Laws of Vietnam

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on Inland Waterway Cargo Transportation, Handling, Consignment and Preservation.

Article 2.- This Decision shall replace Decision No. 1035 QD/VT of June 12, 1990 of the Minister of Communication, Transport and Post, and take effect 30 days after its signing.

Article 3.- The directors of the Office, the Legal Department, the Vietnam Inland Waterway Bureaus as well as of the provincial/municipal Communications and Transport Services (the Communications and Public Works Services), the heads of concerned agencies and organizations as well as relevant individuals shall have to implement this Decision.

For the Minister of

Communications and Transport

Vice Minister

Chapter I

GENERAL PROVISIONS

Article 1.- Purposes, objects and scope of application

1. Purpose: This Regulation prescribes the business principles for the inland waterway cargo transportation, handling, consignment and preservation and defines the rights and responsibilities of concerned organizations and individuals.

2. Objects of application: This Regulation shall apply to organizations and individuals of all economic sectors, including foreign organizations and individuals licensed to deal in the transportation, handling, consignment and preservation of goods in the Socialist Republic of Vietnam.

3. Scope of application: This Regulation shall apply to the transportation, handling, consignment and preservation of goods on the inland waterways in the Socialist Republic of Vietnam, and to the domestic and international transshipment of goods if it is not contrary to the international agreements which Vietnam has signed or acceded to.

The transportation, handling, consignment and preservation of dangerous goods shall comply with separate regulations.

Article 2.- Interpretation of terms

In this Regulation, the terms below shall be construed as follows:

1. "The carrier" means organization and/or individual that use their own inland waterway means or hire the means owned by others to do business in cargo transportation on inland waterways.

2. "The shipping hirer" means organizations and/or individuals that sign contracts for transportation of goods by inland waterway means.

3. "The goods handler, consignor, consignee and preserver" means organizations and/or individuals that signed contracts for goods handling, consignment and preservation at inland waterway ports and docks (hereinafter referred collectively to as ports).

4. "The hirer of goods handling, consignment and preservation" means organizations and/or individuals that sign contracts for goods handling, consignment and preservation.

5. "The goods consignor" means the person who personally deliver goods to the carrier and sign his/her name in the bill of lading.

6. "The goods consignee" means organizations and/or individuals that receive goods stated in the bill of lading.

7. "The means charterer" means organizations and/or individuals that sign contracts for the charter of means to organize the transportation.

8. "The agents" mean organizations or individuals that are authorized to conclude or perform contracts for goods transportation, handling, consignment and/or preservation. The authorizer may assign work in whole or in part and pay the authorized person(s) the agency commission agreed upon by the two parties in the contract, if it is not prescribed by law.

9. "The bill of lading" constitutes the evidence showing that the carrier has already received goods for transportation; the voucher for freight payment and the legal basis for settlement of disputes over cargo in the course of transportation.

10. "Superweight cargo" means the type of cargo in package, which cannot be knocked down and weigh from 20 tons upwards (except for container).

11. "Supersize cargo" means the type of cargo which measures more than 12 meters in length or more than 4 meters in width or more than 3.5 meters in height.

12. "Force majeure cases" mean cases which occur due to natural calamities, enemy sabotage, transport route obstruction.

13. "Dangerous cargo" means toxic, inflammable and explosive substances, which cause danger to human beings, means and environment.

Article 3.- Conclusion of contracts

1. Contracts must be concluded for all business activities of cargo transportation, handling, consignment and preservation as well as other relevant services according to the law provisions on contracts before such activities are carried out.

2. Parties may agree in the contract on the participation in insurance by each party.

Chapter II

CARGO TRANSPORTATION

Article 4.- Papers needed in the transportation process

1. The carrier shall have the responsibility to fully prepare all relevant papers on the means as prescribed by the current legislation.

2. The shipping hirer shall have to prepare all papers of legal validity on cargo. In case of hiring the transport of rare and precious cargo, the shipping hirer must buy insurance for the cargo.

3. After loading cargo on the means, the carrier shall have to make the bill of lading at least in 3 copies, one copy shall be handed to the shipping hirer, one to the goods consignee and one shall be kept by the carrier. In case of need, the carrier may make 1 to 2 more copies.

4. The bill of lading must contain the following principal contents:

- The carrier;

- The shipping hirer;

- The goods consignee;

- Place of goods consignment and consignor;

- The place of goods delivery;

- Type of goods to be transported (the goods characters, quantity, volume, quality and value);

- Freight and other expenses (if any);

- The carrier’s confirmation of the status of goods to be transported.;

- Other details which the carrier and the shipping hirer agree to inscribe in the bill of lading.

Information concerning the cargo inscribed in the bill of lading shall be provided by transport hirer. The shipping hirer shall take full responsibility for the accuracy of such information. If the shipping hirer makes inaccurate declaration and report, thus causing damage, he/she shall have to bear full responsibility therefor.

5. In the course of transportation, if the papers are inadequate or invalid, thus causing damage, the party related to the papers shall be accountable therefor.

Article 5.- Conditions on cargo transport means

1. The carrier shall have to prepare means which fully meet the safety conditions under the current regulations and suit the type of cargo to be transported.

2. The shipping hirer may reject the means if it fails to meet all the conditions agreed upon in the contract.

3. The means shall take in and return cargo at ports permitted by the competent bodies, except for cases prescribed in Article 8 of this Regulation.

Article 6.- The relationship between the carrier and the shipping hirer at ports.

1. Means arriving at ports for goods loading and unloading

Before the means arrive at a port and when the means has fulfilled the procedures for port entry, the carrier shall have to notify the shipping hirer thereof. The time for notification shall be agreed upon by the two parties in the contract.

2. Goods loading and unloading:

a/ The carrier shall ready means and nominate people to join the goods consignor and consignee.

b/ The shipping hirer shall nominate representative to consign cargo at the means.

c/ Depending on the ports’ handling capacity, the carrier and the shipping hirer shall agree on the time for the release of the means and inscribe such in the contract.

d/ The time for release of means shall be counted from the time the carrier completes the procedures for port entry and notify the shipping hirer thereof to the time the procedures for cargo delivery and reception are completed. If the means stays at the port beyond the prescribed time limit, the shipping hirer shall have to bear all expenses for the waiting. The expense level shall be agreed upon by the two parties in the contract.

e/ In the course of cargo loading and unloading, the carrier shall have to provide guidance in order to ensure safety of the means and cargo during the transportation process.

3. Handling cases where the goods consignees are not available.

When goods have been transported to the arrival ports and the consignees are not available, the carrier shall notify this to the shipping hirer. Within 48 hours after receiving such report (according to the postal date), if the consignee does not come, the carrier shall invite representatives of responsible bodies to witness the making of record thereon and organize the unloading and preservation of goods in order to release the means. Later, the carrier shall send notice to the shipping hirer once every 5 days, up to 15 days for goods easy to decay; and once every 20 days, up to 60 days for ordinary goods.

Past the above-mentioned time limits, if the shipping hirer fails to reply, the carrier shall make the record thereof to the witness of the local administration and put such goods on auction according to the law provisions on auction of property. The proceeds from the auction of such goods, after subtracting all relevant expenses, shall be deposited into the "account of money under control or kept for other" at the bank where the carrier opens the account. Within 180 days from the date the goods are auctioned, the carrier shall return the remaining amount of such money to the shipping hirer or the goods consignee if so requested by the latter. Past the above-said time limit, if nobody makes such request, the carrier shall have to remit such remaining amount of money into the State budget of the province or centrally-run city where the goods were auctioned.

4. When there is a change of the goods consignee or the place of goods delivery, the two parties shall negotiate and make appendix attached to the contract.

Article 7.- Transportation

1. The time limit for transportation shall be calculated from the time the carrier complete the procedures for port departure till the time the means completes the procedures for arrival port entry and notify this to the shipping hirer.

The carrier shall have to ensure the transportation time limit agreed upon by both parties in the contract; if failing to do so without plausible reasons, the carrier shall have to compensate for the damage caused to the shipping hirer.

2. In the course of transportation, if the means have to stop for inspection by competent bodies, the party at fault, based on the conclusion of the inspecting bodies, shall have to bear all arising losses. Where the officials and employees of the inspecting bodies are at fault when conducting the inspection, such bodies shall have to request their officials and employees to compensate for damage as prescribed by law.

3. Where it is necessary to have the goods escorter onboard the means, such must be agreed upon by the parties in the contract. The shipmaster shall create favorable conditions for the escorter to fulfill his/her tasks.

Article 8.- Handling cases which occur in the course of transportation

1. In the course of transportation, if crew members discover that goods may get burning, leaking or broken, the carrier shall have to promptly seek preventive measures to protect goods and the means and at the same time to make the minutes thereof with certification by the local administration or the waterway traffic police and notify such to the shipping hirer. All arising costs shall be borne by the party at fault. If both parties are not at fault, the arising costs and losses shall be borne by both parties.

2. Where force majeure cases occur in the course of transportation, the shipmaster, if deeming that safety shall not be ensured, may hire people to unload a part or all the goods ashore and organize the preservation of goods (with certification of the local administration or waterway traffic police), then inform the shipping hirer thereof; all arising costs shall be jointly borne by both parties.

3. Where in the course of transportation the carrier detects that the goods are not compatible to the categories the shipping hirer has declared:

a/ If they are neither dangerous goods nor goods banned from circulation, the carrier shall notify such to the shipping hirer and continue carrying them to the place of discharge; all arising costs (if any) shall be borne by the shipping hirer.

b/ If they are dangerous goods or goods banned from circulation, the carrier shall have to report such to the functional bodies for handling and at the same time notify the shipping hirer thereof. The shipping hirer, besides having to bear all arising costs, shall also be subject to a fine trebling the freight amount.

4. Where on its way a means is requisitioned on the order of the competent body, the shipmaster shall notify this to the shipping hirer. If the means is compelled to carry goods of the category not suitable to the means, the carrier shall be exempt from all liabilities if damage is caused, the requisition body shall have to pay for all costs and damage incurred due to the requisition.

5. Obstruction of transportation routes

If a transportation lane is obstructed due to force majeure cases thereby the means cannot continue its journey, the carrier shall have to immediately notify it to the shipping hirer. Within 36 hours at most after receiving such notification (according to the postal date), the shipping hirer shall have to reply and discuss handling measures with the carrier:

a/ If the two sides agree to move the means to the nearest place of goods delivery (change of arrival port), the carrier may collect freight for the distance the means has actually convered;

b/ If the two sides agree to move the means back to the port of departure, the carrier may only collect freight for the already covered distance (excluding the return trip), the shipping hirer shall bear the costs of unloading goods ashore and of the waiting (if any);

c/ If the goods are transshipped across the obstructed point, the shipping hirer shall have to undertake the transshipment and bear all costs; the carrier may collect freight for the distance from the departure port to the obstructed place.

36 hours after receiving the report (according to the postal date), if the shipping hirer fails to reply, it shall be considered that the shipping hirer agrees to moor the means in waiting for the route obstruction clearance and bear all arising costs. The carrier shall find a safe place to anchor the means, waiting therefor.

Article 9.- Goods not compatible to the volume and category already informed and confirmed by the shipping hirer

1. If the goods are neither available nor in full volume as already notified and confirmed, the shipping hirer shall have to notify this to the carrier in advance at least 48 hour from the date and hour the means is requested to come and take up the goods. If failing to make the advance notice or having notified such in advance less than 48 hours, the shipping hirer shall have to compensate for all arising costs to the carrier.

2. The shipping hirer may change the to-be transported goods inscribed in the contract but shall have to notify such to the carrier in advance at least 48 hours from the date and hour the means is requested to come and take up the goods; the failure to reply by the carrier means his/her consent. If the shipping hirer fails to inform the carrier or make an advance notice less than 48 hours and the means has arrived at the place of goods consignment but failed to get such type of goods, the shipping hirer shall have to compensate for all relevant costs to the carrier.

3. If the carrier fails to arrange means of the right type and the right tonnage as agreed upon in the contract, he/she shall have to notify this in advance to the transport hirer at least 48 hours from the time of goods consignment inscribed in the contract. If failing to make the advance notice or to come for the transport of goods, the carrier shall have to compensate for relevant damage caused to the shipping hirer.

4. The carrier and the shipping hirer may reach agreements other than those mentioned above, which shall be indicated in the contract.

Article 10.- Execution of orders on emergency transportation

Where the means has to carry goods on the urgent order of the competent body, the carrier shall have to implement it not later than 12 hours after receiving such order. The body issuing the order shall have to promptly settle matters relating to the execution of the order, including expenses for the carrier.

Chapter III

CONTRACTS ON MEANS LEASE FOR BUSINESS PURPOSE

Article 11.- Means-leasing contracts

A means-leasing contract is the one signed between the means lessor and the means lessee, hereinafter referred collectively to as the contractual parties, thereby the means lessee use the means for dealing in the cargo transportation within a given period of time or for a certain number of shipment. The means leasing price shall be agreed upon by the two parties in the contract, if not otherwise set by the competent State body.

Where a cargo transportation dealer hires a foreign means, the approval of the Ministry of Communications and Transport is required.

Article 12.- Forms of means leasing

There are the following means-leasing forms:

1. Limited means leasing: The lessor shall assign the right to use the means to the lessee together with the crew;

2. The ceiling means leasing: The lessor shall assign the right to use the means to the lessee without the crew.

Article 13.- Obligations of the contractual parties

The parties to a means-leasing contract shall have the following obligations:

1. The means lessor:

a/ To assign the means together with valid papers thereof to the means lessee according to the time, place and technical status inscribed in the contract;

b/ In case of the limited means leasing, to provide the crew members with degrees suited to the type of means according to regulations, to perform the labor management and take full responsibility for matters related to such crew;

c/ To pay for the repair of means if the damage arises beyond the means lessee’s liabilities.

2. The means lessee:

a/ To use the means strictly according to its utility and for the right purpose already agreed upon in the contract;

b/ To provide the maintenance for the means and other equipment, if not otherwise agreed upon in the contract;

c/ Upon the expiry of the means-leasing contract, to return the means at the right place, the right time and in the right technical status as agreed upon.

Article 14.- Rights of the contractual parties

The contractual parties shall have the following rights:

1. The means lessor:

a/ In case of the ceiling means leasing, to be entitled to nominate their representatives to conduct extraordinary inspection of the fulfillment of obligations by the means lessee but without affecting the business activities of the means lessee;

b/ To be entitled to recover the means and terminate the contract if the means lessee seriously breaches the terms agreed upon in the contract by both sides.

2. The means lessee:

a/ To be entitled to use the means and its crew for the attainment of the purposes already agreed upon in the contract;

b/ Where the means is requisitioned on the order of the competent body, to notify this to the means lessor and have the right to request the body ordering the requisition to use the means strictly according to its utility and to pay charges and surcharges incurred by the requisition.

Article 15.- Termination of contract

1. The two parties shall terminate the contract if the means is missing, sunk, confiscated or irreparably damaged, and the party at fault shall have to compensate for the damage.

2. A means-leasing contract shall automatically terminate if a war or natural calamity occurs, rendering it unable to be continuously performed. The two parties shall determine the duration for which the means was used in order to make payment.

Chapter IV

CARGO HANDLING

Article 16.- Obligations of the cargo handlers and the cargo handling hirers

1. Obligations of the cargo handlers

a/ To organize the loading and unloading in order to release the transport means according to the time limit prescribed in the signed contract;

b/ If the handlers fail to handle the goods as agreed upon in the contract with the handling hirer, the former shall have to make compensation to the latter according to the signed contract;

c/ To ensure safety of cargo and the means in the course of handling.

2. Obligations of the handling hirer:

a/ To inform the cargo handlers of the estimated time of the goods’ arrival at the port and determine the quantity of goods going through and being kept in warehouses or storing yards. When the handling hirer has already notified and confirmed but neither the representatives of goods consignor and consignee nor the goods are available, the former shall have to bear all relevant costs;

b/ To provide the handlers with technical documents, necessary dossiers and the requirements on safety of the cargo so that the latter shall prepare plans for handling;

c/ To nominate the representatives for goods consignment from the time the goods are loaded and/or unloaded to the time the loading and/or unloading are completed and certified with signature(s).

Chapter V

GOODS CONSIGNMENT AND PRESERVATION

Article 17.- Goods packages and labels and marks.

1. All kinds of cargo bags, boxes, packages and cases must be durable and convenient for carriage as well as loading and unloading.

2. All kinds of cargo bags, boxes, packages and cases must be fully, accurately and clearly inscribed with their signs, codes and weights without getting faded and/or smudged in the process of transportation, loading and unloading.

3. For goods containers, the registration numbers must be clear, the lead seals remain intact and the containers must satisfy the prescribed technical conditions.

4. If the goods have unclear signs and codes and are not firmly packed, the carrier and/or the handlers may refuse to transport and/or handle them. The shipping hirer and the handling hirer shall have to bear all relevant costs.

Article 18.- Modes of goods consignment

Based on the transport permit, the carrier and the goods consignee shall deliver and receive goods according to the principle: goods received by a certain mode shall be returned by such mode. Following are some common modes of goods consignment:

1. Consignment according to quantity, weight, volume through checking methods of counting, weighing and/or measuring. The checking through counting must ensure that the bags, boxes, cases, packages remain intact. If the packages remain intact, the carrier shall not be responsible for the weight and status of the goods therein.

2. Consignment according to goods holds, after the delivery of goods to the carrier, the shipping hirer shall lead-seal the holds to the witness of the carrier. When the goods are returned, if the lead seal remains intact, the carrier are considered as having fully returned the goods. If the lead seal does not remain intact, the carrier shall be held accountable therefor unless he/she can prove that he/she is not at fault.

3. Consignment according to lead-sealed containers.

4. Consignment according to the water-line on the ship sides, which requires measuring tools as prescribed. The means must have the tonnage book granted by the registry. The measurement of the means’ water-line shall have to comply with the current regulations of the Ministry of Communications and Transport.

When goods are consigned by modes 2 and 3, if the lead seals do not remain intact due to incidents which have occurred during the course of transportation, the carrier shall have to make a record thereof with the certification of the competent body, and have to preserve the cargo.

Where the handling of cargo is ceased in order to settle disputes over goods consignment, the party at fault shall have to bear all arising costs.

Article 19.- Implementation of goods consignment

1. Goods are consigned free alongside ships or in front of warehouses or at storing yards.

2. On the same shipment, the carrier and the shipping hirer may agree on the consignment of goods at one or several ports. The freight and arising costs shall be agreed upon in the contract by the carrier and the shipping hirer.

Article 20.- Goods diminution

The determination of goods diminution rates shall have to comply with the State’s current regulations. For kinds of goods lacking the State’s regulations thereon, the two parties shall agree in the contract; if no agreement can be reached, the shipping hirer shall have to send people on escort and the carrier shall be exempt from liability.

Article 21.- Preservation of goods in the course of transportation

The carrier shall have to preserve goods throughout the transportation. If goods are lost, damaged or diminished beyond the prescribed limits, the carrier shall have to compensate the shipping hirer therefor, except where the latter sends people to escort the goods.

Article 22.- Preservation of goods at port warehouses and/or storing yards

1. The goods preservation hirer may only deposit his/her goods into port warehouses and/or storing yards after signing a contract for goods preservation.

2. The hirer of goods preservation in port warehouses and/or storing yards shall have to pay the warehousing charges agreed upon by the two contracting parties.

3. If goods deposited in port warehouses and/or storing yards are lost or damaged within the prescribed contractual time limit, the goods preservation undertaker shall have to compensate the preservation hirer therefor at the market prices at the time and place where the goods are lost or damaged.

4. Where the goods have been kept in warehouses and/or storing yards beyond the duration prescribed in the preservation contract, if the preservation undertaker wishes to have them removed and collected, he/she shall have to notify this in advance to the preservation hirer. Within 15 days after receiving such notification (according to the postal date and hour), if the preservation hirer does not reply, the preservation undertaker may remove and collect the goods and the preservation hirer shall have to bear all costs of the removal and collection of such goods.

5. People with goods to be preserved may negotiate the rent of the port’s warehouses or storing yards for preservation by themselves.

Article 23.- Dealing with goods damaged or kept in warehouses/storing yards beyond the prescribed time limits.

1. When detecting signs of deterioration of goods deposited in the port warehouses and/or storing yards, the preservation undertaker shall have to seek measures for timely treatment and immediately notify the preservation hirer thereof. If within 72 hours after the receipt of such news (according to the postal date and hour) the preservation hirer does not reply, the preservation undertaker may invite the competent body to come for making the record thereof and the handling; the preservation hirer shall have to bear all arising costs.

2. In the course of loading and/or unloading, if the packages get torn or broken below the limits prescribed in the contract, the cargo handling hirer shall have to collect the goods, repack them and bear all arising costs. If the torn or broken parts are beyond the prescribed contractual limits, the party at fault shall have to bear all the arising costs for the excess percentages.

3. If goods are deposited at port warehouses and/or storing yards beyond the time limits prescribed in the contract, the preservation undertaker shall handle them according to the provisions in Clause 3, Article 6 of this Regulation.

Chapter VI

CHARGES, SURCHARGES AND PAYMENT THEREOF

Article 24.- Charges and surcharges

Charges and surcharges of cargo transportation, handling, consignment and preservation must be based on the current price brackets set by the State; where the price bracket is not available, the parties shall reach agreement thereon and inscribe it in the contract.

Article 25.- Payment mode and time limits

1. The modes of payment: Based on the State’s regulations, the parties shall select appropriate payment mode and inscribe it in the contract.

2. The payment time limits:

a/ The shipping hirer shall have to pay in advance at least 50% of the transportation charge and surcharge to the carrier after the latter completely receive the goods and shall have to make full payment immediately after the carrier has completely returned the goods;

b/ The handling hirer shall have to pay in advance at least 50% of the handling charges and surcharges to the handler. After the goods handling is completed, the handling hirer shall have to make the full payment of the charges, surcharges and other arising costs;

c/ The goods preservation hirer shall have to pay in advance at least 50% of the amount for warehouse and/or storing yard renting and goods preservation hiring after all the goods are placed into the port warehouse(s) and/or storing yard(s). After all the goods are removed from the warehouse(s) and/or storing yard(s), the preservation hirer shall have to make the full payment of the amount for warehouse and/or storing yard renting and goods preservation hiring;

d/ If the hirer of goods transportation, loading/unloading or preservation makes payment later than the time limits stipulated at Points a, b and c of this Clause, the interest on the late paid amount must be paid according to the interest rate set by the State Bank of Vietnam at the time of payment;

e/ The carrier, the cargo handler, the goods preserver and the hirer of the goods shipping, handling and/or preservation may reach agreements other than those prescribed above but have to specifically indicate them in the contract.

Chapter VII

COMPENSATION, REWARDS, PENALTIES, CONTRACT LIQUIDATION AND COMPLAINTS

Article 26.- Compensation

1. In the course of goods transportation, handling, consignment, the party that breaches the contract shall have to compensate for the damage caused to the other party by such breach. The goods loss, damage or diminution beyond the prescribed limits must be compensated for at the market prices at the time and place of goods delivery.

If the goods are partially damaged or lost, the compensation for such damaged or lost part shall be made. Where such loss or damage leads to the unusability of the entire goods, the compensation for such entire goods shall be made. The compensator shall be entitled to use such goods.

2. Parties shall be exempt from compensation in the following cases:

a/ It is due to force majeure causes.

b/ The means, equipment and human resources are mobilized for salvage and rescue mission or requisitioned for other tasks.

3. Minutes of compensation disputes.

In the course of cargo transportation, handling, consignment and/or preservation, if any incident happens thus affecting the benefits of the parties, the record thereof must be made on the spot. The record must clearly state the time, place, cause(s), on-the-scene objective phenomena and subjective phenomena concerning the incident, which shall serve as bases for the settlement of disputes.

The record, after being made, must be handed over to the involved parties, each a copy.

Article 27.- Rewards, penalties

The parties may agree in their contract on rewards for highly efficient performance of the contract or stipulate the levels of penalty for breaches of the contract.

Article 28.- Complaints

If damage is caused, the damage sufferer shall have to send his/her/its request for compensation to the damage causer within 30 days after the complete delivery and reception of goods. Past such time limit, all request for compensation shall become invalid. Within 15 days after receiving the request for compensation (according to the postal date), the damage causer shall have to reply the damage sufferer about whether or not the compensation request is accepted.

Within 60 days from the date the damage sufferer sends the compensation request, the two parties shall have to negotiate and settle the case. If the two parties cannot reach any agreement, the damage sufferer may send his/her/its written request to the economic arbitration or economic court for dispute settlement according to the provisions of law.

The damage compensation value is calculated according to the market prices at the time and the place the incident occurred. If the compensation payment is delayed, the compensator shall have to pay the interest on the late paid amount at the interest rate set by the State Bank of Vietnam.

For the Minister of

Communications and Transport

Vice Minister