Deep Sea Fishing Licence Policy 2018

I I REGISTERED No. M-302 EXTRAORDINARY PUBLISHED BY AUTHORITY KARACHI, FRIDAY, APRIL 27, 2018 PART II Statutory Notifications containing Rules and Orders issued by all Ministries and Divisions of the Government of Pakistan and their Attached and Subordinate Offices and the Supreme Court of Pakistan S.R.O. 43(KE)/2018 : GOVERNMENT OF PAKISTAN MINISTRY OF MARITIME AUFAIRS NOTIFICATION Islamabad, the 24th April, 2018 I In supersession of amended policy notified previously under S.R.O. 682(1) I 2009, dated 15th July, 2009 the Federal Government, as per decisioh of Cabinet, is pleased to notify "Deep Sea Fishing Lfcensing Policy, 2018'1 as follows: 1. Preamble: 1.1 . Exclusive Fishery Zone (Regulation · of Fishing) Act, 1975 as amended from time to time, is the basic law governing deep-sea fishing which empowers the Federal.Government to issue licenses for fishing vessels and to lay down a regulatory framework. •" 1.2. With the declaration of Exclusive Economic Zone (EEZ) in 1976, Pakistan's jurisdiction was extended up to 200 NM in the sea from the baseline which added approximately 240,000 square kilometer of sea area to its territory. This gives the country exclusive rights over the living and non-living marine resources in this Exclusive Economic Zone. (173) Price : Rs. 20.00 174 THE GAZETTE OF PAKISTAN, EXTRA, APRIL 27, 2018 [PART II , 1.3. Recently in consonance with Article 76 of the United Nations Convention on Law of the Sea (UNCLOS) and Territorial Waters and Maritime Zone Act, 1976, the limit of Pakistan's Continental Shelf has been extended from 200 NM to 350 NM from baseline, adding an additional area of 50,000 square kilometers with sovereign rights only on non-living resources and living organisms belonging to sedentary species in this additional area. 1.4. To harvest the fishery resources of the EEZ, fishing began with the collaboration of foreign-flagged vessels in 1982. A set of policies have sinc,e been tried for technology transfer and develop our nati onal flagged fleet. However, local entrepreneurs with capital intensive operations have not stepped-in to establish their own deep sea fishing fleet to undertake sustainable fishing practices. 1.5. During recent years, a significant negative change is recorded in the illshing practices of local fisheries by installation of power winches on trawlers and using fine trawl nets which does not allow juvenile fish to escape. As a result the stock in our EEZ; including internal waters and from baseline to 200 NM has depleted to an alarming state. The results of Stock Assessment Surveys (2009-2015) indicate that the demersal stocks have reached a precarious stage which may lead to the collapse of stocks of fish and shellfish species in our waters. The survey has established that our fisheries resources are under serious threat due to overfishing and cMleterious fishing gears. 1.6. This state of affairs is caused due to over-exploitation, unsustainable fishing, trawling, and mushrooming of local fishing fleet. The fishing practices employed by our local fishermen invariably also extend in Zone-Ill beyond 20 NM. The Federal Government, despite being • cognizant, has remained low-key on the issue keeping in view the involvement of livelihood and sustenance of thousands of local fishermen. In order to rectify the situation and undertake remedial measures and also to protect the interests and sustenance of local fishermen, this policy is accordingly formulated. . 1.7. The main thrust of this policy will thus be two pronged; first to eliminate unregulated fishing beyond 12 NM and second, to conserve fish stock which is essential for sustenance and availability of fish in our waters for our future generations. For this purpose, it is essential that the operation of the local fleet presently operating beyond 12 NM ' is regulated through licensing mechanism by the Federal Government; diverting the local fleet towards sustainable fishing methods. 2. Fishing Zones: 2.1. There are three fishing zones in our EEZ: a. Zone~I: From internal waters and area from baseline to 12 NM is jurisdiction of Provincial Governments (Sindh and Balochistan) l 1 PART II) THE GAZETTE OF PAKISTAN, EXTRA, APRIL 27, 2018 175 b . . Zone-II : From 12 to 20 NM under the jurisdiction of Federal Government (buffer zone created by the Federal Government to facilitate local fishermen) c. Zone-Il l: From 20 to 200 NM under the jurisdiction of Federal Government 2.2. The fishing rights in Zone-I and Zone-II (buffer zone) have been reserved for fishermen of provinces of Sindh and Balochistan, who can operate their vessels in this area after obtaining licenses and fishing permits from their respective governments. No local or foreign flagged fishing vessels licensed for Zone-Ill will be allowed to fish in Zone-I & II. Zone-Ill is only for fishing vessels with specific permission of fishing by the Federal Government. 2.3. The Deep Sea Fishing Licensing Policy encompasses judicious exploitation of fishery resources by local individuals/companies/ partnerships as well as joint ventures with foreign companies. No license shall be granted to any foreign individual/entity. 3. Fishing in Zone-Ill for Local Fishing Fleet (From 20 up to 200 NM). 3 .1. • Considering the status of our fish stock, trawling, being unsustainable, cannot be allowed henceforth in Zone-Ill. Only the following categories of vessels will be altowed: Type of Fishing Gear Number of License Fee Period of Vessels (PKR) License Gill Netting 4000 12,000 1 year Pelagic Long Lining 600 12,000 1 year Bottom-set Long Lining 1000 12,000 1 year Squid Jigging 200 12,000 1 year Pot and caged fishing 200 12,000 1 year 3.2. The following are the terms and conditions for local fleet operations in Zone-I ll : a. Registration with Mercantile Marine Department, Government of Pakistan(hereby referred to as MMD) b. License for fishing from Marine Fisheries Department, , Government of Pakistan(hereby referred to as MFD) c. Completion of all requisite formalities before fishing trip ii 176 THE GAZETTE OF PAKISTAN, EXTRA, APRIL 27, 2018 [PART II d. Length of gill nets shall not exceed 2.5 km in compliance to UNGA Resolution 46/215 e. The vessels engaged in tuna gill netting will comply to various resolutions of Indian Ocean Tuna Commission (IOTC) f. All local fishing vessels shall have "Satellite-based Vessel Monitoring System (VMS)" installed onboard conforming to Pakistan Maritime Security Agency (hereby referred to .as PMSA) specifications. The cost of vessel-based unit and its operation expenses ~ ill be borne by the licensee. g. The operations of fishing vessels will be monitored by PMSA. h. The vessel will be allowed to operate subject to production of satisfactory sea-worthiness certificate from MMD i. The licensee will ensure compliance to all Provincial and Federal Government regulations and international conventions/ treaties/ obligations, regarding responsible fishing which are ratified by the Government of Pakistan. j. Bottom/ demersal trawling will not be allowed in any case. k. The crew of the vessel{') must be Pakistani nationals 4. Procedure for Submission I of Applications and Grant of Fishing Licenses to Local Vessels and their Operation in Zone Ill , 4.1. Application to MFD on prescribed application form notified under Exclusive Fishing Zone (Regulation of Fishing) Rules 1990 4.2. Attested copies of License & Fishing Permits (if any) issued by Fisheries Departments of Provincial Governments of Sindh & Balochistan. Any misrepresentation shall render the license to be cancelled at any time during the validity of the license. 5. Requirements and Penalties 5.1. The licensee will conform to the requirements of concerned government agencies such as MFD, Pakistan Custom, MMD etc. and directives issued in this behalf from time to time. 5.2. The licensee will submit a certificate confirming the installation and operation of vessel-based VMS unit on-board conforming to the requirement of PMSA. 5.3. Penalties for violations of fishing rules (Annex A) PART II] THE GAZETTE OF PAKISTAN, EXTRA, APRIL 27, 2018 177 6. Fishing in Zone-Ill for Foreign Joint Venture Fishing Fleet (From 20 up to 200 NM). 6.1. This policy highlights the following specifications/categories for issuing' licenses for deep-sea fishing in Zone-Ill: • 10 tuna long liners of 100 to 250 GT • 10 tuna long liners of 251 to 350 GT • 10 tuna long liners of 351 to 1000 GT • 10 squid jigger (up to 350 GT) • 10 fishing vessels for mesopelagic fishing (200 GT or more) 6.2. The following are the terms and ·conditions for Joint Venture Fishing Fleet. Pakistani nationals/entities may also operate fishing vessels with Pak flag of the below categories: Type of Gross Royalty in Annual Security Maximum Duration of Fishing Tonnage US$/Flshlng License Fee Deposit per a Fishing Vessel (GT) trip (Rs.) Vessel (Rs.) Trip (days) From 100 3,000 300,000 1,000,000 45 to 250 Tuna Long From 251 5,000 500,000 1,000,000 60 Liners lo 350 . .,, From 351 10,000 1,000,000 1,000,000 90 to 1000 Squid Upto 350 ' 1,500 500,000 1,000,000 60 Jiggers Fishing Vessels for From 200 1,500 500,000 1,000,000 60 Mesopelagic and above Fishing a. Annual license fee, royalty and refundable security deposit will be charged by MFD from different categories of vessels, as per detail given above. b. Royalty will be charged in advance prior to the issuance of NOC for each fishing trip c. Fishing trip will commence from the date of issuance of NOC. It •'­ will consist of number of days mentioned below against each category of the vessel. Fishing trip will be considered completed when the vessel reports at the port of cargo shipment. d. Licenses will be given to the pre-qualified firms on the recommendation of an Inter-Ministerial Scrutiny Committee (IM~S). e. Licenses issued would be valid for a period of three (03) years but would be renewed annually on payment of requisite fee. • 178 THE GAZETTE OF PAKISTAN, EXTRA, APRIL 27, 2018 [PART II Default in renewal of the license will result in its cancellation. The license fee would be the same for a year or any part thereof. f. Entity shall be given fishing license(s) for the number of vessel(s) as per decision of Inter-Ministerial Scrutiny Committee (IMSC). g. Licensee will be entitled to determine the mode of procurement of vessel either on self-ownership basis or on joint venture with a foreign firm. ' h. The licensee shall not transship the fish catch at high seas but would land / export the catch from Korangi Fish Harbour or Gwadar port. Those vessels which opt to off-load fish catch to any other port in Pakistan, will be allowed to do so, on advance payment of non-utilization (landing fee) at Korangi Fish Harbour @ US$: 4,000 for each offloading. i. The licensee shall be allowed to transship / export of fish catch either by the same fishing vessel or through a carrier vessel or through containers, only after clearance from all the concerned Government agencies. The licensee exporting the fish catch by same fishing vessel will furnish an undertaking that the subject vessel will not conduct fishing::while leaving Pakistani waters. j. An undertaking will be obtained from the vessel operators clearly stating that no under-invoicing, no transshipment and no discard of fish by-catch will be done, failing which the licensee shall be blacklisted for any future operations in Pakistan. k. All Deep Sea Fishing Vessels shall have "Satellite-based Vessel Monitoring System (VMS)" installed onboard conforming to PMSA specifications. The cost of vessel-based unit and its operation expenses will be borne by the licensee. I. The operations of fishing vessels will be monitored by PMSA. m. The total value of the sale proceeds of the fish exported by Pakistani firm shall be repatriated to Pakistan in foreign exchange. Fo~eign expenditure incurred (including salary of foreign crew) can be remitted as per Government rules and regulations. n. All vessels allowed to operate in Zone-Ill shall have minimum twenty five (25) percent crew of Pakistani origin. o. The vessel will be allowed to operate subject to production of satisfactory sea-worthiness certificate from MMD. p. In case of difference of opinion regarding Gross Tonnage (GT) of vessel, calculation of GT shall be determined by MMD, as per PART II] THE GAZETTE OF PAKISTAN, EXTRA, APRIL 27, 2018 179 provision of International Convention on Tonnage Measurement of Ships 1969, as per the following formula: GT = K1 x V Whereas K1 = • 0.2 + 0.2 + log 10v V = Total volume of all the enclosed spaces of the vessel in cubic meter. q. Scientists/Researchers will be deputed by MFO on vessels as and when required for collection of fisheries data. Fishing vessels will also carry onboard a representative of MFD as Observer. While on-board the licensee will be responsible to provide for their boarding & lodging. On termination of each fishing trip the Fisheries data shall be furnished to MFD, on notified proforma. r. The licensee will ensure compliance to all Provincial and Federal Government regulations and international conventions/ treaties/ obligations, regarding responsible fishing which are ratified by the Government of Pakistano s. Bottom / demersal trawling will not be allowed in any case. t. There will be no restriction for any licensee to sell the entire/part catch for local sale. u. Application for replacement of vessel(s) by the licensee will .be furnished to MMD subject to validity of the fishing license and fulfillment of prescribed criteria. • v. Security deposit will be refunded after settlement of all disputes/dues at the end of the license period. 6.3. Penalties for violations of fishing rules as laid down in SRO 137(KE)/2001 dated 5th September, 2001 (Annex A) 6.4. In case the number of pre-qualified applicants exceed the total number of licenses to be issued; selection shall made through competitive bidding amongst the pre-qualified applicants. 6.5. In case of any dispute within the ambit of this policy, the decision of Secretary, Maritime Affairs (Government of Pakistan) will be final and binding on all parties. 180 THE GAZETTE OF PAKISTAN,· EXTRA, APRIL 27, 2018 [PART II 7. Procedure for Submission 9f Applications 7.1. For pre-qualification, applications will be submitted to MFD that will consist of: a. Detailed Feasibility Report for undertaking fishing operations. b. Company profile of local and Joint Venture partn.er (if applicable) with Articles and Memorandum of Association. Audited annual accounts and ·statements furnished to SECP, bank statement for last 12 months, details of income tax, experience of d,eep sea fishing. Similar documents are required along with Joint Venture Agreement (if applicable). c. Certificate of undertaking that information given is complete and correc t to the best of his knowledge. Any misrepresentation shall render the license to be cancelled at any time during the validity of the license. 7.2. Six copies of the application (including relevant documents) will be submitted along with pay order/demand draft for the amount of Pak Rupees 50,000 (non-refundable) against each vessel; drawn in favor of Director General, MFD, West Wharf, Fish Harbour, Karachi. 8. Procedure for Grant of License 8.1 . The· application will be vetted by MFD. In case of any shortcoming, I the applicant will be duly informed to furnish the requisite details within seven working days of receipt of notice. 8.2. In case of any false, fake, or forged document, the application will be rejected and the application fee shall stand forfeited. 8:3. The shortlisted applications will be submitted to the IMSC sub committee for fu~her processing and final approval by the IMSC. 8.4. The successful applicants shall be issued a Letter of Intent (LOI) by the MFD. 8.5. .. On receipt of Letter of lnten t {LOI) the applicant shall deposit license ,-.. fee , within a period of thirty (30) days, in accordance with the category of the vessel, in the form of a pay order / demand· draft, drawn in favor of Director General1 MFD, Karachi. Provisional license(s) will be accordingly issued by MFD. 8.6. The licensee is liable to bring the vessel(s) of the permitted category within a period of sixty (60) days from the date of Provisional Fishing License; failing which, the license will stand cancelled and license fee shall be forfeited. No extension/exemption in above time limits is allowed. PART II] THE GAZETTE OF PAKISTAN, EXTRA, APRIL 27, 2018 181 8.7. The licensee shall submit the following details in respect of each vessel: 8.8. 8.9. 8.10. 8.11 a. General layout drawings b. Vessel Builder Certificate and Fitness Certificate by Classification Society c. Statement of the type, principal dimension of the vessel(s), navigation and communication equipment, particulars of main and ,auxiliary engines, fishing gears and equipment, fish , processing and freezing equipment and fish holds with capacity. On arrival of vessel in Pakistan for first inspection, a team comprising of officers from MMD and MFD will ascertain the specifications of the vessel and the fishing gears. The licensee will submit a certificate confirming the installation and operation of vessel-based VMS unit on-board conforming to the requirement of PMSA. Formalities pertaining to Naval Intelligence, State Bank of Pakistan, Customs, MMD, and other organizations will be completed prior to fishing operation . • 0 Non-extendable NOC for a fishing trip will be issued by MFD. Discharge of fish catch at any port will be considered the completion of a fishing trip. A new NOC will be accordingly issued. 1 l1 I I I ; 182 THE GAZETTE OF PAKISTAN, EXTRA, APRIL 27, 2018 [PART II Annex A PENALTIES ON VIOLATIONS IN ZONE-Ill BY FOREIGN JOINT VENTURE FISHING FLEET UNDER EXCLUSIVE FISHERY ZONE (REGULATION OF FISHING) RULES, 1990. S. No. Violation of Fishing Rules Amount of Penalties 1 . Fishing beyond the period of the Rs.1,000,000/ validity of the license, (i.e. ,violation of Rule 6}. 2. Fishing in violation of Rule 17 (i.e. Rs.1,000,000/ Fishing in .Zones I & II) j 3. Fishing craft not licensed (i.e. Rs.2,000,000/- and confiscation of violation of Rule 3(2). vessel and fish catch , 4. Non-supply of report I information Rs. 25,000/ about fish 'catch (~~- violation of . Rule 18) 5. Catching of shrimps, berried lobsters Rs.300,000/- and confiscation of and lobster of less than 15 cm - shrimp/lobster catch (i.e. violation of Rule 15 and 16). 6. Landing at ports not having Rs.1,000,000/ customs/check post,· (i.e . violation of Rule 20) , . 7. Operation/employment of any qther Rs.1,000,000/ ship or carrier vessels or anytDther vessel not approved, [i.e. violation of RUie 28(2] 8. Export of fish at high seas I Rs.15,000,000/ transshipment, (i.e. violation of Rule 29) 9. Change in officers, equipment, Rs.200,000/ gears, wireless etc. without prior permission, (I.e. violation of Rule 32) , 10. Failure to furnish information about Rs. 400,000/ fishing and other cruise details etc. (i.e. violation of Rule 23) 11. Failure to have . on-board the Rs. 100,000/ departmental representative as required under Rule 12. ' 12. Non-conformity to Rule. 30 Rs. 100,000/- , .. perta ining to local crew. 13. Person found on the vessel without Rs. 50,000/- per person proper and valid crew cards [i.e. violation of Rule 5(3)] 14. Failure to facilitate the inspection Rs. 200,000/ team as required under Rule 19. 15. Tampering of VMS unit installed Rs. 500,000/ on-board PART II) THE GAZETTE OF PAKISTAN, EXTRA, APRIL 27, 2018 183 Annex B PENALTIES ON VIOLATIONS IN ZONE-Ill BY LOCAL FISHING FLEET UNDER EXCLUSIVE FISHERY ZONE (REGULATION OF FISHING) RULES, 1990 (FROM 20 UP TO 200 NM). S. No. Violation of Fishing Rules Amount of Penalties 1. Fishing beyond the period of the Rs.10,000/ validity of the license, (i.e. violation of Rule 6). 2. Fishing craft not licensed [i.e. Rs.100,000/- and ,confiscation of violation of Rule 3(2)]. fish catch 3. Non-supply of report / information Rs.10,000/ about fish catch (i.e. violation of Rule 18). 4. Catching of berried lobsters and Rs.50,000/- and confiscation of lobster less than 15 ~m - (i.e. lobster catch violation of Rule 15 and 16). 5. Change in fishing gears without Rs.100,000/ prior permission, (i.e. violation of Rule 32). 6. Person found on the vessel Rs.5,000/- per person without proper and valid crew cards (i.e: violation of Rule 5(3). . ,,, 7. . Tempering of VMS unit installed Ks.200,000/ on-board. No.F. 1 (78)- AFDC-II/MFD/2018 ASAD RAFI CHANDNA, Fisheries Development Commissioner. PRINTED BY THE MANAGER, PRINTING CORPORATION OF PAKISTAN PRESS, KARACHI PUBLISHED BY THE DEPUTY CONTROLLER, STATIONERY & FORMS, KARACHI.