India Foreign Flag Vessel Licensing Rules 2026: Coasting Trade and Chartered Vessels

The India foreign flag vessel licensing rules, the Coastal Shipping (Licencing of Foreign Flag Vessels) Rules, 2026, were notified on 14 October 2026 as G.S.R. 884(E) under the Coastal Shipping Act, 2025, after a draft published on 19 December 2025. They apply to every foreign flag vessel participating in coasting trade and to every foreign flag vessel chartered by the entities referred to in section 11(1) of that Act. Such a vessel must hold a licence, and the licensee or agent must produce it to the proper officer for port clearance.

These rules sit under the Coastal Shipping Act, not the Merchant Shipping Act 2025 that underlies the other rules in this series, but they apply to the same foreign vessels trading in Indian waters. This article summarises the India foreign flag vessel licensing rules from the Gazette text. The Coastal Shipping Act itself was not reviewed for this summary, so the definitions of coasting trade and of the section 11 entities should be read in the Act.

How a Licence Under the India Foreign Flag Vessel Licensing Rules Is Applied For

Under rule 4 an application goes to the Director-General and must state the class of licence, which is voyage charter, time charter or contract of affreightment, and the category: export, import, coastal, worldwide or offshore. The application must be made at least seventy-two hours before the laycan date, and a late application attracts the late fee in the Second Schedule. Fees are paid through the Bharatkosh portal (rule 5). The First Schedule sets out an online procedure through the e-Samudra portal, where the applicant registers as a charterer or as an entity deploying the vessel and states whether the chartering is through a global tender.

Rule 6 of the India foreign flag vessel licensing rules lists the supporting documents: a declaration that the applicant has not violated the Act or its rules; and tenders, enquiries and other documents required under the Guidelines on Right of First Refusal, evidence of compliance with the Guidelines for Contract of Affreightment, age and qualitative parameters, and documents confirming placement of Indian crew on board. After verification the Director-General grants the licence in the Third Schedule form, which may carry additional conditions.

Extensions, Port Clearance and Appeals

A licensee whose voyage is delayed may apply for an extension of the licence, without needing a No Objection Certificate (rule 7(1)); changes to the particulars of a licence are made through the e-Samudra portal on payment of the fee (rule 7(2)). Rule 8 requires the licensee or agent of every foreign flag vessel in coasting trade, or chartered for EXIM trade, to produce a valid licence for port clearance. Applications to compound an offence or penalty go to the compounding officer, who may accept or reject them, with a hearing before a rejection, and who sets the sum by reference to the fine and to the fees, commission and payments received for all voyages and incidental expenses (rule 9). An appeal procedure against penalties imposed by an adjudicating officer is in rules 10 and 11, with the Director-General as the appellate authority.

Where a foreign flag vessel is detained under the Act, rule 13 requires notice to the consular office of the flag State or the nearest consular office, and notice of any proceeding against a licensee or agent goes to the relevant consular office as well.

For the requirements that apply to foreign ships entering or operating in Indian coastal waters under the Merchant Shipping Act, see India Coastal Waters Entry Rules 2026. The full set of 2026 rules is mapped in India’s Merchant Shipping Rules 2026: A Map for Ship Managers.

Sources

The summary above is taken from the English text of the Gazette notification. The application procedure, the forms and the fee schedule are in the schedules to the Rules.

• Coastal Shipping (Licencing of Foreign Flag Vessels) Rules, 2026, G.S.R. 884(E), 14 October 2026 (English text follows the Hindi)

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