RESTRICTED
WORLD TRADE S/NGMTS/W/29
8July1996
ORGANIZATION
(95-2618)
Original: English Negotiating Group onMaritime Transport Services
COMMUNICATION FROM INDIA
Conditional Offer onMaritime Transport Services
Thefollowing communication isbeing circulated attherequest ofIndia toMembers ofthe
Negotiating Group onMaritime Transport Services.
_________________
India hasthehonour tosubmit herewith it'sdraftconditional offer onMaritime Transport
Services.
India reserves therighttomodify, reduce orwithdraw thisoffer, inwhole orinpart,atany
time, prior totheconclusion ofthenegotiations onMaritime Transport Services.
Indiaalsohereby submits theListofMFN Exemptions relating toMaritime Transport Services.
Indiafurther reserves therighttomake technical changes totheofferandtocorrect anyerrors,
omissions andinaccuracies.INDIA -CONDITIONAL OFFER ONMARITIME TRANSPORT SERVICES
Thecommitments inMaritime Transport aremade inaccordance withtheGeneral Agreement onTrade inServices. Allcommitments aresubject
todomestic laws, entry requirements, rulesandregulations andtheterms andconditions oftheDirectorate General ofShipping, Reserve Bank ofIndia and
anyother competent authority inIndia.
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
MARITIME TRANSPORT
SERVICES.
International Transport
(Freight andpassengers
excluding cabotage and
offshore transport asdefined
inAnnex 'A')(1)(a) Liner shipping :
-atleast 40% ofcargo carried byliner
shipping companies must bereserved
forIndian Flag ships
-preference willbegiven toIndian Flag
vessels forgovernment cargoes,
exports from India onCIF/C&F and
imports intoIndia onFOB/FAS basis.
Indian Flag vessels willhave thefirst
right ofrefusal forcarrying such
cargo andonlythereafter canforeign
flagships beallowed tobe
unchartered/taken oninternational
rental basis. Shipping arrangements
forGovernment owned andcontrolled
cargo willbemade byTranschart
Division ofMinistry ofSurface
Transport.(1)(a) Inliner trades (Not restricted toliner
conference trades) between India and
such countries which arecontracting
partners totheUNConvention ona
code ofconduct forliner conferences,
Indian shipping lines (notnecessarily
national shipping lines) have a
preferential right overcargo.
-Select liner routes have been reserved
for3national lines.Access toanduseofPort
facilities
Nomeasures shall be
applied tothefollowing
services which deny
reasonable andnon-
discriminatory access to
international maritime
transport suppliers
1.Pilotage
2.Towing, tugassistance
andpushing.
3.Provisioning, fuelling
andwatering
4.Garbage collecting
andballast waste
disposal
5.Portcaptain services
6.Navigation aids
7.Shore-based
operational services
essential toship
operations, including
S/NGMTS/W/29
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Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
-foreign shipping companies are
obliged toappoint Indian companies as
general agents orhave joint venture
shipping companies withIndian
companies tosupply maritime agency
services. Non-shipping companies can
dosoonlybyopening aregional
office inIndia.communications, water
andelectrical supplies.
8.Emergency repair
facilities.
9.Anchorage, berth and
berthing services.
(1)(b) Bulk andother international shipping
-thetransportation ofcrude oil,andof
basic oilbyproducts istobecarried
outbyIndian Flag vessels
-preference willbegiven toIndian Flag
vessels forgovernment cargoes,
exports onCIF/C&F andimports on
FOB/FAS basis. Indian flagvessels
have thefirstright ofrefusal for
carrying such cargo andonly
thereafter canforeign flagships be
allowed tobeunchartered/taken on
inter-national rental basis. Shipping
arrangements forGovt. owned and
controlled cargo willbemade by
Transchart Division ofMinistry of
Surface Transport.(b) None, except thatpreference willbegiven
topublic sector undertakings forshipment
ofcrude oil,petroleum products andby-
products.INDIA (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
-foreign shipping companies are
obliged toappoint Indian companies as
general agents orhave joint venture
shipping companies withIndian
companies tosupply maritime agency
services. Non-shipping companies can
dosoonlybyopening aregional
office inIndia.
(1)(c) Passenger: None (1)(c) None
(2) None (2) None
(3)(a) Foroperating ashiporafleet under
theIndian flag, itisnecessary to
establish aregistered company, ora
cooperative society under anyCentral
ActorState Acthaving itsprincipal
place ofbusiness inIndia. Thisisin
accordance withtheprovisions ofthe
Indian Merchant Shipping Act(MSA),
1958. AnIndian registered vessel can
plyonlyifithasalicence issued
under theMSA.(3)(a) None, except forregistration ofship
andissue oflicence under the
Merchant Shipping Act.
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Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
(3)(b) Other forms ofcommercial presence
forthesupply ofInternational
Maritime Transport Services (asper
definitions): Unbound.(3)(b) None
(4)(a) Ships crews: Unbound
(4)(b) Keyshore personnel: Unbound(4)(a) Unbound
(4)(b) Unbound
MARITIME AUXILIARY
SERVICES
Maritime Cargo Handling
Services(1) Unbound
(2) None
(3) Unbound
(4) Unbound(1) Unbound
(2) None
(3) Unbound
(4) UnboundINDIA (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Storage andWarehousing
Services inPorts(1) Unbound
(2) None
(3) Unbound
(4) Unbound(1) Unbound
(2) None
(3) Unbound
(4) Unbound
Customs Clearance Services (1) Unbound
(2) None
(3) Unbound
(4) Unbound(1) Unbound
(2) None
(3) Unbound
(4) Unbound
Container Station andDepot
Services(1) Unbound
(2) None
(3) Unbound
(4) Unbound(1) Unbound
(2) None
(3) Unbound
(4) Unbound
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Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Maritime Agency Services (1) Unbound
(2) None
(3) Unbound
(4) Unbound(1) Unbound
(2) None
(3) Unbound
(4) Unbound
Maritime Freight Forwarding
Services(1) Unbound
(2) None
(3) Unbound
(4) Unbound(1) Unbound
(2) None
(3) Unbound
(4) Unbound
International rental/charter of
vessels withcrew oron
bareboat basis (excluding
cabotage andoffshore
transport)(1) Unbound
(2) None, except obtaining permission from
Director General (Shipping) forchartering
aforeign flagvessel intheabsence of
availability ofasuitable Indian vessel.
(3) Unbound
(4) Unbound(1) Unbound
(2) None, except vessels rented byIndian
nationals areconsidered asforeign vessels
(3) Unbound
(4) UnboundINDIA (continued)
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orsub-sector Limitations onmarket access Limitations onnational treatment Additional commitments
Maintenance andrepairs of
seagoing vessels(1) Unbound
(2) None
(3) Unbound
(4) Unbound(1) Unbound
(2) None
(3) Unbound
(4) Unbound
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INDIA -LIST OFARTICLE II(MFN) EXEMPTIONS ONMARITIME TRANSPORT SERVICES
Sector orsubsector Description ofmeasure
indicating itsinconsistency
with Article IICountries towhich the
measure appliesIntended duration Conditions creating theneed
fortheexemption
SHIPPING
(a) Cargo sharing
between
bilateral
partnersEquality infreight liftings
originating intheports of
partners totheagreement and
equality infreight earnings.Bulgaria, United Arab Republic,
Poland, Russian Federation and
anyother countries withwhich a
bilateral shipping agreement is
entered intoinfuture.Indefinite Inthecontext ofoverall trade
relations.
(b) Cargo
ReservationsCargo reservation under theUN
Code ofConduct forLiner
Conferences. Sharing ofcargo
between theshipping lines of
contracting states andthird-
country lines intheratio of
40:40:20 asprovided inthe
Liner Code.Allcountries which are
contracting parties totheUN
Convention.Indefinite Tofulfil obligations under the
convention
(c) Avoidance of
double taxationOnincome andcapital ofanon-
resident person earned inIndia
from theoperation ofaship
engaged inInternational
Maritime Transport onthebasis
ofreciprocity withthecountry
inwhich theperson resides.Allcountries withwhich Double
Taxation Avoidance Agreements
aresignedIndefinite Maintenance ofreciprocity as
thebasis oftaxexemptionINDIA (continued)
ANNEX ATOTHE SCHEDULE
DEFINITIONS:
1. "International Transport (Freight andPassengers) ",forthepurpose ofthisschedule, istomean transportation ofinternational Maritime Freight andPassengers
byseagoing vessels from theportofloading inonecountry totheportofdischarge inanother country.
2. Cabotage:ThisScheduledoestoincludeanycommitmentson"Cabotage"or"MaritimeCabotageTransportServices"whicharedescribedastransportationofpassengers
orgoods between anyportlocated inIndia andanyother portalsolocated inIndia andtraffic originating andterminating inthesame portlocated inthecountry and
further includes transportation ofpassengers orgoods between aportlocated inIndia andinstallation andstructures situated onthecontinental shelf ofIndia.
3. Offshore Transport :forthepurposes oftheschedule only, "Offshore Transport" refers toshipping services involving thetransportation ofpassengers orgoods between
aportlocated inIndia andanylocation, installation orstructure associated withorincidental totheexploration orexploitation ofnatural resources ofthecontinental
shelf ofIndia, theseabed oftheIndian coastal seasandthesubsoil oftheseabed, orsituated onthecontinental shelf ofIndia.
4. "Other forms ofCommercial Presence forthesupply ofInternational Transport Services "means ability forInternational Maritime Transport Service suppliers
toundertake local activities which arenecessary forthesupply totheircustomers ofapartially orfully integrated transport service, within which maritime transport
constitutes asubstantial element.
These activities include, butarenotlimited to:
a.marketing andsalesofmaritime transport andrelated services through direct contact withcustomers, fromquotation toinvoicing, these services being those operated
oroffered bytheservice supplier itself orbyservice suppliers withwhich theservice seller hasestablished standing business arrangements;
b.acquisition ontheirownabout oronbehalf oftheircustomers (andtheresale totheircustomers) foranytransport andrelated services, including anchorage, berth
andberth services, andonward transport services byanymode, particularly roadandrail,inland waterways, necessary forthesupply oftheintegrated services;
c.thepreparation oftransport documents, customs documents, orother documents related totheorigin andcharacter ofgoods transported;
d.theprovision ofbusiness information, including computerised information systems andelectronic datainterchange;
e.thesetting upofbusiness arrangements withanylocally established shipping agency andtheappointment ofpersonnel recruited locally (or,inthecaseofforeign
personnel, subject tohorizontal commitments onmovement ofpersonnel);
f.organizing anyaspect ofthecallofthevessel ortaking control over cargoes;
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g.theprovision ofShips Managers 'Services.
NOTE :{Inorder toenforce certain standards andconditions which needtobefulfilled byshipping service suppliers, particularly those providing shippersonnel andcrew
andalsothose engaged inproviding ships management services, andtoensure thattheowner, operator, agent ormanager has:
-thecapability ofimplementing international standards aswellasIMO stipulations andrecommendations;
-thenecessary financial structure sothatheisresponsible andaccountable;
-thecapability ofimplementing, thesafety; andmarine pollution controls;
-fulfilled requirements ofquality management andhisoperations aretransparent;
asystem ofregistration/licensing ofshipping service supplier isunder consideration inIndia}
5. "Ship Managers "means persons entering India astheagents orrepresentatives ofaship'sowner oroperator forthepurposes ofassessing requirements, negotiating
andauthorising expenditures necessary tothemaintenance andoperations ofavessel aswellastheHandling ofCargo.
6. "Maritime Cargo Handling Services "means activities exercised bystevedore companies, including terminal operators, butnotincluding thedirect activities ofdock
workers,whenthisworkforceisorganisedindependentlyofthestevedoringorterminaloperatorcompanies.Theactivitiescovered,includetheorganisationandsupervision
of:
-theloading/discharging ofcargo to/from aship;
-thelashing/unlashing ofcargo;
-thereception/delivery andsafekeeping ofcargoes before shipment orafter discharge.
Theorganisation andsupervision includes thearrangements for(1)engaging skilled workers (dockworkers), (2)using allnecessary equipment foronboard orshore
useandappropriate storage space, whether byownership, rental orotherwise, (3)thechecking ofparcels andmarkings, theweighing andmeasuring ofcargo, and(4)the
administrative duties andresponsibilities related totheservices.
7. "Maritime Freight Forwarding Services "means theactivity oforganizing andmonitoring shipments onbehalf ofshippers through providing suchservices asthe
arrangement ofactual transport andrelated services, consolidation, aggregation, packing ofcargo, preparation ofdocumentation andprovision ofbusiness information.
8. "Maritime Agency Services "means activities inrepresenting, within agiven geographic area, thebusiness interests ofoneormore shipping linesorshipping companies
forthefollowing purposes:
-marketing andsales ofmaritime transport andrelated activities from quotation toinvoicing (cargo booking andcanvassing)
-issuance ofbillsoflading onbehalf ofthecompanies;INDIA (continued)
-acquisitionandresaleofothernecessaryrelatedservices(settlementofdisbursementsandclaims)preparationofdocumentation,andprovisionofbusinessinformation;
-acting onbehalf ofthecompanies inorganizing thecalloftheshiportaking control ofcargoes;
-tomake arrangements inorder togetallnecessary portservices required bytheforeign vessel during itsstayinIndian ports;
-toappoint astevedoring company forcargo loading andunloading onbehalf ofitsprincipal;
-tocollect freight onbehalf oftheprincipal.
9. "Customs Clearance Services "(alternatively Customs House Agents/Brokers) means activities consisting ofcarrying outonbehalf ofanother party customs formalities
concerning import export orthrough transport ofcargoes irrespective ofwhether thisisthemain orsecondary activity oftheservice provider.
10. "Government Cargo "means cargo originating from other countries (import cargoes including crude oil),petroleum byproducts, coal, natural gas,rawmaterials for
fertilizers, food-grains, etc)purchased byIndian Government Agencies/Departments orbased onloan/credit agreements withother countries, aswellasexports by
Indian Government Agencies/Departments including Government aid.
11. "Container Station andDepot Services "means activities consisting ofstoring containers, whether inportareas orinland, withaview totheir stuffing/stripping,
repairs andmaking them available forshipments.
12. "Maintenance andRepairs ofVessels "means services suchasrepairs andmanagement ofvessels, mending, fixing oroverhauling ofavessel, management ofcrew
andmarine insurance, provided onbehalf ofamaritime passenger orcargo transport business, orvessel leasing business.
13. "International rental ofvessels with crew oronbare-boat charter basis"means rental and/or leasing services ofalltypes ofsea-going vessels withcrew oron
bare-boat basis (whereafter theshipwillbemanned byIndian nationals onlyduring theperiod ofrental/lease) forthepurposes ofinternational trade (like tankers,
drybulkcargo vessels, cargo andfreight vessels, etc).
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