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Seagoing vessels

Arrest of seagoing vessels

Section 8. ARREST OF SEAGOING VESSELS

Article 40.-Arrest of seagoing vessels
1. The arrest of a seagoing vessel is an act of banning or restricting the movement of a seagoing vessel by decisions of a court to secure the settlement of maritime claims specified in Article 41 of this Code, but excluding the seizure of the seagoing vessel in execution of a court judgment or decision or an enforcement decision of a competent state agency.
2. The procedures for arrest of seagoing vessels shall comply with regulations of the National Assembly Standing Committee.

Article 41.- Maritime claims giving rise to the right to arrest seagoing vessels
Maritime claims giving rise to the right to arrest seagoing vessels are claims in the following cases:
1. Cases specified in Article 37 of this Code;
2. Damage caused by or threatened to be caused by a seagoing vessel to the environment, coast or related interests; measures taken to avert, limit or remedy such damage; money indemnity for such damage; expenses for reasonable measures actually taken or to be taken to rehabilitate the environment; loss already inflicted or to be inflicted on a third party affected by such damage; damage, expenses or loss similar to those specified in this Clause;
3. Expenses incurred in the raising, movement, recovery, destruction or rendering harmless of a seagoing vessel which is sunk, wrecked, stranded or abandoned, including any appurtenance that is or has been on board the vessel, expenses or costs related to the abandoned seagoing vessel and expenses for its crew.
4. Agreement relating to the use or charter of a seagoing vessel, whether by charterparty or otherwise;
5. Agreement relating to the carriage of cargo or passengers on board a seagoing vessel, whether by charterparty or otherwise;
6. Loss of or damage to cargo, including luggage carried on board a seagoing vessel;
7. General average;
8. Towage;
9. Pilotage;
10. Goods, materials, food, fuel, equipment (including containers) supplied or services provided to a seagoing vessel for its operation, management, preservation and maintenance;
11. Building , transformation, reconstruction, repair or equipment of a seagoing vessel;
12. Payments made on behalf of the shipowner;
13. Insurance premiums paid by the shipowner or a person on behalf of the shipowner or bareboat charterer;
14. Commision, brokerage or agent’s expenses relating to a seagoing vessel which must be paid by its owner, bareboat charterer or an authorized person;
15. Disputes over ownership of a seagoing vessel;
16. Disputes between co-owners of a seagoing vessel over the use of the seagoing vessel or earnings of the vessel;
17. Mortgages of a seagoing vessel;
18. Disputes arising from contracts for purchase and sale of seagoing vessels.

Article 42.- Exercise of the right to arrest seagoing vessels
1. After receiving the request for arrest of a seagoing vessel made by a person who files a maritime claim specified in Article 41 of this Code, a competent court shall consider and decide on the arrest of the seagoing vessel in the following cases:
a. The shipowner is the person responsible for the maritime claim at the time of arising of the maritime claim and still owns the vessel at the time of its arrest;
b. The bareboat charterer is the person responsible for the maritime claim at the time of arising of the maritime claim and still the bareboat charterer or the owner of the vessel at the time of its arrest;
c. This maritime claim is based on the mortgage of the seagoing vessel concerned;
d. This maritime claim is related to the right to ownership or possession of the seagoing vessel concerned;
e. This maritime claim is secured by a maritime lien relating to the seagoing vessel concerned.
2. The arrest shall be also effected of another or many other seagoing vessels owned by the person who is held responsible for the maritime claim and, at the time of arising of the maritime claim, is also:
a. The owner of the seagoing vessel related to the arising maritime claim;
b. The bareboat charterer, time charterer or voyage charterer of the seagoing vessel related to the arising maritime claim.
3. The provisions of Clause 2 of this Article shall not apply to maritime claims relating to the right to ownership of seagoing vessels.

Article 43.-Financial assurances for requests for arrest of seagoing vessels
1. In order to effect the arrest of a seagoing vessel, the requester for such arrest must provide financial assurances in the form and value set by the court corresponding to the damage that might occur from the request.
2. The requester for arrest of a seagoing vessel shall be responsible for any loss or damage caused by the wrong request.

Article 44.-Release of arrested seagoing vessels
1. Immediately after the shipwoner, charterer or operator of a seagoing vessel has taken substitute security measures of fully paid the deblt, the arrested seagoing vessel must be released.
2. Failing an agreement between the involved parties on the level and form of substitute security, the court shall decide on the level and form of substitute security which, however, must not exceed the value of the arrested seagoing vessel. The requester for the arrest of a seagoing vessel must not perform any action that infringes upon the property or other interests of the shipowner, charterer or operator.
3. The arrested seagoing vessel may be released at the request of the requester for the arrest; in this case, all related expenses shall be incurred by the requester.

 

Maritime liens

Section 7. MARITIME LIENS

Article 36.- Maritime liens
1. Maritime lien is the right of a person who lodges a maritime claim specified in Article 37 of this Law to priority in claiming compensation from the owner, charterer or operator of a seagoing vessel which has given rise to the maritime claim.
Maritime claim is an act whereby a party requests the other party to perform the obligation arising in relation to maritime shipping.
2. Maritime claims that give rise to maritime liens specified in Article 37 of this Code take priority over maritime claims secured by the mortgage of seagoing vessels and other security transactions.
3. Maritime liens shall be exercised through competent courts in the form of decisions to arrest seagoing vessels which are related to maritime claims that have given rise to maritime liens.
4. Persons who lodge maritime claims shall have maritime liens over seagoing vessels to secure the maritime claims specified in Article 37 of this Code, even though the seagoing vessels concerned have been mortgaged or their owners have conducted other security transactions to secure other obligations under contracts.
5. Maritime liens on seagoing vessels shall not be affected by a change of owners, charterers or operators, whether or not the purchasers of the seagoing vessels know that the vessels have been related to maritime claims that give rise to maritime liens.

Article 37.-Maritime claims giving rise to maritime liens
1. Maritime claims for wages, repatriation costs, social insurance contributions, and other amounts due to shipmasters, officers and other members of shipcrews.
2. Maritime claims for indemnity for loss of life, personal injuries, other health damage directly related to seagoing vessel’s operation;
3. Maritime claims for tonnage dues, maritime safety assurance dues, pilotage, wharfage, and other seaport dues and charges;
4. Maritime claims for salvage remuneration;
5. Maritime claims based on tort arising out of property loss and damage directly caused by the operation of seagoing vessels.

Article 38.- Priority order of settlement of maritime claims giving rise to maritime liens
1. Maritime claims giving rise to maritime liens shall be prioritized for settlement in the order of claims listed in Article 37 of this Code; where a maritime claim for remuneration for the salvage of a seagoing vessel arises after maritime claims giving rise to other maritime liens, such claim shall take priority over other maritime claims.
2. Maritime claims that give rise to maritime liens in the same clause of Article 37 of this Code shall rank pari passu as between themselves; where the sum of money is insufficient to cover the value of each maritime claim, it shall be divided in proportion to the value of each maritime claim.
3. Maritime claims arising from one event shall be deemed to have arisen at the same time.
4. Maritime claims that give rise to maritime liens on a seagoing vessel on the last voyage shall take priority over those on previous voyages.
5. Maritime claims arising from one labor contract relating to many voyages shall be settled at the same time with those relating to the last voyage.
6. In case of maritime claims for salvage remuneration specified in Clause 4, Article 37 of this Code, the maritime claim arising later shall be settled before other maritime claims.

Article 39.- Statute of limitations of maritime liens
The statute of limitations of a maritime lien is one year, counting from the date of arising of the maritime lien.
The statute of limitations of a maritime lien defined in Clause 1 of this Article is counted as follows:
From the date of termination of the salvage operation, in case of settlement of salvage remuneration;
From the date of arising of loss, in case of settlement of loss and damage caused by the operation of the seagoing vessel;
From the date payment is due, in case of settlement of other maritime claims.
A maritime lien shall terminate as from the time the owner, charterer or operator of the vessel has fully paid debts arising from the related maritime claims; the maritime lien remains effective if the payment money is still kept by the master or the person who is authorized to pay on behalf of the owner, charterer or operator of the vessel the debts related to the maritime claim concerned.In cases where a court cannot exercise the right to arrest the seagoing vessel within the Vietnamese internal waters or territorial sea in order to protect the interests of the maritime claimant who permanently resides or has his/her head office in Vietnam, the statute of limitations specified in Clause 1 of this Article shall terminate thirty days after the vessel arrives at the first Vietnamese port but shall not exceed two years, counting from the date of arising of the maritime lien.

 

Transfer of ownership and mortgage of seagoing vessels

Section 6. TRANSFER OF OWNERSHIP AND MORTGAGE OF SEAGOING VESSELS

Article 32.- Transfer of ownership of seagoing vessels
1. The transfer of ownership of seagoing vessels must be established in writing according to the provisions of Vietnamese law or the law of the country where the transfer is effected.
2. The transfer of ownership of Vietnamese seagoing vessels shall be effective after it is entered into the Vietnam National Register of Ships.
3. After the completion of procedures for transfer of ownership, the whole seagoing vessel and its appurtenances shall come under the ownership of the transferee, unless otherwise agreed upon by the involved parties.
Appurtenances of a seagoing vessel include objects, facilities and equipment on board the vessel which do not constitute component parts of the vessel.
4. Regulations on transfer of ownership of seagoing vessels shall apply to the transfer of ownership of shares of seagoing vessels.
5. The Government shall provide for the conditions, order and procedures for transfer of ownership of seagoing vessels in the form of purchase and sale.

Article 33. – Mortgage of Vietnamese seagoing vessels
1. The mortgage of a seagoing vessel means an act whereby the shipowner secures with his/her seagoing vessel the performance of his/her obligation to the obligee but is not require to hand over the vessel to the mortgagee for custody.
2. Shipowners have the right to mortgage Vietnamese seagoing vessels under their ownership to mortagagees according to the provisions of this Code and other relevant provisions of law.
3. Contracts for mortgage of Vietnamese seagoing vessels must be made in writing. The mortgage of Vietnamese seagoing vessels shall comply with the provisions of Vietnamese law.
4. The provisions on mortgage of seagoing vessels shall also apply to the mortgage of seagoing vessels in course of building.

Article 34.- Principles of mortgage of Vietnamese seagoing vessels
1. Mortgaged seagoing vessels must not change hands, unless it is consented by the morgagees.
2. Mortgaged seagoing vessels must be covered with insurance by their owners, unless otherwise agreed upon in mortgage contracts.
3. Where the morgagee has transferred the whole or part of his/her right to the debt secured with the mortgaged seagoing vessel to another person, the mortgage of such seagoing vessel shall be also transferred in the same way.
4. A seagoing vessel may be used to secure several obligations, provided that its value is bigger than the aggregate value of the secured obligations, unless otherwise agreed upon.
The priority order of mortgages is determined on the basis of the corresponding order of registered mortgages in the Vietnam National Register of Ships.
5. The mortgage of a seagoing vessel owned by two or more owners must be consented by all the owners, unless otherwise agreed upon.
6. Where a seagoing vessel suffers from total loss, the mortgage shall terminate; the mortgagee shall be prioritized to receive the indemnity paid by the insurer for the total loss of the seagoing vessel.
7. Mortgagees shall only keep copies of seagoing-vessel registration certificates of mortgaged seagoing vessels.

Article 35.- Registration of mortgages of Vietnamese seagoing vessels
1. Registration of mortgage of a Vietnamese seagoing vessel has the following details:
a. The names and addresses of the head offices of the mortgagee and the shipowner;
b. The name and nationality of the mortgaged seagoing vessel;
c. The amount secured by the mortgage, interest rate and maturity.
2. The mortgage of a seagoing vessel shall become effective from the time it is entered into the Vietnam National Register of Ships.
3. Information on the registration of mortgages of Vietnamese seagoing vessels shall be supplied upon request.
4. Registrants of mortgages of seagoing vessels and users of information on mortgages of seagoing vessels shall have to pay fees.

 

Marine navigation safety…

Section 5. MARINE NAVIGATION SAFETY, MARINE NAVIGATION SECURITY AND PREVENTION OF ENVIRONMENTAL POLLUTION

Article 28.- Assurance of marine navigation safety, marine navigation security and prevention of environmental pollution
1. Vietnamese seagoing vessels shall only be employed for the purposes declared in the Vietnam National Register of Ships when their construction, standing appliances and equipment, certificates and documents, complement and professional competence of crew comply with the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party regarding marine navigation safety, marine navigation security and prevention of environmental pollution.
2. Seagoing vessels, when operating in Vietnamese seaport waters and seas, must observe the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party regarding marine navigation safety, marine navigation security and prevention of environmental pollution.
3. Seagoing vessels, military vessels, public duty vessels, fishing vessels, inland waterway crafts and hydroplanes, when operating in Vietnamese seaport waters and seas, must follow the instructions of marine signals and observe the rules for the prevention of collisions and regulations of the Transport Minister.
Marine signals include signals noticeable in the form of image, light, sound and radio signals established to guide the navigation of seagoing vessels.
4. In marine navigational channels, at necessary positions near the coast, on islands, in water areas where exist obstructions and other structures at sea and in seaport waters where seagoing vessels are permitted to operate, marine signals must be installed according to regulations of the Transport Minister.
Marine navigational channels are water areas delimited by the system of marine signals and other aids to ensure safety for the operation of seagoing vessels and other waterway crafts. Marine navigational channels include seaport channels and other marine navigational channels.
5. When operating in Vietnamese seaport waters and seas, seagoing vessels exclusively employed for carrying oil, oil products and other dangerous cargoes must be covered by insurance policies for civil liability of their owners for environmental pollution.
6. Foreign seagoing vessels operated by nuclear power and vessels carrying radioactive substances shall not be permitted to enter into Vietnamese seaport waters, internal waters or territorial sea unless approval is granted by the Prime Minister.

Article 29.-Inspection and supervision of marine navigation safety, marine navigation security and prevention of environmental pollution
1. Seagoing vessels, when operating in Vietnamese seaport waters, internal waters and territorial sea, shall be subject to inspection and supervision by the maritime inspectorate and port authorities of marine navigation safety, marine navigation security and prevention of environmental pollution according to the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.
2. The inspection and supervision stated in Clause 1 of this Article must be conducted in accordance with law and not affect seagoing vessel’s marine navigation safety, marine navigation security and environmental pollution prevention capability.
3. Shipowners and masters shall have to create conditions for competent state agencies specified in Clause 1 of this Article to conduct inspection and supervision of their seagoing vessels.
4. Shipowners and masters shall have to repair and remedy their seagoing vessels’ defects related to marine navigation safety, marine navigation security and prevention of environmental pollution at the request of the maritime inspectorate and port authorities.

Article 30 . – Marine search and rescue
1. When being in danger and in need of help, seagoing vessels, military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes must emit SOS signals according to regulations.
2. When detecting or receiving SOS signals from person or other vessels in distress at sea, in seaport waters, seagoing vessels, military vessels, public-duty vessels, fishing vessels, inland waterway crafts and hydroplanes must, if practical conditions permit and no serious dangers will be caused to the vessels and persons on board, help the persons in distress by all means, even if they have to deviate from the set course and promptly notify relevant organizations and individuals thereof.
3. The marine search and rescue-coordinating agency must be ready to organize and coordinate activities of searching and rescuing in time the persons in distress in search and rescue areas under their management and have the right to mobilize persons and means for the search and rescue.
4. The Transport Minister shall specify the organization and operation of the marine search and rescue-coordinating agency.

Article 31.- Investigation of marine accidents
1. Marine accidents mean accidents caused by collisions or other incidents involving seagoing vessels, resulting in loss of life, missing persons, personal injuries, damage to cargoes, luggage and property on board the seagoing vessels, to seaports and other structures and equipment, damage to the vessels; in sinking, destruction, fire, running aground of the vessels; or in environmental pollution.
2. Directors of port authorities shall organize investigations of marine accidents; if detecting any criminal signs in the course of investigation, they shall transfer the dossiers to competent investigation agencies.3. The Transport Minister shall provide in detail for the reporting and investigation of marine accidents.

 

Certificates and documents of seagoing vessels

Section 4. CERTIFICATES AND DOCUMENTS OF SEAGOING VESSELS

Article 26.-Certificates and documents of seagoing vessels
1. Seagoing vessels must have seagoing-vessel registration certificates, certificates of marine navigation safety, marine navigation security and prevention of environmental pollution according to the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.
The Transport Minister shall provide in detail for certificates and documents of Vietnamese seagoing vessels.
2. Certificates of marine navigation safety, marine navigation security and prevention of environmental pollution must show the period of their validity. This period may be extended for ninety days at most if the seagoing vessels are actually unable to call for inspection at the designated place and their practical technical conditions still ensure marine navigation safety, marine navigation security and prevention of environmental pollution. This extended duration shall expire immediately upon the seagoing vessel’s arrival at the designated port for inspection.
3. Certificates of marine navigation safety, marine navigation security and prevention of environmental pollution shall become invalid if the seagoing vessels see alterations that seriously affect their capability of ensuring marine navigation safety, marine navigation security and prevention of environmental pollution.
4. Where they have grounds to believe that seagoing vessels fail to ensure marine navigation safety, marine navigation security and prevention of environmental pollution, the maritime inspectorate and port authorities shall be entitled to suspend the operation of such seagoing vessels, conduct by themselves or request Vietnamese registry organizations to conduct technical inspection of such seagoing vessels, despite that the seagoing vessels have all certificates of marine navigation safety, marine navigation security and prevention of environmental pollution.

Article 27.-Seagoing-vessel tonnage certificates
1. Vietnamese seagoing vessels and foreign seagoing vessels, when operating in Vietnamese seaport waters or seas, must have seagoing-vessel tonnage certificates granted by Vietnamese registry organizations or competent foreign seagoing vessel tonnage measurement organizations. Seagoing-vessel tonnage certificates must comply with the provisions of Vietnamese law and treaties to which the Socialist Republic of Vietnam is a contracting party.2. In case of doubting the authenticity of seagoing-vessel tonnage certificates specified in Clause 1 of this Article, competent Vietnamese state agencies may decide on their own initiative or at the request of concerned organizations or individuals to re-inspect the capacity of seagoing vessels. In case the inspection results are incompatible with the seagoing vessel’s capacity certificates, the shipowner must incur expenses related to the re-inspection. In case the inspection results are compatible with the seagoing vessel’s capacity certificates, the competent state agencies which have decided on their own initiative on the inspection or the organizations or individuals that have requested the inspection must incur expenses related to the re-inspection.

 
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