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F. No.: 16/5/2026-SD-DGS Dated: 09.03.2026
DGS Circular No. 14 of 2026
Sub.: Advisory to Shipping Lines/Carriers/Agents regarding transparency in transaction costs and
avoidance of predatory, non-transparent and opportunistic pricing in EXIM trade.
1. The Merchant shipping Act 1958 aims to foster the development and ensure the efficient
maintenance of an Indian mercantile marine in a manner best suited to serve the national interests.
2. The Multimodal Transportation of Goods Act, 1993 primarily deals with the registration of
Multimodal Transport Operators (MTOs).
3. The Directorate General of Shipping (‘DGS’) has received representations from various
stakeholders in the EXIM trade regarding the levy of multiple ancillary charges by shipping
lines/carriers and their agents. These charges are perceived to be non-transparent and opportunistic
in nature, resulting in an escalation of transaction costs in the logistics chain and appearing to take
undue advantage of the prevailing geopolitical tensions and war-like situation.
4. Earlier, vide DGS Circular No. 1 of 2016 dated 07.09.2016 read with clarification dated
26.12.16, this Directorate issued similar advisory to representatives of shipping lines and other
stakeholders of shipping industry, advising not to levy certain charges and to ensure greater
transparency in the levying of charges connected with the transportation of EXIM cargo, as a good
industry practice.
5. Under the Merchant Shipping Act, 2025 (‘the Act’) assented to by the President of India,
section 317 provides for an enabling provision to ensure transparency in charges levied by service
providers or agents in respect of vessels operating in relation to import, export or domestic
transportation of goods. The provision empowers the Central Government to direct service
providers or agents to specify all the charges in the Bill of Lading or any other transport document
all charges to be paid by exporters, importers, consignors or consignees in India, including both
fixed and conditional charges.
….2/--2-
6. In view of the above and in the interest of promoting transparency, fairness and
predictability in the EXIM logistics ecosystem, all Shipping Lines, Carriers and their Agents are
hereby advised to:
(i) Refrain from predatory, non-transparent and opportunistic pricing practices, including levy of
exorbitant charges thereby taking undue advantage of prevailing geo-political issue.
(ii) Adhere to fair trade practices and avoid the levy of charges that may give rise to disputes within
the EXIM trade.
(iii) Ensure that all applicable charges are communicated clearly and upfront to exporters,
importers and other stakeholders.
7. The Directorate expects that all stakeholders in the maritime logistics chain will cooperate
in maintaining transparency and fairness in commercial practices, in the larger interest of
facilitating trade, reducing logistics costs and improving ease of doing business in India.
8. This issues with the approval of the Director General of Shipping & Additional Secretary
to the Government of India.
(Shri Nebu Oommen)
Dy. Director General of Shipping/SD
To;
All Associations (As per mailing list)
Copy to:
1. PS to Hon’ble Minister (PSW)
2. PS to Hon’ble Minister of State (PSW)
3. The Secretary, Ministry of Ports, Shipping and Waterways, Govt. of India, [kind attn.:
Shri Venkatesapathy S., Joint Secretary, Ports]
4. The Secretary, Ministry of Commerce, Govt. of India
5. DG, DGFT
6. Chairman, CBIC