Decree No. 114/2014/ND-CP on objects and conditions permitted to import and dismantle used ships

DECREE

Article 24concerning the objects and conditions permitted to import, dismantle used ships. 拆除已使用的船舶

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Maritime Code of Vietnam dated June 14, 2005;

Pursuant to the Environmental Protection Law on June 23, 2014;

Pursuant to the Enterprise Law dated November 29, 2005;

At the proposal of the Minister of Transport,

The Government issues this Decree to regulate the objects and conditions permitted to import and dismantle used ships.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree regulates the objects and conditions permitted to import used ships for dismantling and manages the activities of dismantling ships in Vietnam.

Article 2. Applicability

This Decree applies to organizations and individuals both domestic and foreign related to the activities of importing used ships for dismantling and the activities of dismantling ships in Vietnam.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. Dismantling ships means the activity of disassembling the entire structure of ships at ship dismantling facilities.

2. Ship dismantling facility means a specialized area for dismantling ships.

3. Ship dismantling enterprise means an enterprise held 100% by Vietnamese organizations and individuals in the registered capital of the enterprise and owning a ship dismantling facility that has been put into operation.

4. Ship dismantling plan means a scheme established by a ship dismantling enterprise to carry out the dismantling of each ship.

Article 4. Principles of Importing and Dismantling Used Ships

1. The activities of importing and dismantling used ships must ensure maritime safety, maritime security, labor safety, human health protection, and environmental protection.

2. The dismantling of used ships can only be carried out at ship dismantling facilities that have been permitted to operate according to regulations.

3. Used ships imported for dismantling must fall under the cases stipulated in Article 8 of this Decree; the importer must submit a list of materials on board the ship according to the form prescribed in Appendix I attached to this Decree.

4. Used ships imported for dismantling shall not be converted, upgraded, changed in purpose, or transferred, sold, or purchased again.

5. Used ships imported for dismantling must be delivered to a dismantling facility within thirty days from the completion of customs procedures but not later than ninety days from the date the ship arrives at the first Vietnamese port; the dismantling period of the ship shall not exceed one hundred eighty days from the date the ship is brought to the dismantling facility.

6. Used ships for dismantling shall not be in a state of mortgage or maritime dispute.

Article 5. Environmental Protection in Ship Dismantling Activities

Ship dismantling enterprises are responsible for:

1. Establishing plans for collecting, storing, transporting, and treating waste generated from dismantling activities for each ship or must have contracts with enterprises permitted to operate such services regarding the collection, transportation, and treatment of waste generated from dismantling each ship.

2. Arranging areas to safely store various types of waste generated from ship dismantling activities before their disposal in accordance with laws on environmental protection.

3. Developing contingency plans for environmental incidents occurring during ship dismantling activities.

4. Promptly and effectively applying measures to address environmental incidents occurring during ship dismantling activities and must report to competent authorities for coordination in handling.

5. Purchasing insurance and fulfilling obligations related to liability insurance for environmental damage associated with ship importation and dismantling activities.

6. Implementing other relevant provisions of laws on environmental protection.

Article 6. Regulations on the dismantling of Vietnamese ships and foreign ships sunk in Vietnam

1. Vietnamese-flagged ships if dismantled in Vietnam must comply with the provisions of Articles 17, 18, and 19 of this Decree and other relevant laws.

2. In cases where foreign-flagged ships suffer accidents, damage, or sink and require dismantling in Vietnam, they must be imported and dismantled according to the provisions of this Decree and other relevant laws.

Chapter II

CONDITIONS FOR IMPORTING USED SHIPS FOR DISMANTLING

Article 7. Conditions for importing used ships for dismantling

a) Registration of business activities involving the importation of used ships for dismantling;

b) Having specialized departments responsible for implementing import procedures; maritime law; labor safety; and environmental protection;

c) Possessing a minimum statutory capital of 50 (fifty) billion Vietnamese dong.

2. The Import Permit for Used Ships for Dismantling is valid for five years from the date of issuance.

3. The Minister of Transport shall stipulate the procedures and formalities for issuing the Import Permit for Used Ships for Dismantling.

Article 8. Types of used ships permitted for importation for dismantling

1. Dry cargo ships, including: General cargo, bulk cargo, equipment cargo, wood chips, logs, grains, bagged cargo, steel cargo.

2. Container ships.

3. Ore carriers.

4. Liquid cargo ships, including: Crude oil, petroleum products, vegetable oils.

5. Gas carriers, liquefied gas carriers.

6. Roll-on/Roll-off ships, passenger ships, sea barges, ferries.

7. Floating drilling rigs.

8. Self-elevating drilling rigs.

9. Floating storage units.

10. Floating storage and offloading units.

11. Other types of ships determined by the Prime Minister upon the proposal of the Minister of Transport.

Article 9. Procedures for purchasing foreign used ships for dismantling

Enterprises engaged in ship dismantling that purchase foreign used ships for dismantling shall follow the steps below:

1. Approval of the policy to purchase foreign used ships for dismantling.

2. Selection of ships, determination of purchase prices, and related transaction costs.

3. Preparation and approval of the project to purchase foreign used ships for dismantling. The project includes contents on the necessity of investment, type of ship, quantity, basic technical specifications of the ship, estimated price of the ship, source of funds for purchasing the ship, form of purchase, plan for dismantling the ship, economic benefits, and other necessary contents.

4. Decision to purchase foreign used ships for dismantling.

Article 10. Authority to approve policies and decisions to purchase foreign used ships for dismantling

1. For state-owned enterprises or enterprises with state capital contributions, the authority to approve policies and decisions to purchase foreign used ships for dismantling shall be carried out in accordance with the provisions of Government Decree No. 99/2012/NĐ-CP dated November 15, 2012 on the division of responsibilities between the State and state-owned enterprises and state capital invested in enterprises, Government Decree No. 71/2013/NĐ-CP dated July 11, 2013 on state capital investment in enterprises and financial management of enterprises wholly owned by the State, and other relevant laws.

2. For enterprises without state capital, such decisions shall be made by the enterprise itself.

Article 11. Procedures for Importing Used Seagoing Vessels for Scrapping

1. Documents to be submitted when handling procedures for importing used seagoing vessels for scrapping shall include the following papers:

a) Permit for importing used seagoing vessels for scrapping (one original or certified copy);

b) Decision of the enterprise on purchasing foreign used seagoing vessels for scrapping (one original);

c) Purchase and sale contract for foreign used seagoing vessels (one original or certified copy);

d) Delivery record of foreign seagoing vessels (one original);

đ) Certificate of deregistration of seagoing vessels (one original or certified copy);

e) Document certifying the ownership status of seagoing vessels (one original);

g) Insurance policy for environmental damage compensation liability (one original or certified copy);

h) List of materials on board provided by the shipowner (one original);

i) Decision approving the scrapping plan for seagoing vessels (one original or certified copy).

2. Based on the import documents stipulated in Clause 1 of this Article, customs laws and other relevant legal provisions, the customs authority shall be responsible for handling the procedures for importing used seagoing vessels for scrapping.

Chapter III

CONDITIONS FOR OPERATING SEAGOING VESSEL SCRAPPING FACILITIES

1. In accordance with the approved planning for seagoing vessel scrapping facilities.

2. Possess material infrastructure, technical equipment, and human resources to ensure the scrapping of seagoing vessels.

3. Have documents as prescribed in Clause 2 of Article 14 of this Decree.

4. Be confirmed for environmental protection works serving operational phases and requirements of the decision approving the environmental impact assessment report, including contents related to seagoing vessel scrapping activities.

Article 13. Authority to Decide on Operating Seagoing Vessel Scrapping Facilities

1. The Director of the Vietnam Maritime Administration shall review the application documents for operating seagoing vessel scrapping facilities and submit them to the Ministry of Transport for a decision on operating seagoing vessel scrapping facilities.

2. The Minister of Transport shall decide on operating seagoing vessel scrapping facilities based on the review results and recommendations of the Director of the Vietnam Maritime Administration.

Article 14. Procedures for Deciding on Operating Seagoing Vessel Scrapping Facilities

1. Enterprises engaged in seagoing vessel scrapping shall directly submit or send through postal services or other appropriate means two sets of application documents for operating seagoing vessel scrapping facilities to the Vietnam Maritime Administration.

2. Application documents for operating seagoing vessel scrapping facilities shall include the following papers:

a) Request for operating seagoing vessel scrapping facilities according to Model No. 1 stipulated in Appendix II issued together with this Decree (one copy);

b) Business registration certificate (one original or certified copy);

c) Decision approving the environmental impact assessment report of the seagoing vessel scrapping facility (one original or certified copy);

d) Confirmation paper for environmental protection works serving operational phases (one original or certified copy);

đ) Registration certificate for hazardous waste generators (one original or certified copy);

e) Discharge permit into water sources (one original or certified copy);

g) Acceptance document regarding fire and explosion prevention plans (one original or certified copy);

h) Oil spill response plan approved by competent authorities (one original or certified copy);

i) Overall layout drawing of equipment arrangement at the seagoing vessel scrapping facility (one original or certified copy);

k) Declaration list of direct laborers participating in seagoing vessel scrapping activities (one original or certified copy);

l) List of safety equipment for labor protection (one original or certified copy);

m) Environmental management system certification (one original or certified copy).

3. The Vietnam Maritime Administration shall receive, inspect, and process the documents as follows:

a) In case of direct submission, if the documents are valid, issue a receipt and schedule a date to return the result within the prescribed time limit; if the documents are invalid, guide the enterprise to complete the documents;

b) In case of receiving documents through postal services or other appropriate means, if the documents are invalid, within two working days from the date of receipt, the Vietnam Maritime Administration shall issue a document guiding the enterprise to complete the documents according to regulations;

c) Within five working days from the date of receiving valid documents, the Vietnam Maritime Administration shall review and report in writing to the Ministry of Transport about the review results of the documents;

d) Not later than three working days from the date of receiving the review document and recommendation of the Vietnam Maritime Administration, the Ministry of Transport shall issue a decision on operating seagoing vessel scrapping facilities according to Model No. 2 stipulated in Appendix II issued together with this Decree; in case of non-approval, a reply document must be issued with clear reasons.

Article 15. Decision to Suspend Operations of Ship Recycling Facilities

1. The Ministry of Transport shall decide to suspend operations of ship recycling facilities in the following cases:

a) At the request of the ship recycling business due to the facility's inefficiency or other legitimate reasons;

b) The facility violates regulations on maritime safety, maritime security, labor safety, and environmental pollution prevention, as proposed by the competent state agency.

2. The decision to suspend operations of ship recycling facilities shall be made as follows:

a) The ship recycling business shall submit directly to the Vietnam Maritime Administration or send via postal service a document requesting suspension of the ship recycling facility's operations. Within three (3) working days from the date of receipt of the document requesting suspension of the ship recycling facility's operations, the Vietnam Maritime Administration shall report to the Ministry of Transport for a decision.

b) Within five (5) working days from the date of receipt of the document from the Vietnam Maritime Administration, the Ministry of Transport shall make a decision to suspend the operations of the ship recycling facility and notify the ship recycling business and relevant agencies.

3. Ship recycling facilities may also have to suspend operations according to other related legal provisions.

Article 16. Decision to Temporarily Suspend Operations of Ship Recycling Facilities

1. In cases where maritime safety, maritime security, environmental protection, or the ship recycling business does not comply with the approved ship recycling plan and other urgent reasons exist, the Director of the Vietnam Maritime Administration shall decide to temporarily suspend operations of the ship recycling facility upon proposal by the Port Maritime Office.

2. When the reasons for temporarily suspending the operations of the ship recycling facility have been resolved, the Director of the Vietnam Maritime Administration shall cancel the temporary suspension upon proposal by the relevant Port Maritime Office.

3. Immediately after deciding to temporarily suspend operations of the ship recycling facility or canceling the temporary suspension decision, the Director of the Vietnam Maritime Administration must report to the Ministry of Transport; simultaneously, notify the ship recycling business and specialized state management agencies in the area.

Chapter IV

SHIP RECYCLING PLAN

Article 17. Ship Recycling Plan

1. Prior to commencing ship recycling activities, the ship recycling business must prepare a ship recycling plan in accordance with Clause 2 of this Article and submit it to the Vietnam Maritime Administration for review and approval.

2. The ship recycling plan shall include the following main contents:

a) Information about the ship to be recycled: Name of the ship, nationality of the ship; name and address of the ship owner; technical characteristics of the ship and general layout drawings of the ship;

b) Information about the ship recycling facility: Name and address of the ship recycling business and the ship recycling facility, location drawings of the ship within the overall site plan of the ship recycling facility, equipment for recycling, recycling technology, and manpower;

c) Ship recycling plan including progress schedule for each specific project;

d) Safety measures for labor, environmental hygiene, and fire prevention and control;

e) Environmental protection plan during ship recycling activities confirmed by the state management agency for the environment in accordance with regulations;

3. The environmental protection plan during ship recycling activities must include emergency response plans for environmental incidents, plans for collecting, storing, transporting, and disposing of waste generated from ship recycling for each individual ship.

Article 18. Approval Procedure for Vessel Dismantling Plans

1. A vessel dismantling enterprise shall submit directly to the Vietnam Maritime Administration or send through the postal system or by other appropriate means one set of documents requesting approval of the dismantling plan for each vessel. The application documents for approval of the dismantling plan for each vessel include:

a) A request for approval of the vessel dismantling plan according to Model No. 3 stipulated in Appendix II attached to this Decree (one copy);

b) The vessel dismantling plan (one original copy).

2. The Vietnam Maritime Administration shall accept the documents, examine and process them as follows:

a) In cases where the documents are submitted directly, if the documents are valid, issue a receipt for the documents and schedule a date to return the result within the prescribed time limit; if the documents are not valid, guide the enterprise to complete the documents in accordance with regulations;

b) In case of receiving documents through postal services or other appropriate means, if the documents are invalid, within two working days from the date of receipt, the Vietnam Maritime Administration shall issue a document guiding the enterprise to complete the documents according to regulations;

c) Within two working days from the date of receiving valid documents, the Vietnam Maritime Administration shall be responsible for soliciting opinions from relevant agencies on the vessel dismantling plan. Within five working days from the date of receiving the request for opinion from the Vietnam Maritime Administration, relevant agencies must provide written responses;

d) Within three working days from the date of receiving opinions from relevant agencies, the Vietnam Maritime Administration must issue a decision approving the vessel dismantling plan according to Model No. 4 stipulated in Appendix II issued together with this Decree and deliver it directly to the vessel dismantling enterprise or send it through the postal system; in case of non-approval, the Vietnam Maritime Administration must provide a written response stating the reasons.

Article 19. Implementation of Vessel Dismantling Plans

1. A vessel dismantling enterprise must carry out vessel dismantling strictly in accordance with the approved vessel dismantling plan and report the results to the Vietnam Maritime Administration.

2. The maritime port authority shall take the lead and coordinate with relevant agencies to organize inspections and supervision of the implementation of the dismantling plan for each vessel.

3. Annually, the Ministry of Transport shall report to the Prime Minister on the situation of vessel dismantling in Vietnam.

Chapter V

IMPLEMENTING PROVISIONS

Article 20. Effective Date

This Decree takes effect from January 15, 2015.

Article 21. Responsibility for Implementation

1. The Ministry of Transport shall organize state management over the importation and dismantling of vessels; take the lead and coordinate with relevant ministries, sectors, and provincial-level People's Committees under the central government to implement this Decree; take the lead and coordinate with the Ministry of Natural Resources and Environment and related localities to determine, develop, and announce specific plans for dismantling facilities of used vessels.

2. The Ministry of Natural Resources and Environment shall organize state management over environmental protection in vessel dismantling activities; take the lead and coordinate with relevant ministries and sectors to guide on environmental liability insurance; coordinate with the Ministry of Transport to provide detailed guidance on confirming environmental protection plans in vessel dismantling activities.

3. The Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors to guide the implementation of taxes related to the importation and dismantling of used vessels.

4. Ministries, provincial-level People's Committees under the central government shall organize state management over the importation and dismantling of vessels in Vietnam based on their functions, tasks, and authorities as prescribed.

Article 22. Implementation organization

Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial-level People's Committees under the central government, organizations, units, and individuals concerned are responsible for implementing this Decree./.