Circular 54/2018/TT-BGTVT on the charge bracket at Vietnamese seaports

THEMINISTRY OF TRANSPORT

CircularNo. 54/2018/TT-BGTVT dated November 14, 2018 of the Ministry of Transporton the charge bracket for pilotage, wharf, dock and mooring buoy utilization, container handling and towage servicesat Vietnamese seaports

Pursuant to the Vietnam Maritime Code dated November 25, 2015;

Pursuant to the Law on Prices dated June 20, 2012;

Pursuant to the Government’s Decree No. 146/2016/ND-CP dated November 02, 2016 on publishing of freights and surcharges of ocean container shipping and seaport charges;

Pursuant to the Government’s Decree No. 149/2016/ND-CP dated November 11, 2016 on amendments to some Articles of the Government s Decree No. 177/2013/ND-CP dated November 14, 2013 on guidelines for implementation of some Articles of the Law on Prices;

Pursuant to the Government’s Decree No. 12/2017/ND-CP dated February 10, 2017 defining functions, tasks, entitlements and organizational structure of the Ministry of Transport;

At the request of the Director of the Department of Transportation and the General Director of Vietnam Maritime Administration;

The Minister of Transport hereby promulgates a Circular on the charge bracket for pilotage, wharf, dock and mooring buoy utilization, container handling and towage services at Vietnamese Seaports.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of adjustment and subjects of application

1. This Circular provides for charge bracket for seaport services, which includes charges for pilotage service; charges for utilization of wharfs, docks and mooring buoys; charges for container handling services; charges for towage services (hereinafter referred to as “seaport service charges”).

2. This Circular applies to Vietnamese and foreign organizations and individuals related to provision and use of services at Vietnamese seaports.

Article 2. Definitions

1. “Vessel” means a vehicle operating above or under water surface, including ships and boats, and others with or without any engine.

2. “Special purpose vessel used in petroleum industry” (hereinafter referred to as “the oil vessel”) means a vessel that serves petroleum exploration and extraction or engages in activities related to petroleum industry.

3. “Tugboat” means a boat designed and registered to tow and assist vessels in entering and leaving wharfs, docks and mooring buoys.

4. “Gross Tonnage (GT)” means the maximum total capacity of a vessel shown in the certificate of volume issued by a registry to the vessel as prescribed.

5. “Exports” mean commodities whose place of delivery (origin) is Vietnam and place of receipt (destination) is overseas.

6. “Imports” mean commodities whose place of delivery (origin) is overseas and place of receipt (destination) is Vietnam.

7. “Transshipped commodities” mean merchandise carried from abroad to a seaport of Vietnam and preserved in a transshipment area of the seaport in a certain period before being loaded onto and carried by a vessel out of Vietnam’s territory.

8. “Commodities in transit” mean merchandise whose place of delivery (origin) and place of receipt (destination) are outside Vietnam’s territory and which pass through or are handled at a seaport of Vietnam or are stored in a warehouse to continue their excursion.

9. “Pilotage trip” means a maritime pilot’s continual maneuvering of a vessel from the position at which the pilot boards the vessel to the position at which he disembarks as per regulations.

10. “Visit” means a vessel’s one entry into and subsequent exit from a maritime zone, which is considered one visit.

11. “Waterway route between a mainland’s coast and an island” means a waterway route of transport between a mainland’s coast and an island in a territorial water of Vietnam, which is made public as prescribed by law.

12. “Seaport service charge bracket” means a range from minimum and maximum charges for a seaport service.

Article 3. Vessels and passengers on which service charges are levied

1. The service charges shall be levied on the following international maritime vessels and the passengers aboard:

a) Vessels that enter, exit, transit or anchor in maritime zones; and the foreign vessels that operate at Vietnamese seaports;

b) Vessels that carry imports, exports, commodities transshipped or in transit in maritime zones;

c) Passenger vessels departing from Vietnam for a foreign country or vice versa; special purpose vessels which operate on international voyages entering, exiting, transiting or anchoring in maritime zones;

d) Imports, exports, commodities transshipped or in transit that are loaded, unloaded, delivered, preserved and stored in maritime zones;

dd) Passengers on passenger vessels departing from a foreign country to Vietnam (or vice versa) by sea or by inland waterway through maritime zones.

2. The service charges shall be levied on the following domestic marine vessels:

a) Domestic marine vessels that enter, exit, pass through or anchor in maritime zones;

b) Domestic maritime vessels that carry cargoes and passengers enter, exit, pass through or anchor in maritime zones;

c) Vessels that operate on waterway routes between mainland’s coasts and islands within the territorial waters of Vietnam;

d) Domestic cargoes that are loaded, unloaded, delivered, preserved and stored in maritime zones;

e) Oil vessels which operate at offshore platforms and at the ports specialized in petroleum industry (hereinafter referred to as “petroleum ports”) under the management of a maritime port authority.

3. Service charges shall not be levied on state-owned vessels that are special purpose vessels which are used to perform official public duties for non-commercial purposes in accordance with regulations of this Circular.

4. Charges for pilotage service and utilization of wharfs, docks and mooring buoys shall not be levied on vessels that enter or leave a port to avoid storms or transfer people in distress at sea without commodity handling, discharge or embarkation of passengers, provided that the event is confirmed by the port authority; vessels that participate in rescue and salvage or in combating against a storm, flood or natural disaster under an order or endorsement of a competent government authority.

Article 4. Principles of seaport service pricing

1. The seaport service charge bracket is defined by general pricing method for goods and services prescribed in the law on prices and other relevant regulations of law.

2. The providers of seaport services shall specify their charges according to the charge bracket in accordance with applicable laws on seaport service pricing, the service quality and the market conditions.

3. The charges in the charge bracket defined in this Circular are exclusive of value added tax.

4. The providers of seaport services shall use invoices as prescribed by law upon levying charges.

Article 5. Currency

1. The charges for pilotage service, utilization of wharfs, docks and mooring buoys, container handling services and towage service shall be levied on international vessels in Vietnam Dong or United States Dollar.

2. The charges for pilotage service, utilization of wharfs, docks and mooring buoys, container handling services and towage service shall be levied on domestic vessels in Vietnam Dong.

3. The conversion of United States Dollar to Vietnam Dong shall be made as prescribed by law.

Article 6. Pricing unit and number rounding

1. Gross tonnage (GT) is one of the basic units for pricing of seaport services, where:

2. For the vessels whose GT is not specified, the conversion method that results in the highest GT shall be incorporated. To be specific:

a) Ocean-going ships and self-propelled inland waterway vehicles: 1.5 deadweight tons is counted as 01 GT;

b) Barges: 01 deadweight tonne equals 01 GT;

c) Tugboats, passenger vessels (including seaplanes) and crane vessels: 01 horse power (HP, CV) is counted as 0.5 GT; 01 kW is counted as 0.7 GT; 01 tonne in a crane vessel’s hoisting capacity is counted as 06 GT;

d) Passenger vessels whose engine power is not specified: 01 passenger seat is counted as 0.67 GT; 01 berth is counted as 04 GT;

dd) The gross tonnage of all barges, towboats or tugboats in a fleet of tugboats, towboats or pusher boats shall total up that of the fleet;

3. Unit of engine power: The unit of a vessel’s main engine power shall be HP, CV or KW. The tenths in the decimal expansion of 01 HP, 01 CV or 01 KW shall be rounded to 01 HP, 01 CV or 1 KW.

4. Unit of time:

a) Day: 01 day equals 24 hours; an amount of 12 hours or less is counted as half a day while an amount of more than 12 hours is counted as 01 day;

b) Hour: 01 hour equals 60 minutes; an amount of 30 minutes or less is counted as half an hour while an amount of more than 30 minutes is counted as 01 hour.

5. The unit of mass of commodity (with packing) is tonne or cubic meter (m³); and an amount of less than 0.5 tonne or 0.5 m³is not counted while an amount of 0.5 tonne or 0.5 m³or higher is counted as 01 tonne or 01 m³. The minimum mass of commodity in a single bill of lading, on which the fee is chargeable, shall be 01 tonne or 01 m³. For a commodity whose every tonne of mass occupies at least 02 m³, every 02 m³equals 01 tonne.

6. The unit of distance is nautical mile (NM) and an amount of less than 01 NM is counted as 01 NM.

7. The pricing unit for a wharf, dock or mooring buoy is meter (m) of the wharf, dock or mooring buoy. An amount of less than 01 m is counted as 01 m.

Article 7. Division of seaport regions

Regarding container handling services and towage service, Vietnam’s seaport system is divided into 03 following regions:

1. Region I: seaports located on 20 degrees north latitude, including seaports in Quang Ninh, Hai Phong, Thai Binh, Nam Dinh.

2. Region II: seaports located between 11.5 degrees latitude and 20 degrees latitude, including seaports in Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan.

3. Region III: seaports located on 11.5 degrees south latitude, including seaports in Ho Chi Minh city, Ba Ria - Vung Tau, Dong Nai, Binh Duong, Tien Giang, Ben Tre, Dong Thap, Can Tho, An Giang, Vinh Long, Ca Mau, Kien Giang, Long An, Soc Trang and Tra Vinh.

Chapter II

CHARGE BRACKET FOR PILOTAGE, WHARF, DOCK AND MOORING BUOY UTILIZATION, CONTAINER HANDLING AND TOWAGE SERVICES AT SEAPORTS

Section 1. CHARGE BRACKET FOR PILOTAGE SERVICE

Article 8. Pilotage service charge bracket levied on domestic vessels

1. The charge bracket for pilotage service below is defined for the following routes and types of vessel:

2. Specific provisions:

a) A carrier has to notify the pilotage organization at least 06 hours prior to its use of the maritime pilotage service. The pilotage organization shall be informed of a change to the time of pilotage or the cancellation of the service request at least 03 hours prior to the expected time of pilotage.

b) When making a change to the time of pilotage or cancelling a request for pilotage in less than 03 hours prior to the expected time of pilotage, the carrier shall incur a wait charge of VND 20.000/person/hour; In case of both pilot and vessel, the wait charges are VND 200,000/person and vessel/hour. In case the pilot has not yet departed, the duration of wait is 01 hour. In case the pilot departed and the duration of wait starts upon departure until the pilot s return to the original position, the minimum duration of wait is 01 hour. A pilot shall only wait at the vessel pickup position in no more than 04 hours after the requested time of pilotage. The request of pilotage service shall be deemed cancelled after such wait time and the vessel shall be subject to 80% of the charge for pilotage service commensurate with the requested distance of pilotage according to the charge bracket defined in this Article;

c) If the pilot has boarded the vessel but cancel the request of pilotage service, the vessel shall be subject to 80% of the charge for pilotage service commensurate with the requested distance of pilotage according to the charge bracket defined in this Article;

d) If the pilot is retained after completing the pilotage, the captain of the vessel shall incur an additional wait charge for the duration during which the pilot is retained;

dd) The charge for pilotage service for a vessel on a voyage to test its machinery or to calibrate its compass shall be 110% of that defined in the charge bracket in this Article;

e) In the event an owner of the vessel (excluding passenger vessels) that has entered and exited 1 maritime zone on at least 04 visits in 1 month, the vessel’s 4th visit in the same month shall be subject to the pilotage service charge which is 80% of that defined in the charge bracket in this Article;

g) In the event an owner of the vessel that caries passengers into and out of 1 maritime zone on at least 04 visits in 1 month, the vessel’s 4th visit shall be subject to the pilotage service charge which is 50% of that defined in the charge bracket in this Article for such passenger vessel in the relevant month; however, the charge shall not be lower than the minimum charge on 1 vessel for 1 pilotage trip according to the charge bracket in Clause 1 of this Article;

h) The owner of a vessel that does not voyage straight to the port and demands to anchor midway (except for the routes on which night voyage is not allowed) shall incur an additional charge for transporting the pilot. The transport charge must not exceed VND 300.000/vessel/transport;

i) The pilot shall pay a wait charge of VND 250.000/hour, for the actual number of hours during which a vessel is kept waiting, to the owner of the vessel if such vessel arrives at the pilot wait position punctually and a representative of the owner obtains an approval from the port authority but the pilot is absent and keeps the vessel waiting;

k) If the pilot arrives at the position of appointment but the vessel is inoperable due to force majeure and such event is confirmed by the port authority, the charge equals the minimum charge on 01 vessel for 01 pilotage trip pursuant to Clause 1 of this Article;

Article 9. Pilotage service charge bracket levied on international vessels

1. The charge bracket for pilotage service below is defined for the following routes and types of vessel:

2. The charges for pilot service provided beyond Clause 1 of this Article, on Vung Ro routes (Phu Yen province), at sand transshipment zones (Binh Dinh province, Phu Yen province), Duyen Hai (Tra Vinh province), Ba Ngoi (Khanh Hoa province) are defined below in progressive order:

3. Specific provisions:

a) A carrier has to notify the pilotage organization at least 06 hours prior to its use of the maritime pilotage service and at least 24 hours prior to its use of the pilotage service at an offshore oil rig. The pilotage organization shall be informed of a change to the time of pilotage or the cancellation of the service request at least 03 hours or 08 hours, if the service proceeds at an offshore platform, prior to the expected time of pilotage;

b) The carrier shall incur a wait charge of USD 10/person/hour when making a change to the time of pilotage or cancelling a request for pilotage in less than 03 hours or less than 08 hours, if the service proceeds at an offshore platform, prior to the expected time of pilotage. In case of both pilot and vessel, the wait charges are USD 20/person and vessel/hour. In case the pilot has not yet departed, the duration of wait is 01 hour. In case the pilot departed and the duration of wait starts upon departure until the pilot s return to the original position, the minimum duration of wait is 01 hour. A pilot shall only wait at the vessel pickup position in no more than 04 hours after the requested time of pilotage. The request of pilotage service shall be deemed cancelled after such wait time and the vessel shall be subject to 80% of the charge for pilotage service commensurate with the requested distance of pilotage according to the charge bracket defined in this Article;

c) If the pilot is retained after completing the pilotage, the captain of the vessel shall incur an additional wait charge for the duration during which the pilot is retained;

d) The charge for pilotage service for a vessel on a voyage to test its machinery or to calibrate its compass shall be 110% of that defined in the charge bracket in Clauses 1 and 2 of this Article and shall be subject to the actual distance of pilotage;

dd) The charge for pilotage service for a vessel that is inoperable due to technical issues shall be 150% of that defined in the charge bracket in Clauses 1 and 2 of this Article and shall be subject to the actual distance of pilotage;

e) The charge for pilotage service requested ad hoc (beyond Points a, b, c, d and dd of this Clause) shall be 110% of that defined in Clauses 1 and 2 of this Article and shall be subject to the actual distance of pilotage;

g) The charge for pilotage service in the event that the pilot has arrived at the proper position but the vessel is inoperable due to force majeure (with a confirmation of the port authority) shall be USD 300/vessel/pilotage trip;

h) A carrier that does not voyage straight to the port and demands to anchor midway (except for the routes on which night voyage is not allowed) shall incur an additional charge for transporting the pilot. The transport charge must not exceed USD 30/vessel/pilotage transport;

i) The pilot shall pay a wait charge of USD 100/hour, for the actual number of hours during which a vessel is kept waiting, to the owner of the vessel if such vessel arrives at the pilot wait position punctually and a representative of the owner obtains an approval from the port authority but the pilot is absent and keeps the vessel waiting;

k) In the event that a vessel (except passenger vessels) has entered and exited a maritime zone on more than 3 visits per vessel per month, its 4th visit in the same month shall be subject to the charge for pilotage which is 80% of that defined in Clauses 1 and 2 of this Article; however, the charge for a pilotage trip shall not be lower than USD 300;

l) An owner of the vessels that carry passengers into and out of 1 maritime zone on at least 04 visits in 1 month shall incur the pilotage service charge that is 50% of that defined in the charge bracket in Clauses 1 and 2 of this Article for such passenger vessels in the relevant month; however, the charge for a pilotage trip shall not be lower than USD 300;

m) The charge for pilotage for a passenger vessel of 50,000 GT and upwards, upon its entry into and departure from a maritime zone, shall be 40% of that defined in the charge bracket in Clauses 1 and 2 of this Article; however, the charge for a pilotage trip shall not be lower than USD 300;

n) The charge for pilotage for a vessel that moves between the wharfs in a port at the request of the director of the port company equals that for domestic maritime vessels moving inside a port as prescribed in Article 9 of this Circular;

o) The charge for pilotage for an oil carrier in Van Phong bay - Khanh Hoa shall be 50% of that defined in Clauses 1 and 2 of this Article. This regulation is applied until December 31, 2020;

p) The charge for pilotage for a vessel that enters and exits a maritime zone for fuel, food, drinking water, crew replacement, repair, dismantling or test run shall be 70% of that defined in Clauses 1 and 2 of this Article provided that it does not load or unload commodities or does not embark or disembark passengers after being repaired or newly built;

Article 10. Determination of pilotage service charge

1. The maritime pilotage service charge is levied per pilotage trip and is the result of a multiplication of the pilotage service charge specified in Articles 8 and 9 of this Circular, the distance of pilotage and the gross tonnage of a vessel. Regarding Points 5 and 6 Clause 1 of Article 8 and Points 4 and 5 Clause 1 of Article 9, the maritime pilotage service charge is the result of a multiplication of the pilotage service charge and the gross tonnage of a vessel.

2. If the pilotage service charge calculated as prescribed in Clause 1 of this Article is lower than the minimum charge for a pilotage trip, the minimum charge for a pilotage trip defined in Article 8 and Article 9 of this Circular applies.

3. Gross tonnage (GT) is one of the basic units for pricing of pilotage service, where:

a) The gross tonnage of a vessel carrying liquid cargo shall be 85% of the maximum GT shown in the certificate that the relevant registry issued to the vessel as per regulations, regardless of the availability of segregated ballast tanks on such vessel;

b) The gross tonnage of a passenger vessel shall be 50% of the maximum GT shown in the certificate that the relevant registry issued to the vessel as per regulations;

Section 2. CHARGE BRACKET FOR UTILIZATION OF WHARFS, DOCKS AND MOORING BUOYS

Article 11. Charge bracket for utilization of wharfs, docks and mooring buoys levied on domestic vessels, cargoes and passengers

Article 12. Charge bracket for utilization of wharfs, docks and mooring buoys levied on international vessels, cargoes and passengers

Article 13. Determination of charge for utilization of wharfs, docks and mooring buoys

1. Vessels mooring at multiple positions in dedicated waters inside of maritime zones of a seaport shall incur a charge equal to total actual length of time that they moor at a single position.

2. A vessel that is prevented from cargo handling due to bad weather conditions for a period of more than 01 day (24 consecutive hours) or concedes its wharf space to another vessel under an order of the director of the port authority shall be exempted from charges for the period of time over which such vessel is not in the process of cargo handling.

3. In the event a vessel that is not an oil vessel enters a petroleum port for cargo handling, Points 1, 2, 3, 4 and 5 of Section I, Section II Article 1 and Points 1, 2, 3, 4 and 5 of Section I, the entire section II Article 12 of this Circular shall be complied with.

4. Gross tonnage (GT) is one of the basic units for pricing of charges for utilization of wharfs, docks and mooring buoys, where:

a) The gross tonnage of a vessel carrying liquid cargo shall be 85% of the maximum GT shown in the certificate that the relevant registry issued to the vessel as per regulations, regardless of the availability of segregated ballast tanks on such vessel;

b) The gross tonnage of a passenger vessel shall be 100% of the maximum GT shown in the certificate that the relevant registry issued to the vessel as per regulations.

5. The charge bracket levied on passengers proceeding through a wharf, dock or mooring buoy as prescribed in this Article shall not be levied on children under the age of 12.

Section 3. CHARGE BRACKET FOR CONTAINER HANDLING SERVICES

Article 14. Charge bracket for container handling services in Region I

1. Charge bracket for domestic container handling services

Unit: VND/container

2. Charge bracket for container handling during import, export, temporary import and re-export (not applicable to Lach Huyen international port)

Unit: USD/container

3. Charge bracket for container handling during transshipment and transit (not applicable to Lach Huyen international port)

Unit: USD/container

4. Charge bracket for container handling during import, export, temporary import and re-export, applicable to Lach Huyen international port

a) Charge bracket for container handling during import, export, and temporary import and re-export, which is applicable to Lach Huyen international port from January 01 to December 31, 2019 inclusive

Unit: USD/container

b) Charge bracket for container handling during import, export, and temporary import and re-export, which is applicable to Lach Huyen international port from January 01, 2020

Unit: USD/container

5. Charge bracket for container handling during transshipment and transit, applicable to Lach Huyen international port

a) Charge bracket for container handling during transshipment and transit, which is applicable to Lach Huyen international port from January 01 to December 31, 2019 inclusive

Unit: USD/container

b) Charge bracket for container handling during transshipment and transit, which is applicable to Lach Huyen international port from January 01, 2020

Unit: USD/container

6. Charge bracket for handling of containers from vessels (badges) to port’s yards and vice versa, which only applies to container handling in service of carriage between seaports for export and transfer to destination seaport

Unit: USD/container

Article 15. Charge bracket for container handling services in Region II

1. Charge bracket for domestic container handling services

Unit: VND/container

2. Charge bracket for container handling during import, export, temporary import and re-export

Unit: USD/container

3. Charge bracket for container handling during transshipment and transit

Unit: USD/container

Article 16. Charge bracket for container handling services in Region III

1. Charge bracket for domestic container handling services

Unit: VND/container

2. Charge bracket for container handling during import, export, temporary import and re-export (not applicable to Cai Mep - Thi Vai port and ports in the Mekong Delta)

Unit: USD/container

3. Charge bracket for container handling during transshipment and transit (not applicable to Cai Mep - Thi Vai port and ports in the Mekong Delta)

Unit: USD/container

4. Charge bracket for container handling during import, export, temporary import and re-export, applicable to Cai Mep - Thi Vai port

Unit: USD/container

5. Charge bracket for container handling during transshipment and transit, applicable to Cai Mep - Thi Vai port

Unit: USD/container

6. Charge bracket for container handling during import, export, temporary import and re-export, applicable to ports in the Mekong Delta.

Unit: USD/container

7. Charge bracket for container handling during transshipment and transit, applicable to ports in the Mekong Delta

Unit: USD/container

8. Charge bracket for handling of containers from vessels (badges) to port’s yards and vice versa, which only applies to container handling in service of carriage between seaports for export and transfer to destination seaport.

Unit: USD/container

Article 17. Determination of charge for container handling services

1. The charges for container handling services specified in Articles 14, 15 and 16 of this Circular shall be levied on common freight containers.

2. The handling service charge bracket levied on oversized and overloaded freight containers, containers that carry dangerous cargo and containers subject to special handling and storage requirements must not exceed 150% of that specified in Articles 14, 15 and 16 of this Circular. In the cases where the seaport enterprise has to provide additional specialized equipment to serve cargo handling, the charge for utilization of additional specialized equipment shall be negotiated and agreed upon by both parties.

Section 4. CHARGE BRACKET FOR TOWAGE SERVICE

Article 18. Charge bracket for towage service in Region I

1. Charge bracket for towage service levied on domestic vessels

Unit: VND/hour

2. Charge bracket for towage service levied on international vessels

Unit: USD/hour

Article 19. Charge bracket for towage service in Region II

1. Charge bracket for towage service levied on domestic vessels

Unit: VND/hour

2. Charge bracket for towage service levied on international vessels

Unit: USD/hour

Article 20. Charge bracket for towage service in Region III

1. Charge bracket for towage service levied on domestic vessels

Unit: VND/hour

2. Charge bracket for towage service levied on international vessels

Unit: USD/hour

Article 21. Determination of charge for towage service

1. The charge for towage service shall be calculated as follows:

a) The towage service provider shall provide tugboats with quantity and power prescribed in the regional seaport regulation. The charge for a towage trip is the result of a multiplication of the towage charge specified in Articles 18, 19 and 20 of this Circular and the actual towing time.

b) The actual towing time begins from the time the towing vessel starts towing, tugging or pushing the towed vessel to the time such towage is completed at the request of the captain of the towed vessel and the pilot. The towing time that is less than 01 hour shall be rounded to 01 hour. The towing time shall be certified by the captain of the towed vessel or the pilot who guides such vessel;

c) In case of provision of a tugboat with the quantity and power higher than the level prescribed in seaport regulation of the regional maritime port authority, the towage service provider shall calculate the charge for towage service according to the quantity and power of the tugboat prescribed in seaport regulation of the regional maritime port authority and charge bracket;

d) In case of provision of a tugboat with the quantity and power higher than the level prescribed in seaport regulation of the regional maritime port authority at the request of the port authority, pilot, captain or shipping line, the towage service provider shall calculate the charge for towage service according to the quantity and power of the tugboat;

dd) If the towage service fails to satisfy the vessel’s demands for entry into to a port, the charterer is entitled to sign another towage contract.

e) If the towage service fails to satisfy the vessel’s demands for entry into to a port, the towage service provider shall maneuver a tugboat from another area to the towing position. The charge for tugboat maneuver shall be agreed upon by the two parties but must not exceed 70% of charge bracket for towage service according to this Circular and the actual number of hours of maneuver;

g) If the towage service provider provides a tugboat that fails to satisfy power requirement in accordance with the seaport regulation and at least 02 tugboats have to be used, the charge for towage service shall be calculated according to the charge bracket corresponding to the tugboat power in accordance with the seaport regulation.

2. For the Azimuth tugboat, the charge must not exceed 150% of the charge bracket for towage service defined in Articles 18, 19 and 20 of this Circular.

3. If the tugboat arrives at the towed vessel pickup position punctually at the request of towed vessel owner and an approval from the port authority is obtained but the vessel to be towed is absent and keeps the tugboat waiting, the charterer shall incur a wait charge of 50% of the charge bracket specified in Articles 18, 19 and 20 of this Circular according to the actual number of hours during which a vessel is kept waiting.

4. If the tugboat arrives at the towed vessel pickup position punctually at the request of charterer and an approval from the port authority is obtained but the vessel to be towed is not ready to be maneuvered and the tugboat has to return to the departure position or has to be used for other purposes, the charterer shall incur a wait charge of 50% of the charge bracket specified in Articles 18, 19 and 20 of this Circular according to the actual number of hours of maneuver.

Chapter III

IMPLEMENTATION

Article 22. Effect

1. This Circular takes effect on January 01, 2019.

2. The Decision No. 3863/QD-BGTVT dated December 01, 2016 and Decision No. 3946/QD-BGTVT dated December 09, 2016 of the Minister of Transport are repealed.

Article 23. Implementation

1. The Vietnam Maritime Administration shall organize the implementation of this Circular.

2. In the cases where the change to pricing factors makes the seaport service charges fall below or rise above the maximum charge in the charge bracket specified in this Circular, the seaport service provider shall propose changes to seaport service charges to the Vietnam Maritime Administration, which will request the Minister of Transport to consider amending this Circular.

3. In the cases where a wharf or dock is built to serve international passenger vessels (not including cargo vessels), the seaport enterprise shall propose service charges to the Vietnam Maritime Administration, which will request the Minister of Transport to consider amending this Circular.

4. Chief of the Office of the Ministry, Chief inspector of the Ministry, General Directors of General Departments, General Director of the Vietnam Maritime Administration, heads of organizations and individuals concerned are responsible for the implementation of this Circular./

For the Minister
The Deputy Minister
Nguyen Van Cong