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Decree sets stricter penalties for dealing in fake and banned goods

Update: December, 11/2013 - 09:07
Other than fines for violations related to manufacturing and trade of tobacco and wine, trade promotion and e-commerce, Decree 185 also details penalties for non-compliance with rules regarding business licences and foreign traders.— File Photo
(VNS) — On November 25, 2013, the Government issued Decree 185/2013/ND-CP on administrative violations related to consumer protection as well as manufacturing and trading in fake and banned goods ("Decree 185").

Accordingly, other than fines for violations related to manufacturing and trade of tobacco and wine, trade promotion and e-commerce, Decree 185 also details penalties for non-compliance with rules regarding business licences and foreign traders.

Some of these include:

Violations related to business licence:

Carrying out business activities beyond those permitted in the business registration certificate ("BRC") or conducting business at an unregistered site shall be subject to fines between VND1,000,000 and VND5,000,000.

Fines between VND5,000,000 to VND10,000,000 will accrue for conducting business operations without a BRC or without a certificate indicating full satisfaction of required conditions for running the business; or a certificate of practice in respect to business sectors subject to certain conditions.

Violations related to the representative office ("RO") of foreign trade:

The RO can be fined up to VND10,000,000 if it fails to begin operations within the period specified in the business licence; or fail to publicise its activities as required by law.

The RO could also be fined between VND10,000,000 and VND20,000,000 for (i) illegally acquiring or subleasing its registered office/site; or (ii) failure to periodically report on its operations to competent authorities as regulated by law.

Decree 185 will take effect on January 1, 2014.

New implementation guidelines for Commercial law

In line with requirements on import and export management enshrined in multilateral and bilateral agreements, on November 20, 2013, the Government issued Decree 187/2013/ND-CP providing guidelines on implementing Commercial Law 2005 with respect to international trading, goods processing and the transit of goods involving foreign parties ("Decree 187"). This decree will replace Decree 12/2006/ND-CP dated 23 January 2006 ("Decree 12") with several updated provisions.

Import ban can be lifted for research, humanitarian aid

Under Decree 187, imported and exported goods must satisfy quarantine, food safety and quality requirements before custom clearance.

Decree 187 also says that an import ban on certain goods can be lifted for the purpose of scientific research or humanitarian aid.

Shipment deadline shortened on goods imported for re-export

Decree 187 stipulates that goods temporarily imported to Viet Nam for re-export have to be shipped overseas within 60 days after customs clearance. This halves the time of 120 days granted by Decree 12.

The temporary importing of export goods is a conditional business (accepted only it meets certain conditions) if it involves (i) goods banned or suspended from import and export; (ii) the goods bearing easily-contagious pathogens or easily-polluted-to environment; or (iii) the goods are charged the excise tax stipulated by the Ministry of Industry and Trade.

Annual procedure of custom clearance for process contract is rescinded:

Like Decree 12, Decree 187 provides that upon the expiration of their process contract, the involved parties must formally liquidate the contract and finalise all customs clearance procedures.

However, the requirement under Decree 12 that a process contract with a term longer than 1 year must finalise customs clearance procedures each year has been rescinded by Decree 187.

Decree 187 will take effect on February 20, 2014. – BIZCONSULT

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