REGULATION OF THE TRANSPORTATION INDUSTRY
include transportation and communications as an integral part thereof, to participate
Department of Transportation (DOTr, formerly, DOTC)
EO 125 (as amended by EO 125-A)
Sec. 4. Mandate. The Ministry shall be the primary policy, planning, programming,
coordinating, implementing, regulating and administrative entity of the Executive
Branch of the government in the promotion, development and regulation of dependable
and coordinated networks of transportation and communication systems as well as in
the fast, safe, efficient and reliable postal, transportation and communications services.
To accomplish such mandate, the Ministry shall have the following objectives:
(a) Promote the development of dependable and coordinated networks of
transportation and communications systems;
(b) Guide government and private investment in the development of the country's
intermodal transportation and communications systems in a most practical,
expeditious, and orderly fashion for maximum safety, service, and cost effectiveness;
(c) Impose appropriate measures to that technical, economic and other
conditions for the continuing economic viability of the transportation and
communications entities are not jeopardized and do not encourage inefficiency and
distortion of traffic patronage;
(d) Develop an integrated plan for a nationwide transmission system in
accordance with national and international telecommunications service requirements
including, among others, radio and television broadcast relaying, leased channel
services and data transmission;
(e) Guide government and private investments in the establishment, operation
and maintenance of an international switching system for incoming and outgoing
telecommunications services;
(f) Encourage the development of a domestic telecommunications industry in
coordination with the concerned entities particularly, the manufacture of
communications/electronics equipment and components to complete and support, as
much as possible, the expansion, development, operation and maintenance of the
nationwide telecommunications network;
(g) Provide for a safe, reliable and efficient postal system for the country.
Sec. 5. Powers and Functions. To accomplish its mandate, the Department shall
have the following powers and functions:
(a) Formulate and recommend national policies and guidelines for the preparation
and implementation of integrated and comprehensive transportation and
communications systems at the national, regional and local levels;
(b) Establish and administer comprehensive and integrated programs for
transportation and communications, and for this purpose, may call on any agency,
corporation, or organization, whether public or private, whose development programs
and assist in the preparation and implementation of such program;
(c) Assess, review and provide direction to transportation and communication
research and development programs of the government in coordination with other
institutions concerned;
(d) Administer and enforce all laws, rules and regulations in the field of
transportation and communications;
(e) Coordinate with the Department of Public Works and Highways in the design,
location, development, rehabilitation, improvement, construction, maintenance and
repair of all infrastructure projects and facilities of the Department. However,
government corporate entities attached to the Department shall be authorized to
undertake specialized telecommunications, ports, airports and railways projects and
facilities as directed by the President of the Philippines or as provided by law;
(f) Establish, operate and maintain a nationwide postal system that shall include
mail processing, delivery services, and money order services and promote the art of
philately;
(g) Issue certificates of public convenience for the operation of public land and
rail transportation utilities and services;
(h) Accredit foreign aircraft manufacturers and/or international organizations for
aircraft certification in accordance with established procedures and standards;
(i) Establish and prescribe rules and regulations for identification of routes, zones
and/or areas of operations of particular operators of public land services;
(j) Establish and prescribe rules and regulations for the establishment, operation
and maintenance of such telecommunications facilities in areas not adequately served
by the private sector in order to render such domestic and overseas services that are
necessary with due consideration for advances in technology;
(k) Establish and prescribe rules and regulations for the operation and
maintenance of a nationwide postal system that shall include mail processing, delivery
services, money order services and promotion of philately;
(l) Establish and prescribe rules and regulations for issuance of certificates of
public convenience for public land transportation utilities, such as motor vehicles,
trimobiles and railways;
(m) Establish and prescribe rules and regulations for the inspection and
registration of air and land transportation facilities, such as motor vehicles, trimobiles,
railways and aircrafts;
(n) Establish and prescribe rules and regulations for the issuance of licenses to
qualified motor vehicle drivers, conductors, and airmen;
(o) Establish and prescribe the corresponding rules and regulations for the
enforcement of laws governing land transportation, air transportation and postal
services, including the penalties for violations thereof, and for the deputation of
appropriate law enforcement agencies in pursuance thereof;
(p) Determine, fix and/or prescribe charges and/or rates pertinent to the operation
of public air and land transportation utility facilities and services, except such rates
and/or charges as may be prescribed by the Civil Aeronautics Board under its charter,
and, in cases where charges or rates are established by international bodies or
associations of which the Philippines is a participating member or by bodies or
associations recognized by the Philippine government as the proper arbiter of such
charges or rates;
(q) Establish and prescribe the rules, regulations, procedures and standards for
the accreditation of driving schools;
(r) Administer and operate the Civil Aviation Training Center (CATC) and the
National Telecommunications Training Institute (NTTI); and
(s) Perform such other powers and functions as may be prescribed by law, or as
may be necessary, incidental, or proper to its mandate or as may be assigned from
time to time by the President of the Republic of the Philippines.
RA 10844
SEC. 15. Transfer of Agencies and Personnel. –
(a) The following agencies are hereby abolished, and their powers and functions,
applicable funds and appropriations, records, equipment, property, and personnel
transferred to the Department:
(1) Information and Communications Technology Office (ICTO);
(2) National Computer Center (NCC);
(3) National Computer Institute (NCI);
(4) Telecommunications Office (TELOF):
(5) National Telecommunications Training Institute (NTTT); and
(6) All operating units of the Department of Transportation and Communications
(DOTC) with functions and responsibilities dealing with communications.
All offices, services, divisions, units and personnel not otherwise covered by this Act
for transfer to the Department shall be retained under the DOTC which is hereby
renamed the Department of Transportation.
(b) The following agencies are hereby attached, to the Department for policy and
program coordination, and shall continue to operate and function in accordance with
the charters, laws or orders creating them, insofar as they are not inconsistent with this
Act:
(1) National Telecommunications Commission;
(2) National Privacy Commission; and
(3) Cybercrime Investigation and Coordination Center (CICC)
(i) All powers and functions related to cybersecurity including, but not limited to the
formulation of the National Cybersecurity Plan, establishment of the National Computer
Emergency Response Team (CERT), and the facilitation of international cooperation
on intelligence regarding cybersecurity matters are transferred to the Department; and
(ii) The CICC shall be chaired by the DICT Secretary.
(c) The laws and rules on government reorganization as provided for in Republic Act
No. 6656, otherwise known as the Reorganization Law, shall govern the reorganization
process of the Department.
AIR
Civil Aviation Authority of the Philippines
RA 9497
SEC. 4. Creation of the Authority. - There is hereby created an independent
regulatory body with quasi-judicial and quasi-legislative powers and possessing
corporate attributes to be known as the Civil Aviation Authority of the Philippines
(CAAP), hereinafter referred to as the "Authority" attached to the Department of
Transportation and Communications (DOTC) for the purpose of policy coordination. For
this purpose, the existing Air Transportation Office created under the provisions of
Republic Act No. 776, as amended, is hereby abolished.
Notwithstanding the foregoing, nothing in this Act shall diminish the powers and
functions of the Civil Aeronautics Board (CAB) as provided for under Republic Act. No.
776, also known as "The Civil Aeronautics Act of the Philippines", as amended.
(a) Establishment of Authority Headed by a Director General - The Authority shall
beheaded by a Director General of Civil Aviation, referred to in this Act as the "Director
General," who shall be appointed by the President of the Philippines and shall be
responsible for all civil aviation in the Philippines and the administration of this Act. The
Director General shall be appointed based on the qualifications herein provided and
shall have a tenure of office for a period of four (4) years. His appointment may be
extended for another non-extendible term of four (4) years and shall only be removed
for cause in accordance with the rules and regulations prescribed by the Civil Service
Commission.
(b) Responsibility of the Director General - The Director General shall be responsible
for the exercise of all powers and the discharge of all duties of the Authority and shall
have control over all personnel and activities of the Authority.
SEC. 21. Policies. - In the exercise and performance of its powers and duties under
this Act, the Authority shall consider the following, among other things, as being in the
public interest and in accordance with the public convenience and necessity:
(a) The development and utilization of the air potential of the Philippines;
(b) The encouragement and development of an air transportation system properly
adapted to the present and future of foreign and domestic commerce of the Philippines;
(c) The regulation of air transportation in such manner as to support sound economic
condition in such transportation and to improve the relations between air carriers;
(d) Ensuring the safety, quality, reliability, and affordability of air transport services for
the riding public; and
(e) The encouragement and development of a viable and globally competitive
Philippine aviation industry.
SEC. 24. Powers of the Board. - The Board shall have the following general powers:
(a) Provide comprehensive policy guidance for the promotion and development of the
Philippine aviation industry, as provided for in this Act;
(b) Ensure that the Authority performs its functions in a proper, efficient and effective
manner;
(c) Decide the objectives, strategies and policies of the Authority in accordance with
the provisions of this Act;
(d) Determine the organizational structure of the Authority in accordance with the
provisions of this Act, establish a human resources management system based on
merit and fitness, and adopt a rational compensation and benefits scheme;
(e) Exercise appellate powers on any decisions, findings and rulings of the Director
General, to issue subpoena ad testificandum or subpoena duces tecum requiring the
attendance and testimony of witnesses in any matter or inquiry pending before the
Board and require the production of books, papers, contracts, agreements and all other
documents submitted for purposes of this section to be under oath and verified by the
person in custody thereof as to the truth and correctness of data appearing in such
books, papers, tariffs, contracts, agreements and all other documents;
(f) Exercise appellate powers to order the taking of depositions in any proceeding, or
investigation, pending before the Board at any stage of such proceeding or
investigation;
(g) Use available services, equipment, personnel and facilities of other agencies of the
Philippine Government, on a reimbursable basis when appropriate and, on a similar
basis, to co-operate with those agencies in the establishment and use of services,
equipment and facilities of the Authority;
(h) Use the property of the Authority in such a manner as may appear to the Authority
to be requisite, advantageous or convenient with a view to making the best use of any
of the property of the Authority in relation to its functions under this Act;
(i) Invest such of the Authority's funds that are not immediately required for operating
expenses, or other immediate obligations in any business venture the Board may deem
appropriate, or in such secured note, government securities, and other negotiable
instruments that satisfy the guidelines prescribed by the Board. Funds of the Authority
shall be deposited in such commercial and universal banks as the Board may
determine, subject to the requirements of existing laws. The Board shall designate the
officials authorized to deposit in or withdraw funds from such depository banks;
(j) Promulgate rules and regulations as may be necessary in the interest of safety in air
commerce pertaining to the issuance of the airman's certificate including the licensing
of operating and mechanical personnel, type certificate for aircraft, aircraft engines,
propellers and appliances, airworthiness certificates, air carrier operating certificates,
air agency certificates, navigation facility and aerodrome certificates; air traffic routes;
radio and aeronautical telecommunications and air navigation aids; aircraft accident
inquiries; aerodromes, both public and private-owned; construction of obstructions to
aerodromes; height of buildings; antennae and other edifices; registration of aircrafts;
search and rescue; facilitation of air transports; operations of aircrafts, both for domestic
and international, including scheduled and non-scheduled; meteorology in relation to
civil aviation; rules of the air; air traffic services; rules for prevention of collision of
aircrafts, identification of aircraft; rules for safe altitudes of flight; and such other rules
and regulations, standards, governing other practices, methods and/or procedures as
the Director General may find necessary and appropriate to provide adequately for
safety regularity and efficiency in air commerce and air navigation;
(k) Impose and fix reasonable charges and fees for the use of government aerodromes
or air navigation facilities; for services rendered by the Authority in the rating of any
aerodrome or air navigation facilities, civil aviation schools and instructors, aircraft
repair stations, and aircraft radio and aeronautical telecommunications stations;
(l) Fix the reasonable charges to be imposed in the use of privately-owned air
navigation facilities and aerodromes;
(m) Adopt a system for the registration of aircraft as hereinafter provided;
(n) Determine and fix, landing fees, parking space fees, royalties on sales or deliveries,
direct or indirect, to any aircraft for its use of aviation gasoline, oil and lubricants, spare
parts, accessories and supplies, tools, other royalties, fees or rentals for the use of any
of the property under its management and control;
(o) Approve the annual and supplementary budget plan and utilization of retained
revenue;
(p) Exercise the corporate powers granted to the Authority;
(q) Upon its own initiative or the recommendation of the Director General or an
application of a private person, grant exemption from the requirements of observing
rules or regulations issued in accordance with this Act: Provided, That said grant of
exemption is not prejudicial to flight safety;
(r) Formulate rules and regulations concerning compliance of the carrier and the public
for the safe transport of goods and materials by air pursuant to international standards
or Annexes to the Chicago Convention; and
(s) In coordination with the appropriate government agency tasked to provide airport
security, shall:
(1) Prescribe reasonable regulation requiring that all passengers and all property
intended to be carried in the aircraft cabin in commercial air transport be screened by
weapon-detecting procedure or facilities employed or operated by employees or agents
of the air operator or foreign air operator prior to boarding the aircraft for such
transportation;
(2) Prescribe such other reasonable rules and regulations requiring such parties,
methods and procedures as the Director General may find necessary to protect persons
and property aboard aircraft operating in commercial air transport against acts of
criminal violence and aircraft piracy; and
(3) To the extent practicable, require uniform procedures for the inspection, detention,
and search of persons and property in domestic commercial air transport and
international commercial air transport to assure their safety and to assure that they will
receive courteous and efficient treatment by air operators and their agents and
employees.
SEC. 35. Powers and Functions of the Director General. - The Director General
shall be the chief executive and operating officer of the Authority. He shall have the
following powers, duties and responsibilities:
(a) To carry out the purposes and policies established in this Act; to enforce the
provisions of the rules and regulations issued in pursuance to said Act; and he shall
primarily be vested with authority to take charge of the technical and operational phase
of civil aviation matters;
(b) To designate and establish civil airways, to acquire, control, operate and maintain
along such airways, navigation facilities and to chart such airways and arrange for their
publication including the aeronautical charts or maps required by the international
aeronautical agencies, by utilizing the equipment, supplies or assistance of existing
agencies of the government as far as practicable;
(c) To issue airman's certificate specifying the capacity in which the holder thereof is
authorized to serve as airman in connection with aircraft and shall be issued only upon
the finding that the applicant is properly qualified and physically able to perform the
duties of the position. The certificate shall contain such terms, conditions and limitations
as the Director General may determine to be necessary to assure safety in air
commerce: Provided, however, That the airman's license shall be issued only to
qualified persons who are citizens of the Philippines or qualified citizens of countries
granting similar rights and privileges to citizens of the Philippines;
(d) To issue airworthiness certificate for aircraft which shall prescribe the duration of
such certificate, the type of service for which the aircraft may be used, and such other
terms and conditions and limitations as are required;
(e) To issue air carrier operating certificate in accordance with the minimum safety
standards for the operation of the air carrier to whom such certificate is issued. The air
carrier operating certificate shall be issued only to aircrafts registered under the
provisions of this Act;
(f) To issue type certificate for aircraft, aircraft engine, propellers and appliances;
(g) To inspect, classify and rate any air navigation facilities and aerodromes available
for the use of aircraft as to its suitability for such use and to issue a certificate for such
air navigation facility and aerodrome; and to determine the suitability of foreign
aerodromes, air navigation facilities as well as air routes to be used prior to the
operation of Philippine-registered aircraft in foreign air transportation and from time to
time thereafter as may be required in the interest of safety in air commerce;
(h) To issue certificates of persons or civil aviation schools giving instruction in flying,
repair stations, and other air agencies and provide for the examination and rating
thereof;
(i) To provide for the enforcement of the rules and regulations issued under the
provisions of this Act and to conduct investigation for violations thereto. In undertaking
such investigation, to require by subpoena ad testificandum or subpoena duces tecum,
the attendance and testimony of witnesses, the production of books, papers,
documents, exhibits matter, evidence, or the taking of depositions before any person
authorized to administer oath. Refusal to submit the reasonable requirements of the
investigation committee shall be punishable in accordance with the provisions of this
Act;
(j) To collect and disseminate information relative to civil aeronautics and the
development of air commerce and the aeronautical industry; to exchange with foreign
governments, information pertaining to civil aeronautics; and to provide for direct
communication on all matters relating to the technical or operational phase of
aeronautics with international aeronautical agencies:
(k) To acquire and operate such aircraft as may be necessary to execute the duties and
functions of the Authority prescribed in this Act;
(l) To plan, design, acquire, establish, construct, operate, improve, maintain, and repair
necessary aerodromes and other air navigation facilities;
(m) To collect and receive charges and fees for the registration of aircraft and for the
issuance and/or renewal of licenses or certificates for aircraft, aircraft engines,
propellers and appliances, and airmen as provided in this Act;
(n) To impose fines and/or civil penalties in respect thereto;
(o) To participate actively with the largest possible degree in the development of
international standardization of practices in aviation matters important to safe,
expeditious, and easy navigation, and to implement as far as practicable the
international standards, recommended practices and policies adopted by appropriate
international aeronautical agencies;
(p) To exercise and perform its powers and duties under this Act consistent with any
obligation assumed by the Republic of the Philippines in any treaty, convention or
agreement on civil aviation matters;
(q) To cooperate, assist and coordinate with any research and technical agency of the
government on matters relating to research and technical studies on design, materials,
workmanship, construction, performance, maintenance and operation of aircraft,
aircraft engines, propellers, appliances, and air navigation facilities including aircraft
fuel and oil: Provided, That nothing in this Act shall be construed to authorize the
duplication of the laboratory research, activities or technical studies of any existing
governmental agency;
(r) To designate such prohibited and danger areas, in consonance with the
requirements of the international aeronautical agencies and national security;
(s) To issue, deny, suspend, cancel or revoke any certificate, license pertaining to
aircraft, airmen and air agencies: Provided, That any order denying, suspending,
cancelling, revoking the certificate or license may he appealed to the Board, whose
decisions shall he final within fifteen (15) days from the date of notification of such
denial, cancellation or revocation;
(t) To grant authorization to civil aircraft or persons to carry instruments or photographic
devices to be used for aerial photography or taking of pictures by photograph or
sketching of any part of the Philippines; and
(u) Pursuant to a board resolution, to enter into, make and execute contracts of any
kind with any person, firm, or public or private corporation.
Civil Aeronautics Board
RA 776
Sec. 5. Composition of the Board. – The Civil Aeronautics Board shall be composed
of the Secretary of Commerce and Industry as Chairman, the Civil Aeronautics
Administrator, the Commanding Officer of the Philippine Force, and two other members
to be appointed by the President of the Philippines. They shall hold office at the
pleasure of the President and shall be entitled to per diem for each meeting actually
attended by them in such amount as may be fixed by the President. In case of absence
or incapacity of the Secretary of Commerce and Industry, the Civil Aeronautics
Administrator shall act as Chairman.
In case the Under-Secretary of Commerce and Industry and/or Deputy Administrator
act in the stead of the Secretary of Commerce and Industry and/or Administrator,
respectively, they shall hold office and be entitled to per diem for each meeting actually
attended by them in the Civil Aeronautics Board. No member of the Board shall have
any pecuniary interest in, or own any stock or bond of, any civil aeronautics enterprise.
Section 10. Powers and duties of the Board. – (A) Except as otherwise provided
herein, the Board shall have the power to regulate the economic aspect of
transportation, and shall have the general supervision and regulation of, and jurisdiction
and control over carriers as well as their property, property rights, equipment, facilities,
and franchise, in so far as may be necessary for the purpose of carrying out the
provisions of this Act.
(C) The Board shall have the following specific powers and duties:
(1) In accordance with the provisions of Chapter IV of this Act, to issue, deny, amend,
revise, alter, modify, cancel, suspend or revoke, in whole or in part, upon petition or
complaint, or upon its own initiative, any temporary operating permit or Certificate of
Public Convenience and Necessity: Provided, however, That in the case of foreign
carriers, the permit shall be issued with the approval of the President of the Republic of
the Philippines.
(2) To fix and determine reasonable individual, joint or special rates, charges or fares
which any carrier may demand, collect or receive for any service in connection with
commerce. The Board may adopt any original, amended, or new individual, joint or
special rates, charges or fares proposed by any carrier if the proposed individual, joint,
or special rates, charges or fares are not unduly preferential or unduly discriminatory
or unreasonable. The burden of proof to show that the proposed individual, joint or
special rates, charges or fares are just are reasonable shall be upon the carrier
proposing the same.
In fixing rates, charges, or fares under the provisions of this Act, the Board shall take
into consideration, among other factors:
(a) The effect of such rates upon the movement of traffic;
(b) The need in the public interest of adequate and efficient transportation of persons
and property by carriers at the lowest cost consistent with the furnishing of such service;
(c) Such standards respecting the character and quality of service to be rendered by
carriers as may be prescribed by or pursuant to law;
(d) The inherent advantages or transportation aircraft; and
(e) The need of each carrier for revenue sufficient to enable such carrier, under honest,
economical, and efficient management, to provide adequate and efficient carrier
service.
(3) To authorize charters whether domestic or international and special services or flight
heretofore exercised by the Department of Commerce and Industry under
Commonwealth Act Numbered Ninety-seven under such terms and conditions as in its
judgment the public interest requires.
(4) To approve or disapprove increase of capital, sale of equipment of any carrier
engaged in commerce, consolidation, merger, purchase, lease, operating contract or
acquisition and control between domestic carriers; or between domestic carriers and
foreign carriers; or between domestic carriers and any person engaged in any phase
of aeronautics.
(5) To inquire into the management of the business of any carrier and, to the extent
reasonably necessary for such inquiry, to obtain from such carrier, and from any person
controlling, or controlled by, or under common control with, such carrier, full and
complete reports and other information. Such reports shall be under oath whenever the
Board so requires.
(6) To require annual, monthly, periodical, and special reports from any carrier; to
prescribe the manner and form in which such reports shall be made; and to require
from any carrier specific answers to all questions upon which the Board may deem
information to be necessary. Such reports shall be under oath whenever the Board so
requires. The Board may also require any carrier to file with it any contract, agreement,
understanding or arrangement, or a true copy thereof between such carrier and any
other carrier or person, in relation to any traffic affected by the provisions of this Act.
(7) To prescribe the forms of any and all accounts, records, and memoranda of the
movement of traffic, as well as of the receipt and expenditures of money, and the length
of time such accounts, records and memoranda shall be preserved: Provided, That any
carrier may keep additional accounts, records and memoranda if they do not impair the
integrity of the accounts, records, or memoranda prescribed or approved by the Board
and do not constitute an undue financial burden on such carrier.
(8) To require each officer and director of any carrier to transmit a report describing the
shares of stock or other interest held by such carrier with any persons engaged in any
phase of aeronautics, and the holding of the stock in, and control of, other persons
engaged in any phase of aeronautics.
LAND
Land Transportation Office
EO 125 (as amended by EO 125-A)
Sec. 9. Assistant Secretaries and Service Chiefs. The Secretary shall also be
assisted by eight (8) Assistant Secretaries appointed by the President upon the
recommendation of the Secretary, each of whom shall respectively be responsible for
the following four (4) staff offices composed of eight (8) services and four (4) line offices,
and shall report to the respective Undersecretaries assigned by the Secretary, which
Undersecretary shall have control and supervision over said respective services and
offices:
(a) Office of the Assistant Secretary for Administrative and Legal Affairs;
1) Administrative Service, and
2) Legal Service
(b) Office of the Assistant Secretary for Finance and Comptrollership;
1) Finance and Management Service, and
2) Comptrollership Service
c) Office of the Assistant Secretary for Planning and Project Development;
1) Planning Service, and
2) Project Development Service
(d) Office of the Assistant Secretary for Management Information Service and
Project Management;
1) Management Information Service, and
2) Project Management Service
e) Office of the Assistant Secretary for Land Transportation;
(f) Office of the Assistant Secretary for Postal Services;
(g) Office of the Assistant Secretary for Telecommunications;
(h) Office of the Assistant Secretary for Air Transportation.
Each of the above-named services shall be headed by a service chief appointed by the
President upon the recommendation of the Secretary.
Sec. 11. Department Regional Offices. The Department shall have three (3)
Department Regional Offices in each of the administrative regions of the country: the
Department Regional Office for land Transportation, the Department Regional Office
for Telecommunications and the Department Regional Office for Postal Services. The
present Regional Offices of the Land Transportation Commission are hereby abolished
and their functions are transferred to the respective Department Regional Offices for
Land Transportation. The present Regional Offices of the Bureau of
Telecommunications are hereby abolished and their functions are transferred to the
respective Department Regional Offices for Telecommunications. The present
Regional Offices of the Bureau of Posts are hereby abolished and their functions are
transferred to the corresponding Department Regional Offices for Postal Services.
Each Department Regional Office shall be headed by a Department Regional Director
and assisted by a Department Assistant Regional Director. The present Airport Offices
of the Bureau of Air Transportation are hereby abolished and their functions are
transferred to the Department Airport Offices. The abolition of the herein Regional
Offices and the transfer of their functions shall be governed by the provisions of Section
15 (b) hereof.
The Department Regional Offices shall essentially be line in character and shall be
responsible for the delivery of all front line services of the Department.
For such purposes, the Department Regional Offices shall have within their respective
administrative regions, the following functions:
(a) Implement laws, and policies, plans, programs, projects, rules and regulations
of the Department;
(b) Provide efficient, and effective service to the people;
(c) Coordinate with regional offices of other departments, offices and agencies;
(d) Coordinate with local government units;
(e) Perform such other functions as may be provided by law.
Sec. 13. Bureau of Land Transportation. The Bureau of Land Transportation is
hereby created and shall have the functions of developing, formulating and
recommending plans, programs, policies, standards, specifications and guidelines
pertaining to land transportation. For such purposes, it shall, with the approval of the
Minister:
(a) Establish and prescribe rules and regulations for routes, zones and/or areas
of operations of particular operators of public land services; --REPEALED BY EO 125-
A
EO 292, TITLE XV
SECTION 9. Line Offices.—The Department shall have the following line offices:
(1) The Office of the Assistant Secretary for Land Transportation;
Land Transportation Franchising and Regulatory Board
EO 202
Sec. 1. Creation of the Land Transportation Franchising and Regulatory Board.
There is hereby created in the Department of Transportation and Communications, the
Land Transportation Franchising and Regulatory Board hereinafter referred to as the
"Board".
Sec. 2. Composition of the Board. The Board shall be composed of a Chairman and
two (2) members with the same rank, salary and privileges of an Assistant Secretary,
all of whom shall be appointed by the President of the Philippines upon
recommendation of the Secretary of Transportation and Communications. One (1)
member of the Board shall be a member of the Bar and shall have engaged in the
practice of law in the Philippines for at least five (5) years, another a holder of a degree
in civil engineering, and the other a holder of a degree in economics, finance or
management both with the same number of years of experience and practice.
Sec. 4. Supervision and Control Over the Board. The Secretary of Transportation
and Communications, through his duly designated Undersecretary, shall exercise
administrative supervision and control over the Land Transportation Franchising and
Regulatory Board.
Sec. 5. Powers and Functions of the Land Transportation Franchising and
Regulatory Board. The Board shall have the following powers and functions:
a. To prescribe and regulate routes of service, economically viable capacities
and zones or areas of operation of public land transportation services provided by
motorized vehicles in accordance with the public land transportation development plans
and programs approved by the Department of Transportation and Communications;
b. To issue, amend, revise, suspend or cancel Certificates of Public
Convenience or permits authorizing the operation of public land transportation services
provided by motorized vehicles, and to prescribe the appropriate terms and conditions
therefor;
c. To determine, prescribe and approve and periodically review and adjust,
reasonable fares, rates and other related charges, relative to the operation of public
land transportation services provided by motorized vehicles;
d. To issue preliminary or permanent injunction, whether prohibitory or
mandatory, in all cases in which it has jurisdiction, and in which cases the pertinent
provisions of the Rules of Court shall apply;
e. To punish for contempt of the Board, both direct and indirect, in accordance
with the pertinent provisions of, and the penalties prescribed by, the Rules of Court;
f. To issue subpoena and subpoena duces tecum and summon witnesses to
appear in any proceedings of the Board, to administer oaths and affirmations;
g. To conduct investigations and hearings of complaints for violation of the public
service laws on land transportation and of the Board's rules and regulations, orders,
decisions and/or rulings and to impose fines and/or penalties for such violations;
h. To review motu proprio the decisions/actions of the Regional Franchising and
Regulatory Office herein created;
i. To promulgate rules and regulations governing proceedings before the Board
and the Regional Franchising and Regulatory Office: Provided, That except with
respect to paragraphs d, e, f and g hereof, the rules of procedure and evidence
prevailing in the courts of laws should not be controlling and it is the spirit and intention
of said rules that the Board and the Regional Franchising and Regulatory Offices shall
use every and all reasonable means to ascertain facts in its case speedily and
objectively and without regard to technicalities of law and procedures, all in the interest
of due process;
j. To fix, impose and collect, and periodically review and adjust, reasonable fees
and other related charges for services rendered;
k. To formulate, promulgate, administer, implement and enforce rules and
regulations on land transportation public utilities, standards of measurements and/or
design, and rules and regulations requiring operators of any public land transportation
service to equip, install and provide in their utilities and in their stations such devices,
equipment facilities and operating procedures and techniques as may promote safety,
protection, comfort and convenience to persons and property in their charges as well
as the safety of persons and property within their areas of operations;
l. To coordinate and cooperate with other government agencies and entities
concerned with any aspect involving public land transportation services with the end in
view of effecting continuing improvement of such services; and
m. To perform such other functions and duties as may be provided by law, or as
may be necessary, or proper or incidental to the purposes and objectives of this
Executive Order.
Sec. 6. Decision of the Board; Appeals therefrom and/or Review thereof. The
Board, in the exercise of its powers and functions, shall sit and render its decisions en
banc. Every such decision, order, or resolution of the Board must bear the concurrence
and signature of at least two (2) members thereof.
The decision, order or resolution of the Board shall be appealable to the Secretary
within thirty (30) days from receipt of the decision: Provided, That the Secretary may
motu proprio review any decision or action of the Board before the same becomes final.
Sec. 7. Creation of Regional Franchising and Regulatory Offices. There shall be
a Regional Franchising and Regulatory Office in each of the administrative regions of
the country which shall be headed by a Board Regional Manager having the rank,
salary and privileges of a Department Assistant Regional Director. The Regional
Franchising and Regulatory Offices shall hear and decide uncontested
applications/petitions for routes, within their respective administrative regions:
Provided, That applications/petitions for routes extending their respective territorial
jurisdictions shall be heard and decided by the Board.
See also DOTC Department Order 2015-011
WATER
Maritime Industry Authority
EO 125 (as amended by EO 125-A)
Section 14 of said Executive Order is hereby renumbered as Section 12 and amended
to read as follows:
"Sec. 12. Maritime Industry Authority. The Maritime Industry Authority is hereby
retained and shall have the following functions:
(a) Develop and formulate plans, policies, programs, projects, standards,
specifications and guidelines geared toward the promotion and development of the
maritime industry, the growth and effective regulation of shipping enterprises, and for
the national security objectives of the country;
(b) Establish, prescribe and regulate routes, zones and/or areas of operation of
particular operators of public water services;
(c) Issue Certificates of Public Convenience for the operation of domestic and
overseas water carriers;
(d) Register vessels as well as issue certificates, licenses or documents
necessary or incident thereto;
(e) Undertake the safety regulatory functions pertaining to vessel construction
and operation including the determination of manning levels and issuance of certificates
of competency to seamen;
(f) Enforce laws, prescribe and enforce rules and regulations, including penalties
for violations thereof, governing water transportation and the Philippine merchant
marine, and deputize the Philippine Coast Guard and other law enforcement agencies
to effectively discharge these functions;
(g) Undertake the issuance of licenses to qualified seamen and harbor, bay and
river pilots;
(h) Determine, fix and/or prescribe charges and/or rates pertinent to the operation
of public water transport utilities, facilities and services except in cases where charges
or rates are established by international bodies or associations of which the Philippines
is a participating member or by bodies or associations recognized by the Philippine
Government as the proper arbiter of such charges or rates.
(i) Accredit marine surveyors and maritime enterprises engaged in shipbuilding,
shiprepair, shipbreaking, domestic and overseas shipping ship management and
agency;
(j) Issue and register the continuous discharge book of Filipino seamen;
(k) Establish and prescribe rules and regulations, standards and procedures for
the efficient and effective discharge of the above functions;
(l) Perform such other functions as may now or hereafter be provided by law.
RA 9295
SEC. 8. Deregulation of the Domestic Shipping Industry. - In order to encourage
investments in the domestic shipping industry by existing domestic ship operators and
attract new investment from new operators and investors, domestic ship operators are
hereby authorized to establish their own domestic shipping rates: Provided, That
effective competition is fostered and public interest is served.
The MARINA shall monitor all shipping operations and exercise regulatory intervention
where it is established after due process that public interest needs to be protected and
safeguarded.
SEC. 10. Jurisdiction; Power; and Duties of MARINA. - The MARINA shall have the
power and authority to:
(1) Register vessels;
(2) Issue certificates of public convenience or any extensions or amendments thereto,
authorizing the operation of all kinds. Classes and types of vessels in domestic
shipping: Provided, That no such certificate shall be valid for a period of more than
twenty-five (25) years;
(3) Modify, suspend or revoke at any time upon notice and hearing, any certificate,
license or accreditation it may have issued to any domestic ship operator;
(4) Establish and prescribe routes, zones or areas of operations of domestic ship
operators;
(5) Require any domestic ship operator to provide shipping services to any coastal area,
island or region in the country where such services are necessary for the development
of the area, to meet emergency sealift requirements, or when public interest so
requires;
(6) Set safety standards for vessels in accordance with applicable conventions and
regulations;
(7) Require all domestic ship operators to comply with operational and safety standards
for vessels set by applicable conventions and regulations, maintain its vessels in safe
and serviceable conditions, meet the standards of safety of life at sea and safe manning
requirements, and furnish safe, adequate, efficient, reliable and proper service at all
times;
(8) Inspect all vessels to ensure and enforce compliance with safety standards and
other regulations;
(9) Ensure that all domestic ship operators shall have the financial capacity to provide
and sustain safe, reliable, efficient and economic passenger or cargo service, or both;
(10) Determine the impact which any new service shall have to the locality it will serve;
(11) Adopt and enforce such rules and regulations which will ensure compliance by
every domestic ship operator with required safety standards and other rules and
regulations on vessel safety;
(12) Adopt such rules and regulations which ensure the reasonable stability of
passengers and freight rates and, if necessary, to intervene in order to protect public
interest;
(13) Hear and adjudicate any complaint made in writing involving any violation of this
law or the rules and regulations of the Authority;
(14) Impose such fines and penalties on, including the revocations of licenses of any
domestic ship operator who shall fail to maintain its vessels in safe and serviceable
condition, or who shall violate or fail to comply with safety regulations;
(15) Investigate any complaint made in writing against any domestic ship operator, or
any shipper, or any group of shippers regarding any matter involving violations of the
provisions of this Act;
(16) Upon notice and hearing, impose such fines, suspend or revoke certificates of
public convenience or other license issued, or otherwise penalize any ship operator,
shipper or group of shippers found violating the provisions of this Act; and
(17) Issue such rules and regulations necessary to implement the provisions of this Act:
Provided, That such rules and regulations cannot change or in any way amend or be
contrary to the intent and purposes of this Act.
SEC. 11. Rates. - Every domestic ship operator shall have the right to fix its own
passenger pr cargo rates, or both.
COMMON CARRIERS
New Civil Code
Article 1766. In all matters not regulated by this Code, the rights and obligations of
common carriers shall be governed by the Code of Commerce and by special laws.
Definition
Article 1732. Common carriers are persons, corporations, firms or associations
engaged in the business of carrying or transporting passengers or goods or both, by
land, water, or air, for compensation, offering their services to the public.
Classes of Common Carriers
Article 1732, supra.
Article 1733. Common carriers, from the nature of their business and for reasons of
public policy, are bound to observe extraordinary diligence in the vigilance over the
goods and for the safety of the passengers transported by them, according to all the
circumstances of each case.
Such extraordinary diligence in the vigilance over the goods is further expressed in
articles 1734, 1735, and 1745, Nos. 5, 6, and 7, while the extraordinary diligence for
the safety of the passengers is further set forth in articles 1755 and 1756.
Article 1755. A common carrier is bound to carry the passengers safely as far as
human care and foresight can provide, using the utmost diligence of very cautious
persons, with a due regard for all the circumstances.
Nature of Franchise, Business, Power of State to Regulate
Article 1765. The Public Service Commission may, on its own motion or on petition of
any interested party, after due hearing, cancel the certificate of public convenience
granted to any common carrier that repeatedly fails to comply with his or its duty to
observe extraordinary diligence as prescribed in this Section.
Common Carriage of Goods
Liability and presumption of negligence
Article 1733, supra.
Article 1734. Common carriers are responsible for the loss, destruction, or
deterioration of the goods, unless the same is due to any of the following causes only:
(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;
(2) Act of the public enemy in war, whether international or civil;
(3) Act or omission of the shipper or owner of the goods;

(4) The character of the goods or defects in the packing or in the containers;

(5) Order or act of competent public authority.

Article 1735. In all cases other than those mentioned in Nos. 1, 2, 3, 4, and 5 of the
preceding article, if the goods are lost, destroyed or deteriorated, common carriers are
presumed to have been at fault or to have acted negligently, unless they prove that
they observed extraordinary diligence as required in article 1733.

Exemption from Liability

Natural Disaster

Article 1734. Common carriers are responsible for the loss, destruction, or
deterioration of the goods, unless the same is due to any of the following causes only:

(1) Flood, storm, earthquake, lightning, or other natural disaster or calamity;

Article 1739. In order that the common carrier may be exempted from responsibility,
the natural disaster must have been the proximate and only cause of the loss. However,
the common carrier must exercise due diligence to prevent or minimize loss before,
during and after the occurrence of flood, storm or other natural disaster in order that
the common carrier may be exempted from liability for the loss, destruction, or
deterioration of the goods. The same duty is incumbent upon the common carrier in
case of an act of the public enemy referred to in article 1734, No. 2.

Article 1740. If the common carrier negligently incurs in delay in transporting the goods,
a natural disaster shall not free such carrier from responsibility.

Code of Commerce

ARTICLE 361. The merchandise shall be transported at the risk and venture of the
shipper, if the contrary has not been expressly stipulated. As a consequence, all the
losses and deterioration which the goods may suffer during the transportation by reason
of fortuitous event, force majeure, or the inherent nature and defect of the goods, shall
be for the account and risk of the shipper. Proof of these accidents is incumbent upon
the carrier.