Free Transportation of Relief Goods Act

Senate Difice of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 26 MAR 25 A10:13 First Regular Session ) SENATE RECEIVED BY: S. No. 2017 Introduced by Senator JV Ejercito AN ACT PROVIDING FOR FREE FREIGHT SERVICES IN THE TRANSPORTATION OF RELIEF GOODS TO CALAMITY-STRICKEN AREAS EXPLANATORY NOTE The Philippines stands as the world's most disaster-prone nation, according to the World Risk Index 2025, facing increasing threats from floods, storms, droughts, and earthquakes—hazards that are becoming more severe due to climate change. I This data corroborates the recent back-to-back disasters that transpired last November 2025 in Cebu, which consisted of a 6.9 earthquake and Typhoon Tino, then followed by Super Typhoon Uwan that struck Central Luzon and parts of the Visayas.2 These disasters left a devastating aftermath on both the environment and the people of the country. 3 A landmark law governing disaster response in the Philippines is Republic Act No. 10121, also known as the Philippine DRRM Act of 2010. This law empowers local government units (LGUs) to prepare for and respond to the needs of their constituents, 1 Hernando-Malipot, M. (2025, September 26). Philippines tops WorldRiskIndex 2025 as world's most disaster- prone country. Manila Bulletin. https://mb.com.ph/2025/09/26/philippines-tops-worldriskindex-2025-as-worlds- most-disaster-prone-country 2 From earthquake to typhoons: Philippines struggles against relentless catastrophes / IFRC. (2025, October 11). https://www.ifrc.org/press-release/earthquake-typhoons-philippines-struggles-against-relentless-catastrophes 3 Clores, D. S. K. (2025, December 24). From storms to earthquakes: How natural calamities affected Filipinos in 2025. INQUIRER.net. https://newsinfo.inquirer.net/2158425/from-storms-to-earthquakes-how-natural-calamities- affected-filipinos-in-2025

and it established the Quick Response Fund (QRF) to support immediate relief and recovery efforts. However, despite these mechanisms for rapid response, procedural gaps remain. Logistical bottlenecks continue to hinder operations, and delays in government assistance at the household level are often experienced, particularly when road access is disrupted. A key challenge contributing to these delays is the country's geography— being an archipelago-which necessitates the use of both sea and air transport for effective disaster response. 4 To address these gaps, this proposed legislation establishes a formal mechanism to waive transportation costs for relief donations intended for disaster- stricken areas in the Philippines. By providing free freight services for essential goods such as food, water, and medicine, the measure aims to encourage greater public participation in relief efforts. The bill recognizes that the timely delivery of humanitarian aid is critical to the survival of displaced populations during emergencies. Thus, removing logistical and financial barriers is essential to ensure that assistance reaches affected communities as quickly and efficiently as possible. In light of the foregoing, the immediate passage of this legislation is earnestly sought. 00=. JV EJERCITO 4 Bollettino, V., Alcayna, T., Enriquez, K., & Vinck, P. (2018). Perceptions of disaster resilience and preparedness in the Philippines. Harvard Humanitarian Initiative. https://hhi.harvard.edu/publications/perceptions-disaster- resilience-and-preparedness-philippines

Senate Office of tue secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES MAR 25 A10:13 First Regular Session RECEIVED BY: SENATE S. No. 2017 Introduced by Senator JV Ejercito AN ACT PROVIDING FOR FREE FREIGHT SERVICES IN THE TRANSPORTATION OF RELIEF GOODS TO CALAMITY-STRICKEN AREAS Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the Free Transportation

2 Act Relief Goods Act.

Sec. 2. Declaration of Policy. - It is the policy of the State to strengthen the

existing quick response mechanisms to address the needs of the people during disasters and emergencies. To this end, the State shall encourage altruism among the citizens and engage the services of public and private common carriers, freight forwarders, freight companies, and other logistics companies to 8 collect, sort, store, transport, and deliver relief goods donated by international and local donors to areas declared in a "state of calamity" in the most economical, reliable, speedy, and secure manner.

Sec. 3. Definition of Terms. - As used in this Act:

a) Arrastre refers to the fee for handling and hauling cargo at the port. It covers the cost of unloading cargo from ships, moving it within the port area, and loading it onto trucks or other means of transportation for further delivery; b) Common carriers refer to 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; c) Disaster refers to a severe disruption of the functioning of a community or a society involving widespread human, material, economic, or environmentallosses and impacts, which exceeds the ability of the affected community or society to cope using its own resources; d) Pilotage refers to the services provided by the marine pilot, who is an experienced ship captain with in-depth knowledge of a specific port, harbor, or navigable waterway; e) Relief refers to interventions to alleviate, ease, or mitigate a distressed or critical situation affecting persons, families, groups or communities; f) Relief goods refer to food packs and non-food items such as clothing articles, mats, blankets, mosquito nets, kitchen wares, water containers, hygiene kits, and medical and health-related products to be given directly to the victims of a disaster or an emergency; and g) State of calamity refers to a condition involving mass casualties or major damages to property and infrastructures such as roads, disruption of means of livelihood, and the normal way of life of people in the affected areas due to a natural or human- induced hazard.

Sec. 4. Free Freight Services. - The National and Regional Logistics Cluster led

by the Office of Civil Defense (OCD), in coordination with the Department of Transportation (DOTr) and partnership with the Philippine Postal Corporation (PPC), freight companies, common carriers, private carriers, freight forwarders, and other companies providing logistic services in the Philippines shall provide free freight services to duly registered relief organizations in the transportation of emergency relief goods and donated articles to areas declared to be in a state of calamity by the President of the Philippines or by a local government unit (LGU) through its Sanggunian. When the area of destination is not accessible, the relief goods shall be delivered and consigned to the local chief executive of the nearest LGU. The areas where these entities operate shall be considered when availing of the free freight services of common carriers, private carriers, freight forwarders, and 32 other logistics companies.

The shipping auxiliary cost, such as those for arrastre services, pilotage, and 2 other port charges, as well as the airport charges, such as those for landing and takeoff fees, aircraft parking, navigation charges, and other related airport charges that are routinely passed on to customers, shall be waived by the concerned port and airport authorities: Provided, That container van costs, turnaround time, and volume of cargo being shipped free of charge shall be considered to minimize the loss of profits for the private sector.

Sec. 5. Vigilance over Relief Goods. - The National and Regional Disaster Risk

9 Reduction Management Councils, through their Response Clusters, shall facilitate the 10 speedy movement of people, goods, and equipment to the affected population and 11 responding agencies in coordination with local law enforcement agencies, port authorities, and organizations with similar mandates and responsibilities

Sec. 6. Release of Relief Goods. - The release of donated relief goods and

articles intended for distribution to areas under a state of calamity shall comply with the existing rules and procedures of responsible government agencies such as the Department of Social Welfare and Development (DSWD), Bureau of Customs (BOC), Department of Education, Department of Health, LGUs, and other government agencies authorized to distribute the relief goods and articles, and in consideration of prevailing policies of freight service and logistics companies and carriers.

Sec. 7. Tax Deduction. - Common carriers, private carriers, and other logistics

companies mandated to provide free freight services for the transportation of relief goods under Section 4 of this Act shall be entitled to one hundred percent (100%) additional deduction from gross income of the amount of the cost incurred for the service provided, including the actual cost of salaries and allowances of personnel directly involved in transporting the relief goods, subject to the rules and limitations prescribed under the National Internal Revenue Code of 1997, as amended, existing laws, rules and regulations: Provided, That to avail of the additional deduction, common carriers, private carriers, and other logistics companies shall secure proper certification from the appropriate government agency that the expenses claimed as deduction relate specifically to the services for the transportation of relief goods as contemplated in this Act. This availment, however, is without prejudice to the conduct 32 of post-audit by the Bureau of Internal Revenue.

The availment of the tax incentives shall bar the concerned common carriers 2 and other logistics companies' availment of any similar incentives granted by other general or special laws, rules, or regulations for such freight services.

Sec. 8. Oversight Agencies. - The OCD and the DOTr, through the Civil

5 Aeronautics Board (CAB), Maritime Industry Authority (MARINA), and Land 6 Transportation Franchising and Regulatory Board (LTFRB), shall monitor and oversee the compliance of freight service companies, common and private carriers, and other logistics companies in providing free freight services as provided under Section 4 of 9 this Act.

Sec. 9. Implementing Rules and Regulations. - Within sixty (60) days from the

effectivity of this Act, the Administrator of OCD shall, in coordination with the heads of CAB, MARINA,LTFRB, BOC, PPC, DSWD, Philippine Ports Authority, Philippine Coast Guard, and the association or authorized representatives of freight service companies and freight forwarders, common and private carriers, and other companies offering logistics services in the country, issue the necessary rules and regulations for the effective implementation of this Act.

Sec. 10. Separability Clause. - If any provision of this Act is declared invalid or

unconstitutional, the remaining provisions not affected shall remain in force and effect.

Sec. 11. Repealing Clause. - All laws, decrees, executive orders, rules, and

regulations, or parts thereof contrary to or inconsistent with the provisions of this Act, are repealed or amended accordingly.

Sec. 12. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation. Approved,