DECREE

PRESCRIBING ADMINISTRATIVE FINES FOR VIOLATIONS ARISING FROM SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES, AND TECHNOLOGY TRANSFER

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Law on Government Organization dated June 20, 2012;

Pursuant to the Law on Science and Technology dated June 18, 2013;

Pursuant to the Law on Technology Transfer dated June 19, 2017;

Upon the request of the Minister of Science and Technology;

The Government hereby promulgates the Decree prescribing administrative fines for violations arising from scientific and technological activities, and technology transfer.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decree addresses violations, penalty forms, rates, correction and relief measures and authority to impose fines for administrative violations arising from scientific and technological activities, and technology transfer.

2. If administrative violations arising in the state management sector related to scientific and technological activities and technological transfers are not specified herein, regulations of the decrees on penalties for administrative violations arising in that sector shall be applied to govern imposition of appropriate penalties.

Article 2. Subjects of application

1. This Decree shall apply to individuals and organizations operating in the field of science, technology and technology transfer; persons authorized to issue the penalty notice and persons authorized to impose administrative fines for violations arising from scientific and technological activities and technology transfer.

2. Organizations specified in clause 1 of this Article shall comprise:

a) Scientific and technological organizations defined in the Law on Science and Technology;

b) Economic organizations prescribed in the Law on Enterprises;

c) Economic organizations stipulated in the Law on Cooperatives;

d) State regulatory authorities committing any violation that is not within the assigned scope of the state management;

dd) Socio-political organizations, political and socio-professional organizations, social organizations and socio-professional organizations;

e) Other organizations established under law.

3. Business households or cooperative associations violating regulations laid down herein shall be subject to the same fines as those imposed on violating individuals.

Article 3. Penalty forms, rates and imposition authority

1. Any individual or organization committing each administrative violation arising from scientific and technological activities or technology transfer shall be subject to one of administrative penalties, such as warning or fine.

2. The maximum fine imposed on individuals and organizations involved in scientific and technological activities or technology transfer shall be 50,000,000 dong and 100,000,000 dong, respectively.

3. The fine rate specified in Chapter II herein shall be applied to violating individuals. Organizations committing the same violations shall have to pay 02 times as much as the fine rate applied to individuals.

4. Depending on the nature and degree of violation, the violating individual or organization may be subject to one or multiple supplementary fines as follows:

a) Depriving of rights to use the followings within the period from 01 to 03 months: Science and technology registration certificates, certificates of operations of representative offices, branches, technology transfer certificates, information technology registration certificates, certificates of registration of extension, revision and supplementation of contents of technology transfer, certificates of conformance to licensing requirements for technology assessment and testing services;

b) Confiscating exhibits and means used for committing administrative violations

5. Authority to impose fines delegated to persons holding professional titles specified in Chapter III herein shall be applied to an administrative violation committed by an individual: In case of imposition of a fine, authority to impose a fine on an organization shall be 02 times as much as the authority to impose a fine on an individual.

Article 4. Mitigation and relief measures

The organization or individual committing an administrative violation may be bound by one or multiple mitigation or relief measures:

1. Compulsory rectification of incorrect information.

2. Compulsory disgorgement of illegal gains from commission of violations.

3. Compulsory elimination of dossiers or documents containing false data and information.

4. Compulsory destruction of inauthentic reports on scientific research progress, contents and discoveries.

5. Compulsory return of illegally appropriated sums.

6. Compulsory surrender of sums used for wrong or recurring purposes.

7. Compulsory handover of overdue sums.

8. Compulsory movement across the borders of the Socialist Republic of Vietnam or compulsory re-export of goods, objects, equipment and means.

9. Compulsory destruction of award recognition results.

10. Compulsory distribution at the predefined ratios of profits from commercialization of scientific research discoveries and technological developments.

Chapter II

ADMINISTRATIVE VIOLATIONS ARISING FROM SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES, AND TECHNOLOGY TRANSFER

Section 1. ADMINISTRATIVE VIOLATIONS ARISING FROM SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES, PENALTY FORMS, RATES AND MITIGATION OR RELIEF MEASURES

Article 5. Violations against regulations on functions of the science and technology board

1. Giving a warning to any member of the science and technology board that fails to comply with procedures, make assessments or give scores in violation of criteria decided by competent regulatory authorities when counseling, verifying, selecting, assessing and conducting the acceptance testing on science and technology tasks.

2. Imposing the fine ranging from 500,000 dong to 1,000,000 dong on any member of the science and technology board that discloses or provides information related to the process of assessment, comments and advisory results without consent from the board's founder.

Article 6. Violations against regulations on registration of information about science and technology tasks using state budget allocations

1. Imposing the fine ranging from 1,000,000 dong to 2,000,000 dong for failure to register scientific research discoveries and technological developments purchased by using state budget allocations assigned to competent regulatory authorities.

2. Imposing the fine ranging from 2,000,000 dong to 4,000,000 dong for failure to register achievements in scientific and technological tasks performed by using state budget allocations assigned to competent regulatory authorities.

Article 7. Violations against regulations on science and technology activities

1. Issuing a warning against the violation in which science and technology tasks using state budget allocations are performed after the defined duration without consent from competent regulatory authorities.

2. Imposing the fine ranging from 1,000,000 dong to 2,000,000 dong for submission of dossiers and documents necessary for assessment and acceptance testing of scientific and technological achievements that contain false data and information.

3. Imposing the fine ranging from 2,000,000 dong to 4,000,000 dong for one of the following violations:

a) Declaration of false information included in the application package for direct selection and assignment of science and technology tasks;

b) Inauthentic report on scientific and technological research progress, contents and scientific research discoveries.

4. Mitigation and relief measures

a) Compulsory revocation of dossiers and documents containing false data and information shall be deemed as relief for violations prescribed in clause 2 and point a of clause 3 of this Article;

b) Compulsory revocation of incorrect reports on research progress, contents and scientific research discoveries shall be deemed as relief for the violation stated in point b of clause 3 of this Article.

Article 8. Violations against regulations on reporting, registration, commencement of operations and dissolution of science and technology organizations

1. Imposing the fine ranging from 1,000,000 dong to 2,000,000 dong for failure to make performance review reports as required by competent regulatory authorities.

2. Imposing the fine ranging from 2,000,000 dong to 4,000,000 dong for failure to report to the Ministry of Science and Technology on establishment of its directly-controlled overseas science and technology organization, representative office or branch within the stipulated period of 30 days of receipt of the establishment license.

3. Imposing the fine ranging from 4,000,000 dong to 6,000,000 dong for one of the following violations:

a) Failure to register operations at competent regulatory authorities within 60 days from the establishment date;

b) Failure to register change or supplementation of certificate of registration of scientific and technological operations within 12 month from the date of change or supplementation of information inscribed on the certificate of registration of scientific and technological operations.

4. Imposing the fine ranging from 6,000,000 dong to 8,000,000 dong for failure to conform to procedures and processes for dissolution of an science and technology organization under the provisions of clause 3 of Article 16 in the Government’s Decree No. 08/2014/ND-CP dated January 27, 2014, elaborating on and providing instructions about implementation of several articles of the Law on Science and Technology.

5. Imposing the fine ranging from 8,000,000 dong to 10,000,000 dong for one of the following violations:

a) Performing scientific and technological operations without obtaining the certificate of registration of operations of the representative office or branch, and the certificate of establishment of the representative office or branch of the foreign science and technology organization;

b) Performing scientific and technological operations inconsistent with the scope of operations specified in the certificate of registration of scientific and technological operations and the certificate of operation of the representative office or branch, or the certificate of establishment of the representative office or branch of the foreign science and technology organization;

c) Failure to sustain operational conditions that are the same as those informed upon the registration of scientific and technological operations.

6. Imposing the fine ranging from 10,000,000 dong to 14,000,000 dong for one of the following violations:

a) Performing scientific and technological operations when the certificate of operation of representative office or branch or the certificate of establishment of the representative office or branch of the foreign science and technology organization is suspended or revoked by competent regulatory authorities;

b) Leasing or lending the certificate of registration of scientific and technological operations, the certificate of operation of the representative office or branch, or the certificate of establishment of the representative office or branch of the foreign science and technology organization.

7. Imposing the fine ranging from 14,000,000 dong to 18,000,000 dong for use of documents containing incorrect information included in the application package for grant of the certificate of registration of scientific and technological operations, the certificate of operation of the representative office or branch, or the certificate of establishment of the representative office or branch of the foreign science and technology organization.

8. Imposing the fine ranging from 18,000,000 dong to 30,000,000 dong for establishment of overseas science and technology organization directly controlled by the Ministry of Science and Technology, the representative office or branch without the Ministry’s consent;

9. Supplementary penalties:

Depriving any science and technology organization committing violations referred to in point b of clause 5 or point b of clause 6 of this Article of the right to use the certificate of registration of scientific and technological operations, or the certificate of operation of the representative office or branch, for the period from 01 to 03 months.

10. Mitigation and relief measures:

Forced destruction of documents containing false information shall be deemed as relief for the violation specified in clause 7 of this Article.

Article 9. Violations against regulations on assessment and rating of public science and technology organizations

1. Imposing the fine ranging from 8,000,000 dong to 12,000,000 dong for failure to conform to the requirement for assessment serving state management demands of competent regulatory authorities.

2. Imposing the fine ranging from 12,000,000 dong to 20,000,000 dong for one of the following violations:

a) Carrying out the assessment and rating by wrongfully applying the assessment method or criteria;

b) Failing in public disclosure of assessment or rating results as required by law.

Article 10. Violations against regulations on possession and use of scientific discoveries and technological developments

1. Giving warnings for use of scientific research discoveries, data and information of other persons or entities in scientific reports or documentation without clearly citing sources of these discoveries.

2. Imposing the fine ranging from 6,000,000 dong to 10,000,000 dong for one of the following violations:

a) Failure to report to the state owner’s representative on outcomes of exploitation, transfer or assignment of the right to own or use scientific research discoveries and technological developments;

b) Failure to inform the state owner’s representative when having no longer had the capability of exploiting the right to use scientific research discoveries and technological developments;

c) Failure to comply with authorization decisions issued by competent regulatory authorities.

3. Imposing the fine ranging from 10,000,000 dong to 14,000,000 dong for one of the following violations:

a) Using and publicizing data, technological process and information relating to a scientific and technological achievement under the ownership of another person or entity to complete and develop the one of their own for sale or for intellectual property registration purposes without obtaining consent from that person or entity;

b) Registering and publicizing scientific research discoveries of another person or entity without having yet to obtain permission from that person or entity;

c) Using technical inventions or advances, rationalizing the technological process or scientific research discoveries of another person or entity for use in applying for participation in scientific and technological exhibitions, contests or awards without their permission.

4. Mitigation and relief measures:

a) Compulsory ratification of false information with respect to violations specified in clause 3 of this Article;

b) Compulsory disgorgement of illegal gains from commission of violations defined in clause 3 of this Article.

Article 11. Violations against regulations on application and dissemination of scientific and technological achievements

1. Imposing the fine ranging from 1,000,000 dong to 2,000,000 dong for one of the following violations:

a) Failure to send a report on use of expenditures on scientific and technological activities upon the request of competent regulatory authorities;

b) Failure to conduct researches in forming scientific bases before and during the process of making investment and responding to scientific and technological issues arising in such process;

c) Failure to correctly and fully conform to assessment conclusions pertaining to legal bases upon the request of competent regulatory authorities.

2. Imposing the fine ranging from 2,000,000 dong to 4,000,000 dong for dissemination of analysis, testing and assessment results without consent from the procuring state agencies.

3. Imposing the fine ranging from 4,000,000 dong to 8,000,000 dong for failure to directly apply or get involved in applying scientific research discoveries to production and daily life activities with respect to those discoveries coming from performing scientific and technological tasks using state budget allocations, bound by commitments and oriented towards production and daily life activities.

4. Imposing the fine ranging from 8,000,000 dong to 12,000,000 dong for application of achievements in implementation of scientific and technological tasks not using state budget allocations to production and daily life activities and subject to legally prescribed assessments which, however, have not yet been carried out by competent regulatory authorities.

5. Mitigation and relief measures:

Compulsory disgorgement of illegal gains from commission of the violation defined in clause 2 of this Article.

Article 12. Violations against regulations on transfer, disposition and provision of information about scientific and technological achievements

1. Imposing the fine ranging from 8,000,000 dong to 12,000,000 dong for one of the following violations:

a) Transferring scientific and technological achievements without having yet to obtain permission from the owner;

b) Providing data and information obtained from rendering analysis, testing, consulting or assessment services for personal financial gain without receiving permission from the owners of such data and information;

c) Fabricating false information or abusing provision of information about scientific and technological achievements of one’s own to cause impacts on legitimate rights and benefits of other organizations and individuals.

2. Mitigation and relief measures:

Compulsory disgorgement of illegal gains from commission of the violation defined in clause 1 of this Article.

Article 13. Violations against regulations on registration, management and use of the science and technology development fund

1. Imposing the fine ranging from 4,000,000 dong to 8,000,000 dong for one of the following violations:

a) Failure to inform establishment of the science and technology development fund to competent regulatory authorities in charge of science and technology in accordance with regulations in force;

b) Failure to report on setting up and using the science and technology development fund upon the request of competent regulatory authorities.

2. Imposing the fine ranging from 8,000,000 dong to 12,000,000 dong for management and use of the science and technology development fund in contrast to registration contents.

3. Imposing the fine ranging from 12.000.000 dong to 20,000,000 dong for management and use of the science and technology development fund in contrast to registration contents.

4. Imposing the fine ranging from 20,000,000 dong to 30,000,000 dong for failure to repay loans from the science and technology development fund that is derived from state budget allocations by due dates without consent from competent regulatory authorities.

5. Imposing the fine ranging from 30,000,000 dong to 40,000,000 dong for failure of state enterprises to retain at least 3% of their assessable income to set up the science and technology development fund.

6. Imposing the fine ranging from 40,000,000 dong to 50,000,000 dong for failure of state enterprises to retain their assessable income to set up the science and technology development fund.

7. Mitigation and relief measures:

a) Compulsory reimbursement of overdue sums owing to commission of the violation prescribed in clause 4 of this Article;

b) Compulsory disgorgement of illegal gains from commission of the violation defined in clause 5 and 6 of this Article.

Article 14. Violations against regulations on creation and awarding of scientific and technological prizes

1. Imposing the fine ranging from 20,000,000 dong to 30,000,000 dong for one of the following violations:

a) Creating and awarding scientific and technological prizes for illegal financial gain;

b) Creating scientific and technological prizes for research projects including components prohibited by law.

2. Mitigation and relief measures:

a) Compulsory disgorgement of illegal gains from commission of the violation defined in point a of clause 1 of this Article;

b) Compulsory elimination of results of recognition of prizes and compulsory rectification of false information existing due to commission of the violation specified in point b of clause 1 of this Article.

Article 15. Violations against regulations on management and use of state budget expenditures on scientific and technological activities

1. Imposing the fine ranging from 10,000,000 dong to 20,000,000 dong for one of the following violations:

a) Using scientific and technological research expenditures for wrongful purposes;

b) Using scientific and technological research expenditures identical to other funding sources.

2. Imposing the fine ranging from 20,000,000 dong to 30,000,000 dong for failure to repay finances derived from state budget by due dates without consent from competent regulatory authorities.

3. Mitigation and relief measures:

a) Compulsory reimbursement of sums used for wrongful purposes or identical to others owing to commission of the violation defined in clause 1 of this Article;

a) Compulsory reimbursement of overdue sums owing to commission of the violation prescribed in clause 2 of this Article;

c) Compulsory disgorgement of illegal gains from commission of the violation defined in clause 2 of this Article.

Section 2. ADMINISTRATIVE VIOLATIONS ARISING FROM TECHNOLOGY TRANSFER, PENALTY FORMS, RATES AND MITIGATION OR RELIEF MEASURES

Article 16. Violations against regulations on reporting of technological transfer, assessment and testing

1. Imposing the fine ranging from 1,000,000 dong to 2,000,000 dong for one of the following violations:

a) Failure to send the previous year’s report on implementation of the contract for transfer of the technology already obtaining the technology transfer license to competent regulatory authorities;

b) Failure to report to the competent regulatory authorities in charge of science and technology affairs at the place where the technology transfer takes place when disseminating and transferring technologies for crop and livestock production, storage and processing of agricultural, forestry, fishery and salt products at rural, mountainous, island areas or those areas facing socio-economic disadvantages or special socio-economic disadvantages.

2. Imposing the fine ranging from 2,000,000 dong to 4,000,000 dong for failure to periodically send annual reports on results of technological assessment and testing to the receiving competent regulatory authority stipulated by law on technology transfer.

3. Imposing the fine ranging from 4,000,000 dong to 8,000,000 dong for failure to report to competent regulatory authority that has assessed or commented on the transferred technology when making any change or adjustment in contents of the transferred technology.

Article 17. Violations arising from making the request for approval of technology transfer, registering extension, revision and supplementation of contents of the transferred technology, or granting technology transfer license

1. Imposing the fine ranging from 2,000,000 dong to 4,000,000 dong for declaration of false information included in request documents for approval of technology transfer.

2. Imposing the fine ranging from 4,000,000 dong to 8,000,000 for failure to complete procedures for registration of extension, revision and supplementation of technology transfer contents when there is an agreement on extension, revision and supplementation of contents of technology transfer required to be registered.

3. Imposing the fine ranging from 8,000,000 dong to 12,000,000 dong for failure to implement procedures for grant of new technology transfer license when changing contents of the technology subject to transfer restriction that has already obtained technology transfer license.

4. Mitigation and relief measures:

Forced destruction of documents containing false data and information shall be deemed as relief for the violation specified in clause 1 of this Article.

Article 18. Violations on obligations to distribute profits earned from commercialization of scientific research discoveries and technological developments funded by the state budget

1. Imposing the fine ranging from 8,000,000 dong to 12,000,000 dong for failure to meet the prescribed distribution ratio of profits earned from commercialization of scientific research discoveries and technological developments.

2. Imposing the fine ranging from 12,000,000 dong to 20,000,000 dong for failure to distribute profits earned from commercialization of scientific research discoveries and technological developments.

3. Mitigation and relief measures:

a) Compulsory distribution of profits at the defined ratio with respect to those profits earned from commercialization of scientific research discoveries and technological developments shall be deemed as relief for violations specified in clause 1 and 2 of this Article;

b) Compulsory disgorgement of illegal gains from commission of any violation defined in clause 1 and 2 of this Article.

Article 19. Violations arising from technology transfer at rural, mountainous, island areas or those areas facing socio-economic disadvantages or special socio-economic disadvantages

Imposing the fine ranging from 12,000,000 dong to 20,000,000 dong for implementation of programs and projects for popularizing plant varieties, animal breeds or technologies for crop and animal production, storage and processing of agricultural, forestry, fishery and salt products at rural, mountainous, island areas or those areas facing socio-economic disadvantages or special socio-economic disadvantages without any content of technology transfer.

Article 20. Violations against incentive policies for technology transfer, application and innovation, support for and promotion of development of the scientific and technological market

1. Imposing the fine ranging from 4,000,000 dong to 10,000,000 dong for any fraudulent or deceitful acts during the process of preparation of application documents for recognition of scientific research discoveries and technological developments that are not funded by the state budget.

2. Imposing the fine ranging from 10,000,000 dong to 20,000,000 dong for failure to repay subsidies from the State by due dates in accordance with regulations when the certificate of registration of technology transfer is revoked.

3. Imposing the fine ranging from 20,000,000 dong to 30,000,000 dong for misuse of the State subsidies as prescribed in clause 4 of this Article.

4. Imposing the fine ranging from 30,000,000 dong to 40,000,000 dong for any fraudulent or deceitful act performed to receive one of the following support and preferential policies from the State in accordance with law on technology transfer

a) Support for enterprises running the projects in the sector or industry or areas given investment incentives that receive technologies transferred from science and technology entities;

b) Preferential treatment given to enterprises cooperating with other entities or persons in implementing investment projects in technological innovation, innovative startup and development of infrastructure intended for scientific and technological development as well as joint research activities;

c) Support or advantages given to infrastructure – engineering investment for technology deciphering activities; entities or persons carrying out technology deciphering activities;

d) Support given to science and technology organizations whose activities are linked to local technology application and transfer organizations in order to complete scientific research discoveries and technological developments to meet particular conditions of localities;

dd) Financial support and other support given to purchase scientific research discoveries and technological developments at the expense of entities or persons;

e) Purchase of inventions and innovations which are then transferred to enterprises before being applied and publicly disclosed to people;

g) Financial support or other support given to purchase scientific research discoveries and technological developments created by domestic entities or persons on their own to make national, key and mainline products;

h) Support given to entities or persons performing scientific and technological tasks to develop technologies and complete national, key and mainline products;

i) Support given to provide training, refresher courses and incentives for entities or persons involved in commercialization of scientific research discoveries and technological developments, and development of science and technology markets;

k) Support for development of intermediaries operating in science and technology markets.

5. Mitigation and relief measures:

a) Compulsory reimbursement of overdue sums owing to commission of any violation prescribed in clause 2 of this Article;

a) Compulsory reimbursement of misused sums owing to commission of the violation defined in clause 3 of this Article;

c) Compulsory disgorgement of illegal gains from commission of any violation defined in clause 2, 3 and 4 of this Article;

d) Forced destruction of documents containing false data and information shall be deemed as relief for the violation specified in clause 1 and 4 of this Article.

Article 21. Violations arising from technology transfer service business

1. Imposing the fine ranging from 6,000,000 dong to 10,000,000 dong for business of technology assessment and testing services without having related documents and means kept in custody or handed over to service users after completion of such services under agreements.

2. Imposing the fine ranging from 10,000,000 dong to 20,000,000 dong for one of the following violations:

a) Failure to uphold conditions necessary for provision of technology assessment services under Article 33 in the Government’s Decree No. 76/2018/ND-CP dated May 15, 2018, elaborating and providing instructions on implementation of several articles of the Law on Technology Transfer;

b) Failure to uphold conditions necessary for provision of technology testing services under Article 36 in the Government’s Decree No. 76/2018/ND-CP dated May 15, 2018, elaborating and providing instructions on implementation of several articles of the Law on Technology Transfer;

c) Supplementation, expansion and narrowing of the extent of assessment and testing technology or change of technology assessment and testing experts without implementing procedures for revision and supplementation of the certificate of fulfillment of requirements for provision of technology assessment and testing services.

3. Imposing the fine ranging from 20,000,000 dong to 30,000,000 dong for business of technology assessment and testing services without obtaining the certificate of fulfillment of requirements for provision of technology assessment and testing services.

4. Supplementary penalties:

Depriving of the right to use the certificate of fulfillment of requirements for provision of technology assessment and testing services for the duration of 1 - 3 months shall be deemed as relief for the violation defined in clause 2 of this Article.

Article 22. Violations arising from making and executing technology transfer contracts, technology transfer service contracts, contents of technology transfer in terms, conditions and appendices of investment project contracts and documentation

1. Imposing the fine ranging from 12,000,000 dong to 20,000,000 dong for failure to make written contracts upon independent technology transfer or capital contribution made by using technologies.

2. Imposing the fine ranging from 20,000,000 dong to 30,000,000 dong for one of the following violations:

a) Performing any fraudulent or deceitful act during the process of making technology transfer contracts or contents of technology transfer in terms, conditions of and appendices to investment project contracts and documentation for the purposes of being granted the certificate of registration of technology transfer or the technology transfer license;

b) Continuing to execute technology transfer contracts or contents of technology transfer in terms, conditions of and appendices to investment project contracts or documentation with no regard to the project suspension decision or the contract cancellation decision or the decision on revocation of the technology transfer license, the certificate of registration of technology transfer, the certificate of registration of extension, revision and supplementation of contents of technology transfer or the decision on termination of operations of investment project, issued by competent regulatory authorities;

c) Failing to conform to requirements included in the technology transfer license, the certificate of registration of technology transfer or the certificate of registration of extension, revision and supplementation of contents of technology transfer that has already been issued.

3. Imposing the fine ranging from 30,000,000 dong to 40,000,000 dong for one of the following violations:

a) Failing to carry out the valuation based on technology valuation counsels when transferring technology between parties, one or several of whom hold state capital;

b) Failing to audit prices in the form of appraisal of the transferred technology when transferring it between parties whose relationship exists in the model of parent company and subsidiary upon the request of the tax authority;

c) Failing to audit prices in the form of appraisal of the transferred technology when transferring it between parties engaged in transfer pricing under law on taxes upon the tax authority’s request.

4. Supplementary penalties:

Depriving of the right to use the certificate of registration of technology transfer, the certificate of registration of extension, revision and supplementation of contents of technology transfer or the technology transfer license for the period from 01 to 03 months shall be deemed as supplementary penalty for the violation defined in point c of clause 2 of this Article.

5. Mitigation and relief measures:

a) Compulsory elimination of dossiers and documents containing false data and information shall be deemed as relief for the violation defined in point a of clause 2 of this Article;

b) Compulsory disgorgement of illegal gains from commission of any violation defined in point b and c of clause 2 and clause 3 of this Article.

Article 23. Violations arising from deciding to invest in construction projects using technologies

1. Imposing the fine ranging from 10,000,000 dong to 14,000,000 dong for the decision to invest in construction projects at risk of causing adverse environmental impacts, as provided in law on environmental protection, which use technologies without obtaining assessment results or opinions on these technologies from competent regulatory authorities.

2. Imposing the fine ranging from 14,000,000 dong to 18,000,000 dong for grant of the decision to invest in construction projects using technologies subject to transfer restriction without obtaining assessment results or opinions about these technologies from competent regulatory authorities.

Article 24. Violations arising from use of technologies obtaining approval or permits from competent entities

Imposing the fine ranging from 20,000,000 dong to 30,000,000 dong for use of technologies which are not the same as those approved or licensed by competent regulatory authorities.

Article 25. Violations arising from registration of technology transfer

1. Imposing the fine ranging from 30,000,000 dong to 40,000,000 dong for one of the following violations:

a) Making the inbound transfer of technologies from abroad to Vietnam without obtaining the certificate of registration of technology transfer;

b) Making the outbound transfer of technologies from Vietnam to foreign countries without obtaining the certificate of registration of technology transfer;

c) Making the domestic transfer funded by the state capital or state budget without obtaining the certificate of registration of technology transfer, except where the certificate of registration of scientific and technological achievements has already been issued.

2. Supplementary penalties:

Confiscating exhibits or means used for commission of administrative violations defined in clause 1 of this Article.

Article 26. Violations arising from transfer of technologies in the list of technologies subject to transfer restriction or those in the list of technologies subject to transfer prohibition

1. Imposing the fine ranging from 30,000,000 dong to 40,000,000 dong for transfer of technologies in the list of technologies subject to transfer restriction without obtaining the technology transfer license.

2. Imposing the fine ranging from 40,000,000 dong to 50,000,000 dong for the transfer of technologies from Vietnam to foreign countries or from abroad to Vietnam in the list of technologies subject to transfer prohibition.

3. Supplementary penalties:

Confiscating exhibits or means used for commission of administrative violations defined in clause 1 of this Article.

4. Mitigation and relief measures:

Compulsory movement across the borders of the Socialist Republic of Vietnam or compulsory re-export of goods, objects, equipment and means shall be deemed as relief for any violation defined in clause 2 of this Article applied to the inbound transfer of technologies from abroad to Vietnam.

Chapter III

AUTHORITY TO ISSUE PENALTY NOTICES, IMPOSE ADMINISTRATIVE FINES AND APPLY MEASURES FOR MITIGATION AND RELIEF OF CONSEQUENCES RELATED TO SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES AND TECHNOLOGY TRANSFERS

Article 27. Authority to issue penalty notices

1. Persons authorized to impose administrative fines shall be regulated in Article 18 through Article 34 herein.

2. Public officers or servants working for entities specified in Article 28 through Article 34 herein shall be tasked with examining, inspecting and detecting administrative violations arising from scientific and technological activities and technology transfers.

Article 28. Authority of the inspectorate specialized in science and technology affairs

1. Inspectors or persons assigned to carry out specialized inspections on duty shall be vested with the following rights:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 500,000 dong;

c) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 500,000 dong.

2. The Chief Inspector of Department or Director of the Standard, Metrology and Quality Sub-Department controlled by the Department of Science and Technology shall be vested with the following rights:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 25,000,000 dong;

c) Deprive of the right to use the followings within the definite term: Science and technology registration certificates, certificates of operations of representative offices, branches, technology transfer certificates, information technology registration certificates, certificates of registration of extension, revision and supplementation of contents of technology transfer, certificates of conformance to licensing requirements for technology assessment and testing services;

d) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 25,000,000 dong;

dd) Apply mitigation and relief measures against consequences as stipulated in Article 4 herein.

3. The leader of the inspection group at the department level, the leader of the specialized inspection group affiliated to the Directorate for Standards, Metrology, and Quality, the leader of the specialized inspection group affiliated to the Department of Radiation and Nuclear Safety and the Chief Inspector of the Department of Radiation and Nuclear Safety shall be accorded authority to impose penalties as prescribed in clause 2 of this Article.

4. The leader of the specialized inspection group affiliated to the Ministry of Science and Technology shall be vested with the following rights:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 35,000,000 dong;

c) Deprive of the right to use the followings within the definite term: Science and technology registration certificates, certificates of operations of representative offices, branches, technology transfer certificates, information technology registration certificates, certificates of registration of extension, revision and supplementation of contents of technology transfer, certificates of conformance to licensing requirements for technology assessment and testing services;

d) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 35,000,000 dong;

dd) Apply mitigation and relief measures against consequences as stipulated in Article 4 herein.

5. The Chief Inspectors of Ministries and the Director of the Directorate for Standards, Metrology, and Quality, the Director of the Department of Radiation and Nuclear Safety affiliated to the Ministry of Science and Technology shall be vested with the following rights:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 50,000,000 dong;

c) Deprive of the right to use the followings within the definite term: Science and technology registration certificates, certificates of operations of representative offices, branches, technology transfer certificates, information technology registration certificates, certificates of registration of extension, revision and supplementation of contents of technology transfer, certificates of conformance to licensing requirements for technology assessment and testing services;

d) Seize any exhibit or means used in commission of administrative violation;

dd) Apply mitigation and relief measures against consequences as stipulated in Article 4 herein.

Article 29. Authority delegated to Chairman/Chairwoman of People's Committee

1. The Chairman/Chairwoman of the commune-level People’s Committee shall be accorded the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 5,000,000 dong;

c) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 5,000,000 dong.

2. The Chairman/Chairwoman of the district-level People’s Committee shall be accorded the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 25,000,000 dong;

c) Deprive of the right to use the followings within the definite term: Science and technology registration certificates, certificates of operations of representative offices, branches, technology transfer certificates, information technology registration certificates, certificates of registration of extension, revision and supplementation of contents of technology transfer, certificates of conformance to licensing requirements for technology assessment and testing services;

d) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 25,000,000 dong;

dd) Apply mitigation or relief measures against consequences as stipulated in clauses 1, 2, 3, 4, 5, 6, 7, 9 and 10 of Article 4 herein.

3. The Chairman/Chairwoman of the provincial-level People’s Committee shall be accorded the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 50,000,000 dong;

c) Deprive of the right to use the followings within the definite term: Science and technology registration certificates, certificates of operations of representative offices, branches, technology transfer certificates, information technology registration certificates, certificates of registration of extension, revision and supplementation of contents of technology transfer, certificates of conformance to licensing requirements for technology assessment and testing services;

d) Seize any exhibit or means used in commission of administrative violation;

dd) Apply mitigation and relief measures against consequences as stipulated in Article 4 herein.

Article 30. Authority delegated to the People’s Public Security

1. Soldiers of the People’s Public Security on duty shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 500,000 dong.

2. Heads who supervise those referred to in Clause 1 of this Article shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 1,500,000 dong.

3. Sheriffs of commune-level police units, Commanders of police stations and Heads of police stations at border checkpoints or export processing zones shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 2,500,000 dong;

c) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 2,500,000 dong.

4. Sheriffs of the district-level Police and Heads of provincial-level Police Divisions, including: Head of the Internal Political Security Division, Head of the Economic Security Division, Head of the Cybersecurity, Prevention and Control of Hi-Tech Crimes, Head of the Office Division for Administrative Management of Public Order, Head of the Division for Prevention and Control of Environmental Crimes, Head of the Police Division for Investigation into Crimes related to Corruption, Economy and Smuggling; Heads of Operations Divisions affiliated to: Internal Political Security Department, Economic Security Department, Department of Cybersecurity, Prevention and Control of Hi-Tech Crimes, Police Department for Administrative Management of Public Order, Police Department for Prevention and Control of Environmental Crimes, and Police Department for Investigation into Crimes related to Corruption, Economy and Smuggling, shall be vested with the following rights:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 10,000,000 dong;

c) Deprive of the right to use the followings within the definite term: The Certificate of registration of scientific and technological activities and the certificate of operation of representative office or branch;

d) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 10,000,000 dong.

5. Director of the province-level Police Department shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 25,000,000 dong;

c) Deprive of the right to use the followings within the definite term: The Certificate of registration of scientific and technological activities and the certificate of operation of representative office or branch;

d) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 25,000,000 dong.

6. Directors of Internal Political Security Department, Economic Security Department, Department of Cybersecurity, Prevention and Control of Hi-Tech Crimes, Police Department for Administrative Management of Public Order, Police Department for Prevention and Control of Environmental Crimes, and Police Department for Investigation into Crimes related to Corruption, Economy and Smuggling, shall be vested with the following rights:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 50,000,000 dong;

c) Deprive of the right to use the followings within the definite term: The Certificate of registration of scientific and technological activities and the certificate of operation of representative office or branch;

d) Seize any exhibit or means used in commission of administrative violation.

Article 31. Authority delegated to customs authorities

1. Customs officers on duty shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 500,000 dong.

2. Team leaders of Customs Subdepartments and team leaders of Post-clearance Inspection Subdepartments shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 5,000,000 dong.

3. Directors of Customs Subdepartments, Directors of Post-clearance Inspection Subdepartments, Leaders of Control Teams of provincial, inter-provincial or centrally-affiliated city Customs Departments, Leaders of Smuggling Control Teams, Leaders of Customers Procedures Teams, Leaders of Maritime Control Teams and Leaders of Intellectual Property Right Control and Protection Teams subordinate to the Smuggling Investigation and Prevention Department, a subsidiary of the General Department of Customs, shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 25,000,000 dong;

c) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 25,000,000 dong;

d) Apply corrective measures to mitigate consequences as stipulated in clause 8 of Article 4 herein.

4. Director of the Smuggling Investigation and Prevention Department, Director of the Post-clearance Inspection Department, a subsidiary of the General Department of Customs, and Directors of the provincial, inter-provincial or centrally-affiliated city Customs Departments, shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 50,000,000 dong;

c) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 50,000,000 dong;

d) Apply corrective measures to mitigate consequences as stipulated in clause 8 of Article 4 herein.

5. Director of the General Department of Customs shall be accorded the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 50,000,000 dong;

c) Seize any material object or equipment used in commission of administrative violation;

d) Apply corrective measures to mitigate consequences as stipulated in clause 8 of Article 4 herein.

Article 32. Authority delegated to the Market Surveillance Authority

1. The Chief of the Market Surveillance Team shall be accorded the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 25,000,000 dong;

c) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 25,000,000 dong.

2. Director of the Market Surveillance Operation Department and Director of the Market Surveillance Department at the provincial level affiliated to the Vietnam Directorate of Market Surveillance shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 50,000,000 dong;

c) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 50,000,000 dong;

d) Deprive of the right to use the followings within the definite term: Certificate of fulfillment of requirements for provision of technology assessment and testing.

3. General Director of the Vietnam Directorate of Market Surveillance shall be accorded the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 50,000,000 dong;

c) Seize any material object or equipment used in commission of administrative violation;

d) Deprive of the right to use the followings within the definite term: Certificate of fulfillment of requirements for provision of technology assessment and testing.

Article 33. Authority delegated to tax authorities

1. Director of the Tax Department shall be vested with the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 35,000,000 dong;

c) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 35,000,000 dong;

d) Apply corrective measures to mitigate consequences as stipulated in clause 2 of Article 4 herein.

2. General Director of the General Department of Taxation shall be accorded the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 50,000,000 dong;

c) Seize any material object or equipment used in commission of administrative violation;

d) Apply corrective measures to mitigate consequences as stipulated in clause 2 of Article 4 herein.

Article 34. Authority delegated to the Inspector or person authorized to carry out other specialized inspections

1. Inspectors or persons assigned to carry out other specialized inspections on duty shall be vested with the following rights:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 500,000 dong;

c) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 500,000 dong.

2. The Chief Inspector of Department and persons holding titles specified in clause 2 of Article 46 in the Law on Handling of Administrative Violations, except those titles of the Chief Inspector of the State Securities Commission; Director of the Subdepartment of Food Safety and Hygiene; Director of the Subdepartment of Population – Family Planning affiliated to the Department of Health shall, under their assigned functions, duties and rights, have the following rights:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 25,000,000 dong;

c) Deprive of the right to use the followings within the definite term: Science and technology registration certificates, certificates of operations of representative offices, branches, technology transfer certificates, information technology registration certificates, certificates of registration of extension, revision and supplementation of contents of technology transfer, certificates of conformance to licensing requirements for technology assessment and testing services;

d) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 25,000,000 dong;

dd) Apply mitigation and relief measures against consequences as stipulated in Article 4 herein.

3. Leader of the specialized inspection group of Department and Leader of the specialized inspection group of General Department, Department or equivalent who are authorized by the Government to perform the functions of specialized inspection under their assigned functions, duties and rights shall be accorded authority to impose penalties as provided in clause 2 of this Article.

4. Leaders of the specialized inspection groups at the ministerial level shall, under their assigned functions, duties and rights, have the following powers:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 35,000,000 dong;

c) Deprive of the right to use the followings within the definite term: Science and technology registration certificates, certificates of operations of representative offices, branches, technology transfer certificates, information technology registration certificates, certificates of registration of extension, revision and supplementation of contents of technology transfer, certificates of conformance to licensing requirements for technology assessment and testing services;

d) Confiscate any exhibit or means used for commission of administrative violation which is worth up to 35,000,000 dong;

dd) Apply mitigation and relief measures against consequences as stipulated in Article 4 herein.

5. The Chief Inspectors of Ministries or Ministerial-level agencies and persons holding titles stipulated in clause 4 of Article 46 in the Law on Handling of Administrative Violation shall, within their assigned functions, duties and powers, have the following delegated authority:

a) Impose penalties represented in the form of warning;

b) Impose a fine of up to 50,000,000 dong;

c) Deprive of the right to use the followings within the definite term: Science and technology registration certificates, certificates of operations of representative offices, branches, technology transfer certificates, information technology registration certificates, certificates of registration of extension, revision and supplementation of contents of technology transfer, certificates of conformance to licensing requirements for technology assessment and testing services;

d) Seize any exhibit or means used in commission of administrative violation;

dd) Apply mitigation and relief measures against consequences as stipulated in Article 4 herein.

Article 35. Apportionment of authority of Inspectors, persons assigned to perform specialized inspection duties in the science and technology sector, Chairmen/Chairwomen of People’s Committees, People’s Public Security, Customs, Market Surveillance, Tax agencies and Inspectors thereof, and persons assigned to perform other specialized inspection duties

1. Persons authorized to impose penalties under the control of the inspection authorities, persons assigned to perform specialized inspection duties in the science and technology sector shall be vested with authority to issue notices of administrative violations, fines and apply mitigation or relief measures to administrative violations prescribed in Chapter II herein under the jurisdiction provided in Article 28 herein and within their assigned functions, duties and rights.

2. Chairmen/Chairwomen of People’s Committees at all levels shall be vested with authority to issue notices of administrative violations, fines and apply mitigation or relief measures to administrative violations prescribed in Chapter II herein under the jurisdiction provided in Article 29 herein and within their assigned functions, duties and rights.

3. Persons authorized to impose penalties under the control of Police authorities shall be vested with authority to issue notices of administrative violations, fines and apply mitigation or relief measures to administrative violations prescribed in Article 8, 23 and 26 herein under the jurisdiction provided in Article 29 herein and within their assigned functions, duties and rights.

4. Persons authorized to impose penalties under the control of Customs authorities shall be vested with authority to issue notices of administrative violations, fines and apply mitigation or relief measures to administrative violations prescribed in Article 25, 26 herein under the jurisdiction provided in Article 31 herein and within their assigned functions, duties and rights.

5. Persons authorized to impose penalties under the control of Market Surveillance authorities shall be vested with authority to issue notices of administrative violations, fines and apply mitigation or relief measures to administrative violations prescribed in Article 21 herein under the jurisdiction provided in Article 31 herein and within their assigned functions, duties and rights.

6. Persons authorized to impose penalties under the control of Tax authorities shall be vested with authority to issue notices of administrative violations, fines and apply mitigation or relief measures to administrative violations prescribed in point b and c of clause 3 of Article 22 herein under the jurisdiction provided in Article 33 herein and within their assigned functions, duties and rights.

7. Persons authorized to impose penalties under the control of the Inspection authorities and persons assigned to perform specialized inspection duties shall be vested with authority to issue notices of administrative violations, fines and apply mitigation or relief measures to administrative violations prescribed in Article 7, 8, 11, 15, 16, 19, 21, 23, 24, 25 and 26 herein under the jurisdiction provided in Article 34 herein and within their assigned functions, duties and rights.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 36. Entry into force

1. This Decree shall take effect from August 01, 2019.

2. This Decree shall supersede the Government’s Decree No. 64/2013/ND-CP dated July 26, 2013 on fines for administrative violations arising from scientific and technological activities and technology transfer and the Government’s Decree No. 93/2014/ND-CP dated October 17, 2014 on amendments and supplements to certain Articles in the Decree No. 64/2013/ND-CP dated July 26, 2013, prescribing fines for administrative violations arising from scientific and technological activities and technology transfer.

3. If any administrative violation arising from scientific and technological activities and technology transfer occurs prior to the entry into force of this Decree, is detected after the effective date of this Decree or action against such violation is considered, regulations beneficial to the violating person or entity must be applied.

4. If the decision on fine for administrative violation arising in the scientific and technological activities and technology transfer has been completely issued or executed prior to the entry into force of this Decree, and the entity or person enforced to comply with such decision file an appeal, regulations enshrined in the Government’s Decree No. 64/2013/ND-CP dated July 26, 2013 on fines for administrative violations arising from scientific and technological activities and technology transfer, and the Government’s Decree No. 93/2014/ND-CP dated October 17, 2014 on amendments and supplements to certain Articles in the Decree No. 64/2013/ND-CP dated July 26, 2013, prescribing fines for administrative violations arising from scientific and technological activities and technology transfer, shall be applied to take necessary actions.

Article 37. Implementary responsibilities

1. Minister of Science and Technology shall be responsible for providing instructions on and presiding over implementation of this Decree.

2. Ministers, Heads of Ministry-level agencies, Heads of Governmental bodies, and Chairmen/Chairwomen of People’s Committees of centrally-affiliated cities and provinces, shall be responsible for implementing this Decree./