On April 16, 2018, the Government of Vietnam issued Decree No. 55/2018/ND-CP prescribing administrative penalties for violations arising in the fertilizer sector.
Administrative penalties will vary depending on the level of violation. To be specific:
Warnings shall be given as a form of penalty for failure to submit annual review reports on fertilizer production, import and export.
The amount of monetary penalty ranging from VND 5,000,000 to VND 10,000,000 shall be imposed for one of the following violations:
- Do not set up spaces intended for separate storage of raw materials and finished products;
- Do not install shelves, linings and covers used for handling of finished products;
- Do not prepare annual review reports on fertilizer production, import and export during 02 consecutive years, or do not make ad-hoc reports upon the request of the relevant regulatory authority;
- Neither have recognized laboratories nor enter into contracts with appointed testing organizations in order to carry out assessment of indicators for quality of fertilizers manufactured on their own.
The amount of monetary penalty ranging from VND 10,000,000 to VND 15,000,000 shall be imposed for one of the following violations:
- Persons authorized direct management of manufacturing of fertilizers have not obtained at least a undergraduate degree in such majors as crop farming, plant protection, soil agro-chemistry, agronomy, chemistry and biology;
- Do not meet the deadline for recall of fertilizers stipulated in competent authority’s decisions.
The amount of monetary penalty ranging from VND 15,000,000 to VND 20,000,000 shall be imposed for one of the following violations:
- Do not keep samples of specific batches under regulations on the sample storage duration;
- Do not keep a record of test results under regulations on record-keeping duration of specific fertilizer batches;
- Do not establish a quality management system compliant with ISO 9001 or equivalent (except fertilizer plants that have been established for fewer than 1 year; or those only specializing in fertilizer packaging).
The amount of monetary penalty ranging from VND 20,000,000 to VND 25,000,000 shall be imposed for use of fertilizer manufacturing lines and machinery used from the raw material processing stage to the finished product manufacturing stage which do not comply with the technological process specified in the registration application for the certificate of conformity with fertilizer production requirements with relevant competent authorities.
The amount of monetary penalty ranging from VND 25,000,000 to VND 30,000,000 shall be imposed for one of the following violations:
- Do not carry out testing and assessment of quality of each batch of finished fertilizers before selling them on the market;
- Do not recall fertilizers under the decision granted by a competent authority.
The amount of monetary penalty ranging from VND 60,000,000 to VND 70,000,000 shall be imposed for manufacturing of fertilizers containing factors in excess of the permitted maximum limit.
The amount of monetary penalty shall be imposed for violations against regulations on the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License as follows:
- The amount of monetary penalty ranging from VND 10,000,000 to VND 15,000,000 shall be imposed for violations such as, at one’s free will, marking, erasing, correcting or changing information displayed on the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License;
- The amount of monetary penalty ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for refusal to give back the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License under the decision granted by a competent authority;
- The amount of monetary penalty ranging from VND 30,000,000 to VND 40,000,000 shall be imposed for manufacturing of fertilizers of which types are not specified in the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License;
- The amount of monetary penalty ranging from VND 40,000,000 to VND 50,000,000 shall be imposed for continuation in manufacturing of fertilizers even when such manufacturing activity has been subject to the suspension decision, or the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License has expired, impounded or revoked;
- The amount of monetary penalty ranging from VND 50,000,000 to VND 60,000,000 shall be imposed for manufacturing fertilizers at locations which are not specified in the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License;
- The amount of monetary penalty ranging from VND 60,000,000 to VND 70,000,000 shall be imposed for manufacturing fertilizers without obtaining the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License;
- The amount of monetary penalty ranging from VND 70,000,000 to VND 80,000,000 shall be imposed for manufacturing fertilizers with the Decision on authorization of marketing of fertilizers in Vietnam which has expired or revoked.
Penalties for manufacturing fertilizers without obtaining the Decision on authorization of marketing of fertilizers in Vietnam are as follows:
The amount of monetary penalty ranging from VND 80,000,000 to VND 90,000,000 shall be imposed for manufacturing fertilizers without obtaining the Decision on authorization of marketing of fertilizers in Vietnam that are worth under VND 200,000,000 or to earn illegal gains which are worth less than VND 100,000,000, except for manufacturing of fertilizers for research and testing purposes; manufacturing fertilizers in pilot manufacturing projects or programs for assistance in transfer of engineering and technological advances which are implemented within the project or program execution duration.
With respect to manufacturing fertilizers without obtaining the Decision on authorization of marketing of fertilizers in Vietnam to the minimum value of VND 200,000,000 or manufacturing fertilizers to earn illegal gains which are worth VND 100,000,000 or above, except for manufacturing of fertilizers for research and testing purposes, or manufacturing fertilizers in pilot manufacturing projects or programs for assistance in transfer of engineering and technological advances which are implemented within the project or program execution duration, the person accorded authority over this case shall promptly send documentation related to this violation to a criminal procedures authority to initiate criminal prosecution process under Article 62 of the Law on Handling of Administrative Violations; if the criminal procedures authority decides not to bring a criminal lawsuit, decides to revoke the decision on filing of a criminal case, decides to suspend the investigation process or decides to terminate the prosecution process, and such manufacturing is proved to be an administrative violation, the amount of monetary penalty for that violation shall range from VND 90,000,000 to VND 100,000,000.
Additional penalties
In addition to the above-mentioned penalties, the following additional penalties shall also apply:
- Depriving of the right to use the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License for the period from 03 to 06 months shall be imposed for any violation for which the amount of monetary penalty ranges from VND 15,000,000 to VND 20,000,000 that is committed in multiple times or repeated;
- Depriving of the right to use the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License for the period from 06 to 09 months shall be imposed for any violation for which the amount of monetary penalty ranges from VND 20,000,000 to VND 25,000,000 and violation for which the amount of monetary penalty ranges from VND 25,000,000 to VND 30,000,000 that is committed in multiple times or repeated;
- Depriving of the right to use the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License for the period from 09 to 12 months shall be imposed for the violation of manufacturing of fertilizers containing factors in excess of the permitted maximum limit, which is committed in multiple times or repeated;
- Depriving of the right to use the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License for the period from 06 to 09 months shall be imposed for:
+ Manufacturing of fertilizers of which types are not specified in the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License;
+ Manufacturing fertilizers at locations which are not specified in the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License.
- Depriving of the right to use the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License for the period from 09 to 12 months shall be imposed for any violation for which the amount of monetary penalty ranges from VND 80,000,000 to VND 90,000,000;
- Depriving of the right to use the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License for the period of 24 months shall be imposed for any violation for which the amount of monetary penalty ranges from VND 90,000,000 to VND 100,000,000;
- Termination of fertilizer manufacturing for the period from 03 to 09 months shall be imposed for:
+ Manufacturing fertilizers without obtaining the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License;
+ Manufacturing fertilizers with the Decision on authorization of marketing of fertilizers in Vietnam which has expired or revoked.
- Seizure of the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License shall be imposed for violations such as, at one’s free will, marking, erasing, correcting or changing information displayed on the Certificate of conformity with fertilizer manufacturing requirements/the fertilizer manufacturing License.
Remedial measures
Depending on the nature of the violation, there will be different remedial measures, including:
- Forcibly recall fertilizers for retests;
- Forcibly recall fertilizers which are then subject to destruction;
- Forcibly destroy, reprocess fertilizers without obtaining the Decision on marketing authorization in Vietnam or convert them into input materials intended for manufacturing of finished fertilizer products;
- Forcibly disgorge ill-gotten gains.
More details can be found in Decree No. 55/2018/ND-CP of Vietnam’s Government, which takes effect from April 16, 2018.
-Thao Uyen-
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