Laws and Practices Relating

to
Petroleum Imports
Acts & Conventions

Documents
Acts & Conventions
 Merchant Shipping Act, 1958
 The Indian Ports Act, 1908
 Marine Insurance Act 1963
 Carriage of Goods by Sea Act
("COGSA") 1971 ( Replaced Bills of Lading Act
1855)
 International Conventions (Hague Rules,
Arrest of sea going ship, Civil Liability for oil pollution
Damage)

P & I Club
What is P&I Insurance?

 P&I stands for Protection and Indemnity.

 P&I is insurance in respect of third party
liabilities and expenses arising from owning
ships or operating ships as principals.
 It is not hull insurance, war risk insurance,
loss of profit/freight insurance, detention
insurance, strike insurance or uninsured legal
expenses cover.
COTRACT FOR SALE AND
PURCHASE

Contains-
-INCOTERMS (International Com. terms)
-Standard GTC
Terms relating to delivery, payment, measurement, destination
restrictions, vessel nomination, rules reg reporting, loading,
demurrage, buyer and sellers rights and obligations, dispute
resolution etc
-Special Terms and Conditions
Specific provisions agreed between buyer and seller – type of
crude, price formula, supply date, load port, discharge port
FOB S ALES O F CR UD E O IL
Contains-
-INCOTERMS (International Com. terms)
-Standard GTC
Terms relating to delivery, payment, measurement, destination
restrictions, vessel nomination, rules reg reporting, loading,
demurrage, buyer and sellers rights and obligations, dispute
resolution etc
-Special Terms and Conditions
Specific provisions agreed between buyer and seller – type of
crude, price formula, supply date, load port, discharge
Standard GTC
 I DEFINITIONS
 II DELIVERY TERMS AND PASSING OF RISK AND
PROPERTY
 III QUALITY
 IV INVOICING AND PAYMENT4
 V DESTINATION
 VI VESSEL
 VII ARRIVAL AND LOADING OF VESSEL AT THE
LOADING TERMINAL
 VIII LAYTIME AND DEMURRAGE
 IX QUANTITY AND QUALITY DETERMINATION
 APPLICABLE LAW AND JURISDICTION
AP PLICABL E LAW AND JUR ISDI CTION

 The Agreement (and Seller's offer) is made under, and

shall be governed by, and be construed in all respects in
accordance with, the laws of England but without
reference to any conflict of law rules.
 The parties expressly agree that all disputes and claims
arising out of or relating to the Agreement or
the alleged breach thereof shall be submitted to the
exclusive jurisdiction of the High Court sitting in
London and to service of process by registered mail.
Meas ur ement and Tes ts.
 All measurements hereunder shall be
made from static tank
 Gauges tank table basis or by positive
displacement meters.
 Shall be made in accordance with the
latest ASTM or ASME-API
 Not to exceed 1% B S&W. Surveyor’s

Report is treated an independent

document
QUA NT IT Y AND QUA LIT Y DETERMINATI ON

 The quantity and quality of the Oil delivered under the

Agreement shall be determined for each Shipment in
accordance with the standard practice in use at the
Loading Terminal
 The quantity of Oil determined pursuant to above (or,
where applicable, the Special Terms and Conditions)
shall be inserted in the certificate of quantity and bill of
lading for the cargo as per the standard practice in use at
the Loading Terminal at the time of loading and
 that quantity shall be used to calculate Seller’s invoice
Bil l o f L ading
A document supplied to the exporter by the shipping
company that is transporting the goods to their foreign
destination, listing, item by item, the goods being shipped.
It serves three basic purpose:
 1. To acknowledge receipt by the carrier of the exporter's
goods.
2. To indicate the carrier's contractual obligation to
transport the goods to their destination in exchange for
payment.
 3. To record transfer of title (or ownership) from the seller
to the buyer when payment for the goods takes place.
(Airlines use what is called – Air-way bill)
Cha rte r P arty
 Charter Party is a contract between a
shipowner and a merchant, by which a
ship is let or hired for the conveyance of
goods on a specified voyage, or for a
defined period.
 All terms, conditions and exceptions are
stated in the contract or incorporated by
reference
HA GUE RU LES
 The HAGUE RULES are part of CARRIAGE OF GOODS BY
SEA ACT 1971 The provisions of these Rules shall apply
to every bill of lading relating to the carriage of goods
between ports in two different States if
 (a) the bill of lading is issued in a contracting State, or
 (b) the carriage is from a port in a contracting State, or
 (c) the contract contained in or evidenced by the bill of
lading provides that these Rules or legislation of any
State giving effect to them are to govern the contract;
 whatever may be the nationality of the ship, the carrier,
the shipper, the consignee, or any other interested
person.
Bil l o f En try

 Declaration by an importer or exporter

of the exact nature, precise quantity and
value of goods that have landed
 It is examined by customs authorities
for its accuracy and conformity with the
tariff and regulations.
 Payment of customs duty
 THANKS

 http://www.totsa.com/pub/about/gtcs.php?rub=6&ssrub=7

 http://www.infraline.com/whatsnew.asp?wSector=oilgas&p
=282