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 monitoring Vessel Sharing Agreements (VSAs) within the liner shipping industry, following an exemption from Section 3 of the Competition Act, 2002. It designates the Indian Register of Shipping (IRS) to receive and manage VSA information. The order is valid until 10.12.14. **Key Points / Main Content** * **Exemption and Monitoring:** * Vessel Sharing Agreements (VSAs) of the liner shipping industry are exempt from Section 3 of the Competition Act, 2002, for a period from 11.12.13 to 10.12.14. * The Director General of Shipping is required to monitor these agreements. * **Role of Indian Register of Shipping (IRS):** * The IRS is nominated to receive copies of VSAs and related documents. * IRS must scan VSAs, maintain an electronic database, prepare monthly reports, and provide information to the Director General of Shipping regarding complaints. * VSAs already filed with the Director General of Shipping do not need to be re-filed with the IRS. * **Responsibilities of Shipping Companies/Agents/Operators:** * Shipping companies operating liner services in India via VSAs must file VSAs in duplicate with the IRS within 10 days of signing any new VSA or amendment. * Each shipping company/entity part of a VSA must provide a self-declaration, signed by the Managing Director of their Indian agent, certifying that the VSA does not cause an adverse effect on competition. * Each member shipping line must provide monthly details of line-wise cargo loading and discharging at each terminal they operate in India. * Copies of marine terminal operating agreements and existing slot charter arrangements must be filed in duplicate within 10 days of signing. * **Grievance Redressal:** * Any party alleging adverse effects on competition due to a VSA may file a written complaint with the Director General of Shipping, supported by justification and documentation, and also file it by email. **Impact Analysis** **Stakeholder: Shipping Companies/Agents/Operators** * **Impact:** Required to file VSAs and related documents with the IRS and provide self-declarations regarding competition impact. * **Action Required:** File VSAs, agreements, and self-declarations within specified timeframes, provide monthly cargo details, and comply with VSA regulations. **Stakeholder: Indian Register of Shipping (IRS)** * **Impact:** Designated as the primary entity for receiving, managing, and reporting on VSAs. * **Action Required:** Establish a system for receiving VSA documents, create and maintain a database, prepare monthly reports, and provide information to the Director General of Shipping. **Stakeholder: Director General of Shipping, Govt. of India** * **Impact:** Responsible for monitoring VSAs and addressing grievances related to their impact on competition. * **Action Required:** Oversee VSA filings, review reports from the IRS, investigate complaints, and conduct a joint review with the Competition Commission of India. **Stakeholder: Ministry of Corporate Affairs** * **Impact:** Monitors VSAs and their potential impact on competition. * **Action Required:** Provide input and participate in joint reviews with the Director General of Shipping to assess competition effects.

Key Entities Referenced

Vessel Sharing Agreements (VSAs): Agreements between shipping lines to share vessel capacity, which are the primary subject of this notice. Directorate General of Shipping: The issuing authority of the Merchant Shipping Notice and responsible for monitoring VSAs. Competition Act, 2002: Law that VSAs were temporarily exempted from under Section 3. Indian Register of Shipping (IRS): An organization nominated to receive copies of VSAs and perform related functions. Competition Commission of India (CCI): Agency that conducts joint reviews of VSAs with the Directorate 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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