Vietnam: How are fines for trade in counterfeit food and additives?

According to Article 9 of the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, fines for trade in goods whose uses are forged are as follows:

- A fine ranging from VND 1.000.000 to VND 3.000.000 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 3.000.000 to VND 5.000.000 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 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 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 10.000.000 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 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 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 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 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 VND 30.000.000 or more or the illegal profit obtained is VND 50.000.000 or more, if not liable to criminal prosecution.

The fine that is twice as much as the corresponding fine prescribed above shall be imposed for importing counterfeit goods or the violation involving 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;

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

Additional penalties:

- The exhibits shall be confiscated;

- The license or practicing certificate shall be suspended for a fixed period of 06 - 12 months if any of the violations prescribed above is repeated or re-committed.

Remedial measures:

- The exhibits shall be confiscated;

- The violating entity is compelled to transport to out of the territory of the Socialist Republic of Vietnam or re-export counterfeit goods imported;

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

Note: In the case of acts of trading in counterfeit goods in terms of use value and utility being food, food additives, food processing aids, food preservatives, drugs and medicinal ingredients are not examined for criminal liability, they shall be administratively sanctioned with a fine twice the fine levels specified in Clause 1 Article 9 of Decree No. 98/2020/NĐ-CP. That is, the violating entity shall be fined up to VND 140.000.000.

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

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE