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Increasing the fine level of trading counterfeit goods, contraband goods, and portable goods

Faced with complicated developments in stalls, counterfeit goods, and poor quality goods, the Government has just issued Decree 98/2020/ND-CP on penalties for administrative violations in trade, production and commercial activities. Counterfeit goods, banned goods and consumer rights protection, referred to as Decree 98, take effect from October 15, 2020.


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The provincial market management unit inspects a shop selling foreign wine

Talking with Dong Nai Electronic Information Portal about the new points of Decree 98, Provincial Acting Director of Market Management Department,  Mr.  Vo Van Tinh said:

- According to Decree 98, acts of trading smuggled goods are not only handled with high fines but also based on the real value of smuggled goods. Thus, the larger quantity of smuggled goods, the more penalties will be imposed. The increase in the sanction level of Decree 98 will increase education and deterrence more strongly, causing individuals and organizations that trade in smuggled and fake goods to calculate and consider.

* In addition to the new features mentioned above, is there any outstanding in Decree 98, Sir?

- Decree 98 replaces Decree 185/2013/ND-CP dated November 15, 2013 on sanctioning of administrative violations in trading, production, trading in counterfeit goods, prohibited goods and protection of consumer rights and Decree 141/2018/ND-CP dated 8 October 2008 on amending and supplementing a number of articles of decrees regulating handling of violations of the law in multi-modal business activities.

Decree 98 consists of 4 chapters, 91 articles, with the following outstanding new points: regulating the maximum fine level in the field of commerce, protecting the interests of consumers up to 100 million VND for individuals and 200 million VND for the organization; The maximum fine level in the field of manufacturing and trading fake and banned goods is 200 million VND for individuals and 400 million VND for organizations.

Specifically, for individuals who trade counterfeit goods in use value, the utility will be fined from 1-70 million VND (depending on the value of counterfeit goods is equivalent to the real goods). Particularly for individual acts of producing counterfeit products such as food, cosmetics, and medical equipment, the fine level will be doubled, specific at 200 million VND.

Thus, compared to the past, Decree 98 stipulates a very high increase in sanctioning levels and fully integrates current violations, especially in the e-commerce sector.

* One of the new features of Decree 98 that is of great interest to many people is the very strict regulations on portable goods. Some people believe that, with these new regulations, in the near future, hand-carried goods will be strictly managed. What is your opinion on this matter?

- It is true that during last time, the portable goods business was very popular. Many consumers prefer portable products, because according to the advertisements of the sellers, they are "bought directly and bring back home" so these goods are cheaper because they are not taxable, but the quality is still guaranteed. However, along with that demand, the sale of counterfeit goods, goods of unknown origin, or banned goods has been rampant, leading to many consumers being deceived, buying contraband goods labeled with hand-carried goods.

Currently, many consumers still do not fully understand the regulations on portable goods as well as how to buy and sell hand-carried products so as not to be penalized. In fact, the sanction for the business of hand-carried goods has existed before, but in Decree 98, the sanction of trading in portable goods in the form of smuggling is increased in the direction of aggravation.

Specifically, the lowest fine level in Decree 98 is 500,000 VND and the highest is up to 100 million VND. In addition, the goods (in the case identified as a violation, they will be regarded as exhibits) will also be confiscated.

* In fact, there are those who travel abroad and bring back some goods but do not have the need to use, they resell, will they be fined according to Decree 98? Will portable goods in this case is considered as smuggled goods?

- A distinction can be made between commercial and consumer behavior for portable goods. Commercial behavior means an act of a trader in production investment, in the exchange of goods or provision of services for profit purposes; and consumer behavior is human thinking and feeling in the process of buying and consuming.

As such, not all hand-carried goods are smuggled goods. Therefore, people need to clearly distinguish between consumption and commercial behavior in order not to violate regulations according to Decree 98.

* In the upcoming time, what solutions does the industry have to restore the commercial order? What do people need to do to join hands, repel the situation of counterfeiting stalls and goods, Sir?

- The industry will continue to improve regulations and strictly handle to discourage organizations and individuals from participating in the production and trading of stalls, counterfeit goods, and contraband goods; strengthen coordination among relevant agencies to promptly handle violations. In addition to enhancing inspection, control, detection and handling of trade frauds, the industry also requires businesses to promote the role of protecting intellectual property of their products. This is not only a right but also the responsibility of the business. When the trademark is infringed, it will actively send complaints to the authorities for consideration and handling. At the same time, manufacturers need to work together in the fight against counterfeiting and counterfeiting more actively.

In addition, the industry has also strengthened propaganda to consumers who need to be aware of their responsibilities in combating fake goods, counterfeit goods, and poor quality products through raising vigilance and proactiveness report when detecting individuals and organizations producing, trading, transporting counterfeit and contraband goods and not assisting with the consumption of prohibited goods ... This does not only protect the interests of consumers but also against acts that destroy production, disrupting the economic development of the country.

* Thank you, Sir!​

Ha Di


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