Decree No. 163/2017/ND-CP dated December 30, 2017 of the Government on regulations on logistics services

THEGOVERNMENT

Decree No.163/2017/ND-CPdated December 30, 2017 of the Government on regulations on logistics services

Pursuant tothe Law on Government Organizationdated June 19, 2015;

Pursuant to the Law onCommercedatedJune 14, 2005;

Pursuant to the Law onInvestmentdatedNovember 26, 2014;

At the request of theMinister of Industry and Trade;

The Government hereby promulgates a Decree on provision of logistics services.

Chapter I

GENERAL PROVISIONS

Article 1. Scopeof adjustment

This Decree deals withregulations onlogistics servicesand limitations on liability of logistics service providers.

Article 2. Subject of application

This Decreeapplies tologistics serviceprovidersandrelevant organizations and individuals.

Article 3. Classification of logistics services

Logistics services include:

1. Containerhandlingservices, except for services provided at airports.

2.Container warehousing services classified as auxiliary services forseatransport.

3.Warehousing servicesclassified as all auxiliary services for multimodal transport.

4. Delivery services.

5. Freight transport agency services.

6. Customs brokerage services(including customs clearance services).

7. Other servicesincludingbill of lading inspection, cargo brokerage services,cargo inspection, sampling and weighing services; goods receipt and acceptance services; and preparation of transport documents.

8. Wholesalingauxiliaryservicesand retailing auxiliary services including management of goods in storage, and collection, collation and classification of goods and their delivery.

9.Cargo transport services classified asseatransport services.

10. Cargo transport services classified as inland waterway transport services.

11. Cargotransport services classified as rail transport services.

12. Cargo transport services classified asroadtransport services.

13. Air carriage services.

14. Multimodal transport services.

15.Technical inspection and analysis services.

16. Otherauxiliaryservicesfor transport.

17.Other services under the agreement signed between the logistics service provider and customer according to basic rules of the Law on Commerce.

Chapter II

CONDITIONS FOR PROVISION OF LOGISTICS SERVICES AND LIMITATIONS ON LIABILITY OF LOGISTICS SERVICE PROVIDERS

Article 4. Conditions for provision of logistics services

1.Providers ofany of the logistics servicesspecified in Article 3 of this Decree must satisfy conditions forprovision of such services as prescribed bylaw.

2.Regarding the provider that provides part or whole of logistic services on the Internet, cellular network or other open networks, in addition to satisfying the conditions that are applied to the services specified in Article 3 of this Decree, such provider must comply with regulations on e-commerce.

3. Conditionsto be satisfied by a foreign investor inprovision of logistics services:

In addition to complying with the conditions and regulations specified in Clauses 1 and 2 of this Article, a foreign investor in the country or territory that is a World Trade Organization member may provide logistics services under the following conditions:

a) For cargo transport services classified as sea transport services(except for inland transport):

-The foreign investormay establish companies operatingships flying Vietnamese flag or contribute capital, purchase shares or stakes in anotherenterprise, provided the holding of the foreign investor in such company does not exceed49%. Total number of foreign seafarers working on the ship flying Vietnamese flag (or registered in Vietnam) under the ownership of these companies in Vietnam shall not exceed 1/3 of the ship’s personnel. Captain or first mate must be a Vietnamese citizen.

- The foreign sea transport company may establish an enterprise or contribute capital, purchase sharesor stakes in anotherenterprise.

b)Forcontainer handling services classified asauxiliary services forsea transport (some areas may be used exclusively for provision of services or procedures for issuance of licenses may be completed in these areas),the foreign investormay establishanenterprise or contribute capital,purchase shares or stakes in another enterprise, provided the holding of the foreign investor in such company does not exceed 50%. The foreign investor may establish a commercial presence in Vietnam underabusiness cooperation agreement.

c)Forcontainer handling services classified asauxiliaryservicesfor multimodal transport, except for services provided at airports, the foreign investormay establish an enterprise or contribute capital or purchase shares or stakes in anotherenterprise, provided the holding of the foreign investor in such company does not exceed 50%.

d)Forcustoms clearance services classified asauxiliaryservicesforsea transport,the foreign investormay establish an enterprise or contribute capital or purchase shares or stakes in anotherenterprisewhich is invested in by adomestic investor. The foreign investor may establish a commercial presence in Vietnam underabusiness cooperation agreement.

dd)Forother services including bill of lading inspection, cargo brokerage, cargo inspection, sampling andweighing services; goods receipt and acceptance services; and preparation of transport documents,the foreign investormay establish an enterprise or contribute capital or purchaseshares orstakes in anotherenterprisewhich is invested in by adomestic investor.

e)Forcargo transport services classified as inland waterway transport servicesorcargo transport services classified as rail transport services, the foreign investormay establish an enterprise or contribute capital or purchase shares or stakes in another enterprise, provided the holding of the foreign investor in such company does not exceed 49%.

g)Forcargo transport services classified as road transport services,the foreign investormay provide such services underabusiness cooperation agreement or establish an enterprise or contribute capital or purchase shares or stakes in another enterprise, provided the holding of the foreign investor in such company does not exceed 51%. Alldriversof the enterprisemust be Vietnamese citizens.

h) For air carriage services provided in contravention of regulations of the law on aviation.

i) For technicalinspection and analysis services:

-Regarding the services provided to exercise authority of the Government, they may be provided by an enterprise which is invested in by a domestic investor after three years or by an enterprise in which foreign investment is not limited after five years from the date on which the private service provider is allowed to provide such services.

-It is not allowed to provide vehicle inspection services and issue certificates to such vehicles.

-The provision of technical analysis and inspection is limited in the areas determined by the competent authority for national defense and security reasons.

4.In case the foreign investor is regulated by international treaties containing different regulations on conditions for provision of logistics services, the foreign investor may select to apply investment conditions specified in one of such treaties.

Article 5. Liability limitations

1.Limitations on liability are maximum liability assumed by logistics service providers for granting compensation to customers for losses incurred during the provision of logistic services in accordance with regulations of this Decree.

2.In case limitations on liability oflogistics service providersare specified by a relevant law, such relevant law shall be complied with.

3. In case limitations on liability of logistics service providersare not specified by any law, such limitations shall be agreed upon by the parties.In case no agreement is made:

a) In case customer fails to give a prior notice of the value of cargoes, the maximum liability shall be 500 million dong for each claim for compensation.

b) In case customer gavea prior notice of the value of cargoesand this was verified by the logistics service provider,the liability shallnot exceed such value.

4.In case a logistics service provider performs multiple tasks on which different limitations on liability are imposed, the highest limitation shall apply.

Chapter III

IMPLEMENTATIONPROVISIONS

Article 6. Transitional provisions

The logistics service provider that has been registered or licensed to provide logistics services before the effective date of this Decree may continue to provide services in accordance with the registration or license.

Article 7. Effect

1.This Decree takes effect on February 20, 2018.

2.To annul the Decree No.140/2007/ND-CPdated September 05, 2007 elaborating the Law on Commerce on conditions forprovision of logistics services and limitations on liability of logistics service providersfrom the effective date of this Decree.

Article 8. Implementation organization

1.The Ministry of Industry and Trade shall implement this Decree.

2.Ministers, heads of Governmental agencies, heads of Governmental agencies, People’s Committees of provinces and central-affiliated cities are responsible for the implementation of this Decree.

For the Government

The Prime Minister

Nguyen Xuan Phuc