Conditions for doing business in shipping agency services according to the law

1. How does the shipping agency business operate?

Pursuant to Article 166 of the 2005 Commercial Law, which regulates commercial agencies as follows:

“Article 166. Commercial agency

Commercial agency is a commercial activity in which the principal and the agent agree that the agent will act on their own behalf. buy and sell goods to the principal or provide the principal’s services to customers to receive remuneration.”

And based on the provisions of Article 235 of the 2015 Vietnam Maritime Code, shipping agents carry out the following activities:

“Article 235. Shipping agency

Shipping agency is a service that the shipping agent on behalf of the ship owner or ship operator conducts services related to ships operating at the port, including: carrying out procedures for ships arriving and leaving the port; signing shipping contracts, cargo loading contracts, ship charter contracts, and crew hiring contracts; issuing bills of lading or equivalent shipping documents; providing shipping supplies, food, and water; with ship owners or ship operators; services related to seafarers; collecting and disbursing amounts related to ship operations; resolving disputes about shipping contracts or maritime accidents and other services related to ships.”

Thus, the ship agency business is similar to a commercial agency business, so the ship agency will conduct ship-related services on behalf of the ship owner or ship operator. port activities with activities in Article 235 of Vietnam Maritime Code 2015.

2. What conditions do you need to meet to run a shipping agency business?

Pursuant to Article 242 of the 2015 Vietnam Maritime Code, a shipping agency business needs to meet the following conditions:

“Article 242. Conditions for doing business in shipping agency services

1. Enterprises providing shipping agency services in Vietnam must be established in accordance with the law; In the case of a foreign-invested enterprise, it must ensure the capital contribution according to regulations.

2. There are people in charge of operating shipping agency services and people in charge of legal work.

3. Shipping agent employees must be Vietnamese citizens and have a professional certificate in shipping agency.

4. The Government regulates this Article in detail.”

3. What are the responsibilities of a shipping agent in the shipping agency business?

Pursuant to Article 237 of the 2015 Vietnam Maritime Code, the regulations on shipping contracts are as follows:

“Article 237. Contract ship agency contract

A ship agency contract is a written contract between the principal and the shipping agent, whereby the principal entrusts the shipping agent to perform ship agency services for each ship or within a specific period of time.”

Accordingly, the ship agent is responsible for performing ship agency services for each ship or within a specific period as in the signed contract.

In addition, according to Article 238, Article 239 of the Vietnam Maritime Code 2015, the responsibilities of the parties to a shipping agency contract are stipulated as follows:

“Article 238. Responsibilities of ship agents sea

1. The shipping agent is responsible for carrying out necessary activities to carefully protect the legitimate rights and interests of the principal; must comply with the entruster’s requests and instructions; promptly notify the principal of events related to the entrusted work; Accurately calculate revenues and expenses related to entrusted work.

2. The shipping agent is responsible for compensating the principal for damage caused by his fault.

Article 239. Responsibilities of the principal

1. The entruster is responsible for instructing the shipping agent to perform the entrusted service when necessary and must advance at the request of the shipping agent the amount of money expected to be spent on the entrusted service.

2. In case a shipping agent acts beyond the scope of entrustment, the principal must still be responsible for that action, if immediately after receiving this information, the principal does not notify the relevant people that he or she does not recognize this action of the shipping agent.”

Thus, the shipping agent is responsible for implementing the shipping agency contract and the specific responsibilities in Article 238 of the Vietnam Maritime Code. 2015.