Order No. 14/2007/L-CTN on the promulgation of the Law on Product and Goods Quality

Article 2.~ Subjects of application referred to as producers), import (below referred to as importers), export (below referred to as This Law applies to organizations and exporters), sale or service provision activities individuals producing or trading in products or (below referred to as sellers). goods and organizations and individuals conducting activities related to product and goods 7. Organizations and individuals involved in quality in Vietnam. productand goods quality-relatedactivities mean consumers, conformity evaluationorganizations,

Article 3.-lnterpretation of terms professional organizations, consumer interest- prvl:c<,;tiJlg olgani.Z<ltions, supervision .agencies and In this Law, the tenus below are construed as state management agencies in chargeof product follows: and goods quality. 1. Product means the output of a production 8. Conformity eva-luation ofgdn.il,<\tton mean:') or service provision process for a commercial or an organization which tests,inspects,v.wifies and consumption purpose. certifies the conformity of products, goods, 2. Goods means productsput on themarket or production or service provision processes with fOTconsumption through exchange, sale or announced applicable standards or relevant marketing. technical regulations. 3. Products and goods incapable of causing 9. Designated conformity evaluation unsafety (below referred to as group-I products organizationmeans an organizationwhichmeets and goods) mean those products and goods which, the conditions set in Clause 5, Article 25 of this under rational conditions of transportation, Law and is considered and put on a list storage, preservation and usc for prop;::r purpoSCI'i, promulgated by 11 competent stale agency for cause no harms to humans,animals, plants, assets production and business organizations and or the environment individuals to select and use its conformity evaluation services to meet state management 4. Products and goods capable of causing requirements. unsafety (below referred to as group-2 products and goods) mean thoseproductsand goods which, 10. Test means to conduct technical under rational conditions of transportation, manipulations to identify one or properties of storage,preservation and usefor properpurposes, products and goods according to a certain can latently cause harms to humans, animals, process. plants, assets or the environment. 11.Inspect means to examine the conformity 5. Product andgoods quality means theproduct of products and goods with contracts or @ VIETNAM LAW a LEGAL FORUM 50 OFFICIAL GAZETTE Issue nos 03.()5/January 2008 (Gong beo nos £.I-'t.81January 13, llJUli) announced applicable standards or relevant 17. Documents accompanying products or technical regulations through observation and goods include confonnity evaluation results, appraisal of measurement and testresults. documents foradvertising, introducing properties, utilities or use instructions of products or goods. 12. Certify means to evaluate and attest the conformity of products, production or service Aruae 4.- Application of laws provision processes with announced applicable standards (referred to as standard conformity 1. Production and business activities as well certification) or with technical regulations as product and goods quality-related activities (referred teas regulation conformity certification). must Comply with this Law and relevant provisions oflaw. 13. Verify means to conduct technical operations in a certain process aimed at assessing 2. Production and business activities as well and attesting the products' or goods' satisfaction as activities related to the quality of products and of the requirements of relevant technical goods being construction works, services or used regulatiote. goods not subject to verification; products and goods usedexclusively for defense or security and 14. Recognition of conformity evaluation other particular ones must comply with general results means that a competent state agency, principles of this Law and be specifically governed organiza1ien or individual operating in Vietnam by other legal documents. recognizes coruonuny evaluation results gi veil by a conformity evaluation organization of another 3. When a treaty to which the Socialist Republic of Vietnam is a contracting party nation or i«ritory. contains provisions different from those of this 1.). Smre examination of product and goods Law, theprovisions of that treaty prevail. quality (below referred to as product and goods quality examination) means that a state agency Article 5.- Principles for product and goods reconsiders and reevaluates the quality of quality control products, goods or production or service provision 1.Product and goods quality shall be controlled processeswhichhave been evaluated in terms of on the basis of announced applicable standards quality byconformity evaluation organizations or andrelevant technical regulations, Depending on [Q which crherqualtty control measures have been their capability of causing unsafety, products and applied by production and business organizations goods are controlled as follows: or individuals. aJThe qualitY of zroup-I products and goods 16. Agency in charge ot state exammauon at shall be controlled on the basis of applicable product quality and goods (below referred to as standards announced by producers; product and goods quality examination agency) means an ~2f'm:y assigned or decentralized to bI The quality of group-2 products and goods perform the state control of product and goods shall be controlled on the basis of relevant quality under a line ministry or a specialized technical regulations promulgated by competent agency of the provincial/municipal People's state management agencies and applicable Committee. standards announced by producers. © VIETNAM lA.W & lEGA.l FORUM Issue nos03-DSIJanuary 2008 OFFICIAL GAZETTE 51 (C6ng BaD nos 27-2B1Jarwary 13, 2008) The Government shall specify the laws on product and goods quality; to form a sense promulgation nf a list nf grnnp-J prnrlnrt" nnrl nfprQilJlring and trading in quality products and goods. goods for consumers' interest, which save energy 2. Product and goods quality control is the and are environment-friendly; to raise social awareness aboutconsumption and build civilized responsibility of producers and traders. aimed to consumpuon habits. ensure safety for humans, animals, plants, assets and the environment and raise the productivity, 6. To encourage and create conditions for quality and competitiveness of Viemam's products domestic and foreign organizations and and gocds. individuals to invest and participate in tesung, inspecting, verifying and certifying product and 3. State control of product and goods quality goods quality. 1S the responsibility of competent state mauageruent agency, aiuicd to CUfUl\;C legal 7. To expand cooperation with other nations, provisions on product and goods quality. territories, international organizations, regional Activities of state control of product and goods organizations as well as foreign organizations and quality must ensure transparency, objectivity. no individuals in activities related to product and discrimination based on goods origin and goods quality; to enhance the conclusion of treaties organizations and individuals involved in product and agreements between Vietnam and other and goods quality-related activities, conformity countries, territories, international or regional with international practice, and protection of urganlzauous onruutual reccgnnton ofccntortrury lawful rights and interests of production and evaluation results; to encourage Vietnamese business organizations and individuals as well as conformity evaluation organizations to sign r-rmcnrnerc agreements on recognition of conformity evaluation results given by corresponding

Article 6.- State policies on product and goods organizations of other countries or territories so quality-related activities as to facilitate the development of trade between Vietnam and those countries or territoeies. 1.To encourage organizations and individuals to formulate and apply advanced standards to Article 7.- Product and goods quality prizes products and goods as well as the management 1 Product and goods quality prizes include and admlnlstranon of production and business. national prizes and prizes awarded by 2, To formulate national programs on raising organizations or individuals. the productivity, quality and competitiveness of 2, Conditions and procedures for consideration products and goods. and award of national quality prizes are provided 3. To invest in and develop the testing system for by the Government. to meet the requirements of production, business 3. Conditions and procedures forconsiderati.on awl stare control of'pnxlucr and goods quality. and award of product and goods quality prizes of 4. To enhance training and retraining of human organizations and individuals are provided. for by resources for product and goods quality control. the Ministry of Science and Technology. 5. To propagate and disseminate policies and Article 8.- Prohibited acts © VIETNAM LAW & LEGAL FORUM 52 OFFICIAL GAZETTE Issue nos03-0S/January 2008 (COng Baa nos 27·201January 13, 2000) 1. Manufacturing products, importing, selling goods with raw materials ormaterials banned from or purchasing goods banned from circulation by use for the production or processing of those the State. products and goods. 2. Manufacturing products, importing, 12. Abusing one's positions or powers or the l".xpmtinj!. sening. purchasing, exch~mgi.ng or state control of product and goods. quality to marketingproducts or goods which fail to comply illegally obstruct, trouble or harass production and with relevant technical regulations. businessactivitiesof organizations and individuals or cover up acts of violation of the law on product 1 Tmpnrtine, ~xpnrtine, .;;pJline nrpllrr.h:l<;;ne aud goofs quality. goods of unclear origin. 13.Abusing product and goods quality control 4. Importing, exporting, selling, purchasing activities to cause harms to national interests, g.-v:w:t<;., pl/;::-h:mgi"e nr m:1Tk-PJine prn.-lnrt<;. nr gooch:; MJl.ial UUJt:1 and safety. of which the use duration has expired. 5. Using foods or pharmaceuticals of poor Chapter II quality oc with p:-.::pired use duration foe charity RIGHTS AND OBLIGATIONS OF purposes or donation. ORGANIZATIONS ANDINDIVIDUALS TOWARDS PRODUCTANDGOODS 6. Deliberately supplying untrue or forged results of testing, examination, inspection, QUALITY verification andcertification ofproduct and goods Section 1. RIGHTS AND OBliGATIONS OF quality. PRODUCTION AND BUS1NESS 7. Forging or illegally using standard- or ORGANIZATIONS AND INDIVIDUALS regulation-conformity stamps or other signs of product and goods quality. Article 9.- Rights of producers 8. Repbcing, fraudulently exchanging, adding 1. To decide on and announce the quality of orreducing ingredients or additives of, or mixing products they manufacture or supply. impurities with products and goods, thus reducing 2. To decide on internal control measures in their quality compared with announced applicable order to ensure product quality. standards or relevant technical regulations. 3. To select appropriate evaluation 9. Giving untruthful information or organizations far testing, verifying, inspecting and advertise-ment or committing fraudulent acts certifying product and aoods quality. related to product and goods quality or goods origin. In case of certification of regulation conformity, examination of product quality 10. Concealing information on the products' according to state management requirements, and goods' capability of causing unsafety to producers shall select designated conformity humans, animals, plants, assets or the evaluation organizations. environment. 4. To use standard- or regulation- conformity 11.Manufacturing or processing products and stamps and other signs for products according to © VIETNAM LAW & LEGAL FORUM Issue nos 03·05/January 2008 OFFICIAL GAZETTE: 53 (G6ngBao nos 27-28/Jtll1uCJI)I 13, 2008) law. detecting that products or goods cause unsafety or fail to conform to announced applicable :5. TO request sellers to cooperate in the standards or relevant technical regulations. withdrawal and handling of goods ofpoor quality. 6. To complain about conclusions of 9. To withdraw and handle products and goods exannuauon reams UI' t1t'i.:bjum; of exammauon of poor quality. If the goods must be destroyed, to agencies or competent state management bear all costs of goods destruction and be liable agencies. for its consequences in accordance with law. 7. To be e;1I11Lk:u Lu compcusariou under the; 10. To pay compensation underthePJ'-Ovisions provisions of Section 2, Chapter V of this Law of Section 2. Chapter V of this Law and relevant and relevant provisions of law. provisions of law. 11 Tn oh<:;p,rvp, r-omperenr state agenc.ie.s'

Article 10.- Obligations ofproducers regulations and decisions On inspection and 1. To observe the conditions for ensuring the supervision. quality of products before they are put on the I:> To P~IY ('0<:;1<:; of resting, standard- or market according to Article 28 of this Law and regulation- conformity certification according to take responsibility for products they manufacture.

Article 31; sample-taking and testing costs 2. To display quality information on goods according to Article 41; sample-taking, testing and labels. packings or in documents accompanying mspecuon costs according to Article )~ or this goods in accordance with legal provisions on Law. goods labeling. 13. To prove wrong results and faults of J. '10 supply truthful mtormauon on product conrorrmty evaluation organizations according to andgoods quality. Clause 2,Article 63 of this Law. 4. To warn about the products' capability of Article 11.· Rights of importers causing unsatety and notify prevennve methods to sellers and consumers. 1. To decide to select the level of quality of goods they import. 5. To announce the requirements on transportation, storage, preservation and use at 2. To request exporters to supply goods of products and goods. proper quality as agreed upon in contracts. 6. To supply purchasers and consumers with 3. To select inspection organizatiorrsto inspect mformatton on warranty and warranty services the quality of goods they import. for products and goods. 4. To use standard- or regulation-conformity 7. To repair, refund money or exchange for stamps and other signs for imported goods new goods or receive back detective ones which according to regulations. arc returned by sellers or consumers. 5. To decide on internal control measures in 8. To promptly SLOp production, notify such to order to maintain thequality ofproducts andgoods concerned parties and take remedies when they import. © VIETNAM LAW & LEGAL FORUM 54 OFFICIAL GAZETTE Issue nos 03.Q5IJanuary 2008 (Gong ado nos 27·28/,Jafluaty 13, 2008} 6. To request sellers to cooperate in detecting that the goods cause unsafety or fail to withdrawing and handling goods of inferior conform to announced applicable standards or quality. relevant technical regulations. 7. To complain about conclusions of quality 10.To re-export imported goods which fail to controllers or examination teams,or decisions of conform to relevant technical rezulations. examination agencies or competent state 11. To destroy imported goods which fail to management agencies. conform with relevant regulations but cannot be 8. To be entitled to COmpensation under the re-exported; tobear all costs of goods destruction provisions of Section 2, Chapter V of this Law and be liable for its consequences in accordance and relevant provisions of law. with law. ArliC'u. 12._ Obligations of importers 12. To withdraw and handle goods of poor quality. 1. To observe the conditions for ensuring the qualityofimported goodsaccording taArticie 34 13. To paycompensation under the provisions of this TJIW of Section 2, Chapter V of this Law and relevant provisions of law. 2. To take responsibility for the quality and labeling of goods they import inaccordance with 14. To observe competent state agencies' law. regulations and decisions on inspection and supervision. 3. To supply truthful information on product and goodsquality. 15. To pay goods quality examination costs and fees according to Article 37; sample-taking 4. To organize and control the process of and testing costs according toArticle41; sample- transportation, storage andpreservation in order taking, testing and expertise costs according to to maintain goods quality. Article 58 of this Law. 5. To announce conditions which must be

Article 13.- Rights of exporters complied with during the transportation, storage andpreservation of goods in accordance with law. 1. To decide to select the level of quality of goods they export. 6. To warn sellers and consumers about the goods' capability of causing unsafety and notify 2. To select appropriate conformity evaluation them ofpreventive measures. organizations in order to test, inspect and certify the Quality of export goods. 7. To supply information on warranty and provide warranty service to sellers and consumers. 3. To decide on internal control measures in order to maintain the quality of goods till the time 8. To repair, refund money or exchange for of transfer of ownership of those goods to new goods or receive back defective ones returned importers. by sellers or consumers. 4. To use standard- or regulation-conformity 9. To promptly stop the import, notify such to stamps and other signs for exported goods concerned parties and take remedies when according to regulations. © VIETNAM LAW & LEGAL FORUM Issue nos03-0S/January 2008 OFFICIAL GAZETTE 55 (CUIl!:J BdU 1105 27-261JilfluilIY 13, 2008) 5. To request importers to cooperate In 4. To settle disputes under the provisions of withdrawing and handling goods which fail to Section L Chapter V of this Law and request ensure the quality as agreed upon. producers or importers that have supplied goods to pay compensation for damage according to 6. To complain about decisions of examination Clause 1,Article 61 of this Law, agencies or competent state management agencies. 5, To complain about conclusions of quality controllers, examination teams and decisions of 7. To be entitled to compensation under the examination agencies or competent state provisions of Section 2, Chapter V of this Law management agencies. and relevant provisions of law. 6. To be entitled to compensations under the

Article 14.- Obligations of exporters provisions of Section 2, Chapter V of this Law aud relevant plUV isious uflaw. 1. To observe the conditions for ensuring the quality ofexported goods according toArticie 32 of this Law and take responsibility for goods Arlicle 16.- Obligations of sellers quality. 1. 10 observe tile conditions for ensuring the 2. To take measures for handling exported quality of goods circulated on the market goods which fail to comply withArticle33 ofthis according to Article 38 of this Law and take Law If the goods must be destroyed, to bear all responsibilitv for goods Quality. costs of goods destruction and take responsibility 2, To check the origin of goods, goods' labels, for its consequences in accordance with law. standard- or regulation-conformity stamps and 1 Tn rnmrty with competent state agencie!>' documents related to goods Quality. regulations and decisions on inspection and 3. To supply truthful information on product supervision. and goods quality. 4. To pay costs of II""'ting anri srandatri- or 4. To apply measures ro ruaintalu the quality regulation-conformity certification according to of goods during their transportation, storage and

Article 31; sample-taking and testing costs preservation. according to Article 41 and sample-taking, testing and inspection costs according Article ~8 of this 5. To notify purchasers of ccudltlons tu be Law. ensured during the transportation, storage. preservation and use of goods.

Article 15.- Rights of sellers 6. Tu supply pUldidSCIS with iufonaauou UII 1.To decide onmodes of examination of goods goods warranty. quality. 7. To supply documents and information on 2. To select approprtate evajuatlon goous subject LU exaunuauuu LO quatny organizations for testing and inspecting goods. controllers, and product and goods quality examination teams and agencies. 3. To decide on internal control measures in UIUt;l tu maintain goods quality. 8. To promptly supply purchasers with © VIETNAM LAW & LEGAL FORUM 56 OFFICIAL GAZETTE Issue nos03-0S/January 2008 (Gong Dao noo 27·28/Jemuary 13, 2000) information on the goods' capability of causing 3. To request sellers to repair, refund money unsafetyand preventivemeasures uponreceiving for, exchange or receive back defective goods. warnings from producers or importers. 4. To be entitled to compensations under the 9.Topromptly stopselling goodsandnotifying provisions of Section 2, Chapter V of this Law producers. importers and purchasers when and relevant provisions of law detecting unsafe goods or goods which fail to 5. To request organizations and individuals conform to announced applicable standards or producing and/or trading in goods to fulfill their relevant technical regulations. responsibility for the protection of consumer 10. To refund money or exchange goods for interests according to the law on protection of new oneaor receive back defective goods returned consumer interests. by purchasers. 6. To request consumer interest-protecting 11. 'Ibcooperate withproducersand importers organizations to protect their lawful interests in withdrawing and handling goods which fail to according to the law on protection of consumer conform to announced applicable standards or interests. relevant technical regulauons. Article 18.- Obligations of consumers 12.Topay compensationunder the provisions 1. To observe the conditions for assurance of of Section 2, Chapter V of this Law and relevant good quality in the course of using goods provisions uf law. according to Article 42 of this Law. 13.Tocomply with competent state agencies' 2. To comply with producers', importers' and regulations and decisions on inspection and sellers' regulations and instructions on the supervision. transportation, storage, preservation and use of 14. To pay sample-taking and testing costs products and goods. according to Article 41, and sample-taking and 3. To comply with regulations on verification inspection COStS according Article 58 of ttns Law. of the quality otproducts and goods quality in the process of using those on the lists issued by line Section 2. RlGHTSAND OBLlGATlONS OF ministries. CONSUMERS 4. To observe legal provisions on environmen- tal protection in the process ofusing products and

Article 17.- Rights of consumers goods. 1.Th OC: supplied with u uuuul rnronnauon Ull Section 3. RlGHTSAND OBUGATlONS OF the safety and quality of products and goods and CONFORM1TYEVAWAT10N provided with instructions on their transportation, ORGAN1ZATlONS AND CONSUMER storage, preservation and use. INTEKEST-YKOTECTING 2. To be supplied with information on warranty ORGAN1ZATlONS for goods, their capability ofcausing unsafety and preventive measures upon receiving warnings Article 19.- Rights of conformity evaluation from producers or importers. organizations © VIETNAM LAW & LEGAL FORUM Issue nos 03·05/January 2008 OFFICIAL GAZETTE 57 (Gong Dcia nos 27-2D1January 13, 2000) 1. To test, inspect, verify and certify product 2. Not to refuse to supply services unless they and goods quality on the basisof contractssigned can give plausible reasons. with organizations and individuals requesting 3. To keep secret conformity evaluation conformity evaluationin theirregisteredoperation information, data and results of organizations domain or under designation by competent state agencies, subject to conformity evaluation. unless they are requested by competent state agencies. 2. To get paid according to agreements with organizations or individuals producing and/or 4. To ensure publicity, transparency, trading in products and goods that request independence. objectivity. accuracy and no conformity evaluation or at the request of discrimination based on goods origin and competent state agencies. organizationsand individualsconductingproduct and goods quality-related activities. 3. To supply testing results to corresponding subjects of conformity evaluation. 5. To ensure the conformity evaluation order and procedures according to the law on standards 4.Togrant, re-grant,expand, narrow thescope and technicalregulations. Of suspend and withdraw conformity evaluation certificates, theright to usestandard-or regulation- 6. To announce on the mass media the grant, conformity stamps already granted to re-grant,expansion, narrowingdown of the scope, corresponding subjects of verification or suspension orrevocationof conformitycertificates certification. and the right to use standard- or regulation- conformity stamps. 5. To refuse to supply information related to goods-quality test, inspection, verification and 7. To be subject to supervision or inspection certification results to third parties, unless it is of their conformity evaluation activities by requested by a competent state agency. competent state agencies. 6. To have their conformity evaluation results 8. To take responsibility before law for recognized by competent state agencies in contorrruty evaluation results. accordance with law. 9. To payfines toorganizations and.individuals 7. To collect costs of test and certification of with evaluated products and goods in case of standard or regulation conformity according to supplying wrong conformity evaluation results.

Article 31; charges and fees for examination of Fine levels shall be agreed upon by concerned the qualityof importedgoods according toArticle partiesbut mustnot exceed 10 timestheevaluation 37; testing costs according to Article 41; and cost; if concernedpartiescannot reachagreement, testing and inspection costs according to Article fine levelsshallbe decidedby arbitration or a court 58 of this Law. but must not exceed 10 times the evaluation cost. 10. To pay compen sari on according to Clause

Article 2U.- Obhganons of conformity I, Article 63 of this Law. evaluation organizations 1. To meet the conditions set in Clause 5, Article 21. - Rights and obligations of

Article 2::; of this Law. professional organizations © VIETNAM LAW & LEGAL FORUM 58 OFFICIAL GAZETTE Issue nos03·051JanuaIY 2008 (Cong Bdo nos 27-281J~nudty 13, 2000) 1.Topropagate anddisseminate to production and supply this infonnation to mass media and business organizations and individuals agencies, and concurrently take responsibility for knowledge about the application of the law on their supplied information. product and goods quality; to fonn a sense of 3. To propose supervision and inspection responsibility for producingand tradingin quality agencies or competent state agencies to handle products and goods for consumer interests, which production and business organizations for their saveenergyandare environment-friendly; to raise violations related to product and goods quality. social awareness about consumption, form civilized consumption habits. 4. To lodge complaints or initiate lawsuits about the quality of products or goods which cause 2. To support, and raise the awareness of, harms to consumers. productrcn and business organizations and individuals about and encourage them to apply 5. To provide guidance and advise on the law 00 product and goods quality. consumer interests related to product and goods quality. 3. To organize training and retraining in the modes of product and goods quality control and C/uJpter III social debate inthecontrol of product andgoods CONTROL OF PRODUCT AND GOODS quality. QUALITY IN PRODUCTION, IMPORT, 4. To comment on draft legal documents on EXPORT, CIRCULATION ON MARKET, productand goods quality. AND USE 5. To lodge complaints or initiate lawsuits Section 1. GENERAL PROVISIONS ON concerning disputes over product and goods MEASVRIlS FOR PRQDVCT AND GOODS quality which cause harms to their or their QUAUTY CONTROL members' interests.

Article 23,- Announcement of applicable A"I'til'll' ))__ Rieht<:. :lntl oh1ieMion<:. of standards consumer interest-protecting organizations l. Producers and importers shall announce 1. To represent consumers in protecting their fundamental properties, warning information and lawful rights and interests when receiving standard codes on goods ononeof therouowtng: complaints or reports on the quality of goods which fail to conform to announced applicable aJ Goods packings; standards, relevant technical regulations, the bl Goods labels; quantity indicated on goods' labels or the quality cl Documents accompanying products or prescribed in contracts. goods. 2. To receive information relating to 2. Contents ofannounced applicable standards organlz.ations and imlivil1uah plUuul,:iJlg must not be contrary to the requirements under unconformable products or trading in technical regulations promulgated by competent unconformable goods, the degree of the goods' state agencies. non-conformity with announced applicable standards or corresponding technical regulations, Article 24.- Announcement of conformity © VIETNAM LAW & LEGAL FORUM Issue nos 03·0S/January 2008 OFFICIAL GAZETTE 59 (Cully Bciu IIU::; 21-281Ji:Jllualy 13, 2008) 1. Producers shall announce their products' designated verificationorganizations. conformity with the set standards(below referred to as standard-conformity announcement) or with 5. Conformity evaluation organizations must technical regulations (below referred to as meet the following conditions: regulation-conformityannouncement). aJ Being duly organized and capable to meet 2. Announcement of standard- or regulation- general requirements under relevant national or conformity must comply with legal provisionson internationalstandards; standards and technical regulations. hi Establishing and maintainingan appropriate managementsystemconforming to requirements

Article 25.- Conformity evaluation underrelevantnationalor international standards; L Test is prescribed as follows: cl Registering the field of conformity aJ Test in service of operations of production evaluation with a competent state agency. and business organizations and individuals is conducted according to agreements with testing Article 26.- Recognition of conformity organizations; evaluationresults bl Test in service of state management is 1.Recognition of conformity evaluationresults conducted at designated laboratories. betweenorganizations and individualsin Vietnam 2. Inspection is prescribed as follows: and others in foreign countries or territories shall be agreed uponby concerned parties. aJ Inspection for commercial purposes is conducted by inspectionorganizationsaccording 2.Recognition ofconformityevaluationresults to agreements with organizations or individuals in service of state management complies with that request inspection; treaties to whichtheSocialistRepublicof Vietnam b/lnspection in service of state management is a contractingparty or internationalagreements is conducted by designated inspection to whicha competentstateagency of the Socialist oigauizauons. Republic of Vietnam is a signatory. 3. Certification is prescribed as follows: Article 27.- Examinationof productand goods al Standard-conformity certification is quality conducted according to agreements between 1. Examination of product q uality III organizations or individuals requesting production covers the following content'S: certification and certification organizations; bl Regulation-conformity certification is aJ Examining the application of remrirements conducted by designated certification under technical regulations related to conditions organizations. of production processes and measures for state control of production quality; 1. Verification 13 prescribed as follows: b! Examining conformity evaluation results, al Verification includes periodical and goods labels, standard- or regulation-conformity extraordinary verification. stamps and documents accompanying products bl Vcrific.ation must be, couduc.ced by l>ulJjc:utu exuruiuadou, © VIETNAM LAW & LEGALFORUM 60 OFFICIAL GAZETTE Issue nos 03·0S/January 2008 (Gong Btionos 27-2D1JtlnIlMY 13, 2008) cI Testing samples according to announced to the law on goods labeling; applicable standards or relevant technical cI To opt for conformity certification and regulations, when necessary. announce standard conformity for group-l 2. Examination of goods quality in import or products; circulation on the market covers the following d1To comply with technical regulations related contents: to the production process, certification of aJ Examining conformity evaluation results, regulation conformity and announcement of goods labels, standard- or regulation-conformity regulation conformity according to relevant stamps and documents accompanymg products It:dllliLal regulauous appttcabte LU gruup-2 or goods subject to examination; products. b/ Testing samples according to announced 2. The assurance of quality of products of applicable ctundardt: or rc.lcvunt technical amnll sized production and business before tlicy regulations when necessary. are put on the market complies with regulations of line ministries. 3. Examination of product andgoods quality is conducted hy product and goods quality

Article 29.- Examination of product quality examination agencies specified in Article 45 of in production this Law. 1. Examination of product quality in 4. The exemption or reduction of f'xaminMion production shall be conducted in one of the of the quality of products and goods for which following cases: standard- or regulation-conformity has been certified or announced or to which advanced 8f Exported goods fail to ensure the quality as control systems have been applied according to prescribed in Article: J2 of this Law, international or regional standards and certified bl Goods circulated on the market fail to comply with regulations of line ministries. conform to announced applicable standards or tt'.lt'v~nt tp,rhnir.:ll rrit",ri,.. specified in Clause 3, Section 2. CONTROL OF PRODUCT Article 40 of this Law. QUALfTYIN PRODUCTION 2. Examination of product quality in Artic/Q 28.- Conditions for ensuring the quality production shall be conducted hy product and of products in production before they are put on goods quality examination agencies in the form the market of inspection team according to Article 48 of this Law. 1. Producers must abide by requirements on product quality control in production as follows: 3. The order and procedures for examination of product quality in production are prescribed as aI To apply control systems in order toensure follows: that the Quality of their products conform to announced applicable standards or relevant 8f Producing the examination decision; technical regulations; bl Conducting examination according to the blTo announce applicable standards according contents specified in Clause J, Article 27 of this toArticle 23 of this Law and label goods according Law; © VIETNAM LAW & LEGAL FORUM Issue nos 03·0S/January 2008 OFFICIAL GAZETTE 61 (GOng Beanos 21-2fJ1January 13, 2008) cI Making an examination minutes; results on the mass media, suspend the production dJ Notifying producers and reporting to of unconformable products and propose a product and goods quality examination agency competent state agency to handle violations in of the examination results; accordance with law. el Handling violations according to Article 30 Article 31.- CO~>t3 of tcating and certification of this Law. of standard or regulation conformity

Article 30.- Handling of violations in the Producers shall pay costs of testing and pn:wf'SS of f'](}lminMion of proouct quality in certification of standard or regulation conformity production under agreements with testing organizations or organizations certifying standard or regulation 1,Through the examination of product quality conformity in production. if a producer is detected to fail to comply with requirements ofarmounced applicable Section 3. CONTROL OF EXPORTED standards or relevant technical regulations for GOODS'QUAUTY products and conditions related to the production process, the producer shall be handled as follows: Article 32.* Conditions for ensuring exported afThe examination team shall ask the producer goods' quality to take remedies or repair the products to ensure 1. Goods exporters must ensure that exported their quality before they arc put 011 the market; goods comply with regulations of importing bl If the producer continues committing countries, contracts or international treaties or violations despite the examination team's request, agreements on mutual recognition of conformity the product and goods quality examination agency results with related countries or territories. shall, within 7 working days after making conclusions on violations of the production and 2. Producers must apply relevant technical business organization or individual, announce on regulations to the production process orform and the mass media (he name and address or the apply by themselves control systems in order to producer, the appellations of unconformable ensure the quality of their products. products and the extent of their unconformity;

Article 33.- Measures to handle exported cI If the producer still commits violations after goods which ran ro meet expon conceons his/her/its name is announced on the mass media, the goodsand product quality examination agency For goods which fail to meet the export shall propose a competent state agency to handle conditions specified in Clause 1,Article 32 of this Violations III accordance WIth law. Law, and therefore, cannot be exported or are returned, the goods and product quality 2. During the examination of product quality examination agency shall, depending on the nature in production, if testing results show that products and severity of violations, apply one or several of are uncoufurmable with announced applicable the following handling measures: standards or relevant technical regulations, threatening the safety or people, animals, plants, 1. Taking measures to examine product quality assets or the environment, the goods and product in production according to the contents specified quality examination agency shall announce those in Clause 1 of Article 27 and the order and © VIETNAM lAW & lEGAL FORUM 62 OFFICIAL GAZETTE Issue nos03·05JJanuary 2008 (Gong Bao nos 27-281Jalluary 13, 2008) procedures specified in Clause 3, Article 29 of and proceduresspecifiedinArticle35 of thisLaw. this Law with regard toexport goods which fail to ensure theirquality, thus affectingthe national Article 35.- Order and procedures for interests and prestige. examinationof imported goods' quality 2. Allowing the circulation of goods on the 1. Product and goods quality examination market if their quality conforms to relevant agencies shall conduct examination according to technical regulations of Vietnam. the following order and procedures: 3. Requesting producers to remedy or repair aJ Receivingimporters' dossiersof registration goods sothat they may continue to be exported or tor quality examination, eachcomprisinga written circulated on the Vietnamese market after registrationof quality examination, a copy of the sarisfying televanr technical regulations. authenticatedquality certificate,related technical rlnrnmpnt", ~ ropy of th.,. ... ale- and purchase 4. Proposingcompetentstateagencies to issue contract and a list of goods accompanying the destruction decisions. contract; hi Considering the validity and completeness Sectio1l4. CONTROL OF IMPORTED of examination registration dossiers upon their GOODS'QUALITY receipt from importers;

Article 34.- Conditionsforensuring imported c/ Conducting examination according to the goods' quality contents specified in Clause 2, Article 27 of this Law; I. Imported goods must have their applicable standards announced according to Article 23 of d1Notifyingexamination resultsto importers, this Law and be labeledaccording to the labeling cerurytng that me goods meet {he quality law. requirements so thattheycan proceed withimport procedures at customs agencies; 2, Imported group-2 goods must be announced e/Handling violations during the examination in terms of regulationconformity and certified in according to Article 36 of this Law. terms of conformity with relevant technical regulations related to the production process and 2. Based on the provisions of Clause 1 of this end prorlucts by designated or accredited Article. lineministries shall specify the order and certificationorganizations according toArticle26 procedures for examination of imported goods of this Law. which fall within their assigned management competence defmed in Clause 5 of Article 68, 3. When imported, group-2 goods which fail CIi;l.U~ 4 of Arucle 69, and Clause 2 of Article 70 to comply with Clause 2 of this Article must be of this Law. inspected at the border gates of export or import by designated or accredited inspection Article 36.- Handling of violations during orgaruzauons. examination of imported goods' quality 4. When imported, group-2 goods must have I. For goods having certificatesof conformity quality examined according to the contents evaluation results but failing to meet the specified in Clause 2 of Article 27 and the order requirements on labeling,standard-or regulation- © VIETNAM LAW & LEGAL FORUM Issue nosOJ-OS/January 2008 OFFICIAL GAZETTE 63 ("1;0119 sao OOS 21-26fJanUarj 13,2008) conformity stamps, product and goods quality examination of imported goods' quality. examination agencies "hall request importers to remedythembeforemaking certification forthose Section 5. CONTROL OF QUALITY OF importers to carry out import procedures at GOODS CIRCULATED ON THE MARKET customs agencies. Arlick 38.- Conditions for-ensuring the quality 2. If goods meet labeling requirements but of goods circulatedon the market having no certificates of conformity evaluation Sellersof goodscirculatedon themarket must results, product and goods quality examination meet the following requirements nn management agencies shall request importers to select one of of goodsquality: designated or accreditedinspection organizations to conductevaluation and grant importcertificates 1. Toobserverelevanttechnical regulations in at the border gates of import or export. the process of circulation of goods or apply by themselves quality control measures in order to 3. If goodsqualitytesting or inspection results maintain the quality of goods they sell. show thatthe goodsfail to conform to announced applicable standards or relevant technical 2. To submit to goods quality examination regulations ofVietnam, productandgoodsquality according to contents specified in Gause 2 of examination agencies shall report and propose Article 27; the order and procedures specifiedin handling measures to competent state agencies; Article 39; and the handling of violations of law uependlug onuie uauue auu severity uf \I iulatiuns specified in Article 40 of this Law. of quality control requirements, competent state agencies shall decide on compulsory re-export, Article 39.- Order and procedures for destruction or reprocessing of the goods, and at examinationof the quality of goods circelatedon the same time, notify such to customs agencies the market for coordinated handling and to importers for 1. An inspection team shall conduct implementation. examination accordingto thefollowing order and 4. After customs clearance, imported goods procedures: may be circulated on the market and subject to aJ Producingthe examinationdecisionbefore quality examination under the provisions of examination; Section 5 of this Chapter. bI Conducting examination according to the contents specified in Clause 2, Article 27 of this

Article 37.- Costs and fees of examinationof Law; importgoods' quality cl Making an examination record; I. Importers shall pay testing and inspection d/ Notifying examinationresults to the seller costs as agreed upon with quality testing or andreporting thereon to productandgoodsquality inspectionorganizations. examinationagency; 2. Importers shall pay fees for inspection of eI HandlingviolationsaccordingtoArticle 40 importedgoods' quality. of this Law. 3.The Ministry ofFinanceshallspecify levels. 2. Aquality controller shall conduct indepen- the collection and management of fees for dentexamination accordingtothefollowing order © VIETNAM LAW & LEGAL FORUM 64 OFFICIAL GAZETTE Issue nos03-0SIJanuary 20llS (COlly B(iu I/U;) 2r-281JfJllui;Jry 13,2008) and procedures: places, appellations of goods, and extent of their aI Producing the controllers card before unconformity with the set regulation!':or standards: examination; dI If the sellers continue violations despite the bl Conducting examination according to the public announcement, product and goods quality contents specified in rbll~ 7, Article- n of this examination agencies shall propose competent Law; state agencies to handle them in accordance with law. cI Making an examination record; rlI Nntifyine examination TP.<;II1t" to the seller 2. If the goods sample-testing results do not contorm to announced applicable standards or and reporting thereonto productand goods quality relevant technical regulations, depending on the examination agency; nature and severity of violations, examination eJ Handlingviolations undertheprovisionsof reams or 'lll:llity contrnllpr<: <:h"lll :lpply thp

Article 40ufthis Law. following handling measures: Articte 40.- Handling of violations during the a/ Sealing the goods, not permitting the sellers examination of quality of goods circulated on the rocontinue selling the goods and within 24 hours, market reporting to product and goods quality examination agencies for handling according to 1.During theexamination of quality of goods circulated on themarket, ifdetecting that thegoods their competence; fail to meet therequirements on labeling, standard- bl Requesting sellers to contact producers or or regulaaon-conformity stamps, quality control importers in order to take remedies or repair the measures under relevanttechnicalregulationsand goods; conditions related to the production process, c11f sellers continue violations or the goods examination teams or quality controllers shall which are unconformable to announced applicable handle violations according to the following steps: standards or relevant regulations threaten the aI Requesting 3CIICr3 to auapcnd thc oelc of unfery of humans, animnln, plants, cccetc or the goods and report thereon within 24 hours to environment, product and goods quality product and goods quality examination agencies examination agencies shall announce on the mass for handling according to their competence; media the names and addresses of business organizations or individuals, appellations of the bI Requesting sellers to contact producers or goods, and extent of their unconformity with the importers in order to take remedies, or repair the set regulations or standards; goods; ct If the sellers continue violations, at the dI If sellers continue violations despite the request of examination teams or quality public announcement, product and goods quality controllers, product and goods quality examination agencies shall propose competent examination agencies shall, within 7 working days state agencies to handle violations in accordance with law. after obtaining conclusions on violations of production and business organizations or 3. If detecting that goods circulated on the individuals, announce on the mass media the market fail to conform to announced applicable names of the sellers, addresses of goods selling standards or relevant technical regulations, © VIETNAM LAW & GAL FORUM Issue nos 03·0S/January 2008 OFFICIAL GAZETTE 65 (Gong Beo nos 27-281January 13, 2UU13) dependingon thenatureand severityof violations, 1. Goods must be used, transported, stored, product and goods quality examination agencies preserved. maintained and cared for in accordance shall examine product quality according to the with producers' instructions. contents specified in Clause 1, Article 27 of this 2.Goods must be verifiedaccording to relevant Law. technical regulations promulgated by competent

Article41.- Costsof sample taking and testing stale management agencies. for quality examination and settlement of

Article 43.- Handling of verificationresults complaints and denunciationsabout product and goods quality 1. After being verified, goods which satisfy 1. Costs of sample taking and testing for relevanttechnical regulationsmay:further be used examination of the quality of products in in a period specified by those regulations. production and goods circulated on the market 2. If the verification shows that gcods fail to shall be paid by product and goods quality satisfyrelevanttechnical regulations, their owners examination agencies which decide on sample shall take remedies; if after remedies have been taking and testing of product and goods quality. applied, venticauon results sUB show that the Sample taking and testingcosts shall be included goods are unconformable, verifyingorganizations in operation fundestimatesof product and goods will not grant verification certificates and the quality examinationagencies. goods must not he used any more. 2. Based on testing results, if product and goodsqualityexaminationagenciesconclude that Article 44.- Fee of goods verification in the producersor sellersviolateregulationson product use process and goods quality. thoseproducersor selIcrs shall L The verification of goods in the use process pay costs of sample taking and testing of product is liable to a fee. and goods quality to product and goods quality examination agencies. 2. The Ministry of Finance shall specify the levels, collection and management of fees for 3. Incase of complaints or denunciations about goods verificationin the use process. the quality of products or goods but product and eCl0l:'ls qlla lily f'X amination ar;f'.nc1f'<; rondlldf'. IhM Chapter IV those complaints or denunciationsare wrong, the complainants or denouncers shall pay costs of EXAMINATION, INSPECTION OF sample taking and testing of product and goods PRODUCT AND GOODS QUALITY quality to productand goodsquality examination agencies. SectWn 1. EXAMINATION OF PRODUCT AND GOODS QUALITY Section 6. CONTROL OF GOODS QUALITY

Article 45.- Assignment of responsibilities IN THE USE PROCESS among product and goods quality examination agencies

Article 42.- Conditions for ensuringthequality of goods in the usc process 1. Product and goods quality examination e VIETNAM LAW & LEGAL FORUM 66 OFFICIAL GAZETTE Issue nos03-0j/January 2008 (Gong Dao nos27-28/JanuIJry 13, 2008) agencies under line ministries shall examine the according to Articles 30,36 and 40 of this Law. quality of products in production within their 4. To settle complaints and denunciations assigned scope defined in Clause 1,Article 70 of about decisions of examination teams or quality this Law and goods in import, export,circulation controllers in accordance with the law on on the market or useprocess within their assigned SlXJpt: defined ill Clause 5, AI ticle 18, and Clause complaints and denunciations. 2, Article 70 of this Law.

Article 47.- Tasksof productand goodsquality 2. Product and goods quality examination examination agencies agencies under the Ministry of Science and Within the ambit of their tasks and powers, Technologyshallexamine the qualityof products product and goods quality examination agencies in production within their assigned scope have the following tasks: prescribed in Clause 1, Article 70 of this Law as well as goods imported,exported or circulatedon 1. To identify specific categories of goods in the market and goods in the use process within order to examine their quality. theirassignedscopeprescribedin Clause4,Article 2. To work out annual examination plans to 69 of thic Law. be submitted to competent state agencies for 3. Product and goods quality examination decision. agencies under provincial/municipal People's 3.Toreceive importers' dossiersof registration Committees shall examine product and goods tor quality exammatIon. quality in their respective localitiesaccording to regulations of line ministries. 4. Tocertify conditionsfor ensuring the quality of imported goods. 4 Product and ennch: 'llW 1iry ex amina rion agencies definedin Clauses 1 and 2 of thisArticle 5. To make and submit to competent state shall coordinate with product and goods quality agencies decision on building a contingent of examinationagenciesunderprovincial/municipal quality controllers and equipping technical People's Committees and concerned agencies in facilities to meet the requirements of product and examining product and goods quality. goods quality examination. 6.Toissuehandlingdecisions within3 working

Article 46.- Powers of product and goods days after receiving reports from examination teams quality examination agencies or quality controllers on production suspension, Within the scope of their tasks and powers, sealingof goods or sale suspension. product and goods quality examination agencies 7. To ensure objectivity, accuracy, publicity, have the following powers: transparency and non-discrimination in the I. To decide on setting up examination teams examination of product and goods quality. or assign qualitycontrollersto conduct regularor extraordinary examination, 8. To keep secret inspection results pending thereleaseofofficial conclusions, information and 2. To warn about the failure to ensure product documents related to inspected production and and goods quality. business organizationsor individuals. 3.Tohandle violations during theexamination 9. To take responsibility before law for © VIETNAM LAW & LEGAL FORUM Issue nos03-0S/January 2008 OFFICIAL GAZETTE: 67 (Gong Baa no.5 27-281Janu/jry 13,2000) examination results and related conclusions. 6. To ensure the principles of objectivity, accuracy and non-discrimination while

Article 48.- Examination teams conducting examination. 1. Examination teams are set up under 7. To keep secret examination results and decisions of heads of product and goods quality information related to inspected production and examination agencies, based on the examination businessorganizations or individuals. programsor plansalreadyapprovedby competent state agencies or upon extraordinaryexamination 8. To report accurately and promptly request. examination results to the product ami goorls. quality examination agency. 2. An examination teammust haveat least50% of its members who are quality controllers. 9. To take responsibility before law for examinationresults. conclusions and the handl ing

Article 49.- Tasksand powers of examination of violations. teams

Article 50.- Quality controllers During the examinationof product and goods quality, an examination team has the following 1. Quality controllers are public employees tasks and powers: appointed to the rank of quality controller in product andgoods quality examination agencies. 1. To request production and business organizations orindividuals to produce documents 2. Criteria, mechanisms for and appointment related to products and goods according to of quality controllers shall be prescribed by the examination contents specified in Article 27 and Government. hand!e violations during the examination according toArticles 30 and 40 of this Law; when Article 51.- Tasks and powers of quality necessary, to request production and business controllers organizations or individuals to supply copies of Duringthe examination of product and goods documents specified m thts Clause. quality, quality controllers havethe followingtasks 2. To take samplesfor testingwhen necessary. and powers: 3. To seal goods and suspend the sale of 1. To request production and business unconformable goodson the marketin the process organizations or individuals to producedocuments of examination. related to products and goods according to examination contents specified in Clause 2 of 4. To request organizations or individuals

Article 27 and handle violations during the producing and/or trading in goods which fail to examination according to Article 40 of this Law; conform to announced applicable standards or when necessary, to request production and relevant technicalregulations to take remedies or business organizations or individuals to supply repair the goods. copies of documents specified in this Clause. 5. To propose.the product and goods quality 2. To seal, suspend sale of, unconformable examination agency to handle violations according to thp.ir competence pre scribed in goods on the market during the examination.

Article 46 of this Law. 3. Torequestorganizations andindividualsthat e VIETNAM LAW & LEGAL FORUM 68 OFFICIAL GAZETTE Issue nos 03·0S/January 2008 {Cong (Jao nQS 27-ZatJanuary 1J, 2008) produce and/or trade in products or goods which organizations and individuals producing and/or fail toconfonn to announced applicable standards trading in products and goods and organizations or relevant technicalregulationsto take remedies and individuals conducting product and goods or repair the goods. quality-related activities. 4. To propose product and goods Quality 2, Subject to product and goods quality inspec- examination agencies to handle violations tion are production and business organizations and according to their competence defined in Article individuals, consumers, conformity evaluation 46 of this Law. organizations, professional organizations, ooriaumc r interest-protecting organization and 5. To ensure the principles of objectivity, product and goods inspection agencies. accuracyand non-discrimination whileconducting examination. Chapter V 6. To keep secret examination results and SETTLEMENT OF DISPUTES, information related to inspected production and COMPENSATION FOR DAMAGE, business organizations or individuals. SETTLEMENT OF COMPLAINTS AND 7. To report accurately and promptly DENUNCIATIONS,AND HANDLINGOY examination results to product and goods quality VIOLATIONS OF THE LAW ON examinatron agencies. PRODUCT AND GOODS QUALITY 8. To take responsibility before law for Section I. SETTLEMENT OF DISPUTES examination results, conclusions andhandling of OVERPRODUCTAND GOODS QUALITY violations.

Article 54.- Disputes over product and goods Sec/iDn 2. PRODUCTAND GOODS quality QUAliTYINSPECTORATE Disputes over product and goods quality Aructe ;'2.- Product and goods qualtty include: inspectorate 1. Disputes between purchasers and importers or sellers or between traders due to products' or 1.The product and goods quality inspectorate good.;:' non-confonnity with announced applicable is a speceetzed Inspectorate. standards, relevant technical regulations or 2. Inspection is conducted in accordance with contractual agreements on quality. the inspection law. 2. Disputes between production and business 3. The Government shall specify the organizations or individuals and consumers and organization and operation of the product and concerned parties due to products' or goods' poor goods quality inspectorate. quality, which causes harms to humans, animals, plants, properties or the environment.

Article 53.- Tasks and subjects ofproduct and goods quality inspection Article 55.- Fanus of settlement of disputes over product and goods quality 1. The product and goods quality inspectorate is tasked to inspect the observance of law by 1. Negotiation on product and goods quality © VIETNAM LAW & LEGAL FORUM Issue nos 03-0S/January 2008 OFFICIAL GAZETTE: 69 (Gong sao nos U-2!lfJanuary 1J, lOOt') between disputingparties. organizations toexamine,test or inspect products and goods whose quality is under dispute. 2. Conciliation between the parties by an intermediary agency, organization or individual 2. Bases for examination, test and inspection agreed upon by the parties. of productsand goods under dispute include: 3. Settlement by arbitrauon or a court. aJ Comractual agreements on product and goods quality; Procedures for settlement of disputes over product and goodsquality byarbitration orcourts hi Announcedstandards and relevanttechnical regulations }lppli.ed to those products and goods. comply withlegalprovisions on arbitration orcivil procedures. Article 58.- Sample-taking, testing or inspectioncostsin the settlementof diipUtes over

Article56.- Statuteoflimitations forcomplaint product and goods quality and initiation of lawsuits on product and goods quality 1. Complainantsor initiatorsof lawsuits shall pay costs of sample taking, testing or inspection 1. The statute of limitations for initiation of of product and good." quality lawsuits on product and goods quality between purchasers and sellers complies with the Civil 2.U the testingor inspectionresults show that Code. organizations or individuals producing and/or trading in products and goods commit violations 2. The statuteof limitations for complaintand on productandgoods quality, thoseorganizations initiationof lawsuitson productandgoodsquality or individualsshallpay tocomplainants-or lawsuit betweenproductionand business organizations or initiators costs of sample taking and testing or individuals comply with the Commercial Law. inspection of the quality of products and goods under dispute. 3.The statuteof limitationsfor complaintand initiation of lawsuitsclaiming compensation for Section 2. COMPENSATION FOR damage caused by products or goods of poor DAMAGE CAUSED BY YKUlJUO'ANlJ quality to humans, animals, plants, assets or the GOODS QUALITY environment is 2 years from the time the concerned parties are notified of the damage, Article 59.- Principlesfor compensation provided that the damage is caused in the use duration of productsor goods which is displayed 1.Damagecaused byviolations of a:gulations on those products or goods, or 5 years from the on product and goods quality must be date of goods delivery. for products and good" compensatedwholly and promptly. with unspecified use duration. 2. Damage to be compensated is specified in

Article 60 of this Law, unless otherwise agreed

Article 57.- Examination, test, inspectionfor upon by disputingparties. settlement of disputes oyer product and goods quality Article 60.- Damage to be compensated due to goods' poor quality 1. Designated dispute-settling agencies or organizations or involved parties shall reach 1. Damage in terms of value of broken or agreementon requestingprofessional agenciesor destroyed goods or assets. © VIETNAM LAW & LEGAL F RUM 70 OFFICIAL GAZETTE Issue nos 03-0S/January 2008 (Gong BDO nos 27-28/Januory 13, 2008) 2. Damage in terms of human life or health. may be unsafe by tbe time they cause banns; 3. Damage in terms of interests associated with fl The damage is caused at the seller's fault; the use or exploitation of goods or assets. glThe damage is caused at the purchaser's or consumer's fault. 4. Reasonable expenses for prevention, mitigation and overcoming of damage. 2. Sellers need not pay compensation to purchasers or consumers in the following cases:

Article 61.- Compensation liabilities a/ Consumers use goods of which the use 1 Prodnr-s-rc n nrl i rrrp rrr-te-r-c c hnll P:lY .durationhas expired, compensation to sellers or consumers when their goods cause harms to the latterdue to their failure bl The statute of limitations for complaint or denunciation has expired; to ensure the goods' quality, except fOT cases specified. in Clause 1, Article 62 of mts Law. 1:'/ That tilt: gvull~ are defective has been Compensation shall be paid according to notified to purchasers or consumers but they still agreements between involved parties or court purchase or use those goods; decisions or arbitral awards. dJ The goods are defective because the 2.Sellers shall paycompensation to purchasers producers or importers comply with regulations or consumers for damage caused by their failure of competent state agencies; to ensure the goods' quality, except for cases e/ The world's scientific and technological specified in Clause 2, Article 62 of this Law. level is not high enough to detect that the goods Compensation shall be paid according to may be unsafe by the time they cause harms; agreements between involved parties or court flThe damage is caused at the purchaser's or decisions-or arbitral awards. consumer's fault.

Article 62.- Cases in which compensation Article 63.- Compensation liability of needs not be paid conformity evaluation organizations which supply wrong results I. Producers and importers need not pay compensation in the following cases: 1. Conformity evaluation organizations which aI Sellers sell or users use goods of which the supply wrong results shall pay compensation fOT use duration has expired; damage caused to evaluation-requesting organiza- tions or individuals according to the civil law. b/ The statute of limitations for complaint or initiation of lawsuits has expired; 2. Organizations and individuals with products UI gllUll~ evaluated ill tenus uf conformity are dThe withdrawal of defective goods has been notified to sellers and users before the goods cause obliged to prove the wrong results given by and harms: the faults of conformity evaluation organizations specified in Clause 1 of this Article. dll'rodUl-L" VI gvw:'> are defective due tv thcu compliance with regulations of competent state Seaton 3. SEITLEMENT OF COMPlAINTS agencies: AND DENUNCIATIONS eJ The world's scientific and technological level is not high enough to detect that products Article 64.- Complaints and denunciations © VIETNAM LAW & LEGAL FORUM Issue nos 03·05fJanuar:y 2008 OFFICIAL GAZETTE 71 (Gong BaD nos 27-28/January 13, 2008) about violations of the law on product and goods handledand ifcausingdamage,pay compensation quality in cccordcncc with low. 1. Organizations and individuals may lodge 3. The fine level imposed on administrative complaints with state agencies or competent violations specifiedin Clauses I and2ofthisArtic1e pcr::;on5 about cdminictnutive decir.ions or nets of must be at least equal to the value of consumed state agencies or competent persons which they products or goodsin violation but must not exceed consider illegal or about acts in infringement of fivetimesthat value;money gainedfrom violations their lawful rights and interests in the domain of shall be confiscated in accordance with law. product and goods quality. The Government shall specify admmistrative 2. Individuals may denounce to state agencies violations,forms of sanctioning and levels of fine or competent persons acts in violation of the law imposed on those violations in the domain of on product and goods quality in accordance with product and goods quality dud ways of determining the law on complaint and denunciation. the value of products and goods in violation. 3. Organizations and individualsare responsible Article67.- Initiationof administrativelawsuits for meu complalnts ur uenunclanons. Organizations and individuals may initiate

Article 65.- Settlement of complaints and lawsuits againststateagenciesorcompetentpersons denunciations about violations of the law on at courts regardingadministrativedecisions or acts product and goods quality related to productand goods qualtryin accordance with the law on procedures for settlement of State agencies and persons competent to settle administrativecases. complaints and denunciations shall consider and settle vtolauons of tilt: law un product and goods Chapter V( quality in accordance with the law on complaints and denunciations. RESPONSIBILITIES FOR STATE CONTROL OF PRODUCT AND GOODS Section 4. HANDLlNGOF VIOLATIONS OF QUALITY THE LAW ON PRODUCT AND GOODS QUALITY Article 68.- Responsibilitiesfor statecontrol of product and goods quality

Article 66.- Handling of violations of the law on product and goods quality 1. The Government shall exercise the unified state control of product and goods quality l , Individuals committing acts of violating the tlrroughoutthe;ountry. law on product and goods quality shall, depending on rho nature and severity of their violations, be 2.The Ministryof ScienceandTechnologyshall disciplined, administratively sanctioned or take responsibility before the Government for cxcminedfor penalliability and, if ccucingdnmugc, unified control of product and goods quality. pay compensation in accordance with law. 3.Line ministriesshall,withinthescope oftheir 2. Organizations violating the law on product tasks and powers, coordinate with the Ministry of and goods quality shall, depending on the nature Science and Technology in performing the task of and seventy of their violations, be administratively state control of product and goods quality. e VIFTNAM LAW II. I FGAL F RUM 72 OFFICIAL GAZETTE Issue nos03-0S/January 2008 (Oong Dao nos 27-281January 13, 2008) 4. People's Committees at all levels shall designation ofconformity evaluation organizations, exercise the state control of product and goods with regard to products in production and goods quality in their localities under the Government's imported, exported or circulated on the market; decentralization. organizeinternational cooperationon productand goodsquality. 5, Based on the socio-economic development situation and statecontrolrequirements forproduct 6. To assume the prime responsibility for and goods quality ineach period, theGovernment organizingevaluation, propose forms of honoring shall specify state control responsibilities of each or rewarding at the national level products and linc minisisy for products and goode ......hich arc not goods of organizations and individuals with yet specified in Clause2, Article 70 of this Law. outstandingachievements in tenns of product and goods quality; provideconditionsand procedures Arlkla 69.- State management responsibilities tor awarding product and goods quality prizes to of the Miseetry at SCIence and'Iechnotogy organizations and mdividuals. 1. To formulate and promulgate or submit to 7. To monitor, make statistics and review the the Government for promulgation, and organize situation of management of product and goods the implementation of, policies, strategies, quality throughout the country, to propagate aud plannings,plans and legal documents on product disseminate thelaw, organize training in,popularize and goodsquality. knowledge and information about product and goods quality and control of product and goods 2. To assume the prime responsibility for, and quality. coordinate with line ministries and provincial/ municipal People'sCommittees in,elaborating and 8. To supervise the observance of the law on submitting to competent authorities for approval productand goodsquality; to settlecomplaintsand and organize the implementation of a national denunciations about, and handle violationsof the program on raising the productivity, quality and law on, productand goodsquality in the assigned competitiveness of products and goods. domains. 3.Toexercisethestatecontrol of product quality Article 70.~ Statecontrolresponsibilities of line in productionaccording to Clause 1,Article70 of ministries this Law. 1.Line ministries shallexercisethestatecontrol 4. To erganize and direct activities of state of product and goods quality in their assigned control at the qualityof goods imported, exported domains, having the following responsibilities: orcircularsd on themarketin theuseprocess related aJ Formulating, promulgatingor submitting to to radiation safety, nuclear safety, measuring the Governmenttor promulgation, and organizing equipment, and other goods, except for goods the implementation of, policies, strategies, falling within responsibilities of line ministries plannings, plans or development programs on defined in Clause 2, Article 70 of this Law. raisingproductand goodsquality; 5. To assume the prime responsibility for, and hi To formulate, promulgate, and organize the coordinate, with line ministries in, fannulating and implementation of,legal documents on productand organizing the application of measures for state goods quality in conformity with specific control of quality, regulationson management or requirements and tasksof ministries and branches; @ VIETNAM LAW & EGAL FORUM Issue nos 03·0SIJanuary 2008 OFFiCiAL GAZETTE 73 (Gong Baonos 27-28/January 13, 2008) cI To organize and direct activities of state transport equipment for construction, marine control of product and goods quality; exploration cndcxplcitation equipment, and traffic dI To designate and manage operations of works; conformity evaluation organizations to meet the dlThe Ministryof IndustryandTradeshalltake requirementsof statecontrol of product and goods responsibility for pressure equipment. lifting quality; equipment for industrial use,chemicals, industrial e/ To inspect the observance of the law on explosives, oil and gas mining equipment, except product andgoods quality; to settlecomplaintsand for marine exploration andexploitationequipment denunciations about, and handle violations of the and facilities, law on, productand goods quality within thescope eI The Ministry of Construction shell take of their tasks and powers; responsibilityfor civil works, industrlil works and fI To monitor, make statistics and review the technicalinfrastructureworks: situation of product and goods quality control; to f/ The Ministry of Defense saall take propagate, disseminate and guide the law on responsibilityfor militaryequipment afI(!i facilities, product and goodsquality; to assist productionand ammunitions, weapons and products iftterviceof business organizatrons and individuals In getting defense, and defense works; information on product and goods quality; g/ The Ministry of Public Security shall take gj Tocoordinate with the Ministry of Science responsibility for fire prevention aDd fighting and Technology in organizing the implementation equipment; technical equipment, nramunitiona, of international treaties or agreements on mutual weapons, support instruments, except for those recognitionof conformity evaluation results; specified at Point f of this Clause. ? Responsibilities for srate control ofthe qnaliry ChapterVll of imported, exported or marketed products and goods which are capable of causing unsafety in IMPLEMENTATION PROVISIONS their use process,are defined as follows: Arlif'lp 71.- Tmplerne:nIMionefff'r.t al The Ministry of Health shall take responsibility for foods, pharmaceuticals, vaccines, This Law takes effect on July 1,2008. medical bio-products, cosmetics, drug materials, TheDecember 24, 1999 Ordinance on Goods drugs for human use, domestic chemicals, Quality ceases to be effective on the effective date insecticides,disinfectantsand medical equipment of this Law. and facilities;

Article 72.- Implementationguidance bl The Ministry of Agriculture and Rural Development shall take responsibility for plants, The Government shall detail and guide the animals, fertilizers, animal feeds, plant protection implementation of this Law. drugs, veterinary drugs, bio-products for use in This Law was passed on November 21, 2007, agriculture, forestry or aquaculture, irrigation by the XlJ rll National Assembly oj the Soaaust works, and dykes; Republic of vietnam at its 2nd session. cl The Ministry of Transport shall take responsibility for means of'transrort.loadina and Chairman ofthe NaJionolAssemblv unloading means and equipment, specialized NGUYEN PHV TRONG ••