DECREE

Regarding the amendment and supplementation of certain articles of Decree No. 01/CP dated January 3, 1996 of the Government on administrative penalties for violations in the field of commerce

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THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Trade Law on May 23, 1997;

Pursuant to the Enterprise Law dated June 26, 1999;

Pursuant to the Ordinance on Handling Administrative Violations dated July 6, 1995;

At the proposal of the Minister of Trade,

DECREE:

Article 1. Amending and supplementing certain provisions stipulated in Decree No. 01/CP dated January 3, 1996 of the Government on administrative penalties for violations in the field of commerce (referred to as Decree No. 01/CP) as follows:

1. Supplementing point d of Clause 2 of Article 1 as follows:

d) Violating regulations on labeling goods and product labels.

2. Amend and supplement Article 4 as follows:

Article 4. Administrative penalties for violations of business registration regulations for enterprises or branches, Representative Offices of trading enterprises.

1. Warning or imposing a fine from VND 100,000 to VND 500,000 for one of the following violations:

a) Not keeping the Business Registration Certificate, Establishment Certificate, or Operation Certificate of Representative Office, Branch at the registered business premises.

b) No longer having the Business Registration Certificate, Establishment Certificate, or Operation Certificate of Representative Office, Branch or a valid copy thereof without reporting to the issuing authority.

2. Imposing a fine from VND 200,000 to VND 1,000,000 for temporarily suspending business operations without notifying the issuing authority, or ceasing business operations without declaring name cancellation as prescribed.

3. Imposing a fine from VND 1,000,000 to VND 3,000,000 for leasing or lending the Business Registration Certificate or Establishment Certificate or Operation Certificate of Representative Office, Branch.

4. Imposing a fine from VND 2,000,000 to VND 5,000,000 for one of the following violations:

a) Leasing or borrowing the Business Registration Certificate or Establishment Certificate or Operation Certificate of Representative Office, Branch.

b) Engaging in business or activities not in accordance with the contents recorded in the Business Registration Certificate or Establishment Certificate or Operation Certificate of Representative Office, Branch.

c) The contents of the Business Registration Certificate or Establishment Certificate or Operation Certificate of Representative Office, Branch have been altered, differing from the registered contents.

d) Continuing business operations when already suspended or had their Business Registration Certificate or Establishment Certificate or Operation Certificate of Representative Office, Branch revoked.

5. Imposing a fine from VND 5,000,000 to VND 10,000,000 and suspending business operations for engaging in business without registration or business license when dealing with goods that require a business license according to the law.

6. The provisions of Clauses 1, 2, 3, 4, and 5 of this Article shall also apply to violations concerning Investment License, Decision on Establishing Branch or Representative Office of foreign-invested enterprises, License for Establishing Representative Office, Branch of foreign traders operating trade and services in Vietnam.

7. Supplementary form of penalty: suspending or revoking the Business Registration Certificate or Operation Certificate of Representative Office, Branch for six months for violations stipulated in Clause 3 and point c of Clause 4 of this Article.

3. Amend and supplement Article 5 as follows:

Article 5. Administrative penalties for violations of business registration regulations for individual households.

1. Warning or imposing a fine from VND 50,000 to VND 200,000 for one of the following violations:

a) No longer having the Business Registration Certificate without reporting to the issuing authority.

b) Not keeping the Business Registration Certificate or a valid copy thereof at the registered business location.

c) Temporarily suspending business operations without notifying the issuing authority.

d) Not returning the Business Registration Certificate to the issuing authority when transferring the business location to another district or county.

2. Imposing a fine from VND 200,000 to VND 1,000,000 for leasing or lending the Business Registration Certificate.

3. Imposing a fine from VND 200,000 to VND 2,000,000 for one of the following violations:

a) Leasing or borrowing the Business Registration Certificate.

b) Engaging in business not in accordance with the contents recorded in the Business Registration Certificate.

c) The contents of the Business Registration Certificate have been altered, differing from the registered contents.

d) Continuing business operations when already decided to suspend business operations by the competent authority, or had the Business Registration Certificate revoked.

4. Imposing a fine from VND 2,000,000 to VND 5,000,000 and suspending business operations for engaging in business without registration or business license when dealing with goods that require a business license according to the law.

5. Supplementary form of penalty: suspending or revoking the Business Registration Certificate for a period of three to six months for violations stipulated in Clause 2 and point c of Clause 3 of this Article.

4. Supplementing Article 10 as follows:

Article 10a. Penalties for violations of labeling regulations.

1. A warning or a fine of VND 50,000 to VND 200,000 shall be imposed for any of the following acts:

a) Trading goods with damaged labels that are not intact or labels that are unclear and unreadable.

b) Trading goods with labels that do not comply with the prescribed size, position, method of recording, or language.

2. A warning or a fine of VND 100,000 to VND 500,000 shall be imposed for trading goods with outdated labels that do not comply with regulations.

3. A fine of VND 200,000 to VND 1,000,000 shall be imposed for any of the following violations regarding mandatory information on labels:

a) Trading or storing goods with labels that do not indicate the name of the product, the name and address of the trader responsible for the product.

b) Trading or storing goods with labels that do not indicate the quantity of the product, its composition, or primary quality indicators.

c) Trading or storing goods with labels or accompanying documents that do not indicate the production date, expiration date, storage period, usage instructions, or storage instructions.

d) Trading or storing imported goods with labels that do not indicate the country of origin as required.

đ) A fine of VND 500,000 to VND 2,000,000 shall be imposed for violations under Clause 3 of this Article if the goods are medicines for humans, animals, plants, vaccines, or medical products.

4. A fine of VND 500,000 to VND 2,000,000 shall be imposed for trading goods that must have labels according to the law but lack labels.

5. A fine of VND 500,000 to VND 2,000,000 shall be imposed for trading goods with labels that incorrectly record non-mandatory information as stipulated in the Labeling Regulations.

6. A fine of VND 1,000,000 to VND 3,000,000 shall be imposed for any of the following acts:

a) Trading or storing goods with labels that incorrectly record the name of the product, the name and address of the trader responsible for the product.

b) Trading or storing goods with labels or accompanying documents that incorrectly record the production date, expiration date, storage period, usage instructions, or storage instructions.

c) Trading or storing imported goods with labels that incorrectly record the country of origin as required.

7. A fine of VND 2,000,000 to VND 5,000,000 shall be imposed for trading or storing goods with labels whose content or form has been erased, altered, or where the label has been replaced or substituted.

8. A fine of VND 2,000,000 to VND 5,000,000 shall be imposed for any of the following acts: trading, storing, transporting labels or goods labels whose content or form does not comply with legal regulations.

9. A warning or a fine of VND 100,000 to VND 500,000 shall be imposed for any of the following acts:

a) Producing or importing goods with damaged labels that are not intact or labels that are unclear and unreadable.

b) Producing or importing goods with labels that do not comply with the prescribed size, position, method of recording, or language.

10. A fine of VND 500,000 to VND 2,000,000 shall be imposed for any of the following acts:

a) Producing or importing goods with labels that do not indicate the name of the product, the name and address of the trader responsible for the product.

b) Producing or importing goods with labels that do not indicate the quantity of the product, its composition, or primary quality indicators.

c) Producing or importing goods with labels that do not indicate or lack accompanying documents indicating the production date, expiration date, storage period, usage instructions, or storage instructions.

11. A fine of VND 500,000 to VND 2,000,000 shall be imposed for producing or importing goods with labels that incorrectly record non-mandatory information as stipulated in the Labeling Regulations.

12. A fine of VND 1,000,000 to VND 5,000,000 shall be imposed for any of the following acts:

a) Producing or importing goods with labels that incorrectly record the name of the product, the name and address of the trader responsible for the product.

b) Producing or importing goods with labels or accompanying documents that incorrectly record the production date, expiration date, storage period, usage instructions, or storage instructions.

c) Producing or importing goods with labels that incorrectly record the origin of the product.

13. A fine of VND 2,000,000 to VND 10,000,000 shall be imposed for producing or importing goods that must have labels according to the law but lack labels or fail to supplement Vietnamese-language labels.

14. A fine of VND 2,000,000 to VND 10,000,000 shall be imposed for producing or importing goods with labels whose content has been erased, altered, or where the label has been replaced or substituted.

15. A fine of VND 2,000,000 to VND 10,000,000 shall be imposed for producing, printing, or importing labels or goods labels whose content or form does not comply with legal regulations.

16. A fine of VND 2,000,000 to VND 10,000,000 shall be imposed for trading, transporting, or storing for sale labels, trademarks, or packaging materials that bear signs similar or identical to protected trademarks or geographical indications.

17. A fine of VND 5,000,000 to VND 20,000,000 shall be imposed for producing or importing labels, trademarks, or packaging materials that bear signs similar or identical to protected trademarks or geographical indications.

18. Additional penalties and other measures:

a) Order the cessation of circulation of goods with violating labels as provided for in Clauses 1, 2, 3, 4, 6, 9, 10, 12, 13, and 15 of this Article.

b) Order the destruction of violating labels as provided for in Clauses 8, 16, and 17 of this Article.

c) Confiscate contraband items and means of administrative violation as provided for in Clauses 7 and 14 of this Article.

d) Order the correction of violations as provided for in Clauses 5 and 10 of this Article.

d) In addition to the aforementioned forms of punishment, before putting goods into circulation, the violators must comply with the regulations on product labeling as prescribed, and may also be compelled to take remedial measures or compensate for damages up to VND 1,000,000 to the person suffering losses due to violations under Clause 7 and 14 of this Article.

Article 10b. Punishment for Violations in Product Labeling that Do Not Accurately Reflect the Quantity, Composition, and Main Quality Indicators of the Announced Goods.

1. A fine of VND 200,000 to VND 1,000,000 shall be imposed on the act of trading goods where the contents stated on the product label do not match the actual quantity of the goods but do not harm human health, animals, plants, ecological environment, or the environment.

2. A fine of VND 1,000,000 to VND 3,000,000 shall be imposed on the act of trading goods where the contents stated on the product label do not match the natural origin, name, function, composition, and main quality indicators of the goods but do not harm human health, animals, plants, ecological environment, or the environment.

3. A fine of VND 500,000 to VND 2,000,000 shall be imposed on the act of producing or importing goods where the quantities stated on the product label do not match the actual quantity of the goods.

4. A fine of VND 2,000,000 to VND 5,000,000 shall be imposed on the act of producing or importing goods where the contents stated on the product label regarding the natural origin, name, function, composition, and main quality indicators do not match the actual goods in one of the stated contents but do not harm human health, animals, or the environment.

5. A fine of VND 5,000,000 to VND 10,000,000 shall be imposed on the following acts of violation:

a) Trading goods that add unauthorized impurities or additives which alter the quality; lacking or having insufficient active ingredients, different from those listed on the label or packaging; lacking or not having sufficient effective components to achieve the intended effect; having active ingredients or effective components different from those listed on the label or packaging.

b) Trading goods whose value does not correspond to their natural origin, name, and function as announced, affecting human health, animals, plants, or ecological environment, or the environment.

c) Trading goods that lack necessary components or are replaced by other materials or parts that do not meet the quality standards of the announced goods, causing adverse effects on production, human health, animals, plants, or ecological environment, or the environment.

6. A fine of VND 10,000,000 to VND 20,000,000 shall be imposed on the following acts of violation:

a) Producing or importing goods that add unauthorized impurities or additives which alter the quality; lacking or having insufficient active ingredients, different from those listed on the label or packaging; lacking or not having sufficient effective components to achieve the intended effect; having active ingredients or effective components different from those listed on the label or packaging.

b) Producing or importing goods whose value does not correspond to their natural origin, name, and function as announced, affecting human health, animals, or ecological environment, or the environment.

c) Producing or importing goods that lack necessary components or are replaced by other materials or parts that do not meet the quality standards of the announced goods, causing adverse effects on human health, animals, or ecological environment, or the environment.

Supplementary Forms of Punishment and Other Measures:

a) Compel the violator to destroy the non-compliant product labels as stipulated in Clause 1, 2, 3, and 4 of this Article and affix new labels in accordance with the provisions of the law.

b) Confiscate goods and means of transportation involved in violations as stipulated in Clause 5 and 6 of this Article.

c) Compel the violator to remedy the consequences of the violations as stipulated in Clause 5 and 6 of this Article.

d) Compel the violator to suspend business operations for six months or one year; in cases of serious consequences, transfer the case to competent authorities for criminal prosecution of organizations and individuals who violate the provisions of point b, c of Clause 5 or point b, c of Clause 6 of this Article.

Article 10c. Penalties for violations concerning domestic product labels and imported product labels.

1. A warning or a fine from 50,000 VND to 200,000 VND shall be imposed for the act of using domestic product labels in incorrect positions, damaged labels, or labels not directly affixed to the goods.

2. A fine from 100,000 VND to 2,000,000 VND shall be imposed for the act of trading, storing, or transporting domestically produced goods that require labels but lack such labels.

3. A fine from 2,000,000 VND to 5,000,000 VND shall be imposed for the act of producing domestically manufactured goods that require labels but fail to affix them.

4. A fine from 100,000 VND to 1,000,000 VND shall be imposed for the act of trading, transporting, or storing imported goods that require labels but have incorrectly positioned labels, or labels that do not match the specified type.

5. A fine from 200,000 VND to 5,000,000 VND shall be imposed for the act of trading, transporting, or storing imported goods that require labels but lack labels or have damaged labels that cannot be read, or labels not directly affixed to the goods.

6. A fine from 5,000,000 VND to 20,000,000 VND shall be imposed for the act of producing, selling, storing, or transporting domestic product labels or imported product labels not issued by the State.

7. Additional penalties: Seizure of goods and means of transport for violations stipulated in Clauses 2, 3, and 5 of this Article; compulsory destruction of evidence of violation stipulated in Clause 6 of this Article.

Article 2. This Decree shall take effect fifteen days from the date of signature. The other provisions of Decree No. 01/CP dated January 3, 1996 of the Government on administrative penalties in the field of commerce shall remain in force.

Article 3. The Ministry of Trade shall be responsible for guiding the implementation of this Decree.

Article 4. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial people's committees under the central government shall be responsible for enforcing this Decree.