Procedure for Issue of Licence to Indian & Chartered Foreign Flag Vessels

Shipping Development Circular No.3 of 2006

NO: SD-9/CHRT(82)/97-III                                                                         Dated 18th July, 2006

Sub: Procedure for Issue of Licence to Indian & Chartered Foreign Flag Vessels

This Directorate had specified a period of 3 working days as the maximum time it would endeavour to take to process cases for issue of licences under section 406 & 407 of MS Act. It has been found that this period is being exceeded partly because Indian vessel owners and charterers of foreign flag vessels while submitting their application for licence do not furnish all the documents and required statutory certificates alongwith the correct fee.

2. In order to streamline the process for chartering foreign flag vessels.

a) The applicant should calculate 3 clear working days, not counting the day of submission of application to the office.
b) The applicant should apply for NOC to INSA simultaneously while submitting the application to this office. Wherever "Global Tender" is followed or invitation for "Expression of Interest" is advertised by any charterer or Principal for any project work to be completed by Contract, a copy of the document published in the newspaper or in electronic format shall also be communicated to INSA simultaneously.
c) INSA should place it's NOC or offer of Indian vessel on its website within 2 days or as applicable. If no response for either is noted it will be presumed that there is no vessel to be offered and the charter permission will be given.
d) In case Indian flag vessel is available, then the applicant shall be allowed to withdraw this application for charter alongwith DD of the fees.
e) The licence will be issued to the vessels based on the validity of statutory certificates that are required to be possessed by the vessel. As such applicants in their own interest are required to check the validity dates of all their certificates before applying.
f) Chartered vessels, which are above 25 years of age and not classed with any IACS member classification societies or at the discretion of DG will be subjected to an enhanced inspection under PSC on arrival at any Indian port.
g) If the application is incomplete in any respect, no reference will be made for completion of lacunae and the application will be rejected with a letter to the applicant giving reasons and pointing out the lacunae. The applicant will however be free to reapply after due rectification.

3. To streamline the procedure this Dte. has devised checklists now added to application forms appended here to. Charterers & applicants are hereby advised to ensure that they append the appropriate checklist duly completed with their applications and also attach copies of all the applicable certificates ( with attachments) and documents alongwith the correct fees.

4. The applicants may ensure that charterer's name, correct and realistic laycan, confirmed load and discharge ports in case of voyage charter, name and quantity of cargo, period of charter and place of delivery in case of time charter etc. are given which should match with that as indicated in NOC issued by INSA.

The application will be considered for approval only on compliance of the guidelines issued by SD Circular 2/2002.

This issues with the approval of the Director General of Shipping & Ex-Officio Additional Secretary to the Govt. of India.

Asstt.Director General of Shipping

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