SUBJECT: The Rule on ‘Fisheries Code’ (RA 8550) and Commercial Fishing

I. Introduction

This memorandum provides an exhaustive analysis of the legal regime governing commercial fishing under Republic Act No. 8550, “The Philippine Fisheries Code of 1998,” as amended by Republic Act No. 10654. The primary objective is to delineate the rules, regulations, licensing requirements, and prohibitions applicable to commercial fishing vessels and operators within Philippine maritime jurisdictions. The analysis covers the statutory definitions, the scope of allowable fishing areas, the stringent licensing framework, specific gear and method restrictions, and the penal provisions for violations. This research is crucial for ensuring compliance with national laws and international obligations aimed at sustainable fisheries management.

II. Statement of Facts

The operative facts involve any entity or individual engaged in the capture of fishery resources using vessels of a certain size and capacity for the purpose of sale, trade, or distribution. This typically involves fishing vessels exceeding three (3) gross tons, operating within the Philippine Exclusive Economic Zone (EEZ), territorial sea, and, under specific conditions, within municipal waters. The activities are characterized by the use of advanced fish detection gear, large-scale nets, or other commercial-scale fishing methods. The legal issues arise from compliance with licensing, reporting, gear specifications, and area restrictions.

III. Statement of the Issue

The central legal issue is: What are the comprehensive rules and regulations governing commercial fishing activities under the Fisheries Code (R.A. 8550, as amended by R.A. 10654), and what are the legal consequences for non-compliance?

IV. Applicable Laws and Jurisprudence

A. Republic Act No. 8550 (The Philippine Fisheries Code of 1998)
B. Republic Act No. 10654 (An Act to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing, Amending R.A. 8550)
C. Presidential Decree No. 979 (The Marine Pollution Decree), as relevant to fishing operations
D. Republic Act No. 9147 (Wildlife Resources Conservation and Protection Act), concerning endangered aquatic species
E. Department of Agriculture Administrative Order No. 1, Series of 2021 (Implementing Rules and Regulations of R.A. 10654)
F. Philippine Constitution (1987), Article XII, Section 2 (State ownership and control of natural resources)
G. United Nations Convention on the Law of the Sea (UNCLOS), as incorporated by municipal law
H. Jurisprudence: People v. Lian, G.R. No. 132654. January 18, 2000 (Interpretation of illegal fishing); Tan v. People, G.R. No. 195002, July 30, 2014 (Application of penalties under the Fisheries Code).

V. Discussion

The legal framework for commercial fishing is built upon principles of sustainable development, conservation, and strict state regulation.

A. Definition and Scope of Commercial Fishing
Under Section 4(p) of the Fisheries Code, commercial fishing is defined as the taking of fishery species by passive or active gear for the primary purpose of sale, barter, or profit, involving fishing vessels of over three (3) gross tons. This distinguishes it from municipal fishing and aquaculture. The law governs operations in three main zones: 1) Within Philippine territorial waters; 2) Within the Exclusive Economic Zone (EEZ); and 3) In international waters, provided the vessel is Philippine-registered.

B. Licensing and Permit System
No person may operate a commercial fishing vessel without securing the requisite licenses and permits from the Bureau of Fisheries and Aquatic Resources (BFAR). Key requirements include:

Commercial Fishing Vessel License (CFVL): The primary license for the vessel itself (Sections 27-29).

Certificate of Philippine Registry: Proof of vessel nationality.

Gear License: Specific authorization for the type of fishing gear used.

Fish Catch Certificate and Transshipment Permit: For the unloading and transfer of catch, crucial for traceability under R.A. 10654.

Licenses are subject to renewal, may include conditions on fishing areas and seasons, and can be suspended or revoked for violations.

C. Area Restrictions and Zonal Management
A critical rule is the prohibition against commercial fishing in municipal waters, defined as waters within 15 kilometers from the coastline for municipalities and 7 kilometers for cities (Section 18). Exceptions are extremely limited and require prior ordinance from the local Sanggunian and a public hearing, effectively making the prohibition nearly absolute. Commercial fishing is permitted in the territorial sea (12-24 nautical miles from baselines) and the EEZ (up to 200 nautical miles), subject to the CFVL conditions.

D. Regulated Gear and Methods
The Fisheries Code and its IRR explicitly ban or regulate certain destructive methods:

Active Gear (e.g., trawls, purse seines) are generally prohibited within 7-15 km of shorelines (municipal waters) but may be allowed in deeper waters under strict regulation.

Illegal Methods: The use of dynamic, cyanide, and other poisonous substances is absolutely prohibited (Section 92). The amended Code also strongly regulates Fish Aggregating Devices (FADs) to prevent juvenile catch and bycatch.

By-Catch Regulations: Vessels must employ devices or methods to minimize by-catch of non-target species, juveniles, or endangered species.

E. Monitoring, Control, and Surveillance (MCS) under R.A. 10654
The 2015 amendments introduced a stringent MCS framework to combat Illegal, Unreported, and Unregulated (IUU) fishing:

Vessel Monitoring System (VMS): Mandatory installation on all commercial fishing vessels.

Catch Documentation and Traceability System: Requires accurate recording and reporting of all catch from point of harvest to point of sale/export.

Port State Measures: Strict controls on foreign fishing vessels seeking port entry and use.

Boardings and Inspections: Authorized officers may board and inspect vessels at sea or in port.

F. Penalties and Sanctions
Violations constitute criminal offenses and carry severe penalties:

Administrative Fines: Ranging from significant monetary penalties to confiscation of catch, gear, and vessel.

Criminal Penalties: Imprisonment under the principle of dolo or culpa as defined in the Revised Penal Code. For example, fishing with explosives carries a penalty of imprisonment from 5 to 10 years (Section 92).

Blacklisting: Vessels and operators engaged in IUU fishing may be placed on a national blacklist and denied future permits.

License Revocation: A permanent or temporary revocation of the CFVL.

VI. Comparative Analysis with Municipal Fishing

The Fisheries Code establishes a dual regime, strictly separating commercial fishing from municipal fishing. The latter is reserved for fisherfolk using vessels of 3 gross tons or less and is primarily governed by local government units (LGUs) through Fishery Ordinances. Municipal fisherfolk have preferential use rights over municipal waters. In contrast, commercial fishing is a nationally regulated activity, prohibited in those same waters, and subject to far more complex capital, reporting, and technological requirements. This dichotomy aims to protect the livelihood of small-scale fisherfolk from large-scale commercial incursion.

VII. Comparative Table: Key Features of Commercial vs. Municipal Fishing

Feature	Commercial Fishing	Municipal Fishing
Governing Authority	National (BFAR)	Local (LGU / Sanggunian)
Vessel Size Limit	Over 3 Gross Tons	3 Gross Tons or Less
Primary Legal Document	Commercial Fishing Vessel License (CFVL) from BFAR	Fishery Permit from Local Government
Allowed Area of Operation	Beyond municipal waters (Territorial Sea, EEZ)	Principally within municipal waters (0-15 km)
Gear Restrictions	Regulated active gear (trawls, purse seines) allowed in designated areas; specific bans on destructive methods.	Simpler, mostly passive gear; local ordinances may further restrict.
Reporting Requirement	Complex (VMS, Catch Documentation, Logbooks)	Simpler, as per local ordinance
Purpose	Large-scale, for sale, barter, profit	Primarily subsistence and local sale

VIII. Conclusion

The legal regime for commercial fishing under the Fisheries Code, as strengthened by R.A. 10654, is comprehensive and stringent. It is characterized by a national licensing system, a strict zonal prohibition from municipal waters, regulated gear and methods, and an advanced MCS framework designed to promote sustainability and combat IUU fishing. Non-compliance results in severe administrative, civil, and criminal penalties. The law creates a clear, albeit complex, operational boundary between large-scale commercial activities and small-scale municipal fishing.

IX. Recommendations

Entities engaged in commercial fishing must ensure all CFVLs, gear licenses, and vessel registrations are current and valid.

Strict adherence to the 15-kilometer limit from the coastline is paramount to avoid severe penalties for incursion into municipal waters.

Vessel operators must ensure full compliance with MCS requirements: operational VMS, accurate logbooks, and proper catch documentation.

Legal counsel should be consulted regularly to navigate the evolving regulatory issuances from BFAR and to ensure compliance with both national laws and international obligations.

Investment in legal, sustainable fishing practices and gear modification to minimize by-catch is not only regulatory but also mitigates long-term operational risks.

X. References

Republic Act No. 8550, The Philippine Fisheries Code of 1998.

Republic Act No. 10654 (2015).

DA-BFAR Administrative Order No. 1, Series of 2021.

The 1987 Constitution of the Republic of the Philippines.

People v. Lian, G.R. No. 132654, January 18, 2000.

Tan v. People, G.R. No. 195002, July 30, 2014.