India revises fee structure for DG Communication Centre

Eda Zenic -

The Directorate General of Shipping, India issued shipping circular No. 22 of 2024 revising the registration and annual fees for services provided by the DG Communication Centre, effective from August 1, 2024.

Background and Reason for Revision: The previous fee structure was established in 2010 and did not account for the subsequent growth in maritime traffic and the number of Indian seafarers. Over the past decade, the DG Communication Centre has played a critical role in managing security and casualty incidents, particularly in high-risk regions like the Red Sea and Gulf of Aden. However, the fees collected have not kept pace with the rising expenses associated with manning, upkeep, and maintenance of the Centre, driven by factors like the increasing Consumer Price Index (CPI).

Revised Fee Structure: The revised fees are categorized based on the type of port or facility, with specific amounts outlined for major ports, non-major ports of varying quay lengths, shipyards, and ships (both coastal and worldwide). For instance:

  • Major ports and non-major ports with quay lengths over 1000 meters now have a one-time registration fee of ₹2,00,000 and an annual fee of ₹1,50,000.
  • Smaller non-major ports and shipyards have lower fees, reflecting their scale and resources.
  • Ships operating worldwide will pay a one-time fee of ₹24,000 and an annual fee of ₹20,000, while coastal ships have even lower fees.

Payment Details and Compliance: Payments should be made to the Indian Register of Shipping (IRS) via cheque or electronic transfer. The circular emphasizes that these fees are not revenue for the IRS or DGS but are part of a cost-sharing arrangement among stakeholders for the operation of the DG Communication Centre. Therefore, taxes like TDS and GST may not apply, as the services are not considered commercial.

Enforcement and Penalties: Port authorities, shipyards, and ship owners must ensure that all applicable fees are paid by the stipulated date. Failure to do so will result in penalties imposed by the Directorate. The fees will be verified during ISPS audits and the annual testing of Ship Security Alert Systems (SSAS) by relevant authorities.