Home India Ministry of Ports, Shipping and Waterways M. S. Notice 06 of 2014 - VSA Exemption Notification reg....
Date: 2014-05-09 Category: DGS Circular State: Union Government Country: India

M. S. Notice 06 of 2014 - VSA Exemption Notification reg.

Issued by Ministry of Ports, Shipping and Waterways · Directorate General of Shipping

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Executive Summary & Key Takeaways

**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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Snpping llRsla RFcooliseo O'9"1r'r1or [Po- / cl."ti"" s"" r.".ov 1om' -i"d o oJr tle ro loa'rs rJ'cdors o dnd i" JJ,rr t" o"""t i .", c-'rdlor snrooirg G"a or v- rv or I o a 1 r''r 'eeard "i 1 1. Re@ive copLes of the Vessels Sharing Agreements (VSAS) and al allied docoments/ lnformanon related lothe same & 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 Govt. ollndia in relaiion tolhe comPlainls lhat may be re@ived inih6 1 5- Alihe VSAS & relaled informallon/documents ii ed liIdale withlhe oirecior ce*ar oi St'lppins co\^ orlndia need nol beiied wnh ihe wl rnS Thes; €;rds akeadv avaiable in this orce so rar' be lo" a" ac e d" e9 d " ri o" l e R5 ror l''' p rpo"_' who are esponslble for opmlLng lner 2. The shipping coriipanies/agen1s/operalors ''ere" * ii* iii " i" .r " ;" " '.""a* ! 'q o v '- or "e; ,: le iels a'l- 'a ar 'g 1 1r os ' oe'| ro n;N Fs I As ' oF br ee olru"'sF doto''rcco -soav. "**=' '5e 2 n .r1 i.- a| | we Ll hl' e $ ev S lrA os a. .n R o eop F|( re r r a o l Sw lr h pp t r 'ce (r I ^ Rl S'r l wl r ' r d aa l oc ' o @ ol d r'1 poe r! /r l ') 0 ts r4l re F r 1 vo r d ral ai vB vs i'ot ir." orr" ot r"" .'q."g or r.v VSA 'r inar Ir e sr porng ' lnio t"rrO ng ,nv menl(s) thereto rhe address lor communLcar on "."nd " wn l1 h" , lh e lRS. for lh€ purpose, rs as gNen De ow Indrar Reg sler of ShiPPrng lAttn chrel OperaUng off|Cer tcommercraLl 52 Adi Shankaracharua Marq Ooposile Powai Lake.Powa, vsa@rcla5s.or9l tE-Marl.3- 22. Each shipping companv/enlitv wh ch is a pad of a VSA shalL aLong w h i_r'i nr..?'rr," ,iri,q i-""ineo, proviae throusn ts lndian asent lincorporated ,nO"rri" rnoirn aw(s)l a lormal undenakins-cum selrdecladtion in the rormat *4"."" l-*ure _ | pagesl dLrv <g1eo o/ i1e rMa'ast 12 ";;"-_i;"'. 'n;i"; ,; sa, -ar ag-^, -oroa'y,'nrtv 'p'p"er''ns tre v-sA ii"'t"."ir.J'n" ,r;'r.e rreo vsa conce''eo las rcr caL\ed/ s "p."r".' 6'ceefe(lorconoeltron ro \eyloc.Ls"drrappe."olpod -u" " "or "qr 2.3 Each such member shipping i.e shall provide lhe deiais o tl lhe ine_wse r ,o i*a "o. ir io , ia ."r io , 'o i,is i"cr ia q'q , hrq " ;o sr oca erg , o Jr o ivF e. r ofe orl (o r a' sh oe Fr q rd i'r a e .o'" rh /o l' e" 1o" o't i ltt t s't ' 'rt'"s' .i"'r,'"" ,"o"' r" o: t,'.islPo ol c n o1_\v mooe o feorF@o'smo'f sha, oe provrded " w0 l'tr " lo_.rgr' ot l F ollow t g ronrh 24 fi,e. r. ouol.cale, whrI d pe odol lorrer'dav) kol redaleof so-n9 i*ii , ri .u, " r"'mrlrl oo"rdrrs aseen"rlrst el'ered nowirhte leminals": lhat " thlv e shipping companv/ enl tv operates at 2.5 Tl- orpl.ale -ope, o .e e.+rq slol (rane ' €'oem"rs 1rr ll'e/ :",.,," U' "".."t" *'r" ol.e ld dr qrpor19 coroa'vr eadlv "" "1/ 2 6 The Indian Resister of ShipPlng may charge an appropriate and €asonable leeforlhe sad seN.es rendered bY 3 G evance redressar mecnan sm: I I Anv aoorF'eo ParY na"i.q dr a "oalol llrr'l-e VsA 1Fo u'der ll-q iii',,-i."'*'r" rn" o."'o GFiealor5r'ppro Go$ o'Ididtrq'dJ'ed o' :r''.9 - rra, o rarse rr\ dpp'ecaolF ao!'Fe Pffe't ot 'ompennot 't " 8 Fo @np'ali w n duF rJsr'i-a(on A ba'(up oera ;;;.;;,,i";, . *nr,rs orl s'qreo ov tre aeereveo oe 'on to rra Dr'crol oli'lliil il ci"r' 6r riaa ai rt'e.iotiowins onice address.s!ch a a''rlpp "s ln an eecironicfom and be maibd attheJollowins "-".p"ri"r""ri "r"1o"r"a 31.1 Dnedorate Genera ofshppng. Beta BuLldino.glh F oor l-Think Techno Camous (anur l/arq (Eas| I/umbats400 042 r eI A22 257 52A4Ot 1 12 13 F a\ 022 2575 2029135 31 2 E mail lDs lofiicaLl 3121amohd-dgs@ncin 3.1.2 2. sgb-dgs@nic In4. Thiso.der may be reviewed lrom tifre to lime & will be valld lil 101214 5. This issues wilh lhe app.ovalollhe D reclor Generalol Shipping & ex olficLo Addiiional Secrelary lo the Govt. oflndla ls. Deputy D rec lor General of Shipping . The Secretary lo lhe Govl. of hd a, M .islry of Shippingjor K nd inlormallon. 1 2. Shri Anil Kumar, Direcior, Ilin stry of Corporate Affai6. GOI 3. Indan Regisler of Shlpping. Munbai 4. ConlainerShipping LnesAssocialion (lndia) 5 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 5.l i. fln ld ded ak r nn eq vcl -m -- ns nef d se *c ola ,nra oti o .n lo o r.. " l rh roe oe o tl oe. r h ead of ihe comDanv/entilv or:' AGa--;:l;. Eflbv the Dtectorare Generaloi shiDDino. Govt oi lndia ahile fi ino oi vesselsharino aorcements tVSAsl | .. . ... ... ... ... ..... s/o shri . . . in mv capaciiv as lhe o'V.s .. a conpany Marrainq DtrP.ror nd'd wrn,eqFraton no t.serr lhe teqsnarion nutrb4 or r\e '.".."i.-,"" * r" ,c " i" rs lne dgelcy n lt a o' lhF conltacr''q panv "ieo. o .na dn ;v ;l .o r' e p,..' . pp d'" l s loe r -' e1 q u esse sna'ins ao ee'"ntslvsAl "nr' ed inlo on ... .fo the shpPinq \Pa'€ ........... ....... ...... .., herebv undedake I deca'e on behalf of ils said p ncipal,lhallhe vsAentered nto belweenlhe iollowing pa'liesi L 2 3 5 6 has nol eused/ is not causng/ is nol likelv Io cause anv adve6e efrect on @mpeltion d!rinq the lenure ofthis agreemenl .52.1 der' 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

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