Resolution No. 41/NQ-CP dated June 09, 2015 of the Government stepping up the fight against smuggling, trade frauds and counterfeits in new situation

THE GOVERNMENT

Resolution No.41/NQ-CP dated June 09, 2015 of the Government stepping up the fight against smuggling, trade frauds and counterfeits in new situation

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

Pursuant to the Government’s Decree No. 08/2012/ND-CP dated February 16, 2012 promulgating governmental working regulations

Based on suggestions from the Governmental members and conclusions given by the Prime Minister in regular governmental meeting session in May 2015;

RESOLUTION:

I. ASSESSMENT OF SITUATIONS

In recent years, the fight against smuggling, trade frauds and counterfeits have drawn attention and interest of the Communist Party and State. Ministries, sectors, localities and functional forces and people have actively been involved in the fight and have achieved important results, making significant contribution to stabilizing and speeding up production, trading, increasing state budget revenue, ensuring security, order and protection of interests of people. Particularly as the Prime Minister promulgates the Decision No. 389/QD-TTg dated March 19, 2014 establishing the national steering committee for the fight against smuggling, trade frauds and counterfeits (National Steering Committee 389), this task has shown significant changes and initially achieved positive results. Awareness of authorities and branches have been enhanced, roles and responsibilities of functional forces heighten.

However, the fight against smuggling, trade frauds and counterfeits has not been effected fundamental changes. Smuggling, illegal transport of goods across the border, trade frauds and counterfeits remain complicated with sophisticated trickeries associated with corruption causing loss to state budget and natural resources, imposing negative impacts on environment of investment, trading and international integration; counterfeits, poor quality products, goods of unclear origin in a variety of categories have been displayed for sale, especially imported tobacco and items imposing direct effects on human health have not yet been driven back.

Situations mentioned above result from a lot of reasons, particularly some ministries, departments, local authorities and functional forces have not really paid adequate attention to participating, directing and mobilizing the synergy of society into the fight against smuggling, trade frauds and counterfeits. This partly comes from ignorance and relaxation of management and fighting by some corrupt officials, public servants who take advantages of positions and powers to protect and join hands with smugglers, trade frauds and counterfeit traders. Legal system and policies show much insufficiency and weakness with supplements and amendments being sluggishly made. Coordination proves ineffective and lacks comprehension. Task of information communication shows a lot of constraints. Investigation and handling of smuggling, trade frauds and counterfeits are not objective and strict enough. Production of goods is yet to meet demand. Part of population in border area, remote area or areas facing economic difficulties is involved in smuggling and illegal transport of goods across the border.

II. SOME MAIN DUTIES AND SOLUTIONS

In order to bring into play the synergy of society and effect fundamental changes in the fight against smuggling, trade frauds and counterfeits in the coming time, the Ministries, sectors and localities and functional forces need to be clearly aware of harmful effects of smuggling, trade frauds, production and circulation of counterfeits on socio-economic development, security and order, safety of communities and health of people, put forward appropriate measures and organize the implementation resolutely and effectively. To do that, the following duties and solutions must be focused:

1. To be fully aware of the law provisions, the Prime Minister’s instructions, National Steering Committee 389 for fighting smuggling, trade frauds and circulation of counterfeits; Identify the fight against smuggling, trade frauds and counterfeits as one of the important and constant political objectives of the ministries, sectors and localities of all levels and focus on three fronts: smuggling, trade fraud and counterfeits, try not to leave “restricted area” in this task.

2. Reinforce investigation and handling of smuggling, trade frauds and counterfeits with focus placed on rings, networks, and instigators; Step up investigation to discover and prevent violations, and at the same time solve difficulties arising during the fight.

3. Consolidate the forces that are participating in the fight against smuggling, trade frauds and counterfeits in a concentrated and profound way, define responsibility by administrative division, field, heighten responsibilities of leaders; strictly deal with officials and public servants who show signs of collusion, ignorance or other negative signs in their duties, ensure internal strength to meet requirements of the task.   Promptly make checks, supplements and amendments, or formulate and promulgate regulations and processes on rotation, change of positions of officials and public servants in functional forces, especially sensitive positions where corruption is easy to arise. This must be completed before September 30, 2015 for execution.

4. Construct policies on support of budget to functional forces, encourage material contribution from social, occupational organizations, businesses and people for the prevention and fighting against smuggling, trade frauds and counterfeits, create resources for commendation and invest in facilities, dedicated technical equipment and professional competence to serve this task.

5. Focus on speeding up progress of formulating and completing the law provisions on prevention and fighting against smuggling, trade frauds and counterfeits; promptly conduct research and make supplements and amendments, and submission to competent authorities for promulgation. Financial penalties must be deterrent enough and preventive to meet requirements of the fight against smuggling, trade frauds and counterfeits in new situation.

6. Reinforce management of taxable prices, post-customs clearance inspections, refund of added value taxes, border trade policy, border-gate economic zones, trade zones, domestic markets and types of business and services that are easy to lead to smuggling and trade frauds such as importation, exportation, temporary importation for exportation, bonded warehouses, sale of duty-free goods, production for exportation, outsourcing and transport of goods from border into the country. Accelerate activities of investigation into goods quality standards, conditions of production and trading of items within line management.

7. Regularly carry out propaganda and dissemination of the law provisions to enhance awareness and responsibility of officials, public servants and people toward the fight against smuggling, trade frauds and counterfeits; Content of propaganda must be diversified, appropriate and widely influential; make public announcement of results of investigation and handling on mass media for deterrence and prevention in general.

8. Effectively coordinate forces, define agencies taking main responsibilities and agencies in coordination on key areas and routes; formulate policies on information-sharing among Ministries, sectors, localities, and functional forces to closely control the administrative divisions, subjects, plans and trickeries of smuggling, trade frauds and counterfeits.

9. Continue to improve environment of investment and business, accelerate reform of administrative procedures; renovate methods and process of management and enhancement of quality and reduction of cost price to meet domestic and global market demands.

10. Accelerate research and application of science and technology; reinforce international cooperation in the fight against smuggling, trade frauds and counterfeits, especially countries sharing the common border and ASEAN countries. Cooperate with global organizations and brands in the fight against smuggling, trade frauds and counterfeits, violations of intellectual properties;

III. IMPLEMENTATION

1. National Steering Committee 389:

a) Formulate programs, plans for the fight against smuggling, trade frauds and counterfeits in each period including targets of discovering and handling of smuggling, trade frauds and counterfeits assigned to Ministries, sectors and localities.   

b) Direct, inspect and expedite Ministries, sectors and localities to carry out the fight against smuggling, trade frauds and counterfeits and execute this Resolution and quickly solve difficulties; On a quarterly basis, Ministries, sectors and localities shall carry out assessment and public announcement of performance results;

c) Formulate and develop database of information about smuggling, trade frauds and counterfeits, cooperate with Ministries, sectors and localities in directing, inspecting and handling of violations;

d) Direct Ministries, sectors and localities to study and apply science and technology in order to reinforce inspection and control of exported and imported goods, goods circulating in the market, to fight counterfeits and goods in violation of intellectual property rights;

2.People’s committees of central-affiliated cities and provinces;

a) Direct departments, regulatory bodies, and People’s committees at all levels within their functions and duties to determine key areas of smuggling, trade frauds and counterfeits such as routes, administrative divisions, subjects, goods items and trickeries with focus placed on road border routes, ports, international airports, wholesale markets, coach station, railway station...; instigators; product items such as tobacco, food, gasoline and oil, minerals, sugar, milk, alcohol, fertilizer, pesticides, electronic appliances, cosmetics...; trickeries on price, measurements, quality, origin, legalization of invoices, documentary evidence...to take specific and effective measures to clear away any hot spot of smuggling, trade frauds and counterfeits on administrative division;

b) Step up propaganda, public announcement of results of inspection and handling of smuggling, trade frauds and counterfeits on mass media;

c) Take interests in and provide guidance on socio-economic development in remote areas and border areas, making a contribution to stabilizing livelihood of the residents so that they will not take part or join hands with bad elements in smuggling and illegal transport of goods across the border;

3. The Ministry of National Defense:

a) Make checks and correct management and use of warehouses, workshops within the land that belongs to the national defense, stop acts of taking advantages of such warehouses to store illegally imported, traded or banned goods;

b) Direct functional forces to reinforce management of exit and entry; patrols, investigation and control of trails, pathways on a road border route north, central and southwest of the country; Northern Coast, Southern Coast to discover, deter and handle acts of smuggling, trade frauds and illegal transport of goods across the border, especially goods items such as gasoline, minerals, tobacco and consumables;

4. The Ministry of Public Security:

a) Direct functional forces, local police authorities to keep tight control of key routes, areas, instigators and raze every root of rings, networks of smuggling, transport and trading of illicit goods, clear away hot spots of smuggling, trade frauds and counterfeits; carry out key investigation into smuggling of tobacco, gasoline, alcohol, food, production and trading of counterfeits...to promptly make public announcement of results on mass media;

b) Preside over and cooperate with the Supreme People’s Procuracy, the Supreme People’s Court, and the ministries, regulatory bodies in making overall checks on current situations and difficulties in dealing with criminal acts of smuggling, trade frauds and counterfeits in the past time; propose plans for pushing investigation and imposing strict punishment according to the law; report the implementation plan to the Government (through the Ministry of Finance) before August 31, 2015;

5. The Ministry of Finance:

a) Reinforce management of taxable prices, post-customs clearance inspections, investigation and inspection of taxes; take comprehensive and drastic measures to fight loss of revenue and budget; discover and strictly deal with acts of price transfer and other trickeries for tax evasion and budget appropriation;

b) Submit to the Prime Minister the draft decision on policies on budget support to functional forces in the fight against smuggling, trade frauds and counterfeits in October 2015;

c) Cooperate with the Ministry of Health and relevant agencies in conducting research and making submission to the Prime Minister for amendments and supplements to the Decision No. 47/2013/QD-TTg dated July 29, 2013 regarding formulation and approval for regulations and organization of activities of the Fund for Tobacco Harm Prevention and Fighting, ensuring to have mechanism to use the Fund appropriately, increase efficiency of prevention and fighting of tobacco’s harmful effects including illegally imported tobacco before September 30, 2015;

d) Cooperate with the Ministry of Industry and Trade and relevant agencies in making submission to the Prime Minister for amendments and supplements to the Decision No. 72/2013/QD-TTg dated November 26, 2013 regulating financial policies toward border-gate economic zones; annul regulations on incentives of VAT, import taxes that are currently taken advantage of for frauds that cause loss to the state budget before July 31, 2015;

dd) Preside over and cooperate with relevant agencies in submitting to the Prime Minister the draft decision on promulgation of regulations on coordination in the fight against smuggling, trade frauds and counterfeits (replacing the Prime Minister’s Decision No. 65/2010/QD-TTg dated October 25, 2010) before September 30, 2015;

e) Cooperate with the Ministry of Agriculture and Rural development, the Ministry of Health, the Ministry of Industry and Trade, the Ministry of Natural Resources and Environment, the Ministry of Science and Technology, the Ministry of Information and Communications in submitting to the Government the Project for improving efficiency of inspection, investigation into food safety, hygiene, and quarantine with respect to exported goods and imported goods; inspect quality standards for exported goods and imported goods, production and trading conditions for product items within line management before June 30, 2015;

6. The Ministry of Industry and Trade:

a) Check, correct and complete policies on border trade, trade zones, policies on trading of imported and exported goods, temporary importation for exportation, clear away any act of taking advantages for smuggling and trade frauds;

b) Provide guidance on stepping up development of production and domestic markets; encourage and support businesses in building product brands and corporate brands;

c) Direct market surveillance forces to reinforce inspection and dealing with violations of trade activities; cooperate with functional forces in razing hot spots of trading illegally imported goods, counterfeit goods, goods in violation of food safety, intellectual property rights, especially in the administrative divisions of Hanoi and Ho Chi Minh City;

d) Preside over and cooperate with the Ministry of Finance in making submission to the Prime Minister for amendments and supplements to the Decision No. 254/2006/QD-TTg dated November 07, 2006 managing border trade activities with countries of the same border before June 30, 2015;

dd) Preside over and cooperate with relevant ministries, sectors in making submission to the Government for amendments and supplements to the Decree No. 185/2013/ND-CP dated November 15, 2013 regulating penalties for administrative violations of trade activities, production and trading of counterfeit goods, banned products and protection of consumers rights, and other relevant legal documents toward increasing imposition of financial punishment on acts of smuggling and transport and trade of illegally imported cigarettes;

7. The Ministry of Science and Technology

a) Reinforce management of protection of intellectual property rights; promptly make checks, amendments and supplements to the regulations on intellectual property as a way to correct newly generated issues;

b) Preside over and cooperate with relevant ministries, departments in making checks and overcoming overlap of verification of goods; gradually consolidate goods verifying organizations in order to provide results of verification quickly, accurately, conveniently; opportunely serve state inspection, investigation and dealing with acts of smuggling, trade frauds and counterfeits.

8. Annually, the Ministry of Health, the Ministry of Agriculture and Rural development, the Ministry of Industry and Trade, the Ministry of Science and Technology shall formulate and execute action plans in order to fundamentally deal with production and trading of counterfeit medicinal products; production and trading of counterfeit and poor-quality fertilizers, pesticides, veterinary medicine, animal feeds, aqua feeds, and biological preparations used in agriculture;The plan shall be sent to the National Steering Committee 389 (throughthe Ministry of Finance);

9. Government Inspectorate shall reinforce inspection of compliance with legal policies with respect to activities of investigation, inspection by state management agencies having a function of fighting smuggling, trade frauds and counterfeits in order to prevent, discover, deter and deal with violations in the fight against smuggling, trade frauds and counterfeits.

10. The Ministry of Home Affairs:

a) Preside over and cooperate withthe National Steering Committee 389, ministries, sectors and localities in proposing commendation for collectives, individuals that accomplish achievements in the fight against smuggling, trade frauds and counterfeits;

b) Cooperate with the Ministry of Justice, relevant ministries and sectors in checking and reforming administrative procedures directly related to businesses’ production and trading;

11. The Ministry of Information and Communications, Vietnam Television, Voice of Vietnam, Vietnam News Agency and other media agencies shall cooperate with the ministries, sectors and localities, functional forces in building programs of communication and propaganda about the laws, harmful effects of smuggling, trade frauds and counterfeits to increase awareness and responsibility of officials, public servants and citizens in the fight against smuggling, trade frauds and counterfeits; praise positive role models, localities and units that accomplish excellent results in the performance of their duties and at the same time criticize misconducts, corruption and lack of responsibility;

12. The Ministry of Culture, Sports and Tourism, the Ministry of Transport, the Ministry of Planning and Investment, the State Bank and relevant ministries, departments shall be responsible for carrying out implementation of solutions in the fight against smuggling, trade frauds and counterfeits within their functions and duties; take part in and coordinate the fight at the request of presiding agency or the Prime Minister, National Steering Committee 389.

13. Make proposals to the Supreme People’s Procuracy, the Supreme People’s Court for close cooperation with Governmental agencies in accelerating investigation, prosecution, adjudication of crimes involving smuggling, trade frauds and counterfeits;

14. Make proposals to Central Committee of Vietnamese Fatherland Front and member organizations for close cooperate with the ministries, departments and authorities in conducting campaigns for participation in the fight against smuggling, trade frauds and counterfeits;

15. Vietnam Chamber of Commerce and Industry, businesses, Vietnam Association for Anti-counterfeiting and Trademark Protection, enterprise associations, trade associations and media agencies shall actively cooperate with regulatory agencies in discovering, deterring and dealing with acts of smuggling, trade frauds and production, trading of counterfeits.

Ministers, heads of ministerial-level agencies, heads of governmental agencies, the Presidents ofPeople’s Committees of central-affiliated cities and provinces shall be responsible for executing this Resolution, providing instructions on the formulation of programs, plans along with other measures; On a six-month basis, carrying out preliminary and general summary including assessment of responsibilities of leaders and making the report to the National Steering Committee 389 (through the Ministry of Finance) for compilation and submission to the Government.Results of the implementation of this Resolution shall be put in assessment of performance of individualMinistries, sectors and localities at the Government’s annual meeting sessions in December./.

For the Government

The Prime Minister

Nguyen Tan Dung