Sanctioning of administrative violations in the domain of standards, measurements and quality of products and goods

On 1 November 2017, the Government issued Decree No. 119/2017/ND-CP (“Decree 119”), replacing Decree No. 80/2013/ND-CP dated 19 July 2013 (“Decree 80”) on the sanctioning of administrative violations in the domain of standard, measurement and quality of products and goods. Decree 119 takes effect on 15 December 2017.

Organizations being subject to regulations on administrative sanctions in the field of standards, measurement and quality of products and goods, include:

 (i) Economic organizations established under the Law on Enterprises, comprising private enterprises, joint-stock companies, limited companies and partnerships;

 (ii) Economic organizations established under the Law on Cooperatives, comprising cooperatives, unions of cooperatives;

 (iii) Economic organizations established under the Law on Investment comprise: domestic investors, foreign investors and foreign-invested capital organizations; and

 (iv) Public administrative units and other organizations as required by law.

Accordingly, Decree 119 has added a number of new potions as compared to Decree 80 such as:

 (i) Provisions on administrative penalties for acts of producing or importing products, goods not compatible with relevant technical regulations or regulations of competent agencies. Accordingly, the act of producing or importing products, goods not conforming to relevant technical regulations or regulations of competent agencies will be subject to a fine of between two and three times the value of the products and goods having been sold;

 (ii) Provisions on penalties for administrative violations in the activities of considering the award of product and goods quality prizes; and

 (iii) Decree 119 adds detailed provisions on the jurisdiction of each competent authority such as the Police, Customs, Market Management, Inspectorate and the person authorized to handle other specialized inspections. In addition, from the effective date of this Decree, the Border Guards and the Coast Guards will also have the competence to handle administrative violations in the domain of standards, measurement and quality of products and goods.