Vietnam: Requirements to be satisfied to import used ships for breaking

An importer of the used ship for breaking is required to meet the requirements specified in Article 16 of Decree No. 82/2019/NĐ-CP of Vietnam’s Government, specifically as follows:

- It must be a Vietnamese enterprise 100% of charter capital of which is held by Vietnamese organization(s) or individual(s);

- It must own or manage the ship-breaking facility which has been put into operation in accordance with law regulations.

Concurrently, the used ship to be imported for breaking must meet the following requirements:

- It is a type of ships prescribed in Article 5 hereof;

- The ship is not under any mortgage or maritime claim according to the written certification of the shipowner who shall also assume responsibility for such certification;

- The imported ship shall not be modified, upgraded, repurposed, transferred or sold to another party.

Decree No. 82/2019/NĐ-CP also stipulates that the purchase of used ships for breaking with other funding sources shall be subject to decisions of the relevant enterprises, organizations or individuals, and the purchase of a used ship for breaking with state funding shall be made as follows:

Step 1: Select the ship, and estimate the purchase price and other costs of ship purchase;

Step 2: Formulate, appraise and approve of the plan for purchase of the used ship for breaking.

Step 3: The ship purchase plan shall include contents about the necessity of the investment, type of ship, quantity, basic specifications, estimated purchase price, funding source, method of purchase, and economic and environmental efficiency;

Step 4: Make decision on purchase of used ship for breaking.

View more details at Decree No. 82/2019/NĐ-CP of Vietnam’s Government, effective from December 30, 2019.

Thu Ba

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