VIETNAM Law and Practice Contributed by: Chuyen Hong Huu Le, Tan Nhat Truong Phan and Tu Anh Tran, Tilleke & Gibbins
2.7.6 Recognition of Transfer of Ownership Interests The transfer of an ownership interest or beneficial interest in the trust will not effectively be recognised as a sale of the aircraft itself. If the legal title to the aircraft remained with the same entity, there would be no intention to assign the lease. 2.8 Aircraft Deregistration and Export 2.8.1 Deregistering Aircraft in This Jurisdiction The aircraft owner, the applicant for registration of the aircraft and the authorised party under the IDERA can apply for deregistration of an aircraft in Vietnam. The normal steps to deregister an aircraft are as fol - lows. • The applicant submits the application for deregis - tration of an aircraft to CAAV. • Within five working days of the date of receipt of the required application, CAAV will issue the deregistration certificate of Vietnamese nationality. This process also involves recalling the registration certificate of Vietnamese nationality or the registra - tion certificate of temporary Vietnamese nationality, except in cases where these certificates were lost or destroyed along with the aircraft. • If the application is incomplete, CAAV will provide a guideline document within two working days of receiving the application to assist the applicant in finalising it. • In case of refusal, CAAV must respond to the appli - cant in writing and clearly state the reason. 2.8.2 Lessee’s/Operator’s Consent In principle, the aircraft owner, mortgagee or lessor can apply for the deregistration of an aircraft with - out the lessee’s consent. However, if the applicant for deregistration is the authorised party of the IDERA, they must provide written consent to deregister and export the aircraft from individuals with higher priority registered international interests or documents prov - ing that higher priority registered international inter - ests have been satisfied. 2.8.3 Required Documentation The owner, mortgagee or lessor will have to provide the following documents to deregister the aircraft:
addition, Vietnamese laws do not specifically provide any mandatory terms that have to be included in the novation agreement or deed. Where a lessor is transferring its contractual rights and obligations under the aircraft lease by way of assign - ment, it is likely that the consent of the lessee will be required in respect of a Vietnamese law-governed lease. 2.7.3 Enforceability of Lease Assignments/ Novations Vietnamese law does not have any specific regula - tions that require an aircraft or engine lease assign - ment or assumption/novation to be translated, certi - fied, notarised or legalised to be enforceable against a domestic party. Nevertheless, it is recommended that this agreement or deed is translated, certified, notarised or legalised to minimise potential challenges from CAAV should any registration procedure issues concerning the assignment or novation arise. 2.7.4 Filing/Registration of Lease Assignments/ Novations Although a copy of the original aircraft lease should have been submitted to CAAV for the approval on the lease, Vietnamese law does not provide any specific filing procedures to: • record an assignment and assumption or novation of the lease which results in a change to the lessor information; or • amend existing registration certificates where necessary (nor are there consequences for a failure to do so). Vietnamese law does not require the execution and delivery of an aircraft or engine lease assignment and assumption or novation in relation to an aircraft reg - istered in Vietnam. 2.7.5 Taxes/Duties Payable on Assignment/ Novation An aircraft lease assignment or novation may be subject to the general tax regime, which can include income tax and VAT under Vietnamese law.
585 CHAMBERS.COM
Powered by FlippingBook