Vietnam: How are fines for production of foods and food additives whose uses are forged?

According to Article 10 of Decree No. 98/2020/NĐ-CP of Vietnam’s Government, administrative penalties for production of goods whose uses are forged are as follows:

- 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 less than VND 3.000.000 or the illegal profit obtained is less than VND 5.000.000;

- 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 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;

- 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 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;

- 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 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;

- A fine ranging from VND 50.000.000 to VND 70.000.000 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;

- A fine ranging from VND 70.000.000 to VND 100.000.000 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.

A fine that is twice as much as the corresponding fine prescribed above shall be imposed for the violation involving the counterfeit goods which are:

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

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

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

Concurrently, additional penalties are as follows:

- The exhibits of the violation shall be confiscated;

- The instrumentalities which are tools and machinery used for producing counterfeit goods shall be confiscated;

- The license or practicing certificate shall be suspended for a fixed period of 12 - 24 months if the violation is repeated or re-committed;

- Production operations shall be partially or entirely suspended for a fixed period of 12 – 24 months if the violation is repeated or re-committed.

Remedial measures:

- The exhibits of the violation shall be destroyed;

- The violating entity is compelled to return any benefits illegally obtained from the violation.

Thus, production of foods and food additives whose uses are forged shall be fined up to VND 200.000.000.

View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, effective from October 15, 2020.

Thuy Tram

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