Joint Circular No. 10/2000/TTLT-BTM-BTC-BCA-BKHCN guiding the implementation of Directive No. 31/1999/CT-TTg dated October 27, 1999 of the Prime Minister on combating the production and sale of counterfeit goods.

CIRCULAR

JOINT CIRCULAR OF THE MINISTRY OF TRADE - MINISTRY OF FINANCE -
MINISTRY OF PUBLIC SECURITY - MINISTRY OF SCIENCE AND TECHNOLOGY AND ENVIRONMENT
NO. 10/2000/TTLT-BTM-BTC-BCA-BKHCNMT
DATE April 27, 2000 GUIDING IMPLEMENTATION
DIRECTIVE NO. 31/1999/CT-TTg OCTOBER 27, 1999
OF THE PRIME MINISTER ON COMBATING THE PRODUCTION AND SALE OF FAKE GOODS
Implementing Directive No. 31/1999/CT-TTg dated October 27, 1999 of the Prime Minister on combating the production and sale of fake goods, the Ministry of Trade, the Ministry of Finance, the Ministry of Public Security, and the Ministry of Science and Technology and Environment guide the organization and implementation as follows:

I - GENERAL PRINCIPLES

1- Combating fake goods is the responsibility of all Ministries, sectors, People's Committees at all levels, political and social organizations, enterprises, business households, and the entire population.

2- All acts of producing, processing, manufacturing, packaging, assembling, selling, storing, exporting, importing, transporting, advertising, marketing, promoting fake goods upon discovery must be strictly handled according to the law. Fake goods, equipment, tools used for producing and selling fake goods shall be confiscated (except in special cases with separate provisions). Producers and sellers of fake goods and substandard goods shall be administratively sanctioned or criminally prosecuted depending on the severity of their violations.

3- When imposing administrative sanctions for the act of producing and selling fake goods, the competent authority handling the case must base its decision on relevant Government Decrees on administrative sanctions and comply strictly with the procedures, formalities, and jurisdiction stipulated in the Administrative Violations Handling Ordinance.

4- If the case involves signs of the crime of producing and selling fake goods as defined in the Penal Code, the inspection agency discovering the violation shall transfer the dossier along with the evidence of the violation to the competent authority for criminal investigation and prosecution.

5- Strictly prohibit organizations and individuals from producing and circulating goods that do not meet quality standards. Quality standards include Vietnamese standards, industry standards, enterprise standards, or international standards which must be strictly adhered to. Organizations and individuals engaged in production and business must comply with legal regulations on trademarks, industrial designs, geographical indications of goods protected by the State, and labeling rules.

6- This Circular does not regulate goods bearing the name of fake goods recognized by consumers such as false teeth, fake antiques, artificial limbs, artificial flowers...

II - EXPLANATION OF SOME TERMS

IN THIS CIRCULAR

1- Product label: Is a written, printed, drawn, or imprinted image, symbol directly on the product or packaging, firmly attached, affixed, or fastened to convey necessary information primarily about the product.

2- Product trademark: Are signs used to distinguish products or services of different production and business establishments. A product trademark can be a word, image, or combination thereof expressed in one or more colors.

3- Product name: Is the specific name of a product or commodity that reflects the nature of the product standardized or familiar to consumers.

4- Geographical indication of goods: Is the name of a country or locality used to indicate the origin of goods from that country or locality, provided that these goods have unique characteristics based on distinctive and superior geographical conditions, including natural and human factors or both.

5- Industrial design: Is the external appearance of a product expressed through lines, shapes, colors, or combinations thereof, new to the world, serving as a model for the production of industrial or handicraft products.

III - FAKE GOODS

Goods exhibiting any of the following signs shall be considered fake goods:

1- Quality or utility fake goods.

1. 1- Goods without utility value or with utility value inconsistent with their inherent nature, name, and function.

1. 2- Goods containing unauthorized additives or fillers that alter their quality; lacking or having insufficient active ingredients, containing different active ingredients than those stated on the label or packaging; lacking or having insufficient effective components, containing different effective components than those stated on the packaging.

1. 3- Goods lacking essential raw materials or replaced by other materials or parts of inferior quality compared to the published quality standards, causing adverse effects on production, human health, animal health, plant health, or ecological environment.

1. 4- Goods listed under mandatory standards but not implemented, causing adverse effects on production, human health, animal health, plant health, or ecological environment.

1. 5- Goods not certified as conforming to standards but using certificates or marks indicating conformity to standards (for mandatory goods categories).

2- Fake goods regarding trademarks, industrial designs, source, and origin of goods:

2. 1- Goods bearing a trademark identical or similar enough to cause confusion with another person's protected trademark for the same type of goods, including trademarks protected under international treaties to which Vietnam is a party, without permission from the trademark owner.

2. 2- Goods bearing signs or packaging bearing signs identical or similar enough to cause confusion with protected trade names or geographical indications of goods.

2. 3- Goods or parts of goods having an external appearance identical to a protected industrial design without permission from the industrial design owner.

2. 4- Goods bearing signs falsely indicating the source or origin of goods, causing misinterpretation about the source, place of manufacture, or place of assembly of the goods.

3- Fake goods regarding labels:

3. 1- Goods bearing labels identical or similar to those of another establishment already announced.

3. 2- Information on labels not matching the quality of the goods, intended to deceive consumers.

3. 3- Content on labels being erased, altered, or incorrectly dated to deceive customers.

4- Types of printed materials used in the production and consumption of fake goods:

4. Types of printed publications used in the production and consumption of counterfeit goods:

4. 1- Types of trademarks, product stickers, product labels, trade mark samples, product packaging that show signs of infringement such as being identical or similar enough to cause confusion with labels of the same type, registered trade marks, industrial designs, or protected geographical indications.

4. 2- Types of invoices, certificates, stamps, tickets, money, publications with monetary value, and other counterfeit cultural products.

 IV - LOW QUALITY GOODS

Goods exhibiting any of the following characteristics shall be considered low quality goods:

1- Goods possessing utility and functionality but whose quality indicators or composition components are not fully disclosed on the label or in advertising and marketing as stated, without causing harm to production, human health, animal health, plant health, or the environment.

2- Goods having one or more mandatory quality standards below the minimum quality level announced, without causing harm to production, human health, animal health, plant health, or the environment.

3- Goods whose actual quality is lower than what is stated on the label or advertised, without causing harm to production, human health, animal health, or plant health.

4- Reconditioned or repaired old goods falsely represented as new for sale at new goods prices to deceive customers.

5- Goods that have been adulterated with impurities or other materials altering their quantity, without causing harm to production, human health, animal health, plant health, or the environment.

V - INSPECTION AND HANDLING OF COUNTERFEIT GOODS

1- Inspection Targets:

- Counterfeit goods and low-quality goods within the scope of inspection and handling under this Circular include domestically produced goods, processed, assembled, packaged goods stored in warehouses, on display for sale, in transit, showcased, promoted, and exported or imported goods.

2- Areas to Focus on Inspection:

- Land, air, sea, river border checkpoints, and border lines.

- Locations where counterfeit labels, packaging, and publications are printed.

- Sites producing, processing, assembling counterfeit goods, and places storing counterfeit goods.

- Wholesale distribution points and channels for counterfeit goods.

- Retail outlets and transportation means for counterfeit goods.

3- Allocation of Inspection Areas and Content Coordination

3. 1 - Allocation of Areas:

- Customs forces and Border Guard forces are responsible for organizing anti-counterfeiting efforts for exported and imported goods through checkpoints, along land borders, and at sea according to their respective tasks.

- Market Management forces are responsible for:

+ Inspecting and supervising the production and sale of counterfeit and low-quality goods in the domestic market.

+ Leading coordination with specialized inspection forces and other anti-counterfeiting forces on the local area.

- Police forces are responsible for:

+ Investigating and uncovering networks and groups producing and selling counterfeit goods, especially fake documents, invoices, stamps, money, and publications with monetary value.

+ Cooperating with functional forces to inspect and supervise anti-counterfeiting efforts in various sectors and levels when requested.

- Specialized inspection forces are responsible for organizing inspections and supervision against counterfeit goods within their jurisdiction, while coordinating with other anti-counterfeiting forces to conduct inspections and supervision when required.

3. 2- Content Coordination:

- Cooperation in exchanging and providing information about:

+ The situation of counterfeit goods, patterns, and methods of operation by producers and sellers of counterfeit goods.

+ Policies, plans related to anti-counterfeiting efforts by sectors and localities.

- Cooperation in inspection and supervision activities to detect, prevent, and handle violations:

+ Developing joint inspection and supervision plans.

+ Assigning staff to participate in inspections and supervision.

+ Providing support in terms of equipment, funding, and creating favorable conditions for inspections and supervision.

+ Conducting verification, collecting evidence, appraising, and testing counterfeit goods.

+ Implementing decisions on penalties or enforcing penalty decisions.

- Cooperation in handling complex cases involving counterfeit goods. In case of disagreement on measures to take, report to the local or central Anti-Counterfeiting Steering Committee for decision.

- Cooperation in rewarding organizations and individuals who contribute to detecting, combating, and handling violations related to counterfeit goods.

- Cooperation with legitimate production and business establishments and owners of industrial property rights to identify counterfeit goods.

4- Product Categories: Including types of goods listed in Section III and low-quality goods in Section IV of this Circular, focusing on inspecting and handling the following types of goods:

- Grains, processed foods, food additives, beverages.

- Cosmetics.

- Medicines, vaccines, and products for disease prevention and treatment for humans.

- Agricultural and aquatic supplies: seedlings, livestock breeds, feed, veterinary drugs, vaccines, pesticides, fertilizers, biological products for crop cultivation and animal husbandry.

- Invoices, certificates, money, certificates, publications, works of art, and other publications.

- Construction materials, machinery parts, fuels, raw materials, transportation vehicles.

5- Appraisal and Evaluation of Counterfeit and Low-Quality Goods:

5. 1- When counterfeit or low-quality goods are discovered during inspection, competent forces must record them in a protocol and handle violations according to regulations. If there is insufficient evidence to confirm they are counterfeit or low-quality, samples must be taken and sent to relevant state agencies for appraisal and evaluation.

5. 2- Competent agencies are responsible for appraising and evaluating samples of goods and publications when requested by inspection and control agencies.

5. 3- During the reorganization of the system of appraisal agencies, the quality control agencies under the Ministry of Science and Technology and Environment, the Ministry of Trade (Quality Control Bureau and Measurement Division), the Institute of Forensic Science and Technology under the Ministry of Public Security, and other agencies recognized as having the responsibility to appraise and review counterfeit and substandard goods as stipulated in Point 1, Sections III and IV of this Circular, shall be responsible for the results and conclusions of their work when receiving samples from anti-counterfeiting inspection agencies at various sectors and levels within the time limit prescribed by law.

5. 4- The Intellectual Property Office under the Ministry of Science and Technology and Environment, and the Science and Technology Departments of provinces and centrally-administered cities shall have the responsibility and authority to appraise and review counterfeit goods as stipulated in Point 2, Section III of this Circular.

5. 5- Relevant agencies shall carry out the appraisal and review of counterfeit goods as stipulated in Point 4, Section III of this Circular.

6- Handling Counterfeit Goods:

6. 1- Re-exporting outside the territory of Vietnam for imported counterfeit and substandard goods undergoing customs procedures according to decisions of competent authorities.

6. 2- Organizing destruction in accordance with current State regulations:

- Goods and items that have no usable value.

- Goods that do not meet the minimum quality standard and cause harm to production or human life, animal health, plant health, and the environment.

- Various types of stickers, labels, product packaging, invoices, certificates, money, publications identified as counterfeit.

6. 3- Circulation is allowed subject to compliance with the following conditions:

- Goods that have usable value but must remove the elements violating the law on the goods (such as illegal labels, packaging...) and widely inform consumers.

- Processing and re-manufacturing to ensure the legality of circulation or to utilize them as raw materials.

VI - COSTS AND MEANS FOR COMBATING COUNTERFEIT GOODS

1- Functional forces responsible for inspecting and combating counterfeit goods shall be provided and use funds to serve the fight against counterfeit goods, including:

- Customs forces.

- Border Guard forces.

- Police forces.

- Market Management forces.

- Specialized Inspection forces.

2- Funds serving the fight against counterfeit goods include:

- State budget allocated according to the approved annual budget.

- All fines collected and proceeds from the sale of confiscated goods, vehicles, and equipment from cases involving counterfeit goods retained by the State budget for anti-counterfeit activities.

- Voluntary contributions (if any) from organizations and individuals both domestically and internationally.

- A portion of the revenue from anti-smuggling efforts in the area.

3- Funds serving the fight against counterfeit goods shall be used for the following purposes:

- Purchasing, repairing equipment and tools; expenses for apprehending, destroying, loading, storing, transporting goods and evidence of violations; detecting, verifying, investigating, and handling violations; propaganda, training, summarizing, and concluding anti-counterfeit activities; organizing information, intelligence gathering, purchasing tips to detect violations; testing, appraisal, and review; overtime pay; assistance to officers and soldiers or their families injured, wounded, or killed while on duty; rewarding organizations and individuals who contribute to fighting the production and sale of counterfeit goods.

VII. IMPLEMENTATION ORGANIZATION

1- To organize the implementation of Directive No. 31-1999/CT/TTg dated October 27, 1999 of the Prime Minister on combating the production and sale of counterfeit goods and this Circular, Ministries, ministerial-level agencies, government agencies, and People's Committees of provinces and centrally-administered cities shall be responsible for:

1. 1- The Ministry of Trade:

- Taking the lead in organizing coordination among relevant ministries and sectors at the central level in directing anti-counterfeit activities.

- Taking the lead in organizing inspections and urging sectors and localities in anti-counterfeit activities.

- Proposing necessary policies and measures to combat counterfeits at different times, discussing and agreeing with ministries and general departments to recommend to the Prime Minister and directing localities.

- Requesting ministries and general departments to cooperate, provide manpower and means to promptly prevent and arrest violations related to counterfeit goods or participate in inter-ministerial inspection teams when necessary.

- Organizing information, compiling reports on the situation and anti-counterfeit activities of sectors and levels in localities and nationwide to report to the Prime Minister and notify ministries and general departments.

- Regularly organizing inter-ministerial meetings to review experiences and discuss measures to coordinate direction in the future.

1. 2- The Ministry of Public Security:

- Investigating and discovering individuals and groups producing and selling large-scale counterfeit goods, especially those with significant impacts on national security and social order.

- Cooperating with market management forces and other specialized inspection forces to combat and prevent the production and sale of counterfeit goods, strictly punishing those obstructing public officials when required.

- Participating in guiding and assisting localities in combating counterfeit goods.

1. 3- The Ministry of Finance shall guide the management, use, and settlement of accounts for funds serving anti-counterfeit activities.

1. 4- Ministries, ministerial-level agencies, and government agencies, depending on their assigned tasks in anti-counterfeit activities, shall be responsible for:

- Directing anti-counterfeit activities within their respective areas of state administration and specific tasks assigned by the Prime Minister in the aforementioned directive.

- Coordinating with the Ministry of Trade and relevant ministries and sectors in directing effective anti-counterfeit efforts for specific industries, products, regions, and nationwide.

- Compiling the situation of counterfeit goods and anti-counterfeit activities in their sectors and reporting to the Ministry of Trade for consolidation and reporting to the Prime Minister.

1.5 - The Vietnam Consumers' Standardization and Protection Association and other social organizations: depending on their assigned functions and tasks, shall be responsible for assisting anti-counterfeit forces and mobilizing consumers to actively participate in the fight against counterfeit goods.

1.6 - People's Committees of provinces and centrally governed cities:

- Organize propaganda and dissemination of the Prime Minister's Directive and the Joint Circular guiding the implementation of the Prime Minister's Directive to enterprises, production households, traders, and the public within their jurisdiction to participate in the fight against counterfeit goods and eliminate the evil of counterfeit goods.

      - Direct relevant sectors and levels at the local level in the work of combating counterfeit goods within their jurisdiction.

      - Organize coordination among sectors, levels, and functional forces at the local level to inspect, detect, prevent, and promptly handle violations related to the production, sale, import, and transportation of counterfeit goods.

      - Regularly review, summarize, evaluate, and draw lessons to provide guidance and plan for each period.

- Aggregate information on counterfeit goods and anti-counterfeit efforts within their jurisdiction and submit it to the Ministry of Trade for consolidation and reporting to the Prime Minister.

1.7 - For production and business establishments:

- Organizations and individuals engaged in production and business shall not produce or sell counterfeit goods. All organizations and individuals have the responsibility to proactively coordinate with competent authorities in the fight against counterfeit goods, identifying violators and trading points for counterfeit goods to take timely preventive measures.

- Encourage organizations and individuals producing and assembling goods to use labeling methods to combat counterfeiting for their products. Enterprise anti-counterfeiting labels must not be identical or similar to those of imported goods issued by the State.

This Circular takes effect fifteen days from the date of signature. During implementation, if there are difficulties or obstacles, relevant sectors and localities should promptly report to the 31-TW Steering Committee and the Inter-Ministerial Office for resolution.