Inadequacies in sanctioning violations on trading, importing and exporting civil cryptography products

The General Department of Vietnam Customs said the regulations on sanctioning administrative violations in Decree No. 58/2016/ND-CP of the Government and amended and supplemented in Decree 53/2018/ND-CP are inadequate.

In Decree 58/2016/ND-CP of the Government that is amended and supplemented in Decree 53/2018/ND-CP, it does not stipulate the fine for organisations or individuals nor narrow the competence in sanctioning administrative violations of Chairmen of People's Committee of provinces and cities directly under the Central Government.

Specifically, Point b, Clause 4, Article 9 of Decree No. 58/2016/ND-CP stipulates that the Chairman of the Provincial People's Committee can only impose a maximum fine of VND 50 million. While Point b, Clause 3, Article 38 of the Law on Handling administrative violations stipulates that the Chairman of the Provincial People's Committee can impose a fine of up to VND 200 million for the customs field.

Illustration image. Source: Internet

Also in Point d, Clause 4m, Article 9 of Decree No. 58/2016/ND-CP stipulates that the Chairman of the provincial People's Committee only has competence of confiscating exhibits and vehicles in an administrative violation case with value not exceeding the level of monetary penalty (VND 50 million). While Point d, Clause 3 Article 38 of the Law on Handling administrative violations stipulates that the Chairman of the provincial People's Committee can confiscate exhibits and vehicles in an administrative violation case without a limit value of exhibits.

According to the General Department of Vietnam Customs, these inadequacies lead to the incompletion of the customs authorities in complying with provisions of Clause 4, Article 21 of Decree No. 127/2013/ND-CP of the Government stipulating sanctioning of administrative violations and enforcement of administrative decisions in customs which is amended and supplemented in Clause 18 Article 1 of Decree 45/2016/ND-CP and Clause 6,7 Article 17 of Circular 155/2016/TT-BTC of the Ministry Finance.

Provincial Customs departments cannot transfer the handling case dossier to the Chairman of the Provincial People's Committee to issue a sanctioning decision for sale and provision of civil cryptography products and services, and import and export of civil cryptography products without a business license of civil cryptography products and services or import and export license of civil cryptography products (Point a, Clause 3, Article 8 of Decree No. 58/2016/ND-CP) with a monetary penalty level between VND 40-50 million and additional sanction of confiscating exhibits and vehicles of violation (valued at more than VND 50 million).

Currently, the General Department of Vietnam Customs is receiving dossiers of excess of jurisdiction of some provincial Customs Departments in handling these acts. Therefore, to ensure the smooth implementation of the law on sanctioning of administrative violations, the law on management and use of public assets, the General Department of Vietnam Customs recommended the Ministry of Defence conduct a review and propose the amendment of Decree 58/2016/ND-CP to stipulate the sanctioning competence of the Chairman of provincial People's Committee in consistency with the Law on Handling of Administrative Violations and synchronise the decrees on sanctioning of administrative violations in other areas given authority to the Chairman of the provincial People's Committee in sanctioning administrative violations.