World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

It may thus be observed that the above policy applies to situations wherein, an Indian entity charters a vessel.

WTO Secretariat's report, page 163, paragraphs 138

11. 
    Could India explain its license regime in more detail, in particular if there are different criteria/rules for granting license to foreign flagged vessels?
    

Reply: The license regime is as per the Merchant Shipping Act, 1958 and the guidelines issued by the Director General of Shipping. The details are available at the website www.dgshipping.com.

WTO Secretariat's report, page 164, paragraphs 142

11. 
    Is there sufficient progress achieved in the development of costal shipping? If not, does India foresee further actions? Could these include further opening of market access and thus lowering costs and increasing shipping services availability?
    

Reply: Coastal shipping in India is still at a nascent stage as road transport in India accounts for over 50% of ton mile of cargo traffic followed by rail with about 30% and less than 10% by coastal shipping. Though the number of coastal vessels in Indian fleet is about 70%, it is only 10% of the Indian tonnage in terms of GT. Growth in coastal shipping has not been able to keep pace with the growth of the logistics industry in India.

The Maritime Agenda 2010 20 and the proposed coastal shipping policy include various actions required for promoting coastal shipping in India, which include, promoting river sea vessels, manning relaxation without compromising on the safety, financial incentives, infrastructural facilities, modal shift in cargo from rail and road, legal issues, declaration of IV limits in different states, data base and communication infrastructure, cabotage policy support, custom processes and procedures for the development of seamless movement of cargo and growth in Coastal shipping. These actions are part of a proposed policy document and are expected to open the market access, lower costs and increase shipping services availability for Indian coastal trade in the near future.

WTO Secretariat's report, page 165 166, paragraphs 149 150

11. 
    In view of the need identified by the "National Maritime Development Programme" to modernise infrastructure and to improve cargo handling and transition, does India foresee further action to promote foreign investment and expertise? The recent decision to increase import duties on dredgers from 0% to 9.577% and on related spare parts from 12.83% to 23.845% as well as the new requirement that a certain percentage of the crew of international dredging companies providing services in India must be composed of Indian citizens could also adversely affect the implementation of the NMDP. Could India share its views?
    

Reply: To modernize infrastructure and to improve cargo handling and transition, various projects have been identified afresh in the comprehensive vision document on maritime sector for the next ten years released by the Government of India as Maritime Agenda, 2010 2020, which also includes investment through private sector and the foreign investments.

As far as creation of berths (additional capacity) and modernization of existing berths in major ports as per NMDP (National Maritime Development Program) is concerned, good number of Port infrastructure projects are being taken up on PPP mode as per guidelines of the Ministry on private sector participation in port sector of 1996 which also allows 100% FDI which includes expertise and experience in handling/operating ports.

New requirements for crew have been prescribed for not only dredgers but for all foreign vessels operating in Indian coastal waters under license. Accordingly DGS circular 1A and 1B have been issued. DGS circular 1A of 2011 mandates relaxation in the crewing requirements of Indian ships. As per this, Indian ships operating in the coastal waters of a foreign country can engage crew of that nationality while operating in their coastal waters if such requirements are mandated by that country. This has been done in order to prevent either loss of Indian business or of Indian tonnage in terms of the need to flag the ship out of India. Further DGS Circular 1B (for engaging Indian crew on board the ship in Indian coastal water) has been issued. As per this circular, a minimum of one third Indian officers and ratings should be engaged on board such vessels when they are chartered for operation in the Indian coastal waters for a period of more than 90 days and must hold relevant Indian certificates. Similarly where the period of licence exceeds 180 days a minimum of one half of Indian officers and ratings is required to be employed. Further where the period of licence is not continuous the above condition will be imposed whenever the cumulative period of licence exceeds 90 days or 180 days in a calendar year. Similar regulation exists in countries like Brazil, Indonesia, etc.

Further on request of the shipping industry, it has been decided that in case of non deployment of Indian crew/officers, the company /ship owners'/charterers are required to provide training slots for the Indian crew/officers on the same scale as prescribed for the regular tonnage tax scheme i.e. 10:1.5 for the entire period of application/requirement of the licence in respect of the deficient number of man days required.

Air transport:

WTO Secretariat's report, page 166, paragraphs 152

The Indian authorities announced earlier this year that they are planning to review all the airport concession agreements.

11. 
    Could India provide more information on the conditions of this review and the impact it could have for foreign investors/airport operators?