Del Rosario Pandiphil Inc, our correspondents in the Philippines, has provided us with the following information.

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A recent cause of concern for vessels passing through the territorial waters of or docking at any port in the Province of Zambales, Philippines is Ordinance No. 28 Series of 2015 (copy attached) which mandates the collection of a “Provincial Coastwatch Environmental Monitoring System User Fee.” A number of Owners have already received a billing from the said provincial government beginning August 2015.

The ordinance appears to be aimed at monitoring entry of foreign vessels (e.g. Chinese fishing boats) in contested areas and avoid dumping of waste in Philippine waters. Further, it seems to be applicable to both international and domestic vessels and is likewise intended to prevent casualties, and monitor/enforce environmental laws.

The subject ordinance provides that:

• It applies to “any person or company who owns, leases, controls or operates a vessel.”
• Area covered is the territorial waters of Zambales (West Philippine sea) within 15 km. to 100 km. from the baseline.
• The International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA; composed of more than 80 member countries) provides for a “User Pays Principle” which allegedly covers vessels using coastal watch services. The same principle was adopted in the ordinance.
• Fees and charges in the use of the coastal watch system shall fall under the IALA’s User Pays Principle and “shall be added to the usual and standard shipping fees and charges prescribed by law.”
• The rates per GWT are as follows: US$0.03580 foreign non-passenger, US$0.04100 foreign passenger, US$8.25 foreign fishing vessel and US$12.57 other foreign commercial ships. For barges US$6,325 (annual) and motorized coal/ore carriers US$7,725 (annual). Domestic vessels are also subject to charges at lower rates.
• Ships docking at any port in Zambales that have “not paid the appropriate fees and charges after the given grace period shall not be allowed to leave, until such fees and charges are paid and clearance shall be issued by the Office of the Governor.”
• Ships docking at any port in Zambales that have “not paid the appropriate fees and charges after the given grace period shall not be allowed to leave, until such fees and charges are paid and clearance shall be issued by the Office of the Governor.”
• A private entity Xanatos Philippines Corporation (which appears to be a subsidiary of a Canadian Firm, Xanatos Marine, Ltd.) has been tasked to collect the fees and charges for the Province of Zambales.
• There is also an “Emission Testing” requirement for all vessels with engine or boiler of 45 horsepower or higher docking at any sea port in Zambales. The Certificate of Emission Compliance (“CEC”) issued by an accredited emission testing center is valid for 12 months renewable for the same period.

Based on its wordings, it is unclear whether the ordinance applies only to vessels docking at a Zambales port or even to vessels just passing through its territorial waters. If it applies to the latter case, said ordinance may run counter to a vessel’s right of innocent passage under international laws/conventions. Apparently, the ordinance was patterned after similar regulations in other countries applying the IALA User Pays Principle.

We are currently verifying with local authorities the specific coverage of as well other material information about said ordinance. We also seek confirmation from the IG Clubs’ local correspondents in other countries that there are indeed similar regulations so we can raise this in our discussions with the regulators.

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HR-2321-re-Issued-Ordinance-of-Zambalez-Province.pdf

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