(1) Import of ships, vessels, boats and other coastal water transport craft may be made without a licence on the basis of approval or guidelines issued by the Ministry of Surface Transport, Government of India. Import of Trawlers may be made without a licence on the basis of approval or guidelines issued by Department of Animal Husbandry and Dairying, Government of India. Old ships, vessels etc., for the purpose of breaking, are freely importable.

(i). Any item required for the specific purpose or use in connection with ship building, and the import of which has been shown as restricted in the ITC (HS) Classifications of Export and Import items may be imported without an import licence by the industrial undertakings engaged in ship building, subject to actual user condition.

(ii). Any item required for the specific purpose or use in connection with ship repairing and the import of which has been shown as restricted in the ITC(HS) Classifications of Export and Import items, may be imported without any import licence by ship repairing units, duly registered with the Director General (Shipping),Mumbai (working in customs bonded premises), subject to actual user condition and also subject to such conditions as may be notified by the Deptt. of Revenue from time to time in this regard.