Decree No. 82/2019/ND-CP the import and dismantlement of used ships

DECREE

Prescribing the import and dismantlement of used ships^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

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

Pursuant to the June 23, 2014 Law on Environmental Protection;

Pursuant to the November 26, 2014 Law on Investment, and the Law Amending and Supplementing Article 6 of, and Appendix 4 on the List of Conditional Business Investment Sectors and Trades to, the Law on Investment;

Pursuant to the November 26, 2014 Law on Enterprises;

At the proposal of the Minister of Transport,

The Government promulgates the Decree prescribing the import and dismantlement of used ships.

Chapter I

GENERAL PROVISIONS

Article1.Scope of regulation

1. This Decree prescribes entities licensed to import, and conditions for import of, used ships for dismantlement and the management of used-ship dismantlement activities in Vietnam.

2. The provisions of this Decree on import and dismantlement of ships also apply to the import and dismantlement of floating storage units and portable rigs.

Article2.Subjects of application

This Decree applies to domestic and foreign organizations and individuals involved in the import of used ships for dismantlement and used-ship dismantlement activities.

Article3.Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Ship dismantlement means breaking up the entire structure of a ship at a ship dismantling facility.

2. Ship dismantling facility means an area used exclusively for ship dismantlement.

3. Ship dismantlement plan means a plan made by the owner of a ship dismantling facility for dismantlement of a ship.

Article4.Principles of import and dismantlement of used ships

1. The import and dismantlement of used ships must ensure maritime safety and security, occupational safety, fire and explosion prevention and fighting safety, and protection of human health and the environment.

2. The dismantlement of used ships may only be carried out at lawfully operated ship dismantling facilities.

3. A used ship imported for dismantlement shall be brought to a ship dismantling facility within 30 days after customs procedures for its import are completed and 90 days after it arrives at the first seaport of Vietnam; the ship dismantlement period must not exceed 180 days after the ship dismantlement commences.

4. Enterprises that import or dismantle used ships shall purchase insurance and perform the obligations related to the insurance for the liability to pay compensation for environmental damage caused by the import or dismantlement of used ships under regulations.

Article 5.Types of used ships that may be imported for dismantlement

Used ships that have their hulls not made of non-metallic materials may be imported for dismantlement, including:

1. Dry bulk carriers, including those carrying general cargo, cargo in less than container load, equipment, wood chips, timber, grains, packaged goods and iron and steel products.

2. Container ships.

3. Ore ships.

4. Tankers carrying crude oil, oil products and vegetable oil.

5. Tankers carrying gases and liquefied gases.

6. Ro-Ro ships, passenger ships, sea barges and ferries.

Article6.Dismantlement of Vietnamese ships and foreign ships wrecked in Vietnam

1. The dismantlement of Vietnamese ships and ships flying flags of foreign states which are wrecked in Vietnam must comply with the Government’s Decree No. 05/2017/ND-CP of January 16, 2017, prescribing the disposal of wrecked assets in inland waterway routes, seaport waters and maritime zones of Vietnam, and other relevant regulations.

2. For ships flying flags of foreign states which are wrecked in Vietnam, import procedures shall be carried out for their dismantlement in accordance with law.

Chapter II

MANAGEMENT OF OPERATION OF SHIP DISMANTLING FACILITIES

Article7.Conditions for ship dismantling facilities to be put into operation

A ship dismantling facility must satisfy the following conditions:

1. Having piers and maritime fairways announced under the Government’s Decree No. 58/2017/ND-CP of May 10, 2017, detailing a number of articles of the Maritime Code of Vietnam regarding management of maritime activities.

2. Fully satisfying the environmental protection conditions for used ship dismantlement prescribed in the Government’s Decree No. 40/2019/ND-CP of May 13, 2019, amending and supplementing a number of articles of the decrees detailing and guiding the implementation of the Law on Environmental Protection.

3. Having human resources for, and processes of, controlling dangers and hazards, and plans on response to technical incidents likely to pose serious risks to occupational safety and health in accordance with 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.

4. Fully satisfying the conditions on fire prevention and fighting safety and firefighting 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.

Article 8.Competence to decide to put ship dismantling facilities into operation

The Minister of Transport shall decide to put ship dismantling facilities into operation based on proposals of the Director of the Vietnam Maritime Administration.

Article9.Procedures for deciding to put ship dismantling facilities into operation

1. The owner of a ship dismantling facility shall submit  directly or send by post or via the portal or in another appropriate form to the Vietnam Maritime Administration 1 set of dossier of request for permission for putting the ship dismantling facility into operation.

2. A dossier of request for permission for putting a ship dismantling facility into operation must comprise:

a/ A written request for permission for putting a ship dismantling facility into operation, made according to Form No. 01 provided in the Appendix to this Decree (1 copy);

b/ A decision approving the environmental impact assessment report of the facility’s owner (1 certified copy or 1 copy with the original for checking), enclosed with such report;

c/ A dossier of the environmental management system up to national standard TCVN ISO 14001 (1 certified copy or 1 copy with the original for checking);

d/ A dossier of as-built drawings of physical foundations and technical infrastructure facilities for environmental protection (1 original or 1 certified copy);

dd/ The process of controlling dangers and hazards and plan on response to technical incidents likely to pose serious risks to occupational safety and health (1 original or 1 certified copy);

e/ A document of the fire prevention and fighting police office on examination and takeover test of the fire prevention and fighting plan (1 certified copy or 1 copy with the original for checking).

3. Procedures for receiving and processing a dossier:

a/ The Vietnam Maritime Administration shall receive and examine the dossier. If the dossier is invalid, it shall guide the owner of the ship dismantling facility in completing the dossier in accordance with this Decree;

b/ Within 3 working days after receiving a complete and valid dossier, the Vietnam Maritime Administration shall appraise the dossier and send a report on dossier appraisal results to the Ministry of Transport. In the course of appraisal, it may carry out checking to verify information and data on the physical foundations of the ship dismantling facility;

c/ Within 2 working days after receiving the written request of the Vietnam Maritime Administration, the Ministry of Transport shall issue a decision to put the ship dismantling facility into operation according to Form No. 02 provided in the Appendix to this Decree. In case of disapproval, it shall issue a written reply clearly stating the reason.

Article10.Procedures for deciding to resume operation of ship dismantling facilities

1. A decision to resume the operation of a ship dismantling facility shall be issued when there is a change in the previously issued decision to put such facility into operation.

2. The owner of a ship dismantling facility shall submit to the Vietnam Maritime Administration a written request for re-issuance of the decision to put the facility into operation, made according to Form No. 03 provided in the Appendix to this Decree (1 original) enclosed with a document on the change (1 certified copy or 1 copy with the original for checking).

3. Procedures for receiving and processing dossiers are prescribed in Clause 3, Article 9 of this Decree.

Article 11.Decision on immediate termination of operation of ship dismantling facilities

1. The Ministry of Transport shall, at the request of a competent state agency, decide to immediately terminate the operation of a ship dismantling facility in case an accident or incident occurs at the facility causing serious consequences to people and the environment.

2. Within 1 working day after receiving a written request of a competent state agency, the Ministry of Transport shall consider and decide to terminate the operation of a ship dismantling facility.

3. The Ministry of Transport shall notify to related agencies and announce decisions on immediate termination of operation of ship dismantling facilities on its portal.

Article12.Decision on termination of operation of ship dismantling facilities

1. The Ministry of Transport shall, at the request of a competent state agency, decide to terminate the operation of a ship dismantling facility in the following cases:

a/ The facility fails to satisfy the operation conditions prescribed in Article 7 of this Decree;

b/ For the purpose of maintaining national defense and security;

c/ An epidemic or a natural disaster or catastrophe occurs or in another case of emergency as prescribed by law.

2. Within 5 working days after receiving a written request of a competent state agency, the Ministry of Transport shall consider and decide to terminate the operation of a ship dismantling facility. In case of refusal to decide to terminate the operation of a ship dismantling facility as requested, the Ministry of Transport shall reply in writing, clearly stating the reason.

3. The Ministry of Transport shall notify to related agencies and announce decisions on termination of operation of ship dismantling facilities on its portal.

Article 13.Ship dismantlement plans

1. Before carrying out the dismantlement of a ship, the owner of a ship dismantling facility shall make or approve a ship dismantlement plan under Clause 2 of this Article.

2. A ship dismantlement plan must have the following contents:

a/ General information: Name and address of the enterprise importing the used ship for dismantlement; name and address of the ship dismantling facility; the ship to be dismantled (name, nationality and technical characteristics);

b/ Dismantlement information: Technological process of dismantlement (ordinal numbers of ship parts to be dismantled shown on a general diagram of the ship, and a drawing showing the ship dismantlement site in the general plan of the ship dismantling facility); equipment, facilities and human resources for the dismantlement; date of commencement and date of completion of the dismantlement;

c/ Measures to ensure occupational safety, environmental sanitation, fire and explosion prevention and fighting, and environmental pollution prevention and control.

Article 14.Competence and procedures for approving ship dismantlement plans

1. Maritime administrations of localities where ship dismantling facilities are located are competent to approve ship dismantlement plans of these facilities at the request of their owners.

2. For every ship to be dismantled, the owner of a ship dismantling facility shall submit to the regional maritime administration 1 set of dossier of request for approval of a ship dismantlement plan.

Such a dossier must comprise:

a/ A written request for approval of the ship dismantlement plan, made according to Form No. 04 provided in the Appendix to this Decree (1 original);

b/ A ship dismantlement plan (1 original).

3. Procedures for processing the dossier:

a/ Within 2 working days after receiving a valid dossier, the regional maritime administration shall collect opinions of related agencies on the ship dismantlement plan.

Within 5 working days after receiving the written request for opinions from the regional maritime administration, related agencies shall give their written opinions.

b/ Within 3 working days after receiving opinions of related agencies, the regional maritime administration shall issue a decision to approve the ship dismantlement plan according to Form No. 05 provided in the Appendix to this Decree and send it to the ship dismantling facility. In case of refusal to approve the plan, it shall reply in writing, clearly stating the reason.

Article 15.Implementation of ship dismantlement plans

1. Owners of ship dismantling facilities shall dismantle ships according to approved ship dismantlement plans.

2. Regional maritime administrations shall assume the prime responsibility for, and coordinate with related agencies in, inspecting and supervising the implementation of ship dismantlement plans in accordance with law.

Chapter III

IMPORT OF USED SHIPS FOR DISMANTLEMENT

Article 16.Conditions for import of used ships for dismantlement

1. An enterprise that wishes to import used ships for dismantlement must satisfy the following conditions:

a/ Being a Vietnamese enterprise, of which the charter capital is wholly held by a Vietnamese organization or individual;

b/ Owning or managing and operating a ship dismantling facility which has been put into operation in accordance with law.

2. To be imported for dismantlement, a used ship must satisfy the following conditions:

a/ It falls into one of the cases specified in Article 5 of this Decree;

b/ Its owner certifies in writing and takes responsibility for guaranteeing that the ship is not in a hypothecation or subject to a maritime claim;

c/ It has not been transformed or upgraded, does not have its use purposes changed and is not intended for transfer, redemption or resale.

Article17.Order of purchasing used foreign ships for dismantlement

1. The purchase of used ships for dismantlement with state funds shall be carried out in the following order:

a/ Selecting ships and estimating purchase prices and expenses related to the purchase of such ships;

b/ Formulating, appraising and approving projects on purchase of used ships for dismantlement.

A project on purchase of used ships for dismantlement must have the following contents: necessity of the purchase, type, number and basic technical specifications of ships, estimated purchase price, funding sources for ship purchase, form of purchase, economic efficiency and environmental effects;

c/ Deciding on the purchase of used ships for dismantlement.

2. The purchase of used ships for dismantlement with other financial sources shall be decided by enterprises, organizations or individuals themselves.

Article 18.Competence to decide on purchase of used ships for dismantlement

The competence to decide on projects on purchase of used ships for dismantlement must comply with the investment law.

Article19.Procedures for granting permits for import of used ships for dismantlement

1. A dossier of application for a permit must comprise:

a/ An application for a permit for import of used ships for dismantlement, made according to Form No. 06 provided in the Appendix to this Decree (1 original);

b/ A decision to put the ship dismantling facility into operation (1 certified copy or 1 copy enclosed with the original for checking);

c/ The enterprise’s decision on purchase of used ships for dismantlement (1 certified copy or 1 copy enclosed with the original for checking).

2. Dossier-processing procedures:

a/ The Vietnam Maritime Administration shall receive and examine a dossier. If the dossier is incomplete, it shall guide the enterprise to complete the dossier as prescribed;

b/ Within 3 working days after receiving a complete dossier as prescribed, the Vietnam Maritime Administration shall appraise it and report to the Ministry of Transport for consideration and decision;

c/ Within 2 working days after receiving a written request of the Vietnam Maritime Administration, the Ministry of Transport shall grant a permit for import of used ships for dismantlement according to Form No. 07 provided in the Appendix to this Decree. In case of refusal to grant such a permit, it shall reply in writing, clearly stating the reason.

Article 20.Procedures for import of used ships for dismantlement

1. When carrying out procedures for importing a used ship for dismantlement, an enterprise shall submit to the regional customs office 1 set of dossier which must comprise:

a/ A permit for import of used ships for dismantlement (1 certified copy or 1 copy enclosed with the original for checking);

b/ The enterprise’s decision on purchase of a used ship for dismantlement (1 certified copy or 1 copy enclosed with the original for checking);

c/ A contract on purchase and sale of a used ship for dismantlement (1 certified copy or 1 copy enclosed with the original for checking);

d/ A written record of delivery and receipt of a used ship, signed by the delivering and receiving parties (1 certified copy or 1 copy enclosed with the original for checking).

2. Based on a ship import dossier specified in Clause 1 of this Article, customs regulations and other relevant regulations, a customs office shall carry out procedures for importing a used ship for dismantlement.

Chapter IV

IMPLEMENTATION PROVISIONS

Article21.Implementation responsibility

1. The Ministry of Transport shall perform the state management of the import and dismantlement of used ships; assume the prime responsibility for, and coordinate with related ministries, sectors and provincial-level People’s Committees in, organizing the implementation of this Decree.

2. The Ministry of Natural Resources and Environment shall perform the state management of environmental protection in the dismantlement of used ships in accordance with law; assume the prime responsibility for, and coordinate with related ministries and sectors in, guiding insurance for liability to pay compensation for environmental damage; revise and improve regulations on environmental protection in the import and dismantlement of ships and other waterway craft in Vietnam.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with related ministries and sectors in, guiding the payment of taxes, charges and fees related to the import of used ships for dismantlement and customs procedures for used ships imported for dismantlement.

4. Ministries and provincial-level People’s Committees shall, based on their functions, tasks and powers, perform the state management of the import and dismantlement of ships.

5. Owners of ship dismantling facilities shall strictly comply with this Decree; comply with the law on environmental protection and relevant regulations applicable to production, business and service establishments when carrying out the dismantlement of other waterway craft.

Article22.Effect

1. This Decree takes effect on December 30, 2019, and replaces the Government’s Decree No. 114/2014/ND-CP of November 26, 2014, prescribing entities licensed to import and dismantle, and conditions for import and dismantlement of, used ships.

2. To annul the provisions of Article 4 of Decree No. 147/2018/ND-CP of October 24, 2018, on issuance of a decree amending and supplementing a number of articles of the decrees prescribing business conditions in the maritime field.

3. In case the legal documents referred to in this Decree are amended, supplemented or replaced, the amending, supplementing or replacing legal documents shall apply.

Article 23.Organization of implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations, units and persons shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The Appendix to this Decree is not translated.