PHILIPPINES Law and Practice Contributed by: Kerwin Tan, Eugene Kaw and Veronica Balbin, Tan Hassani and Counsels
provides greater clarity and, thus, greater protection to the aircraft owner. 2.8.2 Lessee’s/Operator’s Consent An aircraft owner, mortgagee or lessor may apply for deregistration of the aircraft if the lessee or the opera - tor executed a deregistration power of attorney to that effect. 2.8.3 Required Documentation The following are required in order to effect aircraft deregistration: • the notarised application; • the original certificate of registration; • the original certificate of airworthiness; • proof of payment of the CAAP prescribed fees; • CAAP Accounting Clearance of the current aircraft owner and aircraft operator; • the notarised bill of sale (if due to the sale of the aircraft) or termination of lease (if due to the termi - nation of an aircraft lease); and • other documents the CAAP may deem necessary. 2.8.4 Duration of Deregistration Process The period for deregistration may depend on whether there is co-operation from the lessee. If the lessee co-operates, the process may be faster. The length of the process will depend on how fast the parties can prepare the necessary documents for submission. Normally, it will take three to four weeks. If the lessee does not co-operate, the deregistration may take longer. Difficulties may be encountered in particular if the documents for the deregistration are executed outside the Philippines and must be apos - tilled or legalised. 2.8.5 Aviation Authority’s Assurances The CAAP does not provide advance assurances on aircraft deregistration. 2.8.6 Costs, Fees and Taxes Relating to Deregistration The deregistration fee is currently PHP750, and the reissuance of the certificate of registration and the
recording fee for the cancellation of annotation costs PHP400, exclusive of VAT. 2.8.7 Deregistration Power of Attorney The CAAP may recognise a deregistration power of attorney, which must be in English and notarised. If executed outside the Philippines, it must be apostilled or legalised. However, the CAAP retains discretion on its recognition on a case-by-case basis, and may require additional proof of authority to file. Advance lodging of the deregistration power of attor - ney is not required in order to be enforceable against a domestic party. Normally, the deregistration power of attorney is annotated on the certificate of registra - tion of the aircraft. 2.8.8 Documents Required to Enforce Deregistration Power of Attorney The deregistration power of attorney should be issued on the authority of, and accompanied by, a corporate authorisation, which must be in English and notarised. If executed outside the Philippines, it should be apos - tilled or legalised. 2.8.9 Choice of Laws Governing Deregistration Power of Attorney There is no need for the deregistration power of attor - ney to be governed by the laws of the Philippines. The choice of law of the parties will be held as valid by the court so long as such choice is not contrary to law, morals, public policy or public order. 2.8.10 Revocation of a Deregistration Power of Attorney Generally, the irrevocable power of attorney cannot be revoked. Under Philippine laws, an agency cannot be revoked if a bilateral contract depends on it or if it is the means of fulfilling an obligation. The power of attorney is coupled with the interest of the lessor over the aircraft. Since the enforcement of the rights and obligations under the aircraft lease depends on the power of attorney, such may not be revoked.
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