Vietnam: What are the regulations on promoting anti-counterfeiting trade during Tet 2023? What are the administrative penalties imposed for selling counterfeit goods during Tet 2023?

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What are the legal regulations on counterfeit goods in Vietnam?

Under Clause 7, Article 3 of Decree 98/2020/ND-CP:

7. “counterfeit goods” include:

a) Goods whose uses are not consistent with their nature or names; the goods which are useless or whose uses are other than the announced or registered ones;

b) Goods of which one of quality indicators or basic specifications or the amount of primary substances contributing to their uses only reaches 70%, or less, compared to the minimum levels prescribed in technical regulations or quality standards registered, or announced, or specified in their labels or packages;

c) Counterfeit drugs defined in Clause 33 Article 2 of the 2016 Law on Pharmacy and counterfeit herbal ingredients defined in Clause 34 Article 2 of the 2016 Law on Pharmacy;

d) Veterinary drug or pesticide that does not contain any active ingredients; does not contain all of registered active ingredients; contains active ingredients other than those specified on its label or package; contains at least an active ingredient whose content only reaches 70%, or less, compared to the minimum level prescribed in relevant technical regulations or quality standards registered or announced;

dd) The good whose label or package containing information forging name or address of manufacturer, importer or distributor, forging registration number, declaration number or barcode of the good, forging package of good of another entity, or forging the origin of good or place of manufacturing, packaging or assembling;

e) Counterfeit stamps, labels and packages of goods.

Counterfeit goods include:

- Goods whose uses are not consistent with their nature or names; the goods which are useless or whose uses are other than the announced or registered ones;

- Goods of which one of quality indicators or basic specifications or the amount of primary substances contributing to their uses only reaches 70%, or less, compared to the minimum levels prescribed in technical regulations or quality standards registered, or announced, or specified in their labels or packages;

- Counterfeit drugs;

- Veterinary drug or pesticide that does not contain any active ingredients; does not contain all of registered active ingredients; contains active ingredients other than those specified on its label or package; contains at least an active ingredient whose content only reaches 70%, or less, compared to the minimum level prescribed in relevant technical regulations or quality standards registered or announced;

- The good whose label or package containing information forging name or address of manufacturer, importer or distributor, forging registration number, declaration number or barcode of the good, forging package of good of another entity, or forging the origin of good or place of manufacturing, packaging or assembling;

- Counterfeit stamps, labels and packages of goods.

What are the regulations on promoting anti-counterfeiting trade during Tet 2023? What are the administrative penalties imposed for selling counterfeit goods during Tet 2023? (Image from the Internet)

What are the administrative penalties imposed for selling counterfeit goods during Tet 2023 in Vietnam?

According to Article 9 of Decree 98/2020/ND-CP and Article 11 of Decree 98/2020/ND-CP, administrative penalties for selling counterfeit goods during Tet are as follows:

For trade in goods whose uses are forged:

- A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth less than VND 3.000.000 or the illegal profit obtained is less than VND 5.000.000;

- A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth from VND 3.000.000 to under VND 5.000.000 or the illegal profit obtained is from VND 5.000.000 to under VND 10.000.000;

- A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth from VND 5.000.000 to under VND 10.000.000 or the illegal profit obtained is from VND 10.000.000 to under VND 20.000.000;

- A fine ranging from VND 10.000.000 to VND 30.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth from VND 10.000.000 to under VND 20.000.000 or the illegal profit obtained is from VND 20.000.000 to under VND 30.000.000;

- A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth from VND 20.000.000 to under VND 30.000.000 or the illegal profit obtained is from VND 30.000.000 to under VND 50.000.000;

- A fine ranging from VND 50.000.000 to VND 70.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth VND 30.000.000 or more or the illegal profit obtained is VND 50.000.000 or more, if not liable to criminal prosecution.

Additionally, supplementary penalties under Clause 3 Article 9 of Decree 98/2020/ND-CP (amended by Clause 5 Article 3 of Decree 17/2022/ND-CP) and remedial measures under Clause 4 Article 9 of Decree 98/2020/ND-CP may be applied.

For trade in goods whose labels or packages are forged:

- A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth less than VND 3.000.000 or the illegal profit obtained is less than VND 5.000.000;

- A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth from VND 3.000.000 to under VND 5.000.000 or the illegal profit obtained is from VND 5.000.000 to under VND 10.000.000;

- A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth from VND 5.000.000 to under VND 10.000.000 or the illegal profit obtained is from VND 10.000.000 to under VND 20.000.000;

- A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth from VND 10.000.000 to under VND 20.000.000 or the illegal profit obtained is from VND 20.000.000 to under VND 30.000.000;

- A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth from VND 20.000.000 to under VND 30.000.000 or the illegal profit obtained is from VND 30.000.000 to under VND 50.000.000;

- A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed in case the quantity of counterfeit goods is equivalent to an amount of genuine goods worth VND 30.000.000 or more or the illegal profit obtained is VND 50.000.000 or more, if not liable to criminal prosecution.

Additionally, supplementary penalties under Clause 3 Article 10 of Decree 98/2020/ND-CP (amended by Clause 6 Article 3 of Decree 17/2022/ND-CP) and remedial measures under Clause 4 Article 10 of Decree 98/2020/ND-CP may be applied.

The above penalties apply to individuals while organizations committing similar violations will face the doubled fines.

Will Vietnam promote anti-counterfeiting trade during Tet 2023?

The National Steering Committee against Smuggling, Commercial Fraud, and Counterfeit Goods issued Plan 115/KB-BCD389 of 2022 stipulating the tasks of the 389 Steering Committee in combating smuggling, commercial fraud, and counterfeit goods before, during, and after the Tet (Lunar New Year) holiday as follows:

- Develop and direct the effective implementation of the peak plan against smuggling, commercial fraud, and counterfeit goods before, during, and after the Tet holiday;

- Proactively grasp the developments of the situation; identify methods, tricks in smuggling, commercial fraud, and counterfeit goods; determine objects, routes, areas, key items to focus forces, vehicles, measures to combat; assign responsibility to central and local agency units in management, inspection, control of areas, fields;

- Develop and implement plans to strengthen forces, patrol means, closely monitor border routes, land borders, railways, rivers, seas, airports, trails, openings, gathering areas of goods near the border to prevent prohibited goods, counterfeit goods, poor quality goods from entering the domestic market; tightly control wholesale markets, commercial centers, agents, convenience stores, e-commerce floors, and online purchase, sale platforms;

- Detect in time acts of taking advantage of sales, transporting prohibited goods, counterfeit goods, and goods of unclear origin, violating intellectual property rights, focusing on conditional import goods, high-tax goods, prohibited goods, counterfeit goods, goods serving consumer needs during Tet such as fireworks, cigarettes, gasoline, minerals, precious metals, foreign currencies, electronics, phones, high-end fashion, food, alcohol, beer, confectionery, fruits, pharmaceuticals, cosmetics, functional foods, livestock, poultry;

- Establish interdisciplinary task forces to grasp the situation, inspect, monitor, guide forces, units, localities to effectively fight against smuggling, commercial fraud, and counterfeit goods in the managed fields, localities.