Decree No. 37/2017/ND-CP dated April 04, 2017 of the Government on conditions for commercial operation of seaports

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Decree No. 37/2017/ND-CP dated April 04, 2017 of the Government on conditions for commercial operation of seaports
Issuing body: GovernmentEffective date:
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Official number:37/2017/ND-CPSigner:Nguyen Xuan Phuc
Type:DecreeExpiry date:Updating
Issuing date:04/04/2017Effect status:
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Fields:Navigation , Transport

SUMMARY

Conditions for commercial operation of seaports

 

On April 04, 2017, the Government issued the Decree No. 37/2017/ND-CP on conditions for commercial operation of seaports; port enterprises may commercially operate seaports only after obtaining a certificate of eligibility for commercial operation of seaports; port enterprises shall commercially operate seaports in conformity with announced use purposes and functions of seaports; port enterprises shall maintain all conditions prescribed in this Decree and other relevant laws throughout the period of commercial operation of seaports.

At the same time, enterprises must satisfy all the conditions for commercial operation of seaports such as organizational structure and personnel; physical foundations and equipment; occupational safety and health, fire and explosion prevention and fighting; on environmental protection. Within that, the person in charge of the section managing commercial operation of seaports must possess a university or higher degree in maritime shipping, economics or trade and have at least 5 years’ experience in commercial operation of seaports; enterprises must have sufficient physical foundations, storage space and necessary equipment and devices in conformity with national technical regulations on seaports; in case of insufficient storage space, port enterprises shall sign contracts to lease storage space for at least 5 years, except cases of commercially operating floating terminals, anchorage zones, transshipment zones or offshore oil ports.

Particularly, the Decree also requires that In case a foreign-invested port enterprise wishes to provide cargo handling services, it may only establish a joint-venture enterprise in which the foreign holding rate must comply with the Vietnam’s Schedule of Commitments to the World Trade Organization (WTO).

This Decree takes effect on July 1, 2017. Port enterprises which have commenced commercial operation of seaports before the effective date of this Decree may continue their business but must meet the conditions prescribed in this Decree as from July 1, 2020.
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Effect status: Known

THE GOVERNMENT
 
 
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
No. 37/2017/ND-CP
 
Hanoi, April 4, 2017
 
DECREE
On conditions for commercial operation of seaports[1]
 
Pursuant to the June 19, 2015 Law on Organization of the Government;
Pursuant to the December 8, 2015 Maritime Code of Vietnam;
Pursuant to the November 26, 2014 Investment Law and the Law Amending and Supplementing Article 6 and Appendix 4 of the Investment Law Regarding the List of Sectors and Trades Subject to Conditional Business Investment;
Pursuant to the November 26, 2014 Enterprise Law;
At the proposal of the Minister of Transport;
The Government promulgates the Decree on conditions for commercial operation of seaports.
 
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
This Decree prescribes conditions for commercial operation of seaports, including seaports, wharves, piers, floating terminals, anchorage zones, transshipment zones and offshore oil ports (below referred to as seaports).
Article 2. Subjects of application
This Decree applies to organizations and individuals engaged in commercial operation of seaports in Vietnam.
Article 3. Interpretation of terms
In this Decree, the terms below are construed as follows:
1. Commercial operation of a seaport means activities to directly operate a seaport. 
2. Port enterprise means an enterprise commercially operating a seaport.
Article 4. Principles of commercial operation of seaports
1. Port enterprises may commercially operate seaports only after obtaining a certificate of eligibility for commercial operation of seaports under this Decree.
2. Port enterprises shall commercially operate seaports in conformity with announced use purposes and functions of seaports.
3. Port enterprises shall maintain all conditions prescribed in this Decree and other relevant laws throughout the period of commercial operation of seaports.
Chapter II
CONDITIONS FOR COMMERCIAL OPERATION OF SEAPORTS
Article 5. Conditions on enterprises
1. Port enterprises shall be established in accordance with the law on enterprises.
2. In case a foreign-invested port enterprise wishes to provide cargo handling services, it may only establish a joint-venture enterprise in which the foreign holding rate must comply with the Vietnam’s Schedule of Commitments to the World Trade Organization (WTO).
Article 6. Conditions on organizational structure and personnel
1. Conditions on organizational structure:
a/ Having a section for management of the commercial operation of seaports;
b/ Having a section for management of maritime security issues according to regulations;
c/ Having a section or personnel in charge of occupational safety and health in accordance with regulations.
2. Conditions on staff:
a/ The person in charge of the section managing commercial operation of seaports must possess a university or higher degree in maritime shipping, economics or trade and have at least 5 years’ experience in commercial operation of seaports;
b/ Seaport security officers must have been trained and possess certificates in accordance with the Ministry of Transport’s regulations and the International Ship and Port Facility Security (ISPS) Code;
c/ The person in charge of occupational safety and health must have been trained in and possess certificates of fire prevention and fighting and occupational safety and health in accordance with regulations.
Article 7. Conditions on physical foundations and equipment
1. Having sufficient physical foundations, storage space and necessary equipment and devices in conformity with national technical regulations on seaports; in case of insufficient storage space, port enterprises shall sign contracts to lease storage space for at least 5 years, except cases of commercially operating floating terminals, anchorage zones, transshipment zones or offshore oil ports.
2. Port enterprises must have adequate cargo handling equipment, special-use equipment, vehicles and other necessary equipment to serve cargo handling and other operations in conformity with the announced functions and use purposes of seaports.
Article 8. Conditions on occupational safety and health, fire and explosion prevention and fighting
1. Having sufficient employees and plans to ensure occupational safety and health as prescribed in the Government’s Decree No. 39/2016/ND-CP of May 15, 2016, detailing a number of articles of the Law on Occupational Safety and Health and the Government’s Decree No. 37/2016/ND-CP of May 15, 2016, detailing and guiding the implementation of a number of articles of the Law on Occupational Safety and Health regarding compulsory occupational accident and disease insurance.
2. Meeting conditions on fire prevention and fighting and having fire fighting plans in accordance with the Government’s Decree No. 79/2014/ND-CP of July 31, 2014, detailing a number of articles of the Law on Fire Prevention and Fighting and the Law Amending and Supplementing a Number of Articles of the Law on Fire Prevention and Fighting.
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