Engineering Circular No. 116/2009

Subject:- Procedure to be followed for audit request and issuance of certificates under ISM Code.

1.0 Background:

It has come to the notice of the ISM cell of the Directorate that many of the companies (DOC holders) are not following the procedures laid down in MS Notices 28/2003 and 8/2004 on the ISM Code certification. The observations are as under:

1. Closure of the non-conformities (NC): Non-conformities raised during the audits are not closed within the prescribed time period;
2. Required one month notice period for DOC Audit are not being followed;
3. Request for audit is not always being made on opening of the window period and also required audit request form (ISM-03) is not submitted along with the application;
4. Validity of ISM Certificates is not being maintained. The above non-compliance leads to delay in the ISM Code certification process. As a result it becomes increasingly difficult not only to organize/undertake the audits but also to follow the laid down certification procedure. In view of above, all companies (DOC holders), responsible for implementation of ISM Code onboard and ashore, must follow the procedures given below to avoid delay in ISM certification process:

2.0 Procedure for ISM Code Certification:

1. The application for DOC Audit should be made with appropriate audit fee at least one month in advance.
2. The Company must take corrective and preventive actions to close NC(s) raised during the DOC/SMC audits within the stipulated time frame.
3. For Annual DOC audits, request for audit date should be made at the earliest without waiting till the closure of window period. (Example, DOC Valid date is until 09.05.2014, the window for the annual audit opens on 9th February of each year).
4. For Renewal DOC audits, request for audit date should be made at the earliest and the company shall ensure that the audit is completed satisfactorily at least two months before the expiry of the DOC to facilitate the Directorate to issue full-term DOC with effect from the date of expiry (ISM Code Clause No. 13.10)
5. The DOC audit request application must enclose the details of audit fees paid, duly filled ISM-03 form (to be downloaded from engineering circular No. 105 of 2009 dated 24.03.2009) and duly filled attached format i.e. Annex-A. Annex-A can also be sent by e-mail to ismcell@dgshipping.com; sbarik@dgshipping.com; mehrotrata@dgshipping.com; cs@dgshipping.com.
6. On satisfactory completion of SMC audit and closure of NCs within the prescribed time period and payment of required certification fee of Rs.1,000/- in favour of D.G. Shipping, Mumbai, the SMC for the recommended period will be prepared by the Directorate and dispatched immediately.
7. On satisfactory completion of DOC audit and payment of required certification fee of Rs.1,000/- in favour of D.G. Shipping, Mumbai, the certificate for the recommended period will be prepared by the Directorate and dispatched immediately.
8. Failure in closing the non-conformities within the prescribed period (maximum of three months), will be treated as major non-conformity on Company and their DOC or SMC, as the case may be, is liable to be rescinded.
9. For new application for Interim DOC, following are required to be submitted by the Company:
   1. Applicable fees in favour of D.G. Shipping for Interim DOC audit.
   2. Background of the Company
   3. Organization structure giving the qualification and experience of personnel.
   4. Types of ships for which DOC is being applied.
   5. SMS document (Apex) in compliance with ISM Code for the required ship type.
   6. Company Identification No.
   7. Copy of Registered document for office premise.

3.0                    On receipt and scrutiny of Company,s application for Interim DOC Audit, the Directorate may assign an auditor to carry out preliminary scrutiny of the Company's SMS document. After receiving the letter of nomination for scrutiny of SMS manual, the Company needs to submit the SMS manual with the concerned auditor. The auditor after satisfactory completion of preliminary scrutiny shall endorse and return the manual to the company and forward recommendation to the ISM Cell of the Directorate within the prescribed period. The ISM Cell of the Directorate, on receiving the recommendation, may nominate an audit team to the Company's premise to carry out the audit towards interim verification for the identified ship type(s). On receiving audit report from the auditor; the Company shall first address the non-conformities, if any, and then submit application with certificate fee of Rs.1,000/- for issuance of Interim DOC.

4.0 Issued with the approval of the Chief Surveyor with the Govt. of India.

Sd/-

(D. Mehrotra)

Dy. Chief Surveyor cum Sr. DDG(Tech)