Sanctions applied for counterfeit goods

In order to avoid rampant trade in counterfeit goods, the General Department of Information Management (Ministry of Industry and Trade) has coordinated with the Information Management Team No. 2 and the Information Management Team No. 14 to check unexpectedly at 7 “points” hot in Hoan Kiem district, Hanoi. At the time of inspection, the inspection team discovered and detained 2,373 product units with signs of counterfeiting famous brands and goods without invoices and documents proving the lawful origin of the goods. Including more than 1000 units of goods such as shoes, clothes with signs of counterfeiting famous brands in the world such as Nike, Adidas, Gucci, Chanel, ... and no invoices and vouchers proving the origin.

In fact, counterfeit goods are produced like real goods in all aspects and are sophisticated, making it difficult for consumers to distinguish. Counterfeit goods are increasingly appearing in the market, affecting the national economy, social order, national defense and security, legitimate business companies, especially affecting consumer confidence use. So, how do the laws protect the rights and legitimate interests of consumers and legitimate businesses?

Through this article, DTD will analyze and clarify sanctions for acts of buying and selling counterfeit goods as well as providing some legal services to help customers do business without legal problems.

1. What are counterfeit goods?

According to Clause 8, Article 3, Decree 185/2013 / ND-CP and Clause 3 Article 1 of Decree 124/2015 / ND-CP stipulating counterfeit goods:

"8. "Counterfeit goods" include:

a) Goods have no use value, utility; having use value, utility not true to the nature of the nature and appellations of the goods; having use value, utility not in accordance with the use value, utility announced or registered;

b) Goods with at least one of the basic quality specifications or specifications that make up the use value and use of goods only reach 70% or less compared to quality standards or regulations, registered technology, announced application or on the label, packaging of goods;

c) Preventive and curative medicines for humans and domestic animals without pharmaceutical substance; have pharmaceutical substance but not with the registered content; not enough registered pharmaceutical substances; have pharmaceutical substances different from those stated on the labels and goods packages;

d) Plant protection drugs without active ingredients; content of active ingredients reaches only 70% or less compared to quality standards, technical regulations already registered and announced to apply; not enough kinds of registered active ingredients; There are active ingredients different from the active ingredients inscribed on the goods labels or packages;

d) Goods with goods labels or packages containing counterfeit names of traders and addresses of other traders; falsifying trade names or trade names of goods; forging circulation registration codes, bar codes or forging goods packages of other traders; 

f) Goods with goods labels and packages containing counterfeit indications on the origin of goods, places of production, packaging or assembly of goods;

g) Counterfeit goods related to intellectual property specified in Article 213 of the 2005 Intellectual Property Law ; "

Thus, the law has clearly defined how products/goods are counterfeit.

2. Sanctions applicable to acts of trading in counterfeit goods

Individuals and organizations that commit acts of trading in counterfeit goods may be administratively handled or examined for penal liability, depending on the seriousness of the violation.

Penalties for trading in counterfeit shoes, clothing in the above incident, individuals and organizations may be sanctioned in accordance with Article 13 of Decree 185/2013 / ND-CP stipulating penalties for violations administrative activities in trading, producing and trading counterfeit goods, banned goods and protecting the interests of consumers:

" Article 13. Acts of trading in counterfeit goods labels and goods packages

1. For acts of trading in goods with counterfeit goods labels or goods packages specified at Points e and f, Clause 8, Article 3 of this Decree, the fine levels are as follows:

a) A fine of from 200,000 VND to 500,000 VND for the case of counterfeit goods equivalent to the quantity of genuine goods valued at under 1,000,000 VND;

b) A fine of between VND 500,000 and 2,000,000 shall be imposed in case the counterfeit goods are equivalent to a quantity of genuine goods valued between VND 1,000,000 and under VND 3,000,000;

c) A fine of between VND 2,000,000 and 3,000,000 in case the counterfeit goods are equivalent to the quantity of genuine goods valued from VND 3,000,000 to less than VND 5,000,000;

d) A fine of between VND 3,000,000 and 5,000,000 shall be imposed in case the counterfeit goods are equivalent to a quantity of genuine goods valued between VND 5,000,000 and under VND 10,000,000;

d) A fine of between VND 5,000,000 and 10,000,000 in case the counterfeit goods are equivalent to a quantity of genuine goods valued between VND 10,000,000 and under VND 20,000,000;

f) A fine of between VND 10,000,000 and 20,000,000 in case the counterfeit goods are equivalent to the quantity of genuine goods valued from VND 20,000,000 to under VND 30,000,000;

g) A fine of from VND 20,000,000 to VND 30,000,000 shall be imposed if the amount of counterfeit goods is equivalent to the amount of genuine goods valued at VND 30,000,000 or more without being examined for penal liability. "

In addition, individuals and organizations must also apply the remedial measures specified in Clause 4 of this Article:

“4. Remedies:

a) Forcible removal of infringing elements from counterfeit labels or packages, for violations specified in this Article;

b) Force to remove out of the territory of Vietnam or to re-export counterfeit goods, for acts of importing counterfeit goods specified in this Article;

c) Force to submit illicit benefits gained from committing acts of violation specified in this Article;

d) Forcible revocation and removal of infringing elements on labels or packages of counterfeit goods being circulated in the market for acts of violations specified in this Article. "

Thus, for acts of buying and selling counterfeit goods, business owners may be subject to a fine of between VND 200,000 and VND 30,000,000 depending on the value of genuine goods on the market.

In addition to being sanctioned for administrative violations, for cases of serious infringement on the economy, such as the purchase and sale of large quantities of counterfeit goods, storage, preservation, transportation, wholesale, retail and export, imports and other activities that bring counterfeit goods into circulation may be examined for penal liability according to the provisions of criminal law.

3. Legal services that DTD provides to assist Customers

In fact, there are many business establishments, trading products from well-known brands in the world but still being sanctioned by the authorities for acts of buying and selling counterfeit goods, goods of unknown origin due to Documentation of the origin of the product/goods cannot be presented.

DTD will provide related legal services to help customers do business without legal problems as follows:

- Carry out the registration of individual business households/enterprises at the business registration office of the Business Registration Office - Department of Planning and Investment where the head office is located;

- Carry out the procedures for announcing imported products;

- Registering trademark,....

And other related procedures suitable for each type of business, product, location, ...