Circular No. 78/2012/TT-BTC dated May 18, 2012 of the Ministry of Finance guiding a number of articles of the Decree No.84/2011/ND-CP dated 20/9/2011 of the Government regulating the handling of administrative violation in price field

CIRCULAR

GUIDING A NUMBER OF ARTICLES OF THE DECREE NO.84/2011/ND-CP DATED 20/9/2011 OF THE GOVERNMENT REGULATING THE HANDLING OF ADMINISTRATIVE VIOLATION IN PRICE FIELD

Pursuant to the Ordinance on Prices No.40/2002/PL-UBTVQH10 passed by the X^thsession National Assembly Standing Committee on 26/4/2002;

Pursuant to the Ordinance on Handling of Administrative Violations No.44/2002/PL-UBTVQH10 passed by the X^thsession National Assembly on 02/7/2002;

Pursuant to the Ordinance amending and supplementing some Articles of the Ordinance on Handling of Administrative Violations No.04/2008/PL-UBTVQH12 passed by the XII^thsession National Assembly Standing Committee on 02/4/2008;

Pursuant to the Decree No.170/2003/ND-CP dated 25/12/2003 of the Government detailing the implementation of a number of Articles of the Ordinance on Prices;

Pursuant to the Decree No.101/2005/ND-CP dated 03/08/2005 of the Government on valuation;

Pursuant to the Decree No.75/2008/ND-CP dated 09/06/2008 of the Government amending and supplementing some Articles of the Decree No.170/2003/ND-CP dated 25/12/2003 of the Government detailing the implementation of some Articles of the Ordinance on Prices;

Pursuant to the Decree No.118/2008/ND-CP dated 27/11/2008 of the Government regulating functions, duties, powers and organizational structure of Ministry of Finance;

Pursuant the Decree No.128/2008/ND-CP dated 16/12/2008 of the Government detailing the implementation of some Articles of the 2002 Ordinance on Handling of Administrative Violations and the Ordinance Amending and Supplementing a number of Articles of the 2008 Ordinance on Handling of Administrative Violations;

Pursuant to the Decree No.84/2011/ND-CP dated 20/9/2011 of the Government on sanctioning administrative violations in the price field;

At the proposal of the Director of Price Management Department, the Minister of Finance issues a Circular guiding some Articles of the Decree No.84/2011/ND-CP dated 20/09/2011 of the Government on sanctions administrative violations in the field of price,

SECTION 1. GENERAL PROVISIONS

Article 1. Scope of governing

This Circular guides some Articles of the Decree No.84/2011/ND-CP dated 20/09/2011 of the Government on sanctioning administrative violations in the field of prices (hereinafter referred to as the Decree No.84/2011/ND-CP) guiding specifically some administrative violations in the field of prices (including administrative violations in price and valuation), the sanction levels, the sanctioning competence, procedures of collection, payment and use of fines of administrative violations in the field of prices.

Article 2. Subjects of application

1. The competent State management agencies, persons who are authorized by the competent state management agencies to assign duty to sanction administrative violations in the field of prices.

2. Organizations and individuals that violate the provisions of law in the field of prices but not seriously to be prosecuted for criminal liability.

Article 3. The absence of sanctioning administrative violations in the field of prices

1. The State agencies that promulgated legal documents in the field of prices not in compliance with competence, written documents issued ultra vires shall be handled in accordance with the provisions of law on promulgation of legal documents; persons who signed documents ultra vires shall be handled in accordance with the provisions of law on officials and public employees.

2. The expiry of prescription for sanctioning administrative violations as stipulated in Article 5 of the Decree No.84/2011/ND-CP.

3. Administrative violations in the field of price having criminal signs; their records are transferred to the competent authorities conducting criminal proceedings for consideration and settlement under the provisions of criminal law.

4. The case of not handling administrative violations in accordance with the provisions of law on handling of administrative violations.

Article 4. Application of the principles of handling of administrative violations

The application of the principles of sanctioning administrative violations in the field of prices shall comply with principles of sanctioning administrative violations provided for in Article 3 of the Decree No.84/2011/ND-CP and guided in this Article as follows:

1. The individuals and organizations committing acts of administrative violations in the field of prices shall be sanctioned under the provisions of the Decree No.84/2011/ND-CP. In case the administrative violations in relation to prices are not regulated in the Decree No.84/2011/ND-CP, it shall apply the provisions of the Government’s other Decrees on sanctioning of administrative violations in the field of concerned state management to handle.

2. When making the decisions to sanction violations of individuals and organizations, persons who are competent to sanction must be based on the nature and seriousness of the violations, aggravating and extenuating circumstances prescribed in Article 4 of the Decree No.84/2011/ND-CP.

3. A violation made by the same individual, organization at the same time for various goods and services shall be sanctioned only once. Organizations, individuals with many administrative violations in the field of prices shall be sanctioned for each violation. Many organizations and individuals commit together an administrative violation in the field of prices, each violating individual, organization is sanctioned.

4. Where a violation in the field of prices is a consequence of another violation in the field of prices, then only sanction for the violation which has the most severe sanction level.

Article 5. Application of provisions of law on administrative sanctions

The principles for sanctioning, handling of minors who commit acts of administrative violations; method of calculating time limits, prescription in handling of administrative violation in the field of prices; the making of a record of administrative violation, issuance of decision on sanctioning administrative violation; procedures for imposing fines, collection and payment of fines; procedures for confiscation and handling of material evidences and means of administrative violations; the execution of decisions to sanction administrative violations; postponing of the execution of fining decisions and enforcement of decisions on sanctioning of administrative violations and transfer of decisions of administrative sanctions in the field of prices shall be undertaken in accordance with the law on handling of administrative violations and the Decree No.37/2005/ND-CP dated 18/03/2005 of the Government defining the procedures to apply coercive measures to implement the decision on handling of administrative violations.

Minutes of the sanctioning of administrative violations, inspection records, the decision on handling of administrative violation on price, decision on temporary seizure of material evidence and means of administrative violations, records of temporary seizure of material evidences and means of administrative violations, decision on enforcing the decision to handle administrative violation on price shall comply with the Form 01, Form 02, Form 03, Form 04, Form 05 and Form 06 issued together with this Circular.

SECTION 2. SPECIFIC PROVISIONS

Article 6. Acts of violating regulations on price stabilization

1. The act of failing to report or reporting not in compliance with provisions as required by competent State management agencies in clause 1 of Article 9 of the Decree No.84/2011/ND-CP is the act of failing to report or reporting not in compliance with time limit; or reporting incomplete, inaccurate business results, the elements constituting prices, sale prices of goods and services on the list of goods and services stabilized prices, registration of prices, price declaration and list of assets, goods and services valued by the State in accordance with current law or the written request of the competent State management agencies.

2. The price stabilization measures specified in clause 2 of Article 9 of the Decree No.84/2011/ND-CP are specified in:

a) Clause 3 of Article 1 of the Decree No.75/2008/ND-CP dated 09/06/2008 of the Government amending and supplementing some Articles of the Decree No.170/2003/ND-CP dated 25/12/2003 of the Government detailing the implementation of some Articles of the Ordinance on Prices.

b) Clause 3 of Article 2 of the Circular No.122/2010/TT-BTC dated 12/08/2010 of the Ministry of Finance amending and supplementing the Circular No.104/2008/TT-BTC dated 13/11/2008 of the Ministry of Finance guiding the implementation of the Decree No.170/2003/ND-CP dated 25/12/2003 of the Government detailing the implementation of some Articles of the Ordinance on Prices and the Decree No.75/2008/ND-CP dated 09/6/2008 of the Government amending and supplementing some Articles of the Decree No.170/2003/ND-CP dated 25/12/2003 of the Government detailing the implementation of some Articles of the Ordinance on Prices.

3. Acts of violating regulations on appropriation and use of the Price Stabilization Fund specified in clause 3 of Article 9 of the Decree No.84/2011/ND-CP are the act of failing to appropriate in case law prescribes to appropriate Fund to stabilize prices, the act of appropriating inadequately price stabilization Fund; the act of violating price stabilization fund management and the act of using price stabilization Fund not in compliance with provisions of current law.

Article 7. Application of remedial measures for the act of failing to comply with prices decided by the competent agency

1. The amount of price difference that organizations and individuals obtained due to not strictly abide by the price prescribed by the competent authorities required to be paid into the state budget as defined at Point a, Clause 5, Article 12 of the Decree No.84/2011/ND-CP is calculated by:

- The difference in price that organizations and individuals have sold higher than the specific prices, the maximum rate of price bracket, standard price, limited price decided by the competent agency multiplied (x ) with the number of goods or services sold or:

- The difference in price that organizations and individuals have purchased less than the minimum price, minimum rate of the price bracket decided by the competent agency multiplied (x ) with the number of goods or services purchased.

2. The amount lost that the organizations and individuals sold goods and services higher than the price prescribed at Point b, Clause 5, Article 12 of the Decree No.84/2011/ND-CP is calculated by product between the difference in price of the specific price or maximum price of standard price bracket, limited price decided by the competent agency multiplied (x ) with the number of goods or services sold higher than the corresponding rates above decided by the competent agency.

3. In case of applied the remedial measures specified at Point b, Clause 5, Article 12 of the Decree No.84/2011/ND-CP, it shall not apply the remedial measures specified at Point a, Clause 5, Article 12 of the Decree No.84/2011/ND-CP.

4. The related costs for refund of the amount violated by organizations and individuals mentioned in point c clause 5 of Article 12 of the Decree No.84/2011/ND-CP are the costs having reasonable and valid documents as prescribed by law.

Article 8. Acts of violating regulations on pricing plans for goods and services

The act of planning for pricing goods and services under the list that the State decides price, stabilizes price not in compliance with the instructions on the pricing Regulation decided by the competent agency specified in clause 1 of Article 13 of the Decree No.84/2011/ND-CP include: the act of failing to apply the bases of pricing, determining the price incorrectly due to fail to comply with the instructions in the pricing Regulation.

Article 9. Acts of violating regulations in specific business operations with conditions as prescribed by the Government

1. The specific business operations with conditions as prescribed by the Government stipulated in Article 14 of the Decree No.84/2011/ND-CP are the operations trading items that the government regulates on the business conditions.

2. Application of the additional sanctioning forms:

a) Organizations and individuals that violate the provisions of Clause 1 or Clause 2 of Article 14 of the Decree No.84/2011/ND-CP for two times or more and with three additional aggravating circumstances or more, except for aggravating circumstances specified at Point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP, in addition to fines according to regulations, it is also stripped a period of 12 (twelve) months the right to use certificates of eligibility for the business, supply of goods and services; the business licenses of organizations and individuals producing, trading and supplying goods and services as prescribed by law.

b) Organizations and individuals having both violations specified in clause 1 and clause 2 of Article 14 of the Decree No.84/2011/ND-CP and having two aggravating circumstances or more, apart from being fined, it is also indefinitely stripped the right to use the certificates of of eligibility for the business or supply of goods or services; the business licenses of organizations and individuals producing, trading and supply of goods, services as prescribed by law.

Article 10. Acts of violation of price registration and declaration of goods and services

1. The act of failing to publicize the prices registered and declared by the organizations and individuals producing, trading specified in clause 1 of Article 15 of the Decree No.84/2011/ND-CP is the act failing to conduct any form of publication for the declared, registered prices after they are valid. The forms of publication include: press conferences, published in the mass media, price listing in accordance with provisions or other publication forms as prescribed by law in the field of price.

2. The act of setting forms, rate for price declaration specified in clause 2 of Article 15 of the Decree No.84/2011/ND-CP not in compliance with instructions on pricing Regulations decided by the competent State agency includes the following acts:

a) Failing to declare a full range of prices of goods and services such as import prices, the wholesale price, retail price, recommended retail price in accordance with the law provisions in the field of price.

b) Failing to state clearly the specifications, quality and origin of the product.

c) Providing false information on the cause to increase or decrease declared prices of each item.

3. Acts of setting up prices for price registration not in compliance with instructions on pricing Regulations defined by the competent State agency at clause 3 of Article 15 of the Decree No.84/2011/ND-CP include the following acts:

a) Failing to perform in accordance with the principles and methods of calculating assets, goods, services at the Circular No.154/2010/TT-BTC dated 01/10/2010 of the Ministry of Finance issuing Regulation on pricing assets, goods, services; using bases of price calculation; price adjustment, cost allocation not following the guidance at the pricing Regulation.

b) Using false and inaccurate information, without checking on the accuracy of the information put into use.

4. The act of failing to declare prices in accordance with the law on prices of goods and services to the competent state management agency under the provisions of clause 4 of Article 15 of the Decree No.84/2011/ND-CP is the act failing to send price declaration form to the state agency for the first declaration or price re-declaration before the price adjustment of increase or decrease is made compared with the declared price of the preceding times, or when requested in writing the price re-declaration of the competent State management agency.

5. The act of failing to register prices in accordance with the law on prices of goods and services to the competent state management agency under the provisions of clause 5 of Article 15 of the Decree No.84/2011/ND-CP is the act failing to send price registration form to the state agency for the first registration or price re- registration before the price adjustment of increase or decrease is made compared with the registered price of the preceding times, or when requested in writing the price re- registration of the competent State management agency.

6. Application of the additional sanctioning forms:

The organizations and individuals committing acts of administrative violations in Article 15 of the Decree No.84/2011/ND-CP, in addition to the fine in cash under the provisions it is also applied the following additional sanctioning forms:

a) Deciding on suspension of the implementation of the prices of selling goods and services defined by the organizations and individuals when registering and declaring price unreasonably, not in compliance with the guidance on the pricing Regulations issued by the competent agency.

b) Stripping for a term of 12 (twelve) months the right to use certificates of eligibility for doing business, business licenses granted in cases of:

- 3 times of committing acts of violations prescribed in Clause 2 or Clause 3 of Article 15 of the Decree No.84/2011/ND-CP and with two more aggravating circumstances or more unless those specified in point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP.

- 3 times of committing acts of violations prescribed in Clause 4 or Clause 5 of Article 15 of the Decree No.84/2011/ND-CP and with two more aggravating circumstances unless those specified in point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP.

c) Stripping the right to use indefinitely certificates of eligibility for doing business, the business licenses granted in cases of:

- 4 times of committing acts of violations prescribed in Clause 2 or Clause 3 of Article 15 of the Decree No.84/2011/ND-CP and with two more aggravating circumstances or more unless those specified in point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP.

- 4 times of committing acts of violations prescribed in Clause 4 or Clause 5 of Article 15 of the Decree No.84/2011/ND-CP and with two more aggravating circumstances or more unless those specified in point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP.

Article 11. Acts of violation on the listing of prices of goods and services

1. The acts of violation on the listing of prices of goods and services applied to the subjects required to list prices. Subjects required to list prices to be the organizations and individuals engaged in production and business in the territory of Vietnam must list wholesale price, retail price, recommended retail price in accordance with standards, quality and quantity of each type of sold goods and service at the following locations:

a) The facilities of production, business (with the counters of transaction and selling products).

b) Supermarkets, shopping centers, markets in accordance with provisions of law, stores, shops, kiosks, stall selling goods or supplying services.

c) Fairs with sale of goods.

2. Form of listing prices:

a) Currency listed its prices is Vietnam Dong.

b) Organizations or individuals selling wholesale goods, services shall perform the listing of wholesale prices included all taxes, fees and charges (if any) of each type of goods and service by informing publicly the specific prices of goods and services on the boards (including electronic board), on paper in the form of placing, putting, hanging at the places of transactions convenient for observation and identification of customers, through written notice or on the internet.

c) Organizations and individuals retailing goods and services make the listing of prices included all taxes, fees and charges (if any) by public announcement at the place of transactions by boards (including the electronic board), on the card, on shelves, on product packaging, or on products for each specific goods or on the Internet to facilitate the observation and identification of the customers.

d) Organizations, individuals providing content services on mobile network, Internet network make the listing of service charges in the following forms:

- Television: it must provide rates during the advertising, pricing information must be stood still, not being drifted, run. Size, the height of rates is by at least one fifth the height of the screen (or at least equal to half of the height of the command syntax).

- Oral press: When syntax of message is advertised completely to a certain phone number, it must provide immediately information on rate required to be paid by users, for example after the advertising on downloading ring tones to a certain phone number, it must provide information on rate, after advertising lottery results from a phone number, it must provide information on rate.

- Electronic press: it must provide rates at any place where ad on the syntax of the message command to phone number is existed.

- Writing press: It must provide information on rate for each service, each phone number with the font size of the minimum height, width of 1.5 mm.

- When users wish to download a product, service through software installed on mobile phone, the software must provide the specific charges that the users will have to pay if they do the function of downloading information, service from a phone number.

- Charges shall be informed by the program host introducing the service.

3. The sanction for violation of listing prices of goods and services shall comply with the provisions of Article 16 of the Decree No.84/2011/ND-CP.

4. Sanction levels are specified as follows:

a) A warning shall be imposed to the organizations and individuals committing first act of violation in case of the violation of not listing or listing price not in compliance with regulations, not clear causing confusion for customers. In particular, the first violation means the violation firstly detected with violation record or conclusion of the inspection and examination.

b) A fine of 1,250,000 VND shall be imposed to the organizations and individuals that commit acts of recidivism violations or violations from two times or more of not listing or listing price not in compliance with regulations for commodities and services required to be listed.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 500,000;

- If having one aggravating circumstance or more, unless the aggravating circumstance specified at Point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP, the fine level is VND 2,000,000.

c) A fine of VND 3,500,000 shall be imposed to the organizations and individuals that sold goods and collected services charge higher listed prices.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 2,000,000;

- If having one aggravating circumstance or more, the fine level is VND 5,000,000.

d) A fine of VND 7,500,000 shall be imposed to the organizations and individuals that violate the listing of price, sold higher than the listed prices for goods and services on the list of price stabilization, goods and services on the list of business restriction or conditional business, or goods and services at locations where the competent state agencies require the price listing.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 5,000,000;

- If having one aggravating circumstance or more, the fine level is VND 10,000,000.

Article 12. Acts of increasing excessively price

1. The acts of increasing price according to the price registered or declared with the competent state management agency, but the competent state management agency sent written request for explaining on the price registered or declared or written request for the suspension of the application of new price and implementation of re-registering, re-declaring the price stipulated in Point b clause 1 Article 17 of the Decree No.84/2011/ND-CP, including:

a) Continuing to implement the price increase according to the one registered or declared with the competent State management agency in the event of expiry of the explanation of price registered or declared but still have no official dispatch to explain for responding to the request for sending a written explanation by the competent state agency.

The time limit for explanation is prescribed in the Finance Ministry s decision on the issuance of the process of price registration and declaration. The time limit for explanation is calculated according to the coming postmark of the written explanations or by date on the written request for explanation of the competent State management agencies in the absence of the postmark.

b) Continuing to implement the price increase according to the one registered or declared with the competent State management agency though the state agency has requested to suspend application of new rate or to re-register, re-declare the price.

2. The total value of goods and services sold from excessive price increase used as a basis for applying the sanction level is calculated by the product of the actual selling price of the unit with act of price increase by the price registered, declared but has not been approved for application by the competent State management agency multiplied (x) with total amount of goods and services sold by increased price to date the sanction for administrative violation is made.

3. Sanction levels are specified as follows:

a) A fine of VND 750,000 shall be imposed for the act of increasing prices specified in clause 1, Article 17 of the Decree No.84/2011/ND-CP.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 500,000;

- If having one aggravating circumstance or more, the fine level is VND 1,000,000.

b) A fine of VND 2,000,000 shall be imposed for the act of increasing prices specified in clause 2, Article 17 of the Decree No.84/2011/ND-CP.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 1,000,000;

- If having one aggravating circumstance or more, the fine level is VND 3,000,000.

c) A fine of VND 4,000,000 shall be imposed for the act of increasing prices specified in clause 3, Article 17 of the Decree No.84/2011/ND-CP.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 3,000,000;

- If having one aggravating circumstance or more, the fine level is VND 5,000,000.

d) A fine of VND 6,000,000 shall be imposed for the act of increasing prices specified in clause 4, Article 17 of the Decree No.84/2011/ND-CP.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 5,000,000;

- If having one aggravating circumstance or more, the fine level is VND 7,000,000.

đ) A fine of VND 8,500,000 shall be imposed for the act of increasing prices specified in clause 5, Article 17 of the Decree No.84/2011/ND-CP.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 7,000,000;

- If having one aggravating circumstance or more, the fine level is VND 10,000,000.

e) A fine of VND 12,500,000 shall be imposed for the act of increasing prices specified in clause 6, Article 17 of the Decree No.84/2011/ND-CP.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 10,000,000;

- If having one aggravating circumstance or more, the fine level is VND 15,000,000.

g) A fine of VND 17,500,000 shall be imposed for the act of increasing prices specified in clause 7, Article 17 of the Decree No.84/2011/ND-CP.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 15,000,000;

- If having one aggravating circumstance or more, the fine level is VND 20,000,000.

4. Application of the additional sanctioning forms:

The organizations and individuals that violate the provisions of Article 17 of the Decree No.84/2011/ND-CP, in addition to fines under the provisions, they are also subject to the following additional sanctioning forms:

a) Stripping for 12 (twelve) months the right to use certificates of eligibility for business, business licenses granted for the organizations and individuals that violate the excessive price increases three times or recidivism, and with more aggravating circumstances, unless those specified at Point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP.

b) Stripping for an indefinite period the right to use certificates of eligibility for business, business licenses granted for the organizations and individuals that violate the excessive price increases 4 times or more, and with more aggravating circumstances, unless those specified at Point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP.

5. Remedial measures:

Organizations and individuals that violate the provisions of Article 17 of the Decree No.84/2011/ND-CP, in addition to fines under the provisions, it is also subject to the remedial measures as confiscation for remitting into State budget the money earned by the administrative violation. The collection of fines shall comply with the provisions of Article 19 of this Circular.

The money earned from administrative violations for the acts violating the provisions of Article 17 of the Decree No.84/2011/ND-CP is the difference between the total value of goods and services sold due to excessive price increase and total value of goods and services sold under the declared, registered price and has been approved for application previously by the competent state agencies.

Article 13. Acts of providing false information on markets, prices of goods and services

1. The acts of providing false information on markets, prices of goods and services shall be sanctioned under the provisions of Article 18 of the Decree No.84/2011/ND-CP. Specific sanction levels are specified as follows:

a) A warning shall be imposed to organizations and individuals that violate the first time with acts of fabricating or spreading information, providing false information on the market situation, prices of goods and services causing confusion psychology in society and market instability and with two extenuating circumstances.

b) A fine of VND 750,000 shall be imposed to organizations and individuals that fabricate or spread information, provide false information on the market situation, prices of goods and services causing confusion psychology in society and market instability.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 500,000;

- If having one aggravating circumstance or more, the fine level is VND 1,000,000.

c) A fine of VND 3,000,000 shall be imposed to business households that fabricate or spread information, provide false information on the market situation, prices of goods and services causing confusion psychology in society and market instability.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 1,000,000;

- If having one aggravating circumstance or more, the fine level is VND 5,000,000.

d) A fine of VND 7,500,000 shall be imposed to the enterprises that fabricate or spread information, provide false information on the market situation, prices of goods and services causing confusion psychology in society and market instability.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 5,000,000;

- If having one aggravating circumstance or more, the fine level is VND 10,000,000.

đ) A fine of 15,000,000 shall be imposed to the mass media agencies and concerned organizations that fabricate or spread information, provide false information on the market situation, prices of goods and services on the mass media such as printed press, oral press, visual press, electronic press or other information publications causing confusion psychology in society and market instability.

Where there are extenuating or aggravating circumstances, the sanction levels are as follows:

- If having one extenuating circumstance or more, the fine level is VND 10,000,000;

- If having one aggravating circumstance or more, the fine level is VND 20,000,000.

2. Application of the additional sanctioning forms.

Organizations and individuals committing acts of violation specified in Clause 2, Clause 3 of Article 18 of the Decree No.84/2011/ND-CP in addition to fines under the provisions they are also subject to the following additional sanctioning forms:

a) Stripping for 12 (twelve) months the right to use certificates of eligibility for business, business licenses granted for the organizations and individuals that violate three times or more, and with 2 aggravating circumstances or more, unless those specified at Point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP.

b) Stripping for an indefinite period the right to use certificates of eligibility for business, business licenses granted for the organizations and individuals that violate 4 times or more, and with 2 aggravating circumstances or more unless those specified at Point b, Clause 2, Article 4 of the Decree No.84/2011/ND-CP.

3. Remedial measures.

Organizations and individuals committing acts of violation specified in Article 18 of the Decree No.84/2011/ND-CP in addition to fines under the provisions, they are also subject to the following remedial measures:

a) Forced to correct information for the violations specified at Clause 2, Clause 3, Clause 4, Article 18 of the Decree No.84/2011/ND-CP through mass media and the website of the Ministry of Finance or Department of Finance where the administrative violations are committed;

b) Forced to destroy or seized to destroy publications with false information contents for the violations prescribed in Clause 4 of Article 18 of the Decree No.84/2011/ND-CP. The entire costs of destruction of these publications shall be paid by units, individuals that violate.

Article 14. Sanction of administrative violations on valuation for valuation enterprises

1. The acts of failing to provide valuation certificates and failing to provide reports of valuation results as required by competent state agencies specified in clause 6 of Article 19 of the Decree No.84/2011/ND-CP are the acts failing to provide valuation certificates, failing to provide reports on the evaluation results which the competent State management agencies request within 5 days after expiration of the request for providing valuation certificates and reports on the evaluation results.

The provisions in clause 6 of Article 19 of the Decree No.84/2011/ND-CP shall be applied when the competent state agencies send written requests for providing valuation certificates, the reports on the evaluation results that valuation enterprises performed and these materials are still in the time required to store records, documentation of valuation prescribed by law. Documents requested for providing are used for the purposes such as re-evaluation of the results of valuation of the valuation enterprises, collection of materials for the inspection, examination; collection of evidence for adjudication of the disputes, collection of materials for activities of building and completing legal documents; and other purposes prescribed by law.

2. Competent State management agency that makes the final evaluation results as prescribed in clause 7 of Article 19 of the Decree No.84/2011/ND-CP is the Ministry of Finance. This result is presented upon the settlement of disputes, complaints or denunciations or inspection, unusual or regular examination for valuation activities.

3. Provisions on the acts of failing to appropriate a reserve fund for occupational risks in clause 9 of Article 19 of the Decree No.84/2011/ND-CP shall be applied when the enterprises do not purchase professional liability insurance and do not to set up reserve fund for occupational risks in accordance with provisions of the valuation law.

4. Application of the additional sanctioning forms.

Valuation enterprises committing acts of violation specified in Article 19 of the Decree No.84/2011/ND-CP in addition to fines under the provisions they are also subject to the following additional sanctioning forms:

a) Withdrawn the notice on enterprise qualified for valuation activities of the year being fined announced by the Ministry of Finance, for the cases:

- The acts of violation defined in Clause 1, Clause 2, Clause 4, Clause 5, Clause 6, Clause 9 of Article 19 of the Decree No.84/2011/ND-CP and with one aggravating circumstance.

- The acts of violation defined in Clause 3 or Clause 8 of Article 19 of the Decree No.84/2011/ND-CP.

b) Withdrawn the notice on enterprise qualified for valuation activities of the year being fined announced by the Ministry of Finance, and not being notified enterprise qualified for valuation activities for the preceding year for the cases:

- The acts of violation defined in Clause 1, Clause 2, Clause 4, Clause 5, Clause 6, Clause 9 of Article 19 of the Decree No.84/2011/ND-CP and with 2 aggravating circumstances or more.

- The acts of violation defined in Clause 3, Clause 8 of Article 19 of the Decree No.84/2011/ND-CP and with 1 aggravating circumstance or more.

- The acts of violation defined in Clause 7 of Article 19 of the Decree No.84/2011/ND-CP.

5. Application of the additional sanctioning forms.

a) Valuation enterprises committing acts of violation specified in Clause 7, Article 19 of the Decree No.84/2011/ND-CP shall be forced to pay compensation to customers for the different amount caused by administrative violation.

The different amount caused by administrative violation is the cost hiring valuation service based on valuation contract and the other losses for the customer that the competent State management agency determines.

b) Valuation enterprises committing acts of violation specified in Clause 9, Article 19 of the Decree No.84/2011/ND-CP also are forced to appropriate a reserve fund for occupational risk or forced to buy professional liability insurance in accordance with law provisions.

Article 15. Sanction of administrative violations on valuation for price appraisers.

1. A number of administrative violations prescribed in Clause 1 of Article 20 of the Decree No.84/2011/ND-CP is guided as follows:

a) The acts of failing to comply with the valuation process provided for in Clause 1 of Article 20 of the Decree No.84/2011/ND-CP are the acts failing to comply with the valuation procedures specified in the evaluation standards of Vietnam and the specialized legal documents in the field of price.

b) The acts of failing to comply with valuation method under the guidance in valuation standards of Vietnam and the specialized legal documents in the field of price, or international valuation standards accredited by the Ministry of Finance provided for in Clause 1 of Article 20 of the Decree No.84/2011/ND-CP are the acts failing to comply with valuation method as prescribed leading to falsify valuation results.

Valuation method prescribed in valuation standards of Vietnam and the specialized legal documents in the field of price; in case valuation standards of Vietnam has not been instructed yet, then comply with the standards, Guidelines for valuation of the International Valuation Standards Council (IVSC); in case the International Valuation Standards Council has not instructed yet,  then comply with the guidance of the ASEAN Valuation Association (AVA) and other organizations or other international valuation associations admitted by the Ministry of Finance.

2. The act of leasing, lending the organizations and individuals the appraiser cards for these organizations and individuals to establish the valuation enterprises as provided for in Clause 2 of Article 20 of the Decree No.84/2011/ND-CP is the act that appraisers lease or lend their cards for the organizations and individuals to register certificates of business registration with a business line to be valuation with the competent state management agency, but not practicing valuation in the enterprise.

3. The act of leasing, lending the valuation enterprises the price appraiser cards for the competent State management agencies to notice that the enterprises are eligible for valuation operation specified in clause 3 of Article 20 of the Decree No.84/2011/ND-CP is the act that price appraiser registered to practice valuation in the valuation enterprises for these enterprises to satisfy the condition on price appraiser and to be noticed by the competent State management agencies that the enterprises are qualified for valuation operation, but these price appraisers do not actually practice in the valuation enterprises.

4. Application of the additional sanctioning forms:

Apart from the fines, the appraisers who commit acts of administrative violations on valuation may be subject to the following additional sanctioning forms:

a) Deleting name in the list of price appraisers who are qualified to practice valuation as notified by the Ministry of Finance for the following acts:

- The act failing to comply with valuation procedures as prescribed in Clause 1 of Article 20 of the Decree No.84/2011/ND-CP and has an aggravating circumstance;

- The act failing to comply valuation method as prescribed in Clause 1 of Article 20 of the Decree No.84/2011/ND-CP and has an aggravating circumstance.

b) Deleting name in the list of price appraisers who are qualified to practice valuation as notified by the Ministry of Finance during the year to be sanctioned and not being registered to practice valuation in the following year for the following acts:

- The act failing to comply with valuation procedures as prescribed in Clause 1 of Article 20 of the Decree No.84/2011/ND-CP and has 2 aggravating circumstances or more;

- The act failing to comply valuation method as prescribed in Clause 1 of Article 20 of the Decree No.84/2011/ND-CP and has 2 aggravating circumstances or more.

- The act disclosing information on valuation customers and valuation assets that the appraisers know in practice, unless otherwise agreed by the valuation customer or permitted by law.

- The act receiving any sum of money or other benefits from organizations and individuals with demand of valuation beyond the service rates agreed in the contract.

- The act registering to practice valuation in the same time for two valuation enterprises or more.

- The act practicing valuation in the same time for 2 valuation enterprises or more.

c) Stripping a term of twelve (12) months the right to use price appraisers card, and deleting name in the list of price appraisers who are qualified to practice valuation as notified by the Ministry of Finance for the year to be detected administrative violation for the following acts:

- The acts specified at Point b, Clause 4, Article 15 of this Circular, if having one more aggravating circumstance.

- The act colluding with property owners, customers, stakeholders when making valuation to falsify the results of evaluation by the different rate specified in Clause 7 of Article 19 of the Decree No.84/2011/ND-CP compared with the result of the final valuation of the competent State management agency.

d) Stripping indefinitely the right to use price appraiser card or revoking price appraiser card for the following acts:

- The act of leasing, lending the organizations and individuals the appraiser cards for these organizations and individuals to have certificates of business registration with business line to be valuation.

- The act colluding with property owners, customers, stakeholders when making valuation to falsify the results of evaluation compared with the result of the final valuation of the competent State management agency and have one more aggravating circumstance.

- The act of leasing, lending the valuation enterprises the price appraiser cards for the competent State management agencies to notice that the enterprises are eligible for valuation operation.

5. Application of remedial measures:

a) Confiscating to remit into the state budget the entire amount that appraisers obtained in collusion with property owners, customers, stakeholders when making valuation to falsify the results of evaluation compared with results of the final valuation of the competent State management agencies.

b) Forced to return the customers the entire amount lost caused by acts of administrative violations specified at point a, and point b, Clause 4, Article 15 of this Circular.

c) Confiscating to remit into the state budget the entire amount that appraisers obtained due to administrative violations specified in Article 20 of the Decree No.84/2011/ND-CP, in the absence of application of point b, Clause 5 of Article 15 of this Circular.

Article 16. Sanction of administrative violations on valuation for organizations and individuals to use state budget to purchase assets required to valuate in accordance with the law provisions.

1. The sanction of administrative violations on valuation for organizations and individuals to use the state budget purchase assets required to valuate in accordance with the law provisions shall comply with the provisions of Article 21 of the Decree No.84/2011/ND-CP.

2. The act colluding with valuation enterprises, price appraisers to raise prices or lower prices, causing damage to the State as specified in Clause 3 of Article 21 of the Decree No.84/2011/ND-CP is the act agreeing with valuation enterprises, price appraisers to raise the valuation service rates, causing damage to the State; to raise or lower valuation of assets required to evaluate for the procurement activity or sale of assets from state budget led to damage to the State.

Article 17. Sanction of administrative violations on valuation for the organization functioning training and retraining of valuation professional skill

1. A fine of VND 30,000,000 shall be imposed for one of the following acts:

a) Violation of regulations on procedures for organizing the course of training and retraining as provided for in the Regulation of training and retraining of valuation professional  skill issued by the competent State management agencies; failing to send report on the results of organizing the course of training and retraining valuation professional  skill to the Finance Ministry (the Price Management Department); failing to register with the Finance Ministry (the Price Management Department) on the training and retraining of valuation professional skill.

b) Issuing certificates of training and retraining of valuation professional skill for those who are not named in the school list, those who have attended school but did not qualify under the provisions of the Regulation on training and valuation professional skill.

2. Application of the additional sanctioning forms.

Organizations functioning training, re-training short term professional skill of valuation commit administrative violations prescribed in this Article, in addition to the fines, they are also subject to the following measures:

a) Stripping the right to train and retrain professional skill of valuation of these organizations within 12 (twelve) months, for the violations prescribed at Point a, Clause 1 of this Article and has one aggravating circumstance or more.

b) Stripping indefinitely the right to train and retrain professional skill of valuation of these organizations for the violations prescribed at Point b, Clause 1 of this Article with one aggravating circumstance or more; at the same time, revoking certificates of training and retraining of professional skill of valuation which have been granted for subjects not on the school list, or the students who are not eligible for being granted certificates of training and retraining professional skill of valuation in accordance with the Regulation on training and retraining professional skill of valuation.

SECTION 3. COMPETENCE, COLLECTION, PAYMENT, AND USE OF FINES IN ADMINISTRATIVE VIOLATION SANCTIONS

Article 18. Determination of competence to sanction administrative violations in the field of price

Competence to sanction administrative violations in the field of price as prescribed in Article 24, Article 25, Article 26, Article 27, Article 28, and Article 29 of the Decree No.84/2011/ND-CP is the competence applied for an administrative violation. In the case of fines, the sanctioning competence shall be determined based on the maximum level of the fine bracket prescribed for each administrative violation.

In the case of sanctioning a person who commits many acts of administrative violations in the field of prices, the sanctioning competence shall be determined as follows:

1. If the sanction forms, the sanction level prescribed for every act are under the competence of the sanctioning person provided for in Article 24, Article 25, Article 26, Article 27, Article 28 and Article 29 of the Decree No.84/2011/ND-CP, the sanctioning shall be conducted.

2. Where a fine level or one of the forms of additional sanctions or remedial measures are not under the jurisdiction or beyond its jurisdiction, those who are processing the cases of violation shall promptly transfer the matters to the people who are competent to sanction.

Article 19. Collection, remittance, and use of fines for administrative violations in the field of price

Proceeds from the sanctioning of administrative violations in the field of price are paid into the state budget through the accounts of temporary collection, temporary seizure of the financial agency opened at the state treasury. The collection, remittance of fines is made as prescribed in the Circular No.128/2008/TT-BTC dated 24/12/2008 of the Ministry of Finance guiding the collection and management of revenues of the state budget through the Treasury State. The management and use of fines for administrative violations shall comply with the provisions of the Circular No.47/2006/TT-BTC dated 31/05/2006 of the Ministry of Finance guiding the implementation of the Decree No.124/2005/ND-CP dated 6/10/2005 of the Government defining on receipt of fines and management, use of fines for administrative violations.

Article 20. Complaints, denunciations and handling of violations

The complaints and denunciations, settlement of complaints and denunciations and handling of violations shall comply with the provisions of Article 35, Article 36 of the Decree No.84/2011/ND-CP.

SECTION 4. ORGANIZATION OF IMPLEMENTATION

Article 21. Effect

1. This Circular takes effect as from July 05, 2012.

2. To annul the Circular No.110/2004/TT-BTC dated 18/11/2004 of the Ministry of Finance guiding the Decree No.169/2004/ND-CP dated 22/9/2004 of the Government on sanctioning administrative violations in the field of price.

Article 22. Responsibility for implementation

1. Director of Price Management Department, Chief Inspector of the Ministry of Finance are responsible for organizing and implementing the handling of administrative violations in the field of prices to ensure the compliance with provisions of law.

2. During the implementation, if any problems arise, the concerned units should promptly report them to the Finance Ministry for consideration and settlement.