Photo from Pexels | Andrey Che

This article was originally published on March 8, 2021 and has been updated to reflect recent legal developments.

This article is provided for general informational purposes only and does not create, nor shall it be construed as creating, a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. For advice on specific legal concerns, you are encouraged to engage the services of a qualified lawyer. You may also directly consult Alburo Alburo and Associates Law Offices for proper guidance tailored to your situation.

The views and information presented herein are based on the laws, rules, and jurisprudence prevailing at the time of writing. They do not take into account subsequent legal developments and should not be relied upon as a substitute for professional legal advice.

AT A GLANCE:

The Philippine Fisheries Code of the Philippines incentivizes commercial fishers to operate father in to the Exclusive Economic Zone (EEZ), an area beyond and adjacent to the territorial sea which shall not extend beyond 200 nautical miles from the baselines.

Republic Act No. 8550, otherwise known as the Philippine Fisheries Code of 1998, as amended by Republic Act No. 10654, provides incentives to commercial fisherfolk. It also provides incentives to encourage fishing vessel operators to fish farther in the EEZ and beyond in addition to the incentives already available from the Board of Investments (BOI).

Incentives for Municipal and Small-Scale Commercial Fisherfolk

Under Section 34, Municipal and Small-Scale Commercial Fisheries shall be granted incentives which shall include, but are not limited to, the following:

1. at least ten percent (10%) of the credit and the guarantee funds of government financing institutions shall be made available for post-harvest and marketing projects for the purpose of enhancing our fisherfolk competitiveness by reducing post-harvest losses. Qualified projects shall include, but shall not be limited to, ice plants, cold storage, canning, warehouse, transport and other related infrastructure projects and facilities; and
2. the Department shall undertake the following programs:
   1. A capability-building program for targeted parties shall be developed by the Department to promote greater bankability and credit worthiness of municipal and small-scale commercial fishers. Such program shall include organizing activities, technology transfer, and skills training related to commercial fishing as well as credit management. Groups and cooperatives organized under the program shall have priority access over credit and guarantee funds established under this Code; and
   2. an information campaign shall be conducted to promote the capability building and credit programs. The campaign shall ensure greater information dissemination and accessibility to targeted fisherfolk.

Incentives for Commercial Fishers to Fish Farther into the EEZ

In order to encourage fishing vessel operators to fish farther in the Exclusive Economic Zone (EEZ) and beyond, Section 35 provides incentives for improvement of fishing vessels and acquisition of fishing equipment shall be granted in addition to incentives already available from the Board of Investments (BOI). Such incentives shall be granted subject to exhaustive evaluation of resource and exploitation conditions in the specified areas of fishing operations. The incentive shall include, but not be limited to:

1. long term loans supported by guarantee facilities to finance the building and acquisition and/or improvement of fishing vessels and equipment;
2. commercial fishing vessel operators of Philippine registry shall enjoy a limited period of tax and duty exemptions on the importation of fishing vessels not more than five (5) years old, equipment and paraphernalia, the period of exemption and guidelines shall be fixed by the Department within ninety (90) days from the effectivity of the Philippine Fishery Code;
3. commercial fishing operators of the Philippine registry engaged in fisheries in the high seas shall be entitled to duty and tax rebates on fuel consumption for commercial fisheries operations. Guidelines shall be promulgated within ninety (90) days from the effectivity of this Philippine Fishery Code by the Department of Agriculture; and
4. all applicable incentives available under the Omnibus Investment Code of 1987: Provided, That the fishing operation project is qualified for registration and is duly registered with the BOI.

Related Articles: On Commercial Fisheries

Click here to subscribe to our newsletter

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

All rights reserved.