Notification on Rates of Marine Aids to Navigation Dues

## Report on Marine Aids to Navigation Dues Notification **1. Executive Summary:** This report analyzes a notification (S.O. 3641(E)) issued by the Ministry of Ports, Shipping and Waterways regarding the rates of marine aids to navigation dues. This appears to be a new policy establishing a schedule of dues based on ship type and tonnage/TEU. Key findings include the establishment of specific rates for foreign-going ships (both container and non-container), the exemption of coastal and sailing vessels, and ships belonging to central/state governments not carrying freight/fares. The notification also specifies the applicability of Goods and Services Tax (GST) and provides a timeline for the implementation of the new rates. **2. Introduction:** This report provides an overview of the notification S.O. 3641(E), issued by the Ministry of Ports, Shipping and Waterways on July 28th, 2022. The purpose of this report is to inform stakeholders about the provisions of this notification, which establishes a schedule for marine aids to navigation dues. The analysis is based solely on the content of the provided text. **3. Policy Overview:** * This appears to be a *new* policy establishing the rates for marine aids to navigation dues, rather than an amendment. * **Core Objective(s):** The core objective of the policy, as inferred from the text, is to establish and implement a structured system for collecting marine aids to navigation dues from various types of ships. This likely aims to generate revenue to support the maintenance and operation of marine aids to navigation. **4. Background and Rationale:** * **Background and Rationale (New Policy):** It can be inferred that the policy addresses the need for a standardized and regulated system for collecting fees associated with the use of marine aids to navigation. The absence of a previously specified rate structure (inferred from the establishment of a new schedule) likely led to inconsistencies or insufficient funding for maintaining these crucial services. The implementation of these dues supports navigational safety and efficiency. **5. Key Provisions / Changes:** * **(New Policy):** The notification establishes the following key provisions: * **Marine Aids to Navigation Dues:** Establishes a rate schedule for these dues. * **Rate Structure:** Sets dues for different categories of vessels: * Foreign Going Ships (Non-Container): Rs. 7.50 per Net Registered Tonnage (NT). * Foreign Going Container Ships: Rs. 85.0 per Twenty-foot equivalent unit (TEU). * Coasting Ships/Home Trade ships/Ships granted license for Coastal runs: NIL. * Sailing Vessels: NIL. * Government Ships (not carrying cargo or passengers for freight/fares): NIL. * **GST Applicability:** Specifies that Goods and Services Tax (GST) is applicable on the dues at a rate of 18% (9% CGST + 9% SGST). * **Implementation Timeline:** The scheduled rates will take effect thirty days from the date of notification in the Official Gazette (August 2, 2022). **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by this policy include: * Owners and operators of foreign-going ships, both container and non-container vessels. * Shipping companies involved in international trade. * The Directorate General of Shipping. * The Ministry of Ports, Shipping and Waterways. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Ministry of Ports, Shipping and Waterways is the responsible agency, as indicated by the issuing notification. The Directorate General of Shipping is likely involved in the implementation and enforcement of the dues for Coasting Ships. * **Timelines:** The notification specifies that the new rates will take effect 30 days after the notification date (August 2, 2022), suggesting an implementation date around September 1, 2022. * **Procedures:** While specific procedures are not detailed, it can be inferred that processes for collecting and remitting the dues will need to be established, involving shipping companies and relevant port authorities. **8. Expected Outcomes / Impact of Changes:** * **(New Policy):** The likely intended outcomes of this policy include: * Increased revenue for maintaining and improving marine aids to navigation. * A more equitable distribution of the cost of these services among users. * Improved navigational safety and efficiency. * Greater transparency and predictability in the fees associated with maritime transport. **9. Conclusion:** The notification S.O. 3641(E) introduces a structured approach to marine aids to navigation dues. By establishing a clear rate schedule based on vessel type and usage, the policy seeks to generate revenue for maintaining essential navigational infrastructure, which ultimately contributes to safer and more efficient maritime transport. The immediate impact will be felt by foreign-going ships, who will now be subject to these charges, whereas it benefits coastal trade and governmental entities by exempting them. The industry should prepare for the implementation date and adhere to collection and remittance procedures.

Key Entities Referenced