Conditions for arrest of ships for the purpose of securing a maritime claim in Vietnam

Conditions for arrest of ships for the purpose of securing a maritime claim in Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows:

1. Conditions for arrest of ships for the purpose of securing a maritime claim in Vietnam

Conditions for arrest of ships for the purpose of securing a maritime claim in Vietnam according to Article 140 of the Vietnam Maritime Code 2015 are as follows:

- Upon receipt of a request for arrest of a ship, in order to secure a maritime claim as stipulated by Article 139 of the Vietnam Maritime Code 2015, the Court shall grant a decision on arrest of such ship under the following circumstances:

+ The person who owned the ship at the time when the maritime claim arose is liable for the claim and is owner of the ship when the arrest is effected;

+ The demise charterer of the ship at the time when the maritime claim arose is liable for the claim and is demise charterer or owner of the ship when the arrest is effected;

+ The claim is based upon a mortgage or a "hypothèque" or a charge of the same nature on the ship;

+ The claim relates to the ownership or possession of the ship;

+ The claim is secured by a maritime lien in connection with such ship.

- Arrest of a ship is also permissible of any single ship or other ships which, when the arrest is effected, is or are owned by the person who is liable for the maritime claim and who was, when the claim arose:

+ Owner of the ship in respect of which the maritime claim arose;

+ Demise charterer, time charterer or voyage charterer of that ship.

- The provision laid down in paragraph 2 of Article 140 of the Vietnam Maritime Code 2015 does not apply to maritime claims in respect of ownership or possession of a ship.

2. Period of arrest of ships during which a maritime claim is secured in Vietnam

Period of arrest of ships during which a maritime claim is secured in Vietnam according to Article 141 of the Vietnam Maritime Code 2015 is as follows:

- The period of arrest of a ship during which a maritime claim is secured shall last 30 days from the date on which the ship is arrested.

- During the period of arrest of a ship as a manner of securing a maritime claim, if the person filing a request for such arrest brings proceedings before a Court or submit a claim to the Arbitration Tribunal against any dispute and insists on request for such arrest, the period of such arrest for the purpose of securing the claim shall terminate whenever the Court decides whether an interim injunction is applied to arrest such ship.

3. Bases for release of a ship arrested to secure a maritime claim in Vietnam

Bases for release of a ship arrested to secure a maritime claim in Vietnam according to Article 142 of the Vietnam Maritime Code 2015 are as follows:

- The ship which is under arrest for the purpose of securing a maritime claim shall be released at once when the following requirements are met:

+ The ship owner, charterer or operator has already implemented security measures or repaid all debts owed;

+ Property-related obligations assumed by the ship owner, charterer or operator have been secured by any other person acting on their behalf, or have been fulfilled under the letter of commitment issued by a credit institution. The Ministry of Finance shall make the list of reliable credit institutions known to the public;

+ Upon the request of the person filing a request for arrest on his own;

+ Decision on arrest of a ship has been cancelled;

+ The validity period of arrest of a ship according to the Court’s judgement has expired.

- Security measures shall be agreed upon between parties. In the absence of agreement between parties as to the amount and form of the security, the Court shall determine its nature and amount thereof, not exceeding the value of the arrested ship or of property obligation which serves as the basis for such arrest in the event that such property obligation is less than the value of the ship.

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