Tiếng Việt
中文Short answer: The destruction of infringing goods by market surveillance authorities follows Article 126 of the Law on Handling Administrative Violations 2012 (amended 2020) on the handling of exhibits and means of administrative violation, with detailed procedures in Circular 173/2013/TT-BTC. Damaged goods with no remaining usable value are destroyed; goods that retain usable value are sold directly (not by auction), with proceeds paid to the state budget.
Legal basis
- Law on Handling Administrative Violations 2012 (Article 126), amended 2020;
- Circular 173/2013/TT-BTC;
- Circular 78/2014/TT-BTC (as amended by Circular 96/2015/TT-BTC) — on deductible expenses for corporate income tax.
Which goods are subject to destruction?
Easily perishable goods (fresh food; flammable or explosive goods; medicines with less than 60 days of shelf life remaining; goods expired for less than 30 days; seasonal goods, etc.) that are seized or confiscated are handled immediately:
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- Destruction: goods that are damaged and have no remaining usable value;
- Direct sale (not by auction): goods that retain usable value.
Destruction procedures
- The person issuing the seizure decision establishes a Handling Council for destruction (the Chairman is the person issuing the seizure decision or an authorized person; members include representatives of the same-level finance authority and relevant specialized agencies);
- Destruction methods (depending on the nature of the goods and environmental hygiene requirements): chemicals, mechanical measures, incineration, burial, or other forms as prescribed;
- Minutes of destruction with full signatures of Council members, stating: legal basis and reasons; time and place; participants; name, type, quantity, and condition of the goods; destruction method.
Self-destruction of damaged goods by enterprises: tax documentation
Goods damaged due to natural biochemical changes, expired goods, that are not compensated are included in deductible expenses when determining corporate income taxable income. Documents kept at the enterprise:
- Minutes of inventory of damaged goods (value, cause, type, quantity; import-export-inventory statement confirmed by the legal representative);
- Compensation dossier from the insurance agency (if any);
- Dossier on the compensation liability of the organization or individual (if any).
To handle infringing goods or account for destruction costs in compliance with regulations, please contact ANT Legal’s lawyers for review and advice before proceeding.
