Date: 2016-11-30Category: DGS OrderState: Union GovernmentCountry: India
Simplification of the clearance procedure by dispensing with the requirement of submission of various certificates to customs authorities, under the provisions of the Merchant Shipping Act, 1958, as amended-reg.,
**Executive Summary**
DG Shipping Order No. 08 of 2016, issued on 30.11.16, simplifies port clearance procedures for Indian flag merchant ships/vessels registered under the Merchant Shipping Act, 1958, as amended. It dispenses with the requirement of submitting various certificates to customs authorities, subject to specific conditions. This order is effective immediately.
**Key Points / Main Content**
* **Purpose:** To simplify the port clearance procedure.
* **Dispensation:** Waives the requirement of producing statutory certificates and documents for port clearance at all Indian ports for Indian flag merchant ships/vessels registered under the MS Act, 1958.
* **Condition for Dispensation:** A declaration-cum-undertaking must be submitted to the jurisdictional customs authorities. This declaration, signed by the ship's Master or a formally authorized person, must state that all statutory certificates are valid and that no surveys or audits are overdue.
* **Record Keeping:** Jurisdictional customs authorities must maintain records of submitted declarations-cum-undertakings for verification by the Mercantile Marine Departments (MMDs).
* **Scope:** This order applies to all types of Indian ships/vessels registered under the MS Act, 1958, and encompasses all sections of the Act related to port clearance.
* **Objective:** To foster ease of doing business, facilitate trade, and ensure the smooth movement of Indian flag ships/vessels.
**Impact Analysis**
**Stakeholder:** Indian Flag Merchant Ships/Vessels
**Impact:**
* Reduced administrative burden during port clearance.
* Faster turnaround times.
**Action Required:**
* The Master of the ship (or authorized representative) must provide a declaration-cum-undertaking to customs authorities confirming the validity of statutory certificates and absence of overdue surveys/audits.
**Stakeholder:** Jurisdictional Customs Authorities
**Impact:**
* New procedure for port clearance verification.
* Responsibility to maintain official records of declarations.
**Action Required:**
* Maintain records of the declarations-cum-undertakings submitted by ships.
* Make records available for inspection by Mercantile Marine Departments (MMDs).
**Stakeholder:** Mercantile Marine Departments (MMDs)
**Impact:**
* Potential for verification of submitted declarations.
**Action Required:**
* Inspect and verify the declarations-cum-undertakings held by customs authorities, as required.
Key Entities Referenced
Merchant Shipping Act, 1958: The principal act governing merchant shipping in India, repeatedly referenced as amended.
Directorate General of Shipping [DGS]: The national maritime administration responsible for administering the Merchant Shipping Act, 1958, and issuing the order.
Ministry of Shipping: The ministry overseeing the Directorate General of Shipping.
Indian Ports: Location where the policy changes regarding port clearance procedures are implemented.
Customs Authorities: Authorities that previously required the submission of certificates which is being simplified under this order.
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F. No. SD-13/POL (1)/14 Dated : 30.11.16
DG Shippinq Order No. 08 of 2016
Merchant Shippine Act. 1958. as amended-ree.
Whereas the objective of the Merchant Shipping Act, 1958, as amended, is to, inter-alia,
foster the holistic development & growth of the merchant shipping sector and ensure a safe &
efficient lndian mercantile marine in a manner best suited to serve the lndian national
interests;
2. Whereas the Directorate General of Shipping IDGS], Ministry of Shipping, Govt. of lndia
[Gol] is the designated National Maritime Administration of the country to administer the
Merchant Shipping Act, 1.958, as amended, as the facilitator and regulator of the merchant
shipping industry in tndia;
3. Whereas numerous lndian and foreign flag vessels are calling on various lndian ports, for
trading purposes, through a large number of voyages;
4. Whereas in the case of lndian flag/registered ships, and other ships the requirement of
producing statutory certificates and documents [prescribed under section 410 & various other
sections/provisions, amongst others, of the Merchant Shipping [MS] Act, Lg5g, as amendedl,
for the purpose of port clearance needs to be followed. However, this requirement has been
revisited, re-examined, and now is considered for being dispensed with at all lndian ports.
5' Now, therefore, in pursuance of the powers conferred on the Director General of Shipping,
Govt' of lndia, under section 456 of the Merchant Shipping Act 195g, as amended, read with
the Ministry of Shipping, Govt. of lndia's S.O. No. 3144 dated t7.t;-.tg6}. the undersigned
hereby issues the following dispensation, from the requirements of
the
submission/production of certificates, mandated by the MS Act, 195g, as amended, subject to
the conditions mentioned in para 5.1 herein below;
...2/-
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5.1. ln the case of lndian flag merchant ships/vessels, registered under the MS Act, 1958, as
amended, the requirement of producing statutory certificates and documents [prescribed
under the various sections/provisions, inter-alia, of the said Act], for the purpose of port
clearance, is hereby dispensed with, provided that a declaration-cum-undertaking, duly signed
by the Master of the ship/vessel concerned, statinS, amongst other things, that all the said
statutory certificates are valid and also that there are no overdue survey(s) or audit(s), in
respect ofthat ship/vessel, as may be required under the Merchant Shipping Act, 1958 or the
Rules framed there-under, as amended, is submitted by a person formally authorized by such
Master, to the jurisdictional customs authorities, on the day the port clearance is sought/on
the day ofthe sailing ofthe ship / vessel concerned.
6. The jurisdictional customs authorities will maintain an official record of such declarations-
cum-undertakings submitted to them for the perusal / examination of the authorized
officer(s) of the jurisdictional Mercantile Marine Departments (MMDs), under this office, for
verification, if required.
7. This order is issued for all types of lndian ships/vessels, registered under the MS Act, 1958,
as amended, and will encompass not merely section 410 ibid, but also allthe other sections of
the extant MS Act that may enjoin port clearance from the jurisdictional customs authorities.
8. The foregoing measures have been put in place for fostering an ease of doing business, due
facilitation of trade, hassle-free movement of lndian flag ships/vessels, [so registered], across
lndian ports and in public interest.
I
(Dee etty 'bb
Director General of Shipping & Secretary, Govt. of lndia.
I.
1. All the stakeholders concerned, through the official website ofthe DGS, Got.
2.
Member [Customs] & Special Secretary to the Govt. of lndia, Central Board of Excise &
Customs, Department of Revenue, Ministry of Finance, North Block, Central
Secretariat, New Delhi-110001, with a request to please arrange to disseminate this
order amongst all the field formations concerned under the CBEC, Gol.
3.
Chairmen of all major & non-major ports.
4. MD & CEO, lndian Ports Association / lndian private ports & Terminals Association.
5. CEOS of all State Maritime Boards & Secretaries [ShippinC] of all Maritime
States/Union Territories.
6.
CEO, lndian National Ship-owners Association IINSA], Mumbai.
7.
President, ICC Shipping Association IICCSA], Mumbai.
IL Copy furnished for an information to the secretary to the Gow. of lndia, Minlstry of
Shipping, Gow. of lndia, New Delhi, w.r.t. the said Ministry's letter No. SD-11018/13/2015-
MD dated 14.06.16, on the subject.