India Set To Overhaul Merchant Shipping Laws For The Modern Era

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  • In a significant move, India is gearing up to revamp its merchant shipping laws, replacing the existing Merchant Shipping Act of 1958.
  • The proposed provisions aim to bring the legislation in line with contemporary international maritime conventions, simplify ship registration under the Indian flag for various entities, and introduce electronic registration processes.

Incorporation of International Conventions

The new provisions will integrate relevant international maritime conventions to which India is a party. This move ensures that the legal framework aligns with current global standards in the maritime industry.

Facilitation of Ship Registration

The proposed changes seek to streamline the registration of ships under the Indian flag. This includes making it easier for Non-Resident Indians (NRIs), Overseas Citizens of India, corporates, including limited liability partnerships, to register their ships.

Electronic Registration and Recognition

The overhaul intends to enable electronic registration of vessels and grant recognition to e-documents such as log-books and record books. Embracing digital technology is a key focus to enhance efficiency and keep pace with technological advancements.

Three-Tier Dispute Resolution Mechanism

The introduction of a three-tier dispute resolution mechanism is on the agenda. This mechanism aims to address disputes between ship-owners and salvors, as well as conflicts involving seafarers, ship owners, masters, or agents. Notably, the resolution process aims to make the award of the shipping master enforceable.

Definition of Ambiguous Terms

Ambiguous terms like “abandoned vessels” are being defined, providing clarity in interpretation. Additionally, the new rules introduce measures against “unsafe vessels,” empowering the central authority to direct port authorities and others to take action regarding abandoned vessels.

Marine Incidents and Emergent Response

The proposed provisions include a dedicated section for marine incidents and emergent response. This move aims to instill confidence in ship-owners by establishing statutory measures for vessel safety.

Stringent Rules for Pollution Prevention

The revamped laws contemplate stringent rules, including persecution and conviction, to prevent pollution and contain its impact. Air pollution resulting from ships operating at sea is explicitly covered, ensuring comprehensive actions.

Reduction in Compliance Burden

The new rules aspire to reduce the compliance burden, promoting ease of doing business in the maritime sector. Embracing digital technologies, improving ownership criteria, and providing a statutory framework for handling maritime emergencies are overarching goals.

This ambitious legislative overhaul marks a proactive step by India to adapt its maritime laws to contemporary realities, foster industry growth, and enhance regulatory efficiency. The proposed changes are currently under deliberation with the Ministry of Ports, Shipping, and Waterways playing a central role in the process.

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Source: The Hindu Business Line