Decree No. 163/2017/NĐ-CP on logistics services business

DECREE

Regulations on the operation of logistics services

On the basis of The Law on Archives dated November 11, 2011;

On the basis of The Commercial Law dated June 14, 2005;

On the basis of The Investment Law dated November 26, 2014;

At the proposal of the Minister of Industry and Trade,

The Government promulgates this Decree to regulate the operation of logistics services.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the conditions for operating logistics services and the limitation of liability for traders operating logistics services.

Article 2. Applicability

This Decree applies to traders operating logistics services and related organizations and individuals.

Article 3. Classification of logistics services

Logistics services provided include:

1. Container handling services, except services provided at airports.

2. Container storage services under maritime transportation support services.

3. Storage services under transportation support services for all modes.

4. Courier services.

5. Transportation agency services.

6. Customs clearance agency services (including customs clearance services).

7. Other services, including the following activities: Bill of lading inspection, cargo transportation brokerage, goods inspection, sampling and weight determination services; cargo receipt and acceptance services; preparation of transport documents.

8. Wholesale and retail support services, including inventory management, collection, consolidation, classification of goods, and delivery.

9. Maritime cargo transportation services.

10. Inland waterway cargo transportation services.

11. Rail cargo transportation services.

12. Road cargo transportation services.

13. Air cargo transportation services.

14. Multimodal transportation services.

15. Technical analysis and inspection services.

16. Other transportation support services.

17. Other services agreed upon by logistics service traders and customers in accordance with the basic principles of the Commercial Law.

Chapter II
CONDITIONS FOR OPERATING LOGISTICS SERVICES AND LIMITATION OF LIABILITY FOR TRADERS OPERATING LOGISTICS SERVICES

Article 4. Conditions for operating logistics services

1. Traders operating specific logistics services as defined in Article 3 of this Decree must meet the investment and business conditions prescribed by law for such services.

2. Traders conducting part or all of their logistics business through electronic means connected to the Internet, mobile telecommunications networks, or other open networks, in addition to meeting the conditions prescribed by law for the specific services defined in Article 3 of this Decree, must also comply with regulations on electronic commerce.

3. Conditions for foreign investors operating logistics services:

In addition to meeting the conditions and provisions set forth in Clause 1 and Clause 2 of this Article, foreign investors from countries or territories that are members of the World Trade Organization providing logistics services shall be subject to the following conditions:

a) In the case of operating maritime cargo transportation services (excluding domestic transportation):

- They may establish companies operating flag-of-convenience vessels registered in Vietnam or invest in, purchase shares, or contribute capital to enterprises, where the proportion of foreign investor's capital contribution does not exceed 49%. The total number of foreign seafarers working on vessels flying the flag of Vietnam (or registered in Vietnam) owned by these companies in Vietnam shall not exceed one-third of the vessel's crew complement. The captain or first officer must be a Vietnamese citizen.

- Foreign shipping companies may establish enterprises or invest in, purchase shares, or contribute capital to enterprises.

b) In the case of operating container handling services under maritime transportation support services (which may designate certain areas to provide such services or apply permit procedures in those areas), they may establish enterprises or invest in, purchase shares, or contribute capital to enterprises, where the proportion of foreign investor's capital contribution does not exceed 50%. Foreign investors are permitted to establish commercial presence in Vietnam in the form of a joint venture contract.

c) In the case of operating container handling services under transportation support services for all modes, excluding services provided at airports, they may establish enterprises or invest in, purchase shares, or contribute capital to enterprises, where the proportion of foreign investor's capital contribution does not exceed 50%.

d) In the case of operating customs clearance services under maritime transportation support services, they may establish enterprises or invest in, purchase shares, or contribute capital to enterprises, where there must be capital contributions from domestic investors. Foreign investors are permitted to establish commercial presence in Vietnam in the form of a joint venture contract.

đ) In the case of operating other services, including the following activities: Bill of lading inspection, cargo transportation brokerage, goods inspection, sampling and weight determination services; cargo receipt and acceptance services; preparation of transport documents, they may establish enterprises or invest in, purchase shares, or contribute capital to enterprises, where there must be capital contributions from domestic investors.

e) In the case of operating inland waterway cargo transportation services, rail cargo transportation services, they may establish enterprises or invest in, purchase shares, or contribute capital to enterprises, where the proportion of foreign investor's capital contribution does not exceed 49%.

g) In the case of operating road cargo transportation services, it can be carried out through a joint venture contract or they may establish enterprises or invest in, purchase shares, or contribute capital to enterprises, where the proportion of foreign investor's capital contribution does not exceed 51%. All drivers of the enterprise must be Vietnamese citizens.

h) In the case of operating air cargo transportation services, it shall be carried out in accordance with laws on aviation.

i) In the case of operating technical analysis and inspection services

- For services provided to exercise the authority of the Government carried out in the form of a business with domestic investor capital contributions within three years or in the form of a business without limitations on foreign investor capital contributions within five years, from the date the private service provider is permitted to operate such services.

- Shall not engage in inspection and certification services for transportation vehicles.

- The provision of analytical and technical inspection services shall be restricted in geographic areas determined by the competent authority for reasons of national defense security.

4. In cases where foreign investors subject to international treaties with different provisions regarding conditions for operating logistics services may choose to apply investment conditions stipulated in one of those treaties.

Article 5. Liability Limitation

1. Liability limitation is the maximum limit that a trader operating logistics services must compensate customers for losses arising during the organization and implementation of logistics services as prescribed in this Decree.

2. Where relevant laws provide for liability limitations for traders operating logistics services, such provisions shall be implemented in accordance with the relevant laws.

3. Where relevant laws do not specify liability limitations, the liability limitation for traders operating logistics services shall be agreed upon by the parties. In case the parties have no agreement, it shall be implemented as follows:

a) Where the customer does not notify in advance the value of the goods, the maximum liability limitation is VND 500 million for each compensation claim.

b) Where the customer has notified in advance the value of the goods and such notification has been confirmed by the trader operating logistics services, the liability limitation shall not exceed the value of the goods.

4. The liability limitation for cases where a trader operating logistics services organizes the implementation of multiple stages with different liability limitations shall be the highest liability limitation among those stages.

Chapter III
IMPLEMENTING PROVISIONS

Article 6. Transitional Provisions

A trader operating logistics services who has been registered and licensed to provide logistics services before the effective date of this Decree shall continue to operate according to the registration and licensing content.

Article 7. Effective Date

1. This Decree takes effect from February 20, 2018.

2. Decree No. 140/2007/NĐ-CP dated September 5, 2007 detailing the Law on Trade concerning conditions for operating logistics services and liability limitations for traders operating logistics services shall cease to be effective from the date this Decree takes effect.

Article 8. Implementation organization

1. The Ministry of Industry and Trade shall be responsible for implementing this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, and chairpersons of provincial people's committees directly under the central government are responsible for implementing this Decree./.