Actions against administrative violations

1. Imported goods in the following cases are considered smuggled goods:

a) Goods in transit; goods being displayed for sale; goods stored at warehouses, depots, gathering points that the trader fails to present invoices and/or documents proving their legitimacy as prescribed in Article 3 of this Circular;

b) Imported goods being sold on the market with invoices and/or documents that are concluded illegal or illegally used by competent authorities through investigation. Illegal invoices and illegally used invoices are specified in Clause 8 and Clause 9 Article 3 of Decree No. 51/2010/NĐ-CP;

c) Imported goods purchased from border residents by a purchasing agent who sells them to another entity to be transported to inland without adequate documents prescribed in Clause 3 Article 4 of this Circular.

2. Any manufacturer or trader of imported goods that trades, transports imported goods against regulations on invoices and/or documents in Chapter II of this Circular shall be liable to administrative penalties according to Decrees on penalties for administrative violations if their violations are not liable to criminal prosecution. Particularly:

a) Any entity that trades, transports, stores smuggled goods shall incur penalties according to Decree No. 185/2013/NĐ-CP dated November 15, 2013 on penalties for administrative violations against regulations on trading, manufacture and trade of counterfeit goods, prohibited goods, and consumer protection;

b) In case imported goods are sold on the market without adequate or without invoices and/or documents as prescribed in Chapter II of this Circular because they are lost or damaged, if the trader has reported the loss/damage as prescribed in Decree No. 51/2010/NĐ-CP and is able to prove the legitimacy of goods origins (using copies of invoices and/or documents provided by issuers, they shall incur administrative penalties according to the Government’s Decree No. 109/2013/NĐ-CP dated September 24, 2013 on penalties for administrative violations against regulations on control of prices, fees, charges, and invoices;

c) If a violation against regulations on invoices and/or documents for imported goods being sold on the market leads to understatement of tax payable, overstatement of tax refund, or tax fraud, the trader has to pay tax arrears and incur penalties according to the Law on Tax administration;

d) Violations against regulations on invoices and/or documents that are not mentioned in Points a, b, c of this Clause shall incur penalties prescribed in relevant Decrees on administrative penalties.

Article 7. The power to impose penalties for administrative violations

1. The power to impose penalties for administrative violations against regulations on invoices and/or documents for imported goods being sold on the market are specified in the Law on Actions against administrative violations and the Government’s Decrees on penalties for administrative violations against regulations on trade, taxation, or customs.

The case that is beyond an agency’s power shall be transferred to a superior agency or a competent agency together with exhibits and vehicles impounded or confiscated (if any). The competent agency that handles the case must notify the transferring agency of the result.

2. The regulatory body that discovers administrative violations pertaining to imported goods under the supervision of a customs authority shall consider imposing administrative penalties or transfer the case to a competent authority as prescribed by regulations of law on administrative penalties.