Circular No. 253/1998/TT-BGTVT guiding the implementation of Government Decree No. 40/1998/NĐ-CP dated June 10, 1998 on marine transportation business of companies and private enterprises.

 

CIRCULAR

Guidelines for Implementing Decree No. 40/1998/NĐ-CP dated June 10, 1998 of the Government on the Business of Sea Transportation of Companies and Private Enterprises
Regarding the business of sea transportation of companies and private enterprises

 

On June 10, 1998, the Government issued Decree No. 40/1998/NĐ-CP on the business of sea transportation of companies and private enterprises;

Pursuant to Article 17 of the Decree, the Ministry of Transport hereby provides detailed guidance on certain matters as follows:

I. ISSUANCE OF LICENSE FOR SEA TRANSPORTATION BUSINESS:

1. For newly established companies and private enterprises:

a. Based on the conditions for conducting sea transportation business on domestic maritime routes or international maritime routes stipulated in Articles 5 and 6 of Decree No. 40/1998/NĐ-CP of the Government (hereinafter referred to as the Decree), organizations and individuals establishing a company or a private enterprise engaged in sea transportation must prepare a dossier and submit it to the People's Committee of the province where the main office is located for the People's Committee of the province to review and issue a written request to the Ministry of Transport to grant permission to conduct sea transportation business. The dossier includes:

- A set of establishment dossier for the company or private enterprise in accordance with the provisions of the Enterprise Law or the Private Enterprise Law. This includes the business plan and articles of association (for companies) or the business plan (for private enterprises).

- A written request from the provincial People's Committee to the Ministry of Transport requesting approval to issue a license for sea transportation business;

- Minutes of the capital contribution approved by the Board of Directors of the company, clearly stating the capital contribution in cash and the value of assets contributed (for companies) or a certificate from the Bank regarding the amount of Vietnamese dong, foreign currency, and gold of the enterprise owner and minutes of the valuation council of initial investment assets in kind by the enterprise owner with confirmation from a notary public (for private enterprises). This capital must not be lower than the statutory capital stipulated in Article 5 or Article 6 of the Decree;

- Documents certifying the trading premises of the company or private enterprise;

- Certified copies of professional certificates and language proficiency certificates of the management and operation personnel and the Chief Accountant, confirmed by administrative agencies or notarized according to the law;

- Resumes of the management and operation personnel, confirmed by local authorities.

b. The procedures and process for granting permission to conduct business, issuing the Establishment License and registering for sea transportation business for companies or private enterprises shall be carried out in accordance with the provisions of Article 8 of the Decree.

2. For companies and private enterprises already permitted to conduct sea transportation business on domestic maritime routes, now supplementing the business of sea transportation on international maritime routes:

a. Based on the conditions for conducting sea transportation business on international maritime routes stipulated in Articles 6 and 10 of the Decree, companies and private enterprises already permitted to conduct sea transportation business on domestic routes must prepare a dossier and submit it to the provincial People's Committee where the main office is located for the provincial People's Committee to review and issue a written request to the Ministry of Transport for permission.

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

- A written request from the provincial People's Committee to the Ministry of Transport requesting approval to supplement the business of sea transportation on international maritime routes;

- A certified copy of the Establishment License of the company or private enterprise and the Business Registration Certificate, confirmed by the competent authority;

- A request to supplement the business of sea transportation on international maritime routes accompanied by a revised business plan and articles of association (for companies) or a business plan (for private enterprises);

- Minutes of the capital contribution approved by the Board of Directors of the company, clearly stating the capital contribution in cash and the value of assets contributed (for companies) or a certificate from the Bank regarding the amount of Vietnamese dong, foreign currency, and gold of the enterprise owner and minutes of the valuation council of initial investment assets in kind by the enterprise owner with confirmation from a notary public (for private enterprises). This capital must not be lower than the statutory capital stipulated in Article 6 of the Decree;

- Documents certifying the trading premises of the company or private enterprise;

- Certified copies of professional certificates and language proficiency certificates of the management and operation personnel and the Chief Accountant, confirmed by administrative agencies or notarized according to the law;

- Resumes of the management and operation personnel, confirmed by local authorities;

- A written statement from the financial authority confirming the fulfillment of financial obligations to the State in the previous fiscal year by the company or private enterprise.

b. The procedure for granting permission to supplement the business of sea transportation on international maritime routes for companies and private enterprises shall be carried out in accordance with the provisions of Article 8 of the Decree.

3. Regarding the professional qualifications and language proficiency stipulated in Articles 5 and 6 of the Decree:

a. The professional qualifications of the management and operation personnel are:

Graduation from a maritime secondary school or higher and at least three years of work experience in the marine transportation industry for domestic maritime routes, five years or more for coastal international maritime routes;

Graduation from a maritime university or higher and at least five years of work experience in the marine transportation industry for near-sea international maritime routes and deep-sea international maritime routes.

b. The necessary English proficiency for conducting sea transportation business on international maritime routes is at least level B to handle routine transactions and deal with common business documents in English, such as bills of lading, certificates, letters, telegrams, etc., for coastal international maritime routes, and at least level C for near-sea international maritime routes and deep-sea international maritime routes.

II. ISSUANCE OF "LICENSE FOR MARITIME ACTIVITY":

1. All privately-owned vessels as defined in Article 2 of the Decree (hereinafter referred to as vessels) wishing to operate sea transportation on any maritime route must obtain a "License for Maritime Activity" in accordance with the model attached to this Circular.

A ship hired by a company or private enterprise for business purposes, in accordance with its business registration and registered in the "National Register of Ships", shall be treated as a ship owned by such company or private enterprise.

2. The "Maritime Operation Permit" of a ship shall be issued based on safety technical conditions, ship classification, crew, insurance, and business registration certificate of the ship owner as stipulated in Article 10 of the Decree.

3. The "Maritime Operation Permit" does not replace the certificates regarding technical condition and ship classification issued by the inspection authority of Vietnam or other inspection authorities authorized by the inspection authority of Vietnam (hereinafter referred to as the inspection authority).

4. The "Maritime Operation Permit" shall only be granted to ships of companies and private enterprises that have the function of operating maritime transport services on specified routes as provided in Article 4 of the Decree, specifically as follows:

Domestic maritime route for ships inspected, classified, and certified by the inspection authority with operational limitations signs III or higher (which may include additional distance limitations clearly stated in parentheses following the operational limitation sign).

International coastal maritime route for ships inspected, classified, and certified by the inspection authority with operational limitations signs II or higher, or ships with operational limitations signs III having specific international maritime routes consistent with their ship classification.

Near-sea international maritime route for ships inspected, classified, and certified by the inspection authority with operational limitations signs I or higher.

Far-sea international maritime route for ships inspected, classified, and certified by the inspection authority to operate in unrestricted waters.

5. Validity period of the "Maritime Operation Permit":

The validity period of the "Maritime Operation Permit" issued for each ship must comply with the provisions of Article 10 of the Decree but shall not exceed the validity period recorded in the "Seaworthiness Certificate" issued by the inspection authority.

6. Procedures for issuing the "Maritime Operation Permit" for ships shall be carried out in accordance with the provisions of Article 11 of the Decree.

7. The Vietnam Maritime Administration shall issue the "Maritime Operation Permit" for ships. In necessary cases, the Vietnam Maritime Administration may delegate subordinate management agencies to carry out the issuance, but it remains responsible for the issuance.

III. ISSUANCE OF PERMITS FOR PRIVATE ENTERPRISES AND PRIVATE SHIPS ENGAGED IN MARITIME TRANSPORTATION PRIOR TO THE EFFECTIVE DATE OF THE DECREE:

1. All companies, private enterprises, and private ships engaged in maritime transportation prior to June 25, 1998, must apply for a permit for maritime transportation business in accordance with the provisions of the Decree.

The deadline for applying for a permit for maritime transportation business as stipulated in Article 17 of the Decree is 365 days, starting from June 25, 1998.

After June 25, 1999, if the companies, private enterprises, and ships mentioned herein do not reapply according to the provisions of the Decree, they will be dealt with according to current laws.

2. Documents for applying for a permit for maritime transportation business for the companies and private enterprises mentioned herein shall include the documents as prescribed in Section 2 Part I of the Circular.

3. Procedures for applying for a permit for maritime transportation business for the companies and private enterprises:

- The People's Committee of the province sends a letter and application documents to the Ministry of Transport requesting approval to issue a permit for maritime transportation business for the company or private enterprise;

- The People's Committee of the province bases its decision to maintain, supplement, or revoke the company establishment permit of the company or private enterprise on the approval or non-approval document of the Ministry of Transport for the company or private enterprise to engage in maritime transportation business.

4. Regarding the issuance of the "Maritime Operation Permit" for ships:

a. The Vietnam Maritime Administration shall base on the documents prescribed in Part II of the Circular to issue the "Maritime Operation Permit" for ships.

b. If the People's Committee of the province maintains the company establishment permit of the company or private enterprise, then the Vietnam Maritime Administration shall base on the documents prescribed in Part II of the Circular and the approval document of the Ministry of Transport allowing the company or private enterprise to engage in maritime transportation business to issue the "Maritime Operation Permit" for ships.

IV. IMPLEMENTATION ORGANIZATION:

This Circular takes effect 15 days from the date of signature.

2. Chairmen of provincial and centrally-run city People's Committees, functional departments, heads of specialized management agencies, Directors of Provincial Departments of Transport (Transport and Public Works Departments), and related organizations and individuals are responsible for implementing this Circular.

MINISTRY OF TRANSPORTATION SOCIALIST REPUBLIC OF VIETNAM

VIETNAM COAST GUARD 

Independence - Freedom - Happiness

 

 MARITIME OPERATION PERMIT ROUTE…(AS PROVIDED IN ARTICLE 4 OF THE DECREE)

DIRECTOR OF THE VIETNAM MARITIME ADMINISTRATION

Pursuant to Decree No. 40/1998/NĐ-CP dated June 10, 1998 of the Government on the operation of maritime transportation by private companies and enterprises;

Pursuant to Circular No. 253/1998/TT-BGTVT dated August 15, 1998 of the Minister of Transport;

Pursuant to the Establishment Permit of Private Company/Enterprise No... dated... month... year... of the People's Committee of the province/city...; Pursuant to Business Registration Certificate No... dated... month... year...

 

Pursuant to …;

Permitting the vessel:... Call Sign:...

Length:...(m), Width:...(m), Draft:...(m),

Gross Tonnage:...(GRT), Main Engine Power:...(CV)

Of...

Head Office:...

Tel:...Fax:...

Permitted to operate on the route:...

Purpose of operation: Marine cargo transportation business

This permit is valid from day... to day..., day... month... year...

 

DIRECTOR OF THE VIETNAM MARITIME ADMINISTRATION

 No.:.../GP-CHHVN