**Executive Summary**
This circular, issued by the Directorate General of Shipping on February 28, 2022, addresses the linking of the maximum number of seafarers engaged by Recruitment and Placement of Seafarers (RPS) service providers with the Bank Guarantee furnished in the RPS module. The RPS module will be modified to enforce this link, preventing the engagement of excess seafarers. The revised module will be implemented on March 15, 2022.
**Key Points / Main Content**
* **Bank Guarantee Requirements:**
* RPS providers must submit a bank guarantee to the Director General of Shipping, commensurate with the number of seafarers placed on board ships.
* The amount of the bank guarantee varies based on the number of seafarers placed (as per a provided table ranging from 10 lakhs for up to 50 seafarers to 40 lakhs for 1001 and above seafarers).
* The bank guarantee must be valid for the license period.
* Any change in the number of jobs requires furnishing a new bank guarantee.
* **RPS Module Modification:**
* The RPS module is being modified to link the permissible number of seafarers to the amount of the Bank Guarantee.
* The module will prevent "e-migrate" for seafarers if the number of seafarers exceeds the permissible limit based on the provided bank guarantee.
* The modified module will be implemented from March 15, 2022.
* **Review and Compliance:**
* All existing RPSL companies must review their RPS profile to ensure the number of seafarers engaged aligns with the amount of their Bank Guarantee.
* If the number of seafarers exceeds the permissible limit, the RPS provider must furnish an additional bank guarantee before March 15, 2022.
**Impact Analysis**
**Stakeholder:** RPSL Companies
* **Impact:** RPSL companies must comply with the modified RPS module, limiting the number of seafarers they can engage based on their bank guarantee amount.
* **Action Required:** RPSL companies must review their profiles, ensure alignment between seafarer numbers and bank guarantees, and furnish additional guarantees if needed before March 15, 2022.
**Stakeholder:** Directorate General of Shipping
* **Impact:** The Directorate General of Shipping will enforce the new rules via the RPS module and oversees compliance.
* **Action Required:** The Directorate General of Shipping is responsible for implementing and maintaining the modified RPS module, and informing all the stakeholders through its website.
Key Entities Referenced
Recruitment and Placement of Seafarers (RPS): Service providers involved in the recruitment and placement of seafarers, regulated by the Directorate General of Shipping.
Merchant Shipping (Recruitment and Placement of Seafarers) Rules, 2016: Rules governing the recruitment and placement of seafarers, specifically Rule 15 which mandates bank guarantees.
Directorate General of Shipping: The regulatory body issuing the circular and overseeing the RPS module and compliance.
RPS module: The electronic system used by the Directorate General of Shipping to manage and monitor the activities of Recruitment and Placement Services.
Bank Guarantee: A financial security required from Recruitment and Placement Services (RPS) based on the number of seafarers they place, to ensure compliance with regulations.
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D I RECTORATE G ENf, RA I, OF SI]II PPINC. IUII N{ BAI
F. No.23-RPS/3/2022-CREW - DGS Dated 28.02.2022.
DGS CIRCULR NO. 06 OF 2022
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RPS r,nodHle m.pFtaj+ed by th.e Difector.ate - ree.
Whereas, Rule - 15 of the Merchant Shipping ( Recruitment and placement of Seafarers)
Rules, 2016 provides that the Recruitment and Placement Service (Rps) shall submit a bank
guarantee to the Director in accordance with the following table:-
Sl. No. Number of seafarers placed on Amount of Bank Guarantee in Indian
board ships Rupees
I Up to 50 l0 lakhs
2. sl - 2s0 15 lakhs
J. 25 I -500 20lakhs
4. s0 1 -750 25 lakhs
5. 75 1 -l 000 30lakhs
6. 1001 and above 40lakhs
2.
And whereas, the said Rule also provides that the bank guarantee shall be in
commensurate with the number of jobs and shall be valid for the license period. In case of any
change in the number of jobs, the Recruitment and Placement Service shall furnish requisite
bank guarantee along with the application.
3.
And whereas on scrutiny of the RPS module, it is observed that many RpS companies
have engaged excess number of seafarers than the permissible number vis-a-vis the amount of
Bank Guarantee furnished by them.
4.
And whereas, in order to prevent the RPS from engaging excess number of seafarers than
the permissible number vis-i-vis the amount of Bank Guarantee, it has been decided to modify
the RPS module incorporating a system to have link between permissible numbers of seafarers to
be engaged vis-i-vis the amount of Bank Guarantee. Henceforth, the modification will be done
in e-governance RPS module that will not allow e-migrate for the seafarers if number exceeds
the permissible limit. The said revised module willcome into force w.e.f I 5.03.2022.
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5. Therefore, all the existing RPSL companies are hereby directed to review their RPS
profile to maintain permissible number of seafarers engaged viz-a-vis the amount of Bank
Guarantee in their RPS profile. In case the number of seafarers engaged on board ships is excess
than the permissible limit vis-d-vis bank guarantee, the RPS provider shall furnish additional
requisite bank guarantee before the date of revised module come into force.
6. This issues with the approval of the Director General of Shipping and Additional
Secretary to the Government of India.
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All stakeholders through DG Shipping Website.
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Computer Cell for placing this Circular at DG Shipping Website
3. AD (OL) for Hindi version.
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*srret.: 9l-22-257520{0lUZt3, *-m/t'ax .z 9t-22-2575202qRS t-+q/C-mail: dgship-dgsin)n11.inffie/website: www.dgshipping.gov.in