WHEREAS, Presidential Decree No. 806 was promulgated in recognition of the important role that overseas shipping plays in the economic development of the country;

WHEREAS, Presidential Decree No. 894 as amended by Presidential Decree Nos. 917 and 962 was promulgated to conserve the country ™s foreign exchange, promote the growth and development of the Philippines ™ overseas air and water industries, and to enhance national self-reliance in the transport of passengers and cargoes;

WHEREAS, the Philippines has available an ocean-going fleet to which a substantial share of the carriage of import and export goods needs to be ensured;

WHEREAS, the Philippines has ratified the UNCTAD Code of Conduct for Liner Conferences;

WHEREAS, there is a need for a more effective mechanism to implement P.D. 806 and P.D. 894 and attain their stated objectives;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby order the Maritime Industry Authority to issue the necessary rules and regulations within sixty (60) days from this date:

1. In accordance with the cargo-sharing formula of the UNCTAD Liner Code, to reserve at least 80% of the Philippine export and import liner cargo trade not covered by P.D. 1466, for flag carriers of the Philippines and that of the bilateral partner, with the cargo reserved to be shared equally by the flag carriers of the two countries. Cross-traders may participate only to the extent of the unreserved cargo.

2. To regulate all Philippine international sea-trade routes and Philippine international flag carriers to ensure adequacy of shipping space and prevent overtonnaging.

3. The Philippine Shippers Council, Philippine Ports Authority, Bureau of Customs, Central Bank, Philippine Coast Guard and all other relevant government agencies are hereby enjoined to give full support and cooperation to the Maritime Industry Authority for the effective and efficient implementation of this Executive Order and of the rules and regulations to be issued thereunder.

DONE in the City of Manila, this 19th day of January, in the year of Our Lord, nineteen hundred and eighty two.


By the President:

(SGD.) JOAQUIN T. VENUS, JR.
Deputy Presidential Executive Assistant