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| THE NATIONAL ASSEMBLY | SOCIALIST REPUBLIC OF VIET NAM |
| No. 42-LCT/HDNN8 | Ha Noi, June 30th, 1990 |
A sea-going vessel under the terms of the present Code is any floating structure self-propelled or non self-propelled employed in navigation on the sea and in waters connected with the sea.
2. Depending on each specific case, the relevant laws of Vietnam are applicable to legal relations incident to maritime shipping activities which are not provided for in the present Code.
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1. All the provisions of the present Code are applicable to sea-going vessels employed exclusive for the carriage of cargo or of passengers and luggage; for exploration, exploitation and processing of the wealth of sea; for towage or salvage on the sea; for recovering property sunk in the sea; or for other activities of an economic nature, which hereinafter are referred to as merchant sea-going vessels.
2. The provisions on the carriage of cargo and of passengers and luggage, on the maritime arrest and lien, on the limitation of civil liability of shipowners are not applicable to sea-going vessels hereinafter referred to as state-service vessels employed exclusively for maritime navigation safety; meteorology-hydrography; telecommunication; inspection; customs; epidemic prevention; fire-fighting; piloting; training; environmental protection; or for search and rescue at sea.
3. The provisions on the carriage of cargo and of passengers and luggage, and on general average are not applicable to sea-going vessels employed exclusively for scientific technological research and sports.
4. Except in specific cases, the provisions of the present Code are not applicable to foreign sea-going vessels and to sea-going vessels sailing under control of the Vietnam Armed Forces employed exclusively for military purpose and public order security guard.
The provisions on the carriage of cargo, of passengers and luggage are not applicable to the carriage of military transports by merchant sea-going vessels.
2. Parties to maritime shipping contracts, provided whereof at least one party is a foreign organization or individual, may determine by mutual consent the law or international shipping custom to govern their legal contractual relations and to submit their disputes to an arbitration or court in either of their countries or in a third country.
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2. Legal relations incident to general average are governed by the law in force in the country of the place where the vessel calls at after general average has occurred.
3. Legal relations incident to collision; salvage remuneration; the recovery of property sunk on the sea occurred in inland and territorial waters of the littoral country are governed by the laws of said country.
4. Legal relations incident to collision or salvage occurred on the high seas governed by the law of the country whose arbitration or court deals with the dispute.
5. Legal relations incident to the contracts of carriage of cargo are governed by the law of the country where the carrier has his principal place of business.
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Section A: VIETNAMESE SEA-GOING VESSEL
1. Only Vietnamese sea-going vessels are permitted to sail under the Vietnamese flag.
2. A Vietnamese sea-going is a vessel owned by the Vietnamese State, by a Vietnamese organization having its principal place of business in Vietnam and by a Vietnamese citizen resident in Vietnam or owned by a foreign citizen, which is permitted to register in Vietnam.
3. A Vietnamese sea-going vessel is entitled and bound to fly the Vietnamese flag after having been registered in the Vietnam National Registry Book of Ships or after having obtained the Provisional Certificate of Nationality issued by the authorized diplomatic representative or consulate of Vietnam abroad.
2. The Council of Ministers shall define scope of activities of the Vietnamese sea-going vessels owned by Vietnamese individuals.
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The registration of ships in Vietnam is public and against the payment of a certain fee and made by the Registrar of Vietnamese ships. Persons interested may demand certified abstracts from, and copies of entries in the Vietnam National Registry Book of ships.
2. The Council of Ministers shall define cases when Vietnamese owned sea-going vessels are permitted to enter in foreign country and foreign owned sea-going vessels-in Vietnam.
3. The Council of Ministers shall designate the authorities competent to the registration of ships in Vietnam; the principles and procedures in registration of ships and administrative penalties on violations in registration of ships in Vietnam.
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a) The name of the vessel and the full style and principal place of business of the ship owner, international signal letters as well as the kind and appropriation of the vessel;
b) The serial registration number of the vessel and the date of entry;
c) The year and place of construction and the shipyard;
d) The technical characteristics of the vessel;
e) The vessels minimum complement;
g) The title to the ownership of the vessel and its relevant changes;
h) The ground for, and the date of, the vessels deletion from the registration.
2. Every change in the date entered in the registration of ships stipulated in item 1 of this Article is also subject to the entry in the National Registry Book of ships.
3. The data entered in the National Registry Book of ships shall constitute legal evidences for the interested parties.
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a) Been destroyed or sunk;
b) Been missing;
c) Been found unfit for repairs or not worth repairing economically;
d) Lost her grounds to sail under the Vietnamese national flag;
e) Lost her characteristics of a sea-going vessel.
2. In cases covered by points c. and e. of item 1 of this Article when a sea-going vessel has been mortgaged, hypothecated or liened the official removal from the register of ships may be effected only with the consent of the creditor.
3. The removal of a Vietnamese sea-going vessel from the register of ships shall be effected on the basis of application made by her owner.
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2. The prompt and exact information on any occurrence and act incident to a sea-going vessel must be circulated by her owner to the Registrar of Vietnamese ships.
Section B: MARINE NAVIGATION SAFETY AND PREVENTION OF ENVIRONMENTAL POLLUTION
2. Certificate of technical condition safety should specify the period of its validity. This period may be automatically extended by a period of time not exceeding ninety days if the vessel is actually unable to call for the periodical inspection at the port indicated and if her technical conditions prove to be safe. Such automatically extended period expires immediately on the vessels arrival at the port indicated for inspection.
3. Certificate of technical condition safety automatically becomes invalid if alterations in vessel have taken place which imperil her technical condition safety.
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2. Before a vessel being put into operation, shipowner and shipmaster upon demand by the Vietnam Marine Safety Inspectorate or the Vietnam Register of Shipping are bound to repair or to make additional conditions of marine navigation safety.
2. The structures, facilities built or installed on the sea and in waters connected with the sea, which are opened for sea-going vessels navigation and operation, should be equipped with sufficient safety warning devices in proper conformity with the regulations on marine warning signals stipulated by the Minister of Transport and Communications.
2. The Vietnam Marine Safety Inspectorate has the right to inspect and punish administrative penalties in respect of violation made by foreign sea-going vessels when operating within Vietnams inland and territorial waters if this Inspectorate has sufficient grounds to suspect their seaworthiness or if they commit a breach of the provisions as to marine navigation safety in Vietnam.
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2. When operating in waters of sea ports and other navigable waters of Vietnam, Vietnamese and foreign sea-going vessels employed exclusively for transportation of oil products or other dangerous goods are bound to be covered by insurance policy as to the civil liability of shipowner for environmental pollution.
3. Foreign sea-going vessels run by nuclear power shall not be permitted to operate in inland and territorial waters of Vietnam unless approval is granted by the Chairman of the Council of Ministers.
Section C: INSPECTION OF TONNAGE OF VESSEL
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2. In case the vessels tonnage measurement certificates in every respect do not comply with prescribed requirements in item 1 of this Article, shipowner or master shall make application with the Vietnam Register of Shipping for inspection of her tonnage and pay relevant tonnage measurement fees.
Section D: DOCUMENTS OF VESSEL
Section E: OWNERSHIP OF VESSEL
2. The transfer of ownership of a Vietnamese sea-going vessel may be effected only after it has been recorded in the Vietnam National Registry Book of ships at the place where the vessel was registered.
3. After the procedures of transfer are completed, together with the ownership of the vessel, her appurtenances also pass to the transferee unless otherwise agreed by and between the parties concerned.
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2. The mortgage and hypothecation of a Vietnamese sea-going vessel in Vietnam are subject to provisions of Vietnamese relevant laws. A contract for instituting a sea-going vessel mortgage and hypothecation should be made in writing and certified by the public notary.
3. The mortgage and hypothecation of a Vietnamese sea-going vessel abroad are subject to provisions of relevant law at the place where the contract for this purpose is signed.
4. The mortgage and hypothecation of a Vietnamese sea-going vessel may be effected only after it has been recorded in the Vietnam National Registry Book of ships.
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3. Statement of creditor concerning maritime lien on sea-going vessel may be effected only after it has been recorded in the National Registry Book of ships where the vessel was registered.
1. Indemnity for death of, or personal injuries to; indemnity for interests arising out from contract of labour.
2. Law costs and costs of judicial execution; expenses incurred in the common interest of the creditors in order to preserve the vessel or to procure her sale and the distribution of the proceeds of sale; harbour dues; costs of watching and preservation of the vessel arising from the time of her entry into the last port;
3. Salvage remuneration and the contribution of the vessel in general average;
4. Compensation for damage caused by collision of the vessel or by other marine accidents; and also for damage caused to harbour facilities, piers and berths, navigable ways, anchorage areas, docks, and for loss of or damage to cargo and baggage;
5. Claims arising out of contracts entered into or other acts done by the shipmaster acting within the scope of his statutory authority when the vessel is away from her home port and such contracts or acts are actually necessary for repair of the vessel or for the continuation of the voyage whether or not the shipmaster is at the same time operator or owner of the vessel, and whether the claim is his own or that of ship chandlers, persons repairing the vessel, lenders or other contracting parties with him.
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2. Privilege debts are settled in turn in the order of groups from item 1 to item 5, Article 31 of the present Code.
3. Privilege debts arising from the same voyage and belonging to the same group stated in Article 31 of present Code are settled in proportion to their amount if the amount available for division is insufficient to satisfy the debts in full; however the debts belonging to groups mentioned in item 3 and item 5, Article 31 of the present Code are in each of the groups, settled in the inverse order of the dates on which they came into existence despite such debts arisen earlier.
4. Debts arising from one and the same occurrence are deemed to have come into existence at the same time.
5. Maritime lien on sea-going vessel arising from the last voyage has priority over that from previous voyages.
6. Debts arising from one and the same contract of labour relating to several voyages are settled paralelly with the debts arising from the last voyage.
1. A creditor is entitled to have a maritime lien on the following amount of money:
a) The freight payable for carriage of cargo, baggage or the money due for the carriage of passengers belonging to the voyage during which there occurred the debts or belonging to all the other voyages performed during the currency of the same contract of labour if it is secured for settlement of debts arising from contract of labour;
b) Compensation due to the vessel for damages sustained by her, if not repaired, and for losses on freight;
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d) Remuneration due to the vessel for salvage after deduction of awards exclusively falling to the master and crew and other persons engaged in the service of he vessel.
2. Maritime lien defined in item 1 of this Article does not extend to insurance indemnities due to the vessel.
2. The time-limit for a maritime lien is indicated as follows:
a) Salvage remuneration-from the day of termination of the salvage;
b) Compensation for damage caused by collision of vessel or by other marine accident-from the day when such damage was caused;
c) Compensation for loss of or damage to cargo or baggage-from the day of delivery of cargo or baggage, or from the day when such should have been delivered;
d) Amount due to the debts defined in item 5 of Article 31 of the present Code-from the day when the debt occurred;
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3. Maritime lien on amounts due to the debts as defined in Article 33 of the present Code extinguishes when they are fully paid by shipowner. But such lien remains in force as long as the sum of money paid is still in the hand of the master or other person who is authorized on behalf of the owner or operator of the vessel to withhold the sum.
4. When courts fail to effect a maritime lien attachment on the vessel in Vietnamese internal waters or on Vietnamese territorial sea to protect the interests of a creditor having its residence or principal place in Vietnam, the time-limits defined in items 1, 2, 3 and 4 of this Article cannot terminate earlier than thirty days from the day the vessel entered the first Vietnamese port, and maximum not later than two years from the day when the debt occurred.
a) A sea-going vessel-for the purpose of securing the claim against her in respect of port charges or damages caused to the port facilities, piers and berths, navigable ways, areas for anchorage, and dock;
b) Wreck or other objects which have been hindering navigation-for the purpose of securing the claim in respect of its removal and demolition.
2. The creditor is fully liable for all consequences arising as a result of his temporary detention defined in item 1 of this Article. Claim against this detention are barred at the expiration of two years from the day when they came into existence.
3. After seventy two hours the property detained temporarily by the provisions in item 1 of this Article is released unless otherwise decided by the Court.
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2. At the request of a foreign court, a foreign vessel can be arrested in Vietnamese internal waters or on the Vietnamese territorial sea to secure the settlement of the cause tried by such foreign court.
3. Not later than at expiration of thirty days from the day when the master receives the warrant of arrest if the shipowner fails to provide adequate security the court which has issued the warrant of arrest shall be entitled to public auction of the vessel.
2. A sea-going vessel may be released at the application made by those who themselves had made application for her seizure, temporary detention or maritime lien. The relevant charges are covered by such persons.
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2. Minister of Transport and Communications shall define ranks, ranking duties and disciplines applied to crew working on board Vietnamese sea-going vessel. Such ranks, ranking duties and disciplines applied to crew working on board sea-going vessels exclusively employed for exploitation and processing of sea products shall be defined by the Minister of Fishery.
3. The owner of vessel shall define those ranks, ranking duties and disciplines applied to crew which are not yet provided for by the Minister of Transport and Communications and Minister of Fishery.
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3. When the loss of or damage to the legitimate own properly of crew is caused by accident occurred to the vessel, shipowner is bound to compensate such property as per market price ruling at the place and time where the accident is settled. If the accidents has occurred by approximate cause on the part of crew, they loose the right to claim for loss of or damage.
4. Labour regulation on obligations and interests of the Vietnamese crew working onboard the foreign sea-going vessels, and of foreign crew-on board Vietnamese sea-going vessels, is defined on the basis of recruitment agreements.
2. The master is bound to be in personal command of the vessel when leaving, entering ports, canals and river navigable ways as well as when the vessel under his command is operating within port waters areas and in any case involving special difficulty or danger.
3. The master is bound to employ the services of a pilot or of a tug boat where such services are required by regulations of for the safety of the vessel.
The employment of the services of pilots does not relieve the master of the obligation laid down in item 2 of this Article.
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2. Before the commencement of and during a voyage the master is bound to take due care that the vessel in every necessary respect be seaworthy, and comply with the professional principles of goods seamanship and with the regulations as regards the adequate equipments, ships hull, proper manning and other respects relating to marine navigation safety for the vessel and people on board.
3. The master is entitled not to let the vessel commence the voyage if he has grounds to ascertain that the vessel under his command has insufficient necessary conditions of seaworthiness.
4. The master is empowered to keep the crew under his command to follow the disciplines or to give the reward to them; to refuse to recruit or to force to leave his ship those crew who are unqualified in ranks assigned to them or who have broke the disciplines.
2. The master is bound to take due care that the cargo be not damaged or lost; to take such action as may be necessary to protect the interests of persons interested in the cargo; to use all possible means to inform them of particular occurrences concerning the cargo.
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3. In case the vessel is threatened with sinking or with destruction the master is bound to take all available measure to save first the passenger and them the crew.
The master is the last to leave the vessel after he has made use of all means possible to save the log-books, charts, other documents of the vessel, high valuable objects and money belonging to the vessel.
2. The master of a vessel being in sea distress has the right to demand his vessel be saved, and after consultation with vessels which answered his call for assistance, to indicate which vessel is to render his salvage.
2. Within the limits laid down in item 1 of this Article, the master may, in the name of the shipowner and the parties having interests in the cargo, while away from the home port, perform legal acts, and he may sue and take part in legal proceedings before courts, unless the shipowner and the parties having interests in the cargo declare limitation of the whole of part of the authority. As regards third parties, this limitation of the masters statutory authority has legal effect only in so far as they have been aware of it.
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2. Within the limits laid down in item 1 of this Article the master is also even entitled to sell superfluous appurtenances of the vessel or surplus reserves where it is inexpedient or impossible to wait for instructions or funds from the shipowner.
3. During a voyage, if means necessary for its completion cannot be obtained in any other way, the master-after having, by all means, sought instructions from the charterers and the shipowner but failed-is entitled to pledge or even sell a part of the cargo.
4. When deciding on means for raising funds necessary for the completion of a voyage, the master is bound to narrow, at the lowest level, the prejudice to the shipowner and the parties having interests in the cargo.
2. The shipowner is bound to compensate for the food and provisions requisitioned.
2. The master is bound to report births or deaths occurring on board and deliver testaments, inventory list of property of the deceased to the Competent Registrar Office in the first Vietnamese port at which the vessel called, or the authorized diplomatic representative or consulate of Vietnam abroad if this port is a foreign port.
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All the relevant fees are paid in conformity with the provisions of regulations and law.
1. In the event of offence committed on board, the master is bound to:
a) Take all the necessary means for preventing, draw up files as provided for by virtue of status;
b) Secure evidence and, according to the specific circumstance, to hand over the offender together with the relevant documents to the competent authority of Vietnam at the first Vietnamese port the ship has called at, or while on a voyage, to a warship of the Vietnamese Armed forces encountered on sea, or to inform the authorized diplomatic representative or consulate of Vietnam abroad and to act according to the instruction given by them.
2. If necessary, the master is empowered to confine to a separate compartment any person whose conduct on board endangers the safety and public order of the vessel and persons on board and cargo carried on board.
2. The master is bound to produce, on demand by the authorized diplomatic representative or consulate of Vietnam the vessels documents.
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2. When on a voyage the marine accident or total loss occurred after calling at the Vietnamese first port, the master is bound to fully report to the Vietnamese competent authorities in charge of management of marine navigation safety of such events. The master and he persons involved may be interviewed by such authorities if necessary.
3. Marine accidents as referred to in the present Code are accidents caused by collisions and by other troubles relating to the vessel given rise to death or body injury, to damage to the vessel, to sinking, destruction, getting fire, running aground or environmental pollution.
2. The Minister of Transport and Communications shall determine the competent authority having the power to certify the submission of the sea-protest in Vietnam, the order and procedures for certifying in the sea-protest.
3. When a vessel is operating abroad the master submits the sea protest to the authorized diplomatic representative or consulate of Vietnam abroad or the local competent authority for certifying this submission.
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a) Warehouses, yards, berths, wharves and docks, depots and workshops, administrative and maritime services zones, hereinafter referred to as the port premises.
b) Waters in front of berths, wharves and docks, areas for anchorage and lighterage, entrances and exists fairways to and out of port, storm shelter areas, hereinafter referred to as the port waters.
2. The navigable zones as referred to in the present Code consist of waters of a number of ports situated near to each other and near to transit lanes.
3. The Council of Ministers shall determine the opening of sea-ports. The Minister of Transport and Communications shall declare the opening, the interim closing of sea-ports and issue regulations on maritime shipping activities in each of sea-port waters or in marine navigable zones.
2. The Minister of Transport and Communications, after having consultations with the Peoples Committees of provinces and municipal-level cities of the central authority or similar administrative units, shall declare the areas under the control of the Port Authority and decide the organization and instruct leading guides on the activities of the Port Authority.
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1. To organize the implementation of regulations on the activities of the port authority, supervise the fulfillment of rules and regulations on marine navigation safety, environmental pollution prevention, marine sanitation and order.
2. Not to permit vessels to enter or to leave the port if they are unseaworthy or fail to clear
outstanding debts, fines for violation of rules and regulations of the port.
3. To exercise temporary detention, maritime lien on sea-going vessels or to carry out the warrant of arrest of sea-going vessels issued by the statutory state competent authorities.
4. To grant permits for vessels, boats operating or persons working within the areas under the control of the Port Authority; to revoke such permits if having grounds to realize such vessels, boats or persons having insufficient condition for marine navigation safety.
5. To organize search and rescue of vessels or people in distress in the areas under the control of the Port Authority.
6. To impose administrative fines for acts violating rules and regulations on marine navigation safety, environmental pollution prevention, maritime sanitation and order.
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3. The Council of Ministers shall promulgate the rules and regulations on work coordination between the State Management Authorities operating in the ports areas.
The contract of carriage of cargo is signed in the form mutually agreed by and between the parties concerned and it determines the legal relationship between the carrier and the charterer.
2. A carrier may be any person who possesses or charter a sea-going vessel to perform the service of cargo transportation.
A charter may be any person who on his own behalf or on behalf of another person concludes with carrier the contract of carriage of cargo.
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The provisions in this Chapter pertaining to the shipper are also applicable to the charterer who actually himself supplies the cargo to the carrier.
2. The contract of carriage of cargo may also provide that instead of allowing for the cargo the whole cargo space of the vessel, or a definite part thereof, the carrier will perform the carriage on the basis of cargos kind, quantity, measure or weight. Such a contract, hereinafter is referred to as booking contract.
1. As regards a voyage charter party, with the consent of the charterer, the carrier may substitute the contract-identified vessel by another.
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2. Any claim in respect of damage to, or loss of the cargo carried under a bill of lading or similar way bill is barred at the expiration of one year from the day on which the cargo has been or should have been delivered to the consignee.
Section B: LOADING UPON VESSEL
2. The carrier is bound to exercise due diligence that before and at the commencement of the voyage the vessel be seaworthy; properly manned; equipped and supplied; and moreover that her holds, cool and refrigerating chambers and all other compartments in which goods are loaded, be prepared and brought to a proper condition for the reception, carriage and preservation of the cargo in accordance with its nature.
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2. Where the carriage is based on a voyage charter party, the carrier will direct the vessel to the charterers indicated place which is safe accessible without difficulty for the vessel to reach, to lie there and to leave unhindered with the cargo. Where there several charterers who have not agreed among them on the loading place, or where the loading place indicated by charterer is not determined, the carrier will direct the vessel to a local customary loading place.
3. Irrespective of whether the loading place has been determined in the voyage charter party, the charterer may, except in the case when the carriage is performed by liner vessels, demand from the carrier that-against reimbursement of all expenses connected therewith-the vessel be shifted from once place to another.
4. Where the carriage is based on a booking contract, the charter is entitled to change the loading place only where such a provision has been stipulated in the booking contract or such is consequent on a custom applied at the relevant port.
The days and hours in which the Notice of readiness is deemed to have been effected are agreed by and between the parties concerned in the voyage charter party; in the absence of such provision, by local customs in respect of such acts are applicable.
The Notice of readiness which at the time of its receipt by the charterer or shipper is not true to the facts, is deemed as not having been effected and the carrier is liable for the loss resulting therefrom.
2. Where the carriage is based on a booking contract, the carrier is bound to notify, within the reasonable time in advance, the charterer or shipper of the loading place and the time when the vessel is in readiness to load within the period fixed for supplying the cargo.
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2. Interruptions arising by way of causes on the part of the charterer or shipper, as also the time used for shifting the vessel from one place to another requested by him are to count as loading time.
3. Interruptions arising by way of causes on the part of the carrier, as also interruptions caused by force majeure, or by weather conditions which affect the correctness of loading or imperil the safety of loading, are not to count as loading time.
4. The charterer or shipper may agree with the carrier on the dispatch for loading to be completed ahead of the determined period or the demurrage resulting from delaying the loading beyond the determined period.
2. The demurrage money is determined by the parties concerned in the voyage charter party. Where the voyage charter party does not contain any provision on this subject, it is determined by local customs.
In the absence of local custom the amount of demurrage money is determined by the actual total sum of the carriers expenditure for the maintenance of the vessel and of the crew throughout the demurrage time.
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The freight due to the carrier for the carriage of such cargo must not be lower than the agreed freight.
2. The carrier is bound to exercise due diligence in loading, stowage, lashing and separation of cargo on board. The relevant costs are to be agreed upon by the parties concerned in the contract.
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a) To commence the voyage even before the agreed date;
b) To load onto the vessel the cargo already supplied at the loading place, even though the demurrage time has been expired, if the loading of such a cargo might cause detention of the vessel, but no longer than fourteen days and this still validates the carriers right provided for in item 3 of Article 71 of the present Code.
2. Where according to the contract the charterer has at his disposal a part of the space of the vessel, the carrier is entitled to the full freight and to refuse the loading of the cargo which is supplied after the expiration the agreed loading and demurrage times due to delay on the part of the charterer or shipper.
2. The charterer is entitled to demand an appropriate reduction in the freight and compensation for his losses where the carrier fails to place at the charterers disposal the space of the vessel as determined in the contract.
2. The carrier is entitled to refuse the loading of the cargo which have insufficiency or inadequacy of packing.
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The charterer is liable for damages resulting from the delay in delivery of such necessary documents and guidelines and from irregularities or inaccuracies thereof.
2. The liability determined in item 1 of this Article is borne also by the shipper where the damages have occurred through his fault.
3. The charterer or the shipper is only liable for losses stipulated in item 1 of this Article if the carrier proves such losses are caused through their fault.
The charterer is liable for losses resulting from such cargo.
2. Although the dangerous nature of cargo has been warned or known to the carrier on the basis of a common operational knowledge and the proper conserved measures applied as provided by rules and regulations and the cargo has been loaded onto the vessel, but subsequently such a cargo has imperiled the safety of the vessel, of persons and cargoes on board, the carrier may, at his discretion, have the right to handle it as provided for in item 1 of this Article. For the losses resulting there from the carrier is liable only in that arising from the rules of general average and retains his right to distance freight.
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1. The carrier is bound to issue to the shipper, on his demand, a set of bills of lading.
2. The carrier and shipper may agree to substitute the bill of lading by the sea-way bill or other similar way bill and agree on the content, validity of these documents in conformity with international maritime shipping customs.
2. The original bill of lading is a document of title for disposing of the cargo and for taking delivery thereof.
3. The bill of lading determines the legal relationship between the carrier and the consignee. Provisions of the contract of carriage are binding upon the consignee only when the bill of lading refers thereto.
1. A bill of lading should consist of the following basic contents:
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b) The designation of the shipper;
c) The designation of the consignee, or a statement to the effect that the bill of lading has been made out to order or to bearer;
d) The name of the vessel;
e) A description of the cargo, specifying its kind, measure, volume, quantity, number of pieces, weight or value where necessary;
g) A description of the apparent conditions of the cargo or its packing;
h) Marks, signs and particulars to identify the cargo, as furnished in writing by the shipper before commencement of loading and having been marked on individual pieces of the cargo or of its packing;
i) Freight and other charges due to the carrier; remarks as to method of the payment;
k) Place of loading and port of loading;
l) Port of destination or a statement as to when and where the port of destination will be indicated;
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n) The date and the place of issue of the bill of lading;
o) The signature of the carrier or of the shipmaster or of the other authorized representative of the carrier;
2. Where the carrier has not been named in the bill of lading, it is assumed that the shipwoner is the carrier. Where in the bill of lading made out in accordance with item 1 of this Article, the carrier has been named inaccurately or falsely, the shipowner is liable to compensate for the losses resulting there from and then has a recourse claim against the carrier.
1. A bill of lading may be issued in the following forms:
a) To a named consignee, referred to as a straight bill of lading;
b) To the order of the shipper or of the person indicating by him referred to as an order bill of lading;
c) To an unnamed consignee or unnamed person indicating the order, referred to as a bearer bill of lading.
2. Where in an order bill of lading the person, to whose order the bill of lading is made out, has not been indicated, such bill of lading is automatically deemed to be made out to the order of the shipper.
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A bill of lading may be transferred as follows:
a) A straight bill of lading: by cession of the ownership in conformity with the relevant regulations and laws. The person whose name has been indicated in the bill of lading is the legitimate consignee;
b) An order bill of lading: by endorsement. Where the bill of lading has not been endorsed, the legitimate consignee is the last person who is entitled to issue delivery order;
c) A bearer bill of lading: by delivery of the bill of lading. The person who produces the bill of lading is the legitimate consignee.
2. The shipper is liable to the carrier for losses caused by an inaccurate or an untrue statement as to the cargos kind, measure, volume, quantity, unit, weight, marks and signs.
However the carrier is still bound to perform his obligations under the contract of carriage in relation to the other parties, except the charterer and shipper.
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2. The carrier may refuse to enter in the bill of lading the cargo description as where he has sufficient grounds to suspect the accuracies of the declaration made out by the shipper at the loading moment or he has no possibility of verifying it.
3. The carrier may refuse to insert in the bill of lading the cargo signs, marks where such have not been marked on individual pieces of cargo or of its packing in such a manner that they should remain legible until the end of the voyage.
4. Where the packing of cargo has been made before supplying to the carrier, he may insert in the bill of lading a remark to the effect that the contents are unknown to him.
The bill of lading issued to cover the whole route in combined transport is referred to as through bill of lading.
2. Subject to the exceptions provided by other regulations and laws, the provisions on the bill of lading contained in the present Code are also applicable to the through bill of lading issued by the sea carrier.
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3. A carrier who by virtue of his joint and several liability under a through bill of lading has paid an indemnity for losses, has the right to claim from each of the involved carriers a refund in proportion to the amount of freight covered that the losses occurred not through his fault is exempted from the obligation to make a refund.
4. A carrier who has involved in the carriage under a through bill of lading is responsible for the proper performance of his obligations and to exercise due diligence that the further carriage could be successfully performed. The last carrier should protect the rights of the other carriers, in particular their liens.
Section D: PERFORMANCE OF CARRIAGE OF CARGO
2. A deviation from the route for the purpose of saving life or property at sea or for other justified reasons which do not affect the contract of carriage does not constitute an infringement of the contract of carriage. The carrier is not liable for any damage resulting there from.
2. Where by virtue of contract the carrier allows for the cargo the whole cargo space of the vessel the master should, depending on the specific circumstances, ask for and follow the instructions of the charterer. Where it is impossible to follow the charterers instructions or where the charterers instructions have not been received in due time, the master may discharge the cargo or return it to the port of loading, which may, in his judgement, properly protect the interests of the charterer. The charterer is bound to pay the carrier the distance freight and costs connected therewith.
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Section E: DISCHARGE AND DELIVERY OF CARGO
2. Where the cargo is carried under a bill of lading, the rights determined in item 1 of this Article are vested to the legitimate consignee holding the original bill of lading. The carrier is bound to follow his instructions only after surrender of all copies of the original bill of lading issued.
3. The rights determined in item 1 of this Article do not lie if the execution thereof would cause a considerable delay in commencing the voyage, unless the carrier has given his consent thereto.
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Where the cargo is carried under a bill of lading, the consignee is bound to pay only such amounts as are consequent on the bill of lading as provided for therein.
2. The carrier may refuse to deliver the cargo and retain it until the charterer and the consignee have fully paid or properly secured the amounts being owing to the carrier.
The interest, base on the ruling rates announced by the relevant transaction bank, is charged in addition to the debts not payable within falling due.
The debts as above mentioned will include the contribution of the cargo in general average and salvage remuneration falling on the cargo.
3. A carrier who has delivered the cargo to the consignee, loses his right to pursue any claim against the charterer.
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2. It is presumed that the consignee has fully and completely taken delivery of the cargo in conformity with the contents of the bill of lading unless he has given in writing notice to the carrier of losses or damages at latest at time of taking delivery, and in the case of damages externally imperceptible-at latest within three days of taking delivery of the relevant cargo. The notice in writing is superfluous if the cargo has been survey as stipulated in item 1 of this Article.
Any agreement contrary to this provision is valid.
2. Where at the same time several holders of the original bill of lading or way bill or other similar way bill claim delivery of the cargo, the carrier is entitled to act in the same manner determined in item 1 of this Article.
3. For detention of the vessel caused by discharging the cargo and placing it in custody, as laid down in item 1 of this Article, and indemnity is due to the carrier on the same basis as for the detention of the vessel during loading.
4. Where, within sixty days from the day of the vessels arrival at the port of destination, the cargo placed in custody has not been collected or the consignee has failed to pay in full the outstanding debts or to make an adequate security thereof, the carrier has the right to sell the cargo by public auction. Such cargo may be sold even before the expiration of the sixty day period where the cargo incurs a risk of deterioration or its putting in custody involves costs in excess of the actual value of the cargo.
The carrier is bound to notify the charterer of the cases referred to in items 1,2 and 4 of this Article and also his intention to sell the cargo for clearing debts as determined in item 4 of this Article.
5. The Council of Ministers shall determine the detailed procedures for sale on public auction of the cargoes mentioned in this Article.
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2. Where the proceeds obtained from the public auction of the cargo are not sufficient to cover in full the amounts due to the carrier as mentioned in item 1 of this Article, the carrier has the right to full claim thereof from the parties involved.
3. Where within a period of one hundred and eighty days from the date of public auction of the cargo, nobody claims for the outstanding balance, the carrier will transfer it to the State Treasure in conformity with statutory procedures.
Section G: FREIGHT AND ADDITIONAL CHARGE
In the absence of such tariff, they are agreed upon by the contractual parties.
2. The period and method of payment for freight and additional charge are agreed upon by the contractual parties.
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2. A distance freight is the amount due for the carriage computed in the proportion of the whole agreed voyage distance to the part of the voyage actually covered by the cargo, as well as in the proportion of the costs and time, perils or troubles on the average connected with the part of the voyage covered to what falls to the remaining part of the voyage to be completed.
3. Where, during the course of carriage the cargo has been damaged or wasted on account of its special nature or the animals have died, the carrier has the right to full freight.
2. On cargo placed on board without permission of the carrier, the latter is entitled to the double amount of freight due for the carriage from the loading port to the port of destination, as well as to compensation for losses which the carrier has sustained by reason of such cargo having been placed on board without his permission. The carrier may discharge such cargo at any port whatever, if necessary.
Section H: TERMINATION OF CONTRACT
1. The charterer has the right to rescind the contract in the following cases:
a) The carrier has failed to place the vessel at the place of loading at the agreed date, or has delayed in loading the cargo upto the vessel or in commencement of the voyage; the charterer is entitled to the compensation for the damages resulting therefrom;
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2. The carrier is entitled to refuse the charterers demand to discharge the cargo as mentioned in point b, item 1 of this Article where such would cause a delay of the voyage or affect the interest of the parties concerned on account of the alteration of the fixed schedule.
a) One half of the freight, where he rescinds the contract still before the agreed loading time to count.
b) The full freight, where he rescinds the contract after the agreed loading time to count or after the agreed time for demurrage to count if the contract has been concluded for a single voyage.
c) The full freight for the voyage, before the commencement of which he rescinds the contract, and plus one half of the freight for subsequent voyages if the contract has been concluded for a number of voyages.
2. Where the charterer has rescinded the contract in conformity with the provision laid down in item 1 of this Article, the carrier is bound to detain the vessel at the place of loading until the cargo discharge has been completed even though this may detain the vessel beyond the agreed loading and demurrage times.
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b) Full freight where he rescinds the contract during the voyage.
a) War has broken out threatening the safety of the vessel and cargo; the loading port or port of destination has been declared blockaded;
b) The vessel has been detained by order of the local authorities for reasons beyond the control of the contractual parties;
c) The vessel has been requisitioned for State purpose;
d) An embargo has been declared on carriage of the cargo from the loading port or to the port of destination.
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3. By reasons as set out in item 1 of this Article either party may rescind the contract also during the voyage, the charterer is bound to pay the distance freight and costs of discharge.
a) The vessel designated in the contract has been sunk, missing, captured or considered unfit for repairs or not worth repairing economically;
b) The cargo specifically designated in the contract has been lost.
2. Where the circumstances as set out in item 1 of this Article have occurred during the voyage, the carrier retains his right to the distance freight. Where only the vessel has been damaged while the cargo has been saved or returned, the carrier retains his right to the distance freight as to so saved or returned cargo.
Section I: IABILITY OF CARRIER FOR LOSS OF OR DAMAGE TO CARGO
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2. The carrier is completely exempt from liability for loss of or damage to the cargo resulting from:
a) Act, neglect, or default of the master, other members of the crew, pilot, or servants of the carrier in the navigation or in the management of the ship;
b) Fire, unless caused by the actual fault or privity of the carrier;
c) Perils or accidents on the sea, or in navigable waters;
d) Force majeure;
r) Act of War;
g) Hostilities, actions hostile to public welfare order;
h) Acts or restraint of authorities or people, or court seizure for legal process;
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k) Act or omission of the shipper or owner of the goods, his agent or representative;
l) Strikes or lock-outs or other similar circumstances from whatever cause which hold up or restrain work in general or in part;
m) Riots and civil commotions;
n) Saving or attempting to save life or property at sea;
o) Wastage in bulk or weight or any other loss or damage arising from quality, inherent defects, or vice of the goods;
p) Insufficiency of packing;
q) Insufficiency or inadequacy of marking of the cargo;
r) Latent defects not discoverable in spite of exercising due diligence;
s) Any other cause arising without the actual fault or privity of the carrier nor the fault or neglect of the agents or servants of the carrier.
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The total amount recoverable shall be converted into Vietnamese currency according to the official rate of exchange announced by the State Bank of Vietnam at the time of compensation.
The total amount recoverable shall be calculated by reference to the value of such cargo at the place and time at which the cargo is discharged from the vessel in accordance with the contract provision or should have been discharged.
The value of the cargo shall be ascertained according to the commodity exchange price, or if unable so fixed, according to the current market price, or if there be no such prices, by reference to the normal price of cargo of the same kind and quality at the place of compensation.
2. Where the kind and the value of the cargo have been declared by the shipper before its loading and have been accepted and inserted by the carrier in the bill of lading, way bill or other similar way bill, the carrier is obliged to compensate for loss of or damage to the cargo on the basis of so declared value and on the following principles:
a) As to cargo lost-by the value declared;
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The remaining value of the cargo shall be fixed according to the market price at the place and time at which the cargo is discharged or should have been discharged, where such value of the cargo is unable to be ascertained it is based on the market price at the place and time at which the cargo has been loaded plus the costs and charges connected with the delivery of cargo upto the port of destination.
2. Where a bill of lading is issued for cargo carried under a voyage charter party, the provision of item 1 of this Article is applicable from the time when the bill of lading has been transferred to a third party.
3. The contractual parties may only agree to lessen the carriers liability in a manner different from that provided in item 1 of this Article in the cases connected with:
a) The period of time from the receipt of cargo for carriage to the commencement of its loading on the vessel and from the completion of discharge to the delivery of the cargo;
b) The carriage of live animals;
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Section K: MARITIME LIEN ON CARGO
2. The privileged debts are settled in the following order:
a) Law costs and costs of judicial execution; expenses incurred in order to preserve, to sell the cargo and to distribute the proceeds of its sale; duties and other public charges.
b) Salvage remuneration falling on the cargo as well general average contribution due from the cargo;
c) Compensation for damages caused by the cargo;
d) Interests of the carrier.
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2. A creditor may not exercise a lien on insurance indemnity due to the cargo.
Article 115
1. Maritime liens on cargo extinguish on the delivery of cargo to the legitimate consignee.
2. Maritime liens on the amounts due to the cargo extinguish on payment of such amounts to the parties entitled thereto.
CONTRACT OF CARRIAGE OF PASSENGERS AND LUGGAGE
Legal relationship between the carrier and the passenger is governed by such a contract, while the ticket issued to the passenger constitutes evidence of the conclusion of the contract for passage.
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3. Any agreement limiting the rights of the passenger or lessening or relieving the liabilities of the carrier as provided for in the present Code shall be null and void.
4. Where the passage is performed by a sea-going vessel other than a passenger vessel, the carrier has the right to substitute the ticket by another similar voucher.
2. The passenger is entitled to the interests in compliance with the classified ticket and not to pay the money for the carriage of his hand baggage within the limit of weight and kind designated by the carrier.
2. The carrier is bound to take due care and to properly protect the passenger together his luggage from the time he has embarked on board upto the time he has safely together with his luggage left the gangway at the port of destination; where during the voyage an extraordinary and unexpected event has occurred, the carrier is liable to absorb the fare necessary to cover the transportation of the passenger from and to the vessel as well as costs of meal, and services for staying on board together with entertainment fees.
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2. The master may disembark such person or transfer him onto a vessel going to the port at which such person boarded the vessel, the master is bound to give the competent authorities information concerning the name, age, citizenship of that person, the port at which he boarded and concealed himself on the vessel. The person who is on board without the passage ticket is still obliged to comply with the provision set out in item 1 of this Article.
2. Where the passenger has fallen seriously ill that he cannot embark the vessel or die within twenty four hours before the commencement of or during the voyage and where the passenger refuses to continue the voyage on account of causes on part of the carrier, the passenger is entitled to take back the whole or part of passage money corresponding to the remaining distance.
3. In case the vessel is unable to reach the port of destination or fails to reach there within the fixed time by way of causes beyond the carriers responsibilities, the carrier is bound to refund to the passenger the passage money corresponding to the remaining distance of the voyage or to absorb the costs connecting with carrying the passenger back to the embarkment port or port of destination, whichever the latter wishes, by the sea-going vessel or other means of transport if impossible to carry him by the passenger vessel.
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2. The passenger may rescind the contract and demand the refund of passage money in full where a passenger vessel has not set out the voyage at latest within three days, and any other vessel within seen days, of the schedule date of the commencement of the voyage.
2. For the reason as set out in item 1 of this Article the carrier may also during the voyage rescind the contract of passage but he is obliged to comply with the provisions set out in item 3 of Article 121 of the present Code.
2. Passage money will be refunded to the passenger as provided for in Article 124 of the present Code.
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2. If the carrier proves that the accident has occurred due to the intentional fault or gross negligence on the part of the passenger he is partly lessened in the liability set out in item 1 of this Article.
3. The course of carriage is deemed to be included the period during which the passenger remains on board, including embarking and disembarking as well as the transportation of the passenger by water from land to vessel or vice versa, if the fare for such transportation is included in the price of the total ticket, or if the means of transferring the passenger supplied by the carrier.
2. The carrier is not entitled to the benefit of this limitation of his liability where the damage has resulted from the personal fault of the carrier or from the fault of his representatives, servants on board when they perform the obligations designated by the carrier.
2. The carrier is only liable for loss of or damage to the passengers hand baggage which her or his servants on board has knowingly or unintentionally caused or which has occurred by undue care of the carrier when he has received the baggage for custody.
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2. The passengers luggage which has not been collected will be solved according to Article 96 of the present Code.
2. The claim for loss of or damage to the passengers luggage should be lodged with the carrier within seven days from the day on which the luggage has been delivered or should have been delivered.
3. Any claim for compensation for loss of life or personal injury or damage to the health of the passenger is barred after two years from the date when the passenger has disembarked; in the event of a passengers death on board, this period runs from the day on which the passenger should have disembarked.
In the event of a passengers death occurring after completion of the voyage, the claim is barred after three years from the day when the passenger has disembarked.
4. Any claim for compensation of loss of or damage to the passengers luggage is barred after six months from the day when the luggage has been delivered or should have been delivered to the consignee.
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2. The charter party is concluded in the form agreed by and between the parties concerned.
Where the charter party provides that the shipowner places at the disposal of the charterer a vessel without crew, such a charter party is called bare-boat charter party.
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2. In case of time-charter, the shipowner is also bound to supply a complement of crew qualified for the purposes of employment determined in the contract and to pay the wages and secure the other legitimate interests of crew throughout the currency of the charter.
2. Without the shipowners consent, the charterer is not entitled to dispose of the other space on board the vessel for the purposes set out in item 1 of this Article.
2. Where the vessels unfitness for operation has resulted from he reason on the part of the charterer, the shipowner is entitled to the agreed charter hire and to the compensation for damage connected therewith.
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2. During the employment of the vessel, the master is the representative of the charterer and should comply with the instructions given by charterer.
3. For the acts of the master determined in item 2 of this Article, the shipowner is liable jointly and severally with the charterer, unless the master has clearly stated, when contracting, that he acts in the name of the charterer.
2. When the period for time-charter has terminated, the charterer is obliged to redeliver the vessel to the shiponwer at the agreed place and time and in technical conditions as concluded in contract.
The charterer is obliged to pay charter-hire until the redelivery of the vessel to the shipowner.
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4. The charterer during the currency of the bare-boat charter party is also obliged to repair the damages of the vessel and to keep the shipowner advised thereof. The shipowner is liable refund the repair costs occurred beyond the scope of the charterers liability.
2. Either party may rescind the time-charter party without compensation to other if owing to an outbreak of war, civil commotions or the actions condemned by the authority hindering the performance of the contract of which the circumstances are unable to come to and end within a reasonable time.
2. In case the vessel under the charter party has been lost, the charter hire is calculated until the date when the last report of the vessel is received.
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2. The shipowner concludes with his ships agent a contract of agency for a certain call or for a specific period of time as mutually agreed. The scope of authority given by the shipowner to the ships agent must be clearly described in the contract of agency.
3. The contract of agency shall constitute ground to determine the legal relationship between the two parties and also an evidence of the shipowners authority to his agent in relation to a third party.
2. When concluding a contract in the name of the shipowner the ships agent may also act on behalf of the charterer or other contracting party, provided that the shipowner has given his consent thereto.
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2. The ships agent is obliged to indemnify the shipowner for losses and or damages resulting from his fault.
Either contracting parties may rescind the contract in accordance with the provisions thereof.
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2. The shipbroker is entitled to remuneration for his mediation only when the contract has been concluded as a result of his efforts. The shipbrokers commission is mutually agreed by and between the shipbroker and his principal, in the absence of agreement the shipbroker and his principal, in the absence of agreement the shipbrokers commission is determined by customs.
3. On the authority of his principal, the shipbroker concludes contracts, and or receives payments in the name of the principal, unless the authority contains an express limitation known to other party.
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2. The shipmaster has the right to choose a pilot or to refuse the pilots services and request his substitute.
2. The pilot is bound to furnish the master with all information concerning the navigational conditions in the area of piloting and to recommend him on activities not in conformity with regulations on marine navigation safety and other relevant regulations.
3. When a master does not follow his instructions or reasonable recommendation intentionally, the pilot has the right to declare in the presence of a third party that he ceases to bear responsibility for the further steering of the vessel.
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5. The pilot must exercise diligently his obligations.
For the safety reason, the pilot cannot depart from the vessel after he has fulfilled his duties, then the master must arrange the vessel to call at the nearest port for the pilots departure. The shipowner is bound to arrange for the pilots return to his place and bear all the expenses incurred.
2. The pilot only bears an administrative or criminal responsibility where they have occurred as set out in item 1 of this Article.
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1. The Council of Ministers shall determine the Pilotage Tariff in Vietnam.
2. The Minister of Transport and Communications shall determine in detail the organization of pilotage, professional qualifications of pilots as well as the navigable areas of compulsory and non-compulsory pilotage in Vietnam.
2. The amount of remuneration due for towage services is determined by agreement between the ships operator and the hirer, and in the absence thereof the amount of remuneration is determined by custom.
3. The towage contract must be done in writing, unless the towage service is done as the manoeuvres in the habours.
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2. The commander of the towage team is determined by agreement between the parties to the towage contract, in the absence thereof he is determined by custom.
2. A vessel which is under the navigational command of the master of another vessel is not relieved of the obligation to exercise care for the safety of the towage team and marine navigation; the ships operator is liable for damages done by his vessels fault to the other vessel in the team as well as to persons and properties on board that vessel.
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2. The salvage agreement is signed in the form as mutually agreed and between the contracting parties.
2. A remuneration is also due for the following services: a salvor who has taken direct or indirect salvage operations to assist the owner of the salvaged property in saving freight and money due for the carriage of passengers; the salvage has taken place as between vessels belonging to the same shipowner; salvage rendered on the sea or in inland waters to a vessel of inland navigation or to a seaplane.
3. No right to any remuneration falls to a salvor who has undertaken salvage operations contrary to an express and reasonable decision of the master of the salved vessel.
1. Persons whose lives have been saved are not bound to pay any money for their rescue.
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2. The amount of remuneration is agreed upon in the salvage agreement but it must be equitable and may not exceed the value of the vessel or the property salved.
3. In the absence of an agreement or being not equitable, and when there are many salvors, the amount of remuneration is determined according to the circumstances, having, in particular, regard to:
a) The result of the salvage obtained;
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c) The degree of danger to which the salved property, the salved vessel or the persons on board thereof have been exposed;
d) The degree of danger to which the salvors as also the vessel and equipment employed by them have been exposed;
e) The time used by the salvors, expenses incurred and the loss suffered by them;
g) The risk of liability and other risks as run by the salvors;
h) The value of equipment employed for the salvage operation;
i) The special appropriation of the salving vessel for salvage operations;
k) The value of the property salved.
4. The amount of the remuneration may be reduced or disallowed where the salvor has by his fault caused the necessity of salvage or where he has committed theft, cheating or fraudulent act when performing the salvage agreement.
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The provision of this item is not applicable to a remuneration due to a vessel exclusively employed for professional salvage.
2. The Minister of Transport and Communications shall determine in detail the principles of division of the salvage remuneration among the crew.
2. The Minister of Defense and the Minister of Interior shall determine the principles of division of the salvage remuneration among the crew of the ships belonging to the Vietnam Armed Forces.s
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RECOVERY OF PROPERTY FROM THE SEA
2. The owner of such property sunken should, within latest one hundred and eighty days of the date on which the property sank, give notice to the Minister of Transport and Communications of his intention to recover that property and to indicate the date by which he intends to complete the recovery.
The Minister of Transport and Communications, within sixty days of the date in which the notice was received, determines the acceptance of the intended period for the completion of recovery or fix for the owner a time to complete the recovery. The period for the recovery should not be more than a year counting from the date in which the decision was delivered to the owner of property.
3. Where the owner of property has not commenced the recovery operations within the period determined in item 2 of this Article or where he has prolonged the recovery operations over a year counting from the date of completion of the period for the recovery, the ownership in such property passes to the State of Vietnam.
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The owner of property is also liable for relevant losses and subject to penalty according to laws, even when he lost the ownership of the property as provided in item 3 of Article 175 of the present Code.
2. Instead of the provisions laid down in item 1 of this Article, the Minister of Transport and Communications is entitled to determine the recoverer if it appears that the recoverer nominated by the owner of property is unable to ensure the recovery at a fixed time.
3. Where the owner fails to claim delivery of he property after one hundred and eighty days of his having been advised of the recovery or to pay the costs involved in the period fixed, the Minister of Transport and Communications or the agency duly authorized by him has the right to sell the recovered property by public auction. Out of the proceeds obtained from the sale, the balance must be placed in bank deposit for delivery to the entitled party after deducting the costs of the recovery, expenses for the preservation of the property and for the carrying out of the sale as well as other expenses.
4. The owner is only liable for the costs and expenses incurred in connection with the cases set out in this Article within the limits of the value of the recovered property.
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2. A recovery of property belonging to another as mentioned in item 1 of this Article is entitled to the reimbursement of costs and expenses as well as to a remuneration, the amount of which is determined by applying the provisions concerning salvage.
3. Where the recovered property belonging to another as mentioned in item 1 of this Article undergoes a rapid decay or destruction, or where its preservation requires excessive costs, the recoverer has the right to handle the property according to the provision of item 3 of Article 177 of the present Code.
4. Where within fourteen days of his having been advised of the recovery, the owner fails to claim delivery of the property or to pay the amount due to the recoverer and where the owner is unknown, the recoverer is bound to deliver the recovered property to Peoples Committee of the province or the municipal level city of the central authority and, or similar administrative unit for its custody.
Where the owner of the property, within a period of one hundred and eighty days of the date of his being notified, fails to have any actions to protect his interests, the Peoples Committee of the province or the municipal-level cities of the central authority and or the similar administrative unit is entitled to handle the recovered property according to the provisions of item 3 of Article 177 of the present Code.
2. Whoever has found and salved property belonging to another, floating on the sea or has contributed to the salvage of such property, is entitled to a remuneration in accordance with the provisions concerning salvage, provided that he has advised the owner of property of his claim not later than the time of delivery of the property found.
3. The provisions of items 1, 3 and 4 of Article 179 of the present Code are also applicable to the cases set out in items 1, 2 of this Article.
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2. The blame vessel is liable for damage done through collision to a vessel or to persons and property in connection thereof. Where the fault is not clearly determined, nobody is to blame for the collision.
3. A blame vessel is a vessel causing a collision or such collision is as a result of negligence in equipping, navigation and management of the vessel, in observing regulations for preventing collisions at sea and regulations for the marine navigation safety as well as non-exercising of necessary professional practices.
2. For damage resulting from loss of life, personal injuries or health damage the vessels at fault in the collision are liable jointly and severally. A vessel which, by virtue of the joint and several liability, has paid more than required proportion, is entitled to recover from the other vessels the sum paid in excess.
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2. The master of each of the vessels, immediately after collision, is also bound to make known to the master of the other vessel the name of his own vessel, her call-sign, the port to which she belongs and the names of the ports from which she has come and to which she is bound.
3. The shipowner is not responsible for a breach of the duties set forth in items 1 and 2 of this Article by his master.
2. The provisions of this Chapter are also applicable to military ships belonging to the Vietnam Armed Forces. These ships do not incur liability for damage done to other vessels by way of collision while executing service duties on military exercise areas and on areas declared as prohibition to navigation, but commanders of such ships are not relieved thereby of the duties provided for in Article 185 of the present Code.
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2. Only such losses which are the direct consequence of the general average act are allowed as general average. Indirect losses whatsoever, such as losses resulting from the vessels detention or difference in prices are not be admitted as general average.
3. Any extra expense in excess of necessary expenses which would have been allowable as general average is allowed as general average, but only upto the amount of reasonable expenditure depending on each specific case.
2. General average losses are apportioned according to item 1 of this Article even though the common peril which has given rise to the extraordinary sacrifice or expenditure has been due to the fault of any party to the general average or a third party.
3. Apportionment of general average losses is also carried out even where the sacrifice has involved the vessel or the whole cargo but not brought about the intended result.
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2. The order should be given by the shipowner to the average adjuster immediately, but not later than within thirty days after the date when the vessel have entered the place for refuge after the general average occurrence. In the event of delay on the part of the shipowner, any party involved in the general average has the right to appoint the average adjuster.
3. Principles applying for a detailed adjustment of the loss value and contribution value are agreed by parties. In the absence of the agreement of parties, the average adjuster shall carry out according to international customs.
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The Council of Ministers shall promulgate a Statute on average adjusters.
2. Civil liability of the shipowner does not relive him of administrative and criminal responsibilities.
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b) Loss of life or personal injury or health damage caused to any person outside the vessel, or loss of or damage to any property or other interests outside the vessel, or any rights infringed through the act or omission of any person, whether on board or not, whom the shipowner is responsible for.
Where loss or damage caused by any person outside the vessel whose act or omission the shipowner is responsible for, the shipowner is entitled to limit his liability to loss or damage only arising form the navigation or management of the vessel or in the loading, carriage or discharge of cargo; or in the embarkation, carriage or disembarkation of passengers;
c) Statutory obligations, liabilities for disposal of shipwreck together with her material bodies when being raised, and for removal, destruction of a vessel which is sunk, stranded or abandoned; obligations or liabilities for compensation for damages to the facilities of port, berth and wharf, channel, waterway anchorage area, dock; obligations or liabilities for compensation for environmental pollution damages caused by the vessel other than environmental pollution damages caused by atomic radio-activity.
2. The shipowner may limit his liability for compensation for the cases set out in point b, item 1 of this Article without proving fault on his privity or on part of the other persons for which he should be responsible where such liability resulting from the possession, proprietorship, management, control of the vessel.
3. The shipowner is not entitled to limit his liability where the damage is incident to:
a) Act of salvage or costs for general average contribution;
b) Environmental pollution caused by atomic radio-activity;
c) Claims of the shipmaster or other crew, shipowners servant working on board or outside the vessel whose duties have direct connection with the operation of the vessel including claims of the successor, his representative and other people who he should bring up if the statutory labour contract between the shipowner and the above people do not entitle the shipowner to the limitation of his liability for their claims or do entitle him only to limitation of the liability if this limitation is on a higher scale in comparison with that determined in Article 196 of the present Code.
4. Where the provisions in the Vietnamese regulations and laws on environmental protection or in the international treaties signed, or recognized by Vietnam are different from those laid down in the present Code, the shipowners limitation of liability is determined and calculated on the basis of such acts.
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a) An aggregate value of the vessel concerned calculating on the basis of Poincare Francs three thousand one hundred for each ton of the vessels gross registered tonnage (GRT) in respect of compensation for loss of life, personal injury or health damage;
b) An aggregate value of the vessel concerned calculating on the basis of Poincare Francs one thousand for each ton of the vessels gross registered tonnage (GRT) in respect of compensation for loss of or damage to the property;
c) An aggregate value of the vessel concerned calculating on the basis of Poincare Francs three thousand one hundred for each tone of the vessels gross registered tonnage (GRT) in respect of compensation for loss of life, personal injury or health damage, and loss of or damage to the property where these losses or damages have been resulting from the same occurrence. However, out of the above set out aggregate value, the total amount of Poincare Francs two thousand one hundred for each ton of the vessels gross registered tonnage (GRT) is designated for compensation for loss of life, personal injury and health damage, the balance - for loss of or damage to the property. In case the total amount to cover the compensation for loss of life, personal injury or health damage is insufficient, the imbalance shall be nibbled in a corresponding proportion from the money covering the compensation for loss of or damage to the property.
2. Any agreement to lessen the shipowners liability for compensation otherwise than the limitation determined in item 1 of this Article shall be null and void.
3. Gross Registered Tonnage (GRT) referred to in item 1 of this Article is determined as follows:
a) Net Registered Tonnage plus the tonnage of engine room space, if the vessel is self-propelled.
b) Net Registered Tonnage, if the vessel is non-self propelled.
4. In respect of limitation of the civil liability of shipowner, the ship having gross registered tonnage below three hundred tons shall be considered three hundred tons.
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2. Where in the same occurrence, the shipowner is entitled to lodge a counter claim against his claimant, the provisions of this Chapter is only applicable to ascertain the imbalance in comparison with liability of each party concerned.
3. The limitation determined in Article 196 of the present Code shall be converted into the Vietnamese currency according to the official exchange rate announced by the State Bank of Vietnam at the time of payment.
2. The Compensation Fund shall be available exclusively for satisfaction of the claims for compensation, the limitation of civil liability of which the shipowner is entitled to.
3. The Compensation Fund shall be constituted either by depositing the sum or by producing other guarantee at the court where the claim is lodged or at a competent State authority and must be considered adequate and protected by such court or authority.
4. Where the Compensation Fund has been constituted by the shipowner nobody is entitled to infringe upon the interests and property of the shipowner. The court or the competent State authority referred to in item 3 of this Article is entitled to order the release of the property liened or arrested or to similarly order the release of the security furnished to avoid such lien or arrest.
5. The Compensation Fund shall be distributed among the claimants in proper proportion to the amounts of their established claims.
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2. A contract of marine insurance may be extended so as to cover perils to which, in connection with the carriage by sea, the subject of insurance is exposed in the carriage by air, in inland waters or on land in combined transport.
3. The contract of marine insurance should be done in writing.
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2. The subject of marine insurance may be a vessel in course of building.
1. The insurer may reinsure in respect of insurance concluded by him.
2. The contract of reinsurance is independent with the original contract of insurance.
2. Before issuing the policy, the insurer is bound to issue to the assured, on his demand, an insurance certificate stating the conclusion of the contract.
3. The marine policy may be made out to a straight policy, to order or to bearer.
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a) The name of the assured, or of some person whose interest being insured;
b) The subject of insurance;
c) The perils insured against;
d) The voyage, or period of time, as the case may be, covered by the insurance;
e) The sum or sums insured;
f) The place, the date and the hour of issue of the policy;
g) The signature and the confirmation of the insurer.
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3. The obligations set out in this Article is also applicable to a third party where the contract of marine insurance is concluded for the benefit of the third party, unless it is not known to him.
2. The insurable interest is entitled to demand from the insurer delivery of the marine policy. As long as the marine policy remains in possession of the insurable interest, he may dispose of rights originating from the contract.
Obligations of the assured connected with the performance of the contract of marine insurance, except the obligation to pay the insurance premium, pass to the insurable interest at the delivery of the marine policy to him.
2. The amount of the cancellation fee is determined by the contract between the two contracting parties.
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The amount of the cancellation fee and terms of the return of insurance premium are determined by the contract between the contracting parties.
Section B: INSURABLE VALUE AND AMOUNT INSURED
Insurable value is the real value of the subject of insurance and it is ascertained as follows:
a) The insurable value of the vessel is her value at the commencement of the insurance, including the value of her machinery, equipment, spare parts and stores plus the charges of insurance upon the whole. The insurable value of the vessel includes also, unless otherwise provided by the contract, money advanced for seamens wages and other disbursement incurred to make the ship fit for the voyage.
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c) The insurable value of the freight is the gross amount of freight plus the charges of insurance. Where the charterers have the freight insured, this amount of freight is included in the insurable value of the cargo for insurance;
d) The insurable value of any other subject of insurance, except obligations arising under civil liability, is the amount of the subject of insurance at the place and time when the insurance attaches, plus the charges of insurance.
2. Where the insured amount as specified in the contract is lower than the insurable value, the insurer is liable for losses in such proportions as the insured amount bears to the insurable valued, including other expenses under the insurance.
3. Where the insured amount as specified in the contract exceeds the insurable value, the marine insurance contract is not valid for the difference.
Section C: TRANSFER OF RIGHTS UNDER CONTRACT OF MARINE INSURANCE
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Concurrently with the transfer of rights under a contract of insurance to the transferee, the latter assumes the obligations which were incumbent upon the transferor of the subject of insurance, including the obligations related to the defences as the insurer would have been entitled to raise, under the contract of marine insurance, against the transferer.
2. The transfer of a marine policy is governed by the provisions on the transfer of a bill of lading.
2. Where at the time of transfer the vessel is on a voyage, the rights under the contract of marine insurance have not been passed to the transferee of the vessel, and the contract of marine insurance remains in force until the vessel has made fast at the first port at which she has called after the transfer.
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2. In a floating insurance the insurer is bound to issue, on demand of the assured, a policy is bound to issue, on demand of the assured, a policy or a certificate of insurance for each declared shipment or each declared cargo.
2. Where the assured has willfully or through his gross negligence failed to fulfill the obligation defined in item 1 of this Article, the insurer may rescind the contract, retaining the right to insurance premium to which he would have been entitled had the contract been properly performed by the assured.
A contract of floating insurance may be terminated by either party subject to a three-month notice.
Section E: PERFORMANCE OF CONTRACT OF MARINE INSURANCE
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2. The insurer has the right to rescind the contract of marine insurance where the assured commits a breach of the provisions set out in item 1 of this Article.
2. When the assured wilfully or through gross negligence has not carried out the obligation set forth in this Article, the insurer is free from liability for losses caused thereby.
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In the insurance of a vessel and freight, the insurer is not liable for losses arising from:
a) The vessel being not seaworthy at the beginning of the voyage, unless this is due to latent defects of the vessel or caused by circumstances which could not have been prevented in spite of due diligence being exercised by the assured;
b) The vessels age or wear and tear in her use;
c) Loading on board the vessel of explosive or easily inflammable materials or other dangerous cargoes without compliance with provisions obligatorily applicable to the carriage of cargoes of that kind, with the privity of the assured but without the privity of the insurer.
In the insurance of cargo, the insurer is not liable for losses arising from:
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b) Ordinary leakage, ordinary wear and tear;
c) Improper packing of the cargo;
d) Delay in its supply;
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2. Where, a total loss of the subject of insurance occurs after a partial damage has already taken place but not yet been made good or compensated the indemnity to the assured shall be limited to his total loss only.
3. The provisions defined in items 1 and 2 of this Article do not relieve the insurer of liability for refunding the expenses in connection with obligations set out in Article 2221 of the present Code.
Section G: PERFORMANCE OF OBLIGATION FOR INDEMNITY WHEN A THIRD PARTY IS LIABLE FOR LOSSES
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3. If the assured has received the indemnity for losses from the third party, the insurer is bound to pay only the difference between the indemnity amount according to the contract of insurance and the amount of money the assured received from the third party.
2. On establishing the General Average Statement, the assured is bound to pay due attention to the insurers interests.
Section H: ABANDONMENT OF SUBJECT OF INSURANCE
2. The right to abandonment of the subject of insurance may be applicable where the vessel has been missing, condemned to appropriate, or has met with an accident in consequence of which she has become unfit for repairs, or not worth repairing economically or costs of recovery uneconomical.
3. The provision of item 2 of this Article is also applied to cargo, even where the costs of its repair and delivery to the place of destination would exceed its market value at the place of destination.
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2. The declaration of abandonment must be given to the insurer in due time, but not later than one hundred and eighty days of the date on which the assured has learned of the circumstances justifying the abandonment, or within sixty days of the date on which the insurance has expired where the vessel or cargo has been taken as prize or where possession of the vessel or cargo has been lost to the assured by other causes. After these periods of time, the assured loses the right to the abandonment but still has the right to demand from the insurer the indemnity for loss.
3. The abandonment of the subject of insurance is not attached any conditions. Where the abandonment has been accepted, neither the insurer nor the assured can change his decision.
2. The rights and obligations to the subject of insurance pass to the insurer on his making the declaration that he accepts the abandonment. The insurer may not demand these rights and obligations.
3. Where the notification of abandonment is done as defined but the insurer refuses the acceptance of abandonment, the assured also retains the right to an insurance indemnity.
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2. Where the vessel found missing is insured for a definite period of time, the insurer is only liable for the indemnity in case he has last received the information of the vessel before the expiration of the insurance period. The insurer is free from liability where he proves that the vessel has been found missing after the expiry of the insurance period.
Section I: PAYMENT OF INSURANCE INDEMNITY
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2. Maritime disputes will be solved by arbitration or court in accordance with the jurisdiction and rules of procedure determined by laws.
The present Code enters into force on the first day of January, 1991.
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The present Code was approved by the 8th Legislature of the National Assembly of the Socialist Republic of Vietnam at its 7th session on June 30, 1990.
CHAIMAN OF THE NATIONAL ASSEMBLY
Le Quang Dao
- 1Decision No. 750/2000/QD-BGTVT of March 30, 2000 issuing the regulation on the maritime pilotage training, update fostering, examination and granting professional certificates thereof
- 2Decree of Government No. 91/CP of August 23, 1997 issuing the regulation on the registration of sea-going ships and crews
- 3Decree No. 30-CP of January 29, 1980, on regulation for foreign vessels to operate on sea areas of the Socialist Republic of Vietnam