DECREE

REGARDING BUSINESS CONDITIONS FOR MARITIME SERVICE PROVISION

THE GOVERNMENT

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

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of application

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1. Sea-ship agency service;

2. Sea-transport agency service;

3. Maritime brokerage service;

4. Sea-ship supply service;

5. Goods inspection and counting service;

6. Sea towage service;

7. Services for sea-ship repairs at ports;

8. Sea-ship cleaning service;

9. Services for cargo loading and unloading at ports.

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Enterprises of all economic sectors, which fully meet the conditions prescribed in this Decree, may provide assorted maritime services mentioned in Article 1 above. For enterprises with foreign investment capital, the capital contributed by the Vietnamese party must not be lower than 51%; particularly for two kinds of services: sea ship agency service and sea towage service, only enterprises with 100% domestic investment capital may provide them.

Article 3.- Applicable laws and international treaties

1. Enterprises providing maritime services must abide by the provisions of this Decree, Vietnamese laws and relevant international treaties which the Socialist Republic of Vietnam has signed or acceded to.

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

Chapter II

MARITIME SERVICE ACTIVITIES

Article 4.- Sea ship agency service

The sea ship agency service means the service for performing the following jobs under the ship owners authorization:

1. Carrying out procedures for ships to enter and leave ports with competent bodies;

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3. Providing necessary information to parties related to ships, cargo and passengers, preparing documents and papers on cargo and passengers, arranging the delivery of goods to consignees;

4. Carrying out ship-related customs and border-gate procedures as well as procedures for cargo handling and/or passengers embarkation and/or disembarkation;

5. Collecting and/or paying on behalf of ship owners freight, damages, reward money, ship release fines and other sums;

6. Arranging the supply for sea ships at ports;

7. Signing contracts for ship charter, carrying out procedures for hand over of ships and crews;

8. Signing contracts for cargo transport or handling;

9. Carrying out procedures relating to maritime disputes;

10. Settling other matters as authorized.

Article 5.- Sea transport agency service

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1. Organizing and carrying out works in service of the process of goods transport, delivery and reception, passengers and luggage transport on the basis of sea transport contracts or multi-mode transport contracts;

2. Leasing, renting on behalf of goods owners sea transport means, loading and unloading equipment, warehouses, wharves and yards, piers and other special-use maritime equipment;

3. Acting as container agents

4. Settling other matters as authorized.

Article 6.- Maritime brokerage service

The maritime brokerage service means the service for performing the following tasks:

1. Acting as intermediary in signing contracts for cargo, passenger and luggage transport;

2. Acting as intermediary in signing maritime insurance contracts;

3. Acting as intermediary in signing ship lease contracts, ship purchase/sale contracts, towage contracts, crew hiring contracts;

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Article 7.- Sea-ship supply service

The sea-ship supply service means the service for performing the following tasks related to sea ships:

1. Supplying sea ships with food, foodstuff, fresh water, materials, equipment, fuel, lubricant, wedging, lining and/or partitioning materials;

2. Providing services for daily-life needs, health care, entertainment and recreation of passengers and crews, organizing the departure, arrival, entry, exit and/or change of crews.

Article 8.- Goods inspection and counting service

The goods inspection and counting service means the service for inspecting and counting the actual quantity of goods upon the delivery and reception thereof with sea ships or other means under the entrustment of goods consignors, goods consignees or carriers.

Article 9.- Sea ship towage service

Sea ship towage service means the service for operation of towing, tugging, pushing or supporting sea ships and other floating means on sea or water areas relating to sea ports where sea ships are allowed to enter, leave and/or operate.

Article 10.- Sea-ship repairing service at ports

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Article 11.- Sea-ship cleaning service

The sea-ship cleaning service means the service for gathering and treating garbage, discharge oils and other wastes discharged from sea- ships while anchorage or mooring at ports.

Article 12.- Cargo handling service at sea ports

The cargo handling service at sea ports means the service for cargo loading and unloading at ports according to the technological process for loading and unloading each kind of goods.

Chapter III

CONDITIONS ON MARITIME SERVICE BUSINESS

Article 13.- Conditions on sea-ship agency service business

Enterprises may provide sea-ship agency services when meeting all the following conditions:

1. The enterprises directors have directly performed the sea-ship agency operations for at least 2 (two) years;

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a) Having graduated from the maritime university or the foreign trade university or having performed sea-ship agency-related operations for at least 3 (three) years;

b) Having certificates of the professional qualifications for sea-ship agency operations, granted by the Maritime Agency and Brokerage Association;

3. The enterprises always have the credit balance of at least 1 (one) billion VN dong in their deposit accounts at banks established and operating under Vietnamese laws or have purchased the occupational liability insurance for sea-ship agency activities.

Article 14.- Conditions on sea transport agency service business

Enterprises may provide sea transport agency services when meeting all the following conditions:

1. The enterprises directors have directly performed the sea transport agency operations for at least 2 (two) years;

2. The agency staff members fully meet the following conditions:

a) Having graduated from the maritime university or the foreign trade university, or having performed the sea- transport agency service operations for at least 3 (three) years;

b) Having certificates of professional qualifications for sea transport agency service operations, granted by the Forwarding Association;

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Article 15.- Conditions on maritime brokerage service business

Enterprises may provide maritime brokerage services when meeting all the following conditions:

1. The enterprises directors have directly performed the maritime operations for at least 2 (two) years;

2. The maritime brokers have graduated from the maritime university or the foreign trade university or have performed the maritime operations for at least 3 (three) years.

Article 16.- Conditions on sea-ship supply service business

Enterprises may provide sea-ship supply services when meeting all the following conditions:

1. The enterprises directors have directly performed the sea-ship supply operations for at least 2 (two) years;

2. The sea-ship suppliers have graduated from the maritime schools or trade schools of intermediate or higher level, or have performed the maritime operations for at least 3 (three) years;

3. The goods items supplied to sea ships must fully satisfy the law-prescribed standards.

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Enterprises may provide goods inspection and counting services when meeting all the following conditions:

1. The enterprises directors have directly performed the goods inspection and counting operations for at least 2 (two) years;

2. The goods inspectors and counters have graduated from schools of intermediate or higher level, or have performed the maritime operations for at least 3 (three) years.

Article 18.- Conditions on sea-ship towage service business

Enterprises may provide sea-ship towage services when meeting all the following conditions:

1. The enterprises directors have directly performed the sea- ship towage for at least 2 (two) years;

2. The crew members working on towage ships have the professional certificates of maritime operations as prescribed by law;

3. The enterprises have their towage ships registered in Vietnam, which satisfy the technical safety requirements as prescribed by law;

4. The enterprises have purchased insurance for the towage ship owners civil liability and for crew members.

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Enterprises may provide services for sea-ship repair at ports when meeting all the following conditions:

1. The enterprises directors have directly performed the sea-ship repair operations for at least 2 (two) years;

2. Having enough means, equipment and personnel that satisfy the requirements prescribed by law.

Article 20.- Conditions on sea-ship cleaning service business

Enterprises may provide sea-ship cleaning services when meeting all the following conditions:

1. The enterprises directors have directly performed the sea-ship cleaning operations for at least 2 (two) years;

2. Having enough means, equipment and personnel that satisfy the requirements prescribed by law.

3. Having plans for treatment of garbage, discharged oil, wastes and the environmental impact assessment reports approved by competent State bodies;

Article 21.- Conditions on cargo-handling service business

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1. The enterprises directors have directly performed the cargo loading and unloading operations for at least 2 (two) years;

2. Having loading and unloading means, equipment and instruments which satisfy the technical safety standards, and the contingent of loading and unloading workers meeting the prescribed requirements.

Chapter IV

EXAMINATION, INSPECTION, COMPLAINTS, DENUNCIATIONS AND HANDLING
OF VIOLATIONS

Article 22.- Examination and inspection of maritime service business activities

1. The Ministry of Communications and Transport shall have to organize the inspection and examination of maritime service business activities and handle violations according to its competence.

2. The inspection and examination contents shall cover the observance of law provisions on maritime service business and the making of committed registrations with competent State bodies.

3. The examination and inspection of enterprises in their maritime service business must comply with the provisions of law.

Article 23.- Complaints and denunciations

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Article 24.- 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; where damage is caused, compensation therefor must be made according to law provisions.

Chapter V

IMPLEMENTATION PROVISIONS

Article 25.- Implementation provisions

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

The previous regulations contrary to the provisions of this Decree shall all be annulled.

2. Enterprises which have conducted the maritime service business before this Decree takes effect may continue their operations, but have to satisfy all the prescribed business conditions within 180 (one hundred and eighty) days as from the date this Decree takes effect.

3. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the Peoples Committees of the provinces and centrally-run cities shall have to implement this Decree.

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ON BEHALF OF THE GOVERNMENT
PRIME MINISTER




Phan Van Khai