Vietnam New penalty rules for counterfeit chemical products in Vietnam

Vietnam enacted the “Decree No. 98/2020/ND-CP on the penalties for administrative violations in trading and production of counterfeit and banned goods, and protection of consumer rights” on August 20, 2020. Chemicals such as cosmetics, detergents, insecticides, and fungicides are also covered. The original text of this decree can be downloaded from the following URL:
http://vanban.chinhphu.vn/portal/page/portal/chinhphu/hethongvanban?class_id=1&mode=detail&document_id=200841

 

Administrative fines for importing, manufacturing, and trading counterfeit chemicals, or forging its product labels are doubled compared to general merchandise, and depending on the target and quantity, a fine of up to VND 200 million (JPY 900,000) may be imposed for companies. In addition, penalties are stipulated in detail for distribution and trading of counterfeit products containing explosive substances, flammable liquids/gases, restricted chemicals in manufacturing/trading, or conditional chemicals.

The main violations and their fines are shown in the table below:

Type of violations Target products Fines
Importing counterfeit products Cosmetics, medical devices, detergents, chemicals, insecticides and fungicides for household and medical use, cement, iron and steel used in construction, protective helmets VND 2 million to 140 million
Manufacturing counterfeit products VND 10 million to 200 million
Trading products that are disguisedly labeled or packaged VND 2 million to 100 million
Manufacturing products that are disguisedly labeled or packaged VND 4 million to 100 million
Importing counterfeit stamps, labels and packaging Foods, food additives, food processing aids, food preservatives, drugs, medical ingredients, cosmetics, detergents, chemicals, insecticides  and fungicides for household and medical use, animal and aquaculture feeds, livestock waste treatment products, fertilizers, veterinary drugs, pesticides, plant varieties,  animal breeds, cement, iron and steel used in construction VND 600,000 to 60 million
Manufacturing counterfeit stamps, labels and packaging VND 1 million to 100 million
Importing smuggled goods Foods, food additives, food processing aids, food preservatives, drugs, medical ingredients, chemicals, insecticides  and fungicides for household and medical use, aqua environmental remediation products, livestock waste treatment products, veterinary drugs, fertilizers, cement, animal feeds, pesticides, growth stimulants,  plant varieties,  animal breeds VND 1 million to 100 million
Expired goods, goods of unknown origin and other violations Detergents, chemicals, insecticides and fungicides for household and medical use, aqua environmental remediation products, livestock waste treatment products, veterinary drugs, fertilizers, cement, animal feeds, pesticides, growth stimulants, plant varieties, animal breeds, aquaculture feeds VND 1 million to 100 million
Violations regarding supermarket and shopping mall management Goods containing radioactive substances that are prohibited from being sold in supermarkets and shopping malls, devices generating ionizing radiation in excess of permissible limits, explosives, flammable, explosive liquids or gases, veterinary drugs, pesticides, goods included in the list of restricted goods or goods containing toxic substances included in the list of restricted goods. VND 20 million to 30 million

 

In addition to the fines above, there are various additional penalties such as prohibition of manufacturing and trading of the relevant products or withdrawal of license.

This decree came into effect on October 15, 2020, and “Decree No. 185/2013/ND-CP on the penalties for administrative violations in trading and production of counterfeit and banned goods, and protection of consumer rights” and Decree No. 124/2015/ND-CP that amended and supplemented 185/2013/ND-CP became invalid.