The Lok Sabha has passed the Carriage of Goods by Sea Bill, 2024, aimed at modernizing the regulatory framework governing the transportation of goods by sea. This Bill replaces the Indian Carriage of Goods by Sea Act, 1925, aligning Indian maritime law with international conventions to enhance trade efficiency and legal clarity.
Key Features of the Bill
Objective and Scope
The Carriage of Goods by Sea Bill, 2024 establishes the responsibilities, liabilities, rights, and immunities of carriers involved in transporting goods by sea from Indian ports to both domestic and international destinations.
- The Bill is in conformance with the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading, 1924 (Hague Rules) and its subsequent amendments.
- It retains all provisions of the 1925 Act, ensuring continuity while incorporating modern best practices in shipping and logistics.
Replacing the 1925 Act:
- The Indian Carriage of Goods by Sea Act, 1925, which governed sea transportation regulations, will be repealed.
- The new Bill modernizes regulations, making them more efficient and aligned with global standards.
Bills of Lading:
- The Bill governs rules applicable to bills of lading, a crucial document issued by freight carriers to shippers.
- A bill of lading includes details such as the type, quantity, condition, and destination of goods transported.
- It outlines the rights, responsibilities, liabilities, and immunities of carriers in case of cargo disputes.
Alignment with International Conventions:
- The Bill ensures that India’s maritime laws remain in sync with global conventions such as the Hague Rules and their amendments.
- This will help Indian shipping companies and exporters operate within a globally recognized legal framework.
Powers of the Central Government
The Bill empowers the Central Government to:
- Issue Directions: The government can issue directives to facilitate the implementation of the Bill.
- Amend Schedules: It can modify rules applicable to bills of lading to stay aligned with evolving international shipping standards.
- Ensure Legal Clarity: These powers allow the government to streamline trade operations, reduce legal uncertainties, and enhance maritime commerce efficiency.
Significance of the Bill
Boosts India’s Maritime Trade:
- Ensures clarity and efficiency in domestic and international shipping.
- Facilitates ease of doing business for shipping companies, exporters, and freight handlers.
Enhances Global Competitiveness:
- Aligning Indian laws with international shipping conventions reduces trade disputes and increases confidence among global trade partners.
- Strengthens India’s position as a maritime hub in international trade.
Legal Certainty and Dispute Resolution:
- Establishes clear rights and obligations for carriers, reducing litigation and trade disputes.
- Helps in faster resolution of cargo-related legal issues.
Encourages Investment in Shipping Infrastructure:
- A modernized legal framework incentivizes investment in India’s shipping sector and logistics infrastructure.
- Supports Make in India and Atmanirbhar Bharat initiatives by improving domestic trade capabilities.