throughout the vessel ™s subsequent trading life.
   
   
4. Certificate of Authority to Undertake Classification Activities - shall refer to the document issued by the Administration to qualified local classification societies to conduct classification works/services for ships in the domestic trade.
   

V. QUALIFICATION REQUIREMENTS

1. The classification society so established must be a non-stock, non-profit organization composed of committees represented by shipbuilder, ship owner, engine builder and underwriters.
   
   
2. The classification society ™s working group must be able to render the following services:
   
   a.      Classification services - to develop and administer the technical standards for the design, construction and periodical survey of ships and other marine structures such as mobile offshore unit;
   
   b.      Technical Advisory services - to render advisory services related to ship design, construction, revision of rules referred to by the Administration.
   
   
3. The quality system of the organization shall be certified in accordance with the ISO 9000 series or its subsequent amendments, by an independent body of auditors/certifying body recognized by the Administration within a period of three (3) years from its initial accreditation.  Certification under ISO 9000 series, issued by a member of an internationally accepted classification society to the organization is acceptable and given preference.
   
   
4. Classification society must possess in its working group with at least one licensed Naval Architect and Marine Engineer, Mechanical Engineer, Chief Engineer, Master Mariner, and Electrical Engineer and with at least the following minimum qualification:
   
   4.1    Licensed Second (2nd) Marine Engineer who had work experience as 2nd Marine Engineer for at least five (5) years;
   
   4.2    Licensed Engineer (any discipline) with at least minimum ten (10) years working experience as superintendent and/or division manager in a MARINA accredited shipyard; and,
   
   4.3    Unlicensed Naval Architect and Mechanical Engineer with at least fifteen (15) years work experience in a MARINA-accredited shipyard with supervisory position and shipbuilding shiprepair activities and all types of MARINA survey of hull structures and machinery conditions.
   
   
5. The organization must take into consideration applicable provisions on the attached Annex (Text available upon request at Office of the National Administrative Register (ONAR), U.P. Law Center) entitled œSpecification on the Survey and Certification Function of Recognized Organization Acting on Behalf of the Administration  of this Circular.
   
   

VI. DOCUMENTARY REQUIREMENTS

1. SEC Registration Certificate
   
   
2. Articles of Incorporation and by-laws
   
   
3. Name of signatory(ies)
   
   
4. List of surveyors, technical, managerial and support staff, and Code of Ethics
   
   
5. Classification Rule Book for the design, construction and certification of steel ships must be evaluated based on latest IMO Standards (SOLAS and its Annexes).
   
   
6. Documented system of the organization ™s development, implementation and maintenance of an effective internal quality system based on appropriate recognized quality standards no less effective than ISO series, and which, inter alia, ensures that:
   
   6.1    the organization ™s rule and/or regulation are established and maintained in a systematic manner, and are reviewed and amended following a documented procedure;
   
   6.2    the organization ™s rules and regulations are complied with;
   
   6.3    the responsibilities, authorities, and interrelation of personnel whose work affects the quality of the organization ™s service are defined and documented;
   
   6.4    all works are carried out under controlled condition;
   
   6.5    a supervisory system is in place, which monitors the actions and work, carried out by the organizations;
   
   6.6    a system of qualification of surveyors and continuous updating of their knowledge is implemented;
   
   6.7    records are maintained, demonstrating achievement of the required standards in the items covered by the services performed as well as the effective operation of the quality systems; and
   
   6.8    a comprehensive system of planned and documented internal audits of the quality-related activities in all locations is implemented.
   
   
7. ISO 9000 Series Certification and subsequent amendment thereto issued by internationally recognized certifying body/independent auditors.
   

VII. PROCEDURE FOR ACCREDITATION
AS CLASSIFICATION SOCIETY

1. The applicant shall file with the MARINA an application in writing duly supported by the above-mentioned documentary requirement.
   
   
2. Incomplete documentary requirements shall not be accepted. Mailed application with incomplete requirements shall be immediately returned to the applicant.
   
   
3. The Certificate of Accreditation shall be issued after evaluation of all documents submitted proves that classification society complies with the aforementioned requirements.

VIII. VALIDITY OF CERTIFICATE
The Certificate of Accreditation shall be valid for a period of three (3) years.  The certificate cannot be transferred or alienated in whatever manner and its use by another shall not be allowed.

IX. FEES AND CHARGES
The fees and charges shall be as follows:


The above fees shall be exclusive of the documentary stamps required by law to be affixed on the certificate.

X. SUBMISSION OF REPORT AND OTHER DOCUMENTS

The MARINA-accredited classification society accredited under this Memorandum Circular shall submit the following reports and/or documents:

1. Updated listings of ship surveyors (if any) - within fifteen (15) days from occurrence;
   
   
2. Replacement of approving officers/signatory(ies), if any - on or before replacement date; and,
   
   
3. Annual Accomplishment Report - with the first quarter of the following year.

The foregoing reports/documents shall either be the original or true copies of the original duly attested by an authorized representative of the company/entity.

XI. ADMINISTRATIVE SANCTIONS

1. The Administration shall issue Show Cause Order based on the following grounds:
   
   1.1    Failure to maintain stated classification society standards;
   
   1.2    Failure to maintain the conditions for accreditation in preceding section; and
   
   1.3    Willful and/or gross violation of any rule/regulation and of any of the general and specific Terms and Condition of Accreditation.
   
   
2. After due process, the following fines and penalties shall be imposed:

XII. REPEALING CLAUSE

Any provision of the other MARINA circulars otherwise inconsistent herewith is modified/amended accordingly.

XIII. SEPARABILITY CLAUSE

Should any provision or part of this Circular be declared by competent authority to be invalid or unconstitutional, the remaining provisions or parts hereof shall remain in full force and effect and shall continue to be valid and effective.

XIV. PUBLICATION AND EFFECTIVITY
This Memorandum Circular shall take effect fifteen (15) days after its publication once in the Official Gazette or in a newspaper of general circulation in the Philippines.

Adopted: 15 Mar. 2001

By Authority of the Board:

(SGD.) OSCAR M. SEVILLA
Administrator