Owner of an arrested ship is responsible for paying expenses for maintenance in Vietnam

Owner of an arrested ship is responsible for paying expenses for maintenance in Vietnam (Internet image)

Article 10 and Article 11 of Decree 57/2010/ND-CP stipulate:

- Expenses for the arrest of a seagoing ship include:

• Expenses for arresting the seagoing ship under a court decision;

• Expenses for supervising the seagoing ship during the period of arrest;

• Expenses for pursuing the seagoing ship (if any).

- Expenses for arresting a seagoing ship shall be paid on the following principles:

• The ship owner shall pay these expenses if the application for seagoing ship arrest is grounded;

• The seagoing ship arrest applicant shall pay these expenses if his/her application is groundless;

• These expenses shall be covered by proceeds from the auction of the seagoing ship in case the ship owner abandons his/her ship;

• The state budget covers these expenses in the following cases: The pursuit of the seagoing ship is unsuccessful and the application for seagoing ship arrest is grounded; Other special cases as decided by the Ministry of Transport.

- Expenses for maintaining operations of seagoing ships during the period of arrest

• Ship owners or operators shall pay expenses for maintaining operations of their arrested seagoing ships.

• In case ship owners or operators fail to pay or are no longer able to pay expenses for maintaining operations of their arrested seagoing ships, shipmasters or ship owners' agents shall apply necessary measures to maintain operations of these ships.

• In case organizations and individuals defined in Clauses 1 and 2 of this Article are no longer able to finance operations of arrested seagoing ships, port authorities having carried out the seagoing ship arrest shall finance necessary operations of these ships.

• All expenses for maintaining operations of a seagoing ship during the period of arrest shall be paid according to the agreement between involved parties or under a court decision

More details can be found in Decree 57/2010/ND-CP, which comes into force from July 9, 2010.

Nguyen Phu

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