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Procedure for Ship Breaking

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..... e Government of India shall formulate a Comprehensive Code incorporating the recommendations made by the Committee of Technical Experts (CTE) and until the code comes into play, the recommendations of the CTE shall be operative by virtue of this order and the Maritime Board, State Pollution Control Board, Officials of the Customs Department, National Institute of Occupational Health shall oversee the arrangement and implementation of the recommendations of CTE. The Collector of the concerned District shall be associated when the actual dismantling takes place. 3. Some of the important guidelines framed by the Hon ble Court in the above referred Writ Petition are: (i). The vessel owner or recycler should submit specified documents well in advance of the arrival of the vessel for recycling for a desk review by the Port Trust in consultation with State Pollution Control Board and Customs department. (ii) After the desk review, a decision will be taken regarding permission for anchorage of the vessel. In case, permission is refused by any of these three agencies, the vessel owner would be entitled to both review and appeal. (iii) Once a decision is taken to accord permissio .....

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..... the desk review for granting N.O.C. for anchorage to MbPT. Such exercise shall be completed within two working days. 6.3 : In case, where there is no objection for anchorage, the Superintendent shall forward NOC to the Docks Manager, MbPT for anchorage in the prescribed format. 6.4 : In case of refusal for anchorage, the Superintendent, Preventive (General) shall forward the report in the format as enclosed in Annexure 1 assigning specific reasons for such refusal to the importer. 6.5 : In case the importer feels aggrieved by such refusal, he may file review application within a period of five working days before the Assistant Commissioner/Deputy Commissioner, Preventive (General), who shall dispose of such application within three working days from the date of receipt of the application. The Assistant Commissioner/Deputy Commissioner, Preventive (General), may hear the importer or his representative personally, if they so desire. In case no review application is received within the prescribed time, the Superintendent, Preventive (General) will forward the report of refusal for anchorage in the prescribed format to the Docks Manager, MbPT. 6.6 : The Assistant Commissi .....

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..... ard the report of refusal for anchorage in the prescribed format to the Docks Manager, MbPT. 6.12 : In all such cases, where NOC has been granted for anchoring, the final decision shall be taken by the MbPT for granting of anchorage to the vessel. 7. Process of Beaching : 7.1 : The modalities of beaching permission are discussed in Para 3.2 of Supreme Court Order, referred at Para 3 above. 7.2 At the Anchorage the ship will be boarded by the Superintendent of Customs, Preventive (General) along with the Boarding Officer, under the jurisdictional control of Commissioner of Customs (General), who will physically verify the data provided and submissions made by the importer, which was submitted for desk review preferably along with representatives of other agencies, namely Maharashtra State Pollution Control Board/Explosives Department/Atomic Energy Research Board. The Superintendent, Preventive (General) shall be accompanied by the Boarding Officer who performs his duties as proper officer under Section 30 of the Customs Act,1962. 7.3: Boarding of the Vessel : 1. In the present case of import of vessels for breaking up, an additional copy of the IGM shall be collect .....

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..... specific reasons for such refusal to the importer. 7.7 : The appeal mechanism in case of anchorage goes, mutatis mutandis, in this case also. In case of Appellate Authority upholding the refusal of Beaching, no entry inwards shall be given by the Boarding Officer. 7.8 : In the case of Nuclear Powered Ships, Desk review has to be conducted by AERB and the officers from that organization has to board the vessel for physical inspection 8.Rummaging : All vessels imported for the purpose of breaking should be compulsorily rummaged under the supervision of the Superintendent (R I) 9: Filing of Bill of Entry 9.1 : Once the Entry Inwards is granted, the Importer may file the Bill of Entry. Examination of Vessel 9.2 : The Assessing Group will immediately give first check examination to the Bill of Entry. 9.3 : Later, the Importer/C.H.A. shall approach the Docks appraising Department for getting the vessels examined for first appraisement and for preparation of Local Invoice for the inventoried items, as per examination order. The Vessel shall be examined in the presence of the Assistant Commissioner/Deputy Commissioner, Docks. Thereafter, the Docks Offices shall .....

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..... d. The destruction should be carried out in the presence of the representative of the importer and two independent panchas, and a proper panchanama must be drawn. 10.2 : The destruction report in the prescribed format shall be signed by the Assistant Commissioner/Deputy Commissioner, Preventive (General) which shall be forwarded in a sealed cover to the Assessing Group. The Assessing Group will now finally assess the bill of entry and forward the bill of entry to the Docks with appropriate comments for granting final out of charge by the docks. 10.3 : The Out of charge will finally be granted by the appropriate officer at the Docks. 10.4 : The Cutting Permission in the prescribed format will be finally given by Assistant Commissioner/Deputy Commissioner, Preventive (General) after the out of charge of the vessel. 10.5 : The above instructions shall also apply to all goods falling under Chapter 89 of the Customs Tariff Act, 1975 and which were imported availing the benefit of Notification No 21/2002Cus, dtd 01.03.2002, with Sr. No 352, 353, and 354 having condition mentioned at Sr.No 72, as amended and later the importer decided to break them up. 11 : This Public Noti .....

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..... following grounds. 1. 2. 3. An appeal against this decision lies with ___________. The appeal may be filed within the time period as mentioned in the Public Notice. Yours Sincerely SUPERINTENDENT OF CUSTOMS (P) PSO (ADMIN). MUMBAI. ANNEXURE 3 List of documents to be submitted by the importer for assessment 1. IEC Code 2. Physical Delivery Certificate 3. Notice of Readiness(NOR) 4. Commercial Invoice certified by the Bank. 5. Memorandum of Agreement, if any, duly signed in original 6. Original Survey Report of independent surveyor. It covers ROB and others 7. Letter of Credit. 8. Bill/instruments of sale of proof of transfer of ownership of the purchased vessel. 9. Lloyds Register (for verification of ownership, Weight Registration). 10. Copy of Builders Certificate to establish LDT of the vessel. 11. Copy of International tonnage certificate 12. Port worthiness certificate from surveyor 13. Capacity plan and lead line chart for draft of the ship showing details for loading of cargo with stability and trim position effecting in Light Displacement Tonnage. 14. Registration Certificate of the ship and last .....

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..... on of the remaining wireless equipment within the next five working days. 3. produce the remaining documents enumerated at Annexure 3 of the Public Notice no. 19/2010 within the next ten working days 4. that in case of failure to satisfy the abovementioned conditions, the subject vessel will become liable for appropriate action under the provisions of the Customs Act, 1962 NOW THE CONDITION of the above written undertakings such that If the importer within the said period as mentioned in the abovementioned paragraph submits such documents and furnish such information as may be called for by the Proper Officer, and upon the satisfaction of the Proper Officer Then the above written undertaking shall be void and of no effect otherwise the same shall remain in full force and virtue. AND IT IS HEREBY AGREED AND DECLARED by the importer as follows :- 1. This bond is given under the orders of the Central Government for the performance of an act in which the public are interested. 2. The President through the in the manner laid down in sub-section (1) of Section 142 of the Customs Act, 1962 without prejudice to any other mode of recovery. The Schedule above ref .....

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