Vietnam: Classification of logistics services in commercial activities

Vietnam: Classification of logistics services in commercial activities (Internet image)

1. What is logistics service?

According to Article 233 of the Commercial Law 2005, logistic services are commercial activities whereby traders organize the performance of one or many jobs including reception, transportation, warehousing, yard storage of cargoes, completion of customs procedures and other formalities and paperwork, provision of consultancy to customers, services of packaging, marking, delivery of goods, or other services related to goods according to agreements with customers in order to enjoy service charges.

Specifically, commercial activities mean activities for the purpose of generating profits, including: sale and purchase of goods, provision of services, investment, commercial promotion and other activities for the profit purpose.

(Clause 1, Article 3 of Commercial Law 2005)

2. Classification of logistics services in Vietnam

Specifically, in Article 3 of Decree 163/2017/ND-CP, logistics services in Vietnam include:

- Container handling services, except for services provided at airports.

- Container warehousing services classified as auxiliary services for sea transport.

- Warehousing services classified as all auxiliary services for multimodal transport.

- Delivery services.

- Freight transport agency services.

- Customs brokerage services (including customs clearance services).

- Other services including bill of lading inspection, cargo brokerage services, cargo inspection, sampling and weighing services; goods receipt and acceptance services; and preparation of transport documents.

- Wholesaling auxiliary services and retailing auxiliary services including management of goods in storage, and collection, collation and classification of goods and their delivery.

- Cargo transport services classified as sea transport services.

- Cargo transport services classified as inland waterway transport services.

- Cargo transport services classified as rail transport services.

- Cargo transport services classified as road transport services.

- Air carriage services.

- Multimodal transport services.

- Technical inspection and analysis services.

- Other auxiliary services for transport.

- Other services under the agreement signed between the logistics service provider and customer according to basic rules of the Commercial Law 2005.

3. Cases of liability exemption for traders providing logistic services in Vietnam

Apart from the cases of liability exemption specified in Article 294 of the Commercial Law 2005, traders providing logistic services shall not be liable for the goods loss caused in cases specified in Clause 1 of this Article 237 Commercial Law 2005 as follows:

- The loss is caused by faults of customers or their authorized persons;

- The loss is caused by traders that have strictly followed the instructions of their customers or persons authorized by customers;

- The loss is attributed to defects of the goods;

- The loss occurs in cases of liability exemption according to law and transportation practices, if traders providing logistic services organize transportation;

- Trader providing logistic services are not notified of complaints within fourteen days from the date they deliver goods to recipients;

- After being complained against, traders providing logistic services are not notified of lawsuits against them being instituted at arbitrations or courts within nine months from the date of delivery of goods.

Traders providing logistic services shall not be liable for the loss of profits which their customers would have earned, for any services delayed or provided at wrong addresses, for which they are not at fault.

(Clause 2, Article 237 of the Commercial Law 2005)

Thanh Rin

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