**Executive Summary**
Merchant Shipping Notice No. 06 of 2014, issued by the Directorate General of Shipping (DGS), prescribes procedures for receiving and monitoring Vessel Sharing Agreements (VSAs) within the liner shipping industry. This notice, dated 09.05.14, ensures compliance with the Ministry of Corporate Affairs' notification exempting VSAs from the Competition Act, 2002, for a period until 10.12.14. It mandates the filing of VSAs with the Indian Register of Shipping (IRS) and outlines grievance redressal mechanisms.
**Key Points / Main Content**
* **Exemption Monitoring:**
* The DGS is required to monitor VSAs due to an exemption from the Competition Act, 2002, granted until 10.12.14.
* The DGS will conduct a joint review with the Competition Commission of India (CCI) after the exemption period to assess the impact of VSAs on competition.
* **Role of Indian Register of Shipping (IRS):**
* The IRS is nominated to receive, scan, and maintain a database of VSAs and related documents on behalf of the DGS.
* IRS will prepare monthly reports on VSAs and provide information to the DGS regarding complaints.
* VSAs already filed with the DGS will be forwarded to the IRS.
* **Requirements for Shipping Companies/Agents/Operators:**
* Shipping companies must file VSAs, in duplicate, with the IRS within 10 days of signing any new VSA or amendments.
* Each company part of a VSA must provide a self-declaration (Annexure-1) through its Indian agent, signed by the Managing Director, certifying that the VSA does not adversely affect competition.
* Shipping lines must provide monthly details of line-wise cargo loading and discharging at each terminal they operate in India.
* Copies of marine terminal operating agreements must be filed with the IRS within 10 days of signing.
* Copies of existing slot charter arrangements with other Indian shipping companies must be filed.
* **Grievance Redressal:**
* Any party alleging adverse effects on competition due to a VSA can file a complaint with the DGS, including justification and documentation.
* Complaints must be filed in writing and electronically.
**Impact Analysis**
**Stakeholder: Indian Register of Shipping (IRS)**
* **Impact:** The IRS is responsible for receiving, managing, and reporting on VSAs, taking on new administrative and data management duties.
* **Action Required:** Set up the infrastructure and processes to receive, scan, store, and report on VSAs, as well as handle related documentation and communication with the DGS.
**Stakeholder: Shipping Companies/Agents/Operators**
* **Impact:** Shipping companies are now subject to additional compliance requirements related to filing VSAs and providing self-declarations.
* **Action Required:** Establish processes for filing VSAs and related documents with the IRS, including obtaining self-declarations from Indian agents. Ensure monthly reporting of cargo handling data and copies of relevant agreements are prepared and submitted within the stipulated timeframes.
**Stakeholder: Aggrieved Parties**
* **Impact:** There is a formal process by which they can now make complaints to the DGS.
* **Action Required:** Any party aggrieved is now aware of the procedure by which they can submit their complaint to the relevant authority.
Key Entities Referenced
Vessel Sharing Agreements (VSAs): Agreements between shipping lines to share space on vessels, the monitoring and regulation of which are the primary focus of this notice.
Directorate General of Shipping: The regulator responsible for monitoring VSAs and issuing directions related to shipping in India.
Ministry of Shipping: The government ministry responsible for shipping-related matters.
Competition Act, 2002: The law from which VSAs were temporarily exempted, triggering this notice.
Indian Register of Shipping (IRS): The organization nominated to receive and process copies of Vessel Sharing Agreements (VSAs) on behalf of the Directorate General of Shipping.
qftdo:iffiI\ ot strPric
+a NsrRY
ffi fdliFm / orRlnuMrt cL
rrtmr
ft RiEr. e ,ffr /-sH' BUTLDT\C-
*F{ r'n!r{ rrc$o uurls
N.Fi6 aFt ,
dE ,i{ rti /$NrlRvrLLActRo^D
ii< rl uuu srncc'srt
ti<r I
q,/$Mi-'mN'
n€- a@
lr,4erchanl ShlpDno Notice No 06 o12014
D?!eq a9-!514
SL.JSA 4 12Q10
wn-,e.s i e M r (, r o, c.o.@ a,e,ll: i: g-dp;"t;i: :l ::': ":i.i: J:i1,":i::
::i;'.,h r
aom' 6
3^";i"'. ;l,Xj"l l":":T.";: r[#:r po rdLs ry
prov;ons orseclron 3" . o, fl l, hi eJ CompellLon Act z!uz'
"ffJ;:i,:ff ffi l3l;,"l':"
ilii::iili1 ,i'i::T :"ii:Icx:il;"f:,: 1"j I 11"1,
p'
Wnerers hp !. o p\e-olol r! rl re'p'!l o' ln- ' dr''F'' o " l 'aLrora op' arinq
pon
merchantshLps ofany nationaLlly l'om anv Ind an "'
#:ffifi r;:1":1""1"",#:,,$3il;":1,:,"[:::il.:["$!1"y
"i:e*iil:ii
the,:?rif,ll;?r"":;i?:
whe€as tor the p!.pose of monitorins $ch asr4menls
';#n:rj:::jl"""l#:!:i:3:11""ff,[:]:,?::jil ,he cop es of the ex sr ns
.vsAs
;;;; ;, naria a" ;" ;"i;,"i inro bv them whrch wo! d apprv ro ;,::Hfl:JffilT;:X1
li: ",1,1'XXilili",i ifrl"!;fl "::,#::'ff "iiiG';"i." davs oI rhe s sn ns or s'|rch
agreemenls (s), whichever is aterandi
!i
whe,eas on ihe comprer on the :I:lpl9l,1:[f,J#?r'"T;
":'9, 'j,1"?'1,"""i?j
:i;:i'. 3*:':i.:X 3' l.ii i:! i1"",",i:"'1"r"..'f *""i"- +*"
--..'i"""'i,* -, "*X" Jt,.*: '.('ailL ' rs 2'v aoore( rb' rover)e e'e t or Lorpelol
ppro Oo/ o'ldia r) Fmpowered o issrp
wnereas l- Dtredor GFle'!dl ot Sr
*::",;:*i;ii::* ru:lT r:;::"li"J;llT,*:tiff ?.I ::fl f ;i,:"i: :lJl-2-
N l"o :w i. h .1erp ;;lo -'e ';. l;rh ;e ; ;D ;t ;re clot Gere'a ot S v' sro rp sr lg 8 G oo v -r o o 1r rlr oo 'i Ia r er l so a'd re e' o d ooL er s r ' h ep rr ec bF /
irre a,o-sa.o
;*; ,." ;;*"; pro'eoJr* o be oro'eo b\ dr' Ir'e o'r'o1</ enrirec
conce.ned, in this conlexl;
1 tne tnodn R"os.e o. 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