Decree No. 107/2008/ND-CP on administrative sanctioning of acts of goods speculation and hoarding, excessive price hiking, rumor spreading, smuggling and trade frauds

Article 1.- Scope of regulation DECREE No. l07/2008/ND-CP OF 1. This Decree provides for the SEPTEMBER 22, 2008, ON administrative sanctioning of; ADMINISTRATIVE SANCTIONING OF aJ Acts of speculating goods; hoarding ACTS OF GOODS SPECULATION AND goods; excessively hiking prices; spreading HOARDING, EXCESSIVE PRICE false information on market and goods and HIKJNG, RUMUR SPREADING, service prices; SMUGGLING AND TRADE FRAUDS bl Acts of violation of regulations on declaring, registering and quoting goods and service prices; THE GOVERNMENT clActs of illegally exporting or transporting across the border paddy, rice, petrol, nit, fore'l.t Pursuant to the December 25, 2001 Law on products and minerals; Organization ofthe Government,' d! Frauds in goods measuring and. packing Pursuant to lite JUlie 14, 2005 Commercial and goods and. service quality. Law; 2. The administrative sanctioning of acts of Pursuant to the April 26, 2002 Ordinance violation specified in Articles 4,5,6 and 7 of on Prices; this Decree is applicable only: alTo goods and services on the list of goods Pursuant to the July 2, 2002 Ordinance on and services subject to price valorization to be Handling ofAdministrative Violations and the applied nationwide under the Government's April 2, 2008 Ordinance Amending and regulations or the Prime Minister's decisions Supplementing a Number of Articles of the and other goods and services to be applied Ordinance on Handling Of Admtntstrattve within localities under decisions of presidents Violations; of provincial-level People's Committees; At the proposal of the Minister of lrulustry bl In case of an abnormal market fluctuation and Trade, in goods and service supply-demand balance @ VIETNAM LAW & LEGAL FORUM 6 OFFICIAL GAZETTE Issue nos 09-101September 2008 (Cdng BAD nos 5li7.liROfOdcJ:w 6,2008) and prices caused by natural disasters, fires, and Clause 1, Article 7 of the 2002 Ordinance epidemics or wars , or other une x pected on Handling of Administrative Violations. circumstances when the Prime Minister or the Minister of Finance announces national- or Article 3.- Application of provisions on TP.e-JnTHll-lp:vp;I f1ppli('Mion of price valorization adminisrrarive f'::Inrt;nnine: measures or presidents of provincial-level Sanctioning principles; extenuating or People's Committees announce local aggravating circumstances; statute of application of price valorization measures. limitations and time limits for sanctioning; 3. Dossiers of violation cases of goods durations for violators to be regarded as having speculation, illegal cross-border export or never been sanctioned; methods of determining transportation of petrol, oil, paddy, rice, forest lime limits and stature of limitations; application products and minerals specified in Articles 4, of administrative sanctioning forms and 10and 11of thisDecreeinvolving goodsvalued remedies; and competent persons at VNn 100.000.000 nrmore and showing signs reeponsibilitice in administrative sanctioning of crimes shall be forwarded to competent comply with the 2002 Ordinance on Handling criminal procedure-conducting bodiesfor penal of Administrative Violations and the 2008 liability examination. When criminal Ordinance Amending and Supplementing a procedure-conducting bodies decide not to Number of Articles of the Ordinance on examine these violations for penal liability, Handling of Administrative Violations. administrative sanctioning thereof complies with Articles 4, 10 and II of this Decree. Chap/erll

Article 2.- Subjects of application ACTS OF ADMINISTRATIVE VIOLATION, SANCTIONING FORMS I. Vietnamese organizations and individuals AND LEVELS that commit acts of administrative violation specified in thb D~CHX.

Article 4.· Sanctioning of acts of goods 2. Foreign organizations and individuals that speculation commit acts of administrati ve violation 1, Acts of taking advantage of a scarcity of specified in this Decree in the Vietnamese goods or creating a sham scarcity of goods on territory, unless otherwise provided for by the market in order to collect or buy in goods treaties to which Vietnam is a contracting party. Which are on the list of goods subject to price 3. Minors who commit acts of administrative valorization according to law other than the violation specified in this Decree shalJ be goods specified in Clause 2 of this Article fOT saucuoneu uuuer Point a, Clause I, Article 0 resale IO earn illegal proms shall be fined as © VIETNAM LAW & LEGAL FORUM Issue nos 09-1 O/Seotember 2008 OFFICIAL GAZETTE 7 (C6ng &0 ocs 557.56CVOc/obQr6, 2(08) follows: cl Between VND 20,000,000 and VND 30,000,000 if collected or bought-in goods are aI Between VND 3,000,000 and VND valued at between over VND 80,000,000 and 5,000,000 if collected or bought-in goods are under VND 100,000,000; valued at VND 20,000,000; d! VND 35,000,000 if collected or bought- hI Between VND 5,000,000 and VND in goods are valued at VND 100,000,000 but 10,000,000 if collected or bought-in goods are not subject to penal liability examination. valued at between over VND 20,000,000 and VND 50,000,000; 3. Fine levels specified in Clauses- 1 and 2 of this Article will double in the following cases: cl Between VND 10,000,000 and VND :20,000,000 if collected or bought-in goods are ~I Ads of violation are committed by valued at between over VND 50,000,000 and enterprises and business branches in Vietnamj VND 80,000,000, hI Acts of violation are committed by dJ Between VND 20,000,000 and VND individuals, enterprises and branehcsthat have 30,000,000 if collected or bought-in goods are not made business registration or are not valued at between over VND 80,000,000 and licensed to trade incollected or bought in goods. UHUe[ VND 100,000,000; 4. Additional sanctions and remedies of eI VND 35,000,000 if collected or bought- consequences: in goods are valued at VND 100,000,000 or al Confiscating goods, for violations more but not subject to penal liability specified in this Article; examination. hI Confiscating the money earned from 2. ACt3 of taking advantage of a scarcity of administrative violations, for violations goods or creating a sham scarcity of goods on specified in this Article; the market in order to collect or buy in goods cl Depriving of the right to use. business being petrol, oil, cement, conatruction steel, eligiblllty t,;l':lliril.:al.c~ and all k.iIllJ:s uf grarned liquefied gas and chemical fertilizer for resale business licenses for up to 12 months, or to earn illegal profits shall be fined as follows: depriving ofthe right to use such certificates or aI Between VNU J,UUU,UUU and VNV licenses for an indefinite time of more. than 12 10,000,000 if collected or bought-in goods are months for repeated violations or recidivism, valued at VND 50,000,000; for violations specified in this Article. hi Between VND 10,000,000 and VND Article 5.· Sanctioning of acts of hoarding 20,000,000 if collected or bought-in goods are goods valued at between over VND 50,000,000 and VND 80,000,000; 1.To impose a fine between VND 5,000,000 © VIETNAM LAW & LEGAL FORUM 8 OFFICIAL GAZETTE Issue nos 119-1 OISeptember 2008 (C6no Baonos 557-56OOctober6. 20(8) and VND 10,000,000 on business households of this Article will double in the following cases: which commit the following acts of hoarding ill Acts uf viulauon are committed by goods goods without justifiable reasons: producers, processors, packagers, assemblers, aI Reducing sale places; bottlers, canners, fillers and importers; bl Reducing sale modes (from wholesale to bl Acts of violation are comrmtted by retail sale) as compared with previous times; enterprises and business branches in Vietnam; d Setting sale conditions, quoting prices and cI Acts of violation are committed by selling goods on a quantitative or buyer basis supermarkets, trade centers or other modem which are different from previous times; goods distribution establishments. dI Reducing time for sale and supply of 6. Additional sanctions: goods as compared with previous times. al Confiscating goods, for violations 2.Toimposeafine betweenVND 10,000,000 specified in Clause 4 of this Article. and VND 1.:'1,000,000 on business hnusehulds hI Depriving of the right to use business which commit one of the following acts of eligibility certificates and all kinds of granted hoarding goods without justifiable reasons: business licenses for up to 12 months, or a/Reducing the quantity of goods to be sold; depriving of the right to use such certificates or hI Stopping selling goods. licenses for an indefinite time of more than 12 months for repeated violations or recidivism, 3. -rormpose.annetetween VND 1.:5,000,000 for violations specified in this Article. and VND 20,000,000 on business households which commit one of the following acts of Article 6.- Sanctioning of acts ofexcessively huanllng ~UI..Jilli wluunn justiflabte reasons: htktng prtces aJ Notopening shops or trading places so as 1. To impose caution or a fine between VND not to sell goods; 500.000 and VND 1.000.000 on acts of raising bl Opening shops or trading places without sale prices or service charges by 20% from the selling goods. price levels declared or registered with 4. To impose a fine between VND competent stale agencies in order to earn illegal 20,000,000 and VND 30,000,000 on business profits if goods or services are valued at up to households which commit acts of stockpiling a VND 5,()()(),OOO. quantity of gncw:l<:. 1'\0% highfO.r than the ~Vf',rage 2. To impose a fine between VND 1,000,000 inventory of these goods of three consecutive and VND 3,000,000 on acts of violation preceding months. specified in Clause 1 of this Article if goods or 5. Fine levels specified in Clauses 1 thru 4 services are valued at between over VNU © VIETNAM LAW & LEGAL FORUM Issue nos 09-1 O/SeDtember 2008 OFFICIAL GI,ZETTE 9 (r.fmg 880 nos 5S7-56O!October 6, 2008) 5,000,000 and VND 10,000,000, enterprises and business branches in Vietnam; cl Acts of violation ccunuittcd by 3. To impose a fine between VND 3,000,000 supermarkets, trade centers or other modem and VND 5,000,000 on acts of violation goods distribution establishments. specified in Clause 1 of this Article if goods or services are valued at between over VND 9. Additional sanctions: 10,000,000 and VND 20,000,000. aJ Confiscating the money earned from 4. To impose a fine between VND 5,OOO,OCVJ :lrlmilli<;IT~tivf' v io la ti cn s , for viol ations and VND 7,000,000 on acts of violation specified in this Article. specified in Clause 1 of this Article if goods or bl Depriving of the right to use business !i:f'.Tvir.f's. :lTP: valued at between OVP:f VNO eligibility certificates and all kinds of granted 20,000,000 and VND 50,000,000. business licenses for up to 12 months, or 5. To impose a fine between VND 7,000,000 depriving of the right to use such certificates or and VND 10,000,000 on acts of violation licenses for an indefinite time of more than 12 specified in Clause 1 of this Article if goods or months for repeated violations or recidivism, services are valued at between over VND for violations specified in this Article. 50,000,000 and VND 80,000,000.

Article 7.- Sanctioning of acts of spreading 6. To impose a fine between VND rumors on markets and goods and service prices 10,000,000 and VND 15,000,000 on acts of violation specified in Clause 1 of this Article if 1. To impose caution or a fine between VND goods or services are valued at between oyer 500,000 and VND 1,000,000 on individuals who VND 8,000,000 and VND 100,000,000. commit acts ofmaking up or spreading untruthful information on market situation and goods and 7. To impose a fine between VND service prices causing market instability and 15,000,000 and VND 20,000,000 on acts of psychological confusion in the society, vlolatlun specified ill Clause 1 uf lllb Aulcle if goods or services are valued at over VND 2. To impose a fine between VND 1,000,000 100,000,000. and VND 5,000,000 on business households committing ar-ts of making lip or spreading 8. Fine levels specified in Clauses I thru 7 untruthful information on market situation and of this Article will double in the following cases: goods and service prices causing market d Avte uf vlulauou <lie C.UI1I1l11UCU by ,guulh instability and psychological confusion in the producers, processors, packagers, assemblers, society. bottlers, canners, fillers and importers; 3. To impose a fine between VND 5,0CI0,OOO bl Acts of violation are committed by and VND 10,000,000 on enterprises committing © VIETNAM lAW & lEGAL FORUM 10 OFFICIAL GAZETTE Issue nos 09-1 OISeptember 2008 (Gana Bao nos 557·56O!Oct00er 6. 2008) acts of making up or spreading untruthful Article 8.~ Sanctioning of acts of violation informatinn nn market situation and goods and of regulations on declaration and registration service prices causing market instability and of goods and service prices psychological confusion in the society. 1. To impose a fine between VND 3,000,000 4. To impose a fine between VND 10,000,000 and VND 5,000,000 on acts offailing to declare and VND 20,000,000 on mass media agencies goods and service prices with competent state and concerned organizations committing acts of agencies under regulations. making up or spreading untruthful information on market situation and goods and service prices 2. To impose a fine between VND5,000,000 and VND 10,000,000 on acts of failing to on the mass media such as newspaper, radio, television, onltne news service or other register goode and uervicc prices with competent publications causing market instability and state agencies under regulations. psychological confusion in the society. 3. Remedies of consequences: 5. Fine levels specified in Clauses 1 thru 4 To compel price declaration and registration of this Article will double in cases of under regulations, for violations specified in this intentionally making up or spreading untruthful Article. information for self-seeking purposes.

Article 9.- Sanctioning of acts of violation 6. Additional sanctions and remedies: of regulations on quoting goods and services aJ Compelling correction of information, for violations specified in Clauses 2, 3 and 4 of this 1. To impose caution or a fine between VND 500,000 and VND 1,000,000 on one of the Article; following acts: bI Compelling destruction or confiscation for destruction ofpublications containing violating aJ Failing to quote goods and services at rnforrnanen, for violations specified in Clause shops, stalls or places for sale and purchase of 4 of this Anicle; goods or provision of services; cl Depriving of the right to use business hi Quoting not under regulations or unclearly eligibility certificates and all kinds of granted quoting causing confusion to customers. business licenses for up to 12 months, or 2. To impose a fine between VND 1,000,000 depriving of the right to use such certificates or and VND 5,000,000 on acts of selling goods or license'S for an indefinite time of more than 12 Charging serves at prices higher thanquotations. months for repeated violations or recidivism, for violations specified in Clauses 2 and 3 of 3. To impose a fine between VND 5,000,000 thill AT'fidl'. an'; VNn 10,000,000 on :lC'tll of violM;on © VIETNAM LAW & L.EGAL. FORUM Issue nos 09-1 O/Seotember 2008 OFFICIAL GAZETTE 11 (Cong BaD nos 557-5601October 6, 2008) specified in Clauses 1 am} 2 of this Article in aI Compelling the making of quotations the following cases: under regulations, for violations specified in aJ Goods and services whose prices, price Clauses 1,3,4 and 5 of this Article; brackets or price limits are set by the State; bl Compelling the refund of money earned bl ococs and. services are on the list of goods rrom charging higher than quotattons to and services subject to price valorization customers for violations specified in Clauses according to law; 2,3, Pointe of Clause 4 of this Article, When it cI Goods and services are on the list of goods is impossible to identify CUSIOmers ror refund, and services subject to restricted business or to confiscate such amounts for remittance into conditional business; the state budget; dJ Acts of violation are committed by cl Confiscating foreign currency amounts supermarkets, trade centers or other modern earned from administrative violations specified goods distribution establishments. in Clause 5 of this Article; 4. To impose a fine between VND dI Depriving of the right to use business 10,000,000 and VND 20,000,000 on foreign eligibility certificates and all kinds of granted currency or gold trading ectebliohmcnto which business licenses for up to 1:2 months, or commit one of the following acts: depriving of the right to use such certificates or licenses for an indefinite time of more than 12 aJ Failing to post foreign exchange rates or month" for Tf'_pf'51tl>1i violations or reetdivism, buying and selling prices of gold at trading for violations specified in this Article. places; bl Unclearly posting up foreign exchange Article 10.- Sanctioning of acts of illegal rates or buying and selling prices of gold cross-border export of petrol and oil causing confusion to customers; 1.To impose a fine between VNDS,OOO,OOo rl Buying and selling foreign currencies or and VND 10,000,000 on petrol and on retailers gold not at posted-up prices. in border areas that commit acts of violation of 5. To impose a fine between VND regulations on petrol and oil trading 20,000,000 and VND 30,000,000 on acts of management in border areas promulgated by the quoting goods and services in foreign currencies Minister of Industry and Trade. or selling goods or charging services in foreign currencies without permission. 2. To impose a fine between VND 5,000,000 and VND 10,000,000 on one of the following 6. Additional sanctions and remedies of acts if petrol and oil are valued at up to VND consequences: 10,000,000: © VIETNAM LAW & LEGAL FORUM 12 OFFICIAL GAZETTE Issue nos 09-10fSeDlember 2008 (GOng 880 nos 557.fi6010ct0ber 6.20(8) aJ Illegally transporting petrol and oil to 8. Additional sanctions and remedies of border areas: consequences: b/ Illegally transporting, trading in or aI Compelling the observance of the Ministry exchanging petrol and oil across the border; of Industry and Trade's regulations on petrol C! 'rraomg In or exchanging petrol ana 011 and oil trading management in border areas; with foreign vessels or fishing means at sea. bl Confiscating goodsinvolvedin violations specified in Clauses 2 thru 7 of this Article; 3. To impose a fine between VND cl Confiscating money earned from 10,000,000 and VND 20,000,000 on acts of administrative violations specified in Clauses violation specified in Clause 2 of this Article if 2 thru 7 of this Article; petrol and oil are valued at between over VND 10,000,000 and VND 30,000,000. dI Confiscating means of transport, for violations specified in Clauses 2 thru 7 of this 4. To impose a fine between VND Article for one of the following cases: repeated 20,000,000 and YND 30,000,000 on acts of violations or recidivism, using number plates violation specified in Clause 2 of this Article if granted by competent authorities not for such petrol and oil are valued at between over VND vehicles, committing acts of avoiding or 30,000,000 and VND .30,000,000. obstructing persons on duty, except for cases specified in Clause 2, Article 17 of the 2002 5. To impose a fine between VND Ordinance on Handling of Administrative 3D.DOO.OM and VND 50.000.000 on acts of Violations; violation specified in Clause 2 of this Article if petrol and oil are valued at between over VND e/ Depriving of the right to use business 50,000,000 and VND 70,000,000. eligibility certificates and all kinds of granted business licenses for up to 12 months, or 6. To impose a fine between VND depriving of the right to use such certificates or 50,000,000 and VND 70,000,000 on acts of licenses for an indefinite time of more than 12 violation specified in Clause 2 of this Article if months for repeated violations or recidivism, petrel and oil are valued at between over VND for violations specified in this Article. 70,000,000 and under VND 100,000,000.

Article 11.- Sanctioning of acts of illegally 7. To impose a fine ofVND 70,000,000 on exporting paddy, rice, forest products and acts of violation specified in Clause 2 of this minerals across the border Article ifpetrol and oil are valued at over VND 100,000,000 for cases not subject to penal 1. To impose a fine between VND 500,000 liability examination under decisions of and VND 1,000,000 on one of the following acts criminal procedural agencies. if goods are valued at up to VND 5.000.000~ © VIETNAM LAW & LEGAL FORUM Issue nos 09·10/8eotember 2008 OFFICIAL GAZETTE 13 (Cong Ban nos fi.."i7-56fl1Or.fnhI:lr 6, ?()()R) a/ Illegally transporting, trading in or Article if goods are valued at VND 100,000,000 exchanging paddy, riCl", forest prolincr" ~nc:l or more without examining these acts for penal minerals across the border; liability. bl Illegally trading in or exchanging paddy, 8. Fine levels specified in Clauses I thru 7 rice, forest products and minerals with foreign of this Article will double in the following cases: means of transport on river or at sea. aJ Forest products are log or sawn timber 2. To impose a fine between VND 1,000,000 from natural forests. precious and rare animals and VND 2,000,000 on acts of violation and plants, precious and rare plant vaneties and specified in Clause 1 of this Article if goods are animal breeds on the list banned fram trading valued at between over VND 5,000,000 and or export; VND 10,000,000. bl Special and hazardous minerals. 3. To impose a fine between VND 2,000,000 and VND5,000,000 on acts ofviolation specified 9. Provisions on administrative sanctioning in Clause 1 of this Article if goods are valued at prescribed in this Article are not applicable to between over VND 10,000,000 and VND the exchange ofpaddy and rice for consumption 20,000,000. by border inhabitants according to current regulations. 4. To impose a fine between VND 5,000,000 10. Additional sanctions and remedies of and VND 10,000,000 on acts of violation consequences: specified in Clause 1 of this Articlc if goode arc valued at between over VND 20,000,000 and aJ Confiscating goods involved in violations VND 50,000,000. specified in this Article; hI Confiscating moncy amounts corned from 5. ToimposeafinebetweenVND 10,000,000 administrative violations specified in this Article; and VND 20,000,000 on acts of violation specified in Clause 1 of this Article if goods are c/ Confiscating means of transport for valued at between over VND 50,000,000 and violations specified in (his Article for one of VND 80,000,000. the following cases: repeated violations or recidivism, using number plates granted by 6. To impose a fine between VND 20.000.000 competent authorities not for such vehicles, and VND 30,000,000 on acts of violation avoiding or obstructing persons on duty, except specified in Clause I of this Article if goods are for cases specified in Clause 2, Article 17 of valued at between over VND 80,000,000 and the 2002 Ordinance on Handling of under VND 100,000,000. Administrative Violations; 7. To impose a fine ofVND 35,000,000 on dJ Depriving of the right to use business acts uf vtotauon spectrted in Clause 1 uf this eligtblllty centrtcaies and all kinds of granted © VIETNAM LAW & LEGAL FORUM 14 OFFICIAL GAZETTE Issue nos 09-10fSeptember 2008 (GOng BaD nos 557-560/0etober 6. 20(8) business licenses for up to 12 months, or Government's Decree No. 06/20081ND-CP of depriving of the right to use such certificates or January 16.2008. on administrative sanctioning licenses for an indefinite time of more than 12 of violations in commercial activities. monthsfor repeated or recidivism, for violations specified in this Article. 3. Fine brackets specified at Points a, b, c, d, e, f and g, Clause 4, Article 23 of the Government's

Article 12.- Sanctioning of acts of violation Decree No.06l2OO8JND-CP ofJanuary 16,2008, concerning goods banned from trading, on administrative sanctioning of violations in smuggled goods worth VND 100,000,000 or commercial activities, are applicable to the more, faJ.:e goods worth VND 30,000,000 or administrative sanctioning of acts of trading in more and ... iolation in goods labeling unlabeled goodssubjectto goods labeling. 1. Dossiers of cases of violation concerning Article 13.- Sanctioning of frauds in goods goods banned from trading, smuggled goods measuring and packing and goods and service worth VND 100,000,000 or more and fake goods quality worth VND 30,000,000 or more which show signs of crimes shall be forwarded to competent 1. To impose caution or a fine between VND criminal procedure conducting bodies for penal 70,000 and VNn 'l0,000 nn rrne of the liability examination. When criminal procedure- following acts causing damage to customers if conducting bodies decide not to examine these goods are valued at up to VND 100,000: cases for penalliability, administrative sanctions al Counuiu iug Ir auds ill weighing, shall be imposed with the highest fine level of the measuring, counting or packing goods; highest fine bracket set for acts of administrative hi Committing frauds in goods quality as violJmnn ioepthPT with ad0ition~1 ";'Inrtion<: antl compared WIth announced quality or quality remedies ofconsequences specified inArticies 18, information on goods labels. 22 and 24 of the Government's Decree No. 061 2008/ND~CP of January 16. 2008. on 2. To impose caution or a fine between VND administrative sanctioning of violations in 50,000 and VND 100,000 on acts of violation commercial activities. specified in Clause 1 of this Article if goods are valued at between over VND 100,000 and Z.Acts or violation m goods labeling valued VND 300.000. at over VND 100,000,000 or more shall be 3. To impose a fine between VND 100,000 administratively sanctioned with the highest and VND 200,000 on acts of violation specified fine level of the highest fine bracket set for acts in Clause 1 of this Article if goods are valued at of administrative violation together with between over VND 300,000 and VND 500,000. additional sanctions and remedies of consequences spectned in Arucle 23 uf lilt: 4. To Impose a nne between VND 200,000 © VIETNAM LAW & LEGAL FORUM Issue nos 09·1 OI5eptember 2008 OFFICIAL GAZETTE 15 (GOng BaD nos557.56010ctober6. 2008) and VND 300,000 on acts of violation specified 20,000,000 and VND 30,000,000. in Clause 1 of this Article if goods are valued at 11. To impose a fine between VND between over VND 500,000 and VND 3,000,000 and VND 5,000,000 on acts of 1,(J()(),(J()(). violation specified in Clause 1 of this Article if 5. To impose a fine between VND 300,000 goods are valued at between over V NU and VND 500,000 on acts of violation specified 30,IJOO,(J()() and VND 50,000,000. in Clause 1 of this Article if goods are valued at 12. To impose a fine between VND between over VNU 1,UUU,UUU and VNU 5,000,000 and VND 7,000,000 on acts of 2,(J()(),(J()(). violation specified in Clause I of this Article if 6. To impose a fine between VND 500.000 goods are valued at between over VND and VND 700,000 on acts of violation specified 50,000,000 and VND 70,000,000. in Clause 1 of this Article if goods are valued at 13. To impose a fine between VND between over VND 2.000,000 and VND 7,000,000 and VND 10,000,000 Qll acts of 5,(J()(),000. violation specified in Clause 1 of this Article if goods are valued at between over VND 7. To impose a fine between VND 700,000 70.000.(J()() and VND 100.000,000. and VNIJ 1,UlXJ,UUU on acts of violation specified. in Clause 1 of this Articleif goods are valued at 14. To impose a fine between VND between over VND 5,000,000 and VND 10,000,000 and VND 15,000,000 on acts of 1O,(J()(),OOO. vtclatton specrneutn Clause 1 of tnts Article it goods are valued at over VND 100.000,000. 8. To impose a fine between VND 1,000,000 and VND 1.500.000 on acts of violation 15. Fine levels specified in Clauses 1 I.hru 14 specified in Clause 1 of this Article if goods of this Article will double in the following cases: are valued at between over VND 10,000,000 afFrauds are cormnitted by goods producers, and VND 15,000,000. processors. assemblers. bottlers. canners. fillers and packagers; 9. To impose a fine between VND 1,500,000 and VND 2,000,000 on acts of violation bl Goods and services on the list of goods spectfted ill Clause 1 uf this Article if goods and services subject to price valorization are valued at between over VND 15,000,000 according to law. and VND 20,000,000. 16. Additional sanctions and remedies of 10. To impose a fine between VND consequences: 2,000,000 and VND 3,000,000 on acts of aJ Compelling compensation for damage to violation specified in Clause 1 of this Article if customers for violations specified in this Article, goods are valued at between over VND confiscating money amounts earned from frauds G VIETNAM LAW & LEGAL FORUM 16 OFFICIAL GAZETTE Issue nos ()9.101September 2008 (C6ng BaD nos 557-56O/October6. 2008) for remittance into the stare budget when it is cl Presidents of provincial-level People's impossible to identify customers for Committees may administratively sanction acts compensation; of violation specified in this Decree in localities hi Depriving of the right to use business under Article 30 of the 2002 Ordinance on eligibility certificates and all kinds of granted Handling of Administrative Violations. business licenses for up to 12 months, or 2. Sanctioning competence of market depriving of the right to use such certificates or management bodies licenses fo.r an indefinite time of more than 12 Competent persons of market management months for repeated violations or recidivism, bodies specified in Article 37 of the 2002 for violations specified in this Article. Ordinance on Handling of Administrative Violations may administratively sanction acts of Chapterlll violation specified in this Decree in localities SANCTIONING COMPETENCE AND undertheir managementand acts of administrative PROCEDURES violationin goods and servicemarketprices under the Government's decree on sanctioning of administrative violations in pricing.

Article 14.- Sanctioning competence 3. Administrative sanctioning competence of 1. Sanctioning competence of People's police, customs, border guard, coast guard and Committees of all levels branch inspectorate bodies aJ Presidents at commune-level People's aI Chiefs of district-levelpolice offices, heads Committees may administratively sanction acts of provincial-level investigative police sections of violation prescribedin thisDecree inJocalities for economic management order- and position- under Article 28 or rne 2002 Ordinance on relatedcrimes, directorsof provincial-levelpolice Handling.of Administrative Violations and the offices and the directorof the InvestigativePolice 2008 Ordinance Amending and Supplementing Department for Economic Management Order- a Numbe-r of Articles of the Ordinance on And Position-Related Crimes may Handling of Administrative Violations. administratively sanction acts of violation bl Presidents of district-level People'S specified in this Decree in localities under their Committees mayadministratively sanction acts management according IOClauses 4, 5, 6 and 7, of violation specified in this Decree in localities Article 31 of the 2002 Ordinance on Handling under Article 29 of the 2002 Ordinance on of Administrative Violations and the 2008 Handling of Administrative Violations and the Ordinance Amending And Supplementing it 2008 Ordinance Amending and Supplementing Number ofArticles of theOrdinanceon Handling a Number of Articles of the Ordinance on of Administrative Violations. Handling uf AanuursuuuVI: vtotanuus. hi Competent persons ot branch inspectorates © VIETNAM LAW & LEGAL FORUM Issuenos 09-101September 2008 OFFICIAL GAZETTE 17 (r.fJno Ran n(J,~ .~fi7-.1(j()10r.InhP.rfi. ?OOR) may administratively sanction acts of violation Article 16.- Procedures for sanctioning, "pt'r.ifipri in this Ot>£:TPP in Inr:1litip" :-lnd dom:-l;n<.: handling material evidence and means used in under branches' management according to administrative violations and implementing

Article 38 of the 2002 Ordinance on Handling sanctioning decisions of Administrative Violations and the 2008 Ordinance Amending and Supplementing a I. Procedures for administrative sanctioning, Number ofArticles ofthe Ordinance onHandling handling material evidence and means used in of Administrative Violations. administrative violations and implementing administrative sanctioning decisions comply cl Competent persons of the Border Guard, with the 2002. Ordinance on Handling of Coast Guard and Customs may administratively Administrative Violations and the 2008 sanction acts of &muggling or illegally Ordinance Amending and Supplementing a transporting goods across the border specified Number of Articles of the Ordinance on in this Decree in localities and domains under Handling of Administrative Violations. thpir management according to ArtieIes 32, 33 and 34 of the 2002 Ordinance on Handling of 2, The pricing of goods involved and Administrative Violations and the 2008 material evidence and means used in Ordinance Amending and Supplementing a administrative violations which serves UG a basis Number of Articles of the Ordinance on for determining fine levels and sanctioning Handling of Administrative Violations. competence for administrative violations comply with Article 63 of the Government's

Article 15.- Principles for determining Decree No. 06/200S/ND-CP of January 16, sanctioning competence and authorization 2008, on administrative sanctioning of 1. Principles for determining competence of violations in commercial activities. administrative sanctioning are set underArticle 42 of the 2002 Ordinance on Handling of Article 17.- Application of measures to stop Administrative Violations and the 2008 administrative violations and ensure Ordinance Amending and Supplementing a administrative sanctioning Number of Articles of the Ordinance on The application of measures to stop Handling of Administrative Violation" administrative violations and ensure 2. Authorization of administrative sanctioning administrative sanctioning comply withthe2002 complies with Article 41 of the 2002 Ordinance Ordinance on Handling of Administrati ve UII Hamlling of Admtntstrauve vtotauons and The vlclauons and the ZOOS Onttnance Amenctng and 2008 Ordinance Amending and Supplementing Supplementing a Number of Articles of the a Number of Articles of the Ordinance on Ordinance on Handling of Administrative Handling of AWIllIlb;11 ative Violations. Violations. © VIETNAM LAW & LEGAL FORUM 18 OFFICIAL GAZETTE Issue nos 09-1 OfSeptember 2008 (Gong B8.onosaj(~1i, 2OOIj) Chapter IV failing to handle or untimely handling violations; imposing sanctions not according to COMPLAINTS, DENUNCIATIONS AND competence, not on proper persons or not for HANDLING OF VIOLATIONS proper acts of violation; applying improper forms andlevels of sanctton anaother measures;

Article 18.- Complaints, denunciations and appropriating or illegally using money, goods, their settlement material evidence and means of violation; or 1. Indtviduals may denounce with competent obstrucung lawful circulation of goods causing state agencies acts of administrative violation damage to traders, shall, depending on the specified in this Decree committed by nature and severity of their violation, be uIgauiL.aliulIl> Of lncli'vicluals VI Jllegal acts disciplined or examined for penal liability and committed persons competent for compensate for damage according to law. administrative sanctioning. Chapter V 2. Organizations and individuals subject to administmtive sanctioning or measures to stop IMPLEMENTATION PROVISIONS administrative violations or their lawful represemmives may lodge complaints about Article20.- Implementation effect administrative sanctioning decisions or decisions 1. This Decree takes effect 15 days after its on application of measures to prevent publication in "CDNG BAD," administrative violations according to the law on 2. To annul all previous provisions which complaints and denunciations or initiate lawsuits are contrary to this Decree. at competent courts according to the law on procedures tor settlmg admrrustratrve lawsuits. Article 21.- Implementation responsibilities 3. The order, procedures, time limits and 1. The Minister of Industry and Trade shall competence to lodge and settle complaints and guidc and organize the implementation of this denuncietmas about administrative sanctioning Decree. comply with the law on complaints and denunciations and settlement thereof. 2. Ministers, heads of ministerial-level agencies, heads ofgovernment-attached agencies

Article 19.- Handling of violations and presidents of provincial/municipal People's committed by persons with administrative Conunittees shall implement this Decree. sanctioning competence Persons with administrative sanctioning On behalf ofthe Government C01111JCtence under this Decree who commit acts Prime Minister of causing troubles or tolerating, covering up, NGUYEN TAN DUNG © VIETNAM LAW & LEGAL FORUM