Decree No. 55/1998/ND-CP On Handling Goods Held in Vietnam by Sea Carriers

DECREE

Regarding the handling of goods stored in Vietnam by the sea carrier

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THE GOVERNMENT

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

Based on the Maritime Code of Vietnam dated June 30, 1990;

Considering the proposal of the Minister of Transport,

DECREE:

Article 1. This Decree stipulates the procedures and formalities for handling goods stored in Vietnam by the sea carrier to ensure payment of freight charges, compensation for vessel detention, and other expenses related to the transportation of such goods as specified in Article 96 of the Vietnamese Maritime Code (hereinafter referred to as "stored goods").

Article 2.

1. The carrier has the right to store and handle stored goods in the following cases:

a) The charterer or consignee has not paid all or has not provided adequate security for the payment of all freight charges, compensation for vessel detention, and other reasonable expenses related to the transportation of such goods (hereinafter referred to as "debts"). The carrier may only retain the quantity of goods whose value guarantees the full payment of debts and expenses as prescribed in Clause 1, Article 8 of this Decree, except for specific consignments with special characteristics.

b) There is no consignee.

c) The consignee refuses to accept the goods or delays unloading.

d) Multiple parties present original bills of lading, delivery orders, or equivalent transport documents of value to claim the goods.

2. The right to handle stored goods arises after sixty (60) days from the date the carrier sends the first notice of storage. In cases where stored goods are perishable, likely to cause environmental pollution, affect national defense, or where storing the goods is excessively costly compared to their actual value, the carrier may handle the stored goods earlier than the prescribed period but must still comply with the notification requirements set forth in Article 3 of this Decree.

3. The carrier who stores and handles stored goods as prescribed in this Decree (hereinafter referred to as "the custodian") shall be fully responsible under the law for the legality of the storage and handling of such stored goods.

Article 3.

1. Upon implementing the storage of goods, the custodian must notify in writing the charterer or consignee about the storage of goods and the intention to sell the goods to offset debts.

2. After thirty (30) days from sending the first notice, if the custodian does not receive a response from the charterer or consignee or does not receive full payment of debts, the custodian must publish a notice three (3) times consecutively in central or provincial daily newspapers (hereinafter referred to as "provincial level").

3. After sixty (60) days from sending the first notice, if the custodian still has not received full payment of debts, the custodian has the right to enter into a power of attorney contract for the auction of stored goods with the Auction Service Center under the Department of Justice or a professional auction service organization managed by the Department of Justice (hereinafter referred to as "the auctioneer").

Article 4. The auction of stored goods shall be carried out according to the "Regulations on Auctioning Assets" issued together with Decision No. 86/CP dated December 19, 1996 of the Government and the provisions of this Decree.

Article 5.

1. In cases where stored goods are prohibited from importation or circulation within the territory of Vietnam, the importer of such goods and the goods themselves must be handled according to current laws. The auction of such stored goods can only be conducted after obtaining permission from the competent state agency.

2. In cases where stored goods are subject to conditional importation (or require quotas), before entering into a power of attorney contract for the auction, the custodian must obtain an import permit from the Ministry of Commerce.

Article 6. Before entering into a power of attorney contract for the auction of stored goods, the custodian must engage an appraisal of the quality of the stored goods. Appraisal costs are included in the expenses related to the auction of the goods.

Article 7. The starting price of stored goods is determined by the auctioneer based on consultation with the custodian. The record of the starting price determination of stored goods must be kept in the auction file.

Article 8.

1. All proceeds from the auction of stored goods shall be deposited into the "Management and Custody Account" of the custodian at the Vietnam Bank.

Payment of these funds shall be made in the following priority order:

a) Taxes, fees, and expenses related to storage and auction;

b) Debts owed to the custodian;

c) Reasonable expenses incurred due to the storage of goods.

2. Payment of the funds as stipulated in Clause 1 of this Article must be supported by valid documentation in accordance with the state's financial accounting regulations.

3. Any remaining funds after paying the amounts specified in Clause 1 of this Article shall be retained in the "Management and Custody Account" to be returned to the rightful claimant.

4. In cases where the proceeds from the auction of stored goods are insufficient to cover the amounts specified in Clause 1 of this Article, the custodian has the right to continue demanding full payment from the relevant parties.

Article 9.

1. Within three (3) days from the completion of the payment of the proceeds from the auction of stored goods as prescribed in Article 8 of this Decree, the custodian must notify the charterer or consignee about the payment of the proceeds from the auction of stored goods. Immediately after sending this notice, the custodian must publish a notice three (3) times consecutively in central or provincial daily newspapers. If there is any surplus amount, it must clearly specify the surplus amount and the temporary account number at the bank.

2. In cases where the person entitled to receive the surplus amount requests its return, the custodian must pay it to the requesting party.

3. After one hundred eighty (180) days from the date the custodian notifies as prescribed in Clause 1 of this Article, if no one claims the surplus amount or someone claims it but is not the rightful claimant, the custodian shall have the obligation to deposit that amount into the state budget at the State Treasury of the province or centrally-administered city where the storage of goods occurred.

In the case where the Person requesting to receive money does not accept the excess amount from the Custodian, they have the right to request the competent court to protect their legitimate rights and interests. When the court decides to recognize the excess amount as the legitimate right of the person requesting to receive money, the Custodian must submit a written request to the financial authority and the State Treasury for refund of the amount already paid to return to the legitimate person requesting to receive money.

Article 10. In the case where multiple persons have the right to receive the excess amount specified in Clause 2, Article 9 of this Decree, the excess amount shall be divided according to the corresponding proportion of their rights.

Article 11. Complaints, accusations, complaint resolution, accusation resolution, and handling violations of the provisions of this Decree shall be carried out in accordance with current laws.

Article 12. This Decree also applies to the handling of goods stored in Vietnam by foreign organizations or individuals as Sea Carriers, except where Vietnamese law or international treaties to which Vietnam is a party provide otherwise.

Article 13. This Decree takes effect fifteen days from the date of signature.

The Minister of Transport and the Minister of Justice are responsible for organizing the implementation of this Decree.

Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree.