PROHIBITION AND LICENCE FOR COASTING TRADECentral
Section 3 of The Coastal Shipping Act, 2025
- (1)No vessel, other than an Indian vessel, shall engage in coasting trade in the coastal waters, except under a licence granted by the Director-General under section 4: Provided that the Director-General may, by order in writing, permit a vessel registered under the Inland Vessels Act, 2021 (24 of 2021), to engage in coasting trade to such extent and subject to such conditions, as may be specified in that order.
- (2)Whoever engages any person to undertake coasting trade shall ensure that such person does not violate the provisions of sub-section (1).
Summary
- Only Indian ships are allowed to do coasting trade in Indian waters by default.
- Any other ship must get a licence from the Director-General under Section 4 to do this work.
- Ships registered under the Inland Vessels Act of 2021 can be allowed to do coasting trade if the Director-General gives them written permission.
- This permission for inland ships might come with specific conditions they have to follow.
- If you hire someone to do coasting trade, you are responsible for making sure they follow these rules.
Practical examples
1A shipping agent in Kochi hires a vessel from Sri Lanka to move cargo to Mangalore. The agent must check that the ship has obtained a licence under Section 4, or the agent is violating Section 3.
2A small river barge registered under the Inland Vessels Act wants to move goods along the coast. The owner, Mr. Gupta, must get a special written order from the Director-General before starting.
FAQ
1. I am using a river boat registered under the 2021 Act. Can I enter the sea for trade?
You need written permission from the Director-General, who may set certain limits or rules for your trip.
Test yourself
Q1.Under Section 3 of The Coastal Shipping Act, 2025, which vessels are prohibited from engaging in coasting trade without a licence?
Q2.According to Section 3 of The Coastal Shipping Act, 2025, how can a vessel registered under the Inland Vessels Act, 2021, engage in coasting trade?
Q3.Under Section 3 of The Coastal Shipping Act, 2025, what is the responsibility of a person who hires someone else to perform coasting trade?
Q4.How does Section 4 interact with the prohibition in Section 3 of The Coastal Shipping Act, 2025?