Nghị định 111/2016/ND-CP

DECREE

REGULATIONS ON CONDITIONS FOR LICENSING SHIP BUILDING, MODIFICATION AND REPAIR SERVICES

Pursuant to the Law on Government organization dated June 19, 2015;

Pursuant to Vietnam Maritime Code dated November 25, 2015;

Pursuant to the Law on investment dated November 26, 2014;

At the request of the Minister of Transport,

The Government has promulgated the Decree stipulating conditions for licensing ship building, modification and repair services;

Chapter I

GENERAL PROVISIONS

Article 1. Governing scope

This Decree stipulates conditions for licensing ship building, modification and repair services except ship building, modification and repair services for national defense and security, and construction, modification and repair of fishing boats;

Article 2. Regulated entities

This Decree applies to organizations, individuals performing ship building, modification and repair services in Vietnam.

Article 3. Interpretation of terms

In this Decree, some terms are construed as follows:

1. Type 1 ship building facilities (herein ‘type 1 facilities’) refer to the facilities that meet all conditions for performing ship building, modification and repair services.

2. Type 2 ship building facilities (type 2 facilities) refer to the facilities that meet all conditions for construction, repair and modification of passenger ships with loading capacity less than 100 passengers, seagoing non-passenger ships with design length less than 90 m except oil tankers from 1,000 GT and over, dangerous chemical tankers and LPG tankers.

3. Ship building refers to the process of construction of a ship from keel laying to putting the ship into operation.

4. Ship modification refers to the modification of one of following specifications of a ship:

a) Main dimensions;

b) Uses;

c) Compartmentation;

d) Cargo storage capacity;

dd) Passenger area;

5. Ship repairs refer to activities of restoration of a seagoing ship on a slipway, floating dock or shipyard after the ship is brought on the shore.

Article 4. General conditions

1. Ship building, modification and repair facilities are enterprises which are established and operate according to laws.

2. Ship building, modification and repair facilities shall comply with the conditions as prescribed in this Decree and other relevant law provisions.

Chapter II

CONDITIONS FOR LICENSING SHIP BUILDING, MODIFICATION AND REPAIR SERVICES

Article 5. Technical personnel, quality inspectors, shipbuilders

1. Ship building, modification and repair facilities shall be staffed with technical personnel and quality inspectors to meet requirements for ship building and modification as follows:

a) For type 1 facilities: Four persons attaining university degree in shipbuilding, four persons in ship engineering and two persons in ship electricity;

b) For type 2 facilities: Two persons attaining university degree in shipbuilding, four persons in ship engineering and one person in ship electricity;

2. Technical personnel and quality inspectors shall have at least 24 months of experience in ship building, modification and repairs.

3. Facilities that construct ships of metal body shall be staffed with at least five welders, two mechanics, three electricians and three painters according to national technical regulation on ship building and repair facilities. Welders shall have to attain certificates of specialties in accordance with national technical regulation on classification and construction of seagoing ships or equivalent.

4. Facilities that construct ships of non-metal body shall be staffed with at least three ship’s hull fabricators , one mechanic, one electrician and two painters according to national technical regulation on ship building and repair facilities.

Article 6. Facilities and equipment

Ensure sufficiency of facilities and equipment according to national technical regulation on ship building and repair facilities;

Article 7. Labor hygiene and safety, fire prevention and fighting

1. Ensure human resources and labor hygiene and safety plan as prescribed in the Government’s Decree No. 39/2016/ND-CP dated May 15, 2016 detailing the implementation of a number of articles of the Law on Labor Hygiene and Safety and the Government’s Decree No. 37/2016/ND-CP dated May 15, 2016 detailing and guiding the implementation of a number of articles of the Law on Labor Hygiene and Safety concerning compulsory insurance for labor accidents and occupation-related diseases.

2. Ensure fire safety conditions, firefighting plans meet the Government’s Decree No. 79/2014/ND-CP dated July 31, 2014 detailing the implementation of a number of articles of the Law on fire prevention and fighting and the Law on Amendments to a number of articles of the Law on fire prevention and fighting.

Article 8. Environmental protection

1. Ensure adequacy of facilities to receive and recover waste from ships for treatment according to International Convention for the prevention of environment pollution from ships (MARPOL) to which Vietnam is a signatory.

2. Ensure adequacy of environmental protection documents approved by competent agencies according to the Law on Environment protection and the Government’s Decree 18/2015/ND-CP dated February 14, 2015 stipulating planning for environmental protection, strategic environment assessment, environmental impact assessment and environmental protection plans.

3. Ensure adequacy of human resources, systems, and equipment for management and treatment of waste generated at the facilities as prescribed in Article 68 of the Law on Environment protection;

Article 9. Quality control system

1. Type 1 facilities shall establish and maintain quality control system according to ISO 9001 or equivalent, safety and environment management system according to ISO 14001 or equivalent.

2. Type 2 facilities shall maintain the ship building and modification process in accordance with national technical regulation on classification and construction of seagoing ships.

Chapter III

CONDITIONS FOR LICENSING SHIP REPAIR SERVICES

Article 10. Technical personnel, quality inspectors, ship repairers

1. Ship repair facilities shall maintain a technical division and a quality inspection division separately to meet requirements for ship repairs. Each division shall encompass at least one person attaining university degree in shipbuilding, one person in ship engineering and one person attaining certificates of ship electricity from vocational schools or colleges.

2. Technical personnel and quality inspectors shall have at least 12 months of experience in ship building, modification and repairs.

3. Facilities that construct ships of metal body shall be staffed with at least three welders, one mechanic, one electrician and two painters according to national technical regulation on ship building and repair facilities. Welders shall have to attain certificates of specialties in accordance with national technical regulation on classification and construction of seagoing ships or equivalent.

4. Facilities that construct ships of non-metal body shall be staffed with at least two ship’s hull fabricators, one mechanic, one electrician and one painter according to national technical regulation on ship building and repair facilities.

Article 11. Facilities and equipment

Ensure sufficiency of facilities and equipment according to national technical regulation on ship building and repair facilities;

Article 12. Labor hygiene and safety, fire prevention and fighting

1. Ensure human resources and labor hygiene and safety plan as prescribed in the Government’s Decree No. 39/2016/ND-CP dated May 15, 2016 detailing the implementation of a number of articles of the Law on Labor Hygiene and Safety and the Government’s Decree No. 37/2016/ND-CP dated May 15, 2016 detailing and guiding the implementation of a number of articles of the Law on Labor Hygiene and Safety concerning compulsory insurance for labor accidents and occupation-related diseases.

2. Ensure fire safety conditions, firefighting plans meet the Government’s Decree No. 79/2014/ND-CP dated July 31, 2014 detailing the implementation of a number of articles of the Law on fire prevention and fighting and the Law on Amendments to a number of articles of the Law on fire prevention and fighting.

Article 13. Environmental protection

1. Ensure adequacy of facilities to receive and recover waste from ships for treatment according to International Convention for the prevention of environment pollution from ships (MARPOL) to which Vietnam is a signatory.

2. Ensure adequacy of environmental protection documents approved by competent agencies according to the Law on Environment protection and the Government’s Decree 18/2015/ND-CP dated February 14, 2015 stipulating planning for environmental protection, strategic environment assessment, environmental impact assessment and environmental protection plans.

3. Ensure adequacy of human resources, systems, and equipment for management and treatment of waste generated at the facilities as prescribed in Article 68 of the Law on Environment protection;

Article 14. Quality control system

Type 2 facilities shall maintain the ship building and modification process in accordance with national technical regulation on classification and construction of seagoing ships.

Chapter IV

CERTIFICATION, RE-CERTIFICATION OF ELIGIBILITY FOR PERFORMING SHIP BUILDING, MODIFICATION AND REPAIR SERVICES

Article 15. Authority to certify, re-certify eligibility for ship building, modification and repair services

The Vietnam Register affiliated to the Ministry of Transport shall be responsible for certifying, re-certifying eligibility for performing ship building, modification and repair services as prescribed herein and announce the list of eligible facilities on its website.

Article 16. Applications, procedures for certification, re-certification of eligibility for ship building, modification and repair services

1. Applications shall be submitted in person or by post or other appropriate means to the Vietnam Register.

2. The application for recognition of eligibility for performing ship building, modification and repair services shall include:

a) Application form according to Form 01 in the Annex enclosed herewith;

b) Written description of material facilities required for production (Diagram of facilities, working offices, factories, warehouses, production facilities, measurement and inspection equipment);

c) Quality handbook along with relevant materials and processes including environmental protection, labor safety, fire prevention and fighting documents approved by competent agencies according to laws;

d) List of technical personnel and quality inspectors accompanied by copy of related diplomas, certificates.

3. Upon making notification of expiration of ship building, modification and service repair services or making requests for amendments or supplements to items certified as eligible, relevant organization, individual shall submit the application to the Vietnam Register. The application includes:

a) Application form according to Form 01 in the Annex enclosed herewith;

b) Report on the facilities’ activities between the date of certification and the date of application for re-certification;

c) Documents as prescribed in Points b, c and d, Clause 2 of this Article in case of changes.

4. Procedures for certification, re-certification of eligibility for ship building, modification and repair services:

a) Any organization or/and individual that wishes to apply for certification, re-certification of eligibility for performing ship building, modification and repair services shall submit one application to the Vietnam Register and pay expenses related to assessment and appraisal according to laws;

b) Within three working days since receipt of the application, the Vietnam Register shall provide instructions on fulfillment of the application as prescribed herein (in case the application is eligible) or issue the written notice on the date for conducting facilities site inspection (in case the application is eligible).

c) The Vietnam Register shall carry out facilities site inspection. If the result of assessment is satisfactory, the Vietnam Register shall issue the Notification of eligibility for performing ship building, modification and repair services (herein ‘the Notification’) according to Form 02 in the Annex enclosed herewith and announce the list of eligible facilities on its website within one working day since the date of completion of facilities site inspection.

If the result of assessment is unsatisfactory, the Vietnam Register shall issue the written notification to the facilities specifying the reasons for failure within one working day since the date of completion of facilities site inspection.

Article 17. Validity period of the Notification

Validity period of the Notification shall be five years since date of issue.

Article 18. Revocation of the Notification

1. The Notification shall be revoked in following cases:

a) At the request of the facilities;

b) The quality control system is not maintained as prescribed;

c) Conditions as prescribed in this Decree are not maintained during operation.

2. The Vietnam Register shall issue the written notification of revocation of the Notification in the cases as prescribed in Clause 1 of this Article to related facilities and remove names of such facilities from the list of eligible facilities published on its website.

Chapter V

IMPLEMENTATION

Article 19. Responsibility for implementation

1. Ministry of Transport:

a) Unify management of ship building, modification and repair activities;

b) Direct the Vietnam Register to organize, provide instructions on, activities of assessment for certification of edibility for performing ship building, modification and repair services as prescribed herein; Conduct professional inspection or irregular inspection to ensure the facilities maintain the conditions as prescribed herein; develop application of information technology to activities of management, assessment and certification of eligibility for performing ship building, modification and repair services and related data management; Report activities of assessment and certification of eligibility for performing ship building, modification and repair services according to laws;

c) Organize investigation, inspection and handling of acts in violation of regulations on fulfillment of conditions for licensing ship building, modification and repair services as prescribed herein and other relevant law provisions;

d) Organize formulation of, making amendments to, and issue national technical regulations on ship building, modification and repair facilities in conformity with ship building technology development level at home and abroad;

2. The Ministry of Natural Resources and Environment shall be responsible for presiding over and cooperating with the Ministry of Transport in providing specific instructions on environmental pollution prevention and combat plans to ship building, modification and repair facilities.

3. The Ministry of Public Security shall be responsible for presiding over and cooperating with the Ministry of Transport in providing specific instructions on fire prevention and fighting plans to ship building, modification and repair facilities.

4. The Ministry of Science and Technology shall be responsible for presiding over and cooperating with the Ministry of Transport in organizing inspection and calibration of measurement and inspection equipment according to laws on metrology.

5. The People’s Committees of provinces within their own functions, tasks, powers shall be responsible for performing state administration of activities carried out by ship building, modification and repair facilities in the administrative division according to laws.

6. Ship building, modification and repair facilities shall be responsible for complying with regulations on conditions for performing ship building, modification and repair services as prescribed herein and other relevant law provisions; maintaining the conditions during operation.

Article 20. Inspection and investigation of conditions for performing ship building, modification and repair services

Ship building, modification and repair facilities shall be subject to investigation, professional inspection by competent agencies of conditions for performing ship building, modification and repair services and during operation according to laws.

Chapter VI

IMPLEMENTARY PROVISIONS

Article 21. Effect

This Decree takes effect since July 01, 2016.

Article 22. Transitional provisions

Any ship building, modification and repair facility that was established before July 01, 2016 may continue operation and shall have to meet all provisions as prescribed herein since July 01, 2019.

Article 23. Implementation

1. The Minister of Transport shall preside over and cooperate with ministries, sectors and People’s Committees of relevant provinces and municipalities in executing this Decree.

2. Ministers, heads of ministerial-level agencies, heads of Governmental agencies, presidents of the People’s Committees of provinces and municipalities shall be responsible for executing this Decree./.