Vietnam: Representative offices of foreign trade promotion organizations failing to report its activities shall be fined up to VND 30 million

According to Article 68 of the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, fines for violations against regulations on establishment and operation of representative offices of foreign trade promotion organizations in Vietnam (hereinafter referred to as “representative offices”) are as follows:

1. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for committing one of the following violations:

- Providing false or inaccurate information in the application for issuance, modification, re-issuance or renewal of the license for establishment of representative office;

- Failing to make public notification of operation of the representative office in Vietnam after the issuance, re-issuance, modification or renewal of the license for establishment of representative office;

- Failing to carry out procedures for modification of the license for establishment of representative office within the prescribed time limit upon occurrence of one of the following changes: change of the head of the representative office, relocation, change of name or operation of the licensed representative office, relocation of head office of the foreign trade promotion organization, change of name or place of registration of the foreign trade promotion organization from one country to another or changes in operation of the foreign trade promotion organization;

- Making interlineations, erasure or alteration of contents of the issued license for establishment of representative office;

- Locating the representative office at a place other than the one specified in the license for establishment of representative office;

- Sub-leasing the premises of the representative office or acting as the representative office of another trade promotion organization.

2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:

- Failing to submit reports, submitting reports after the prescribed deadline, or failing to provide documents or explanations about issues concerning operation of the representative office at the request of competent authorities;

- Operating against the license for establishment of representative office;

- The head of the representative office is also the head of a representative office of another foreign trader or organization in Vietnam;

- Continuing operation after the license for establishment of representative office has been revoked by the licensing authority or the license is not granted renewal upon the end of operation duration specified in the license;

- Continuing operation after the foreign trade promotion organization has completed procedures for termination of operation.

3. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:

- Establishing a representative office affiliated to the representative office of a trade promotion organization in Vietnam;

- Performing trade promotion activities in Vietnam without establishing a representative office in Vietnam as prescribed;

- Illegally establishing a representative office in Vietnam;

- Directly performing activities for obtaining profit in Vietnam.

Moreover, the exhibits of the violation shall be confiscated. The violating entity is compelled to return any benefits illegally obtained from the commission of the violation.

View more details at the Decree No. 98/2020/NĐ-CP of Vietnam’s Government, issued on August 24, 2020.

Le Vy

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