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Recycling of Ships Act 2019

Recycling of Ships Act 2019

Recycling of Ships Act 2019

The Government of India (GoI) passed the Recycling of Ships Act to streamline the recycling process for ships in India. The Act has been passed to ensure no hazardous elements are present during the recycling process. This provides a safer and effective process of recycling without causing any harm to the environment. The Act will be monitored by the Ministry of Shipping. The Recycling of Ships Act applies to the following:

  • Ships registered in India
  • New ships to be registered in India
  • Apart from the above mentioned above, ships that enter port, shipyard, off-shore terminal in India, within Exclusive Economic Zone (EEZ) or territorial waters
  • War, Navy ships or other ships belonging to private organisations or Government non-commercial services and
  • Ship recycling facilities in India

Categories of Survey for Certification Process

To verify the recycling process of ship’s recycling, GoI appointed National Authority and other organisations to conduct surveys. The types of surveys are:

Initial Survey

Takes place before the issuing of the inventory of hazardous material certificate for a new ship

Renewal Survey

Takes place every five years for the existing ships to renew their certificate of authorisation to check on all the necessities or changes implemented on the ship.

Additional Survey

Takes place when the shipowner asks the authorities to conduct the survey when some changes are made in the ship.

Final Survey

The final survey is performed during the process of recycling.

After the completion of all the surveys, the authorised authority shall issue a  detailing the performance of the ship. If the ship fails to qualify due to hazardous elements, the authorised person shall be liable to pay Rs.5 lakhs as a penalty, face imprisonment for three months or both.

Ship Recycling Facility

  • For certificate authorisation for the ship recycling facility, ship recyclers shall prepare a management plan and provide it to the authority
  • As per the Act, all the ship recycling facility should apply for authorisation. The application must be applied within sixty days from the commencement of the Act.
  • If the certificate of ship recycling facility expires within six months (from the date of commencement of this act), the company should apply for authorisation certificate. Unless the application is applied for such companies, they shall not function its process.
  • The certificate of authorisation shall be issued after the authorised committee conducts enquiry related to the survey as per the rules and regulations. The certification might not be granted if there is no relevant information.

Validity and Renewal of Certificate

  • The validity for the Certificate of Authorisation is for five years.
  • For renewal, the company shall undergo the same process after paying the renewal fee.
  • Companies breaching the above-mentioned rules shall be imprisoned for a year or liable to pay Rs.1 lakh, or both.
  • For certification and documentation process, click here

Process of Recycling

  • The company or the individual shall apply for the ‘Ready for Recycling Certificate’ from the National Authority. This certificate shall be valid only for three months. The certificate will be treated as invalid upon nil/improper information.
  • The company or the individual shall furnish the ship recycling plan, which states the guidelines provided by the Authority.
  • The applicant shall be publishable with a fine of Rs.10 lakhs, imprisonment up to a year or both on breaching the process.

Recycling Outside India

  • Any registered ship in India intends to recycle outside the country shall recycle at the authorised ship recycling facility approved by the Authority.
  • Any individual that does not comply with the regulations shall pay a fine of Rs.10 lakhs, prison for a year or both.

Recycling Within India

  • The recycler should provide a notice to the Maritime Rescue Co-ordination Centre before recycling the ship.
  • The recycler shall proceed after the Competent Authority clears all the dues and cargo residues.
  • The owner of the vessel shall fulfil the safe-for-entry, safe-for-hot work or both as per the regulations
  • The permission for recycling shall be provided after checking the physical conditions of the ship by the Competent Authority.
  • The permission for recycling shall be considered granted if the authority fails to respond within 15 days.
  • Every Ship recycler shall make sure that recycling does not cause any damage to the environment.
  • The recycler shall provide a receipt to the proprietor stating the acceptance to recycle the ship.
  • In case of any oil spill in the facility, the recycler will be served the first notice. The recycler should take necessary actions within twelve hours. If delayed, the recycler will be punishable with a fine of Rs.5 lakhs and served with a second notice.
  • If measures are not taken within twenty-four hours after the second notice, the recycler will be punishable with a fine of Rs.10 lakhs and served with third notice.
  • If measures are not taken beyond twenty-four hours after the third notice, then, the recycler will be punished with an imprisonment of three months along with a fine of ten lakhs.

Powers and Functions of the Authority

  • The National Authority and the Competent Authority shall execute the Code of Criminal Procedure 1973 to act on any criminal or offences used.
  • The National Authority or the Competent Authority shall check any ships within Indian waters to verify the certificate.
  • It can remove any ship from the port if there is no valid certification or if the ship carries any hazardous elements. The ship will remain in detention till certification.
  • The individual or company will be held guilty unless proven innocent.
  • If a ship has been detained without proper reasons, the National Authority shall compensate for the damage caused.

For registering a Partnership or Private Limited Company, click here.

Post by Peter

Peter is a Senior Content Writer and Copy Editor in Finance specializing in GST and Import & Export. He has also written articles on Medical, Philosophy, and Literature and published research papers in international journals.

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