Latest fine levels for violation of regulations on declaring prices of goods and services in Vietnam in 2024

Latest fine levels for violation of regulations on declaring prices of goods and services in Vietnam 2024 (Internet image)

On July 12, 2024, Hanoi issued Decree 87/2024/ND-CP on penalties for administrative violations in price management in Vietnam.

Latest fine levels for violation of regulations on declaring prices of goods and services in Vietnam 2024

Article 12 of Decree 87/2024/ND-CP regulates the penalty levels for price declaration violations of goods and services as follows:

(1) Fines ranging from VND 3,000,000 to VND 5,000,000 for declaring incomplete contents or using incorrect forms of price declaration documents.

(2) For acts of incorrect price declaration or failure to declare prices to the competent state authorities as stipulated:

- Fines ranging from VND 10,000,000 to VND 15,000,000 for declaring incorrect selling prices or failing to declare prices for 01 to 10 specific goods or services subject to price declaration;

- Fines ranging from VND 15,000,000 to VND 20,000,000 for declaring incorrect selling prices or failing to declare prices for 11 to 20 specific goods or services subject to price declaration;

- Fines ranging from VND 20,000,000 to VND 25,000,000 for declaring incorrect selling prices or failing to declare prices for 21 or more specific goods or services subject to price declaration.

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

In addition to fines, organizations and individuals are also required to adopt remedial measures as follows:

- Submission of the price declaration document with all required contents or in the correct form for the violation in clause (1);

- Implementation of price declarations for the determined prices for violations stipulated in clause (2).

Regulations on declaring prices of goods and services in Vietnam

- Price declaration is the price level of goods and services decided by the business organization of goods and services and notified to the competent authority receiving the declaration.

- Goods and services subject to price declaration include:

+ Goods and services on the price stabilization list;

+ Goods and services for which the State sets a price ceiling, price floor, and let organizations determine specific selling prices for consumers;

+ Goods and services whose prices are determined by enterprises based on reference prices;

+ Other essential goods and services as stipulated by the Government of Vietnam.

Ministries, sectoral management agencies, and provincial People's Committees regulate the economic and technical characteristics of goods and services subject to price declaration.

- The content of the price declaration includes the price level associated with the name, type, origin (if any), quality indicators (if any), and the reason for price adjustments between declarations.

- Entities subject to price declaration are business organizations of goods and services registered according to the law on enterprises and have the right to decide prices; listed by the competent authority for price declaration receipt as regulated below.

- The process for developing and notifying the list of business organizations of goods and services subject to price declaration is as follows:

+ Ministries and sectoral management agencies with competent authority for declaration receipt review and issue the list of business organizations of goods and services subject to price declaration at the ministry or sectoral level;

+ Provincial People's Committees review and issue the list of business organizations of goods and services subject to price declaration in the local area, excluding those already listed by ministries or sectoral management agencies.

- Business organizations of goods and services subject to price declaration have the right to decide on the prices of goods and services, are responsible for the initial price declaration and re-declaration after price decisions per regulations, and are liable for their declared prices and content.

- The declaration receiving agency is responsible for organizing the update of declared price information into the price database; and may use the declared price level in aggregating, analyzing, and forecasting market prices per regulations.

(Article 28 of Price Law 2023)

Nguyen Ngoc Que Anh

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