1. Why are Blue Cards often rejected ?
In the international maritime trade system, the Blue Card is the most common bottleneck in the process of applying for convention certificates. These certificates include the International Convention on Civil Liability for Oil Pollution Damage 1992 referred to as the CLC Convention, the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001 referred to as the Bunker Convention, and the Nairobi International Convention on the Removal of Wrecks 2007 referred to as the WRC Convention. A minor error on the Blue Card or in the accompanying dossier can cause the entire convention certificate issuance process to be suspended by the management authority to request amendments, supplements, or clarifications.
1.1. Legal context
According to current regulations, the legal framework governing maritime activities and the issuance of convention certificates in Vietnam has undergone a comprehensive change. Most notably, Circular 22/2025/TT BXD issued by the Minister of Construction on July 31, 2025, and effective from September 30, 2025, replaces the old regulations and establishes new standards for the issuance of civil liability insurance certificates. The authority directly receiving and processing dossiers is the Vietnam Maritime Administration or authorized Maritime Administrations and Port Authorities.
At the same time, the insurance business is also subject to stricter control under Decree 97/2026/ND CP issued by the Government on March 31, 2026, which requires foreign insurance organizations providing cross border services to prove strict financial capacity and report their activities quarterly. The combination of these legal documents creates an extremely strict censorship mechanism, requiring all data submitted to the national public service system to be absolutely accurate.
1.2. Typical situations leading to dossier rejection
The core reasons why a Blue Card is rejected by the ship registry authority usually stem from three main scenarios. The first scenario is when the application is submitted on time but the competent authority discovers that the wording structure on the Blue Card does not fully meet the strict requirements of international conventions. The second scenario arises when the insurance document is drafted up to standard in terms of content but the technical specifications or ownership information of the ship recorded on it do not completely match the Certificate of Ship Registry, the International Tonnage Certificate, or the classification documents. The third scenario focuses on shipowners using the services of independent insurance organizations outside the International Group of Protection and Indemnity Clubs. In this case, the dossier is often returned for the authorities to request clarification on financial capacity, reinsurance contract structures, claims payment mechanisms, or the authority to issue documents.
1.3. Legal consequences and economic damages arising
A technical error on the Blue Card is capable of stalling the entire logistics supply chain. The process of contacting international insurers to amend the document often takes many days, leading to delays in the issuance of convention certificates and consequently severely affecting the commercial exploitation schedule of the ship. If a ship docks or begins a departure journey when the convention certificate has not been newly issued or has expired, Port State Control forces have full authority to issue a ship detention order. This interruption causes massive financial losses, including berthing fees, penalties for breaching cargo transportation contracts, and a severe decline in the commercial reputation of the enterprise.
2. What is a Blue Card and where does it stand in the convention certificate chain ?
2.1. Legal nature of the Blue Card
It must be clearly stated that the Blue Card is absolutely not a convention certificate. In terms of legal nature, this is an insurance confirmation letter or financial security commitment issued by an insurance organization. The sole purpose of this document is to provide input financial evidence for competent state management agencies to use as a basis for evaluating and issuing national convention certificates.
2.2. Clear distinction from Convention Certificates
Contrary to the civil commitment nature of the Blue Card, Convention Certificates such as the CLC Certificate, Bunker Certificate, or WRC Certificate are official public administrative documents. These certificates are issued by competent state authorities, certifying that the ship has fully complied with the obligation to establish a compensation fund in accordance with international law. The convention certificate is the final output document with absolute legal value for use in commercial exploitation and is the official object of inspection by functional agencies.
2.3. The logical chain of forming financial security obligations
This process follows a strict logical chain consisting of four basic steps. The first step is that the shipowner must have a valid insurance contract in accordance with the applicable convention. The second step is for the insurance organization to base on this contract to issue a Blue Card meeting legal requirements. The third step is for the ship registry authority to receive the Blue Card along with the administrative dossier to appraise and issue the corresponding convention certificate. The final step is for the master to carry the valid convention certificate on board throughout the voyage to present upon inspection request.
3. Who reviews the Blue Card and what do they care about ?
3.1. Competent state management authorities
According to the latest legal corridor, applications for CLC Certificates and Bunker Certificates are received and processed by the Ship Registry Authority, including the Vietnam Maritime Administration or authorized local Maritime Administrations and Port Authorities. All procedures are encouraged to be carried out online through the National Public Service Portal using electronic identity accounts.
3.2. Key review criteria
Upon receiving the dossier, the state agency will evaluate it based on five core criteria groups. The first criterion is the validity of the legal entity status of the organization issuing the Blue Card and the authority to sign the document. The second criterion is the absolute accuracy and consistency of ship data. The third criterion is that the scope of financial security must meet the applicable convention depending on the ship type and tonnage. The fourth criterion is that the contract cancellation conditions and notice periods must strictly comply with convention requirements. The fifth criterion is that the right of direct action must not be limited by adverse clauses. Particularly for insurance organizations outside the International Group of Protection and Indemnity Clubs, the management agency will pay special attention to the reliability of the financial security mechanism, the reinsurance program, and the claims payment capacity.
4. Error Group 1: Discrepancies or omissions in ship data
Inconsistencies in ship data on the Blue Card compared to other core legal documents are the leading cause for dossiers being rejected by management agencies.
4.1. Identifying fields prone to discrepancies
On a standard Blue Card, there are many identification data fields prone to errors. These data fields include the ship name, the International Maritime Organization identification number, the radio call sign, the gross tonnage and net tonnage parameters, and the port of registry. In particular, information about the registered shipowner is frequently misrepresented because foreign insurance organizations miswrite the legal entity suffix or record the incorrect legal headquarters address.
4.2. Risks from inconsistent data
This error is extremely serious because the Blue Card is always cross checked by functional agencies against many original data sources such as the Certificate of Ship Registry, Tonnage Certificate, and ship classification databases. Typing just one character wrong in the identification number or recording the wrong gross tonnage parameter will cause the entire dossier to be halted for verification. Gross tonnage is the mathematical foundation for calculating civil liability limits under international conventions. If the tonnage parameter recorded on the Blue Card is lower than reality, the insurance limit will not meet the legal ceiling required to compensate for damages.
4.3. Method of establishing a single source of truth comparison table
To completely prevent this group of errors, enterprises need to establish a comparison table based on the principle of a single source of truth. The legal department must extract data directly from the originals of the Certificate of Ship Registry, Tonnage Certificate, and Classification Certificate. All capitalization, punctuation, and legal entity suffixes must be fixed before sending the request for the insurance organization to issue the Blue Card.
5. Error Group 2: Discrepancies or omissions in insurer data
Besides the identification information of the ship, the legal entity status and legality in the document issuance stage of the insurance organization are also decisive factors in whether the dossier is approved or not.
5.1. Errors in legal entity identification and authority
An extremely common error is that the Blue Card records the wrong official legal entity name of the insurance organization, the wrong country of business registration, or the wrong headquarters address. Many cases show that the document does not clearly indicate whether the issuing unit or branch has the correct scope of civil liability insurance business operations. Furthermore, the person signing the Blue Card sometimes does not clearly state their title of authority or signs by proxy through an agent without attaching any legal basis for authorization.
5.2. Measures to standardize legal entity dossiers
Shipowners need to proactively request partners to standardize the legal entity name in exact accordance with the business operation license. If the Blue Card is issued through an intermediary agent, the enterprise is obligated to attach a power of attorney or equivalent evidence of authority from the original insurance company. At the same time, the document must clearly display contact information including email addresses and hotline phone numbers so that the receiving agency can conduct cross verification when necessary.
6. Error Group 3: Wording structure failing to meet convention requirements
This is the error group with the highest academic expertise content and often consumes the most time to overcome because it relates directly to interpreting the strict requirements of international law.
6.1. Incompatibility in describing the scope of application
The three foundational conventions CLC, Bunker, and WRC govern three completely different groups of subjects and risks. The CLC Convention only applies to ships carrying persistent oil in bulk as cargo, the Bunker Convention applies to bunker oil pollution from all types of ships, and the WRC Convention applies to wreck removal costs. Therefore, if the Blue Card incorrectly describes the scope of security compared to the convention for which the certificate is being applied, the dossier will certainly be rejected.
6.2. Violations regarding termination clauses
One of the reasons why a Blue Card is rejected is the presence of a clause allowing unlawful contract cancellation. International law requires that the insurance contract cannot automatically terminate before the expiration date unless the insurer has sent an official notice to the certificate issuing authority a certain period in advance as required by the convention. If the contract cancellation conditions are not consistent with this regulation, that wording structure will be deemed invalid.
6.3. Violation of the right of direct action
The right of direct action is the ultimate legal tool allowing victims to directly sue the insurance organization. If the wording structure on the Blue Card contains clauses that weaken the victim right of direct action in situations where the convention requires protection, the appraisal agency will immediately request an amendment to the document to ensure the strict liability spirit of international law.
6.4. Guidelines for establishing a minimum wording check standard
To prevent the risk of dossiers being rejected due to legal terminology, enterprises need to use a minimum wording checklist according to each convention topic. Specifically, the review must focus on five main content clusters including the period of validity, cancellation clauses and notice periods, the subject of risk liability, the applicable territorial scope, and points demonstrating the right of direct action if the document content mentions it.
7. Error Group 4: Insurance period and dossier submission schedule
Subjectivity in managing the dossier submission time is the cause of serious delays in the fleet operation process.
7.1. Risks of certificate gaps
The most common error is that the period recorded on the Blue Card does not match the insurance contract period or does not adequately meet the need for certificate issuance. In addition, submitting the dossier too close to the deadline leads to a situation where the old certificate expires before the new certificate is issued. This situation creates a highly dangerous certificate gap, exposing the ship to the risk of detention when operating on international maritime routes.
7.2. Establishing a standard time management process
To completely resolve this issue, shipping lines need to establish an automatic renewal reminder system based on three time milestones. The first milestone is sixty days before the certificate expires, the legal department must review all ship data and correctly identify the applicable convention. The second milestone is thirty days before expiration, the enterprise finalizes the draft wording and requests the insurance organization to issue the original document. The third milestone is seven days before expiration, the final checked version and the dossier set must be ready to be submitted to the management agency. Standardizing a prototype renewal dossier set for repeated use each year will help optimize the entire administrative process.
8. Error Group 5: Missing attached documents for non IG insurers
For independent commercial insurance organizations outside the International Group of Protection and Indemnity Clubs, supervision from national management agencies is extremely strict. Submitting only the Blue Card without supporting documents will certainly result in the dossier being returned.
8.1. Requirements to prove financial capacity and corporate health
To convince the ship registry authority, non IG insurance organizations must provide a comprehensive dossier proving solvency and financial health. These documents include financial data reports that have been independently audited. In the spirit of Decree 97/2026/ND CP regarding foreign organizations providing cross border insurance auxiliary services, state agencies pay special attention to the fact that the insurance organization must prove consecutive profitable business operations over multiple adjacent financial years and have no legal violations.
8.2. Evaluation of reinsurance capacity and claims handling operations
Besides financial strength, the insurance organization must provide details about the structure of the reinsurance program, the list of reinsurers, and the risk retention level of the original insurance company. At the same time, they must prove claims payment capacity through a transparent handling process, past compensation payment history, and are required to establish a network of agents or authorized lawyers headquartered in Vietnam or neighboring geographical areas to promptly resolve incidents.
9. Self review checklist before submission
To proactively eliminate the risk of dossier rejection, enterprises need to integrate this confirmation check process into their operational systems.
9.1. Ship data check category
Number one is that the ship name, IMO number, radio call sign, gross tonnage, port of registry, and registered shipowner information on the Blue Card must match absolutely exactly with the Certificate of Ship Registry, Tonnage Certificate, and classification documents.
9.2. Convention wording and duration check category
Number one is that the applicable convention is correctly determined based on ship characteristics and the Blue Card clearly states the appropriate convention name. Number two is that the insurance period on the Blue Card matches the insurance contract and matches the certificate issuance demand. Number three is that critical wording regarding contract cancellation clauses, notice periods, liability scope, and validity have been thoroughly cross checked. Number four is that the wording structure absolutely does not create any doubt about the right of direct action against the insurer.
9.3. Insurer legal entity check category
Number one is that the insurance organization information records the correct legal entity status, has an authorized signatory, and contact information is clearly displayed on the document.
9.4. Category for non IG organizations and online submission
Number one is that for independent insurance organizations, the document set proving financial, legal, reinsurance, and claims handling operational capacity has been prepared ready to be submitted as soon as the management agency requests. Number two is that all attached documents such as the ship registry certificate, tonnage certificate, classification documents, and certificate application form must be digitized to be uploaded to the National Public Service Portal using a VNeID electronic identity account in accordance with the online process.
10. Practical situations for self reference
Studying failure situations will provide valuable lessons for enterprises during the procedural process.
10.1. Situation of applying for a Bunker Certificate for a dry cargo ship
An enterprise owning a dry cargo ship with a gross tonnage of one thousand units or more submits an application. The frequently occurring error point in this situation is confusion about the tonnage threshold or convention application subject, incorrectly recording the gross tonnage parameter, wrong port of registry, or the contract cancellation notice period clause on the document failing to meet mandatory regulations.
10.2. Situation of applying for a CLC Certificate for an oil tanker
For oil tankers applying for a CLC Certificate, issues frequently questioned by management agencies include incorrectly describing the ship subject and the scope of insurance coverage liability. In addition, the continuity of the insurance period and the appearance of adverse liability exclusion clauses that affect victim rights are also main reasons for the dossier being returned.
10.3. Situation of applying for a WRC Certificate with a non IG insurer
When a shipping line uses services from a non IG insurance organization to apply for a WRC certificate, the receiving agency will immediately request a series of additional documents. The points most often requested for clarification include the reinsurance program structure, evidence of solvency, financial reports, domestic claims processing focal points, and actual compensation payment mechanisms.
11. Conclusion
11.1. Summary of core principles
If an enterprise wants to minimize the risk of a Blue Card being returned by management agencies, the entire dossier preparation process must revolve around three core principles. The first principle is to ensure absolutely correct data. The second principle is to ensure correct legal wording structure according to international convention requirements. The third principle is to strictly adhere to the dossier submission schedule to avoid any certificate validity gaps.
11.2. Recommendations for upgrading operational processes
Maritime transport enterprises need to immediately upgrade their internal operational processes to adapt to the latest legal regulations. Enterprises should prepare full information regarding the IMO number, gross tonnage, ship type, and the convention for which the certificate is needed, then strictly cross check with the self review checklist before sending the instruction requesting the insurance organization to issue the official document.
12. Frequently Asked Questions
12.1. Is the Blue Card a convention certificate ?
The answer is absolutely no. The Blue Card is merely an insurance confirmation letter or financial security document issued by an insurance organization to provide evidence for the competent state agency to use as a basis for issuing the official convention certificate.
12.2. Are data errors or wording errors more common and time consuming ?
Both groups of errors are extremely common in practice. Data discrepancy errors usually cause the dossier to be returned very quickly by the system right from the initial reception stage. Meanwhile, errors in wording structure consume significantly more time to fix because they require the enterprise to go through a complex legal negotiation process to amend the text and clarify the insurance scope with international partners.
12.3. What additional preparations are required for non IG insurers to be approved ?
A non IG insurance organization is strictly required to prepare a comprehensive capacity proof document set in advance. This document set includes four core groups which are legal business operation dossiers, audited financial capacity reports, tiered reinsurance programs, and dossiers proving the capacity to operate and handle claims locally.
12.4. What is the priority sequence for handling a returned Blue Card ?
When a dossier is rejected, the enterprise needs to process it according to a strict priority sequence. The first priority is to immediately correct discrepancies in ship identification data and insurance organization information. The second priority is to accurately finalize the type of convention to be applied. The third priority is to amend the wording structure and insurance period. The final priority is to immediately supplement the capacity proof document set if using the services of a non IG organization.
This article is for informational purposes only and does not replace professional legal advice. For support tailored to your situation, please contact HMLF lawyers.
HARLEY MILLER LAW FIRM
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