Circular No. 38/2017/TT-BTC dated April 28, 2017 of the Ministry of Finance guiding the payment of costs of repatriation of seafarers

THEMINISTRY OF FINANCE

Circular No. 38/2017/TT-BTC dated April28, 2017of the Ministry of Finance guiding the payment of costs ofrepatriation of seafarers

Pursuant to the Maritime Code of VietnamNo.95/2015/QH13 dated November 25, 2015by the National Assembly;

Pursuant to the Government’s Decree No. 121/2014/ND-CP dated December 24, 2014elaboratingcertain articles of the Maritime Labor Convention in 2006 with respect of working conditions for seafarers on board a ship;

Pursuant to the Government’s Decree No. 215/2013/ND-CP dated December 23, 2013 defining Functions, Tasks, Powers and Organizational Structure of Ministry of Finance;

Pursuant to Decision No. 119/2007/QD-TTg datedJuly 25, 2007by the Prime Ministeron the establishmentoftheFund for Assisting Overseas Vietnamese Citizens and Legal Entities;

At the request of Director of Department of Public Expenditure;

Minister of Finance promulgates this Circular to provideguidance on payment ofcosts ofrepatriationofseafarers.

Chapter I

GENERAL PROVISIONS

Article 1. Scopeof adjustment and subject of application

1. Scopeof adjustment:

This Circular provides guidance on payment of costs of repatriation of seafarers who work on board Vietnamese-flagged ships (other than military ships, public vessels and fishing vessels) operating on international voyages under regulations in the Maritime Code of Vietnam in 2015; defines ship-owners’ responsibility to cover cost of repatriation of their seafarers and responsibility of competent authorities of Vietnam to arrange for repatriation of seafarers.

2.Subject of application:

a)Seafarers working on board Vietnamese-flagged shipsoperating on international voyages;

b)Owners ofVietnamese-flagged ships operating on international vogages;

c) Competent authorities, entities and individuals involved in arrangements for reparation ofseafarers working on board Vietnamese-flagged ships.

Chapter II

COST OF REPATRIATION OF SEAFARERS AND FINANCIAL SECURITY PROVIDED BY SHIP-OWNERS TO COVER REPATRIATION COST

Article 2. Cost of repatriation of seafarers covered by ship-owners

1.Ship-owners are responsible for making arrangements for repatriation of seafarers in cases prescribed in Clause 2 Article 61 and Clause 1 Article 66 of the Maritime Code of Vietnam and making full payment of cost of repatriation as regulated by law.

In case seafarers themselves arrange for repatriation, the costs incurred by repatriating seafarers shall be recoverable from the ship-owner according to spending contents prescribed in Clause 2 of this Article.

2.The costs to be borne by the ship-owner for repatriation include:

a) The cost of passage to the repatriation destination as specified in the contract.

b) The cost of accommodation and food from the moment the seafarer leaves the ship until he reaches the repatriation destination. The payment of accommodation and food cost shall be made according to actual invoices provided that the sum shall not exceed the levels prescribed in Decision No.43/2012/QD-TTgdated October 12, 2012 bythe Prime Ministeron change of heading and amendments to Article 1 of Decision No.234/2005/QD-TTgdated September 26, 2005 bythe Prime Ministeron particular policies for workers and officials working in certain sectors at state-owned enterprises.

c) Thepay and travel allowance from the moment the seafarer leaves the ship until he reaches the repatriation destination. The above pay and travel allowance shall be paid under provisions in the signed contract.

d) The cost of transportation of up to 30 kg of the seafarer’s personal luggage to the repatriation destination according to actual invoice.

dd) The cost of medical treatment when necessary until the seafarer is medically fit to travel to the repatriation destination according to actual invoice.

Article 3.Financial securityto assure payment ofrepatriation costto seafarers

1.Ship-owners shall provide financial security toensure thepayment of repatriation cost to seafarers.

Ship-owners are required to obtain the bank guarantee forthe payment of repatriation cost to seafarers.In case a ship-owner is financially incapable or is unable to make full payment of the cost of repatriation to seafarers, the credit institution or the branch of foreign bank that gives guarantee to the ship-owner shall make payment of the cost of repatriation to seafarers. In such case, the ship-owner is considered as debtor and assumes responsibility to pay debt to such credit institution or the branch of foreign bank under regulations of the law on bank guarantee.

2.The guarantee fee shall be subject to the agreement between the credit institution or the branch of foreign bank and the ship-owner. Guarantee fee may be charged on each ship or entire ships owned by a ship-owner.

Chapter III

ARRANGEMENTS FOR REPATRIATION OF SEAFARERS BY COMPETENT AUTHORITIES, COST FINALIZATION AND RECOVERY OF COST PAID BY THE FUND FOR ASSISTING OVERSEAS VIETNAMESE CITIZENS AND LEGAL ENTITIES

Article 4. Arrangements for repatriation of seafarers by competent authorities

1.If a ship-owner fails to make arrangements for and pay the cost of repatriation of seafarers, the ship-owner may request competent authorities of Vietnam in the host country to arrange for repatriation of seafarers.

2.In case where the time limit for repatriation specified in the employment contract is over but the ship-ownerfails to make arrangements foror to meetthe cost of repatriation of seafarers, seafarers concerned may requestcompetent authorities of Vietnam in the host country to arrange forand pay costs ofrepatriation of seafarers.

Article 5.Authorities competent to arrangefor repatriation of seafarers  

1.Authorities that have the power to arrange for repatriation of seafarers are Representative Missions of Vietnam in foreign countries under regulations in the Law on Representative Missions ofthe Socialist Republic of Vietnamin foreign countries dated June 18, 2009 (hereinafter referred to as “Overseas Missions”).

2.Funds for making arrangements for repatriation of seafarers shall be advanced from theFund for Assisting Overseas Vietnamese Citizens and Legal Entities(or "FAOV" for short) after the ship-owner has paid a deposit or made a written commitment to refund the cost of repatriation of seafarers or the ship-owner presents the written bank guarantee of a credit institution of a branch of foreign bank for ensuring payment of such costs.

Advancing the money from the FAOV to cover the cost of repatriation of seafarers shall be made under regulations in the Circular No.92/2013/TT-BTCdated July 08, 2013 byMinistry of Financeproviding for financial management of theFund for Assisting Overseas Vietnamese Citizens and Legal Entities.

3. Ship-ownersare responsible for refunding the FAOV costs of repatriation of seafarers paid by the FAOV. In case a ship-owner fails to make such payment,the credit institution or the branch of foreign bankthat gives guarantee to such ship-owner shall assume responsibility to make payment of cost of repatriation to the FAOV.

4.Applications for repatriation are sent to Overseas Missions under regulations adopted by Minister of Foreign Affairs.

Article 6. Finalization of cost

Based on actually completed tasks, the Overseas Missions shall prepare and send accounting dossier to the FAOV, including: The application for repatriation made by the seafarer concerned; the written request for cost finalization enclosed with spending contents and receipts under regulations herein.

Article 7. Recovery of costs paid by the FAOV

1.Within 10 working days from the receipt of the notice of recovery of cost of repatriation of seafarers from the FAOV, the ship-owner concerned shall make full payment of cost of repatriation of seafarers according to the FAOV’s notice by bank transfer to the following account of the FAOV:

-Account name:Fund for Assisting Overseas Vietnamese Citizens and Legal Entities.

-Address: 40 Tran Phu Street, Ba Dinh District, Hanoi City.

-Telephone:04.38489064.

-Account in VND:122 0202 005 149,opened at Agribank – Long Bien Branch; address: 562 Nguyen Van Cu Street, Long Bien District, Hanoi City.

2. In case a ship-owner fails to make paymentof cost of repatriation of seafarers according to the FAOV’s notice,the FAOV shall send a written request tothe credit institution or the branch of foreign bank that gives guarantee to such ship-owner to make payment ofsuchcost. Within 10 working days from thereceipt of the FAOV’s written request for paymentof cost of repatriation of seafarers, the the credit institution or the branch of foreign bankmust make full payment ofcost of repatriation of seafarersas requested by the FAOV.

3.The late payment or failure to make payment shall be handled in accordance with regulations in Clause 4 Article 5 ofthe Circular No. 92/2013/TT-BTC dated July 08, 2013 by Ministry of Finance providing for financial management of the Fund for Assisting Overseas Vietnamese Citizens and Legal Entities.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 8. Cooperation between relevant competent authorities

1. Ministry of Transport

a) Disseminate obligations and responsibility of ship-owners for assuring the repatriation of Vietnamese seafarers to ship-owners under regulations in this Circular and other relevant laws.

b) Instruct theVietnam Maritime Administrationto timely verify information concerning ship-owners and seafarers to serve the repatriation of seafarers and provide to Overseas Missions upon their request.

2. Ministry of Foreign Affairs

a) Promulgate regulations on application and procedures for repatriation of seafarers.

b) Instruct Overseas Missions to timely conduct procedures for making arrangements for repatriation of seafarers upon the receipt of their application for repatriation.

3. Ministry of Finance:

Ensure the operating funding of the FAOV under prevailing regulations.

Article 9. Effect

1. This Circular takes effectonJuly 01, 2017.

2. If referredlegislativedocuments specified in this Circular are amended or superseded, the new ones shall be applied.

3.Any difficultiesarising in the course ofimplementation of this Circular should be reported to the Ministry of Finance for consideration./.

For  the Minister

The Deputy Minister

Tran Xuan Ha