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Logistics, Shipping & Aviation: statutory compliance in India

Carriage of goods by road, sea and air, multimodal transport, DGCA and DG Shipping regulation, customs and DGFT, e-way bills, cargo claims and ship arrest.

What this covers

8 regulators, 12 key statutes and 15 compliance obligations, plus 10 common dispute types and 21 due-diligence checks. 15 entries are marked for verification because the rule is state-specific, recently amended, or commenced in stages — those say what to check rather than stating a date we cannot stand behind.

Who regulates this sector

Regulator	What it decides
Directorate General of Civil Aviation (DGCA)	Air operator certification, airworthiness, licensing of personnel, flight duty time limitations and safety oversight.
Bureau of Civil Aviation Security (BCAS)	Aviation security programmes, regulated agent and known consignor schemes for air cargo.
Directorate General of Shipping (DG Shipping)	Registration of multimodal transport operators, ship registration, seafarer certification and ISM and ISPS oversight.
Central Board of Indirect Taxes and Customs (CBIC)	Customs clearance, classification and valuation, AEO accreditation, customs broker licensing and bonded warehousing.
Directorate General of Foreign Trade (DGFT)	Importer-exporter code, authorisations, and the export policy conditions on restricted goods.
State Transport Authority and the Ministry of Road Transport and Highways	Permits, fitness, driver licensing and the common carrier registration under the Carriage by Road Act.
Warehousing Development and Regulatory Authority (WDRA)	Registration of warehouses that issue negotiable warehouse receipts.
GST authorities	E-way bills, e-invoicing, and detention and seizure of goods in transit under section 129.

Key statutes

Statute	Year	Why it matters
Carriage by Road Act	2007	Registration of common carriers, the goods forwarding note, limitation of the carrier's liability, and section 16 — no suit unless notice of loss or damage is given within 180 days of the date of booking.
Multimodal Transportation of Goods Act	1993	Only a registered multimodal transport operator may issue a multimodal transport document; the Act sets the liability regime and the limitation for claims under it.
Carriage of Goods by Sea Act	1925	Applies the Hague Rules as amended to bills of lading for carriage from Indian ports, including the one-year time bar for cargo claims. — verify: India has been modernising this framework, and replacement legislation for the 1925 Act and the Bills of Lading Act, 1856 has been taken through Parliament. Confirm which Act governs the bill of lading in question and its commencement date.
Merchant Shipping Act	1958	Registration, crewing, safety and pollution obligations for Indian ships and the DG Shipping's powers over them. — verify: This statute has been the subject of consolidating replacement legislation. Confirm what is in force before citing section numbers.
Carriage by Air Act	1972	Gives the Warsaw, Hague and Montreal Convention rules the force of law in India, including the notice periods and the two-year limitation for claims.
Aircraft Act	1934	With the Aircraft Rules, 1937, the source of DGCA regulation of aircraft, personnel and operations. — verify: Replacement legislation reorganising this framework has been enacted. Confirm which Act and which rules are in force for the point being advised on.
Admiralty (Jurisdiction and Settlement of Maritime Claims) Act	2017	Lists the maritime claims for which a vessel may be arrested and which High Courts have admiralty jurisdiction; arrest is the practical security for a cargo or bunker claim.
Customs Act	1962	Classification, valuation, warehousing, confiscation and penalty; section 28 demands and the detention of consignments are the day-to-day disputes.
Motor Vehicles Act	1988	Permits, fitness, driver liability and third-party compensation through the Motor Accidents Claims Tribunal; the 2019 amendment raised penalties sharply.
Major Port Authorities Act	2021	Replaced the Major Port Trusts Act, 1963; port tariffs are now set by the port authority's board rather than a central tariff authority.
Marine Insurance Act	1963	Insurable interest, warranties, and subrogation — the framework behind most cargo recovery actions, which are really insurer-driven.
Warehousing (Development and Regulation) Act	2007	Negotiable warehouse receipts and the registration a warehouse needs to issue them, which is what makes commodity finance possible.

Compliance obligations

Obligation	Form	When	If missed	Authority
Generate and extend e-way bills (verify: The value threshold for intra-state movement is set by each state and differs. Validity is one day per the notified distance slab; confirm the current slab.)	EWB-01	Monthly. Generate before movement of goods where the consignment value exceeds the threshold; validity runs by distance, and Part B must be updated on each change of conveyance.	Detention and seizure under section 129 of the CGST Act, with tax and penalty payable to release the goods and the vehicle.	CGST Rules, 2017 Rule 138
Report invoices to the Invoice Registration Portal (verify: Both the turnover threshold and the maximum reporting delay have been revised in stages. Confirm the current threshold and window.)	—	Monthly. Generate the invoice reference number for every B2B invoice where the aggregate turnover crosses the notified threshold, within the reporting window.	An invoice without a valid IRN is not a valid document, so the recipient loses input tax credit and the e-way bill cannot be generated.	CGST Rules, 2017 Rule 48(4)
Monthly GST returns (verify: QRMP filers and taxpayers in certain states have different dates.)	GSTR-1 and GSTR-3B	Monthly. GSTR-1 by the 11th and GSTR-3B by the 20th for monthly filers.	Late fee and interest, and blocking of e-way bill generation after two consecutive default periods.	CGST Act, 2017 sections 37 and 39
Update the Importer-Exporter Code	—	Annual. Update the IEC electronically every year between April and June, even where there is no change.	The IEC is de-activated, which stops every import and export until it is updated.	Foreign Trade Policy; DGFT notifications
Realise and repatriate export proceeds (verify: The realisation period has been extended and varies for SEZ and status-holder exporters. Confirm the current period.)	—	Quarterly. Realise the full export value within the period permitted under FEMA from the date of export, and close the entry in EDPMS.	Outstanding EDPMS entries block further shipping bills and become a FEMA contravention requiring compounding.	FEMA, 1999; RBI Master Direction on Export of Goods and Services
Multimodal transport operator registration renewal (verify: Confirm the current tenure and the renewal lead time with DG Shipping.)	—	On renewal. Registration with the Director General of Shipping is granted for a fixed term and must be renewed before expiry.	Issuing a multimodal transport document without registration is an offence and undermines the document itself.	Multimodal Transportation of Goods Act, 1993
Common carrier registration under the Carriage by Road Act (verify: Confirm the certificate's validity period and the renewal procedure with the issuing authority.)	—	On renewal. Register with the State Transport Authority and renew before expiry; carry the registration number on every goods forwarding note.	Operating as an unregistered common carrier is an offence, and the statutory limitation of liability is not available.	Carriage by Road Act, 2007 and the Carriage by Road Rules, 2011
Give notice of cargo loss or damage in time	—	On the trigger event. Road: within 180 days of the date of booking. Air, under the Montreal Convention: 7 days for checked baggage, 14 days for cargo damage and 21 days for delay. Sea: the one-year time bar for suit.	No notice, no claim — the bar is absolute for road and air, and the sea time bar is a complete defence.	Carriage by Road Act, 2007 section 16; Carriage by Air Act, 1972 Schedules; Carriage of Goods by Sea Act, 1925
Airworthiness review and continuing airworthiness management (verify: Review dates are aircraft-specific and set by the maintenance programme, not by the calendar. Replace this placeholder with the actual review date.)	—	Annual. Maintain the certificate of airworthiness through the airworthiness review cycle and the approved maintenance programme.	The aircraft is grounded, and the operator's certificate is at risk.	Aircraft Rules, 1937 and the DGCA Civil Aviation Requirements
Air operator certificate renewal and surveillance audits (verify: Tenure and the renewal application lead time are set by the applicable CAR.)	—	On renewal. Apply for renewal in accordance with the applicable Civil Aviation Requirement and close all audit findings within the time given.	Operations cease on expiry, and unclosed findings escalate to enforcement action.	Aircraft Rules, 1937; DGCA Civil Aviation Requirements
ISM Code document of compliance and safety management certificate verification (verify: Verification windows are anniversary-based for each vessel, not calendar-based.)	—	Annual. Annual verification of the document of compliance and the intermediate verification of the safety management certificate within the prescribed windows.	Detention by port state control and invalidation of the certificate.	Merchant Shipping Act, 1958 and the ISM Code as applied in India
Vehicle fitness, permit, insurance and pollution certificates (verify: Renewal cycles differ by vehicle age and category; run this from the fleet register, not a single date.)	—	Annual. Renew the fitness certificate, the goods carriage permit, third-party insurance and the pollution under control certificate for every vehicle before expiry.	Penalties under the Motor Vehicles Act, and an uninsured vehicle exposes the owner personally to a MACT award.	Motor Vehicles Act, 1988
Authorised Economic Operator obligations and renewal (verify: Validity differs between AEO tiers; confirm from the certificate.)	—	On renewal. Maintain the compliance standard, report changes and apply for renewal of the AEO status before expiry.	Loss of the deferred duty and faster clearance benefits that the supply chain is planned around.	CBIC AEO programme circulars
Bonded warehouse bond, interest and clearance timelines	—	Quarterly. Track the warehousing period for each bill of entry and clear or extend before it expires, keeping the bond and bank guarantee live.	Interest on duty and, on expiry, the goods are liable to be sold by the department.	Customs Act, 1962 sections 61 and 72
WDRA warehouse registration renewal (verify: Confirm the current registration tenure with the WDRA.)	—	On renewal. Renew registration before expiry to continue issuing negotiable warehouse receipts.	Receipts issued without registration are not negotiable, which breaks the commodity finance behind the stock.	Warehousing (Development and Regulation) Act, 2007

Where disputes in this sector are heard

Dispute	Forum	Note
Cargo loss and damage claims	Civil court, commercial court, or arbitration where the contract provides	Statutory notice periods and the one-year sea time bar decide more of these than the merits.
Ship arrest and maritime claims	High Courts exercising admiralty jurisdiction under the 2017 Act	Arrest gives security; release usually follows a bank guarantee or P and I club letter.
Customs classification and valuation disputes	Adjudicating authority, Commissioner (Appeals), then CESTAT	Pre-deposit is required at each appellate stage.
GST detention of goods in transit	Appellate authority under section 107, then the High Court	Writs succeed where the defect is technical and there is no intention to evade.
Consumer complaints against carriers and couriers	Consumer commissions	Standard-form limitation clauses are frequently read down as unfair contract terms.
Motor accident compensation	Motor Accidents Claims Tribunal	The owner and, through it, the logistics operator remain exposed where the driver was not properly licensed.
Aircraft lease default and repossession	High Court, DGCA deregistration process, and NCLT if insolvency intervenes	The moratorium in insolvency has repeatedly collided with lessors' repossession rights.
Freight and demurrage recovery	Commercial Court, or summary suit	Detention and demurrage claims are usually the largest unpaid item in a lane dispute.
Charterparty and shipping contract disputes	Arbitration, often seated outside India	Enforcement of the foreign award then runs through the Arbitration and Conciliation Act, 1996.
Warehouse stock shortage claims	Arbitration or civil court	Bailment obligations mean the burden of explaining a shortage falls on the warehouse.

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