Vietnam: Deposit payment will no longer be converted into fines at the end of the fine payment deadline

This is a new notable content of Decree No. 31/2020/NĐ-CP of Vietnam’s Government on amendments to Decree No. 115/2013/NĐ-CP on management and preservation of exhibits and vehicles of administrative violations seized or confiscated according to administrative procedures.

khong con chuyen tien bao lanh thanh tien phat

Decree No. 31/2020/NĐ-CP of Vietnam’s Government has amended and supplemented procedures for handling deposit payment when the time limit for executing the sanctioning decision expires and the organization or individual does not comply with the sanctioning decision.

Specifically, according to Clause 6 Article 1 of Decree No. 31/2020/NĐ-CP amending Point b Clause 3 Article 15 of Decree No. 115/2013/NĐ-CP:

Within 10 days from the date on which penalty decisions expire and organizations and individuals have not complied with said decisions, competent individuals capable of imposing administrative penalties shall issue decisions on offsetting deposit payment using form under Annex attached to this Decree.

Within 2 days from the date on which decisions above are issued, competent individuals shall send the decisions to organizations and individuals subject to said decisions according to address specified in the decisions.

Currently, according to Point b Clause 3 Article 15 of Decree No. 115/2013/NĐ-CP regulating procedures and amounts of deposit payment, within 10 days from the end of the time limit for complying with the sanctioning decision, if the organization or individual does not comply with the sanctioning decision, the guarantee amount will be converted into the sanctioning amount; in case the guarantee amount is greater than the sanction amount, the remainder of the guarantee amount after deducting the sanction amount will be returned to the organization or individual placing the guarantee.

Thus, from May 01, 2020, there will officially be no regulation that the deposit payment will be converted into a penalty amount when the enforcement period expires if the organization or individual does not comply. Instead, the person with authority to sanction administrative violations must issue a decision to deduct the deposit payment, and must send that deduction decision to the sanctioned organization or individual within 02 days.

Moreover, Decree No. 31/2020/NĐ-CP also specifies that decisions on offsetting deposits shall be considered as the basis to determine that organizations and individuals that commit the violations have complied with decisions on administrative penalties and may use the vehicles of administrative violations that are being stored and preserved.

View more amendments and supplements of Decree No. 31/2020/NĐ-CP of Vietnam’s Government HERE.

Toan Trung

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