Heavy fines for concluding a petrol and oil agent contract with a petrol and oil retail agent that fails to satisfy all conditions in Vietnam

Heavy fines for concluding a petrol and oil agent contract with a petrol and oil retail agent that fails to satisfy all conditions in Vietnam (Internet image)

Article 23 of Decree 99/2020/ND-CP stipulates penalties for violations against regulations on appointing petrol and oil agents and acting as petrol and oil retail agents in Vietnam as follows:

1. A fine ranging from VND 20,000,000 to VND 40,000,000 shall be imposed for any of the following violations:

- Concluding contracts to act as a petrol and oil retail agent with a number of principals that exceeds the maximum permissible number of petrol and oil general agents or distributors or wholesalers as prescribed;

- Acting as a petrol and oil agent without a petrol and oil agent contract as prescribed or with an expired petrol and oil agent contract.

2. A fine ranging from VND 40,000,000 to VND 60,000,000 shall be imposed on a petrol and oil general agent for any of the following violations:

- Concluding contracts to act as a general agent with a number of wholesalers that exceeds the maximum permissible number as prescribed;

- Concluding a petrol and oil agent contract with a petrol and oil retail agent that fails to satisfy all conditions as prescribed;

- Appointing a petrol and oil agent without a petrol and oil agent contract as prescribed;

- Concluding a petrol and oil agent contract with a petrol and oil trader during the period such petrol and oil trader is a petrol and oil agent for another wholesaler or another petrol and oil distributor another petrol and oil general agent.

3. A fine ranging from VND 60,000,000 to VND 80,000,000 shall be imposed on a petrol and oil distributor for any of the following violations:

- Concluding a petrol and oil agent contract with a petrol and oil retail agent that fails to satisfy all conditions as prescribed;

- Appointing a petrol and oil agent without a petrol and oil agent contract as prescribed;

- Concluding a contract to act as a petrol and oil agent for another wholesaler or to act as a petrol and oil retail agent for another petrol and oil general agent;

- Concluding a petrol and oil agent contract with a petrol and oil trader during the period such petrol and oil trader is a petrol and oil agent for another wholesaler or another petrol and oil distributor another petrol and oil general agent.

4. A fine ranging from VND 80,000,000 to VND 100,000,000 shall be imposed for any of the following violations:

- Appointing a petrol and oil agent without a petrol and oil agent contract as prescribed;

- Concluding a petrol and oil agent contract with a petrol and oil trader during the period such petrol and oil trader is a petrol and oil agent for another wholesaler or another petrol and oil distributor another petrol and oil general agent;

- Concluding a petrol and oil agent contract with a petrol and oil retail agent that is ineligible to act as a petrol and oil agent as prescribed.

In addition, in addition to the fine above, the violator is compelled to return the illegal profits obtained from the violations.

More details can be found in Decree 99/2020/ND-CP, which comes into force from October 11, 2020.

Le Vy

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