DECREE

ON THE SEA-SHIPPING BUSINESS CONDITIONS

THE GOVERNMENT

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the June 30, 1990 Maritime Code of Vietnam;
Pursuant to the November 12, 1996 Law on Foreign Investment and the June 9, 2000 Law Amending and Supplementing a Number of Articles of the Law on Foreign Investment in Vietnam;
Pursuant to the April 20, 1995 State Enterprise Law;
Pursuant to the June 12, 1999 Enterprise Law;
Pursuant to the March 20, 1996 Cooperative Law;
At the proposal of the Minister of Communications and Transport,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope and objects of application

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2. Enterprises governed by this Decree include State enterprises; limited liability companies, joint-stock companies, partnerships, private companies, cooperatives and foreign-invested enterprises in the form of joint-venture.

Article 2.- Law application

1. Sea-shipping business activities in Vietnam must comply with the provisions of this Decree and other relevant legal documents of Vietnam as well as international agreements which Vietnam has signed or acceded to.

2. Where an international agreement which the Socialist Republic of Vietnam has signed or acceded to contains different provisions, the provisions of such international agreement shall apply.

3. For cases which have not yet been provided for by Vietnamese laws and international agreements, the involved parties may agree on the application of international practices thereto.

Article 3.- Interpretation of terms

In this Decree, the following phrases are construed as follows:

1. "Sea-shipping business" means the exploitation of sea-going ships by enterprises to transport goods, passengers and luggage along sea-shipping routes.

2. "Vietnamese ship owners" mean owners or hirers of sea-going ships which have been registered in Vietnam’s national sea-going ship registration book.

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4. "Overseas routes" mean maritime routes linking Vietnamese seaports with one or several foreign seaports and vice versa.

Article 4.- Freight rates

Shipping freight rates shall be agreed upon by the involved parties, except for cases otherwise provided for by law.

Chapter II

SEA-SHIPPING BUSINESS CONDITIONS

Article 5.- Conditions for enterprises

Sea-shipping business enterprises must meet all the following conditions:

1. Being Vietnamese ship owners.

2. Having signed written labor contracts with crew members and arranged adequate complement of each ship according to the regulations of the Minister of Communications and Transport.

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4. Having registered forms of shipping documents at Vietnam Maritime Bureau, if the enterprises use one or several papers referred to as shipping documents under Clause 3, Article 3 of this Decree.

5. For cases of transportation on overseas routes, apart from the conditions mentioned in Clauses 1, 2 and 3 of this Article, the enterprises must have a "compatibility certificate" issued by Vietnam Registry Department according to the regulations of the Minister of Communications and Transport on the basis of the International Safety Management Code promulgated by the International Maritime Organization.

6. Sea-going ships must have all the following papers:

a/ A sea-going ship registration certificate, issued by Vietnam Maritime Bureau;

b/ Technical safety certificates and oil and bilge pollution prevention certificates, issued by Vietnam Registry or a foreign registry office authorized by Vietnam Registry;

c/ A permit for use of the ship’s radio as prescribed;

d/ For transportation on overseas routes, apart from the conditions mentioned at Points a, b and c, Clause 6 of this Article, sea-going ships must have "safety management certificates" issued by Vietnam Registry Department according to the regulations of the Minister of Communications and Transport on the basis of the International Safety Management Code promulgated by the International Maritime Organization.

7. Officers and crew members working on Vietnamese sea-going ships must possess all the following qualification certificates suited to their titles according to the regulations of the Minister of Communications and Transport:

a/ A professional qualification certificate;

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c/ A professional training certificate;

d/ A special training certificate.

Article 6.- Other conditions

In the course of conducting sea-shipping business activities, besides complying with the conditions prescribed in Article 5 of this Decree, the enterprises shall, when transporting goods which require permits, transport these goods only after they obtain such permits.

Chapter III

SUPERVISION, INSPECTION, COMPLAINT, DENUNCIATION AND HANDLING OF VIOLATIONS

Article 7.- Supervision and inspection of sea-shipping business activities

1. The Minister of Communications and Transport shall be responsible for organizing the inspection and supervision of sea-shipping business activities and handle violations according to the provisions of law.

2. The supervision and inspection contents cover the observance of the law provisions on sea-shipping business and the compliance with registrations committed with the competent State bodies.

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Enterprises may lodge complaints and denunciations or initiate lawsuits at courts against State bodies or individuals acts of violating their rights according to law provisions.

Article 9.- Handling of violations

Organizations and individuals that violate the provisions of this Decree shall, depending on the nature and seriousness of their violations, be disciplined, administratively sanctioned or examined for penal liability; if causing damage, they shall have to pay compensations therefor according to law provisions.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 10.- Implementation effect

1. This Decree takes effect 15 days after its signing.

2. To repeal the provisions on ocean shipping at Point d, Clause 1 and Point e, Clause 2, Article 13 of the Government’s Decree No. 16/CP of February 21, 1997 on the transformation and registration of cooperatives and the operation organization of the Unions of Cooperatives.

Article 11.- Transition provisions

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2. Enterprises currently engaged in sea-shipping business which fail to meet all the conditions prescribed in this Decree must satisfy all the prescribed conditions within 90 days after this Decree takes effect.

Article 12.- Implementation provision

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities as well as concerned organizations and individuals shall have to implement this Decree.

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Phan Van Khai