PHILIPPINES Trends and Developments Contributed by: Valeriano Del Rosario and Maria Francesca Bautista, VeraLaw
2020 Rules of Procedure for Admiralty Cases (“Admiralty Rules”). Under OPCA, the limitation fund is based on special drawing rights (SDRs), and it is SDR3 million for ships under 5,000 units of tonnage. For ships over 5,000 tons, there is an addi - tional SDR420 per ton over 5,000 tons. The OPCA fund is constituted by depositing money with the Maritime Industry Authority (MARINA) or by providing a financial guarantee, such as a P&I letter of guarantee. The pollution claims must be brought before the regional trial court, and recovery is from the fund constituted with MARINA. Limitation is not available if the owner is guilty of actual fault or privity. The limitation regime under the Admiralty Rules is completely different, and the source of the procedure is the Code of Commerce of the Phil - ippines. The basis of the limitation fund is the value of the ship. If the ship exists, then the ship should be abandoned to the court and the ship’s damaged value and freight at risk will constitute the limitation fund. On the other hand, if the ship is a total loss, then there is no necessity to aban - don the ship with the court, and the proceeds of the ship’s H&M may be deposited in court to The Philippines has a well-developed, highly regarded and valuable manpower industry devoted to the maritime sector. With over 7,600 islands that require the movement of goods and people by sea, it is not surprising that the Philippines has a long and significant seafaring tradition. The Philippines provides over 30% of the officers and crew to overseas internation - al ships. As stated by the Central Bank of the Philippines, the Philippines earned USD6.7 bil - lion and USD6.8 billion in the years of 2022 and form the limitation fund. The Philippines’ Strength
2023, respectively, from the salaries of Philippine seafarers, which made up 1.7% of Philippines’ GDP. The growth of the industry will most likely continue, as the next generation of young men and women see the opportunities that were real - ised by the generation that went before them. If one adds to that aspiration of youth, the better educational opportunities that are being offered by the Philippine Merchant Marine Academy, the Maritime Academy of Asia and the Pacific, and the privately funded academies of shipping pow - erhouses like NYK Line and the combination of Mitsui O.S.K. Lines/Magsaysay, the Philippines will remain a major player in the industry for dec - ades to come. In an effort to align domestic legislation with international conventions such as the 2006 Mari - time Labour Convention and the 1978 Interna - tional Convention on Standards of Training, Cer - tification and Watchkeeping for Seafarers, so as to ensure that Filipino seafarers have protections and opportunities in line with global standards, Republic Act 12021, titled “An Act Providing for the Magna Carta of Filipino Seafarers”, was enacted in September 2024. Filipino seafarers are constantly a preferred choice for foreign ship-owners, and approxi - mately 400,000 were employed worldwide as of 2020. (Konstantinos Galanakis, “The Filipino market supply of seafarers and cadets and their contribution to the global merchant fleet”, Safe- ty4Sea ,20 Jul 2023). The Philippines is known for producing well- educated, reliable, competent and adaptable officers and crew. The Magna Carta for Filipino Seafarers aims to provide benefits to current seafarers while also offering protections that will make seafaring more appealing to potential recruits.
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