According to the law in Vietnam, is there any fine for trading confection whose labels are forged?

According to the law in Vietnam, is there any fine for trading confection whose labels are forged?

Pursuant to Article 11 of the Decree 98/2020/NĐ-CP stipulating trade in goods whose labels or packages are forged as follows:

1. The following fines shall be imposed for trading in goods whose labels or packages are forged as prescribed in Point dd Clause 7 Article 3 hereof:

a) 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;

b) 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;

c) 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;

d) 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;

dd) 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;

e) 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.

2. The fine that is twice as much as the corresponding fine prescribed in Clause 1 of this Article shall be imposed for importing counterfeit goods or the violation involving counterfeit goods which are:

a) foods, food additives, food preservatives, food processing aids, drugs or medicinal ingredients, if not liable to criminal prosecution;

b) animal feeds, aquaculture feeds, aqua environmental remediation products, livestock waste treatment products, fertilizers, veterinary drugs, pesticides, plant varieties or animal breeds; or

c) cosmetics, medical devices, detergents, chemicals, insecticidal and microbicidal preparations for household and medical use, cement, iron and steel used in construction, or protective helmets.

3. Additional penalties:

a) The exhibits of the violations prescribed in this Article shall be confiscated, except the case of application of the remedial measure prescribed in Point a or Point b Clause 4 of this Article;

b) 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.

4. Remedial measures:

a) The violating entity is compelled to remove violating elements on labels or packages of counterfeit goods or destroy the counterfeit goods in case of commission of any of the violations prescribed in this Article, except the case of application of the remedial measure prescribed in Point b of this Clause;

b) The violating entity is compelled to transport to out of the territory of the Socialist Republic of Vietnam or re-export counterfeit goods imported prescribed in this Article;

c) The violating entity is compelled to return any benefits illegally obtained from one of the violations in this Article.

Pursuant to Clause 4 Article 4 of the Decree 98/2020/NĐ-CP stipulating penalties and remedial measures as follows:

a) The maximum fine for a violation in the field of commerce or protection of consumer rights is VND 100.000.000 if it is imposed on an individual or VND 200.000.000 if it is imposed on an organization. The maximum fine for a violation in the field of production and trade in counterfeit and prohibited goods VND 200.000.000 if it is imposed on an individual or VND 400.000.000 if it is imposed on an organization;

b) Each of the fines prescribed in Chapter II hereof is imposed for an administrative violation committed by an individual, except for the administrative violations prescribed in Point p Clause 2 Article 33, Clause 2 Article 34, Point b Clause 4 Article 35, Article 68, Article 70, Clause 6, 7, 8, 9 Article 73 and Clause 6, 7, 8 Article 77 hereof. The fine imposed upon an organization is twice as much as that imposed upon an individual for committing the same administrative violation.

As regulations above, a fine ranging from VND 1.000.000 to VND 50.000.000 shall be imposed on individuals for trading confection whose labels are forged. In addition, the violators shall face addition penalties and remedial measures as above regulations. If the violator is an organization, the fine shall be twice as much as that imposed upon an individual.

Shall the act of trading confection whose labels are forged be liable to crimial prosecution in Vietnam?

Pursuant to Article 193 of the Criminal Code in 2015 (amended by Clause 43.a Article 1 of the Law on amendments to the Criminal Code in 2017) stipulating manufacturing and trading of counterfeit food or food additives as follows:

1. Any person who manufactures or deals in counterfeit food or food additives shall face a penalty of 02 - 05 years' imprisonment.

2. This offence committed in any of the following circumstances carries a penalty of 05 – 10 years' imprisonment:

a) The offence is committed by an organized group;

b) The offence is committed in a professional manner;

c) Dangerous recidivism.

d) The offence involves the abuse of the offender's position or power;

dd) The offence is committed in the name of an agency or organization;

e) Goods are traded across the border;

h) The value of counterfeit goods, according to the value of genuine goods with the same quantity, specifications or features, is assessed at from VND 150,000,000 to under VND 500,000,000;

h) The illegal profit earned is from VND 100,000,000 to under VND 500,000,000;

i) The offence causes 31% - 60% WPI for another person;

k) The property damage caused by the offence is assessed at from VND 100,000,000 to under VND 500,000,000.

3. This offence committed in any of the following circumstances carries a penalty of 10 - 15 years' imprisonment:

a) The value of counterfeit goods, according to the value of genuine goods with the same quantity, specifications or features, is assessed at ≥ VND 500,000,000;

b) The illegal profit earned is from VND 500,000,000 to under VND 1,500,000,000;

c) The property damage caused by the offence is assessed at from VND 500,000,000 to under VND 1,500,000,000;

d) The offence results in the death of a person;

dd) The offence causes ≥ 61% WPI for another person;

e) The offence causes a total WPI of 61% - 121% for more than one person.

4. This offence committed in any of the following circumstances carries a penalty of 15 - 20 years' imprisonment or life imprisonment:

a) The illegal profit earned is ≥ VND 1,500,000,000;

b) The offence results in property damage assessed at ≥ VND 1,500,000,000;

c) The offence results in the death of ≥ 02 people;

d) The offence causes a total WPI of ≥ 122% for more than one person.

5. The offender might also be liable to a fine of from VND 20,000,000 to VND 100,000,000 , be prohibited from holding certain positions or doing certain works for 01 - 05 years or have all or part of his/her property confiscated.

6. Punishments incurred by a corporate legal entity that commits any of the offences specified in this Article:

a) A corporate legal entity that commits this offence in any of the circumstances specified in Clause 1 of this Article shall be liable to a fine of from VND 1,000,000,000 to VND 3,000,000,000;

b) A corporate legal entity that commits this offence in any of the circumstances specified in Points a, b, c, e, g, h, I, k Clause 2 of this Article shall be liable to fine of from VND 3,000,000,000 to VND 6,000,000,000;

c) A corporate legal entity that commits this offence in any of the circumstances specified in Clause 3 of this Article shall be liable to fine of from VND 6,000,000,000 to VND 9,000,000,000;

d) A corporate legal entity that commits this offence in the circumstance specified in Clause 4 of this Article shall be liable to a fine of from VND 9,000,000,000 to VND 18,000,000,000 or has its operation suspended for 06 - 36 months;

dd) A corporate legal entity that commits this offence in the circumstance specified in Article 79 hereof shall be permanently shut down;

e) The violating corporate legal entity might also be liable to a fine of from VND 100,000,000 to VND 300,000,000, be banned from operating in certain fields or raising capital for 01 - 03 years.

As regulations above, a penalty of 02 - 20 years' imprisonment or life sentence shall be imposed for trading confection whose labels are forged depending on the nature and level of violation. The offender might also be liable to a fine of from VND 20,000,000 to VND 100,000,000 , be prohibited from holding certain positions or doing certain works for 01 - 05 years or have all or part of his/her property confiscated. In addition, a corporate legal entity that commits this offence shall be liable to a fine of from VND 1,000,000,000 to VND 18,000,000,000, suspension of its operation for 06 - 36 months, be banned from operating in certain fields or raising capital for 01 - 03 years.

Best regards!