Decree No. 160/2016/ND-CP on Conditions for Marine Transport Business, Ship Agency Services, and Towage Services

DECREE

On Conditions for Operating Sea Transport and Providing Ship Agency Services and Towage Services

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PURSUANTPursuant to the Law on Government Organization on June 19, 2015;

Pursuant to the Maritime Code of Vietnam dated November 25, 2015;

Pursuant to the Enterprise Law dated November 26, 2014;

Pursuant to the Investment Law on November 26 year 2014;

Pursuant to the Law on Cooperatives dated November 20, 2012;

Pursuant to the Commercial Law dated June 14, 2005;

THE GOVERNMENT ENACTS THIS DECREE ON THE REGULATIONS ON THE ORGANIZATION AND OPERATIONS OF VIETNAM RAILWAY CORPORATION.The Governor of the State Bank of Vietnam issues a Circular amending and supplementing certain legal normative documents concerning administrative procedures and formalities in the field of foreign exchange management.”

The Government promulgates the Decree on conditions for operating sea transport and providing ship agency services and towage services.ai dắt tàu biển.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates conditions for operating sea transport and providing ship agency services and towage services.

Article 2. Applicability

This Decree applies to organizations and individuals involved in operating sea transport, providing ship agency services and towage services in Vietnam.

Article 3. Explanation of Terms

In this Decree, the following terms shall be understood as follows:

1. Operating sea transport means using ships to operate cargo and passenger transportation.

2. International sea transport means transporting goods, passengers, and luggage by ship between Vietnamese seaports and foreign seaports or between foreign seaports.

Chapter II

CONDITIONS FOR OPERATING SEA TRANSPORT

1. A business entity operating sea transport shall be established and operated in accordance with the laws on enterprises, and a cooperative operating sea transport shall be established and operated in accordance with the laws on cooperatives (hereinafter referred to as the enterprise).

2. It shall be granted a Certificate of Eligibility for Operating Sea Transport when meeting the conditions prescribed in Articles 5 and 6 of this Decree.

1. Organizational structure conditions

a) Having a safety management department in accordance with the International Safety Management Code (ISM Code);

b) Having a maritime security management department in accordance with the International Ship and Port Facility Security Code (ISPS Code);

c) Having a department managing business operations and marine transport exploitation;

d) Having a department performing legal affairs work.

2. Financial conditions: Must have a guarantee from a credit organization or a foreign bank branch to ensure the ship owner's obligations towards crew members; the minimum guarantee amount is five billion Vietnamese dong.

3. Vessel conditions: Must have at least one ship; if the ship flies the Vietnamese flag, it must comply with the National Technical Regulations issued by the Minister of Transport.

4. Human resource conditions

a) The person responsible for the safety and maritime security management system must be trained, instructed, and certified according to the regulations of the Minister of Transport;

b) The person responsible for the department managing business operations and marine transport exploitation must have a college degree or higher in one of the following majors: maritime, foreign trade, commerce, or economics;

c) The person responsible for the department performing legal affairs work must have a college degree or higher in law;

d) Seafarers working on ships must meet all professional standards, health standards, and obtain professional certificates as prescribed. Vietnamese seafarers must meet all professional standards, obtain professional certificates prescribed by the Minister of Transport; and meet health standards prescribed by the Minister of Health.

1. Organizational structure conditions: Must have a department managing business operations and sea transportation activities.

2. Financial conditions: Must have a guarantee from a credit organization or a foreign bank branch to ensure the ship owner's obligations towards seafarers; the minimum guarantee amount is 500 million Vietnamese dong.

3. Vessel conditions: Must have at least one Vietnamese-flagged sea vessel that complies with the national technical standards issued by the Minister of Transport.

4. Human resource conditions

a) The person responsible for the department managing business operations and sea transportation activities must hold a college degree or higher in one of the following majors: maritime, international trade, commerce, or economics.

b) Seafarers working on sea vessels must meet all professional standards, health standards, and be granted a professional certificate according to regulations. Vietnamese seafarers working on sea vessels must meet all professional standards, be granted a professional certificate as prescribed by the Minister of Transport, and comply with health standards set by the Minister of Health.

Article 7. Conditions for foreign organizations participating in domestic transportation using Vietnamese-flagged vessels

1. Foreign organizations participating in domestic sea transportation using Vietnamese-flagged vessels must establish a joint venture company in accordance with regulations, where the proportion of foreign investor's capital contribution does not exceed 49% of the charter capital of the enterprise.

2. Foreign seafarers permitted to work on Vietnamese-flagged sea vessels or sea vessels registered in Vietnam owned by joint ventures in Vietnam shall not exceed one-third of the crew complement of the vessel; simultaneously, the captain or chief officer of such sea vessel must be a Vietnamese citizen.

1. The application dossier for the Certificate of Eligibility for Sea Transport Business includes:

a) Application form for the Certificate of Eligibility for Sea Transport Business according to Form No. 01 prescribed in the Appendix attached to this Decree: 01 copy;

b) List of positions along with the relevant certificates and diplomas of each position as specified in Clause 1 of Article 5 and Clause 1 of Article 6 of this Decree: 01 certified copy from the original book or a certified copy from the original or a copy accompanied by the original for verification;

c) Guarantee letter from a credit organization or a foreign bank branch as stipulated in Clause 2 of Article 5 or Clause 2 of Article 6 of this Decree: 01 original;

d) Certificate of Registration of Sea Vessel: 01 copy accompanied by the original for verification.

2. The enterprise applying for the Certificate of Eligibility for Sea Transport Business submits one set of application dossier directly or through the postal system or by other appropriate means to the Vietnam Maritime Administration.

3. The Vietnam Maritime Administration receives the application dossier. In case the dossier is incomplete, within two working days from the date of receipt, the Vietnam Maritime Administration issues a written guide for the enterprise to complete the dossier in accordance with this Decree; if the dossier is complete, it issues a receipt for the dossier.

4. Within five days from the date of receiving a complete and valid dossier, the Vietnam Maritime Administration reviews the dossier, issues the Certificate of Eligibility for Sea Transport Business, and delivers the result directly or through the postal system; in case the Certificate of Eligibility for Sea Transport Business is not issued, the Vietnam Maritime Administration must provide a written response and specify the reasons.

5. The Certificate of Eligibility for Sea Transport Business is issued according to Form No. 02 prescribed in the Appendix attached to this Decree.

1. The Certificate of Eligibility for Marine Transport Business shall be reissued in the following cases:

a) The Certificate of Eligibility for Marine Transport Business is lost, torn, or damaged;

b) There is a change in the contents recorded in the Certificate of Eligibility for Marine Transport Business.

2. Procedures and formalities for reissuance

a) In case the Certificate of Eligibility for Marine Transport Business is lost, torn, or damaged:

The marine transport business enterprise shall submit to the Vietnam Maritime Administration one Application Form for Reissuance according to Model No. 01 stipulated in the Appendix issued together with this Decree. The Vietnam Maritime Administration shall base on the stored files to reissue the Certificate of Eligibility for Marine Transport Business to the enterprise.

b) In case there is a change in the contents of the Certificate:

The marine transport business enterprise shall submit to the Vietnam Maritime Administration one Application Form for Reissuance according to Model No. 01 stipulated in the Appendix issued together with this Decree and related documents concerning the change in the contents of the Certificate of Eligibility for Marine Transport Business. The Vietnam Maritime Administration shall carry out the procedures for reissuance as if it were issuing a new Certificate of Eligibility for Marine Transport Business in accordance with Clause 3 and Clause 4, Article 8 of this Decree.

3. The marine transport business enterprise shall bear responsibility for the accuracy and truthfulness of the information related to the application for reissuance of the Certificate of Eligibility for Marine Transport Business.

4. The reissued Certificate of Eligibility for Marine Transport Business must clearly state the cancellation of the previously issued Certificate of Eligibility for Marine Transport Business.

1. The Certificate of Eligibility for Marine Transport Business shall be revoked in the following cases:

a) Enterprises or cooperatives violate the conditions for marine transport business to the extent that revocation is required under the laws on administrative violations in the maritime sector;

b) At the request of competent state agencies.

2. The Vietnam Maritime Administration shall issue a decision to revoke and notify relevant agencies and publish information about enterprises whose Certificate of Eligibility for Marine Transport Business has been revoked on the Vietnam Maritime Administration's electronic portal.

Chapter III

CONDITIONS FOR OPERATING MARINE AGENCY SERVICES

Article 11. Conditions for Operating Marine Agency Services

A business enterprise operating marine agency services in Vietnam must be established in accordance with the law. In the case of a foreign-invested enterprise operating marine agency services, the proportion of foreign investors' capital contribution shall not exceed 49% of the charter capital of the enterprise.

1. There must be a dedicated person responsible for conducting and managing marine agency services who has graduated from a college level or higher in one of the following majors: maritime, international trade, commerce, or economics.

2. There must be a dedicated person responsible for legal affairs who has graduated from a college level or higher in law.

3. Marine agency service staff must be Vietnamese citizens, having obtained a professional certificate for marine agency services issued by the competent authority according to the regulations of the Minister of Transport.

Chapter IV

BUSINESS CONDITIONS FOR SHIP TOWING SERVICES

1. A business operating ship towing services in Vietnam must be established in accordance with the provisions of the law. In the case of a foreign-invested enterprise operating ship towing services, the proportion of foreign investors' capital contribution shall not exceed 49% of the charter capital of the enterprise.

2. There must be at least one towing vessel; the towing vessel must be a Vietnamese vessel and meet technical standards prescribed by the Minister of Transport.

Article 14. Conditions regarding organizational structure and human resources

1. There must be a specialist responsible for operating and exploiting ship towing services who has graduated from a college level or higher in one of the following majors: maritime, international trade, commerce, or economics.

2. There must be a dedicated person responsible for legal affairs who has graduated from a college level or higher in law.

Article 15. Conditions for foreign organizations using foreign-flagged vessels to operate ship towing services in Vietnam

1. Foreign organizations may only use foreign-flagged vessels to operate ship towing services in Vietnam when Vietnamese-flagged towing vessels do not meet the required conditions as prescribed. Annually, the Ministry of Transport will notify about the capacity of Vietnamese-flagged towing vessel fleets.

2. Foreign-flagged towing vessels must fully comply with legal regulations concerning maritime safety, security, and environmental protection.

4. Foreign organizations must have towing contracts with Vietnamese towing service clients.

5. Foreign organizations must have branches, representative offices, or authorized Vietnamese towing enterprises in Vietnam.

Chapter V

IMPLEMENTING PROVISIONS

Article 16. Responsibilities of the Ministry of Transport

1. Guide and implement the provisions of this Decree.

2. Organize inspections and checks on compliance with the provisions of this Decree.

Article 17. Responsibilities of businesses

1. Operate in accordance with the purpose and content recorded in the certificate issued by the competent authority.

2. Maintain conditions as prescribed in this Decree.

3. Provide information related to their marine transportation business operations, agency services for ships, and towing services when requested in writing by the competent authority.

1. Businesses that have been granted a Marine Transportation Business License before the effective date of this Decree shall continue to operate according to the term of the License; upon expiration of the License, they must complete procedures to obtain a Certificate of Eligibility for Marine Transportation Business Operations as prescribed in this Decree.

2. For businesses operating marine transportation before the effective date of this Decree but without a Marine Transportation Business License, they must fully meet the conditions to obtain a Certificate of Eligibility for Marine Transportation Business Operations as prescribed in this Decree by no later than July 1, 2019.

3. Businesses providing agency services for ships and towing services established before the effective date of this Decree shall continue to operate; starting from July 1, 2019, these businesses must fully meet the conditions for operating agency services for ships and towing services as prescribed in this Decree.

Article 19. Effective Date

1. This Decree takes effect from July 1, 2017.

2. Repeal Decree No. 30/2014/NĐ-CP dated April 14, 2014 of the Government on conditions for operating marine transportation services and supporting marine transportation services.

3. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees, and related organizations and individuals are responsible for implementing this Decree./.