What are counterfeit goods? What are the penalties for trade in counterfeit stamps, labels and packages in Vietnam?

Hello, Lawnet would like to answer as follows:

1. What are counterfeit goods?

According to the provisions of Clause 7 and Clause 8, Article 3 of Decree 98/2020/ND-CP, "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 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;

- 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.

- “counterfeit stamps, labels and packages” include decals, labels, packages, quality stamps, quality marks, origin-tracing stamps, warranty cards, stretch films or other articles of a business entity that contain information forging names or addresses of other entities, forging trade names, commercial names, barcodes, registration numbers or declaration numbers of goods or packages of other entities.

Thus, according to the above regulations, counterfeit goods are products that do not ensure quality, have the risk of causing harm to consumers, and need to be prevented and strictly handled.

2. What are the penalties for trade in counterfeit stamps, labels and packages in Vietnam?

According to the provisions of Article 13 of Decree 98/2020/ND-CP, acts of trade in counterfeit stamps, labels and packages will be punished as follows:

- The following fines shall be imposed for trading in counterfeit stamps, labels and packages as prescribed in Point e Clause 7 Article 3 of Decree 98/2020/ND-CP:

+ A fine ranging from VND 300.000 to VND 500.000 shall be imposed in case the quantity of counterfeit stamps, labels and packages is less than 100 pieces, sheets or equivalent units (hereinafter referred to as “unit”);

+ A fine ranging from VND 500.000 to VND 1.000.000 shall be imposed in case the quantity of counterfeit stamps, labels and packages is from 100 to under 500 units;

+ A fine ranging from VND 1.000.000 to VND 3.000.000 shall be imposed in case the quantity of counterfeit stamps, labels and packages is from 500 to under 1.000 units;

+ A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed in case the quantity of counterfeit stamps, labels and packages is from 1.000 to under 2.000 units;

+ A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed in case the quantity of counterfeit stamps, labels and packages is from 2.000 to under 3.000 units;

+ A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed in case the quantity of counterfeit stamps, labels and packages is from 3.000 to under 5.000 units;

+ A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed in case the quantity of counterfeit stamps, labels and packages is from 5.000 to under 10.000 units;

+ A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed in case the quantity of counterfeit stamps, labels and packages is 10.000 units or more, if not liable to criminal prosecution.

- The fine that is twice as much as the corresponding fine prescribed in Clause 1 of Article 13 of Decree 98/2020/ND-CP shall be imposed for:

+ importing counterfeit stamps, labels and packages;

+ the violation involving counterfeit stamps, labels and packages of foods, food additives, food processing aids, food preservatives, preventive drugs, drugs, medicinal ingredients, cosmetics, medical devices or protective helmets; or

+ the violation involving counterfeit stamps, labels and packages of detergents, chemicals, insecticidal and microbicidal preparations for household and medical use, animal feeds, aquaculture feeds, aqua environmental remediation products, livestock waste treatment products, fertilizers, veterinary drugs, pesticides, plant varieties, animal breeds, cement, iron or steel used in construction.

- Additional penalties:

+ The exhibits of the violations prescribed in this Article shall be confiscated, except the case of application of remedial measure prescribed in Point a Clause 4 of Article 13 of Decree 98/2020/ND-CP;

+ The license or practicing certificate shall be suspended for a fixed period of 01 - 03 months if any of the violations prescribed in this Article is repeated or re-committed.

- Remedial measures:

+ The counterfeit stamps, labels and packages shall be destroyed if any of the violations prescribed in this Article is committed;

+ The violating entity is compelled to return any benefits illegally obtained from one of the violations in Article 13 of Decree 98/2020/ND-CP.

Thus, according to the above regulations, the act of trading in fake stamps, labels, and packaging of goods can be fined from 300,000 VND to 30,000,000 VND. In addition, additional sanctions are also applied, such as confiscation of evidence and deprivation of the right to use licenses and practice certificates from 1 month to 3 months. At the same time, it is necessary to destroy and return the illegal profits obtained from trading in counterfeit stamps, labels, and packaging of goods.

Best regards!

Please Login to be able to download