Frequently Asked Questions
Any Indian entity, whether a citizen, company, or co-operative society, that charters an Indian-flagged vessel or a foreign-flagged vessel must obtain a license from the Director General of Shipping under Section 406 of the Merchant Shipping Act, 1958. This license is necessary for performing any import, export, coastal, or offshore operations within or outside India.
Any non-Indian entity, other than Indian citizens, companies, or co-operative societies, that charters a vessel engaged in the coasting trade of India must obtain a license from the Director General of Shipping under Section 407 of the Merchant Shipping Act, 1958.
No, a foreign charterer does not require a license under the Merchant Shipping Act, 1958, for chartering a vessel for export or import operations with India. However, a license is required if the vessel is engaged in coastal trade with India.
Please refer to SD Circular 04 of 2015 dated 08.12.2015.
The applicant can apply online for Import, Export and Coastal licenses through the DG Shipping website through following procedure:
- Go to www.dgshipping.gov.in → I.T. AND E-GOVERNANCE → e-Governance FAQs.
- You will be redirected to a new page.
- Register as a Charterer by clicking on the New User link.
- After registration or if already registered, log in using your User ID and Password.
- After login, navigate to:
- Licensing & Chartering → Submit application → Chartering Foreign flag vessel.
- Choose the type of permission:
- Import
- Export
- Coastal Trade
- Bare Boat Charter cum Demise
- Contract of Affreightment
- Time Charter
- Voyage Charter
- Fill in the following details:
- Ship Particulars
- Address of Applicant, Owner, and Disponent Owner
- Certificate details as per the provided checklist
- Pay the applicable fees online through RTGS.
- After payment, upload all applicable documents in a single PDF:
- Application form
- Fees receipt
- IMO crew list
- INSA NOC or Tender enquiry (whichever is applicable)
- Any other required documents
- For Coastal licenses, you can pay fees via Bharatkosh and submit the receipt to sd-dgs@nic.in.
General Guidelines for Online Application
- Fill the form carefully, ensuring all fields are completed correctly.
- Do not leave essential fields such as Quantity of Cargo, Laycan, Port of Loading, Discharge, etc., empty.
- Specify the quantity of cargo with the correct unit (e.g., MT, KBBL).
- Ensure all entered data matches the INSA NOC/TENDER document.
Please refer to DGS letter no. SD-(Misc)-6/2009 dated 21.11.2017 reg Payment of fee to DGS through Bharat Kosh.
Follow the procedure given below to pay the fees through Bharatkosh:
- Go to Bharat Kosh.
- Click on "Non-registered users".
- Under the Depositor’s Category, select “Ministry/Department”.
- Under the Purpose, select “OTHER RECEIPTS PAYABLE TO PAO SHIPPING MUMBAI”.
- Under the Payment Type, select “PAYMENT TO DG SHIPPING MUMBAI”.
- Under the Ministry, select “SHIPPING”.
- Enter the amount.
- Under the Remark, fill in the following details:
- Name of Vessel.
- Name of Charterer.
- Online application number and date.
- Laycan.
- Fee for ship license, chartering permission, or SPL (mention as appropriate).
- Proceed further to make the payment.
Please refer to SD Circular no. 02 of 2010 dated 04.02.2010 and Amendment to SD Circular No. 02 of 2010 regarding the fees for various types of chartering permission cum license in respect of Foreign flag vessel. The same is illustrated below:
| Type of Chartering Permission | Fees Applicable |
|---|---|
| Import/Export on single voyage basis | Rs 40,000/- for the first 30 days and for every contiguous block of 30 days thereafter, including fractions in terms of days. E.g., The fees for 40 days or 60 days would be the same i.e. Rs 80,000/-. |
| Import/Export on time charter basis | Rs 40,000/- for the first 30 days and for every contiguous block of 30 days thereafter, with fractions charged at Rs 1,500/- per day. E.g., The fees for 40 days would be Rs 55,000/- [Rs 40,000/- (for 30 days) + Rs 1,500 × 10 days]. |
| Single Voyage Coastal Permission (SVCP) | Rs 60,000/- for the first 30 days and for every contiguous block of 30 days thereafter, including fractions in terms of days. E.g., The fees for 40 days or 60 days would be the same i.e. Rs 1,20,000/-. |
| Coastal on time charter basis | Rs 60,000/- for the first 30 days and for every contiguous block of 30 days thereafter. Any fraction beyond these blocks is charged at Rs 1,500 per day, plus an additional Rs 20,000 for the fractional period. E.g., The fees for 40 days would be Rs 95,000/- (Rs 60,000 + Rs 20,000 + Rs 1,500 × 10). |
| Worldwide time charter | Rs 70,000/- for the first 30 days and for every contiguous block of 30 days thereafter. Any fraction beyond these blocks is charged at Rs 1,500 per day, plus an additional Rs 30,000 for the fractional period. E.g., The fees for 40 days would be Rs 1,15,000/- (Rs 70,000 + Rs 30,000 + Rs 1,500 × 10). |
| Offshore Operation | Rs 40,000/- for the first 30 days and for every contiguous block of 30 days thereafter, with fractions charged at Rs 1,500/- per day. E.g., The fees for 40 days would be Rs 55,000/- [Rs 40,000/- (for 30 days) + Rs 1,500 × 10 days]. |
| Late Fees | Rs 50,000/- |
| Amendment Fees | Rs 10,000/- |
Please refer to Para 2.1 of SD Circular 02 of 2002 dated 08.11.2002.
The late fee of Rs 50,000 is applicable when the applicant fails to submit the application in the appropriate format with the necessary fees at least three working days prior to the commencement of the laycan.
Example:
Suppose the laycan is on 16.07.2024 (Tuesday). To avoid late fees, you need to submit the application and fees at least three working days before the laycan. Here’s how it works:
- 15.07.2024 – Monday – Working Day
- 14.07.2024 – Sunday – Non-Working Day
- 13.07.2024 – Saturday – Non-Working Day
- 12.07.2024 – Friday – Working Day
- 11.07.2024 – Thursday – Working Day
Late Fee Applicability:
- If you submit the fees on or after 11.07.2024, the late fee will be applicable.
- If you submit the fees on or before 10.07.2024, the late fee will NOT be applicable.
Please refer to SD Circular 04 of 2015 dated 08.12.2015.
Applicants must submit a single PDF containing the following documents as per the checklist, in the specified order, either by uploading it to the E-gov system or by emailing it to sd-dgs@nic.in.
Required Documents:
- Online submitted Application
- FEES (Online RTGS / Bharat Kosh receipt)
- INSA NOC/ Tender document, whichever is applicable (Include proof of communication to INSA if Global Tender is followed)
- Charter Party Agreement or Fixture Note
- Certificate of Registry
- P & I Club Certificate
- International Ship Security Certificate
- Safe Manning Document
- International Tonnage Certificate
- Classification/Class Certificate
- International Load Line Certificate
- International Oil Pollution Prevention Certificate
- Cargo Ship Safety Construction Certificate
- Cargo Ship Safety Equipment Certificate
- Cargo Ship Safety Radio Certificate
- International Sewage Pollution Prevention Certificate
- International Air Pollution Prevention Certificate
- Safety Management Code Certificate
- Document of Compliance
- LRIT Certificate
- Certificate of Fitness to Carry Chemicals (NIS Certificate), if applicable
- Right Ship Certificate or CAP Rating, if applicable (as per age norms)
- IMO Crew List duly signed by the Master with valid Passport and Seaman ID
- Any other documents, if applicable
Please refer to SD Circular 01 of 2013 dated 18.01.2013 and Amendment to SD Circular 01 of 2013 dated 05.02.2013.
Chartering permissions for foreign flag vessels engaged in coastal or offshore operations are subject to the following requirements for engaging Indian crew and trainee cadets:
| Period of License | Requirement for Indian Crew & Trainee Cadets |
|---|---|
| First 30 days in a calendar year | No Indian crew or trainee cadets are required. |
| License exceeding 30 days but up to 90 days |
|
| License exceeding 90 days |
|
Valid P&I certificates for chartering permission can be obtained from the following:
- Principal Clubs and Affiliated Associations that are part of the International Group of Protection & Indemnity Clubs (IGP&I). The list of IGP&I Clubs can be accessed here: IGP&I Clubs List.
- Non-IG Insurance Companies or Protection & Indemnity Clubs approved by DG Shipping under Rule 2(e) of the Merchant Shipping (Regulation of Entry of Ships into Ports, Anchorages, and Offshore Facilities) Rules 2012. The list of approved Non-IG Insurance companies can be accessed here: Approved Insurance Companies.
No, an INSA NOC for a single voyage can only be used for chartering one vessel and cannot be used for more than one vessel.
Please email sd-dgs@nic.in providing the application number, vessel name, and details of the discrepancy. The SD Team will respond with the possible solution.
Please refer to Corrigendum 1 to DGS Order 06 of 2023 dated 01.07.2023.
Chartering permission may be granted for foreign flag Bulk Carriers aged between 15 and 20 years, provided:
- The vessel is classed with an IACS member.
- The vessel submits a Rightship Inspection Report with a minimum Rightship safety score of 3.
Please refer to Corrigendum 1 to DGS Order 06 of 2023 dated 01.07.2023.
Chartering permission may be granted for foreign flag Oil Tankers aged between 15 and 20 years, provided:
- The vessel is classed with an IACS member.
- The vessel submits a CAP 1 rating for Hull and CAP 2 for Machinery & Cargo Systems.
Please refer to Para 5 of SD Circular 02 of 2002 dated 08.11.2002. The amendment to licence is governed by the following provisions:
- Not more than twice will amendments be allowed in respect of the same licence.
- If an amendment seeks variations in more than three parameters, it will be treated as a fresh case.
- Any variation on laycan exceeding one week on either side will be treated as a fresh case.
- A fresh case would mean that the applicant has to follow the procedure from the beginning once again.
Note: The Amendment fee is Rs. 10,000/- as per SD Circular no. 02 of 2010 dated 04.02.2010. The payment should be made through the Bharatkosh Portal.
Please refer to Para 5 of SD Circular 02 of 2002 dated 08.11.2002. Since the number of parameters seeking variation exceeds three, amendments cannot be allowed. You will need to apply for chartering permission again as a fresh case, following the procedure from the beginning.
Since the INSA NOC does not show Gopalpur as the port of discharge, please email sd-dgs@nic.in to request an amendment to change it to Gopalpur for the chartering permission. The SD team will coordinate with INSA to address any objections regarding the amendment. If INSA raises no objections, the SD team will notify you accordingly and provide instructions on the applicable fees for making the amendment.
Please refer to Para 5 of SD Circular 02 of 2002 dated 08.11.2002. You can apply for an amendment to the existing chartering permission to substitute the vessel if the number of parameters to be changed in the existing license is not more than three. If more than three parameters need to be changed, you will need to apply for a fresh license by following the procedure from the beginning.
Please refer to SD Circular 01 of 2004 dated 14.01.2004. The period of licence on COA proposals shall normally be limited to one year. However, in exceptional cases where the charterer can furnish good and sufficient reasons, it may be extended for a further period of 2 years. The maximum permissible period shall be 3 years.
Please refer to SD Circular 01 of 2004 dated 14.01.2004. The processing fee for “in principle approval” shall be payable for estimate voyages as applicable in case of voyage permission. During the execution of the COA, the charterer shall submit the final proposal to the Directorate as and when the vessel(s) is/are identified supported with the requisite documents. At this stage the charterer shall pay 50% of voyage permission fee.
Example: The fees for "in principle approval" for 10 shipments would be Rs 4,00,000/- (Rs 40,000 × 10). When the vessel is finalized during the contract period, the fee for each shipment shall be Rs 20,000/- (50% of Rs 40,000/-).
Section 22 of the MS Act, 1958 mandates the registration of any seagoing ship, wholly owned by an Indian entity under the MS Act. However, DGS Order 10 of 2014 allows the flagging of ships owned by Indian entities outside India under the Indian Controlled Tonnage (ICT), subject to the conditions stipulated in DGS Order 10 of 2014 dated 23.07.2014. This should be read in conjunction with SD Circular 03 of 2015 dated 28.08.2015 and SD Circular 05 of 2016 dated 01.04.2016.
Note: The ICT permission is granted for a period of one year.
Please refer to SD Circular 03 of 2015 dated 28.08.2015 and SD Circular 05 of 2016 dated 01.04.2016. The vessels under the Indian Controlled Tonnage (ICT) applying for a license shall pay Rs. 20,000/- as an initial one-time processing fee and Rs. 15,000/- as license fee per month.
The documents required for obtaining an SPL for a vessel engaged in offshore operations include INSA NOC, Charter Party Agreement/ Contract / Fixture note, P & I Clubs, and all Statutory Certificates according to Circular No. 02 of 2010, dated 08.11.2002.
According to D.G. Shipping, Shipping Development Circular No. 02 of 2010, dated 04.02.2010, the processing fee for a Specified Period License (SPL) per ship per month is Rs. 40,000/- for a foreign-flag vessel operating in offshore operations.
The required documents for a High-Speed Craft (HSC) passenger vessel operating in offshore activities include the following:
- All Statutory Certificates
- An approved copy of Route operational manual, Craft operating manual, Maintenance manual and servicing schedule
- The permit to operate and compliance with provisions of Section 1.9 of the HSC Code
- Approved Structural Fire protection plan for passenger craft and the evacuation time required as per the HSC Code, certified for night navigation
- Compliance to all general conditions of DGS Order 20 of 2022
The Crew boats intended for operation in offshore are subject to the requirements of DGS Order 20 of 2022 dated 20.10.2022.
