**Executive Summary**
This DGS Circular No. 08 of 2025, issued on March 4, 2025, addresses issues faced by Shipping and RPS Companies related to extending the contractual Article of Agreement (AoA) for seafarers. It acknowledges challenges in the current E-Governance System for extending AoAs and provides an interim solution. The circular clarifies that if the extension does not exceed 11 months, there's no need to terminate the existing AoA; instead, an extended letter should be maintained onboard the vessel.
**Key Points / Main Content**
* **Regulatory Context:**
* The Merchant Shipping (Recruitment & Placement of Seafarers) Rules, 2016, require RPS companies to ensure seafarers are fully aware of their rights and obligations, with agreements available for scrutiny.
* Section 100 of the Merchant Shipping Act, 1958 mandates an agreement with the crew for Indian ships, except home-trade vessels under 200 gross tons.
* DGS Circular No. 02 of 2002 requires the Master to maintain a copy of the Article of Agreement onboard the vessel.
* **Issue Identification:**
* The Directorate General of Shipping (DGS) has received representations highlighting challenges faced by Indian Ship Owners and RPS Companies regarding the extension of AoAs.
* The current E-Governance System does not support modifications for extending AoAs, leading to administrative burdens.
* **Interim Solution:**
* If the employer and seafarer mutually agree to extend the contract period up to 11 months, there is no requirement to terminate the existing AoA.
* Instead, the employer, shipowner, or RPS agency must maintain an extended letter for Article of Agreement / Seafarer Employment Agreement onboard the vessel for compliance and inspection purposes.
**Impact Analysis**
**Stakeholder: Indian Ship Owners & RPS Companies**
* **Impact:** Reduced administrative burden related to extending AoAs for seafarers with contract extensions up to 11 months.
* **Action Required:** Implement the interim solution of using an extended letter instead of initiating a fresh AoA for qualifying extensions and ensure the extended letter is maintained onboard the vessel.
**Stakeholder: Seafarers**
* **Impact:** Continuation of employment under existing AoA terms for extensions up to 11 months, with maintained rights and obligations.
* **Action Required:** Mutually agree to the extension with the employer.
**Stakeholder: Onboard Surveyors/Employer Representatives**
* **Impact:** Compliance checks will now include verification of the extended letter for AoA/Seafarer Employment Agreement extensions.
* **Action Required:** Acknowledge extended letters as suitable replacements for fresh AoAs during inspections, provided extension period is 11 months or less.
**Stakeholder: Masters of Indian Ships**
* **Impact:** Continued responsibility to maintain all seafarer related documentation.
* **Action Required:** Maintain an extended letter onboard the vessel if the AoA is extended for up to 11 months.
Key Entities Referenced
Merchant Shipping (Recruitment & Placement of Seafarers) Rules, 2016: Rules governing the recruitment and placement of seafarers, establishing requirements for RPS companies regarding seafarer rights and obligations.
Article of Agreement (AoA): Contractual agreement between a ship's master and seafarers, detailing employment terms and conditions. The circular addresses issues related to extending these agreements.
Directorate General of Shipping (DGS): The regulatory authority responsible for maritime affairs. The circular is issued by the DGS and addresses issues raised by shipping and RPS companies.
Merchant Shipping Act, 1958: Legislation mandating the execution of an agreement (Agreement with the Crew) with every seafarer engaged as a crew member from any Indian port.
Ministry of Ports, Shipping and Waterways: The government ministry responsible for maritime affairs, which promulgated the Merchant Shipping Rules, 2016.
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DIR.ECTOR.{TE G E N E R,\ L OF SHIPPI NC' I\IT] NII}AI
No.30774)
File No. 23-POL/3/2024-CREW-DGS (C. Date: 04.03.2025
DGS Circular No. 08 of 2025
Subiect: Issues faced bv Shinpine / RPS Comoanies while extending contractual Article
of Agreement - res.
whereas, the Merchant Shipping (Recruitment & Placement of Seafarers) Rules,
2016, promulgated by the Ministry of Ports, Shipping and waterways, Govemment of India
(Gol) on 14.02.2016, stipulates under Section 5(c) that the Recruitment and Placement
iervices (RPS) companies must ensure that the seafarers recruited or placed by them are fully
apprised of their rights and obligations under their respective employment agreements.
ihese agree*"nts must be made available for scrutiny both prior to signing on and post-
signing off, with duly signed copies mandatorily provided to the seafarers'
2. whereas, Section 100 ofthe Merchant Shipping Act, 1958 mandates that the Master
of an Indian Ships, except a home-trade vessel of less than 200 gross tons, must execute an
ugr"ar"nt (hereinafter referred to as the "Agreement with the Crew") in accordance with the
Alct with every seafarer engaged as a crew member from any Indian port'
3.Whereas,aSpertheparagraphs14tolTofDGSCircularNo.02of2002'theMaster
is obligated to maintain one copy ofthe Article ofAgreement always onboard the vessel.
4. whereas, the Directorate General of Shipping (DcS) has been receiving consistent
representations irom Indian Ship Owners and RPS Companies, highlighting challenges faced
uy them *tren extending the contractual period of Articles of Agreement (AoA) for seafarers
o'n rnJi*_nugg"a vessels. Specifically, during inspections by onboard surveyors, employers
o, tf,"i. ,"p."IJntatives are ohen instructed to close the existing Article of Agreement (AoA)
and initiate a fresh one for the concemed seafarer.
5. Whereas, an updated copy of the extended Article of Agreement (AoA) is required. to
be maintained onboard the uesiil and this process significantly increases the administrative
burden on Indian Ship owners & RPS Companies, necessitating extensive modifications and
reissuance of agreements.
6. Whereas, this Directorate has reviewed the representations submitted by the tndian
varitime Inaust.y. However, it has been indicated that the necessary modifications to extend
thee,rticleofAgreement(AoA)withinthecurrentE.GovernanceSystemiscunentlynot
ConsJquently, tire necessary amendments in the Article of Agreement (AoA) will
" bp ep infi c"" oU rpi" o. r ated into the new E-Governance System'
7. Furthermore, it is pertinent to note that ifthe employer' shipowner' or RPS agency'
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along with the seafarer mutually agrees to extend the contract period but does not exceed
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more than eleven months, there is no explicit requirement to terminate the existing
Article of Agreement. Instead, the employer, shipowner, or RPS agency must ensure that an
extended letter for Article of Agreement / Seafarer Employment Agreement is maintained
onboard the vessel for compliance and inspection purposes.
8.
This issues with the approval ofDirector General ofShipping.
,91
lCapt. .) Daniel J Josephl
Dy. Director Ceneral of Shipping
To,
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All stakeholders
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