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In general, Cabotage refers to shipping along coastal routes between foreign sea ports, and also to the restriction on the operation of vessels between sea ports within a particular country.The Indian Cabotage rules are contained in Sections 406 and407 under Part XIV of the Merchant Shipping Act 1958 (the Act).The Merchant Shipping Act as is existed today has 24 parts. The review committee appointed by the Government of India, in 1991 under the Chairmanship of DG(s) to study the provision of the Act in its entirety and give suggestions for amendments taking into consideration the International Convention which India has ratified but not statutorily enacted, has suggested comprehensive amendments to the Act including the amendment of the preamble of the Act.Cabotage law in India provides right of first refusal to Indian flagged ships for coastal shipping. Such or similar laws are there in various other countries of the world, with the intent to promote/protect interests of domestic shipping industry.The first Indian Merchant Shipping Act was enacted in 1923, the provision of which were in line with the U.K. Merchant Shipping Act, 1894. After independence, taking care of new conditions and changes that have taken place in the Shipping Industry, a comprehensive legislation passed by Indian Parliament in 1958 known as Merchant Shipping Act, 1958. The Act has been constantly under revision and amendments to ratify the changes approved by the International Maritime Organization, through its conventions and protocols, to which India is a Member.BASIC HISTORY:1.1.1. India has been a seafaring nation for centuries. She has built up a glorious maritime history and tradition much before the rise of European maritime powers. The Indian ships used to sail across many seas and carried on prosperous trade with Asian and Middle East countries. Since the advent of British Rule, the development of indigenous shipping industry was discouraged because of preferential treatment given to British shipping. The restrictive British navigational laws not only hindered the growth and development of Indian shipping but gradually made it disappeared from High Seas.1.1.2. The Indian Merchant Shipping Law as it existed in 19th century has never been on sound footing. The British law was applicable to Indian ships trading in international sea voyages as these ships were required to be registered under U.K. Merchant Shipping Act and therefore, technically they were British Ships although registered in India. The Indian Merchant Shipping Law was nebulous and sketchy. Between the years 1938 to 1947, the following legislation on merchant shipping were held the field (a) The Bombay Coasting Vessels Act, 1938 (b) The Indian Registration of Ships Act, 1841 (as amended in 1950); and (c) The Indian Merchant Shipping Act, 1923. The first of the three enactments referred to above dealt with regulations of seagoing vessels. The 1841 act embodied in it provisions relating to registration of sailing vessels. Both these enactments had, however, been so modeled as to apply only to small coasters and sailing vessels. The third Act, namely, the Indian Merchant Shipping Act, 1923 was fairly comprehensive. Indian Merchant Shipping Law consolidating the provisions of the earlier two acts was supplemented by passing of the Seamen (Litigation) Act, 1946 and Control of Indian Shipping Act, 1947. This Act had, however, only consolidated the laws on merchant shipping and it did not revise the law and therefore, was found wanting in many respects. The provisions of the International Conventions with respect to Load Lines, 1930 and SOLAS, 1948, both of which were ratified by India were later on incorporated through Indian Merchant Shipping Amendment Acts of 1933 and 1953.1.1.3. Immediately after the independence to suit the requirements of a maritime country like India, the Merchant Shipping Act, 1958 was passed by the Indian Parliament. This Act had made good the main deficiency in the earlier laws that they did not provide for registration of what may be termed as Indian Ships. Certain enabling provisions were also incorporated in the Act to accelerate the pace of development of shipping in the post independence period. This Act is divided into 24 parts, each part dealing with specific aspects of merchant shipping like registration of ships , sailing vessels and fishing vessels, National Shipping Board, manning of ships, engagement, discharge and repatriation of seamen and apprentices, safety of passenger and cargo ships, control of Indian ships and ships engaged in the coasting trade, collisions, prevention and control of pollution of the sea by oil from ships, limitation of shipowners' liability, civil liability for oil pollution damage etc.AMENDMENTSThe different parts of the Act came into force on different dates as indicated below:-(i) Parts I & II came into force on 15.12.1958;(ii) Part IV came into force on 17.3.1959;(iii) Section 7, Part XIV (including Section 405-414), Section 436, (in so far as it relates to offenses mentioned against S.Nos. 122 to 125 (both inclusive), Sections 437, 438, 439, 440, 441, 458, 459 and 460 and so much of section 461 and of part I of Schedule as relates to the Control of Shipping Act, 1947 came into force on 1.4.1960;(iv) The remaining provisions of the original Act (except the amendments made subsequently) came into force w.e.f. 1.1.1961;(v) Part VIA -providing for obligation of certain certificate holders to serve Govt. or in Indian Ships was inserted by amendment Act of 1979 came into force from 4.5.1979;(vi) Part IX A- dealing with nuclear ships inserted by Amendment Act of 1966 came into force from 28.5.1966.(vii) Part X A -giving provisions for limitations of liability of owners in case of certain damages inserted by Amendment Act of 1970, came into force from 15.9.1972; (viii) Part X B- giving provisions for civil liability for oil pollution damage was inserted by Amendment Act of 1983 came into force from 18.5.1983;(ix) Part XV A- giving provisions for fishing boats inserted by Amendment Act of 1983 which came into force from 18.5.1983.1.2.4. Intents and purposes:- The intent and purpose of the Act is explained in the preamble to the Act, which is as follows:-"An Act to foster the development and ensure the efficient maintenance of an Indian mercantile marine in a manner best suited to serve the national interest and for that purpose to establish a National Shipping Board and to provide for the registration of Indian Ships and generally to amend and consolidate the Law relating to Merchant Shipping”1.3.1. Amendment of the M.S. Act, 1958 :The Merchant Shipping Act, 1958 has been amended on thirteen occasions since 1958 and the major amendments were made as indicated below :-(a) In 1966, the provisions of the International Convention for the Safety of Life at Sea, 1960 were inserted in the Act;(i) The Special Trade Passenger Ship Agreement, 1971 and(ii) The Protocol on space Requirements for Special Trade PassengerShips, 1973. The amended provisions of Law aim at upgrading safety requirements applicable to special Trade Passenger Ships (Formerly known as unberthed Passenger Ships)(e) In 1979, provision for placing an obligations on the persons obtaining certificates of competency under the Act to serve Government or Indian Ships for a specified period was incorporated in the Act;(f) In 1981, provisions to enable the Co-operative Societies to own and register ships was incorporated in the Act;(g) In 1983, the provisions of the International Convention on Control and Prevention of Pollution of Sea by ships in accordance with the amendments to the 1954 Oil Pollution Convention; giving provisions for civil liability for Oil Pollution damage, was incorporated in Part X B of the Act. The 1983 amendment act also provided to insert new provisions for registration of fishing boats, their inspection etc, in Part XVA of the Act,(h) In 1984 provisions in relation to Welfare of Seamen and insurance of crew of sailing vessels, etc. was incorporated in the Act;(i) In 1986, Section 80 of the Act regarding grant of certificate of service to naval officers was deleted from the Act, as the International Convention on Standards of training, Certification and Watch-keeping 1978 (to which India is a party) does not permit grant of certificates of service without examination.(j) In 1986, an Act called the Shipping Development Fund Committee (Abolition) Act,1986 was passed to abolish the SDFC constituted under the M.S. Act, 1958. The Central Government delegated the Shipping credit and Investment Company of India Limited, a Company registered under the Companies Act, 1956 ( 1 of 1956) with all its functions in 1987.(k) In 1987 provision with regard to manning of ships by certificated officers in accordance with the Standards of Training, Certification and Watch-keeping Convention of 1978 was inserted in the Act;(l) In 1988, provisions of the International Convention on Civil Liability for Oil Pollution Damage, 1969 and its 1976 Protocol was inserted in Part XB of the Act;(m) In 1993, on the recommendation of the M.S.Act Review Committee, the Sections 21,42,45,51, 412 and 414 of the M.S. Act, 1958 were amended. The Govt. of India in 1991, set up a Review Committee under the Chairmanship of Director General of Shipping to review the Merchant Shipping Act 1958 in its entirety taking into consideration the international conventions which India has ratified but not enacted statutorily. The Committee has gone into depth of the provisions of M.S. Act 1958 and has suggested wide ranging amendments of various sections including the preamble. The intent and purpose of the Act is better explained in the suggested preamble by the Review Committee which now includes to provide for registration of Indian ships, safety.of ships, welfare of seafarers etc. These suggestions/recommendations of the Review Committee are under consideration of the Government to amend the M.S. Act 1958 for incorporating the same. The policy of liberalization adopted by the Government since 1991 has also been taken care of for inclusion in the Merchant Shipping Act.The basic provisions of Act :Given in various parts are as under: -3.3 Part I deals with the preliminary giving short title of the Act and date of commencement, application of the Act and definitions of the terms used in the Act. The definitions have been given for 66 terms. Besides certain terms have been defined in their appropriate part where they have occurred specifically.3.3.1 The review committee has suggested to delete the definition of the following terns on the ground that some of the terms defined under section 3 of the Act have abundant clarity as to their meaning in other relevant parts of Act. These are clause 5 - country to which Load line convention applies, clause 6 - country to which safety convention applies, clause 19 - Load line certificate, clause 20 - load line convention, clause 26 - pilgrim, clause 27 - pilgrimage, Clause 28 - pilgrim ship, Clause 37 - Safety Convention, Clause 38 - Safety Convention Certificate, Clause 53 - valid International load line Certificate and Clause 54 - valid safety convention certificate.3.3.2 The review committee has suggested amendments of the definition of the following terms: -Clause 1(a) Coasting ship, Clause 2 - Coasting trade of India, Clause 3 - distressed seaman, Clause 12 - Fishing vessel, Clause 16 - Home Trade Ship, Clause 23 - Owner, Clause 29 - Port of Registry, Clause 35 - Registrar, Clause 42 - Seamen, Clause 45 - Ship, Clause 55 - Vessel and Clause 58 - Wreck.3.3.3 The committee also suggested to add the definition of following terms in Section 3. Exclusive economic zone, Skipper, Storm, Tanker, Chemical Tanker and Gas Carrier.3.4 Part II of the Act contains provisions relating to the establishment and composition of' National Shipping Board, its functions and powers of the Government to make rules in this respect for term of office of members, appointment of officers or other allowances of Board members.3.5 Part III deals with the General Administration, appointment of Director General, establishment of Mercantile Marine Departments, Shipping Offices, Seaman's employment offices and Sea-men's Welfare Offices. It also deals with the appointment of Principal Officers at MMD, Mumbai, Calcutta and Madras and other officers at other ports, appointment of surveyors, radio inspectors, Shipping Masters, Director of Sea-men's Employment Offices and Sea-men's Welfare Officers.3.6 Part IV - which dealt with the formation of Shipping Development Fund and establishment of Shipping Development Fund Committee, has been abolished vide M.S. (Amendment) Act of 1986 (66 of 1986)3.7 Part V deals with the registration of Indian ships. It defines the Indian ships, contains provisions for obligation to register, procedure for registration, Grant of certificate of registry, endorsement for change of Master and Owner, provision far transfer of ships shares etc., rules as to name of ship, provisions for registry of alternations registry a new and transfer of registry, national character of the ships and flag etc.3.8 Part VI - gives provisions relating to the certificates of officers - Masters, Mates, Engineers, Skippers etc., and also requirements of officers on board various category of ships. Review Committee has recommended that instead of specifying the manning scale in the Act itself, Government should have rule making powers to prescribe different manning scale for different types of ships and also to carry a safe manning document on board the ship.3.9 Part VI A contains provisions for obligation of certain certificate holders to serve Government or in Indian ships.3.10 Part VII deals with seamen and apprentices. It gives vide ranging provision for classification of seamen, their engagements, discharge, payment of wages, their right for wages dispute between seamen and employers, provisions for property of deceased seamen and apprentices, distressed seamen, provisions for health and accommodation, protection of seamen in case of litigation and other matters, provision as to discipline, duties of Shipping Master, business of Sea-men's employment offices and function of National Welfare Board for seafarers, provisions for rule making powers for imposition of the Board, term of office of members, procedure for conduct of business, levy of fee for providing amenities to seamen and procedure for collection and recovery of Levy fee.3.11 Part VIII deals with passenger ships, their survey, Certificate of survey, powers of surveyor, fee, duration of survey, etc. It provides for keeping order in passenger ships specifying certain acts of persons as an offense under the act. This part also contains provision for special trade passenger ships and pilgrim ships.3.12 Part IX of the Merchant Shipping Act 1958 deals with the provisions relating to Safety.This part gives the provisions relating to construction rules for ships, prevention of collisions, life saving appliances and fire appliances, installation of radio telegraphy radio telephony and direction finders, signaling lamp and provisions relating to stability information. The part also deals with the provisions relating to Safety Certificates, Safety equipment certificates, Safety radio telegraphy Certificates, exemption certificates, etc., provision for determining load lines, issue of load line certificates and special provisions as to ships other than Indian ships. This part also provides powers to make rules as to timber cargo, carriage of dangerous goods, grain loading plan and carriage of grain. The provisions also exists for sub division load lines, un-seaworthy Ships, detention of unsafe ships and liability for cost of detention and powers to make rules to issue certificates under this part.3.13 Part IX A Deals with Nuclear Ships which includes application or non application of certain provision of this Act to Nuclear ships, issue of Nuclear passenger and Nuclear Cargo Ship Safety Certificate and powers to make rules in this respect.3.13.1 The review committee has suggested for inclusion of one more part – Part IX B to cover provisions for mobile offshore Drilling units – section 344 J to 344 Z. (Proposed).3.14 Part X - This part deals with the collision, accident at sea and liability which includes provision for division of loss in case of collision, damages for personal injury etc.3.15 Part X A - gives provision for limitation of liability of owners in case of certain damages.3.16 Part X B – gives provision for civil liability for oil pollution damage. It embodies provisions for limitation of liability of the owner, constitution of limitation fund, consolidation of claims & distribution of fund amongst claimants, provision for compulsory insurance or other financial guarantee and rule making powers.3.16.1 The review committee has suggested include part X C to give provision of International Oil Pollution fund Convention 1971 and its protocol.3.17 Part XI - This part gives provision for regular method of giving helm orders, duty of master to report danger to navigation, manner of communicating reports of danger to navigation, obligation to render assistance to persons and ships in danger, etc. This part is also under amendments in accordance with the recommendations given by the review committee to include foreign flag vessels under purview, giving information by Indian ships about position, course, speed to maritime administration and provision for Indian ships to be fitted with prescribed navigational aids and equipment.3.18 Part XI A – Prevention and containment of pollution of sea by Oil :This part contains provision for prevention of pollution and gives powers to Central Government for prohibition as to discharge of oil and oily mixtures, inspection and control of ships to which Oil Pollution Convention applies, maintenance or Oil record book, oil reception facilities at the ports in India and powers of the Government to take measures for preventing or containing oil pollution, direction to certain ships to render assistance and levy of oil pollution cess. Rules can also be framed by the Government under the provision of this part.3.18.1 This part does not contain provision for the action to be taken when oil is escaped. The review Committee has recommended to empower the Central Government to take appropriate action when oil is escaped.3.19 Part XII : This part provides the provision for investigation and inquiries in shipping casualties. It gives powers to the Court for holding formal investigations, to arrest witnesses or enter the ships, to commit trial, to censure masters, mates or engineer, or to remove master. A marine board can be appointed by counselor officer if the casualty occurs at foreign waters. Central Government can cancel or suspend certificate of Master, Mate or Engineer. Constitution of court of survey, reference in difficult cases to scientific persons and investigation into explosions or fire on board of ship are the other provisions of this part.3.19.1 The review committee has suggested to constitute a formal board of investigation headed by a judge instead of giving the matters to the court, as it is assumed that the court take too much of time in coming to a conclusion.3.20 Part XIII - This part gives provision for matters relating to wreck and salvage. India has ratified 1989 Salvage Convention and therefore review committee has suggested that provisions of this Convention may be inserted amending Section 390, 398, 402 (1) and 404.3.21 Part XIV - of the Act gives powers to the Central Govt. for control of Indian ships and ships engaged in coasting trade. Section 412 giving powers to fix shipping rates has already been abolished. Some relaxation have also been given under cabotage law.3.22 Part XV – contains the provisions for sailing vessels and part XVA for fishing boats, their registry, name, inspection, certification etc.3.23 Part XVI – gives the provisions for penalties for violation of the provisions of the Act and procedure thereof.3.24 Part XVII` contains miscellaneous provisions for appointing examiners, powers of ship surveyor, inquiry into case of death on board the ships etc.Till now, the cabotage policy in India allows first preference to Indian flagships over cargo and foreign ships. Cargo and foreign ships are allowed only when no suitable Indian flag vessel is available for this purpose. However the shipping ministry in 2015 relaxed the cabotage law for five years to allow special foreign flagged vessels such as roll-on, roll-off (Ro-Ro), pure car carriers, truck carriers and LNG vessels to facilitate transportation of cargo along the country's coastline.You can download the copy of Merchant Shipping Act 1958 (the Act) here. https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/32645/76823/F.../IND32645.pdf