Decree No. 39/1998/NĐ-CP On the Handling of Sunken Assets in the Sea

DECREE OF THE GOVERNMENT

On the handling of sunken assets in the sea

THE GOVERNMENT

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

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

Based on the Civil Code dated October 28, 1995;

Considering the proposal of the Minister of Transport,

DECREE:

PART I
GENERAL PROVISIONS

Article 1.

1. This Decree specifies the detailed handling of sunken assets in the sea.

2. The handling of sunken assets in the sea shall be carried out in accordance with the provisions of this Decree, other relevant laws of Vietnam, and international treaties to which the Socialist Republic of Vietnam is a party. In case an international treaty to which the Socialist Republic of Vietnam is a party provides different provisions, such treaty's provisions shall apply.

Article 2. Sunken assets in the sea referred to in this Decree include various types of ships, goods, or other objects, regardless of origin, value, characteristics, form of ownership, and time of sinking within internal waters, territorial seas, contiguous zones, floating on the sea, or washing ashore on the coast of Vietnam.

Article 3.

1. The owner of sunken assets has the obligation to salvage sunken assets. In cases where the owner of sunken assets does not carry out the salvage operation or fails to complete it within the required timeframe, the competent state agency specified in Article 4 of this Decree shall decide on the salvage of such assets.

2. The owner of sunken assets shall bear all costs related to the salvage operation. In cases where the sunken asset is a ship owned by a Vietnamese shipowner as stipulated in Clause 1, Article 177 of the Vietnamese Maritime Code, the owner of the asset shall only be responsible for paying the costs related to the salvage operation up to the actual value of the salvaged asset. The remainder shall be paid from maritime security fees.

3. The manager or operator of sunken assets must jointly bear responsibility before competent state agencies for the salvage of sunken assets and must pay all costs related to the salvage operation.

4. In cases where sunken assets cause environmental pollution, the owner of the assets must compensate for damages caused by such pollution according to the provisions of the law.

Article 4.

1. The Minister of Transport is responsible for leading and coordinating with provincial people's committees and relevant ministries and sectors to organize the handling of sunken ships and other sunken assets that pose danger or obstruct maritime activities, port operations, and marine resource exploitation, threaten human life and health, and cause environmental pollution.

2. Provincial people's committees are responsible for leading and coordinating with the Ministry of Transport and relevant ministries, sectors, and localities to organize the handling of other types of sunken assets not covered under Clause 1 of this Article.

3. Assets salvaged that are related to national security or have value for preserving national cultural heritage and historical assets must be reported to relevant ministries prior to their disposal.

Article 5. Any organization or individual with sunken assets or involved in the discovery, salvage, preservation, and resolution of sunken assets in the sea must fulfill their rights and obligations as prescribed in this Decree and other relevant laws of Vietnam. If there are achievements, they will be rewarded; if there are violations, they will be dealt with according to the law.

PART II
IDENTIFICATION OF OWNERSHIP OF SUNKEN ASSETS IN THE SEA

Article 6.

1. Depending on the type of sunken assets as stipulated in Clauses 1 and 2 of Article 4 of this Decree, the owner or manager, operator of the assets, the discoverer, or the person who accidentally salvages sunken assets must immediately notify the nearest maritime port authority or the People's Committee of the commune, ward, town (hereinafter collectively referred to as the People's Committee of the commune) of the nearest location.

Upon receiving the notification, the Director of the maritime port authority or the Chairman of the People's Committee of the commune must take necessary measures to protect and manage the sunken assets and report to the Vietnam Maritime Administration or the People's Committee of the district, city district, town, or city directly under the province (hereinafter collectively referred to as the People's Committee of the district) to report to the Ministry of Transport or the provincial People's Committee.

2. In cases where sunken assets are located in military areas, the owner or manager, operator of the assets, the discoverer, or the person who accidentally salvages sunken assets in military areas must also notify according to the provisions of Clause 1 of this Article. The agency receiving the notification, in addition to performing its duties, must also notify the nearest military agency.

Article 7.

1. Within seven days from the date of receipt of the report, the Vietnam Maritime Administration or the provincial People's Committee must identify the owner of the discovered sunken assets.

a) Where there are documents recording the name and address of the owner of the sunken assets, the Vietnam Maritime Administration or the provincial People's Committee must notify the owner of the assets at that address.

b) Where sunken assets in the sea have not yet identified the owner, the Vietnam Maritime Administration or the provincial People's Committee must publish three consecutive notices in central newspapers or local newspapers.

2. Within sixty days from the date of the last notice, the owner of the sunken assets or the lawful representative of the owner as provided by Vietnamese law must contact the notifying agency to complete the procedures to reclaim the assets.

Beyond the aforementioned period, the assets will be disposed of according to the provisions of Articles 17, 18, and 19 of this Decree.

Article 8. Notices seeking the owner of sunken assets must contain the following main contents:

1. Description of the characteristics and features of the sunken assets;

2. Time, place, and circumstances of discovering or salvaging the sunken assets;

3. Deadline and address where the owner or the person authorized by the owner must come to complete the procedures to reclaim the assets;

4. Address of the notifying agency for the owner of the assets to contact promptly to resolve the matter.

Article 9. Costs for identifying the owner of sunken assets shall be included in the costs related to the salvage of sunken assets.

CHAPTER III
SALVAGE OF SUNKEN ASSETS IN THE SEA

Article 10. Responsibilities of The Director of the Vietnam Maritime Administration related to the salvage of sunken assets in the sea:

1. Shall submit to the Minister of Transport for approval of the anticipated completion date of the salvage operation of sunken assets as stipulated in Clause 2, Article 175 of the Vietnamese Maritime Code.

2. Develop a plan to be submitted to the Minister of Transport for a decision on organizing the salvage of submerged assets at sea as prescribed in Clause 3, Article 175 and Clause 1, Clause 2, Article 177 of the Vietnam Maritime Code.

3. Organize the salvage of submerged assets at sea as prescribed in Clause 1, Article 4 of this Decree pursuant to the authorization of the Minister of Transport.

Article 11. The Chairman of the People's Committee of the province shall have the responsibility to decide the time limit and organize the salvage of submerged assets that do not fall under the types of submerged assets prescribed in Clause 1, Article 4 of this Decree.

Article 12.

1. The Minister of National Defense or the head of the military agency authorized by the Minister of National Defense shall issue permits for the salvage of submerged assets in military areas and the salvage of military equipment.

2. In cases where military equipment is sunk outside military areas but poses danger or impedes maritime activities, port operations, and marine resource exploitation, endangers human life and health, or causes marine environmental pollution, the issuance of permits for salvage and the organization of salvage of submerged assets as prescribed in Clause 1 of this Article must be carried out within the time limit specified by the Minister of Transport.

Article 13. In cases where Vietnamese organizations and individuals cannot carry out the salvage of submerged assets at sea, the Minister of Transport shall decide to allow organizations and individuals to cooperate with foreign entities to perform such tasks in accordance with current laws.

PART IV
PRESERVATION AND DISPOSITION OF SUBMERGED ASSETS AT SEA

Article 14. Organizations and individuals who randomly salvage submerged assets shall be responsible for preserving those assets until they are handed over to the competent authority as stipulated in Article 6 of this Decree. The handover of assets must be recorded in writing as provided for in Article 15 of this Decree.

The Marine Port Office or the People's Committee of the commune shall be responsible for designating persons or agencies with authority to receive and preserve such assets.

Article 15.

1. The handover document for submerged assets at sea must include the following main contents:

a) Name and address of the organization or individual handing over the submerged asset;

b) Name and address of the organization or individual receiving the submerged asset;

c) Time, location, and circumstances related to the discovery or salvage of the submerged asset;

d) Description of the characteristics, features, and necessary information about the submerged asset.

2. The handover document for submerged assets must be signed and confirmed by the authorized representatives of both the handing-over party and the receiving party. The Marine Port Office or the People's Committee of the commune shall be responsible for sending the handover document for submerged assets to the Vietnam Maritime Administration or the People's Committee of the district concerned.

3. The handover document for submerged assets must be prepared in three copies: each party retains one copy and sends one copy to the Vietnam Maritime Administration or the People's Committee of the district.

Article 16. In cases where the submerged asset is military equipment, immediately after completing the reception procedures, the Marine Port Office or the People's Committee of the commune must transfer the asset to the local military agency for storage and disposition in accordance with the law.

Article 17.

1. If the submerged asset is export or import goods floating on the sea or drifting onto the coast, then after receiving the asset, the Marine Port Office or the People's Committee of the commune must report to the nearest customs authority to coordinate in handling the matter in accordance with the law on customs.

2. If the submerged asset discovered or salvaged is an antique or historical-cultural relic, the Vietnam Maritime Administration or the People's Committee of the district must report to the Ministry of Transport or the People's Committee of the province and the Ministry of Culture, Sports and Tourism to coordinate in handling the matter in accordance with the law.

3. If the submerged asset is a ship or an asset that is not an antique or historical-cultural relic but has significant value, the Minister of Transport or the People's Committee of the province shall cooperate with relevant agencies to handle the asset in accordance with current laws and report the results to the Prime Minister.

Article 18.

1. When the owner of the asset does not pay the related expenses within the notified deadline, the Director of the Vietnam Maritime Administration or the People's Committee of the province may decide to auction the asset in accordance with the law. After settling the salvage costs, preservation costs of the asset, auction organization costs, and other reasonable related costs, any remaining amount (if any) shall be transferred to a temporary account at the Vietnam Bank and the owner of the asset shall be informed. After 180 days from the date of notification, if the owner of the asset does not claim the remaining amount, it will be deposited into the state budget along with accrued interest.

2. If the proceeds from the auction are insufficient to cover the costs mentioned in Clause 1 of this Article, the owner of the asset shall be obligated to pay the shortfall. The Vietnam Maritime Administration or the People's Committee of the province shall notify the owner of the asset and proceed with the procedures as stipulated by law if the owner fails to fulfill their payment obligation.

3. In cases where the owner of the submerged asset prescribed in Clause 1, Article 4 of this Decree cannot be identified, and the proceeds from the auction of salvaged assets are insufficient to cover the costs mentioned in Clause 1 of this Article, it is permissible to use revenue from maritime security fees to offset the shortfall.

Article 19. In cases where the owner of the submerged asset does not request the return of the asset or cannot be identified according to Articles 7 and 8 of this Decree, the asset shall belong to the ownership of the State of Vietnam.

CHAPTER V
IMPLEMENTING PROVISIONS

Article 20. This Decree takes effect 15 days after its promulgation. Previous regulations contrary to this Decree are abolished.

Article 21. Ministers, Heads of ministerial-level agencies, agencies under the Government, Chairmen of Provincial People's Committees, and Directors of the Vietnam Maritime Administration are responsible for implementing this Decree./.