**Executive Summary**
Merchant Shipping Notice No. 06 of 2014, dated 09.05.14, outlines procedures for vessel sharing agreements (VSAs) following an exemption granted by the Ministry of Corporate Affairs. The notice nominates the Indian Register of Shipping (IRS) to receive and monitor VSAs on behalf of the Director General of Shipping, and specifies filing requirements for shipping companies operating liner services in India. The validity of the order is until 10.12.14.
**Key Points / Main Content**
* **Exemption Details:**
* The Ministry of Corporate Affairs exempted VSAs of the liner shipping industry from Section 3 of the Competition Act, 2002, for one year (11.12.13 to 10.12.14).
* The exemption applies to carriers of all nationalities operating merchant ships of any nationality from any Indian port.
* The Director General of Shipping is required to monitor these agreements.
* **Responsibilities of the Indian Register of Shipping (IRS):**
* IRS is nominated to receive copies of VSAs and related documents.
* IRS must scan VSAs and maintain an electronic database.
* IRS must prepare monthly reports as prescribed by the Director General of Shipping.
* IRS must provide information to the Director General of Shipping related to complaints.
* VSAs already filed with the Director General of Shipping do not need to be refiled with the IRS.
* **Filing Requirements for Shipping Companies/Agents/Operators:**
* Shipping companies must file VSAs, in duplicate, with the IRS within ten days of signing, including any amendments.
* A formal undertaking-cum-self-declaration from the Indian agent must accompany the VSA filing, certifying no adverse effect on competition.
* Member shipping lines must provide line-wise loading and discharging details monthly, within a fortnight of the following month.
* Copies of marine terminal operating agreements and existing slot charter arrangements must be filed in duplicate within ten days of signing.
* The IRS may charge fees for its services.
* **Grievance Redressal Mechanism:**
* Aggrieved parties alleging adverse effects on competition may file complaints with the Director General of Shipping.
* Complaints must be detailed, justified, and signed, and should be filed electronically.
* **Validity:**
* The order is valid until 10.12.14.
**Impact Analysis**
**Director General of Shipping, Govt. of India**
* **Impact**
Required to monitor VSAs, oversee IRS's actions, and review agreements with the Competition Commission of India. Handle grievance redressals.
* **Action Required**
Ensure IRS is carrying out its responsibilities, review VSA’s with the Competition Commission of India and address any grievances made against a VSA.
**Indian Register of Shipping (IRS)**
* **Impact**
Designated to receive, process, and maintain records of VSAs, prepare reports, and respond to information requests.
* **Action Required**
Establish systems for receiving and managing VSA filings, creating the required database, and generating monthly reports.
**Shipping Companies/Agents/Operators**
* **Impact**
Must comply with new filing procedures and provide self-declarations regarding the impact of VSAs on competition.
* **Action Required**
Ensure all VSAs and related documents are filed with the IRS within the specified timeframe, including the self-declaration and other required information.
Key Entities Referenced
Vessel Sharing Agreements (VSAs): Agreements between shipping companies for sharing vessel capacity and routes, exempted from Section 3 of the Competition Act 2002 under certain conditions.
Competition Act, 2002: Indian law regulating competition in the market, specifically Section 3 of which pertains to anti-competitive agreements.
Directorate General of Shipping: Indian governmental body responsible for maritime affairs, monitoring Vessel Sharing Agreements (VSAs) and empowered to issue directions related to shipping.
Ministry of Shipping: The ministry overseeing the Directorate General of Shipping.
Indian Register of Shipping (IRS): A classification society nominated to receive and manage copies of Vessel Sharing Agreements (VSAs) on behalf of the Director General of Shipping.
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1 1. Re@ive copLes of the Vessels Sharing Agreements (VSAS) and al allied
docoments/ lnformanon related lothe same
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12 Scan the VSAS and mantain an eleclronic st'uctured master
dalabase thereof periaining to allsuch VSAS
1 3 Prepare monthlv repo.lsihereon in theiorm and mannerp'escrbed bv
lhe Director GeneraL oi shipping, Govt ollndia
I 4. Provide allrecessary niormalion tolhe DtectorGenera oishipping
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5. This issues wilh lhe app.ovalollhe D reclor Generalol Shipping & ex olficLo
Addiiional Secrelary lo the Govt. oflndla
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Deputy D rec lor General of Shipping
. The Secretary lo lhe Govl. of hd a, M .islry of Shippingjor K nd inlormallon.
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2. Shri Anil Kumar, Direcior, Ilin stry of Corporate Affai6. GOI
3. Indan Regisler of Shlpping. Munbai
4. ConlainerShipping LnesAssocialion (lndia)
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INSA / ICCSIJ FOSMA / MASSA / MANSAA
6. Hindisection DGS, Gol,lorlhe issue ofthe Hindiverson ofthis Nolce'
7. computer Secllof, DGs, Gol, for uploading this Notice on the oriicial DGS
web;iF for lhe informalion ofaLlthe sh pping sector stakeholders concerned
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has nol eused/ is not causng/ is nol likelv Io cause anv adve6e efrect on
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2.1. The V&A enclosed herew h doee noi in any mann€r whal so
lead to lixing of Prices, trmitino produdon or shanng of maftets (wheher
in lvriling or olhetwise).
2.2. The said VSA also does not conlan joinl selling and Pulohasing
provisions visn-vis comPetitors
2.3. Ow company or ils emdovees do not sharc any inionnation about
pdces or business Plans wilh comPelitors in any mannet & ai no lime
Signatu€:
DaG:
Designa onl