DECISION NO. 2106/QD-GTVT DATED 23/8/1997 OF THE MINISTER OF COMMUNICATIONS AND TRANSPORT RULES & REGULATIONS IN HANDLING, DELIVERY AND STORAGE OF CARGO AT VIETNAM SEAPORTS

Chapter I:
GENERAL PROVISIONS

Article 1:

1. These Rules and Regulations specify the principles in the handling, delivery and conservation of cargoes through the Vietnam seaports.

2. Vietnam seaports are ports being announced by the State authorities allowing vessels to call and operate under the laws and regulations, hereinafter referred to briefly as Ports.

Article 2:

1. These Rules and Regulations apply to all organizations, individuals involving in the handling, delivery and storage of cargo of all types in the Ports.

2. The handling, delivery, conservation of cargoes at the Ports to be in compliance with the provisions of these Rules and Regulations as well as the relating laws and regulations in respect of Customs, Taxation, quarantine, health care …

Article 3: In these Rules and Regulations, the following terms are to be understood and interpreted as:

1. "Import Cargoes" are goods shipped by sea going vessels from foreign countries to the Ports and being handled at the Vietnam Ports.

2. "Export Cargoes" are goods being transported to the Ports for loading on sea going vessels to be shipped to foreign countries.

3. "Domestic Cargoes" are goods shipped by sea going vessels between the Vietnam Ports and loaded on or unloaded from the vessels at these Ports.

4. "Loading" is taking the goods from the Ports or from other transport means to the Ports for loading on the vessels.

5. "Unloading" is taking the goods from the vessels onto the Ports or other transport means.

6. "Cargo Deliverer", "Cargo Receiver", "Consignee" are to be interpreted in accordance to the Article 61 and Article 93 of the Vietnam Maritime Codes, hereinafter called "Cargo owner".

7. "Shipper/Transport Operator" to be interpreted as specified in Article 61 of the Vietnam Maritime Codes.

8. "Agent" is the organization or individual authorized by the cargo owner or transport operator to carry out the handling, delivery and conservation of the cargo at the Ports.

Chapter II :
CONTRACT OF CARGO HANDLING, DELIVERY,  CONSERVATION

Article 4: The handling, delivery, conservation of the cargo at the Ports are to be carried out based on the contracts signed between the Port and the cargo owner or transport operator or agent. The contracts are to be prepared in accordance with the regulations as provided by the laws.

Article 5: For the organizations, individuals having cargo in too small quantity to practically sign the contract, the handling, delivery and conservation of cargo at the Ports shall be carried out following the international practices and in compliance with the laws and regulations of Vietnam.

Chapter III:
DELIVERY OF CARGOES

Article 6: The parties are entitled to choose the optimum delivery mode and to be agreed in details in the contract. The general principle on cargo delivery is to deliver as received.

Delivery modes include:

1. Delivery by bag, package, bundle, sheet, bar, unit intact.

2. Delivery by hold, as sealed.

3. Delivery by quantity, weight, volume as counted/weighed/measured.

4. Delivery by draught.

5. Delivery by sealed container.

6. Combination of the above delivery modes.

7. Other delivery modes.

Article 7: The cargo owner or person authorized by the cargo owner to the transport operator shall be responsible for the cargo delivery. Cargo owner is to organize the cargo delivery in ensuring the handling rates (productivity) as set up by the Ports. If the cargo delivery fails to meet the handling rates of the Port, the Port is entitled to unload the cargo onto port storage areas (for import cargo) or the request the cargo owner to consolidate the cargo in the port storage areas (for export cargo) in advance, for which the cargo owner is to pay the costs incurred to the Port.

Article 8: In case the cargo receiver or authorized representative fails to receive the cargo as agreed in the transport contract or fails to meet the handling rates officially announced by the Port, the transport operator and the Port are entitled to make notes, discharge the cargo from the vessel and arrange for storage of the cargo in the Port. The receiver shall be liable for all the costs incurred.

Article 9: In case the cargo is to be stored in the Port, the cargo owner or authorized representative is to receive the cargo directly from the transport operator and at the same time to affect delivery with the Port on the actual quantity stored in the Port.

If being authorized by the cargo owner as his agent, the Port is to carried out the agency agreement signed with the cargo owner.

Article 10 :

1. Cargoes shipped through the port should have adequate codes, marks in accordance with current regulations, except cargo in bulk, in heap to be delivered following commercial practices.

2. For container: container code should be clearly visible, the tare should be in good technical conditions and the seal intact.

3. For sealed cargo hold: seal should be intact.

4.  Should the requirements in items 1,2,3 of this Article are not secured and causing mistake, delay in delivery, the Port shall not be held responsible for.

Article 11: The Port shall deliver the cargo to the receiver to the following principles:

• The receiver has to present legal documents certifying his right to receive the cargo and proofs of payment of fees and charges to the Port.

• The receiver has to keep receiving the cargo in certain time the quantity of cargo in one B/L or equivalent shipping or cargo document or one delivery order.

• The Port shall deliver/take delivery of the cargo to/for the receiver following the modes specified in Article 6 of these Rules and Regulations.

• The Port shall not be held responsible for the cargo contents if the cover, packing or seal is intact.

• In case the cargoes being delivered in full bag, package, bundle, sheet, unit have incurred tear, breakage, the delivery shall be in actual quantity of torn, broken units. The status of torn, broken cargoes should be established in writing and have the signatures of the parties concerned.

Article 12: Before signing the receipt with the Port, the receiver has to check the cargo or the technical condition and seals of containers right in the warehouse/yard of the Port. If the cargoes are to be transported to the receiver's warehouse/yard following the agency contract, the cargo owner as to check the cargo before signing the receipt at the cargo owner's warehouse/yard.

The Port shall not be held responsible for any damage/loss to the cargo found out by the receiver after having signed the receipt with the Port.

Article 13: The transport operator is to hand over to the Port the following documents on the cargo:

1. For import cargoes:

• Cargo manifest 2 copies

• Stowage plan 2 copies

• Details of cargo hold 2 copies

• Extra sized cargo (if any) 2 copies

The above documents are to be handed over to the Port 24 hours prior to the arrival of the vessel to the pilotage position. If the Port acts as the agent, one set of B/Ls should also be handed over to the Port.

In case cargo in container stored at the Port shed/yard, the receiver has to present to the Port:

• Delivery order (with approval stamp of Customs) 1 copy

• Copy of B/L or equivalent shipping document 1 copy

• Giay muon vo container (if container to be hauled to the cargo owner's warehouse for cargo vanning, devanning) 1 copy

    2.   For export cargo (including cargo in container):

• Cargo manifest 5 copies

• Stowage plan 2 copies

(To be handed over to the Port 8 hours before loading the cargo on the vessel)

3. For domestic cargo:

1. At the port of loading:

·         Transport paper 5 copies

(to be handed over to the Port 24 hours before ship arrival at loading point)

·         Cargo plan 2 copies

(to be handed over to the Port 8 hours before loading on board the ship)

2. At the port of discharging:

• Cargo transport paper 2 copies

• Cargo plan 2 copies

All of the above documents are to be handed over to the Port at the latest 8 hours before ship arrival at discharging point.

In case the Port acts as the party to deliver cargo to the ship, in addition to the above documents, one set of bills of lading is to be given to the Port.

4. For cargo in transit, transshipment, trans-port, temporary import for re-export the types of cargo are to be explicitly written in the bill of lading, cargo manifest or other related documents following the law and regulations regarding such cargoes.

5. For cargoes under shipping detention: the shipper has to certify in writing of such status.

The documents specified in this Article should be delivered to the Port on time, otherwise the Port is not responsible for ship waiting time for cargo handling.

Chapter IV:
HANDLING OF CARGOES

Article 14: The handling of cargo within the port area shall be organized and carried out by the Port. Any shipper or its agent who wishes to use its personnel and means to handle the cargo inside the Port should have the agreement of the Port and pay related costs to the Port as agreed.

Article 15: The Port should publish the handling rates for different types of commodity and ship based on the actual handling capability of the Port. The parties concerned may negotiate and agree with the Port on the handling rates which should not be lower than the published rates.

Article 16: In handling the cargoes which require special protection or dangerous cargo the cargo owner or its agent should inform the Port of the cargo particulars in order to have proper handling measures and if necessary, the cargo owner or its agent should directly instruct the Port how to handle those cargoes.

Article 17:

1. The ship should take care of sufficient lighting in the holds and other necessary places as well as of other handling tools and equipment to ensure safety for the handling operations.

2. The Port has the right to refuse or suspend the cargo handling operations in case the ship does not have adequate safety conditions for cargo handling.

In such case, the Port and the related parties should prepare a note affirming such violation of the safety rules in cargo handling.

Chapter V:
STORAGE OF CARGOES 

Article 18: The Port has the right to refuse to handle the cargo without codes and markings or with unclear codes and markings or with unsafe packing conditions in handling. In case the actual weight of the cargo is not correct as compared to the weight written on the ship manifest, the cargo owner should pay higher handling charges (to be specified by the Port) for the weight exceeding that written on the cargo manifest. Should the handling means, equipment are damaged as the consequence of such difference in weights, the cargo owner shall be responsible for reimbursing the Port.

Article 19:

1. The Port is responsible for keep the cargo in port storages following the technical guidelines and suitable for each bill, lot of cargo.

2. The Port has the right to refuse to keep the cargo in port storage for cargo without codes and markings or with unclear codes and markings or with packing unsafe for storage.

3. In case the cargo stored at the Port is found to have sign of damage, the Port is to promptly notify the cargo owner for solution and at the same time to apply necessary measures to prevent and mitigate losses.

The cargo owner is bear all costs incurred to the Port unless he can prove that the measures as applied by the Port are not necessary.

Article 20:

1.      The duration of cargo storage in the Port is to be agreed in the contract signed between the Port and the cargo owner or shipper or its representative.

If, payment deadline specified in the contract is exceeding 7 days and the cargo owner fails to pay all the costs to the Port or to extend the storage duration with the Port, the Port is to notify the cargo owner in writing. After 15 days (based on the postal stamp), if the cargo owner does not respond or do not have satisfactory settlement solution, the Port is allowed to dispose the cargo as regulated by the law.

2.      Tariff, storage charges shall be levied on a progressive basis based on the duration.

Chapter VI: 
SETTLEMENTS OF PAYMENTS, REIMBURSEMENTS, PENALTIES AND BONUSES

Article 21: Payment of tariff, costs, fees and other expenses relating to the cargo handling, storage at the Port shall be based on the law and regulations and contract signed between the Port and the related parties.

Article 22: The party violating the law and regulations and the contract signed has to compensate losses caused to the other parti(es) by such violation.
Losses have to be proved by legal proofs and compensation of losses shall be in monetary term.

Article 23: Before, during and after discharging the cargo from the vessel, if any cargo is suspected to be damaged, loss caused by the deliverer or the shipper, the receiver or its agent has to prepare and signed minutes with the shipper as a basis for claiming compensation should the damage have occurred.

Article 24:

1. During the handling operations, any damage or loss to the cargo caused by the operator of the Port should be compensated by the Port to the cargo owner.

2. Damage or loss to the cargo stored in the Port should be certified by the parties concerned in writing to be signed by the Port and concluded by the surveyor of such cargo.

3. The Port has to compensate loss to the party who suffers such loss if it fails to prove its irresponsibility.

Article 25: Documents for claiming compensation consists of:

• Minutes certifying damage or loss to cargo signed by the parties concerned.

• Minute certifying cargo damage or loss by the surveyor.

• Certificate of short landing prepared by the Port or certificate of non delivery by the Port in case of cargo in storage.

• Bill of lading or invoice or shipping bill or equivalent transport documents.

• Other papers, documents relating to the settlement of claim (if necessary).

Article 26: The party claiming compensation of damage and/or loss should send the claim document to the claimed party within 30 days from the date of receiving the cargo in full or from the date the receiver receives the documents which are not fully justified legally for claiming the vessel for compensation, if the Port is appointed to take delivery with the vessel.

In 15 days (based on the postal stamp) after receiving the claim document, the claimed party has to inform the claimant of his acceptance or refusal to compensate.

Article 27: Within 90 days from the date the claimed party receives the claim document, the two parties have to settle the case. Failing this, the parties have the right to referred to an arbitration body as agreed by the parties in the contract or as regulated by the law (if they fail to reach agreement).

Article 28: Compensation of damage and/or loss to the cargo shall be on the basis:

• Loss of cargo in full bag, package is to compensate in full bag, package.

• Loss or damage in portions is to compensate the portions loosed or damaged, the cargo owner has to receive the other portions.

The compensation amount shall be based on the current price of such cargo at the time and place of compensation, if the parties concerned do not have different agreement.