Date: 2018-09-12Category: DGS CircularState: Union GovernmentCountry: India
GENERAL ORDER NO. 04 of 2018 - Relaxation under section 407 of the Merchant Shipping Act, 1958 for coastal movement of fertilizers - clarification thereof.
**Executive Summary**
General Order No. 4 of 2018, issued on September 10, 2018, clarifies the relaxation under Section 407 of the Merchant Shipping Act, 1958, regarding coastal movement of fertilizers. It addresses stakeholder doubts about General Order No. 3 of 2018, and concerns the requirement that the provision of coasting trade of fertilizers contributing at least 50% of the total cargo onboard, to promote the movement of fertilizer through coastal shipping.
**Key Points / Main Content**
* **General Clarifications:**
* The 50% minimum movement of fertilizer applies only to cargo loaded at any Indian port for coastal movement. At least 50% of the total coastal cargo on board should be fertilizers, and the remaining coastal cargo can be any other cargo.
* Movement of fertilizers can be in bulk, break bulk, or containerized form.
* **Foreign Flag Ship Carrying EXIM Material Examples:**
* If a foreign flag ship carrying 50,000 MT of EXIM material unloads 20,000 MT at Deendayal Port, it can load any quantity of fertilizers for coastal movement in the empty space to any other port of India.
* If any cargo other than fertilizers is loaded at Deendayal Port, the quantity of fertilizers must be at least 50% of the total coastal cargo loaded at Deendayal Port.
* If any EXIM cargo is loaded at the same port, it has no linkage with the carriage of fertilizer; the restriction of 50% is only applicable with respect to coastal cargo loaded from that particular port.
* **Foreign Flag Ship Chartered by Indian Firm Examples:**
* If a foreign flag ship is chartered by an Indian firm, it can load any quantity of fertilizers for coastal movement.
* If any coastal cargo other than fertilizer is also loaded, the quantity of fertilizer has to be at least 50% of the total cargo loaded on board for coastal trade.
* **Other Conditions:**
* The other terms and conditions of the order No. 3 of 2018 remain unchanged.
**Impact Analysis**
**Stakeholders: Shipping Companies/Operators**
**Impact**
They need to ensure compliance with the clarified regulations regarding the minimum quantity of fertilizer to be carried for coastal movement.
**Action Required**
Understand and adhere to the new clarification to comply with the regulations and avoid penalties.
Key Entities Referenced
Merchant Shipping Act, 1958: The primary law being relaxed and clarified regarding coastal movement of fertilizers.
Ministry of Shipping: The ministry issuing the clarification regarding the Merchant Shipping Act.
New Delhi: Location where the order was issued
Deendayal Port: Port used in examples to illustrate the clarification regarding fertilizer movement.
NO. SW-'150'1 1/7/2015-CS
Government of lndia
Ministry of Shipping
Transport Bhawan, Parliament Street,
New Delhi - '110001
Dated 1O'h September, 2018
General Order No.4 of 2018
Sub:
Relaxation under section 407 of the Merchant Shippinq Act. '1958 for coastal
movement of fertilizers - clarification thereof.
Whereas a General Order No. 3 oI 2018 was issued on 22nd June, 2018 giving
relaxation to foreign ships engaged in the coasting trade of lndia under section 407 of the
Merchant Shipping Act, 1958.
2.
Whereas doubts have been raised by some slakeholders about the provision under
Para 12.3 of the above order, relating to the quantity of coasting trade of fertilizers.
3.
Whereas the provision ol coasting kade oI fertilizers contributing to at least 50% of the
total cargo onboard the ship has been kept to promote movement of fertilizer through coastal
shipping.
4.
lt is hereby clarifled that the minimum movement of fertilizer to the extent of 50o/o of the
total cargo onboard a ship is applicable only for cargo loaded at any lndian port for coastal
movement i.e. at least 50% of the total coastal cargo on board should be fertilizers and resl of
the coastal cargo can be any other cargo. lt is further clarified that the movement of fertilizers
can be in either bulk, break bulk or containerized form.
5.
The following examples will further clarify the issue:
(a)
lf a foreign flag ship carrying 50,000 MT of ExlM material unloads 20,000 MT at
Deendayal Port, then the vessel can load any quantity of fertilizers for coastal movement in the
empty space, from Deendayal port to any other port of lndia. However, if any cargo other than
fertilizers is also loaded at Deendayal Port, then the quantity of fertalizers has to be at least
50% of the total coastal cargo loaded at Deendayal Port. lf any EXIM cargo is loaded at lhe
same port, it would have no linkage with the carriage of fertilizerl the restriction of 50o/o is only
w.r.t coastal cargo loaded from that particular port.
(b)
lf a foreign flag ship is chartered by an lndian firm, the ship can load any
quantity of fertilizers for coastal movement. But if any coastal cargo other than ferlilizer is also
loaded, then the quantity of fertilizer has to be at least 50% of the lotal cargo loaded on board
for coastal trade.
6. The other terms and conditions of the order No. 3 of 2018 will remain unchanged.
7. This issues with the approval of compelent authority.
(P.'K. Sharma)
Under Secretary to the Government of lndia
Director General of Shipping
Directorate General of Shipping
Beta Building, Ith Floor,
l-Think Techno Campus, Kaniur Marg, MUMBAI 400042