Hurricane Harvey’s disastrous effects  to the coastal cities of Corpus Christi and Houston in  the state of Texas , USA a few days ago brought back many memories of our frequent  calls to these ports, though  they were more than two decades  ago.
                                                                                                                                                                                                                                                                                                                                                                                                     Over our morning cup of tea it  occurred  to us  that the weather in the Gulf of Mexico  had  surely changed for the worse since then .  Hurricane Katrina devastated New Orleans in 2005 and  Hurricane Sandy in 2012 hit the East Coast of USA causing a lot of destruction . These are two of these storms which will be remembered for long by sailors. Tornado’s are also being reported with increasing frequency in this region.

 

 Can we blame the  frequency and severity of these extreme weather conditions to today’s  buzz words  “ Global Warming “ or as some prefer to term it “Climate Change” ? It seems we can. In fact not only is the U. S gulf getting effected but every ocean region in the world  is reporting  similar happenings of intense storms over the seas.
The Earth’s average rate of rise of surface  temperature due to the effects of global warming is steadily increasing every year and is  now almost  touching  1 degree Celsius  as indicated in the graph below.

So how does all this affect us – the seafarers; some could be considered  positive though . As the sea temperatures rise,  they give more energy to these storms increasing their frequency and the associated  wind force . In the Arctic Ocean the ice has already  melted enough to allow ships to navigate from Japan to Europe using the new “Northern Sea Route”  saving almost half a month of sailing time as compared to the usual route through the Suez.

Low lying nations such as Maldives, Seychelles , Kiribati, Solomon Islands and even the coastal region of Bangladesh  are threatened to disappear  under water due to the rise in sea levels which is taking place as the ice keeps melting in the Arctic, Antarctic and other  regions .
Over land, the severity of forest fires in Australia , US and Europe has been increasing over the last decade, though this does not directly affect us.
The world has woken up to these facts and almost all nations are taking   steps to slow down the rate of “global warming” by increasing the production of electricity by solar and wind energy harvesting methods thereby reducing carbon dioxide emissions. 

India ratified the Paris climate agreement on Mahatma Gandhi Ji’s birthday, 2016 and has promised the world that it has set Nationally Determined Contribution (NDC) targets to lower the emissions intensity by 2030  to below 2005 levels, to increase the share of non-fossil based power generation capacity to 40% of installed electric power capacity by 2030 and to substantially increase the  forest and tree cover by 2030.
However the recent pulling out by the US from the Paris climate agreement has slowed down  the momentum considerably though it is the second biggest  emitter of CO₂ after China.
 
 

Where would it be safer to locate a nuclear power plant, on land or at sea ? This question has been in the minds of people after three nuclear power plant reactors at Fukushima , Japan were severely damaged due to earthquake and tsunami in 2011. This incident led the nuclear power engineers to think that placing them on land is not such a good idea and shifting them to sea would be safer.

              Marine power plants are cheaper to make in shipyards and much safer to run on a floating platform . A reactor at sea would never run out of emergency cooling water . The Fukushima reactor meltdown happened due to this problem. Additionally the effect of a tsunami wave 10 NMor more  from the coastline is negligible. The electricity generated would be transmitted by a submarine cable . In case of an emergency natural or man made,   the reactor is sufficiently far from  densely populated areas.

               Russia is already constructing  “ Akademik Lomonosov” named after a famous academician Mikhail Lomonosov , as the first Russian floating power station at a Baltic shipyard .It is scheduled to be launched this year and towed to Pevek a port in Russia’s far east and will come into operation in 2019. It has on board two 35MW reactors . It’s length is 144 m , breadth 30 m and  has a displacement of 21,500 tonnes. It has accommodation for 70 crew members.The total cost is estimated to be around 500 million USD.

                                China is partnering with  Russia to jointly build another floating nuclear power plant which indicates that this concept has already found acceptance. However typhoons in the south china sea can cause havoc to these floating installations . To weather such storms a new type of  anchoring system  has  been developed which will keep the ship’s bow  always heading into the wind, giving it the best chance of riding out any storm that nature cares to throw at it. The ships bow are also built high in order to cut through the waves.

 Ships operating in the vicinity will need to keep a safe distance from these floating nuclear power plants(FNPP’s) whose positions would soon appear on nautical charts probably with a new symbol!
 
 

Career Growth in shore based roles – from an ex seafarers perspective
The shift from active seafaring to a position ashore involves a shift in mindset, adaptability to conditions ashore which are very different from those at sea and above all preparing oneself for the challenges that await every “new comer” who makes the transition from ship to shore.

Many times this “shift” is like starting a new chapter as a “trainee” all over again. Is everyone cut out for it or should we say how does one cope up with this change?

Maritime shore based roles are broadly divided into Technical and Commercial Roles which are then further subdivided into a variety of roles covering various facets of the Marine Industry. Whether it be the role of a Superintendent – Marine/ Technical or that of a Surveyor, the basic qualifications and requirements of seagoing experience are common. It would then depend on the specific requirements of each role as all of them differ in what is required to be done. Officers from the Navigation as well as Engineering branches do find ample opportunities when they move ashore and it all boils down to one thing – what are you best suited to? The job requirements of an Operations Manager are very different from those that are required in an HSSEQ role. Similarly, the job demands of a Technical Superintendent managing 5 vessels is far different from a Surveyor who works for a classification society.

Commercial Shipping jobs are available and more suited to those who wish to function in the commercial or trade functions within the Maritime Sector. They require a different skill set altogether. There are number of people who have taken up roles within the S&Q domain only to shift to Commercial Shipping at a later stage. There are professionals who have made transitions from a pure technical role to one that deals with Business Development. It is again not a matter of right vs wrong or good vs bad. It is just about finding what you are good at and identifying the role that you are most suited to. Such shifts sometimes may not prove beneficial as they may be made for the wrong reasons. I remember making such a shift a few years back only to realize that it was not my cup of tea. I eventually reverted back to what I was doing initially as that’s where the expertise lay.

Whilst Technical and Commercial roles are the traditional ones, there are a variety of roles available within and outside the shipping industry.  Demand for qualified mariners come from a variety of industries including Financial Institutions, Trading houses Insurance Companies, Training establishments and many more. Hence it becomes even more important to know how to match the skill sets that one possesses with the job responsibilities.

A number of seafarers have also taken to further their careers by choosing to enhance their skills by upgrading their knowledge. With adequate amount of maritime knowledge under their belt, they have decided to spruce it up with management studies. This could be by way of an MBA – full time or part time or a diploma through distance education. What is important is that seafarers need to identify what kind of education is best suited to them. Career opportunities would be available in various sectors where ex seafarers could fit in. However, the transition from a seafaring role to that of a shore based one is not as easy as it may seem. Many other Maritime focused diploma programmes are also available but it needs to be seen which one is suited to what kind of roles. Whilst it is rightly said that no education goes waste, it is vital that the right course of study is chosen so that one can benefit maximum from the time and money that is invested. Thus it can be seen that there are number of factors to be considered when making the decision to step ashore and more importantly when choosing the right role.

A recently launched programme called CAPS – Career Advancement Program for Seafarers is an initiative that would help seafarers build upon their seafaring career and make a shift to shore based roles in a well planned manner. Why does it need to be planned? Why not just shift to a career ashore like has been done in the past? The answer to this is that in today’s fast paced and competitive market, it is important that job scope and requirements are well understood before such a decision is made. A structured path enables one to factor in the various limitations, linked to the job that he is looking to take up. The 5 day program in Singapore helps seafarers get the much required exposure to the industry requirements and what is expected from them.

For seafarers who are actively seeking a shift to a shore based role, this is a unique opportunity to blend into the lifestyle shore. It will bring about a shift in mindset and the ever important adjustment that is required when making a shift ashore. Further details on CAPS can be made available and those who are keen to know more about this and enrol for the programme that is conducted in Singapore should send their queries to the author.

A sailor, seaman, mariner, or seafarer is a person who navigates waterborne vessels or assists as a crewmember in their operation and maintenance. They stay continuously in international water for more than 4-8 months or more/less as per contract.
 
Residential status of Marine Engineer under Income Tax Act of India
Provision of Indian Income Tax Act
A person resident in India in any year is liable to pay tax in India on his global income. A nonresident, on the other hand, is charged to tax in India only on income which is received or is deemed to be received in India or which accrues or arises or is deemed to accrue or arise to him in India. Thus, in the case of a non-resident, income which accrues or arises outside India and is also received outside India is not subjected to tax in India. So now the question arises, whether Indian Citizen being a crew member is a RESIDENT or NONRESIDENT under Indian Income Tax Act –
An Indian Citizen who is a member of crew of foreign going ships is regarded as a resident in India only if he is in India for 182 days or more during the relevant year irrespective of the extent of his stay in India in earlier years. The above days calculation shall be beginning on the date entered into the Continuous Discharge Certificate (CDC) in respect of joining the ship by the said Individual for the eligible voyage and ending on the date entered into the Continuous Discharge Certificate (CDC) in respect of signing off by that individual from the ship in respect of such voyage.

         Big relief to Seafarer, the period spent by a ship In Indian coastal waters during sign in and sign off period is also taken into account for computing the non-resident status. Thus, generally, Indian members of the crew of a foreign-going Indian ship would be non-resident in India if they are on board such ship outside the territorial waters of India for 182 days or more during any year. Accordingly, such seamen will be charged to tax in India only in respect of earnings received in India or the earnings for the period when they are working within the Indian waters on coastal ships, etc.

           However, unfortunately the Income Tax Tribunal, Kolkata in its judgment dated 1st June, 2016 took away the Income tax benefit of our seafarers on account of receiving remuneration in NRE (NON-RESIDENT EXTERNAL) account maintained with an Indian Bank, resulting many seafarers were served notice by the Income Tax department and had negative effect on the Income of seafarers all over India.

          National Union of Seafarers of India (NUSI) and the Maritime Union of India (MUI) together strongly challenged the ruling of the Kolkata Tribunal. NUSI and MUI took up the matter with the Government of India at various levels at National Shipping Board, National Welfare Board, Maritime Administration, Ministry of Shipping, Ministry of Finance. NUSI and MUI also received thousands of petitions from seafarers in support. Central Board of Direct Taxes (CBDT), on receive of representation regarding the above matter, examined section 5(2)(a) of the Income Tax Act provide that only such income of a non-resident shall be subjected to tax in India that is either received or is deemed to be received in India. It is hereby clarified that salary accrued to a non-resident seafarer for services rendered outside India on a foreign ship shall not be included in the total income merely because that said salary has been credited in the NRE account maintained with an Indian bank by the seafarer. (vide CBDTcircular no. 13/2017 dated 11th April’ 2017)

Conclusion :
1. Income by way of remuneration earned outside India shall not taxed in India.
2. But, Income which is received or is deemed to be received in India or which accrues or arises or is deemed to accrue or arise to him in India other than sl no. 1 taxable in India.

Some other important points:
a. Requirement of filling Income tax Return (ITR) by the NON-Resident in following cases :
1. Indian Income exceed basic exemption limit (i.e. Rs. 2,50,000/- presently).
2. Tax Deducted at sources (TDS) and wants to claim refund
3. Have a loss that they want to carry forward.
b. Last date of return filling date is 31st July’ 2017 for the Financial Year 2016-17 and so on.
c. If the Tax liabilities of NRI exceeds Rs. 10,000/- in a financial year then required to pay advance tax.