All stake holders involved in the transportation of oil in bulk as cargo on oil tankers under Annex I of MARPOL 73/78 employed in the carriage of oil imported into India or shipped from any place in India in bulk as cargo of a ship are obliged to pay oil Cess at the prescribed rate of 50 paise per ton to the Central Government.  The Cess is being collected at all major ports by Dy. Conservators and minor ports by the Port Officers or other designated Officers.   

            The Directorate General of Shipping has been receiving queries to the applicability of Oil Cess levy to the types of oils.  It is hereby informed that the Oil Cess shall be payable by the ship owners or his agent or Master prior to the discharge of cargo at any Indian port or ports as petroleum in any form including crude oil, fuel oil, sludge, oil refuse and refine products (other than petro-chemicals which are subject to the provisions of Annex II or MARPOL 73/78) persistent and non-persistent oil carried by the oil tanker in bulk as cargo.   

            All Dy. Port Conservators of major Indian ports, State Port Officers of Maritime Boards and Port Officers of minor / captive ports are directed to collect the Oil Cess on the import or shipped cargo of oil in bulk on oil tankers under the provisions of MARPOL 73/78 Annex. I  Regulation 1 (1) and Regulation 12 (2)(a) to (f).

Yours faithfully, 

Sd/-
(Capt. V. Baijal)
Dy.Nautical Adviser to the Government of India
21^st October 2005