Circular No. 01/2004/TT-BGTVT dated Jannuary 16, 2004 of the Ministry of Transport guiding the registration of aircraft and registration of rights over aircraft

CIRCULAR

GUIDING THE REGISTRATION OF AIRCRAFT AND REGISTRATION OF RIGHTS OVER AIRCRAFT

Aiming to implement the provisions of:

- The Vietnam Civil Aviation Law of December 26, 1991 and the April 20, 1995 Law Amending and Supplementing a Number of Articles of the Vietnam Civil Aviation Law;

- The Government's Decree No. 08/2000/ND-CP of March 10, 2000 on registration of security transactions;

- The Government's Decree No. 165/1999/ND-CP of November 19, 1999 on security transactions;

- The Prime Minister's Decision No. 971/TTg of December 28, 1996 promulgating the Regulation on registration of aircraft, registration of aircraft ownership transfer and registration of civil aircraft mortgage,

The Ministry of Communications and Transport hereby guides in detail the registration of aircraft and registration of rights over civil aircraft as follows:

I. GENERAL PROVISIONS

1. In this Circular, the following terms shall be construed as follows:

1.1. "Registration of aircraft" means the registration of Vietnamese nationality of civil aircraft.

1.2. "Registration of rights over aircraft" means the registration related to the transfer of ownership right, mortgage, pledge, guarantee and contracts on lease of civil aircraft.

1.3. "Registration certificates" mean certificates granted to applicants for registration of Vietnamese nationality of civil aircraft or registration of transfer of ownership over Vietnamese civil aircraft.

1.4. "Registration certification papers" mean certification papers granted to applicants for registration of rights over civil aircraft or registration of written notices of aircraft disposal, except for cases of registration of transfer of ownership over Vietnamese civil aircraft.

1.5. "Persons named in registration" mean persons whose names are inscribed in registration certificates or registration certification papers.

1.6. "Registration applicants" mean persons who personally file applications and carry out the procedures for registration application. For each type of registration, registration applicants include:

a/ Aircraft owners or aircraft lessees, for aircraft registration.

b/ To be-owners of aircraft under contracts on transfer of aircraft ownership, for registration of aircraft ownership transfer.

c/ Securing and secured parties, for registration of mortgage, pledge of, or guarantee with, aircraft.

d/ Aircraft owners, aircraft lessors, aircraft lessees and operators, for registration of aircraft lease contracts.

e/ Parties that have met the registration requirements, for registration of extension, registration of change or correction of errors in the registered contents.

f/ Authorized persons.

1.7. "Registration deletion applicants" mean persons who file applications and carry out the procedures for registration deletion application, including:

a/ Persons named in the registration, for registration of aircraft or aircraft lease contracts.

b/ To be-owners of aircraft under contracts on transfer of aircraft ownership, for registration of aircraft ownership transfer.

c/ Securing and secured parties, for registration of mortgage, pledge of, or guarantee with, aircraft.

d/ Authorized persons.

1.8. "Information supply applicants" mean organizations or individuals that file applications for supply of information on registration of aircraft and registration of rights over aircraft.

1.9. "Applicants for registration of aircraft disposal written notices" mean secured parties in security transactions already registered for aircraft or authorized persons that file applications for registration of aircraft disposal written notices.

1.10. "Security transactions with aircrafts" mean contracts on mortgage, pledge of, or guarantee with, aircraft.

1.11. "Regulation" means the Regulation on registration of aircraft, registration of aircraft ownership transfer and registration of aircraft mortgage, promulgated together with the Prime Minister's Decision No. 971/TTg of December 28, 1996.

1.12. "Decree" means the Government's Decree No. 08/2000/ND-CP of March 10, 2000 on registration of security transactions.

1.13. "Lease or sub-lease" means the lease under financial leasing contracts or operation lease contracts according to relevant law provisions.

1.14. "Day" means a working day of the Vietnamese State administrative agencies.

2. Dossiers of registration application or applications sent to the Aviation Administration of Vietnam must be the originals or copies. Dossiers or documents in foreign languages must be translated into Vietnamese. Copies of dossiers, documents and translations thereof must be authenticated by competent agencies.

Dossiers and papers must be envelopped and sent to the Aviation Administration of Vietnam at the following address:

The Aviation Administration of Vietnam

Gia Lam Airport - Hanoi - Vietnam

3. Applicants and requesters mentioned at Points 1.6, 1.7, 1.8 and 1.9, Section I of this Circular shall have to send two dossier sets, directly or by mail, to the Aviation Administration of Vietnam. For case of authorization, letters of authorization must be enclosed with the dossiers. Within 3 days after the receipt of dossiers, if it is necessary to supplement information or further explain to clarify the dossiers, the Aviation Administration of Vietnam shall send written notices thereon to the applicants.

4. The Aviation Administration of Vietnam may refuse to make registration or supply information in the following cases:

4.1. The registration or information supply does not fall under its competence;

4.2. Dossiers of application for registration or information supply are incomplete or documents therein are invalid;

4.3. Applicants fail to pay fees and charges according to law provisions.

5. Applicants for registration and supply of information on registration of aircraft and registration of rights over aircraft must pay a fee or charge prescribed by law, together with their dossiers or applications, except for case of application for registration deletion or correction of registration errors. The fee and charge payment shall be made by one of the following modes:

5.1. Direct payment at the Aviation Administration of Vietnam;

5.2. Money transfer through postal services and sending of money transfer papers to the Aviation Administration of Vietnam;

5.3. Transfer of money into the account of the Aviation Administration of Vietnam and sending of vouchers certifying the account transfer to the Aviation Administration of Vietnam.

6. The time of registration application shall be the time when the Aviation Administration of Vietnam receives valid dossiers and fee amounts according to law provisions.

7. Registration certificates, registration certification papers and relevant papers granted by the Aviation Administration of Vietnam shall be handed over directly or sent by mail.

8. Papers evidencing the legal status of the persons named in the registration according to the provisions of the Regulation and the Decree include:

8.1. Identity cards, passports (if any) in cases where the persons named in the registration are citizens;

8.2. Business registrations in cases where the persons named in the registration are enterprises;

8.3. Establishment decisions and/or operation licenses in cases where the persons named in the registration are social organizations;

8.4. Establishment decisions in cases where the persons named in the registration are Vietnamese State agencies.

9. Documents proving the current technical conditions of aircraft must have at least the following principal contents:

9.1. Type and model of aircraft;

9.2. Place of manufacture;

9.3. Delivery date;

9.4. Delivery serial number;

9.5. Use commencement date;

9.6. Nationality and registration number (if any);

9.7. Date and place of registration certificate granting (if any);

9.8. Operation purpose(s);

9.9. Date and place of last inspection;

9.10. Total number of fight hours counting from the delivery date;

9.11. Number of flight hours after the last inspection time;

9.12. Type, model, quantity, delivery serial number and place of manufacture of aircraft engine;

9.13. Number of seats - passengers and flight crew;

9.14. Empty weight;

9.15. Maximum fueled weight;

9.16. Commercial weight;

9.17. Maximum takeoff weight;

9.18. Maximum landing weight;

9.19. Maximum flying altitude;

9.20. Maximum flying speed;

9.21. Maximum flying distance;

9.22. Regulations on maintenance modes;

9.23. Maintenance modes already conducted.

Documents proving the current technical conditions of aircraft must be certified by competent agencies.

10. When sending registration applications, the registration applicants may enclose therewith additional declarations of specifications of aircraft, aircraft engines and accompanying spare parts. Additional declarations must be signed by competent persons.

11. The information supply applicants shall have to send to the Aviation Administration of Vietnam their information supply applications made according a set form (not printed herein). Within 3 days after receiving the valid applications, the Aviation Administration of Vietnam shall provide information supply documents made according to a set form (not printed herein) to the applicants.

II. REGISTRATION OF VIETNAMESE CIVIL AIRCRAFT

1. Aircraft of organizations or individuals mentioned in Article 1 of this Regulation shall be registered in Vietnam.

2. For aircraft under joint ownership of Vietnamese organizations and/or citizens wishing to register them in Vietnam, such co-owners shall have to designate their representatives to act as registration applicants. The registration applicants shall have to send to the Aviation Administration of Vietnam the registration application dossiers enclosed with authorization papers signed by all aircraft co-owners.

3. After receiving the registration applications, the director of the Aviation Administration of Vietnam shall decide:

3.1. To permit aircraft of organizations or individuals mentioned in Article 1 of the Regulation to be registered in Vietnam. In cases where the registration is permitted according to the provisions of Clause 4, Article 1 of the Regulation, the contents of registration conditions shall be inscribed in the notes section of the registration certificates and the Vietnamese Register of civil aircraft;

3.2. Not to permit the registration of aircraft if such aircraft registration may badly affect the security, defense and interests of Vietnam according to the provisions of Clause 3, Article 2 of the Regulation.

4. The coating of paints and affixture of nationality symbols and registration symbols on aircraft according to the provisions of Clause 2, Article 3 of the Regulation must comply with the law provisions on coating of paints and affixture of symbols on aircraft. Any symbols other than the nationality symbols and registration symbols must be consented by the Aviation Administration of Vietnam before being affixed on aircraft.

5. For the purposes mentioned in Article 9 of the Regulation, the papers serving as legal grounds to prove the requirements at Points a, b and c, Clause 1, Article 4 of the Regulation include:

5.1. Certification by competent agency(ies) that the aircraft are being manufactured in Vietnam;

5.2. Certification by competent agency(ies) that the manufacture of aircraft in Vietnam is completed and certification by the Ministry of Trade permitting the manufacturers to display, exhibit or sell such aircraft in foreign countries;

5.3. Certification by countries of foreign aircraft manufacturers that the manufacture of aircraft in such countries is completed and copies of aircraft ownership transfer contracts signed between manufacturers and registration applicants.

6. For the cases mentioned in Clause 2, Article 4 of the Regulation, the registration applicants shall have to send their applications for temporary registration of aircraft enclosed with permissions of the Aviation Administration of Vietnam for such activities to be conducted. The contents of temporary registration are specified as follows:

6.1. When inscribing details of aircraft to be temporarily registered, the duration and purposes of such temporary registration shall be clearly stated in the notes section of aircraft temporary registration certificates and the Vietnamese Register of civil aircraft. The Aviation Administration of Vietnam shall decide on the temporary registration durations at requests of the registration applicants and nature of each case prescribed in Article 4 of the Regulation.

6.2. Aircraft temporary registration certificates may be extended if three (03) days before the expiry of the valid duration, the registration applicants send their extension applications to the Aviation Administration of Vietnam, made according to a set form (not printed herein), and documents proving that the activities prescribed at Points a, b and c, Clause 1, and Points a, b, c and d, Clause 2, Article 4 of the Regulation have not yet been finished.

6.3. After receiving the above-said valid dossiers, the Aviation Administration of Vietnam shall grant to the registration extension applicants certificates of aircraft registration extension (temporary), made according to a set form (not printed herein), and record them in the Vietnamese Register of civil aircraft.

6.4. Aircraft registration certificates (temporary) shall be extended only once and the extension shall not exceed the original duration already inscribed in aircraft registration certificates (temporary).

6.5. In cases where aircraft with temporary registration certificates satisfy all conditions for official registration, the persons named in the registration may apply for official registration without having to submit their dossiers and related papers already submitted upon the temporary registration.

7. Upon the deletion of aircraft registration according to the provisions of Article 7 of the Regulation, the Aviation Administration of Vietnam shall withdraw the already granted aircraft registration certificates and grant certificates of deletion of registration of Vietnamese civil aircraft.

8. Besides the papers prescribed at Point b, Clause 1, Article 8 of the Regulation, the certificates of registration of civil aircraft ownership transfer shall also be papers evidencing the aircraft ownership. The papers mentioned at Point c, Clause 1, Article 8 of the Regulation must be the originals or copies certified by competent agencies of the concerned countries.

9. The Aviation Administration of Vietnam shall consider and grant aircraft registration certificates to replace the already granted ones in case of change of persons named in the registration or the correction of errors in already granted aircraft registration certificates if there exist evidences of such change or error correction.

III. REGISTRATION OF TRANSFER OF OWNERSHIP OVER VIETNAMESE CIVIL AIRCRAFT

1. Permits for aircraft ownership transfer as prescribed in Article 15 of the Regulation contain the competent State agencies documents permitting the purchase or import of such aircraft.

2. The procedures for correcting errors in the certificates of registration of Vietnamese civil aircraft ownership transfer shall be carried out in compliance with the regulations on correction of errors in the aircraft registration certificates.

IV. REGISTRATION OF MORTGAGE, PLEDGE OF, AND GUARANTEE WITH, VIETNAMESE CIVIL AIRCRAFT

1. The registration of mortgage, pledge of, and guarantee with, aircraft shall apply in the following cases:

1.1. Aircraft which have Vietnamese nationality registration or temporary registration.

1.2. Aircraft which bear foreign nationalities but are currently leased or operated by Vietnamese organizations or individuals.

1.3. Aircraft which are assets formed in the future under the ownership of Vietnamese organizations or individuals.

2. Security transaction registration applicants shall be securing parties or secured parties or authorized persons as agreed upon by the parties. In cases where the parties fail to agree on registration applicants, the registration application obligation shall rest with the secured parties.

3. Aircraft being security assets are specified as follows:

3.1. Unless there exists a special agreement between the parties, an aircraft being a security asset consists of the aircraft body, aircraft engines and devices and equipment fitted onboard to ensure the normal operation of the aircraft, which, wherever being placed, are always considered belonging to the aircraft put for security.

3.2. In cases where it is not otherwise agreed upon by the parties in security transactions with aircraft, when the persons having the right to use or exploit aircrafts replace or interchange aircraft engines or devices and equipment for aircraft operation, an aircraft shall be considered as having included aircraft body and engines, devices and equipment currently fitted onboard.

4. The registration applicants must send to the Aviation Administration of Vietnam their dossiers of registration application, each comprises the following papers:

4.1. An application made according to a set form (not printed herein). In cases where there exist many security transactions on the same aircraft or there exists one security transaction on many aircraft, the registration applications must be made separately for each transaction or each aircraft;

4.2. Copies of the competent agency's permit for mortgage, pledge of, or guarantee with, aircraft (if any);

4.3. Copies of the contract on mortgage, pledge of, or guarantee with, aircraft;

4.4. Documents on current technical conditions of aircraft;

4.5. Copies of the contract on aircraft charter, for aircraft bearing foreign nationalities but being chartered or exploited by Vietnamese organizations or individuals.

4.6. Copies of the contract on aircraft purchase between a Vietnamese organization or individual and the aircraft manufacturer, for cases where the aircraft is an asset to be formed in the future.

5. Within three days after the receipt of the above-said valid dossiers, the Aviation Administration of Vietnam shall grant certificates of registration of security transactions with aircraft, made according to a set form (not printed herein). The time and validity of registration are prescribed in Clause 1 of Article 21, and Article 13 of the Decree.

6. The mortgage and pledge of aircraft prescribed at Point a, Clause 1, Section IV of this Circular, which have already been registered, must be fully recorded in the Vietnamese Register of civil aircraft. When so requested, the guarantee with aircraft prescribed at Point a, Clause 1, Section IV of this Circular, which have already been registered, shall also be recorded in the Vietnamese Register of civil aircraft.

7. The change of the already registered contents is prescribed as follows:

7.1. The Aviation Administration of Vietnam shall effect the change of contents in the certificates of security transaction registration according to the provisions of Article 19 of the Decree. The registration applicants shall have to send to the Aviation Administration of Vietnam their applications made according to a set form (not printed herein) and already granted certificates of security transaction registration. The registration applicants must enclose therewith documents proving such change.

7.2. Within three days after receiving the valid dossiers, the Aviation Administration of Vietnam shall grant to the registration applicants the certificates of security transaction registration to replace the already granted ones. The time of registration is prescribed at Point c, Clause 2, Article 21 of the Decree.

7.3. For cases where the aircraft being security assets are replaced, the involved parties shall have to proceed with the registration deletion and carry out the procedures for re- registration like the first-time registration.

8. The correction of errors in certificates of security transaction registration is prescribed as follows:

8.1. The Aviation Administration of Vietnam shall correct errors in certificates of security transaction registration according to the provisions of Article 20 of the Decree. The registration applicants shall have to send to the Aviation Administration of Vietnam their applications made according to a set form (not printed herein) and erroneous certificates of security transaction registration.

8.2. Within three days after receiving the valid dossiers, the Aviation Administration of Vietnam shall grant to the registration applicants new certificates of security transaction registration to replace the already granted ones. The time of registration is prescribed at Points a and b, Clause 2, Article 21 of the Decree.

9. The registration extension is prescribed as follows:

9.1. Within 6 months after the expiry of valid duration of the registration, the registration applicants shall have to file their applications for extension, made according to a set form (not printed herein). The Aviation Administration of Vietnam shall grant to the registration applicants certificates of extension of registration of security transactions with aircraft, made according to a set form (not printed herein). The procedures for extending the security transaction registration shall be applicable as for the first-time registration.

9.2. In cases where registration applicants are the secured parties, the Aviation Administration of Vietnam shall grant to the securing parties copies of certificates of extension of registration of security transactions with aircraft.

10. The deletion of registration of security transactions with aircraft shall be effected as follows:

10.1. Upon the expiry of the valid registration duration, the Aviation Administration of Vietnam shall effect the registration deletion and grant certificates of deletion of registration of security transactions with aircraft, made according to a set form (not printed herein), to the involved parties when so requested.

10.2. For case of registration deletion before the valid duration expiry: The registration deletion applicants shall have to send their applications, made according to a set form (not printed herein), to the Aviation Administration of Vietnam so that the latter shall consider and effect the registration deletion. The registration deletion before the valid duration expiry shall be effected in the following cases:

a/ Secured obligations terminate;

b/ Contracts on mortgage, pledge of, or guarantee with, aircraft are canceled;

c/ Aircraft are already disposed security assets;

d/ There exist effective decisions of Vietnamese courts on cancellation of mortgage, pledge or guarantee, or cancellation decisions of foreign courts already recognized and permitted for execution in Vietnam under decisions of competent Vietnamese courts;

e/ Mortgage, pledge or guarantee registration applicants wish to delete the registration.

10.3. The procedures for registration deletion shall comply with the provisions of Article 23 of the Decree. In cases where no agreement on persons to carry out the procedures for registration deletion is reached, the obligation to do so shall rest with the parties having applied for registration. Except for the case prescribed at Point e, Clause 10.2, Section IV of this Circular, if the registration deletion applicants are the securing parties, there must be certifications by the secured parties, which shall serve as basis for the registration deletion. After granting certificates of deletion of security transaction registration, the Aviation Administration of Vietnam shall send to the secured parties copies of such certificates.

11. The registration of written notices on disposal of security assets being civil aircraft are prescribed as follows:

11.1. The Aviation Administration of Vietnam shall make the registration of written notices on disposal of security assets being civil aircraft in compliance with the provisions of Article 26 of Decree No. 165/1999/ND-CP of November 19, 1999 on security transactions.

11.2. For the already registered security transactions with aircraft, within 7 days before the disposal of aircraft being security assets, the applicants for registration of written notices on aircraft disposal shall have to send to the Aviation Administration of Vietnam their applications, made according to a set form (not printed herein).

11.3. Within 3 days after receiving the valid applications, the Aviation Administration of Vietnam shall grant to the applicants certificates of registration of aircraft disposal written notices, made according to a set form (not printed herein).

11.4. In cases where there exist many registered security transactions with an aircraft, the Aviation Administration of Vietnam shall notify the aircraft disposal to the jointly secured parties.

V. REGISTRATION OF AIRCRAFT LEASE CONTRACTS

1. The registration of aircraft lease contracts shall be applicable to aircraft having the Vietnamese nationality registration or temporary registration.

2. When wishing to make registration, the registration applicants shall have to send to the Aviation Administration of Vietnam their dossiers of registration application, each comprises the following papers:

2.1. An application made according to a set form (not printed herein);

2.2. Copy of the aircraft lease contract which has taken legal effect;

2.3. Documents proving that the aircraft lease contract has taken effect.

3. Within 3 days after receiving the above-said valid papers, the Aviation Administration of Vietnam shall grant certificates of registration of aircraft lease contracts, made according to a set form (not printed herein), and record the details thereof in the Vietnamese Register of civil aircraft.

4. In cases where it is necessary to register the correction of errors in certificates of registration of aircraft lease contracts, the registration applicants shall have to send to the Aviation Administration of Vietnam their applications, made according to a set form (not printed herein) and enclosed with the already granted certificates of registration of aircraft lease contracts.

5. In cases where it is necessary to register the renewed or extended certificates of registration of aircraft lease contracts, the application applicants shall have to send to the Aviation Administration of Vietnam their applications, made according to a set form (not printed herein), documents proving the renewal or extension of certificates of registration of aircraft lease contracts, enclosed with the granted certificates of registration of aircraft lease contracts.

6. Within 3 days after receiving the applications, the Aviation Administration of Vietnam shall renew, correct errors in or extend certificates of registration of aircraft lease contracts. Depending on each case, the Aviation Administration of Vietnam may grant to the applicants new certificates of registration of aircraft lease contracts to replace the already granted ones or certificates of extension of registration of aircraft lease contracts, made according to a set form (not printed herein).

7. The deletion of registration before the expiry of the valid duration shall be effected as follows:

7.1. When wishing to delete the registration of aircraft lease contracts before the expiry of such contracts or where such aircraft lease contracts terminate ahead of time, the registration deletion applicants shall have to send to the Aviation Administration of Vietnam their applications, made according to a set form (not printed herein).

7.2. Within 3 days after receiving the valid applications, the Aviation Administration of Vietnam shall grant to the registration deletion applicants certificates of deletion of registration of aircraft lease contracts, made according to a set form (not printed herein).

VI. ORGANIZATION OF IMPLEMENTATION

1. The Aviation Administration of Vietnam shall have to:

1.1. Organize the registration of aircraft and rights over aircraft;

1.2. Keep, manage and record information on the registration of aircraft and rights over aircraft in the Vietnamese Register of civil aircraft;

1.3. Supply information on the registration of aircraft and rights over aircraft at requests;

1.4. Report on the registration of aircraft and rights over aircraft according to law provisions.

2. This Circular takes effect 15 days after its publication in the Official Gazette.

2.1. To annul Circular No. 92/CAAV of January 13, 1997 of the Civil Aviation Administration of Vietnam guiding the implementation of the Regulation on registration of aircraft, registration of aircraft ownership transfer and registration of civil aircraft mortgage, promulgated together with the Prime Minister's Decision No. 971/TTg of December 28, 1996 and the regulations on registration of aircraft lease contracts in Regulation No. 826/CAAV of April 29, 1994 of the director of the Civil Aviation Administration of Vietnam on management of leasing activities related to airway transportation in Vietnam.

2.2. Pursuant to Clause 1, Article 6 and Article 27 of Decree No. 08/2000/ND-CP of March 10, 2000 on registration of security transactions, the registration of mortgage, pledge of, and guarantee with, civil aircraft shall be adjusted and subject to the provisions of the above-said Decree and this Circular.

3. Any problems arising in the course of implementation of this Circular should be promptly reported by the concerned organizations and individuals to the Ministry of Communications and Transport for specific guidance and solution.