Penalties for acts of origin fraud

Origin of goods is always a matter of concern to consumers. This fact results in acts of origin fraud which greatly affects consumers’ quality of life. So how does the law stipulate the administrative penalties for the act of origin fraud? Let’s find out about this issue with PL & Partners Law Firm.

1. WHAT IS THE ORIGIN OF GOODS?

Pursuant to Article 3 of Commercial Law 2005 of Vietnam, origin of goods “means the country or territory where the whole goods are manufactured or where the last stage of substantial processing of goods is carried out if there are many countries or territories involved in the production of that goods”.

In addition, according to Article 3.1 of Decree No. 31/2018/ND-CP, the origin of goods is also defined as follows: “Origin of goods means the country, group of countries or territories where the whole goods are manufactured or where the last stage of substantial processing of goods is carried out if more than one country, group of countries, or territories join in the production of the goods”.

Xuất xứ hàng hóa là nước, nhóm nước, hoặc vùng lãnh thổ nơi sản xuất ra toàn bộ hàng hóa hoặc nơi thực hiện công đoạn chế biến cơ bản cuối cùng — *Origin of goods means the country, group of countries or territories where the whole goods are manufactured or where the last stage of substantial processing of goods is carried out.*

2. ADMINISTRATIVE PENALTIES FOR ACTS OF ORIGIN FRAUD

Specific penalties for violations of the origin of exports and imports are specified in Article 44 of Decree 98/2020/ND-CP as follows:

2.1. A fine ranging from VND 10,000,000 to VND 20,000,000

This penalty applies to the act of erasing, falsifying the Certificate of Origin or the documents of self-certification of origin or the written approvals of self-certification of origin issued by the competent authorities.

2.2. A fine ranging from VND 20,000,000 to VND 30,000,000

This penalty applies to acts of providing false documents and vouchers to competent authorities, or organizations when applying for or verifying a certificate of origin.

2.2. A fine ranging from VND 30,000,000 to VND 50,000,000

This penalty applies to one of the following violations:

a) Self-certifying the wrong origin of goods when it is approved to self-certify the origin by a competent authority;

b) Forging Certificates of Origin or documents of self-certification of origin in case it is not prosecuted;

c) Providing false documents and vouchers to competent authorities or organizations when requesting for self-certification of origin or verifying the documents of self-certification of origin.

2.3. A fine ranging from VND 50,000,000 to VND 70,000,000

This penalty applies to acts of using false Certificates of Origin or false documents of self-certification of origin in case it is not prosecuted.

Simultaneously, the violator may also have the material evidence confiscated as an additional form of sanction.

In addition, the violator shall take remedial measures:

a) Forcible return of illegal profits obtained from the commission of violations as mentioned above;

b) Forcible correction of false information about the origin of goods.

Thus, the implementation of the act of origin fraud will be subject to an administrative penalty of at least VND 10,000,000 and a maximum of VND 70,000,000. In addition to monetary fines, the subject of violations shall also be subject to the additional penalty of confiscation of material evidence and remedial measures in accordance with the law.

Note: The fine mentioned in the article is only applicable to individuals. For organizations that commit violations, the fine will be twice the penalty for the corresponding behavior of the individual.