EXPANSION OF THE SCOPE OF MEMORANDUM CIRCULAR REGARDING THE SUBMISSION OF LETTERS OF INTENT TO ACQUIRE VESSELS TO INCLUDE ACQUISITION FROM LOCAL SHIPOWNERS
“Submission of Letter of Intent to Acquire Vessels, whether by Importation, Local construction or by Acquisition from Local Shipowners
, prior to any negotiation for the actual acquisition of the same. In
line with the present policy of the government to expand and modernize
the Philippine Merchant Marine fleet, and in order to determine the
economic and technical feasibility of any intended acquisition of
vessels for their maximum utilization in the inter-island and overseas
trade, and to avert unnecessary expenditures attendant to any premature
negotiation for vessel-acquisitions, authority for which may
subsequently be denied by this Office for non-compliance with existing
rules, policies and guidelines on the matter, you are hereby required to
submit for proper evaluation and approval a letter of intent for the
acquisition of vessels, whether by importation by local construction, or
by purchase from existing local shipowners, prior to any negotiation
for the actual acquisition of the same, containing, among others, the
following information:1. General particulars of the vessel
2. Proposed acquisition cost of the vessel and financing scheme.
3. Type of operation envisioned, whether as contract or common carrier
4. Brief description of present shipping operations or
related shipping activities and membership in any maritime organization
like CISO, PSA, FSA, LAP, etc. andThe penalty imposed by Memorandum Circular No. 8 on importation and
local construction and the policy guidelines established by Memorandum
Circular No. 10 for the evaluation of requests for authority to acquire
vessels are reiterated herein.
This Memorandum Circular shall take effect on November 1, 1979.
Adopted: 1 Oct. 1979
(SGD.) GENEROSO F. TANSECO
Administrator