ON MECHANISMS AND POLICIES FOR MANAGEMENT OF SERVICE CHARGES AT VIETNAMESE SEAPORTS

1. Scope: This Circular provides for mechanisms and policies for management of service charges at Vietnamese seaports, which include: maximum charges for pilotage service; charge bracket for use of wharves, docks and mooring buoys; charge bracket for container handling services; charge bracket for towage services (hereinafter referred to as “seaport service charges”).

2. Regulated entities: This Circular applies to Vietnamese and foreign organizations and individuals related to provision and use of services at Vietnamese seaports.

For the purposes of this Circular, the following terms are understood as follows:

1. “special purpose vessel used in petroleum industry” (hereinafter referred to as “the oil vessel”) means a vessel that serves petroleum exploration and extraction or engages in activities related to petroleum industry.

2. “tugboat” means a boat designed and registered to tow and assist vessels in entering and leaving wharves, docks and mooring buoys.

3. “exports” mean commodities whose place of delivery (origin) is Vietnam and place of receipt (destination) is overseas.

4. “imports” mean commodities whose place of delivery (origin) is overseas and place of receipt (destination) is Vietnam.

5. “transshipped commodities” mean merchandise carried from abroad to a seaport of Vietnam and preserved in a transshipment area of the seaport in a certain period before being loaded onto and carried by a vessel out of Vietnam’s territory.

6. “commodities in transit” mean merchandise whose place of delivery (origin) and place of receipt (destination) are outside Vietnam’s territory and which pass through or are handled at a seaport of Vietnam or are stored in a warehouse to continue their excursion.

7. "pilotage trip” means a maritime pilot’s continuous maneuvering of a vessel from the position at which the pilot boards the vessel to the position at which he/she disembarks as per regulations.

8. “visit” means a vessel’s 01 entry into and subsequent exit from a maritime zone, which is considered one visit.

9. “waterway route between a mainland’s coast and an island” means a waterway route of transport between a mainland’s coast and an island in a territorial water of Vietnam, which is made public as prescribed by law.

1. The seaport service charges shall be levied on the following international maritime vessels, commodities, and passengers:

a) Vessels that enter, exit, transit or anchor in maritime zones; and the foreign vessels that operate in Vietnamese waters that are not part of seaport waters;

b) Vessels that carry imports, exports, commodities transshipped or in transit in maritime zones;

c) Passenger vessels departing from Vietnam for a foreign country or vice versa; special purpose vessels which operate on international voyages entering, exiting, transiting or anchoring in maritime zones;

d) Imports, exports, commodities transshipped or in transit that are loaded, unloaded, delivered, preserved and stored in maritime zones;

dd) Passengers on passenger vessels departing from a foreign country to Vietnam (or vice versa) by sea or by inland waterway through maritime zones.

2. The seaport service charges shall be levied on the following domestic maritime vessels and commodities:

a) Domestic marine vessels that enter, exit, pass through or anchor in maritime zones;

b) Domestic maritime vessels that carry cargoes and passengers enter, exit, pass through or anchor in maritime zones;

c) Vessels that operate on waterway routes between mainland’s coasts and islands;

d) Domestic cargoes that are loaded, unloaded, delivered, preserved and stored in maritime zones;

dd) Oil vessels which operate at offshore platforms and at the ports specialized in petroleum industry (hereinafter referred to as “petroleum ports”) under the management of a maritime port authority.

3. Service charges shall not be levied on state-owned vessels in accordance with regulations of this Circular.

4. Charges for pilotage service and use of wharves, docks and mooring buoys shall not be levied on vessels that enter or leave a port to avoid storms or transfer people in distress at sea without commodity handling, discharge or embarkation of passengers, provided that the event is confirmed by the port authority; vessels that participate in rescue and salvage or in combating against a storm, flood or natural disaster under an order or endorsement of a competent government authority.

In accordance with applicable laws on seaport service pricing, the service quality and the market conditions, the providers of seaport services shall specify their charges but not exceeding the maximum charges for pilotage service; or within the charge bracket for use of wharves, docks and mooring buoys; the charge bracket for container handling services; and the charge bracket for towage services according to the decision of the Minister of Transport.

1. The charges for pilotage service, use of wharves, docks and mooring buoys, container handling services and towage service shall be levied on international vessels in Vietnam Dong or United States Dollar.

2. The charges for pilotage service, use of wharves, docks and mooring buoys, container handling services and towage service shall be levied on domestic vessels in Vietnam Dong.

3. The conversion of United States Dollar to Vietnam Dong shall be made as prescribed by law.

1. Unit of volume: Gross tonnage (GT) is one of the basic units for pricing of seaport services. If the GT of a vessel is not specified, the conversion method that results in the largest GT shall apply. To be specific:

a) Ocean-going ships and self-propelled inland waterway vehicles: 1,5 deadweight tonnes shall be equivalent to 01 GT;

b) Barges: 01 deadweight tonne shall be equivalent to 01 GT;

c) Tugboats, passenger vessels (including seaplanes) and crane vessels: 01 horse power (HP, CV) shall be equivalent to 0,5 GT; 01 kW shall be equivalent to 0,7 GT; 01 tonne in a crane vessel’s hoisting capacity shall be equivalent to 06 GT;

d) Passenger vessels whose engine power is not specified: 01 passenger seat shall be equivalent to 0,67 GT; 01 berth shall be equivalent to 04 GT;

dd) The gross tonnage of all barges, towboats or tugboats in a fleet of tugboats, towboats or pusher boats shall total up that of the fleet.

2. Unit of engine power: The unit of a vessel’s main engine power shall be HP, CV or KW and rounded up to the nearest integer.

3. Unit of time:

a) Day: 01 day equals 24 hours; a period of 12 hours or less shall be considered 0,5 day, while a period of more than 12 hours shall be considered 01 day;

b) Hour: 01 hour equals 60 minutes; a period of 30 minutes or less shall be considered 0,5 hour, while a period of more than 30 minutes shall be considered 01 hour.

4. The unit of weight of goods (with packing) is tonne or cubic meter (m3) and shall be rounded to the nearest integer (rounded down if the digit in the tenths place is less than 5; rounded up if the digit in the tenths place is 5 or greater). In a single bill of lading, the minimum chargeable weight shall be 01 tonne or 01 m3. If each tonne of goods occupies 02 m3 or more, every 02 m3 occupied shall be converted to 01 tonne.

5. The unit of distance is nautical mile (NM) and rounded up to the nearest integer.

6. The pricing unit for a wharf, dock or mooring buoy is meter (m) of wharf, dock or mooring buoy, and rounded up to the nearest integer.

Regarding container handling services and towage service, Vietnam’s seaport system is divided into 03 following regions:

1. Region I: seaports located on 20 degrees north latitude, including seaports from Quang Ninh to Nam Dinh.

2. Region II: seaports located between 11,5 degrees latitude and 20 degrees latitude, including seaports in Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien Hue, Da Nang, Quang Nam, Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan.

3. Region III: seaports located on 11,5 degrees south latitude, including seaports in Ho Chi Minh city, Ba Ria - Vung Tau, Dong Nai, Binh Duong, Tien Giang, Ben Tre, Dong Thap, Can Tho, An Giang, Vinh Long, Ca Mau, Kien Giang, Long An, Soc Trang and Tra Vinh.

1. Gross tonnage (GT) is one of the fundamental units for pricing of pilotage service, where:

a) The gross tonnage of a vessel carrying liquid cargo shall be 85% of the maximum GT shown in the certificate issued by a registry issued to the vessel as per regulations, regardless of the availability of ballast tanks on such vessel;

b) The gross tonnage of a passenger vessel shall be 50% of the maximum GT shown in the certificate issued by a registry to the vessel as per regulations.

2. A carrier has to notify the pilotage organization at least 06 hours prior to its use of the maritime pilotage service and at least 24 hours prior to its use of the pilotage service at an offshore oil rig. In case of change in pilotage time or cancellation of pilotage service, the carrier must inform the pilotage organization at least 03 hours before the intended time, or 08 hours in case of an offshore oil rig.

3. If the pilot is retained after completing the pilotage, the captain of the vessel shall incur an additional wait charge for the duration during which the pilot is retained.

4. If the pilot has boarded the vessel but cancel the request of pilotage service, the vessel shall be subject to 80% of the charge for pilotage service commensurate with the requested distance of pilotage according to the charge.

5. The charge for pilotage service for a vessel on a voyage to test its machinery or to calibrate its compass shall be 110% of the maximum charge in a given decision of the Minister of Transport.

6. In case a vessel is inoperable due to technical issues and a tugboat has to be used, the charge for pilotage service shall be 150% of the maximum charge in a given decision of the Minister of Transport.

7. The charge for pilotage service requested ad hoc shall be 110% of the maximum charge in a given decision of the Minister of Transport.

8. The pilotage charge for a vessel that moves between the wharves in a port at the request of the director of the port company shall apply the pilotage charges for maritime vessels moving within a port.

9. The pilotage charge for a vessel that enters and exits a maritime zone for fuel, food, drinking water, crew replacement, repair, dismantling or test run shall be 70% of the maximum charge in a given decision of the Minister of Transport.

1. Vessels mooring at multiple positions in dedicated waters inside of maritime zones of a seaport shall incur a charge commensurate to total actual length of time that they moor at a single position.

2. A vessel that is unable to perform from cargo handling due to bad weather conditions for a period of more than 1 day (24 consecutive hours) or concedes its wharf space to another vessel under an order of the director of the port authority shall be exempted from charges for the period of time over which such vessel is not in the process of cargo handling.

3. Gross tonnage (GT) is one of the basic units for pricing of charges for utilization of wharfs, docks and mooring buoys, where:

a) The gross tonnage of a vessel carrying liquid cargo shall be 85% of the maximum GT shown in the certificate issued by a registry issued to the vessel as per regulations, regardless of the availability of ballast tanks on such vessel;

b) The gross tonnage of a passenger vessel shall be 100% of the maximum GT shown in the certificate issued by a registry to the vessel as per regulations.

1. The handling service charge bracket levied on oversized and overloaded freight containers, containers that carry dangerous cargo and containers subject to special handling and storage requirements must not exceed 150% of the charge bracket in a given decision of the Ministry of Transport. In case the seaport enterprise needs to use specialized equipment to assist in the cargo handling, the extra charge shall be negotiated by the two parties.

2. The "Vessels (barges) ↔ Barges, cars, boxcars at wharves" service shall only be provided when the cargo has fully complied with regulations on customs supervision, weight inspection and other regulations before being loaded or unloaded.

3. Regarding new container transport routes at the ports in Region II and the Mekong Delta, port enterprises may apply container handling charges that are 80% of the charge bracket in a given decision of the Ministry of Transport for 03 years from the day on which the new route is officially opened.

1. The charge for towage service shall be calculated as follows:

b) The actual towing time begins from the time the towing vessel starts towing, tugging or pushing the towed vessel to the time such towage is completed at the request of the captain of the towed vessel and the pilot. If the actual towing time is less than 01 hour, it can be rounded up to 01 hour. The maximum towing time shall be 02 hours. If the towing time is more than 02 hours, it must be confirmed by the captain or pilot, and the towage charge shall be 10% of the charge for 01 hour for the entire towing time in excess of 02 hours.

b) In case of provision of a tugboat with the quantity and power higher than the minimum level prescribed in seaport regulation of the regional maritime port authority, the towage service provider shall calculate the charge for towage service according to the minimum quantity and power of the tugboat prescribed in seaport regulation of the regional maritime port authority and the charge bracket in a given decision of the Ministry of Transport;

c) In case of provision of a tugboat with the quantity and power higher than the minimum level prescribed in seaport regulation of the regional maritime port authority at the request of the port authority, pilot, captain or shipping line, the towage service provider shall calculate the charge for towage service according to the actual quantity and power of the tugboat and the charge bracket in a given decision of the Ministry of Transport;

d) If the towage service fails to satisfy the vessel’s demands for entry into to a port, the charterer is entitled to sign another towage contract;

dd) If the towage service fails to satisfy the vessel’s demands for entry into to a port, the towage service provider shall maneuver a tugboat from another area to the towing position. The charge for tugboat maneuver shall be agreed upon by the two parties but must not exceed 70% of the charge bracket in a given decision of the Ministry of Transport and the actual number of hours of maneuver;

e) If the towage service provider provides a tugboat that fails to satisfy power requirement in accordance with the seaport regulation and at least 02 tugboats have to be used, the charge for towage service shall be calculated according to the charge bracket in a given decision of the Ministry of Transport corresponding to the tugboat power in accordance with the seaport regulation.

2. For Azimuth or VSP (Voith Schneider Propeller) tugboats, the charge must not exceed 150% of the charge bracket in a given decision of the Ministry of Transport.

3. If the tugboat arrives at the towed vessel pickup position punctually at the request of towed vessel owner and an approval from the port authority is obtained but the vessel to be towed is absent and keeps the tugboat waiting, the charterer shall incur a wait charge of 50% of the charge bracket in a given decision of the Ministry of Transport and according to the actual number of hours during which a vessel is kept waiting.

4. If the tugboat arrives at the towed vessel pickup position punctually at the request of charterer and an approval from the port authority is obtained but the vessel to be towed is not ready to be maneuvered and the tugboat has to return to the departure position or has to be used for other purposes, the charterer shall incur a wait charge of 50% of the charge bracket in a given decision of the Ministry of Transport and according to the actual number of hours of maneuver.

1. This Circular comes into force as of July 1, 2024.

2. Circular No. 39/2023/TT-BGTVT dated December 25, 2023 of the Minister of Transport on charge brackets for pilotage, use of wharves, docks and mooring buoys, container handling and towage services at Vietnamese Seaports is hereby annulled.

1. The Vietnam Maritime Administration shall organize the implementation of this Circular. In the cases where the change to pricing factors makes the seaport service charges falls below the minimum charge or rise above the maximum charge specified in a given decision of the Ministry of Transport, Vietnam Maritime Administration shall appraise the pricing plan and request the Minister of Transport to adjust the charges as prescribed.

2. Chief of the Office of the Ministry, Chief inspector of the Ministry, General Directors of General Departments, General Director of the Vietnam Maritime Administration, heads of organizations and individuals concerned are responsible for the implementation of this Circular./.