What are the penalties on violations against regulations on trade in fertilizers in Vietnam?

What are the penalties on violations against regulations on trade in fertilizers in Vietnam? (Internet image)

What is fertilizer trade?

Fertilizer means products that provide nutrients or improve soil to increase crop yield and quality - according to the provisions of Clause 20, Article 2 of the Law on Crop Production 2018.

According to the provisions of Clause 6, Article 2 of Decree 84/2019/ND-CP, fertilizer trade includes one, multiple or all the following activities: display, sale, storage, preservation, transportation, wholesale, retail, import and export of fertilizers and other activities to trade fertilizers.

What are the penalties on violations against regulations on trade in fertilizers in Vietnam?

According to Article 22 of Decree 31/2023/ND-CP (effective from July 8, 2023) stipulating penalties on violations against regulations on trade in fertilizers (except for import of fertilizers) in Vietnam:

- A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed for erasing or intentionally correcting contents of the certificate of eligibility for fertilizer trade;

- A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for one of the following violations:

+ Trading fertilizers without obtaining the certificate of eligibility for fertilizer trade;

+ Trading fertilizers even when the certificate of eligibility for fertilizer trade has suspended or withdrawn;

+ Failing to maintain the satisfaction of requirements for trade in fertilizers according to regulations in Clause 2 Article 42 of the 2018 Law on Crop Production throughout the process of operation.

- A fine shall be imposed for trading fertilizers without obtaining the decision on authorization of marketing of fertilizers in Vietnam or fertilizers with the decision on authorization of marketing of fertilizers in Vietnam which has expired or revoked. To be specific:

+ A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for a fertilizer batch worth less than VND 50.000.000;

+ A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for a fertilizer batch worth from VND 50.000.000 to less than VND 100.000.000;

+ A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed for a fertilizer batch worth from VND 100.000.000 to less than VND 150.000.000;

+ A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed for a fertilizer batch worth from VND 150.000.000 to less than VND 200.000.000;

+ A fine ranging from VND 50.000.000 to VND 60.000.000 shall be imposed for trading fertilizers without obtaining the decision on authorization of marketing of fertilizers in Vietnam; or trading fertilizers with the decision on authorization of marketing of fertilizers in Vietnam that has expired or revoked which are worth VND 200.000.000 and above when there is a decision not to institute criminal proceedings, a decision on annulment of the decision on institution of criminal proceedings, a decision to terminate investigation, a decision to dismiss the lawsuit, or a decision to dismiss the lawsuit against the suspect or to grant exemption from criminal liability according to judgments issued by the presiding agency.

In addition, based on Clause 4, Article 22 of Decree 31/2023/ND-CP (effective from July 8, 2023) stipulating additional sanctions for violations against regulations on trading fertilizers (except for the import of fertilizers) as follows:

- The certificate of eligibility for fertilizer trade shall be suspended for a fixed period of 01 - 03 months if the violation prescribed in Point a Clause 3 of Article 22 of Decree 31/2023/ND-CP is committed; (Effective as of August 7/2023).

- The certificate of eligibility for fertilizer trade shall be suspended for a fixed period of 03 - 06 months if the violation prescribed in Point b Clause 3 of Article 22 of Decree 31/2023/ND-CPis committed; (Effective as of August 7/2023).

- The certificate of eligibility for fertilizer trade shall be suspended for a fixed period of 06 - 09 months if the violation prescribed in Point c Clause 3 of Article 22 of Decree 31/2023/ND-CP is committed; (Effective as of August 7/2023).

- The certificate of eligibility for fertilizer trade shall be suspended for a fixed period of 09 - 12 months if the violation prescribed in Point d Clause 3 of Article 22 of Decree 31/2023/ND-CP is committed; (Effective as of August 7/2023).

- The certificate of eligibility for fertilizer trade shall be suspended for a fixed period of 12 - 15 months if the violation prescribed in Point dd Clause 3 of Article 22 of Decree 31/2023/ND-CP is committed; (Effective as of August 7/2023).

In addition, according to Clause 5, Article 22 of Decree 31/2023/ND-CP (effective as of July 8, 2023) stipulating remedial measures for violations against regulations on trade in fertilizers (except for import of fertilizers) includes:

- Enforced destruction of fertilizers without obtaining the decision on authorization of marketing of fertilizers in Vietnam or fertilizers with the decision on authorization of marketing of fertilizers in Vietnam which has expired or revoked for violations specified in Clause 3 of Article 22 of Decree 31/2023/ND-CP;

- Enforced return of the certificate of eligibility for fertilizer trade for violations specified in Clause 1 of Article 22 of Decree 31/2023/ND-CP to the competent authority or person that has issued such certificate.

Thus, violations of fertilizer trading can be fined up to 60,000,000 VND for individuals and up to 120,000,000 VND for organizations. If the violation is in the cases specified in Clauses 4 and 5, Article 22 of Decree 31/2023/ND-CP (effective as of July 8, 2023), individuals and organizations will have to implement the following forms: additional penalties and remedial measures as prescribed.

Nguyen Pham Nhut Tan

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