What is maritime lien? Statute of limitations for the maritime lien in Vietnam

What is maritime lien? Statute of limitations for the maritime lien in Vietnam (Internet image)

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

1. What is maritime lien?

According to Clause 1, Article 40 of the Vietnam Maritime Code 2015, maritime lien refers to the right of the maritime claimant under Article 41 of the Vietnam Maritime Code 2015 which gives this claimant a privilege to submit a claim for compensation against the owner, charterer and operator of a ship in the event that there is any maritime claim in connection with that sea–going vessel.

Maritime claim refers to a party requesting another party to secure any obligation that may arise out of marine operations.

2. Maritime claim leading to maritime lien in Vietnam

Maritime claim leading to maritime lien under Article 41 of the Vietnam Maritime Code 2015 are as follows:

- Maritime claims on salary, repatriation cost, social insurance contribution cost and other monetary amount paid to the master, officer and other seafarers that belong to crew members aboard a ship.

- Maritime claims on compensation for life, disability or other injury to human health in association with operations of a ship.

- Maritime claims on deadweight tonnage charge, marine safety charge and other seaport fees or charges.

- Maritime claims on ship rescue remuneration.

- Maritime claims on non-contractual property loss and damage directly relating to operations of a ship.

3. Statute of limitations for the maritime lien in Vietnam

Statute of limitations for the maritime lien under Article 43 of the Vietnam Maritime Code 2015 is as follows:

- The statute of limitations for the maritime lien shall be 01 year after the date of creating the maritime lien.

- The date of generating the maritime lien as defined in paragraph 1 of Article 43 of the Vietnam Maritime Code 2015 shall be determined as follows:

+ From the date of completion of a rescue operation with respect to claims on rescue remuneration amount;

+ From the date of incurring any loss with respect to claims on any loss and damage incurred by marine operations;

+ From the date of fulfilling payment obligations with respect to other maritime claims.

- The maritime lien shall be terminated from the date on which the ship owner, charterer or operator repays debts incurred from relevant maritime claims; if the payment amount is in the custody of the ship master or persons authorized to act on behalf of the ship owner, ship charterer or operator to serve the purpose of repaying debts relating to such maritime claims, the maritime lien shall remain in effect.

- If the Tribunal is not capable of impounding a ship within the inland or territorial waters of Vietnam to protect interests of maritime claimants who permanently reside or whose main offices are located within the territory of Vietnam, the statute of limitations stipulated in Article 1 of Article 43 of the Vietnam Maritime Code 2015 shall expire after 30 days from the date of its first arrival at a Vietnamese seaport, but not exceed 02 years from the date of generating that maritime lien.

4. Priority order of handling of maritime claims leading to the maritime lien in Vietnam

The order of priority for resolving maritime claims giving rise to maritime liens according to Article 42 of the Vietnam Maritime Code 2015 is as follows:

- Maritime claims leading to the maritime lien shall be handled in the priority order stated in Article 41 of the Vietnam Maritime Code 2015; in the event that any claim on remuneration paid for rescue of a ship comes after other maritime claims leading to the maritime lien, it shall take higher position than these maritime claims.

- Maritime claims leading to the maritime lien provided for by the same paragraph in Article 41 of the Vietnam Maritime Code 2015 shall take equal positions in the priority order; in the even that distributed remuneration amount is not affordable to pay for value of each maritime claim, the ratio of value of a maritime claim to value of all claims shall be considered as the basis for such payment.

- Maritime claims that may arise out of the same event shall be considered as those which arise at the same time.

- Maritime claims leading to the maritime lien against a ship in relation to its final voyage shall be given priority to be settled prior to maritime claims leading to the maritime lien in relation to other voyages.

- Maritime claims that may arise out of the same employment contract in relation to multiple voyages shall be settled along with those in relation to the final voyage.

- With respect to maritime claims on rescue remuneration amount as defined in paragraph 4 Article 41 of the Vietnam Maritime Code 2015, the maritime claim that may arise after others shall be settled prior to other maritime claims.

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