Indian Service Tax on Prepaid Import Ocean Freight

The Indian Government has enforced a new regulation according to which a 4.5% Service Tax (inclusive KKC and SBC tax of 0.15% each) will be levied on Prepaid Import Ocean Freights and Base Ocean Surcharges with effect from 22 January 2017. The same taxes have already been levied on Import Ocean Freight basis “collect” since a while.

Consequently, our quotations and bookings for cargoes to India will list these taxes (charge code “IST”) with immediate effect. Please note that this also applies to already made bookings e.g. for voy. 4059 and any other sailings to India.

For quotations for cargoes from US ports, the IST is being filed in our tariff with the FMC and will become applicable after 30 days, i.e. as from 6 March 2017.

Read the Notification from the Indian Ministry of Finance here.

Should you have any questions concerning the Indian Service Tax on Prepaid Import Ocean Freight, please do not hesitate to contact your local Rickmers-Linie office or Agency.

Kind regards


This information has been updated on 22 February 2017. The IST is 4.5% including KKC and SBC taxes, not 5.5% as initially published.