How are contraband goods different from goods of unknown origin? What are the penalties regarding this matter in Vietnam?

How are contraband goods different from goods of unknown origin? What are the penalties regarding this matter in Vietnam? 

According to Clause 13, Article 3 of Decree 98/2020/ND-CP, the Government stipulates:

 “good of unknown origin” means the good sold on the market but there are no grounds for determining its manufacturer or origin. Grounds for determining the manufacturer or origin of the good include information shown on its label or package, its accompanied documents; proofs of origin, sale and purchase contracts, invoices, customs declarations, and other documents proving the legal ownership of the good and civil transactions between the manufacturer and relevant parties as prescribed by law.

Also in Clause 6, Article 3 of Decree 98/2020/ND-CP, the Government stipulates that contraband goods include:

- Imported goods included in the list of goods banned from import or the list of goods temporarily suspended from import as prescribed by law, unless they are imported with the Prime Minister’s permission;

- Goods imported without the required import license or without meeting given import conditions as prescribed by law;

- Goods imported without going through a prescribed border checkpoint or without following customs procedures as prescribed by law, or the information on quantities or types of which is falsified when following customs procedures;

- Imported goods sold on the market without accompanied invoices and documents as prescribed by law, or with unlawful invoices and documents;

- Goods, which are subject to import labeling, imported without bearing stamps as prescribed or with bearing false or used stamps.

Thus, it can be seen that goods of unknown origin are goods for which there is no basis to determine the origin of the goods. Meanwhile, smuggled goods whose origin can be determined but are smuggled across the border without customs procedures or are goods banned from import into Vietnam must have stamps but do not have import stamps.

In case the competent authority clearly determines that the act of importing these goods is an act of smuggling, violators will be subject to an administrative violation record and must pay a fine as prescribed in Article 15 of Decree 98/2020/ND-CP, with a fine ranging from 500 thousand VND to 100 million VND, depending on the severity of the violation. The prescribed penalty level will be applied. In addition, the violator must also destroy the smuggled goods and return the illegal profits obtained from violating the law.

In addition, the act of illegally importing goods into Vietnam for illegal sale across the border is an act of illegally transporting goods across the border to exchange, contrary to the provisions of the law on the import and export of goods across borders. Therefore, if the smuggled goods are worth from 100 million VND to less than 300 million VND or less than 100 million VND but have been administratively sanctioned for this act or have been convicted, have not had their criminal record erased, but still violate the provisions of Clause 1, Article 188 of the current Penal Code, violators may be criminally prosecuted for smuggling with a fine of from 50 million VND to 300 million VND or imprisonment for 6 months to 15 years. Depending on the severity of the crime, the appropriate penalty level for the crime will be applied.

Trading goods on the market must ensure clear origin, product quality, and that goods are managed on the basis of announced applicable standards and corresponding technical regulations according to the provisions of Article 5 of the Law on Product and Goods Quality 2007. Therefore, when trading any goods, it is necessary to carefully find out the origin and need to have a business license in accordance with the provisions of law.

Bao Ngoc

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