THE GOVERNMENT

Decree No. 08/2013/ND-CP dated January 10, 2013 of the Government on the administrative penalties for counterfeit goods’ production and trade

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Criminal Code dated December 21, 1999 and the Law on amending and supplementing a number of articles of the Criminal Code dated June 29, 2009;

Pursuant to the Law on Commerce dated June 1, 2005;

Pursuant to the Law on Intellectual property dated November 29, 2005 and the Law on amending and supplementing a number of articles of the Law on Intellectual property dated June 19, 2009;

Pursuant to the Ordinance on Handling administrative violations dated June 02, 2002 and the Ordinance on amending and supplementing a number of articles of the Ordinance on Handling administrative violations dated April 02, 2008;

At the proposal of the Minister of Industry and Trade;

The Government issues a Decree on the administrative penalties for counterfeit goods’ production and trade,

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree deals with the acts of administrative violations, the forms and rates of penalties, and the remedial measures applicable to the administrative violations, the procedures and authority to impose administrative penalties for acts of producing and trading counterfeit goods.

2. The goods within the scope of regulation of this Decree are the goods prescribed in Clause 2 Article 3 of the Law on Commerce 2005.

Article 2. Subjects of application

1. The Vietnamese organizations and individuals that produce and trade counterfeit goods within Vietnam’s territory.

2. The foreign organizations and individuals that produce and trade counterfeit goods within the Vietnam’s territory, unless otherwise prescribed by the International Agreements to which Vietnam is a signatory.

Article 3. Term interpretation

In this Decree, the terms below are construed as follows:

1. “Producing counterfeit goods” are doing one, some, or all the activities including manufacturing, publishing, printing, processing, ordering, preparing, processing, treating, extracting, recycling, assembling, mixing, dividing, filling, packing, and other activities to make counterfeit goods and put them into circulation.

2. “Trading counterfeit goods" are doing on, some, or all the activities including offering, displaying, introducing, advertising, promoting, storing, preserving, transporting, trading, exporting, importing, and other activities to put the counterfeit goods into circulation.

3. “Counterfeit stamps, labels, and packages” includes decals, goods labels, goods packages, quality stamps, warranty notes, goods seals, or other items of traders that contain fraudulent information specified in Clause 2 Article 4 of this Decree.

4. “Exhibits":

a) Finished or semi-finished counterfeit goods that have or have not put into circulation.

b) Materials, accessories, components, parts, additives, processing supplements, other raw materials, counterfeit stamps, labels, and packages used for producing counterfeit goods

5. “Instruments for committing violations” include vehicles, tools, machinery, and other items used for producing and trading counterfeit goods.

Article 4. Types of counterfeit goods

1. The useless goods;

a) The useless goods; the goods of which the uses are not consistent with their nature, their names; the goods of which the uses are not consistent with the announced or registered ones.

b) The goods of which the amount of primary substances, nutrients, or other technical properties only reaches 70% or lower compared to the quality standards and technical regulations that have been registered, announced, or written on their labels or packages;

c) The medicines for humans and domestic animals that have no pharmaceutical substances, or the amount of pharmaceutical substances is not consistent with the registered one; or do not contain all the registered pharmaceutical substances, or contain other pharmaceutical substances than that written on their labels or packages.

b) The plant protection drugs that do not contain active ingredients, or the amount of active ingredient only reaches 70% or lower compared to the quality standards and technical regulations that have been registered or announced, or does not contain all the registered active ingredients, or contain other active ingredients than that written on their labels and packages.

2. Goods using counterfeit labels and packages:

a) Goods using labels and packages that illegally assume the names and addresses of other traders; illegally assume the trademarks and brand names, the circulation registration codes, bar codes, or packages of other traders;

b) The goods of which the labels or packages contain fraudulent information about the origins, the places where goods are produced, packaged, and assembled.

3. The goods with fake intellectual property as prescribed in Article 213 of the Law on Intellectual property 2005.

4. Counterfeit stamps, labels, and packages.