How to Get a Chartering License for Foreign-Flagged Vessels in India

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India’s maritime sector requires strict compliance, especially for foreign flagged vessels operating in Indian waters. Getting a chartering license for foreign flag vessels is a legal requirement for smooth maritime operations and compliance with safety, security and trade regulations. This comprehensive guide will walk you through everything you need to know to get a chartering license for foreign-flagged vessels in India under the Merchant Shipping Act, 1958.

What is a Chartering License for Foreign-Flaggeed Vessels in India

India’s maritime sector requires strict compliance, especially for foreign-flagged vessels operating in Indian waters. Getting a chartering license for foreign-flag vessels is a legal requirement for smooth maritime operations and compliance with safety, security and trade regulations. This comprehensive guide will walk you through everything you need to know to get a chartering license for foreign-flagged vessels in India under the Merchant Shipping Act, 1958.

What is a Chartering License for Foreign-Flagged Vessels in India

Chartering license for foreign-flag vessels in India is governed mainly under Sections 406 and 407 of the Merchant Shipping Act, 1958. These sections regulate the licensing of foreign ships chartered by Indian citizen entities, companies, cooperative societies and foreign entities carrying coastal trade within Indian territorial waters. To operate foreign vessels for import, export, offshore or coastal trade involving Indian or foreign ports, ship operators must get a valid chartering license for foreign-flagged vessels in India from the Directorate General of Shipping (DG Shipping).

The Directorate General of Shipping has digitalised the entire foreign vessel licensing process through its online portal, eSamudra, making applications and approvals online. This allows entities to apply, track and receive approvals online, reducing paperwork and speeding up the licensing process and also ensures that they adhere to the new MS Act 2025 for registration of vessels.

Who is Eligible for a Foreign-Flagged Vessel Chartering License in India

Before applying for a chartering license for foreign-flagged vessels in India, you need to check your eligibility:

Indian Entities: Indian citizens, companies or cooperative societies that charter foreign-flag vessels for import, export, coastal or offshore operations need to get a license under Section 406.

Foreign Entities: Foreign ship owners or charterers wanting to carry coastal trade in India need to get a license under Section 407.

Exemptions: Foreign vessels in India involved only in import or export operations do not require a coastal license. However, such vessels still need authorization when engaged in coastal trade.

The compliance standards also include crew requirements based on the duration of the charter. For example, licenses above 30 days require a specified percentage of the crew to be Indian nationals to ensure local employment and training opportunities.

Types of Chartering Licenses in India

The chartering licenses for foreign-flag vessels in India vary based on the vessel type and trade operation:

• Import/Export License (Single Voyage or Time Charter): Covers foreign ships chartered for specific voyages or durations related to import or export operations.
• Coastal Trade License: Required for any foreign vessel engaged in coastal trade within Indian waters.
• Worldwide Time Charter License: For foreign vessels to operate globally with Indian charterers.
• Offshore Operation License: For vessels used in offshore activities like oil rigs or special maritime services, issued on a monthly basis.
• Contract of Affreightment (COA) Permission: Special licensing for long-term contracts, valid up to 3 years with DG Shipping approval.

Each has different fees, validity and compliance criteria based on maritime safety and operational norms. So confirm before you submit application to get a chartering license for foreign-flagged vessels in India.

How to Apply for a Chartering License

DG Shipping has made the application process for a chartering license for foreign-flagged vessels in India easy with eSamudra. Here’s a step-by-step guide:

1. Registration: Register on eSamudra and verify your credentials.
2. Application Form: Fill out the application form available on the portal. Ensure all details such as vessel details, charter period, cargo type and trading routes are accurate.
3. Upload Documents: Upload NOCs, charter party agreements, statutory certificates and payment receipts.
4. Payment of Fees: Pay the applicable fees through Bharatkosh online payment gateway linked to eSamudra. Fees vary as per license type and duration.
5. Verification & Approval: DG Shipping will verify the application against maritime laws and safety norms. If required, amendments may be requested.
6. License Issuance: Upon approval, the license will be digitally issued and can be downloaded from the portal.
7. Compliance: Maintain compliance during the license period, including crew requirements and document updates.

Note: Amendments can be made up to two times in a license within limits; otherwise, a fresh application is required.

Benefits of a Chartering License for Foreign-Flagged Vessels in India

Having a chartering license for foreign-flagged vessels in India has many advantages for businesses and operators:

• Legal Compliance: Operating with a valid license ensures strict compliance with Indian maritime laws, with no penalties or operational delays.
• Market Access: Licenses allow access to Indian ports for commercial and industrial activities, and more trade opportunities.
• Safety and Security: Licensed vessels are required to meet strict occupational health and safety certification so that assets, crew and cargo are protected.
• Simplified Procedures: Digitized licensing process reduces administrative burden and turnaround time.
• Crew Opportunities: Licensing rules support employment and training of Indian seafarers through mandatory crew composition norms.
• Environmental Compliance: License requirements often include certifications related to environmental safety, pollution control and sustainable maritime operations.

All these benefits of having a chartering license for foreign-flagged vessels in India contribute to operational efficiency, international trade growth and maritime safety.

Documents Required

Applicants need to prepare and upload comprehensive documents, including but not limited to:

• Completed online application form
• Bharatkosh payment receipt
• No Objection Certificate (NOC) and tender documents (if applicable)
• Charter party agreement or fixture note
• Various statutory certificates, including:
  • Ship registry certificate
  • Classification society certificates
  • Safety management certificates
  • Pollution prevention certificates
  • IMO crew list
  • Crew age and training compliance certificates
• Document of compliance if shipping companies are involved in certain activities like coasting trade or operating in the Indian Exclusive Economic Zone (EEZ)
• Special vessel type documents (offshore craft, high-speed vessels)

Related Registration: Multimodal Transport Operator (MTO)

Companies engaged in international freight forwarding, logistics, or multimodal transport should also consider registering as a Multimodal Transport Operator (MTO) in addition to having a chartering license for foreign-flagged vessels in India. MTO registration is essential for businesses that coordinate shipments across multiple transportation modes, including sea, air, road, and rail. To learn more about the MTO registration process, eligibility, and benefits, visit this detailed guide on MTO registration. 

Conclusion

Getting a chartering license for foreign-flagged vessels in India is a must for lawful and smooth maritime operations. By knowing the eligibility criteria, license types, application process and documentation requirements, businesses can navigate the regulatory framework better and benefit from India’s growing maritime trade.

DG Shipping’s eSamudra portal has made the process of getting a Chartering License for Foreign Flag Vessels in India easy and transparent, allowing Indian and foreign entities to comply with statutory requirements seamlessly.

For detailed information, always refer to the official DG Shipping website and keep updated with circulars or amendments related to a chartering license for foreign-flagged vessels in India.

FAQ’s on Chartering License for Foreign-Flagged Vessels in India

Who needs to get a chartering license for foreign-flagged vessels in India?

Indian entities like citizens, companies or cooperative societies chartering foreign vessels for import, export, coastal or offshore operations need to get a Section 406 license. Foreign entities engaged in coastal trade in India also need to get a Section 407 license. Vessels involved only in import/export do not need a coastal license but need to comply with other regulations.

What are the types of chartering licenses under the Merchant Shipping Act, 1958?

The types are Import/Export single voyage or time charter licenses, Coastal trade licenses, Worldwide time charter licenses, Offshore operation licenses, and Contract of Affreightment (COA) permissions for long-term contracts. Each type has its own conditions and fees depending on use and duration.

How to apply for a foreign-flag vessel chartering license through the DG Shipping portal?

The process is to register on the eSamudra portal, fill out the application form with vessel and charter details, upload necessary documents like NOC and agreements, pay the fees online and submit the application for DG Shipping verification and approval. An approved chartering license for foreign vessels in India is issued digitally on the portal.

What documents are required to submit for a chartering license for foreign vessels?

Applicants need to submit the application form, Bharatkosh payment receipt, NOC or tender documents, charter party agreement and various statutory certificates related to vessel registration, classification, safety, pollution control, crew list and compliance with maritime norms. All documents should be duly submitted to get a chartering license for foreign-flagged vessels in India.