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transportation law_collection of provisions vol 2

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    Regulation of Public Services CA 146: Public

    Service Act Sec 13.a

    Section 13. (a) The Commission shall have

    jurisdiction, supervision, and control over all

    public services and their franchises, equipment,and other properties, and in the exercise of its

    authority, it shall have the necessary powers

    and the aid of the public force: Provided, That

    public services owned or operated by

    government entities or government-owned or

    controlled corporations shall be regulated by

    the Commission in the same way as privately-

    owned public services, but certificates of public

    convenience or certificates of public

    convenience and necessity shall not be requiredof such entities or corporations: And provided,

    further, That it shall have no authority to

    require steamboats, motor ships and steamship

    lines, whether privately-owned, or owned or

    operated by any Government controlled

    corporation or instrumentality to obtain

    certificate of public convenience or to prescribe

    their definite routes or lines of service.

    Regulation of Ownership CA 146: Public

    Service Act Sec 16.a

    Section 16. Proceedings of the Commission,

    upon notice and hearing. - The Commission

    shall have power, upon proper notice andhearing in accordance with the rules and

    provisions of this Act, subject to the limitations

    and exceptions mentioned and saving

    provisions to the contrary :

    (a) To issue certificates which shall be known as

    certificates of public convenience, authorizing

    the operation of public service within the

    Philippines whenever the Commission finds that

    the operation of the public service proposed

    and the authorization to do business will

    promote the public interest in a proper and

    suitable manner. Provided, That thereafter,

    certificates of public convenience and

    certificates of public convenience and necessity

    will be granted only to citizens of the

    Philippines or of the United States or to

    corporations, co-partnerships, associations or

    joint-stock companies constituted and

    organized under the laws of the Philippines;Provided, That sixty per centum of the stock or

    paid-up capital of any such corporations, co-

    partnership, association or joint-stock company

    must belong entirely to citizens of the

    Philippines or of the United States: Provided,

    further, That no such certificates shall be issued

    for a period of more than fifty years.

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    Regulation of Ownership RA 9295

    SEC. 3.Definition of Terms. - As used in and forpurposes of this Act, the following terms, whether insingular or plural are hereby defined as follows:

    (a) "Domestic shipping" shall mean thetransport of passenger or cargo, or both, byships duly registered and licensed underPhilippine law to engage in trade andcommerce between Philippine ports andwithin Philippine territorial or internal waters,for hire or compensation, with general orlimited clientele, whether permanentoccasional or incidental, with or without fixedroutes, and done for contractual orcommercial purposes;

    (b) "Domestic trade" shall mean the sale,barter or exchange of goods, materials orproducts within the Philippines;

    (c) "Domestic Ship Operator" or "DomesticShip Owner" may be used interchangeablyand shall mean a citizen of the Philippines,or a commercial partnership wholly ownedby Filipinos, or a corporation at least sixtypercent (60%) of the capital of which isowned by Filipinos, which is duly authorizedby the Maritime Industry Authority (MARINA)to engage in the business of domesticshipping;

    (d) "Shipper" shall mean any person,partnership or corporation who shall procure

    for itself the services of a domestic shipoperator for the carriage of its cargo in thedomestic trade upon payment of propercompensation;

    (e) "MARINA" shall mean the MaritimeIndustry Authority;

    (f) "Ship" or "Vessel" may be usedinterchangeably and shall mean any kind,class or type of craft or artificial contrivancecapable of floating in water, designed to beused, or capable of being used as a meansof water transport in the domestic trade for

    the carriage of passengers or cargo, or both,utilizing its own motive power or that ofanother;

    (g) "Importation" shall mean the directpurchase, lease or charter of newlyconstructed or previously owned ships, orthe purchase of ship's spare parts fromforeign sources or from registeredenterprises operating in special economic

    zones as this terms is defined in RepublicAct No. 7916 entitled, "The SpecialEconomic Zone Act of 1995,"

    (h) "Spare parts" shall mean the replacementparts or components of vessel, including butnot limited to its hull, engines, machineries,

    equipment, appurtenances, necessariesaccessories, article, supplies, materials,steelplates, aluminum plates, other metalplates, communications, equipment, andother parts or components thereof, installedabroad the ships necessary for its safe andefficient navigation and operation;

    (i) "Certificate of Public Convenience' shallmean the license on authority issued byMARINA to a domestic ship operator toengage in domestic shipping;

    (j) "Cargo handling equipment' shall mean

    any machinery, gear or equipment used bythe ship operator or a duly authorized andlicensed port operator to service or handlecargo, on board the vessel at the port or inthe terminal or container yard such as, butnot limited to cranes, forklifts, top lifts,stackers, tractor heads, containers, palletboards and the like, including all spare parts,replacement parts, appurtenancesaccessories, articles, supplies and materialsthereof;

    (k) "Shipbuilding" shall mean the design,construction, launching and outfitting of all

    types of ships and watercraft;

    (l) "Ship repair" shall mean the overhaul,refurbishment renovation improvement, oralteration of the hull, machineries,equipment, outfits and components of alltypes of ships;

    (m) "Shipyard" shall mean the shipbuilding orrepair facilities which have the capability tolift vessels above the waterline in order toeffect ship work on vessels, appendages,structure, machinery and equipment; and

    (n) "Shipbuilder" or "Ship repairer" shallmean a citizen of the Philippines, or acommercial partnership owned by majority ofFilipinos or a corporation incorporated underthe laws of the Philippines, the capital ofwhich is owned or controlled in anyproportion by Filipinos or by foreignnationals, or by both such Filipinos or foreignnationals, or by corporations whether Filipinoor foreign-owned, which is duly authorizedby the MARINA to engage in the business of

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    shipbuilding or ship repair or to otherwiseoperate a shipyard, graving dock or marinerepair yard.

    CHAPTER IIIDEREGULATION OF THE DOMESTIC SHIPPING

    INDUSTRY-AUTHORITY

    OF THE MARITIME INDUSTRY AUTHORITY

    SEC. 5.Authority to Operate. - No franchise,certificate or any other form authorization for thecarriage of cargo or passenger, or both in thedomestic trade, shall be granted except of domesticship owners or operators.

    SEC. 6.Foreign Vessels Engaged in Trade and

    Commerce in the Philippines Territorial Waters. -

    No foreign vessel shall be allowed to transport

    passengers or cargo between ports or place within

    the Philippine territorial waters, except upon the grant

    Special Permit by the MARINA when no domesticvessels is available or suitable to provide the needed

    shipping service and public interest warrants the

    same.

    Regulation of Ownership RA 776

    Sec. 11. Nature, terms and conditions.

    A Certificate of Public Convenience and

    Necessity is a permit issued by the Board

    authorizing a person to engage in air

    commerce and/or air transportation, foreign

    and/or domestic.

    xxx

    Sec. 12. Citizenship requirement. Except as

    otherwise provided in the Constitution and

    existing treaty or treaties, a permit authorizing

    a person to engage in domestic air commerce

    and/or air transportation shall be issued only tocitizens of the Philippines.

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    Regulation of Rates CA 146

    Section 16. Proceedings of the Commission,

    upon notice and hearing. - The Commission

    shall have power, upon proper notice and

    hearing in accordance with the rules andprovisions of this Act, subject to the limitations

    and exceptions mentioned and saving

    provisions to the contrary :

    xxx

    (c) To fix and determine individual or joint rates,

    tolls, charges, classifications, or schedules

    thereof, as well as commutation, mileage,

    kilometrage, and other special rates which shall

    be imposed observed and followed thereafter

    by any public service: Provided, That the

    Commission may, in its discretion, approve

    rates proposed by public services provisionally

    and without necessity of any hearing; but it

    shall call a hearing thereon within thirty days,

    thereafter, upon publication and notice to the

    concerns operating in the territory affected:

    Provided, further, That in case the public service

    equipment of an operator is used principally or

    secondarily for the promotion of a private

    business, the net profits of said private business

    shall be considered in relation with the public

    service of such operator for the purpose of

    fixing the rates.

    xxx

    Regulation of Rates 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 newinvestment 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. 11.Rates. - Every domestic ship operator

    shall have the right to fix its own passenger pr

    cargo rates, or both.

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    Rule with respect to air transport RA 776

    Sec. 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 air transportation, and shall have thegeneral supervision and regulation of, and

    jurisdiction and control over, air carriers

    xxx

    (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 air 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 anair carrier may demand, collect or receive for

    any service in connection with air commerce.

    The Board may adopt any original, amended, or

    new individual, joint or special rates, charges or

    fares proposed by an air 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 justare reasonable shall be upon the air carrier

    proposing the same.

    xxx

    Rule with respect to air transport EO 219

    Domestic air transportation

    2.2 Tariffs and Fares. To the extent allowed by

    law passage freight and other charges shall be

    liberalized. However, passage rates shall

    likewise be deregulated for routes/links

    operated by more than one (1) common carrier.

    For routes serviced by a single operator,

    passage rates shall continue to be regulated.

    However, all freight rates, charges and passage

    rates shall be monitored by the CAB.

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    Regulation of authorized routes CA 146:

    Public Service Act Sec 13.b

    Section 13.(b) The term "public service"

    includes every person that now or hereafter

    may own, operate, manage, or control in thePhilippines, for hire or compensation, with

    general or limited clientele, whether

    permanent, occasional or accidental, and done

    for general business purposes, any common

    carrier, railroad, street railway, traction railway,

    sub-way motor vehicle, either for freight or

    passenger, or both with or without fixed route

    and whether may be its classification, freight or

    carrier service of any class, express service,

    steamboat or steamship line, pontines, ferries,and water craft, engaged in the transportation

    of passengers or freight or both, shipyard,

    marine railways, marine repair shop,

    [warehouse] wharf or dock, ice plant, ice-

    refrigeration plant, canal, irrigation system, gas,

    electric light, heat and power water supply and

    power, petroleum, sewerage system, wire or

    wireless communications system, wire or

    wireless broadcasting stations and other similar

    public services: Provided, however, That aperson engaged in agriculture, not otherwise a

    public service, who owns a motor vehicle and

    uses it personally and/or enters into a special

    contract whereby said motor vehicle is offered

    for hire or compensation to a third party or

    third parties engaged in agriculture, not itself or

    themselves a public service, for operation by

    the latter for a limited time and for a specific

    purpose directly connected with the cultivation

    of his or their farm, the transportation,

    processing, and marketing of agricultural

    products of such third party or third parties

    shall not be considered as operating a public

    service for the purposes of this Act.

    Regulation of authorized routes EO 292 Book

    IV Title XV Chapter 5 Sec 19

    Sec. 19. Powers and Functions of the Land

    Transportation Franchising and Regulatory

    Board. The Board shall:

    (1) Prescribe and regulate routes,

    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;

    (2) 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 prescribe the appropriate terms

    and conditions therefor;

    (3) Determine, prescribe, approve and

    periodically review and adjust reasonable fares,

    rates and other related charges, relative to the

    operation of public land transportation servicesprovided by motorized vehicles;

    xxx

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    Regulation of authorized routes EO 125-A

    Sec. 3. 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;

    xxx

    Regulation of authorized routes RA 776

    Sec. 13. Conduct of proceedings. The Board

    shall conduct its proceedings in such manner as

    will be conductive to the proper dispatch of

    business and to the ends of justice. All hearingsand investigations before the Civil Aeronautics

    Board shall be governed, by the rules of

    procedure adopted by the Board, and in the

    conduct thereof the Board shall be not be

    bound by the technical rules of evidence.

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    EO 185

    1. The entry of new operators into the domestic

    water transport industry shall be liberalized to

    enhance the level of competition and bring

    about reasonable rates and improved quality ofservices.

    1.1. Opening-up of all Routes

    Public interest and public convenience call for

    the levelling of the playing field for all existing

    and new operators in the domestic water

    transport industry. Competition, provided it is

    not ruinous, should be the norm to open-up the

    industry to new investments and to stimulate

    further economic activity.

    1.1.1. All routes/links shall have a minimum of

    two (2) operators. Routes/links presently

    serviced by only one (1) operator, or

    monopolized or cartelized as determined by

    MARINA, shall be open for entry to additional

    operators.

    1.1.2. All routes/links which have been serviced

    by any operator for an aggregate period of atleast five (5) years shall be open for entry to

    additional operators without limit.

    1.2. Encouraging Entry Into Developmental

    Routes

    The entry of operators in developmental routes

    as determined by MARINA shall be encouraged.

    An operator who pioneers in the provision of a

    certain technological level/type of shipping

    service in a developmental route shall beauthorized to charge market-accepted freight

    and passage rates differing from the authorized

    fork-tariff, if availed of; Provided, that the

    operator shall apply with MARINA for the

    adjustment in or adoption of such rates, the

    approval of which shall be accordingly granted;

    and Provided, further, that after five (5) years of

    such operation, the continued authorization of

    such rates, or adjustments thereof, shall be

    dependent on an evaluation undertaken by

    MARINA.

    1.3. Deregulating Entry of Newly-Acquired

    Vessels Into Routes Already Served By

    Franchised Operators

    1.3.1. An existing or new operator who acquires

    a vessel through importation, bareboat charter

    with option to purchase, lease-purchase, or

    local construction, shall be granted a Certificate

    of Public Convenience (CPC)/Provisional

    Authority (PA) and allowed to operate such

    vessel in any route, even if already being served

    by existing franchised operators for less than

    five (5) years, including developmental routes;

    Provided, that the prescribed application for

    CPC has been filed, and the basic requisites

    prior to issuance thereof have been complied

    with; Provided, further, that upon filing of the

    application for CPC, the presumption of public

    need shall be accorded in favor of the applicant,

    especially but not necessarily when any of thefollowing conditions shall be shown to obtain:

    1.3.1.1. The proposed operation shall introduce

    innovative, technologically-advanced, or

    pioneering shipping services in the route

    applied for, such as, but not limited to, the

    deployment of fast ferries, cruise vessels,

    container vessels and RoRo vessels, or the

    employment of modern and efficient on-board

    cargo handling equipment as an integral part of

    the vessel's operation;

    1.3.1.2. The proposed operation shall introduce

    improvements in the quality of service being

    provided in the applied route/link;

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    1.3.1.3. The vessel proposed to be deployed

    shall serve as an improvement over the existing

    vessels operating therein, either in terms of the

    vessel's age, size, capacity, hull material and

    other vessel technical features;

    1.3.1.4. The proposed operation shall foster

    cost-effective/competitive shipping service in

    the route proposed to be served;

    1.3.1.5. The proposed operation shall service

    priority tourist links as identified by the

    Department of Tourism in its Tourism Master

    Plan;

    1.3.1.6. The route/link applied for warrants

    additional operators/services, as determined by

    MARINA or by pertinent local government units,

    resulting in public invitations for additional

    services therein.

    This condition covers cases where there is a

    duly verified and legitimate public clamor for

    additional shipping services and it has been

    determined that existing authorized operators

    in the route/link have not been sensitive to an

    increase in demand by offering to increasecapacity only after another operator has offered

    to provide additional services therein; and

    1.3.1.7. Where existing authorized operators

    have abandoned their operations in a given

    route.

    Any oppositor to the application shall bear the

    burden of proving that there is no need for the

    proposed service.

    Provided, finally, that the vessel, upon issuance

    of the CPC, shall continuously serve its

    franchised route for at least one (1) year.

    1.4. Vessel Rerouting Or Amendment Of

    Authorized Route And Change In Sailing

    Schedules And Frequency

    Any change or amendment to the authorized

    routing pattern of a vessel can be undertakenby an existing authorized operator thru the

    following: (1) omission or deletion of port(s); (2)

    addition of other port(s); (3) omission and

    subsequent addition of port(s); (4) changing the

    sequence of port calls; (5) retention of

    authorized routing pattern but with addition of

    one or more ports. Vacated port(s) or

    link(s)/route(s) as a result of the above shall be

    looked into by MARINA insofar as adequacy or

    sufficiency of the remaining existing shippingservices is concerned:

    1.4.1. Approval shall be granted to applications

    for any of the above forms of change or

    amendment of authorized routing pattern by

    existing franchised liner vessels, Provided, that:

    1.4.1.1. No conflict in sailing schedules with

    other affected operators in the applied

    route/link shall result therefrom, otherwise, the

    MARINA shall prescribe, motu propio, sailing

    schedules that will best serve public interest

    and convenience;

    1.4.1.2. No route or link shall be left unserviced

    by the rerouting or route amendment, unless a

    substitute vessel from the applicant will be

    deployed therein, or vessel(s) from other

    existing authorized operators are left serving

    the route/link; and

    1.4.1.3. Shipping service in the previous

    route/link has been continuously rendered by

    the vessel for at least one (1) year from

    issuance of CPC.

    1.4.2. If the rerouting or route amendment of a

    vessel is caused by the deployment of a newly

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    acquired vessel (either through importation,

    bareboat charter with option to purchase, lease

    purchase or local construction) into the

    authorized route of an operator, the policy of

    liberalized entry into any route under Section

    1.3 above shall be applied.

    1.4.3. If no newly-acquired vessel is involved

    and an application is filed for the rerouting or

    route amendment of a vessel, where an entirely

    new route or link will be served, a new

    application for CPC shall be filed and entry

    therein will depend on whether any of the

    conditions or circumstances enumerated in

    Section 1.3 above has been proven to obtain.

    Priority shall, however, be given to newly-acquired vessels brought into the fleet, subject

    to Section 1.3, in the grant of CPC to a given

    route.

    1.4.4. In cases where only a temporary

    authority has so far been issued to a vessel,

    pending resolution of the basic application for

    CPC, an application for amendment of route or

    rerouting may be filed and considered by the

    MARINA, but the amended authority to beissued as a result thereof, shall be subject to the

    one (1) year maximum period per issuance to

    be cumulatively reckoned from the first PA

    issued in the original application.

    Regulation of equipment used CA 146

    Section 16. Proceedings of the Commission,

    upon notice and hearing. - The Commission

    shall have power, upon proper notice and

    hearing in accordance with the rules andprovisions of this Act, subject to the limitations

    and exceptions mentioned and saving

    provisions to the contrary :

    xxx

    (d) To fix just and reasonable standards,

    classifications, regulations, practices,

    measurement, or service to be furnished,

    imposed, observed, and followed thereafter by

    any public service.

    xxx

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    Regulation of equipment used RA 9295

    SEC. 9. Safety Standards. - All vessels operate by

    domestic ship operators shall at all times be in

    seaworthy condition properly equipped with

    adequate life-saving, communication, safetyand other equipment operated and maintained

    in accordance with the standards set by

    MARINA, and manned by duly licensed and

    competent vessel crew.

    The MARINA shall have the power to inspect

    vessels and all equipment on board to ensure

    compliance with safety standards.

    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 toprovide 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 standardsfor 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 capacityto 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 byevery 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 therules 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

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    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 anymatter 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. 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 air transportation, and shall have the

    general supervision and regulation of, and

    jurisdiction and control over, air carriers

    xxx

    (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 air 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 an

    air carrier may demand, collect or receive for

    any service in connection with air commerce.The Board may adopt any original, amended, or

    new individual, joint or special rates, charges or

    fares proposed by an air 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 air 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:

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    Regulation of period of franchise RA 776

    Sec. 11. Nature, terms and conditions. A

    Certificate of Public Convenience and Necessity

    is a permit issued by the Board authorizing a

    person to engage in air commerce and/or airtransportation, foreign and/or domestic.

    Any permit may be altered, amended, modified,

    suspended, cancelled or revoked by the Board

    in whole or in part, upon complaint or petition

    or upon the Board's initiative as hereinafter

    provided, whenever the Board finds such action

    to be in the public interest.

    There shall be attached to the exercise of the

    privileges granted by the permit, or amendment

    thereto, such reasonable terms, conditions or

    limitations as, in the judgment of the Board, the

    public interest may require.

    No permit shall confer any proprietary,

    property, or exclusive right in the use of any air

    space, civil airway, landing area or government

    air-navigation facility.

    The permit shall, among others, specify theterminal and intermediate points, if any,

    between which the air carrier is authorized to

    operate; the service to be rendered; the time of

    arrival and departure at each point, and the

    frequency of flights: Provided, That no change

    in routes, rates, schedules, or frequency nor

    supplemental or additional flights to those

    covered by an Air Commerce Permit or

    franchise shall be effected without prior

    approval of the Civil Aeronautics Board. Insofaras the operation is to take place without the

    Philippines, the permit shall designate the

    terminal and intermediate points only insofar as

    the Board shall deem practicable, and

    otherwise shall designate only the general route

    or routes to be followed.

    No carrier shall abandon any route, or part

    thereof for which a permit has been issued,

    unless upon findings by the Civil Aeronautics

    Board that such an abandonment is

    uneconomical and is in the public interest.

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    Governments right of requisition RA 7471

    Sec. 9. Requisition of Vessels. The President

    of the Philippines may, in times of war and

    other national emergency, requisition

    absolutely or temporarily, for any naval ormilitary purpose, any and all vessels of the

    Philippine registry. The Government shall pay

    the owner or operator of the vessel, based on

    normal conditions at the time of requisition;

    (a) The fair market value, if the vessel is taken

    absolutely, or

    (b) The fair charter value, if the vessel is taken

    temporarily.

    In case of disagreement, such fair value shall be

    determined by an arbitration committee

    composed of:

    (a) One (1) member to be appointed by the

    MARINA; chan robles virtual law library

    (b) One (1) member to be appointed by the

    owner or operator of the vessel; and chan

    robles virtual law library

    (c) One (1) member to be appointed by the two

    (2) members so appointed.

    The decision of the arbitration committee shall

    be final and binding on both parties.

    Governments right of requisition RA 9295

    SEC. 24. Temporary Take-Over of Operations. -

    In times of national emergency, when the public

    interest so requires, the State may during

    emergencies and under reasonable termsprescribed by it, temporary take over or direct

    the operations or any vessel engaged in

    domestic trade and commerce, or prescribe its

    rates or routes of operation. Immediately upon

    the cessation of the emergency, the State shall

    immediately reinstate to the domestic ship

    operation of its vessel under the same terms

    and conditions prior to the occurrence of the

    emergency.

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    Revocation of license CA 146

    Section 21. Every public service violating or

    failing to comply with the terms and conditions

    of any certificate or any orders, decisions or

    regulations of the Commission shall be subjectto a fine of not exceeding two hundred pesos

    per day for every day during which such default

    or violation continues; and the Commission is

    hereby authorized and empowered to impose

    such fine, after due notice and hearing.

    The fines so imposed shall be paid to the

    Government of the Philippines through the

    Commission, and failure to pay the fine in any

    case within the same specified in the order or

    decision of the Commission shall be deemed

    good and sufficient reason for the suspension of

    the certificate of said public service until

    payment shall be made. Payment may also be

    enforced by appropriate action brought in a

    court of competent jurisdiction. The remedy

    provided in this section shall not be a bar to, or

    affect any other remedy provided in this Act but

    shall be cumulative and additional to such

    remedy or remedies.

    Revocation of license RA 776

    Sec. 22. Modification, suspension or

    revocation. The Board, upon petition or

    complaint or upon its own initiative, may, by

    order entered after notice and opportunity forhearing, alter, amend, modify or suspend any

    permit, in whole or in part, if public

    convenience and necessity so require; or may

    revoke any permit, in whole or in part, for

    intentional failure to comply with any provision

    of this Act or any order, rule or regulation

    issued thereunder, or any term, condition or

    limitation of such permit: Provided, That the

    Board, for good cause, may, by order without

    notice and hearing suspend, for a period not toexceed thirty days, any permit or the exercise of

    any privilege or authority issued or granted

    under this Act whenever such step shall, in the

    judgment of the Board, be necessary to avoid

    serious or irreparable damage or inconvenience

    to the public. Any interested person may file

    with the Board a protest or memorandum in

    support of or in opposition to the alteration,

    amendment, modification, suspension, or

    revocation of any permit.

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    Protection of operators from foreign

    competition Tariff and Customs Code

    Sec. 902. Vessels Eligible for Coastwise Trade.

    The right to engage in the Philippine

    coastwise trade is limited to vessels carrying acertificate of Philippine registry.

    Sec. 905. Transportation of Passengers and

    Articles Between Philippine Ports. Passengers

    shall not be received at one Philippine port for

    any other such port by a vessel not licensed for

    the coastwise trade, except upon special

    permission previously granted by the Collector;

    and subject to the same qualification, articles

    embarked at a domestic port shall not be

    transported to any other port in the Philippines,either directly or by way of a foreign port, or for

    any part of the voyage, in any other vessel than

    one licensed for the coastwise trade.

    Sec. 1001. Ports Open to Vessels Engaged in

    Foreign Trade Duty of Vessel to Make Entry.

    Vessels engaged in the foreign trade shall

    touch at ports of entry only, except as

    otherwise specially allowed; and every such

    vessel arriving within a customs collectiondistrict of the Philippines from a foreign port

    shall make entry at the port of entry for such

    district and shall be subject to the authority of

    the Collector of the port while within his

    jurisdiction.

    The master of any war vessel employed by any

    foreign government shall not be required to

    report and enter on arrival in the Philippines,

    unless engaged in the transportation of articles

    in the way of trade.

    Sec. 1009. Clearance of Foreign Vessels To and

    From Coastwise Ports. Passengers or articles

    arriving from abroad upon a foreign vessel may

    be carried by the same vessel through any port

    of entry to the port of destination in the

    Philippines; and passengers departing from the

    Philippines or articles intended for export may

    be carried in a foreign vessel through a

    Philippine port.

    Upon such reasonable condition as he mayimpose, the Commissioner may clear foreign

    vessels for any port and authorize the

    conveyance therein of either articles or

    passengers brought from abroad upon such

    vessels; and he may likewise, upon such

    conditions as he may impose, allow a foreign

    vessel to take cargo and passengers at any port

    and convey the same upon such vessel to a

    foreign port.

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    Protection of operators from foreign

    competition RA 9295

    SEC. 6. Foreign Vessels Engaged in Trade and

    Commerce in the Philippines Territorial

    Waters. - No foreign vessel shall be allowed totransport passengers or cargo between ports or

    place within the Philippine territorial waters,

    except upon the grant Special Permit by the

    MARINA when no domestic vessels is available

    or suitable to provide the needed shipping

    service and public interest warrants the same.

    Quasi-judicial functions of regulatory agencies

    CA 146

    Section 16. Proceedings of the Commission,

    upon notice and hearing. - The Commission

    shall have power, upon proper notice andhearing in accordance with the rules and

    provisions of this Act, subject to the limitations

    and exceptions mentioned and saving

    provisions to the contrary :

    (a) To issue certificates which shall be known as

    certificates of public convenience, authorizing

    the operation of public service within the

    Philippines whenever the Commission finds that

    the operation of the public service proposed

    and the authorization to do business will

    promote the public interest in a proper and

    suitable manner. Provided, That thereafter,

    certificates of public convenience and

    certificates of public convenience and necessity

    will be granted only to citizens of the

    Philippines or of the United States or to

    corporations, co-partnerships, associations or

    joint-stock companies constituted and

    organized under the laws of the Philippines;Provided, That sixty per centum of the stock or

    paid-up capital of any such corporations, co-

    partnership, association or joint-stock company

    must belong entirely to citizens of the

    Philippines or of the United States: Provided,

    further, That no such certificates shall be issued

    for a period of more than fifty years.

    (b) To approve, subject to constitutional

    limitations any franchise or privilege granted

    under the provisions of Act No. Six Hundred and

    Sixty-seven, as amended by Act No. One

    Thousand and twenty-two, by any political

    subdivision of the Philippines when, in the

    judgment of the Commission, such franchise or

    privilege will properly conserve the public

    interests, and the Commission shall in so

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    approving impose such conditions as to

    construction, equipment, maintenance, service,

    or operation as the public interests and

    convenience may reasonably require, and to

    issue certificates of public convenience and

    necessity when such is required or provided by

    any law or franchise.

    (c) To fix and determine individual or joint rates,

    tolls, charges, classifications, or schedules

    thereof, as well as commutation, mileage,

    kilometrage, and other special rates which shall

    be imposed observed and followed thereafter

    by any public service: Provided, That the

    Commission may, in its discretion, approve

    rates proposed by public services provisionallyand without necessity of any hearing; but it

    shall call a hearing thereon within thirty days,

    thereafter, upon publication and notice to the

    concerns operating in the territory affected:

    Provided, further, That in case the public service

    equipment of an operator is used principally or

    secondarily for the promotion of a private

    business, the net profits of said private business

    shall be considered in relation with the public

    service of such operator for the purpose offixing the rates.

    (d) To fix just and reasonable standards,

    classifications, regulations, practices,

    measurement, or service to be furnished,

    imposed, observed, and followed thereafter by

    any public service.

    (e) To ascertain and fix adequate and

    serviceable standards for the measurement of

    quantity, quality, pressure, initial voltage, or

    other condition pertaining to the supply of the

    product or service rendered by any public

    service, and to prescribe reasonable regulations

    for the examination and test of such product or

    service and for the measurement thereof.

    (f) To establish reasonable rules, regulations,

    instructions, specifications, and standards, to

    secure the accuracy of all meters and

    appliances for measurements.

    (g) To compel any public service to furnish safe,adequate, and proper service as regards the

    manner of furnishing the same as well as the

    maintenance of the necessary material and

    equipment.

    (h) To require any public service to establish,

    construct, maintain, and operate any

    reasonable extension of its existing facilities,

    where in the judgment of said Commission,

    such extension is reasonable and practicable

    and will furnish sufficient business to justify the

    construction and maintenance of the same and

    when the financial condition of the said public

    service reasonably warrants the original

    expenditure required in making and operating

    such extension.

    (i) To direct any railroad, street railway or

    traction company to establish and maintain at

    any junction or point of connection or

    intersection with any other line of said road or

    track, or with any other line of any other

    railroad, street railway or traction to promote,

    such just and reasonable connection as shall be

    necessary to promote the convenience of

    shippers of property, or of passengers, and in

    like manner direct any railroad, street railway,

    or traction company engaged in carrying

    merchandise, to construct, maintain and

    operate, upon reasonable terms, a switch

    connection with any private sidetrack which

    may be constructed by any shipper to connect

    with the railroad, street railway or traction

    company line where, in the judgment of the

    Commission, such connection is reasonable and

    practicable and can be out in with safety and

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    will furnish sufficient business to justify the

    construction and maintenance of the same.

    (j) To authorize, in its discretion, any railroad,

    street railway or traction company to lay its

    tracks across the tracks of any other railroad,street railway or traction company or across any

    public highway.

    (k) To direct any railroad or street railway

    company to install such safety devices or about

    such other reasonable measures as may in the

    judgment of the Commission be necessary for

    the protection of the public are passing grade

    crossing of (1) public highways and railroads, (2)

    public highways and streets railway, or (3)

    railways and street railways.

    (l) To fix and determine proper and adequate

    rates of depreciation of the property of any

    public service which will be observed in a

    proper and adequate depreciation account to

    be carried for the protection of stockholders,

    bondholders or creditors in accordance with

    such rules, regulations, and form of account as

    the Commission may prescribe. Said rates shall

    be sufficient to provide the amounts required

    over and above the expense of maintenance to

    keep such property in a state of efficiency

    corresponding to the progress of the industry.

    Each public service shall conform its

    depreciation accounts to the rates so

    determined and fixed, and shall set aside the

    moneys so provided for out of its earnings and

    carry the same in a depreciation fund. The

    income from investments of money in such

    fund shall likewise be carried in such fund. This

    fund shall not be expended otherwise than for

    depreciation, improvements, new construction,

    extensions or conditions to the properly of such

    public service.

    (m) To amend, modify or revoke at any time

    certificate issued under the provisions of this

    Act, whenever the facts and circumstances on

    the strength of which said certificate was issued

    have been misrepresented or materially

    changed.

    (n) To suspend or revoke any certificate issued

    under the provisions of this Act whenever the

    holder thereof has violated or willfully and

    contumaciously refused to comply with any

    order rule or regulation of the Commission or

    any provision of this Act: Provided, That the

    Commission, for good cause, may prior to the

    hearing suspend for a period not to exceed

    thirty days any certificate or the exercise of anyright or authority issued or granted under this

    Act by order of the Commission, whenever such

    step shall in the judgment of the Commission be

    necessary to avoid serious and irreparable

    damage or inconvenience to the public or to

    private interests.

    (o) To fix, determine, and regulate, as the

    convenience of the state may require, a special

    type for auto-busses, trucks, and motor trucksto be hereafter constructed, purchased, and

    operated by operators after the approval of this

    Act; to fix and determine a special registration

    fee for auto-buses, trucks, and motor trucks so

    constructed, purchased and operated:

    Provided, That said fees shall be smaller than

    more those charged for auto-busses, trucks,

    and motor trucks of types not made regulation

    under the subsection.

    Section 17. Proceedings of Commission without

    previous hearing. - The Commission shall have

    power without previous hearing, subject to

    established limitations and exception and

    saving provisions to the contrary:

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    (a) To investigate, upon its own initiative, or

    upon complaint in writing, any matter

    concerning any public service as regards

    matters under its jurisdiction; to require any

    public service to furnish safe, adequate, and

    proper service as the public interest may

    require and warrant; to enforce compliance

    with any standard, rule, regulation, order or

    other requirement of this Act or of the

    Commission, and to prohibit or prevent any

    public service as herein defined from operating

    without having first secured a certificate of

    public convenience or public necessity and

    convenience, as the case may be and require

    existing public services to pay the fees provided

    for in this Act for the issuance of the proper

    certificate of public convenience or certificate

    of public necessity and convenience, as the case

    may be, under the penalty, in the discretion by

    the Commission, of the revocation and

    cancellation of any acquired rights.

    (b) To require any public service to pay the

    actual expenses incurred by the Commission in

    any investigation if it shall be found in the same

    that any rate, tool, charge, schedule, regulation,practice, act or service thereof is in violation of

    any provision of this Act or any certificate,

    order, rule, regulation or requirement issued or

    established by the Commission. The

    Commission may also assess against any public

    service costs not to exceed twenty-five pesos

    with reference to such investigation.

    (c) From time to time appraise and value the

    property of any public service, whenever in thejudgment of the Commission it shall be

    necessary so to do, for the purpose of carrying

    out any of the provisions of this Act, and in

    making such valuation the Commission may

    have access to and use any books, documents,

    or records in the possession of any department,

    bureau, office, or board of the government of

    the Philippines or any political subdivision

    thereof.

    (d) To provide, on motion by or at the request

    of any consumer or user of a public service, forthe examination and test of any appliance used

    for the measuring of any product or service of a

    public service, and for that purpose, by its

    agents, experts, or examiners to enter upon any

    premises where said appliances may be, and

    other premises of the public service, for the

    purpose of setting up and using on said

    premises any apparatus necessary therefor. and

    to fix the fees to be paid by any consumer or

    user who may apply to the Commission for suchexamination or test to be made, and if the

    appliance be found defective or incorrect to the

    disadvantage of the consumer or user to

    require the fees paid to be refunded to the

    consumer or user by the public service

    concerned.

    (e) To permit any street railway or traction

    company to change its existing gauge to

    standard steam railroad gauge, upon suchterms and conditions as the Commission shall

    prescribe.

    (f) To grant to any public service special permits

    to make extra or special trips within the

    territory covered by its certificates of public

    convenience, and to make special excursion

    trips outside of its own territory if the public

    interest or special circumstances required it:

    Provided, however, that in case a public service

    cannot render such extra service on its own line

    or in its own territory, a special permit for such

    extra service may be granted to any other

    public service.

    (g) To require any public service to keep its

    books, records, and accounts so as to afford an

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    intelligent understanding of the conduct of its

    business and to that end to require every such

    public service of the same class to adopt a

    uniform system of accounting. Such system

    conform to any system approved and confirmed

    by the Auditor General.

    (h) To require any public service to furnish

    annual reports of finances and operations. Such

    reports shall set forth in detail the capital stock

    issued, the amounts of said capital stock paid

    up and the form of payment thereof; the

    dividends paid, the surplus, if any and the

    number of stockholders, the consolidated and

    pending obligations and the interest paid

    thereon; the cost and value of the property ofthe operator; concessions or franchises and

    equipment; the number of employees and

    salaries paid to each class; the accidents to

    passengers, employees, and other person, and

    the causes thereof; the annual expenditures on

    improvements; the manner of their investment

    and nature of such improvements; the receipts

    and profits in each of the branches of the

    business and of whatever source; the operating

    and other expenses; the balance of profits andlosses; and a complete statement of the annual

    financial operations of the operator, including

    an annual balance sheet. Such reports shall also

    contain any information which the Commission

    may require concerning freight and passenger

    rates, or agreements, compromises or contracts

    affecting the same. Said reports shall cover a

    period of twelve months, ending on December

    thirty-first of each year, and shall be sworn to

    by the officer or functionary of the public

    service authorized therefor. The Commission

    shall also have power to require from time to

    time special reports containing such

    information as above provided for or on other

    matters as the Commission may deem

    necessary or advisable.

    (i) To require every public service to file with

    the Commission a statement in writing, verified

    by the oaths of the owner or the president and

    the secretary thereof, if a corporation, setting

    forth the name, title of office or portion, and

    post-office address, and the authority, power

    and duties of every officer, member of the

    board of directors, trustees executive

    committee, superintendent, chief or head of

    construction and operation thereof, in such

    form as to disclose the source and origin of

    each administrative act, rule, decision, order or

    other action of the operator of such public

    service; and, within ten days after any change is

    made in the title of, or authority, powers or

    duties appertaining to any such office or

    position, or the person holding the same, filed

    with the Commission a like statement, verified

    in like manner, setting forth such change.

    (j) To require any public service to comply with

    the laws of the Philippines and with any

    provincial resolution or municipal ordinance

    relating thereto and to conform to the duties

    imposed upon it thereby or by the provisions of

    its own character, whether obtained under anygeneral or special law of the Philippines.

    (k) To investigate any or all accidents that may

    occur on the property of any public service or

    directly or indirectly arising from or connected

    with its maintenance or operation in the

    Philippines; to require any public service to give

    the Commission immediate and effective notice

    of all any such accidents, and to make such

    order or recommendation with respect theretoas the public interest may warrant or require.

    (l) To require every public service s herein

    defined to file within complete schedules of

    every classification employed and of every

    individual or joint rate, toll fare or charge made,

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    charged or exacted by it for any product

    supplied or service rendered within the

    Philippines and, in the case of public carriers, to

    file with it a statement showing the itineraries

    or routes served as specified in such

    requirement.

    Quasi-judicial functions of regulatory agencies

    LTFRB EO 292

    Sec. 20. Decisions of the Board; Appeals

    therefrom or Review Thereof. The Board, in the

    exercise of its powers and functions, shall sitand render its decision 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.

    However, the Secretary may motu propio

    review and decision or action of the Board

    before the same becomes final.

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    Quasi-judicial functions of regulatory agencies

    Marina PD 474

    Section 12. Specific Powers and Functions of

    the Administrator. In addition to his general

    powers and functions, the Administrator shall;

    a. Issue Certificate of Philippine Registry for all

    vessels being used in Philippine waters,

    including fishing vessels covered by Presidential

    Decree No. 43 except transient civilian vessels

    of foreign registry, vessels owned and/or

    operated by the Armed Forces of the

    Philippines or by foreign governments for

    military purposes, and bancas, sailboats and

    other watercraft which are not motorized, of

    less than three gross tons;

    b. Provide a system of assisting various officers,

    professionals, technicians, skilled workers and

    seamen to be gainfully employed in shipping

    enterprises, priority being given to domestic

    needs;

    c. In collaboration and coordination with the

    Department of Labor, to look into, and promote

    improvements in the working conditions andterms of employment of the officers and crew

    of vessels of Philippine registry, and of such

    officers and crew members who are Philippine

    citizens and employed by foreign flag vessels, as

    well as of personnel of other shipping

    enterprises, and to assist in the settlement of

    disputes between the shipowners and ship

    operators and such officers and crew members

    and between the owner or manager of other

    shipping enterprises and their personnel;

    d. To require any public water transport utility

    or Philippine flag vessels to provide shipping

    services to any coastal areas 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;

    e. Investigate by itself or with the assistance of

    other appropriate government agencies or

    officials, or experts from the private sector, anymatter within its jurisdiction, except marine

    casualties or accidents which shall be

    undertaken by the Philippine Coast Guard;

    f. Impose, fix, collect and receive in accordance

    with the schedules approved by the Board, from

    any shipping enterprise or other persons

    concerned, such fees and other charges for the

    payment of its services;

    g. Inspect, at least annually, the facilities of port

    and cargo operators and recommend measures

    for adherence to prescribed standards of safety,

    quality and operations;

    h. Approve the sale, lease or transfer of

    management of vessels owned by Philippine

    Nationals to foreign owned or controlled

    enterprises;

    i. Prescribe and enforce rules and regulationsfor the prevention of marine pollution in bays,

    harbors and other navigable waters of the

    Philippines, in coordination with the

    government authorities concerned;

    j. Establish and maintain, in coordination with

    the appropriate government offices and

    agencies, a system of regularly and promptly

    producing, collating, analyzing and

    disseminating traffic flows, port operations,

    marine insurance services and other

    information on maritime matters;

    k. Recommend such measures as may be

    necessary for the regulation of the importation

    into and exportation from the Philippines of

    vessels, their equipment and spare parts;

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    l. Implement the rules and regulations issued by

    the Board of Transportation; lawphi1.net

    m. Compile and codify all maritime laws, orders,

    rules and regulations, decisions in leasing cases

    of courts and the Authority's procedures andother requirements relative to shipping and

    other shipping enterprises, make them available

    to the public, and, whenever practicable to

    publish such materials;

    n. Delegate his powers in writing to either of

    the Deputy Administrators or any other ranking

    officials of the Authority; Provided, That he

    informs the Board of such delegation promptly;

    and

    o. Perform such other duties as the Board may

    assign, and such acts as may be necessary and

    proper to implement this Decree.

    Quasi-judicial functions of regulatory agencies

    Marina RA 776

    Sec. 10. Powers and duties of the Board. (A)

    Except as otherwise provided herein, the Board

    shall have the power to regulate the economicaspect of air transportation, and shall have the

    general supervision and regulation of, and

    jurisdiction and control over, air 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.

    (B) The Board may perform such acts, conduct

    such investigations, issue and amend such

    orders, and make and amend such general or

    special rules, and regulations, and procedures

    as it shall deem necessary to carry 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 air 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 anair carrier may demand, collect or receive for

    any service in connection with air commerce.

    The Board may adopt any original, amended, or

    new individual, joint or special rates, charges or

    fares proposed by an air carrier if the proposed

    individual, joint, or special rates, charges or

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    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 air 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 air 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 air

    carriers as may be prescribed by or pursuant to

    law;

    (d) The inherent advantages or transportation

    by aircraft; and

    (e) The need of each air carrier for revenue

    sufficient to enable such air carrier, under

    honest, economical, and efficient management,

    to provide adequate and efficient air carrier

    service.

    (3) To authorize charters whether domestic or

    international and special air services or flight

    heretofore exercised by the Department of

    Commerce and Industry under Commonwealth

    Act Numbered Ninety-seven under such termsand conditions as in its judgment the public

    interest requires.

    (4) To approve or disapprove increase of

    capital, sale of equipment of an air carrier

    engaged in air commerce, consolidation,

    merger, purchase, lease, operating contract or

    acquisition and control between domestic air

    carriers; or between domestic air carriers and

    foreign air carriers; or between domestic air

    carriers and any person engaged in any phase of

    aeronautics.

    (5) To inquire into the management of the

    business of any air 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 air 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 air carrier; to prescribe

    the manner and form in which such reports

    shall be made; and to require from any air

    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 air carrier to file with it anycontract, agreement, understanding or

    arrangement, or a true copy thereof between

    such air 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 air

    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

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    Board and do not constitute an undue financial

    burden on such air carrier.

    (8) To require each officer and director of any

    air carrier to transmit a report describing the

    shares of stock or other interest held by such aircarrier 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.

    (D) The Board may investigate, upon complaint

    or upon its own initiative, whether any

    individual or air carrier, domestic or foreign, is

    violating any provision of this Act, or the rules

    and regulations issued thereunder, and shall

    take such action, consistent with the provisions

    of this Act, as may be necessary to prevent

    further violation of such provision, or rules and

    regulations so issued.

    (E) The Board may issue subpoena or subpoena

    duces tecum, require the attendance and

    testimony of witnesses in any matter or inquiry

    pending before the Board or its duly authorized

    representative, and require the production of

    books, papers, tariffs, 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) The Board may review, revise, reverse,

    modify, or affirm on appeal any administrative

    decision or order of the Administrator on

    matters pertaining to:

    (1) Grounding of airmen and aircrafts; or

    (2) Revocation of any certificate or the denial

    by the Administrator of issuance of any

    certificate; or

    (3) Imposition of civil penalty or fine in

    connection with the violation of any provisionof this Act or rules and regulations issued

    thereunder.

    (G) The Board shall have the power, either on

    its own initiative or upon review on appeal from

    an order or decision of the administrator, to

    determine whether to impose, remit, mitigate,

    increase, or compromise, such fines and civil

    penalties, as the case may be.

    (H) (1) The Civil Aeronautics Board shall be

    advised of, and shall consult with the

    Department of Foreign Affairs concerning the

    negotiation of any air agreement with foreign

    governments for the promotion, establishment,

    or development of foreign air transportation.

    (2) In exercising and performing its powers and

    duties under the provisions of this Act, the Civil

    Aeronautics Board shall take into consideration

    the obligation assumed by the Republic of thePhilippines in any treaty, convention or

    agreement with foreign countries on matters

    affecting civil aviation.

    Sec. 14. Delegation of authority to conduct

    hearings. The Board may designate in writing

    any of its members or any of its officer to

    conduct hearings and investigations on any

    matter pending before the Board and for that

    purpose the person so designated shall haveauthority to administer oaths, issue subpoena

    and subpoena duces tecum, require the

    attendance and testimony of witnesses,

    examine witnesses, make ocular inspection of

    or enter into any airline establishment, building,

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    place or premise in the performance of its

    official business.