Decree No. 44/2000/NĐ-CP On Administrative Sanctions for Violations in the Field of Pricing

DECREE OF THE GOVERNMENT

Regarding administrative penalties for violations in the field of pricing.

 

THE GOVERNMENT

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

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

Pursuant to the Law on Commerce dated May 10, 1997;

Considering the proposal of the Head of the Government Price Management Board,

 

DECREE:

Chapter I

GENERAL PROVISIONS

Article 1.Scope of application

1. Administrative violations in the field of pricing are intentional or negligent actsby individuals or organizations that violate state regulations on pricing withoutreaching the level of criminal prosecution and according to the law must be subjectto administrative penalties.

2. Administrative violations in the field of pricing as defined in this Decree includethe following:

a) Violations of price display and reporting requirements;

b) Failure to comply with prescribed price ranges and levels;

c) Violations of regulations concerning the establishment and reporting of pricingplans and other reports related to pricing;

d) Violations of regulations concerning the use of price subsidies, transportsubsidies, and other support payments to implement pricing policies;

đ) Violations of pricing decision-making regulations;

e) Violations of pricing regulations in promotional activities.

Article 2.Scope of application

Individuals and organizations committing administrative violations in the field ofpricing shall be subject to administrative penalties under this Decree and otherprovisions of the law regarding administrative penalties.

Foreign individuals and organizations committing administrative violations in thefield of pricing within the territory of Vietnam shall be subject to penalties similarto those imposed on Vietnamese individuals and organizations, except whereinternational treaties to which Vietnam is a party provide otherwise.

Article 3.Principles of Penalty Imposition

1. Administrative penalties in the field of pricing must be imposed by authorizedpersons in accordance with the provisions of this Decree.

2. The handling of administrative violations in the field of pricing must beconducted promptly, fairly, and in accordance with the law. When a violation isdiscovered, there must be an immediate decision to stop the violation.

3. A single administrative violation in the field of pricing shall only be penalizedonce. Individuals or organizations committing multiple administrative violationsshall be penalized for each violation. If multiple individuals or organizationscommit a single administrative violation, each violator shall be penalized.

4. Administrative penalties in the field of pricing must be based on the nature,severity of the violation, mitigating circumstances, and aggravating circumstancesin determining appropriate forms and levels of penalty.

Article 4.Mitigating and aggravating circumstances for administrative violations in thefield of pricing

1. Mitigating circumstances:

The violator has taken measures to prevent, reduce the harm caused by the violation,or voluntarily remedied the consequences and compensated for losses caused bythe violation.

2. Aggravating circumstances:

a) Organized violation;

b) Repeated or recidivist violation;

c) Abuse of position or authority;

d) Exploitation of wartime conditions, natural disasters, or other special difficultiesof society;

đ) Violation during the execution of a criminal sentence or administrative violationhandling decision;

e) After the violation, the violator engages in actions to evade or conceal theadministrative violation.

Article 5.Statute of limitations for penalties

1. The statute of limitations for administrative penalties in the field of pricing is twoyears from the date the administrative violation was committed.

2. For individuals who have been indicted, prosecuted, or decided to be tried undercriminal proceedings but have had their investigation discontinued or case dismissed, they may still be subject to administrative penalties if there are signs ofadministrative violations; the deadline for administrative penalties in such cases isthree months from the date of the discontinuation decision.

3. Within the period specified in Clause 1 and Clause 2 of this Article, if individualsor organizations commit new administrative violations or intentionally evade orobstruct the penalty process, the statute of limitations specified in Clause 1 andClause 2 of this Article will not apply. The statute of limitations for administrativelaw penalties will be recalculated from the date of occurrence of the newadministrative violation or the date of evading or obstructing the penalty process.

Article 6Statute of limitations for the enforcement of administrative penalty decisions inthe field of pricing.

An administrative penalty decision in the field of pricing becomes void one yearafter the decision is issued; in cases where individuals or organizations subject topenalties intentionally evade or delay the enforcement of the penalty decision, thestatute of limitations provided for in this Article does not apply.

, Clause 1, Clause 2 Article 7a of this Regulation.Period considered as not having been subject to administrative penalties.

Individuals or organizations subject to administrative penalties, if they do notcommit repeated violations within one year from the completion date of thepenalty decision implementation or from the date the penalty decision becomesvoid, shall be considered as not having been subject to administrative penalties.

Article 8.Forms of Administrative Sanction

1. For each administrative violation in the field of pricing, the violator must bearone of the following main forms of administrative penalties:

a) To impose a warning penalty;

b) Fine.

2. Depending on the nature and severity of the violation, individuals ororganizations committing administrative violations in the field of pricing mayalso be subject to supplementary penalties including the confiscation of all priceprofit obtained due to the administrative violation.

3. In addition to the main forms of penalties and supplementary penalties mentionedabove, violators may also be ordered to take one or more of the followingmeasures:

a) Compelled to compensate for all losses caused by administrative violations inthe field of pricing;

b) Recovery of price subsidies, transport subsidies, and support funds obtainedthrough false declarations or misuse of supporting documents; recovery of priceand transport subsidies, and support funds already misused;

c) Must bear all costs to correct the erroneous pricing applied to individuals andorganizations;

d) Collection of all amounts that should have been paid according to regulationsfor implementing pricing policies but were evaded.

4. Forms of main penalties, supplementary penalties, and measures applicable toadministrative violations in the field of pricing are stipulated in Chapter II of thisDecree. Supplementary penalties and other measures can only be applied incombination with main penalties. In cases where administrative violations haveexpired the statute of limitations, main penalties will not be applied, but the mea-sures specified in Clause 2 and Points a, b, c, d of Clause 3 of this Article maystill be applied.

5. When imposing a fine as a form of administrative penalty for an administrative violation in the field of pricing, the specific amount of the fine for a particular act shall be the midpoint of the fine range corresponding to that act as prescribed in this Decree; if the violation has mitigating circumstances, the fine may be reduced but not below the minimum level of the fine range; if the violation has aggravating circumstances, the fine may be increased but not above the maximum level of the fine range.

 

Chapter II

ADMINISTRATIVE VIOLATIONS

IN THE FIELD OF PRICING, FORMS AND AMOUNTS OF PENALTIES

Article 9.Acts of failing to comply with price display and reporting requirements.

1. Warning or a fine from VND 50,000 to VND 200,000 for acts of failing to display purchase prices, sale prices of goods, service prices as prescribed.

2. A fine from VND 1,000,000 to VND 5,000,000 for acts of failing to comply with the requirements for reporting factors forming prices to the pricing authority for goods and services priced by the State.

Article 10.Acts of implementing incorrect prices.

1. Warning or a fine from VND 100,000 to VND 500,000 for acts of purchasing, selling goods, providing services at prices different from the displayed prices.

2. A fine from VND 500,000 to VND 2,000,000 for acts of purchasing, selling goods, providing services at prices different from the specific prices, price limits set by the competent authority.

3. A fine from VND 1,000,000 to VND 5,000,000 for acts of taking advantage of natural disasters or other special difficulties to raise prices, force prices, causing losses to producers and consumers.

4. Organizations and individuals committing administrative violations as stipulated in Clauses 1, 2, and 3 of this Article shall also have all the excess profits obtained due to the administrative violation confiscated.           

5. In addition to the penalties prescribed in Clauses 1, 2, 3, and 4 of this Article, organizations and individuals committing administrative violations as stipulated in Clauses 1 and 2 may also be subject to the following measures:

a) Compelled to compensate for all losses caused by implementing incorrect prices.

b) Bear all costs to refund the price difference to individuals and organizations subjected to incorrect pricing.

Article 11.Acts of fraud in filing reports on prices.

1. A fine from VND 2,000,000 to VND 5,000,000 for acts of falsely declaring, inaccurately reporting production costs and other factors related to the establishment of pricing plans for goods and services submitted to the competent authority.

2. A fine from VND 5,000,000 to VND 10,000,000 for acts of falsely declaring purchase prices, sale prices of goods, service prices and other related factors to evade payment of amounts required under regulations to implement pricing policies.

3. A fine from VND 10,000,000 to VND 20,000,000 for acts of falsely declaring, overstating documents to obtain subsidies, transportation subsidies for goods and other support payments to implement pricing policies.

4. In addition to being fined, individuals and organizations committing administrative violations as stipulated in this Article may also be subject to the following measures:

a) Recovering amounts required under regulations to implement pricing policies that were evaded due to the administrative violation as stipulated in Clause 2 of this Article.

b) Recovering subsidies, transportation subsidies for goods, and other support payments obtained through false declarations or overstated documents due to the administrative violation as stipulated in Clause 3 of this Article.

Article 12. Acts of incorrectly setting price levels or improperly establishing prices.

1. A fine from VND 2,000,000 to VND 3,000,000 for acts of setting purchase prices, sale prices of goods, service prices contrary to the levels, limits set by the competent authority.

2. In addition to being fined, individuals and organizations committing violations as stipulated in this Article may also have all excess profits obtained due to the administrative violation as stipulated in Clause 1 of this Article confiscated.

3. In addition to the penalties prescribed in Clauses 1 and 2 of this Article, individuals and organizations committing administrative violations may also be subject to one or more of the following measures:

a) Compelled to compensate for all losses caused by implementing incorrect pricing decisions.

b) Bear all costs to refund the money caused by implementing incorrect prices to individuals and organizations subjected to incorrect pricing.

Article 13.Acts of violating pricing regulations for commercial goods and services during promotional periods.

1. Warning or a fine from VND 50,000 to VND 200,000 for acts of failing to display the promotional period, regular selling prices, service supply prices of commercial goods before the promotional period; selling prices, service supply prices of commercial goods during the promotional period as prescribed by the competent authority.

2. A fine from VND 500,000 to VND 2,000,000 for acts of selling goods, providing commercial services during the promotional period at less than 70% of the pre-promotional period prices of goods and commercial services.

3. A fine from VND 500,000 to VND 2,000,000 for acts of promoting goods and services with values exceeding 30% of the pre-promotional period prices of promoted goods and services.

4. In addition to being fined, individuals and organizations committing administrative violations concerning goods and services whose prices are regulated by the State may also be compelled to refund all losses caused by the administrative violations as stipulated in Clauses 2 and 3 of this Article.

Article 14Acts of misusing subsidy funds, transportation subsidy funds, and other support funds to implement pricing policies.

1. A fine from VND 5,000,000 to VND 10,000,000 for acts of misusing subsidy funds, transportation subsidy funds for goods, and other support funds to implement pricing policies..

2. Individuals and organizations committing administrative violations as stipulated in this Article, in addition to being fined according to Clause 1 of this Article, shall also be compelled to refund the misused subsidy funds, transportation subsidy funds for goods, and other support funds to implement pricing policies.

Article 15Transfer of administrative violation cases in the field of pricing for criminal prosecution.

When determining that an administrative violation in the field of pricing constitutes a crime, the authorized person must prepare a file to transfer it to the competent criminal authority for resolution.

Strictly prohibit retaining cases with signs of criminal offenses for administrative punishment.

 

Chapter III

AUTHORITY AND PROCEDURES FOR ADMINISTRATIVE PENALTIES

ADMINISTRATIVE VIOLATIONS IN THE FIELD OF PRICING

Article 16The administrative penalty enforcement authority of local people's committees at various levels in the field of pricing is as follows: Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).local people's committees at all levels in the field of prices

1. The Chairman Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).People's Committee of communes, towns, wards has the right to:

a. Issue a warning;

b. Impose a fine up to 200,000 dong;

c. Recommend competent authorities to apply appropriate penalties according to the procedures stipulated in this Decree for individuals and organizations with more serious administrative violations.

2. The Chairman Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).People's Committee of districts, counties, towns under provinces has the right to:

a. Issue a warning;

b. Impose a fine up to 10,000,000 dong;

c. Confiscate the entire amount of price difference obtained due to administrative violations;

d. Compel full compensation for all losses caused by administrative violations;

đ. Recommend competent authorities to apply appropriate penalties according to the procedures stipulated in this Decree for individuals and organizations with more serious administrative violations.

3.Chairman Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).People's Committee of provinces directly under the Central Government has the right to:

a. Issue a warning;

b. Impose a fine up to 100,000,000 dong;

c. Confiscate the entire amount of price difference obtained due to administrative violations;

d. Compel full compensation for all losses caused by administrative violations;

đ. Recover price subsidies, freight subsidies for goods transportation, and other support funds obtained through false declarations; price subsidies, freight subsidies for goods transportation, and other support funds used for improper purposes;

e. Recover funds that should have been paid to implement price policies as prescribed but were evaded.

Article 17Administrative penalty enforcement authority in the field of pricing of specialized inspection agencies

1. Financial-Price Inspection Officers currently performing official duties have the right to:

a. Issue a warning;

b. Impose a fine up to 200,000 dong;

c. Recommend competent authorities to apply appropriate penalties according to the procedures stipulated in this Decree for individuals and organizations with more serious administrative violations.

2. Heads of specialized inspection agencies under Departments having financial-price inspection functions have the right to:

a. Issue a warning;

b. Impose a fine up to 10,000,000 dong;

c. Confiscate the entire amount of price difference obtained due to administrative violations;

d. Compel full compensation for all losses caused by administrative violations;

đ. Recover price subsidies, freight subsidies for goods transportation, and other support funds obtained through false declarations; price subsidies, freight subsidies for goods transportation, and other support funds used for improper purposes;

e. Recommend competent authorities to recover funds that should have been paid to implement price policies as prescribed but were evaded.

3. Head of the State General Office of Price has the right to:

a) To impose a warning penalty;

b) Impose a fine up to 20,000,000 dong;

c) Confiscate the entire amount of price difference obtained due to administrative violations;

d) Compel full compensation for all losses caused by administrative violations;

đ) Recover price subsidies, freight subsidies for goods transportation, and other support funds obtained through false declarations; price subsidies, freight subsidies for goods transportation, and other support funds used for improper purposes; using for improper purposes;

e) Recover funds that should have been paid to implement price policies as prescribed but were evaded.

4. Specialized inspection agencies of Ministries and sectors have the authority to impose administrative penalties in the field of pricing as stipulated in this Decree within their respective price management jurisdictions as prescribed by the Government.

Article 18Determination of administrative penalty enforcement authority

For administrative violations in the field of pricing that fall under the jurisdiction of multiple state management agencies, the agency that first accepts the case shall handle the penalty according to the provisions of this Decree.

Article 19Procedures for imposing penalties

1. Procedures and steps for imposing penalties on administrative violations in the field of pricing shall be carried out according to the provisions of Articles 45, 46, 47, 48, and 49 of the Administrative Violations Handling Ordinance dated July 6, 1995.

2. Fines collected must be deposited into the state budget through accounts opened at the State Treasury. Management regulations for fine receipts and payment receipts shall be implemented according to current regulations.

Organizations and individuals whose price subsidies, freight subsidies for goods transportation, and other support funds for implementing price policies are recovered; whose price differences are confiscated; who are compelled to pay losses caused by administrative violations; and who are required to pay back funds that should have been paid to implement price policies as prescribed, must pay the fines at the location specified in the penalty decision for the penalizing agency to consider refunding the aggrieved party or depositing it into the state budget.

4. The Ministry of Finance shall coordinate with the State General Office of Price to provide detailed guidance on handling the funds that organizations and individuals violating administrative regulations must pay as prescribed in Clause 3 of this Article.

Article 20Enforcement of penalty decisions and compulsory enforcement of penalty decisions

1. Organizations and individuals subject to administrative penalties as prescribed in this Decree must strictly enforce the administrative penalty decision of the competent authority.

2. If organizations and individuals subject to administrative penalties fail to comply with the penalty decision or intentionally evade enforcement of the penalty decision, they will be subject to compulsory enforcement through the following measures:

a. Deducting part of the salary or income, deducting money from bank accounts;

b. Seizing assets equivalent in value to the fine amount, confiscated money, recovered money, money compelled to be paid, or money to be recovered, to sell at auction;

c)AApplying other compulsory enforcement measures to enforce the penalty decision.

The authority issuing the penalty decision has the right to issue a compulsory enforcement decision and is responsible for organizing its implementation.

3. Banking agencies, State Treasury, and public security forces have the responsibility to cooperate with state agencies to organize the enforcement of compulsory enforcement decisions when requested by those agencies.

4. Individuals and organizations subject to compulsory enforcement must bear all costs related to organizing the implementation of compulsory enforcement measures.

 

Chapter IV

COMPLAINTS, REPORTS, AND HANDLING OF VIOLATIONS

Article 21Complaints, accusations, and resolution of complaints and accusations

Complaints and accusations, and the resolution of complaints and accusations regarding administrative violation penalty decisions in the field of pricing shall be applied according to the provisions of the Law on Complaints and Accusations.

During the period awaiting complaint resolution, individuals and organizations subject to administrative penalties in the field of pricing must strictly comply with the penalty decision of the competent authority. A complaint against an administrative penalty decision does not suspend the enforcement of the penalty decision.

Article 22Handling violations.

The person having the authority to impose administrative penalties for violationsin the field of pricing who abuses their position for personal gain or lacksprofessional responsibility, covers up, fails to impose penalties, imposespenalties untimely, improperly, or exceeds the prescribed authority shall be subjectto disciplinary action or criminal liability depending on the nature and severityof the violation; if causing damage to the State, organizations, or individuals,they must compensate according to the provisions of the law.

A person who is subject to an administrative penalty for violations in the field ofpricing, if obstructs, resists officials responsible for inspection, orintentionally delays or evades compliance with the administrative penalty decisionshall be subject to administrative penalties or criminal liability according tothe relevant provisions of the law depending on the nature and severity of theviolation.

 

Chapter V

IMPLEMENTING PROVISIONS

Article 23This Decree takes effect fifteen days from the date of signature, and abolishesArticle 2, Article 3, Article 7, Article 8, Article 9, Article 10, and theprovisions regarding the authority to handle cases by price inspectors underArticle 5 of Decree No. 91/HĐBT dated August 4, 1986 of the Council of Ministers(now the Government) on the implementation of pricing and inspection, auditing,and handling of violations of state discipline related to pricing. Abolish theprovisions regarding economic handling authority of the Head of the National Price Committee, Minister, Chairman Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).of people's committees at all levels, heads of production and business unitsunder Clause 1, Clause 2, Article 1 of Decree No. 88/HĐBT dated June 10, 1987 ofthe Council of Ministers (now the Government) amending Article 4 of Decree No.91/HĐBT dated August 4, 1986 of the Council of Ministers.

"d) Within no more than one working day from the date of receiving the dossier submitted for administrative procedures by the specialized agency assigned by the Provincial People's Committee, the Chairman of the Provincial People's Committee shall issue a notification of the result of the inspection of plant-based food exports or a certificate at the request of the importing country."The Director of the Government Price Board is responsible for guiding theimplementation of this Decree.

Article 25Ministers of Ministries, Heads of ministerial-level agencies, Heads ofagencies under the Government, Chairmen Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).of the People's Committees of provinces and centrally-administered cities areresponsible for implementing this Decree./.