Guideline on valuation of distrained property in administrative sanctioning in Vietnam

Guideline on valuation of distrained property in administrative sanctioning in Vietnam (Internet image)

1. Guideline on valuation of distrained properties in administrative sanctioning in Vietnam

According to Article 25 of Decree 166/2013/ND-CP, the valuation of distrained properties in administrative sanctioning is as follows:

- The valuation of distrained properties is conducted at the house of the individual or headquarters of the organization being seized or the place where the distrained property is stored, except in cases where an Asset Valuation Council needs to be established.

- The distrained property is valued based on the agreement between the person in charge of implementing the enforcement decision and the representative of the organization or individual being enforced and co-owners in the case of common property seizure. The time limit for the parties to agree on the price is no more than 05 working days from the date the property is seized.

In cases where the parties cannot agree on the price, within 10 working days from the date the property is seized, the person who issued the enforcement decision shall issue a decision to establish the Asset Valuation Council. The Asset Valuation Council consists of the person who issued the enforcement decision as the Chairman of the Council, a representative of the financial authority at the same level, and a representative of related specialized agencies.

Within 07 working days from the date of establishment, the Asset Valuation Council must conduct the valuation. The asset valuation is based on the market price at the time of valuation. For assets that the State uniformly manages the price, the valuation is based on the value set by the State.

The Asset Valuation Council operates on a collective principle. The asset valuation meeting of the Council is convened by the Chairman and must have at least two-thirds of the total members attending. During the valuation meeting, each member of the Asset Valuation Council provides their opinion on the value of the asset. Asset pricing decisions must be approved by more than half of the Council members.

In case of a tie in voting, the decision will follow the side with the vote of the Chairman of the Council or the person authorized to preside over the asset valuation meeting. The individual being seized or the representative of the organization with the distrained property can provide opinions on the valuation, but the final decision belongs to the Asset Valuation Council.

- The valuation must be recorded in writing, specifying the time, place of valuation, participants, name and value of the appraised property, and the signatures of the valuation participants and the asset owner.

2. Process for carrying out property distraint activities in administrative sanctioning in Vietnam

The process for carrying out property distraint activities is specifically regulated in Article 22 of Decree 166/2013/ND-CP as follows:

- Asset seizure must be conducted during daytime, from 08:00 to 17:00.

- The person issuing the enforcement decision or the person assigned to implement the enforcement decision presides over the seizure.

- When conducting asset seizure, the presence of the enforced individual or an adult with full civil capacity in the family, the representative of the seizing organization, the local government representative, and a witness is required.

If the individual subject to the enforcement decision or the adult in the family intentionally absents themselves, the seizure still proceeds but must have the local government representative and a witness present.

- Individuals or organizations subject to enforcement have the right to suggest which assets to seize first. The person in charge of the seizure must accept if the suggestion does not affect the enforcement.

If the enforced individual or organization does not make a specific suggestion on the asset seizure order, private property is seized first.

- Only common property owned by the enforced individual and others is seized if the enforced individual does not own any private property or the private property is insufficient to comply with the enforcement decision. If the property is disputed, the seizure proceeds with an explanation to the co-owners about their right to file a civil lawsuit.

The distraint agency is responsible for publicly announcing the time and place of seizure so that co-owners are informed. After 03 months from the date of seizure without any lawsuit filed, the distrained property is auctioned as per the law about the auction of assets.

Vo Tan Dai

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