The Swedish P&I Club has issued alert regarding implication for owners in wreck removal situations in Vietnam.
The Government of Vietnam has issued Decree No. 114/2014/ND-CP dated 26 November 2014 which allows the import of used ships into Vietnam for demolition. It is required that those organisations and/or companies who wish to import used ships for demolition have to obtain an appropriate license issued by Ministry of Transport for such importation/demolition:
Article 6.2 of the Decree provides that “in case the ships that are foreign flagged and/or nationality, encounters an accident, damages itself or sinks in Vietnam and wishes to be demolished in Vietnamese Territory, it is required that both the import and demolition of such ship(s) shall comply with this Decree as well as any other relevant regulations”.
This means when a ship sinks, such as the Heung A Dragon (7/11/13) Vung Tau Bay and the owners then wish to have their damaged/sunken ship salved, then disposed off within Vietnam. It will have to be done via an approved and licensed company for the “importing and demolishing of used ships”.
The Club advises that if an owner wishes to sell the damaged/sunken ship to a salvor who has no license on the “importation and demolition of used ships”, within Vietnam and, such sale is on “as is where is” basis with all liabilities transferred to the salvor, owners may suffer the risk that the unlicensed salvor would be unable to complete customs clearance for importation and demolition. Further, any such contract signed with a would be importer is likely to be considered invalid with ownership/risks of the damaged or wrecked vessel remain with the original owners.
Source: The Swedish P&I Club
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