Chapter VII IMPOSITION AND RECOVERY OF RATES AT PORTS

Scales of rates for services performed by the Board or other person.—(1) The Board shall, from time to time, frame by regulations a scale of rates at which and a statement of the conditions under which, any of the services specified hereunder shall be performed by itself or any person authorized under section 28 at or in relation to port or port approaches,—

1. (a) transshipping of passengers or goods between vessels in the port or port approaches;
2. (b) stevedoring, landing and shipping of passengers or goods from or to such vessels, to or from any wharf, quay, jetty, pier, dock, berth, mooring, stage or erection, land or building in the possession or occupation of the Board or at any place within the limits of the port or port approaches;
3. (c) cranage or porterage of goods on any such place;
4. (d) wharfage, storage or demurrage of goods on any place;
5. (e) hydrographic survey in harbours, port areas, coastal areas, inland water ways and other water bodies; and
6. (f) any other service in respect of vessels, passengers or goods excepting the services in respect of vessels for which fees are chargeable under the Indian Ports Act, 1908 (Central Act 15 of 1908).

1. (2) Different scales of rates and conditions may be framed for different classes of goods and vessels and for different ports.

Scales of rates and statement of conditions for use of property belonging to the Board.—(1) Subject to sub-section (2) of section 141 of the Customs Act, 1962 (Central Act 52 of 1962), where the officer authorised under that Act, the Board shall, from time to time, also frame a scale of rates on payment of which and a statement of conditions under which any property belonging to, or in the possession or occupation of the Board, or any place within the limits of the port or port approaches may be used for the purposes specified hereunder,—

1. (a) approaching or lying at or alongside any buoy, mooring, wharf, quay, pier, dock or anchorage, land, building or place as aforesaid by vessels;
2. (b) entering upon or plying for hire or any wharf, quay, pier, dock, land, building, road, bridge, approach or place as aforesaid by animals or vehicles carrying passengers or goods;
3. (c) leasing of land or sheds by owners of goods imported for export or by steamer agents;
4. (d) any other use of any land, building, works, vessels or appliance belonging to or provided by the Board.

1. (2) Different scales of rates and conditions may be framed for different classes of goods and vessels and for different ports.

Consolidated rates of combination of services.—The Board may, from time to time, frame a consolidated scale of rates for any combination of the services specified in section 31 or for any combination of such service or services with any use or permission to use or permission to use any property belonging to, or in the possession or occupation of the Board, as specified in section 32.

Power to levy concessional rates in certain cases.—In framing scales of rates under any of the foregoing provisions of this Chapter, the Board may prescribe a lower rate in respect of,—

1. (a) coastal goods, that is to say, goods other than imported goods as defined in the Customs Act, 1962 (Central Act 52 of 1962) carried in a vessel from one Indian port to another Indian port: Provided that the Board shall not make any discrimination between one Indian port and another such port in prescribing a lower rate under this section.
2. (b) other goods in special cases.

Prior sanction of Government to rates and conditions.—Every scale of rates and every statement of conditions framed by the Board under the foregoing provisions of this chapter shall be submitted to the Government for sanction and shall have effect when so sanctioned and published by the Board in the Official Gazette.

Power of Government to require modification or cancellation of rates.—(1) Whenever the Government considers it necessary in the public interest so to do, it may, by order in writing, direct the Board to cancel any of the scales in force or modify the same within such period as it may specify.

1. (2) If the Board fails or neglects to comply with such direction within the specified period, the Government may cancel any of such scales or make such modifications therein as it may think fit: Provided that before so cancelling or modifying any scale, the Government shall consider any objection or suggestion which may be made by the Board during the specified period.
2. (3) When, in pursuance of this section, any of the scales has been cancelled or modified, such cancellation or modification shall be notified by the Government and shall thereupon have effect accordingly.

Remission of rates of charges.—The Board may, in special cases, and for reasons to be recorded in writing, exempt either wholly or partly any goods, vehicles or vessels or class of goods, vehicles or vessels from the payment of any rate or of charge leviable in respect thereof according to any scale of rates in force under this Act or remit the whole or any portion of such rate or charge so levied.

Refund of excess charges.—No person shall be entitled to a refund of an excess charge made by the Board unless his claim to the refund has been preferred in writing by him or on his behalf to the Board within six months from the date of payment duly supported by all original relevant documents:

Notice of payment charges short levied or erroneously refunded Notice of payment charges short levied or erroneously refunded.—(1) When the Board is satisfied that any charge leviable under this Chapter has been short levied or erroneously refunded, it may issue a notice to the person who is liable to pay such charge or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice: Provided that no such notice shall be issued after the expiry of three years,—

1. (a) when the charge is short levied, from the date of the payment of the charge;
2. (b) where a charge has been erroneously refunded, from the date of the refund.

1. (2) The Board may, after considering the representation, if any, made by the person to whom notice has been issued under sub-section (1), determine the amount due from such person and thereupon such person shall pay the amount so determined.

Time for payment of rates on goods.—The rates in respect of goods to be landed shall be payable immediately on the landing of the goods and rates in respect of goods to be removed from the premises of the Board or to be shipped for export or to be transshipped shall be payable before the goods are removed, shipped or transshipped.

Board's lien for rates.—(1) For the amount of all rates leviable by the Board under this Act, in respect of any goods and for the rent due to the Board for any building, plinths, stacking areas or other premises on or in which any goods may have been placed, the Board shall have a lien on such goods and may seize and detain the same until such rates and rent are fully paid.

1. (2) Such lien shall have priority over all other liens and claims, except for general average and for the ship owner's lien upon the said goods for freight and other charges where such lien exists and for money payable to the Central Government under any law for the time being in force, relating to customs other than by way of penalty or fine and to the Government under any law for the time being in force.

Ship owner's lien for freight and other charges.—(1) If the master or owner of any vessel or his agent at or before the time of landing from such vessels any goods at any dock, wharf, quay, stage, jetty, berth, mooring or pier belonging to, or in occupation of, the Board, gives to the Board a notice in writing that such goods are to remain subject to a lien for freight or other charges payable to the ship owner, to an amount to be mentioned in such notice, such goods shall continue to be liable to such lien to such amount.

1. (2) The goods shall be retained in the custody of the Board at the risk and expense of the owners of the goods until such lien is discharged as hereinafter mentioned and godown and storage rent shall be payable by the party entitled to such goods for the time during which they may be so retained.
2. (3) Upon production before any officer appointed by the Board in that behalf of a document purporting to be a receipt for, or release from, the amount of such lien, executed by the person by whom or on whose behalf such notice has been given, the Board may permit such goods to be removed after taking reasonable care with respect to the authenticity of such document.
3. (4) The provisions of this section shall not be applicable to fishermen operating traditional vessels and mechanised vessels in the fishing harbours and fish landing centres.

Sale of goods.—(1) The Board may, after the expiry of two months from the time when any goods have passed into its custody, or in the case of animals and perishable or hazardous goods after the expiry of such shorter period not being less than twenty four hours after the landing of the animals or the goods as the Board may think fit, sell by public auction or in such cases as the Board considers it necessary so to do, for reasons to be recorded in writing sell by tender, private agreement or in any other manner such goods or so much thereof as in the opinion of the Board may be necessary,—

1. (a) if any rates payable to the Board in respect of such goods have not been paid; or
2. (b) if any rent payable to the Board in respect of any place on or in which such goods have been stored has not been paid; or
3. (c) if any lien of any ship owner for freight or other charges of which notice has been given has not been discharged and if the person claiming such lien for freight or other charges has made to the Board an application for such sale.

1. (2) Before making such sale, the Board shall give ten days notice of the same by publication thereof in the Official Gazette and also in at least one of the newspapers having wide circulation in the locality: Provided that in the case of animals and perishable or hazardous goods, the Board may give such shorter notice and in such manner as provided in the regulations.
2. (3) If the address of the owner of the goods has been stated in the manifest of the goods or in any of the documents which have come in the possession of the Board or is otherwise known, notice shall also be given to him by letter delivered at such address or sent by post or by e-mail but the title of a bona fide purchaser of such goods shall not be invalidated by reason of the omission to send such notice nor shall any such purchaser be bound to inquire whether notice has been sent.
3. (4) Notwithstanding anything contained in this section, controlled goods may be sold at such time and in such manner as the Government may direct. Explanation.—In this section and in section 49 “controlled goods” means goods, the price or disposal of which is regulated under any law for the time being in force.

Disposal of goods not removed from premises of Board within the time limit.—(1) Subject to section 48 and sub-section (2) of section 141 of the Customs Act, 1962 (Central Act 52 of 1962), and subject to the procedure in case of goods not cleared, warehoused or transshipped within thirty days after unloading as provided in section 48 of the said Act, where any goods placed in the custody of the Board upon the landing thereof are not removed by the owner or other person entitled thereto from the premises of the Board within thirty days from the date on which such goods were placed on their custody, the Board may, if the address of the owner or such person is known, cause a notice to be served upon him by letter delivered at such address or sent by post or by e-mail or if the notice cannot be so served upon him or his address is not known, cause a notice to be published in the Official Gazette and also in at least one of the local newspapers having wide circulation in the locality requiring him to remove the goods forthwith and stating that in default of compliance therewith, the goods are liable to be sold by public auction or by tender, agreement or in any other manner: Provided that where all the rates and charges payable under this Act in respect of any such goods have been paid, no notice of removal shall be so served or published under this sub-section unless two months have expired from the date on which the goods were placed in the custody of the Board.

1. (2) The notice referred to in sub-section (1) may also be served on the agents of the vessel by which such goods were landed.
2. (3) If such owner or person does not comply with the requisition in the notice served upon him or published under sub-section (1), the Board may, at any time after the expiration of two months from the date on which such goods were placed in its custody, sell the goods by public auction or, in such cases as the Board considers it necessary so to do, for reasons to be recorded in writing, sell by tender, agreement or in any other manner such goods or so much thereof as in the opinion of the Board may be necessary after giving notice of the sale in the manner specified in sub-sections (2) and (3) of section 48.
3. (4) Notwithstanding anything contained in sub-section (1) or sub-section (3),—
   • (a) the Board may in the case of animals and perishable or hazardous goods give notice of removal of such goods although, the period of one month or as the case may be, of two months specified in sub-section (1) has not expired or give such shorter notice of sale in such manner as in the opinion of the Board the urgency of the case requires;
   • (b) controlled goods may be sold in accordance with the provisions of sub-section (4) of section 48.

Application of sale proceeds.—(1) Subject to the provisions of the Customs Act, 1962 and the rules and regulations made thereunder, the proceeds of every sale under section 48 or section 49 shall be applied in the following order:—

1. (a) in payment of the expenses of the sale;
2. (b) in payment, according to their respective priorities, of the liens and claims exempted in sub-section (2) of section 46 from the priority of the lien of the Board;
3. (c) in payment of the rates and expenses of landing, removing, storing or warehousing the same and of all other charges due to the Board in respect thereof including demurrage other than the penal demurrage payable in respect of such goods for a period of four months from the date of landing;
4. (d) in payment of any other sum due to the Board.

1. (2) The surplus, if any, shall be paid to the importer, owner or consignee of the goods or to his agent, on an application made by him in this behalf within six months from the date of the sale of the goods.
2. (3) Where no application has been made under sub-section (2), the surplus shall be applied by the Board for the purpose of this Act.

Recovery of rates and charges by distraint of vessel.—(1) If the master of any vessel in respect of which any rates or penalties are payable under this Act, or under any regulations or orders made in pursuance thereof, refuses or neglects to pay the same or any part thereof on demand, the Board may distrain or arrest such vessel and tackle, apparel and furniture belonging thereto or any part thereof and detain the same until the amount so due to the Board, together with such further amount as may accrue for any period during which the vessel is under distraint or arrest, is paid.

1. (2) In case any part of the said rates or penalties or of the cost of the distress or arrest or keeping of the same, remains unpaid for a period of five working days next after any such distress or arrest has been so made, the Board may cause the vessel or other thing so distrained or arrested to be sold and with the proceeds of such sale, shall satisfy such rates, or penalties and costs, including the cost of the sale remaining unpaid, rendering the surplus if any, to the master of such vessel on demand:

Grant of port clearance after payment of rates, realisation of damages etc Grant of port clearance after payment of rates, realisation of damages etc.—If the Board gives to the officer of the Central Government whose duty is to grant the port clearance to any vessel at the port, a notice stating,—

1. (i) that an amount specified therein is due in respect of rates, fines, penalties or expenses chargeable under this Act or under any regulations or orders made in pursuance thereof, against such vessel, or by the owner or master of such vessel in respect thereof, or against or in respect of any goods on board of such vessel; or
2. (ii) that an amount specified therein is due in respect of any damage referred to in section 96 and such amount together with the cost of proceedings for the recovery thereof against a Magistrate under that section has not been realised, such officer shall not grant such port clearance until the amount so chargeable or due has been paid or, as the case may be, the damages and cost have been realised: Provided that any such officer of the Central Government may be authorised to act under this section after issuing a general or special order in consultation with the Central Government.