Decree No. 49/2006/ND-CP on Registration and Purchase and Sale of Seagoing Vessels

DECREE

Regarding registration and purchase, sale of ships

________

THE GOVERNMENT

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

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

Considering the proposal of the Minister of Transport.

DECREE

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates on the registration and purchase, sale of ships.

2. The provisions of this Decree shall not apply to the following cases of ship purchase and sale:

a) Ships purchased and sold domestically;

b) Ships newly built in Vietnam by Vietnamese enterprises under contracts;

c) Foreign ships sold at auction in Vietnam pursuant to a decision of a competent state agency for compulsory enforcement.

3. The provisions of this Decree also apply to the registration and purchase, sale of public service vessels.

Article 2. Applicability

This Decree applies to Vietnamese organizations and individuals and foreign organizations and individuals related to the registration and purchase, sale of ships.

Chapter II

SHIP REGISTRATION

Section 1

VIETNAMESE SHIP REGISTRATION AUTHORITY

Article 3. Ship Registration Authorities of Vietnam

The ship registration authorities of Vietnam include national ship registration authorities and regional ship registration authorities.

1. The national ship registration authority is the Vietnam Maritime Administration.

2. The Director of the Vietnam Maritime Administration decides that the regional ship registration authority is the Maritime Branch Office or the Port Shipping Authority.

Article 4. Tasks of the National Ship Registration Authority

1. Directing and inspecting the activities of ship registration in Vietnam at regional ship registration authorities.

2. Compiling, statistics, maintaining, and updating databases related to ship registration and mortgage registration activities; providing relevant information to interested organizations and individuals.

3. Uniformly managing the printing and issuance of ship registration certificates and mortgage registration certificates.

4. International cooperation in ship registration.

5. Perform other tasks as prescribed.

Article 5. Tasks of Regional Ship Registration Authorities

1. Implementing ship registration and mortgage registration within their scope and authority.

2. Establishing and managing the National Ship Register in the assigned region; providing relevant information to interested organizations and individuals.

3. Collecting, remitting, and using registration fees and mortgage registration fees according to regulations.

4. Statistics, reporting, and updating databases related to ship registration and mortgage registration activities.

5. Perform other tasks as prescribed.

Section 2

VIETNAMESE SHIP REGISTRATION

Article 6. Forms of Ship Registration in Vietnam

1. Ship registration includes indefinite registration, limited-term registration, re-registration, and change registration.

a) Indefinite registration is the registration of ships that meet the conditions to be issued a Certificate of Registration of Vietnamese Ships;

b) Limited-term registration is the registration of ships for a specific period; limited-term registration applies to foreign ships leased by Vietnamese organizations and individuals under bareboat charter or purchase lease contracts, or foreign ships registered for a limited term in Vietnam;

c) Re-registration is the registration of ships that were previously registered in the National Ship Register but have since suspended registration;

d) Change registration is the registration of ships already registered in the National Ship Register but with changes in ship name or owner, structure, technical specifications, regional ship registration authority, or ship survey organization.

2. Temporary ship registration is the registration of ships in the following cases:

a) Not yet paying fees as prescribed;

b) In the absence of a Certificate of Cancellation of Ship Registration but with a commitment in the ship purchase and sale contract that the Seller will deliver the Certificate of Cancellation of Ship Registration to the Buyer within thirty days from the date of the handover memorandum. In this case, the Certificate of Temporary Registration of Vietnamese Ships is only valid from the date both the Buyer and Seller sign the handover memorandum;

c) Testing a newly built ship or receiving a newly built ship for delivery to the place of registration based on a shipbuilding contract;

d) Special cases prescribed by the Minister of Transport.

The Certificate of Temporary Registration of Vietnamese Ships provided for in this clause has a validity of 180 days from the date of issue; in cases of force majeure, the Minister of Transport shall decide.

Article 7. Temporary Permit to Fly the Flag of Vietnam

In cases where organizations or individuals of Vietnam purchase foreign ships in accordance with Clause 2, Article 6 of this Decree but have not yet registered temporary ships in Vietnam, the diplomatic missions or consular offices of Vietnam abroad shall issue a Temporary Permit to Fly the Flag of Vietnam for bringing the ship back to the country.

Article 8. Age Limit for First-Time Ship Registration in Vietnam

1. For initial registration in Vietnam, used ships must meet the age requirement calculated from the year of construction as follows:

a) Passenger ships not older than 10 years;

b) Other types of ships not older than 15 years.

In special cases decided by the Minister of Transport, but not exceeding five years for each type of ship specified in Points a and b of this Clause.

2. Ships sold at auction in Vietnam pursuant to a compulsory decision by an authorized agency shall not be subject to the ship age requirements stipulated in Clause 1 of this Article.

Article 9. Naming Ships and Registration Ports

1. The ship name is set by the ship owner but must not duplicate any existing ship name registered in the National Ship Register of Vietnam.

2. If the ship name is derived from historical figures or events in Vietnam, it must be approved by the regional ship registration authority in accordance with regulations.

3. The ship owner selects a port of registry for their ship based on the name of a port within the jurisdiction of the regional ship registration authority.

Article 10. Documents for Ship Registration

1. Unlimited Registration

Documents submitted by the ship owner to the regional ship registration authority include the following:

a) Application for ship registration according to Appendix I;

b) Certificate of deregistration of the ship or handover certificate for newly built ships;

c) Contract of transfer of ship ownership or shipbuilding contract or other legally equivalent evidences;

d) Certificate of ship tonnage;

đ) Copy of invoice for fees and charges paid;

e) Copy of Classification Certificate of the ship;

g) Copy of Business Registration Certificate or copy of Establishment License of branch or representative office in Vietnam.

2. Limited Registration

Documents submitted by the ship owner to the regional ship registration authority include the following:

a) Documents specified in Points a, d, e, g of Clause 1 of this Article;

b) Certificate of temporary suspension of registration;

c) Copy of lease-purchase agreement or bareboat charter contract.

3. Re-registration

Documents submitted by the ship owner to the regional ship registration authority include those specified in Points a, d, e, g of Clause 1 and Point b of Clause 1 or Point b of Clause 2 of this Article.

4. Change Registration

a) Change of ship name:

Documents submitted by the ship owner to the regional ship registration authority include a statement detailing the reasons for changing the ship name.

b) Change of ship owner:

Documents submitted by the ship owner to the regional ship registration authority include those specified in Point a, c, đ, g of Clause 1 of this Article.

c) Change of ship structure and technical specifications:

Documents submitted by the ship owner to the regional ship registration authority include a statement detailing the reasons for changing the ship structure and technical specifications, accompanied by relevant Safety Technical Certificates issued by the classification society.

d) Change of regional ship registration authority:

Documents submitted by the ship owner to the regional ship registration authority include a statement detailing the reasons for transferring the regional ship registration authority.

đ) Change of ship classification society:

Documents submitted by the ship owner to the regional ship registration authority include a statement detailing the reasons for transferring the ship classification society and documents specified in Point d, e of Clause 1 of this Article.

Article 11. Documents for Temporary Registration of Ships and Issuance of Temporary Permit to Fly the Flag of Vietnam

1. Temporary Registration of Ships

a) In case of non-payment of fees and charges:

The shipowner shall submit to the ship registration authority in the region the documents specified in points a, b, c, d, e, and g of Clause 1, Article 10 of this Decree.

b) In case of non-payment of fees and charges and absence of Certificate of Erasure of Ship Registration:

The shipowner shall submit to the ship registration authority in the region the documents specified in points a, c, d, e, and g of Clause 1, Article 10 of this Decree.

c) In case of testing newly-built ships or receiving newly-built ships to be registered at the place of registration based on shipbuilding contracts:

The shipowner shall submit to the ship registration authority in the region the documents specified in points a, c, d, e, and g of Clause 1, Article 10 of this Decree. In case of receiving newly-built ships to be registered, additional documents specified in point b of Clause 1, Article 10 of this Decree must also be submitted.

2. Temporary Permit to Fly the Flag of Vietnam: The shipowner must comply with the provisions of Clause 1 of this Article.

Article 12. Documents for Registration of Ships Under Construction

The shipowner shall submit to the ship registration authority in the region the following documents:

1. The documents specified in points a and g of Clause 1, Article 10 of this Decree.

2. Shipbuilding contract.

3. Confirmation that the ship has been placed on the main keel by the shipyard.

Article 13. Documents for Registration of Small Ships

1. A small ship is a ship with a main engine power under 75 kW, a ship without a main engine but with a total tonnage under 50 GT or a carrying capacity under 100 tons or a designed waterline length under 20 meters.

2. Documents for Registration of Small Ships

The shipowner shall submit to the ship registration authority in the region the following documents:

a) The documents specified in points a, b, c, đ, and g of Clause 1, Article 10 of this Decree;

b) Logbook of technical safety inspection of ships.

Article 14. Documents for Erasure or Suspension of Ship Registration

The shipowner shall submit to the ship registration authority in the region the following documents:

1. Application for suspension or erasure of ship registration according to Appendix II.

2. Certificate of Registration of Vietnamese Ships; if not applicable, the reason must be clearly stated.

3. Approval for erasure of registration from the mortgagee of the ship according to Clause 2, Article 20 of the Vietnam Maritime Code.

Article 15. Issuance of Ship Registration Certificates

1. The ship registration authority in the region shall issue the following certificates:

a) Certificate of Registration of Vietnamese Ships according to Appendix III;

b) Certificate of Suspension or Erasure of Registration of Vietnamese Ships according to Appendix IV;

c) Certificate of Time-limited Registration of Vietnamese Ships according to Appendix V;

d) Certificate of Temporary Registration of Vietnamese Ships according to Appendix VI;

đ) Certificate of Registration of Vietnamese Ships Under Construction according to Appendix VII.

2. The ship registration authority in the region shall reissue the Certificate of Registration of Vietnamese Ships according to the old registration number and note "reissued" for cases of loss, damage, or deterioration.

3. The ship registration authority in the region shall be responsible for issuing the certificates specified in Clauses 1 and 2 of this Article within the latest five working days from the date of receipt of complete and valid documents.

Section 3

REGISTRATION OF MORTGAGE ON VIETNAMESE SHIPS

Article 16. Place of Registration of Mortgage on Vietnamese Ships

Vietnamese ships shall be registered for mortgage at the ship registration authority in the region where the ship is registered.

Article 17. Documents for registering mortgage on Vietnamese ships

The documents for registering mortgage on Vietnamese ships submitted by the ship owner or the mortgagee to the ship registration authority shall include the following papers:

1. Application for registering mortgage on ships according to Appendix VIII.

2. Ship mortgage contract.

Article 18. Documents for canceling registration of mortgage on Vietnamese ships

The documents for canceling registration of mortgage on Vietnamese ships submitted by the ship owner or the mortgagee to the ship registration authority shall include the following papers:

1. Application for canceling registration of mortgage on ships according to Appendix IX.

2. Certificate of registration of mortgage on Vietnamese ships according to Appendix X.

3. Written consent to cancel the mortgage on ships by the mortgagee.

Article 19. Issuing Certificate of Registration of Mortgage on Vietnamese Ships or Certificate of Cancellation of Registration of Mortgage on Vietnamese Ships

The ship registration authority must record the registration of mortgage or cancellation of registration of mortgage in the National Ship Register of Vietnam immediately upon receipt of complete and valid documents, and within three working days issue the Certificate of Registration of Mortgage on Vietnamese Ships or Certificate of Cancellation of Registration of Mortgage on Vietnamese Ships according to Appendix XI.

Section 4

REGISTRATION OF SHIPS FLYING FLAGS OF FOREIGN STATES BY ORGANIZATIONS AND INDIVIDUALS OF VIETNAM

Article 20. Registration of ships flying flags of foreign states

Ships owned by organizations or individuals of Vietnam may be registered to fly flags of foreign states in the following cases:

1. Ships operating under bareboat charter contracts or purchase charter contracts signed between one party being an organization or individual of Vietnam and another party being an organization or individual of a foreign state.

2. Other cases decided by the Minister of Transport.

Chapter III

PURCHASE AND SALE OF SHIPS

Article 21. Procedures and authorities for establishing projects and deciding on purchase and sale of ships

The procedures and authorities for establishing projects and deciding on purchase and sale of ships shall be carried out in accordance with the laws on investment.

Article 22. Forms of purchasing and selling ships

Purchasing and selling ships using state funds shall be conducted through competitive bidding.

Article 23. Conditions for importing ships

1. Ships imported for use must meet the following conditions:

a) Meeting the conditions for registering Vietnamese ships as stipulated in Article 16 of the Vietnam Maritime Code and this Decree;

b) Being inspected and confirmed by the Vietnam Registry to have a technical condition suitable for maritime safety requirements and environmental protection measures as prescribed by Vietnamese law and relevant international conventions; in case the inspection and determination of the technical condition of the ship are carried out by independent foreign surveyors, such inspections must be confirmed by the Vietnam Registry;

c) Having a Decision on purchasing or selling ships issued by the competent authority.

2. Ships imported for scrapping must meet the following conditions:

a) Not to be repaired, converted, or restored for other purposes;

b) Having a scrapping plan, fire prevention measures, and environmental protection measures approved by the competent authority.

c) Having a Decision on purchasing or selling ships issued by the competent authority.

Article 24. Procedures for exporting and importing ships

Based on the decision on purchasing or selling ships, the ship purchase and sale contract, and the handover certificate, the customs authority is responsible for handling the export and import procedures for ships.

Chapter IV

IMPLEMENTING PROVISIONS

Article 25. Effectiveness of Implementation

1. This Decree shall take effect fifteen days from the date of publication in the Official Gazette and shall repeal Government Decree No. 91/CP dated August 23, 1997 on the issuance of the Regulations on Ship Registration and Seafarers, Government Decree No. 23/2001/NĐ-CP dated May 30, 2001 on amending and supplementing certain articles of the Regulations on Ship Registration and Seafarers issued together with Government Decree No. 91/CP dated August 23, 1997, and Government Decree No. 99/1998/NĐ-CP dated November 28, 1998 on the management of ship purchases and sales.

2. Eleven appendices are promulgated together with this Decree.

3. Certificates and permits related to ship registration and purchase and sale of ships that have been issued to ships under the Decrees mentioned in Clause 1 of this Article shall remain valid for use.

Article 26. Implementation

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government shall be responsible for implementing this Decree.