Declaration of Incorrect Sales Price: What is the Administrative Fine?

What is price declaration?

According to Clause 14, Article 4 of the Price Law 2023, there are regulations on price declaration. Price declaration involves business organizations dealing in goods or services that are required to declare prices as stipulated in Clause 2, Article 28 of the Price Law 2023, sending a notification of the price level after pricing or adjusting the price to the competent state agency for the purpose of price market compilation, analysis, and forecasting.

Simultaneously, Article 28 of the Price Law 2023 stipulates price declaration as follows:

Price declaration

1. The declared price is the price of goods or services decided by the business organization and notified to the competent authority receiving the price declaration.

a) Goods and services in the price stabilization list;

b) Goods and services whose price frames, maximum prices, and minimum prices are set by the State for organizations to set specific selling prices for consumers;

c) Goods and services whose prices are decided by enterprises based on reference prices;

d) Other essential goods and services issued by the Government of Vietnam.

Ministries, ministerial-level agencies managing sectors or fields, and provincial People's Committees stipulate the economic-technical characteristics of goods and services to implement price declarations.

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Thus, price declaration can be understood as the act of a business organization dealing in goods or services subject to price declaration (including goods and services in the price stabilization list; goods and services whose price frames, maximum prices, and minimum prices are set by the State for organizations to set specific selling prices for consumers; goods and services whose prices are decided by enterprises based on reference prices; and other essential goods and services issued by the Government of Vietnam) sending a notification of the price level after pricing or adjusting the price to the competent state agency for the purpose of price market compilation, analysis, and forecasting.

From July 12, 2024, what is the administrative penalty for incorrect price declaration? (Image from the Internet)

List of goods and services subject to price declaration and the authority to receive declarations

Based on Appendix 5 issued together with Decree 85/2024/ND-CP, the list of goods and services subject to price declaration and the authority to receive declarations are as follows:

What is the administrative penalty for incorrect price declaration?

According to Article 12 of Decree 87/2024/ND-CP, individuals who provide incorrect price declarations are administratively sanctioned as follows:

Sanctions for violations of regulations on price declaration of goods and services

1. A fine ranging from VND 3,000,000 to VND 5,000,000 for failing to declare all the contents or not using the standard form of the price declaration document.

2. For failing to declare correct selling prices or failing to declare prices with competent state agencies according to regulations:

a) A fine ranging from VND 10,000,000 to VND 15,000,000 for failing to declare correct selling prices or not declaring prices for 1 to 10 specific goods or services subject to price declaration;

b) A fine ranging from VND 15,000,000 to VND 20,000,000 for failing to declare correct selling prices or not declaring prices for 11 to 20 specific goods or services subject to price declaration;

c) A fine ranging from VND 20,000,000 to VND 25,000,000 for failing to declare correct selling prices or not declaring prices for 21 or more specific goods or services subject to price declaration.

3. Remedial measures:

a) Required to resubmit the price declaration document with complete and correct contents or in the correct form for the violation specified in Clause 1 of this Article;

b) Required to declare the prices for the applied price levels for violations specified in Clause 2 of this Article.

Thus, individuals who declare incorrect selling prices are administratively sanctioned specifically as follows:

- A fine ranging from VND 10,000,000 to VND 15,000,000 for declaring incorrect selling prices for 1 to 10 goods or services;- A fine ranging from VND 15,000,000 to VND 20,000,000 for declaring incorrect selling prices for 11 to 20 goods or services;- A fine ranging from VND 20,000,000 to VND 25,000,000 for declaring incorrect selling prices for 21 or more goods or services.

At the same time, they are required to declare the prices for the price levels applied with incorrect declarations.

Note: The above fine levels apply to individuals. The fine levels for organizations are twice the fine levels for individuals (based on Clause 4, Article 3, Decree 87/2024/ND-CP).

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