Decree No. 10/2001/NĐ-CP on Conditions for Operating Marine Services

DECREE

Regarding the conditions for operating maritime services

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THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Vietnam Maritime Code dated June 30, 1990;

Pursuant to the State Enterprise Law on April 20, 1995;

Pursuant to the Enterprise Law dated June 12, 1999;

Pursuant to the Law on Foreign Investment in Vietnam dated November 12, 1996 and the Law Amending and Supplementing Certain Provisions of the Law on Foreign Investment in Vietnam dated June 9, 2000;

Pursuant to the Cooperative Society Law dated March 20, 1996;

At the proposal of the Minister of Transport,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Application

This Decree stipulates the conditions for operating maritime services for the following types of maritime services:

1. Ship agency service;

2. Marine transport agency service;

3. Maritime brokerage service;

4. Ship supply service;

5. Cargo tallying service;

6. Ship towing service;

7. Ship repair service at port;

8. Ship cleaning service;

9. Port cargo handling service.

Article 2. Enterprises permitted to operate maritime services in Vietnam

Enterprises of all economic sectors that meet the conditions prescribed in this Decree shall be allowed to operate the maritime services mentioned in Article 1 above. For enterprises with foreign investment, the contribution of the Vietnamese party must not be less than 51%. However, for the two services: ship agency service and ship towing service, only domestic enterprises with 100% domestic capital are permitted to operate.

Article 3. Application of laws and international treaties

1. Enterprises operating maritime services must comply with the provisions of this Decree, Vietnamese law, and relevant international treaties to which the Socialist Republic of Vietnam is a signatory or participant.

2. In case an international treaty to which the Socialist Republic of Vietnam is a signatory or participant provides different provisions, such provisions shall apply.

Chapter II

MARITIME SERVICES ACTIVITIES

Article 4. Ship agency service

Ship agency service is a service performing the following tasks on behalf of the ship owner:

1. Handling procedures for ships entering and leaving ports with competent authorities;

2. Arranging ship towing, arranging pilots to guide ships, arranging berths and mooring places for ships to carry out cargo loading and unloading, embarkation and disembarkation of passengers;

3. Notifying necessary information to parties related to ships, cargoes, and passengers, preparing documents and papers regarding cargoes and passengers, arranging delivery of goods to consignees;

4. Processing customs and border defense procedures related to ships and procedures for cargo loading and unloading, embarkation and disembarkation of passengers;

5. Collecting and paying on behalf of freight charges, compensation payments, payment of rewards, penalties for releasing ships, and other amounts;

6. Arranging supplies for ships at ports;

7. Signing charter party contracts, handling ship delivery and crew reception procedures;

8. Signing transportation contracts, cargo handling contracts;

9. Handling procedures related to maritime disputes;

10. Resolving other matters according to authorization.

Article 5. Marine transport agency service

Marine transport agency service is a service performing the following tasks on behalf of the consignor:

1. Organizing and conducting activities serving the transportation process, cargo delivery, passenger and baggage transportation based on sea transportation contracts or multimodal transport contracts;

2. Leasing and subleasing marine transport equipment, cargo handling equipment, warehouses, wharfs, and other specialized maritime equipment;

3. Acting as container agent.

4. Resolving other matters according to authorization.

Article 6. Maritime brokerage service

Maritime brokerage service is a service performing the following tasks:

1. Mediating in the signing of cargo transportation contracts, passenger and baggage transportation contracts;

2. Mediating in the signing of maritime insurance contracts;

3. Mediating in the signing of ship chartering contracts, ship purchase and sale contracts, towing contracts, and crew leasing contracts;

4. Mediating in the signing of other contracts related to maritime activities as requested by the principal in specific contracts.

Article 7. Ship supply service

Ship supply service is a service performing the following tasks related to ships:

1. Providing ships with food, water, materials, equipment, fuel, lubricants, packing and separating materials;

2. Providing services to meet living needs, medical care, entertainment of passengers and crew members, organizing pick-up and drop-off, entry and exit formalities, crew changeover.

Article 8. Cargo tallying service

Cargo tallying service is a service performing the actual counting of cargo quantities when transferring or receiving from ships or other means of transport upon the commission of the consignor, consignee, or carrier.

Article 9. Ship towing service

Ship towing service is a service performing towing, pushing, or assisting operations for ships and other floating vessels on the sea or in waters related to ports where ships are permitted to enter and leave.

Article 10. Ship repair service at port

Ship repair service at port is a service performing repair and maintenance work for ships while docked at the port.

Article 11. Ship cleaning service

Ship cleaning service is a service performing the collection and treatment of waste, oil waste, and other discharges from ships when they are moored at the port.

Article 12. Port cargo handling service

Port cargo handling service is a service performing cargo loading and unloading work at the port according to the technological process for each type of cargo.

Chapter III

CONDITIONS FOR OPERATING MARITIME SERVICES

Article 13. Conditions for operating ship agency services

A business is permitted to operate ship agency services when it meets the following conditions:

1. The business director must have at least two years of direct experience in ship agency operations;

2. The agency staff must meet the following conditions:

a) Graduated from Maritime University or Foreign Trade University or have at least three years of experience in related ship agency operations;

b) Hold a certificate confirming their professional expertise in ship agency operations issued by the Chamber of Shipping Agents and Brokers;

3. The business must maintain a minimum balance of one billion Vietnamese dong in its bank account established and operating under Vietnamese law, or have professional liability insurance for ship agency operations.

Article 14. Conditions for operating marine cargo transportation agency services

A business is permitted to operate marine cargo transportation agency services when it meets the following conditions:

1. The business director must have at least two years of direct experience in marine cargo transportation agency operations;

2. The agency staff must meet the following conditions:

a) Graduated from Maritime University or Foreign Trade University or have at least three years of experience in related marine cargo transportation agency operations;

b) Hold a certificate confirming their professional expertise in marine cargo transportation agency operations issued by the Chamber of Freight Forwarding and Warehousing;

3. The business must have professional liability insurance for marine cargo transportation agency operations.

Article 15. Conditions for operating maritime brokerage services

A business is permitted to operate maritime brokerage services when it meets the following conditions:

1. The business director must have at least two years of direct experience in maritime operations;

2. Maritime brokers must graduate from Maritime University or Foreign Trade University or have at least three years of experience in maritime operations.

Article 16. Conditions for operating ship supply services

A business is permitted to operate ship supply services when it meets the following conditions:

1. The business director must have at least two years of direct experience in ship supply operations;

2. Ship supply staff must graduate from Maritime College or Commercial College or higher, or have at least three years of experience in maritime operations;

3. Supplies provided to ships must comply with legal standards.

Article 17. Conditions for operating cargo tallying services

A business is permitted to operate cargo tallying services when it meets the following conditions:

1. The business director must have at least two years of direct experience in cargo tallying operations;

2. Tally clerks must graduate from a college level or higher, or have at least three years of experience in maritime operations.

Article 18. Conditions for operating ship towing services

A business is permitted to operate ship towing services when it meets the following conditions:

1. The business director must have at least two years of direct experience in ship towing operations;

2. Crew members working on towing vessels must hold professional certificates in maritime operations as prescribed by law;

3. The business must have towing vessels registered in Vietnam and meeting technical safety requirements as prescribed by law;

4. The business must have civil liability insurance for the owner of the towing vessel and crew insurance.

Article 19. Conditions for operating ship repair services at ports

A business is permitted to operate ship repair services at ports when it meets the following conditions:

1. The business director must have at least two (2) years of work experience directly managing ship repair operations;

2. It must have sufficient equipment, facilities, and workforce to meet the requirements stipulated by law.

Article 20. Conditions for operating ship cleaning services

A business is permitted to operate ship cleaning services when it meets the following conditions:

1. The business director must have at least two (2) years of work experience directly managing ship cleaning operations;

2. It must have sufficient equipment, facilities, and workforce to meet the requirements stipulated by law.

3. It must have plans for handling waste, oil spills, and other discharges, along with an environmental impact assessment report approved by competent state authorities.

Article 21. Conditions for operating cargo handling services

A business is permitted to operate cargo handling services when it meets the following conditions:

1. The business director must have at least two (2) years of work experience directly managing cargo handling operations;

2. It must have cargo handling equipment and tools that comply with technical safety standards and a workforce capable of meeting the requirements set forth.

Chapter IV

INSPECTION, AUDIT, COMPLAINTS, REPORTING AND VIOLATION HANDLING

Article 22. Inspection and supervision of maritime service business activities

1. The Ministry of Transport is responsible for organizing inspections and supervising maritime service business activities and handling violations within its authority.

2. The inspection and supervision content includes compliance with laws governing maritime service business operations and implementation of registrations committed to competent state authorities.

3. Inspections and supervision of businesses engaged in maritime service operations must be conducted in accordance with the provisions of the law.

Article 23. Petitioning and Reporting

Businesses have the right to lodge complaints, file charges, or initiate lawsuits according to the law regarding actions by state agencies or individuals that violate the rights of businesses as prescribed by law.

Article 24. Handling Violations

Organizations and individuals violating the provisions of this Decree shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation, and must compensate for damages if caused, in accordance with the law.

Chapter V

IMPLEMENTING PROVISIONS

Article 25. Implementation Provisions

1. This Decree shall take effect fifteen days from the date of signature.

Any previous regulations inconsistent with the provisions of this Decree are hereby abolished.

2. Businesses currently operating maritime service businesses prior to the effective date of this Decree may continue their operations but must ensure they meet the business operation conditions specified within one hundred eighty (180) days from the effective date of this Decree.

3. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairmen of provincial and centrally-administered city People's Committees are responsible for implementing this Decree./.