Administrative Offenses Against the Economy and Food Safety

The current system of administrative offenses against the economy and food safety, approved by Decree-Law 23/2009 of August 5, has been in force for more than twelve years and needs to be revised and updated, dictated by the dynamics and permanent evolution of the economic and social reality in our country.

The Program of the VIII Constitutional Government considers it essential that, during this legislature, measures and mechanisms to combat offenses against the economy and food safety be strengthened. Decree-Law no. 23/2009, of August 5, has already undergone some modifications, namely those resulting from Law no. 4/2011, of June 1, on the criminalization of hoarding and speculation practices, repealing some of its rules, and the partial modification introduced by Decree-Law no. 26/2016, of June 29, which creates the Authority for Inspection and Supervision of Economic, Sanitary and Food Activity, I.P., hereinafter referred to as AIFAESA, I.P..

The aim of this amendment to the law is to broaden the material scope of the current regime, in order to clarify the scope of its application to non-food products, without this implying the introduction of new types of administrative offenses.

The rules on supervisory, investigative and decision-making powers have also been improved, adopting minimum procedures for their operation, especially since, with the creation of AIFAESA, I.P., this entity has been given powers to supervise the safety of food products and consumer services, with particular emphasis on controlling the quality of foodstuffs and food additives, as well as the hygiene and health conditions of public establishments, with the aim of eliminating, reducing or preventing health problems and risks to public health. It also aims to discipline and control the exercise of economic activities in the food and non-food sectors.

In addition, new procedures have been introduced for investigating and deciding on administrative offenses, providing the supervisory body with legal tools that allow it to fully exercise its institutional duties, while always ensuring respect for public health, the legal defense of the economic agent and healthy competition between operators, with the natural and consequent effects on consumer protection.

In the chapter on the definition of infractions, without prejudice to the innovation introduced here in East Timor's legal framework, an attempt is made to simplify and objectify the judgment of censure that behaviors may deserve from the decision-making body, classifying them as "light", "serious" and "very serious".

It also clarifies the competence to apply accessory sanctions, as well as the rules that seem appropriate to the particular type of offender, in order to allow correct individualization and rational sanctioning.

As far as financial penalties are concerned, this statute also takes care not to resort to "terror" sanctions, which are generally translated into exaggeratedly serious sanctions that are proven to be ineffective and may violate the principle of proportionality, running the risk of undesirable economic and social dysfunctions. The same concern is also expressed about the voluntary payment of fines.

In addition, the current sanctioning regime is being improved, guided by rigor, but also by modernity and simplicity, taking into account the economic and social reality and trying to respect the business fabric of East Timor.

Therefore, the Government decrees, pursuant to Article 115(1)(e) and Article 116(d) of the Constitution of the Republic, to be valid as law, as follows:

1. […]:
   1. […];
   2. […].
2. Abnormal food additives are classified as counterfeit, spoiled, damaged and lacking requirements.
3. […]:
   1. […];
   2. […];
   3. […].
4. […].
5. […].
6. Abnormal food additives that are not falsified, spoiled or damaged are considered to be lacking requirements.
7. [Previous no. 6].
8. A pre-packaged food additive in which the indication of its composition and expiry date, when legally mandatory, is missing, inaccurate or deficient, is considered to be lacking requirements.

1. […]:
   1. [Formerly point a) of the body of the article];
   2. [Formerly point b) of the body of the article].
2. Unless otherwise specified, negligence is always punishable.
3. In the event of negligence, the maximum and minimum limits of the fines provided for in this statute are reduced by half.
4. In the event of a repeat offense, the maximum and minimum limits of the fines established are doubled.
5. A repeat offense is the commission of the same infraction within 12 months of being convicted of the same offense.

1. Anyone who produces, prepares, cooks, manufactures, transports, stores, keeps in storage, sells, displays or exhibits for sale, imports, exports or trades in any way in foodstuffs, food additives or non-food products intended for human or animal consumption which are not likely to create a danger to life or serious danger to the physical integrity of others:
   1. That are falsified in any of their forms, commits a very serious administrative offense;
   2. If they are damaged, you commit a serious administrative offense;
      If they are damaged, lack requirements or have expired, you commit a minor administrative offense.
2. [Repealed].
3. [Repealed].
4. [Repealed].

Anyone who produces, prepares, confects, manufactures, transports, stores, keeps in storage, sells, displays for sale, imports or trades in any way in foodstuffs, food additives or non-food products that are not abnormal or irregular commits a minor administrative offense:

1. They reveal a nature, composition, quality or provenance that does not correspond to the name or attributes under which they are marketed;
2. […];
3. […];
4. Lack of requirements or expired.

Anyone who, without justification, has in their possession substances, products, articles, objects, utensils or any machinery that could be used to falsify foodstuffs, food additives or non-food products, or who possesses or has in operation products that do not comply with legal requirements and that could be used for that purpose, commits a serious administrative offense.

1. Anyone who, in a situation of notorious scarcity or to the detriment of the regular supply of the market, commits a very serious administrative offense, unless a legal type with a more serious penalty is provided for:
   1. [...];
   2. [...].
2. [Repealed].

1. [...].
2. Failure to comply with the requisition under the terms of the previous paragraph constitutes a very serious administrative offense, unless another type of law imposes a more serious penalty, and the requisitioned goods must be declared forfeit to the state.
3. [Repealed].

Anyone who, with the intention of deceiving others in business relations, manufactures, transforms, imports, exports, re-exports, has in storage or on display for sale, sells or otherwise puts into circulation goods, commits a very serious administrative offense, without prejudice to another type of law that imposes a more serious penalty:

1. Counterfeited, falsified or depreciated, passing them off as authentic, unaltered or intact;
2. [...].

1. Infringement of industrial property rules constitutes a serious administrative offense, unless a more serious sanction is imposed by specific regulations.
2. [Repealed].

1.  All advertising that contains false information or which, even if factually correct, for whatever reason, is likely to mislead the consumer with regard to the main characteristics of the good or service, such as its availability, its advantages, the risks it presents, its execution, its composition, its accessories, the provision of after-sales assistance, its fitness for purpose and guarantees of conformity, elements that lead, or are likely to lead, the consumer to make a transactional decision that he would not have made otherwise, is prohibited.
2. Violation of the provisions of this article constitutes a serious administrative offense.

 The economic infractions that take place in a provisioning tender procedure follow the specific regime established in the legal regime for provisioning and public contracts, without prejudice to the application of the accessory sanctions provided for in the present diploma.

1. […].
2. In the event of an express reference to the general regime of the aforementioned statute, violation of the respective rules is sanctioned as a serious administrative offense, without prejudice to the application of ancillary sanctions, where appropriate.

1. Any person who, in the transaction of goods or the provision of services, violates the legal rules that impose or regulate the issuing of invoices or other commercial documentation commits a minor administrative offense.
2. The penalty referred to in the previous paragraph shall also apply:
   1. [Formerly paragraph 1(a)];
   2. [Formerly paragraph 1(b)];
   3. [Formerly paragraph 1(c)].
3. [Previous no. 2].

A serious administrative offense is committed by anyone who, following investigations or inspection actions established by law or regulation or ordered by the Inspector General of AIFAESA, I.P., to find out the existing quantities of certain goods:

1. [...]; or
2. Making false declarations, with omissions or deficiencies, or failing to comply with the deadline established for this purpose.

1. Depending on the seriousness of the offense, the fault and the economic situation of the perpetrator, accessory sanctions may be applied.
2. [...].
3. For the purposes of this law, accessory sanctions must cumulatively meet the following conditions:
   1. Are typified in this law or in another legal provision;
   2. Be of a different nature to the main sanction;
   3. They must be for a fixed period of time and may not be extended or exceed one year, except in cases of repeat offenses or loss of property, assets or rights in favor of the State;
   4. [Repealed];
   5. [Repealed];
   6. […].
4. The termination of the employment relationship that occurs as a result of the application of the ancillary sanctions provided for in paragraph 1 shall have legal effects equivalent to those of termination without just cause on the employer's initiative.

1. The following ancillary sanctions may be applied cumulatively for the administrative offenses provided for in this statute:
   1. [...];
   2. [...];
   3. [...];
   4. […];
   5. […].
2. [Repealed].
3. [Repealed].
4. […].

1. Without prejudice to the provisions of the legal framework for procurement and public contracts, the deprivation of the right to participate in direct adjustments, restricted consultations or public tenders may be applied to the offender:
   1. [...]; or
   2. When the circumstances in which the offense was committed reveal that the offender is not worthy of the general trust necessary for his participation;
   3. [...].
2. [...].
3. [...].

The deprivation of participation in fairs and markets, applicable under the same terms as the previous article, consists of the prohibition of the exercise of this activity, by the offender or through an intermediary, for a maximum period of six months.

1. [...].
2. [...].
3. [...].
4. By decision of the Inspector General of AIFAESA, I.P., the establishment may also be temporarily closed when there is a repeat offence under this law within 12 months of the conviction.
5. The temporary closure referred to in the previous paragraph is only binding on the establishment on which the closure decision falls, and does not affect other establishments of the same entity.

1. AIFAESA, I.P. is responsible for overseeing compliance with the provisions of this statute, without prejudice to the powers granted by law to other entities.
2. In carrying out its supervisory duties, AIFAESA, I.P. may request the collaboration and intervention of other entities, namely the health, agriculture, environment and customs services and the police authorities.

1. AIFAESA, I.P. is responsible for investigating the administrative offense proceedings brought under this law.
2. Notices of infractions under this law, when drawn up by other entities, must be sent to AIFAESA, I.P., as soon as possible.

1. Samples and merchandise seized as a result of administrative offenses under this law may be subject to laboratory examination for the purpose of producing evidence.
2. [Repealed].

1. Objects that served or were intended to serve the commission of an administrative offense or that were produced by it, as well as any other objects that may serve as evidence, may be provisionally seized.
2. Seized objects shall be returned as soon as it becomes unnecessary to maintain the seizure for evidentiary purposes, unless the administrative authority intends to declare them forfeit to the State.
3. In any case, the objects are returned as soon as the conviction becomes final, unless they have been declared forfeit to the State.
4. When it decides to seize any goods or merchandise, AIFAESA, I.P. must, within 10 days, notify the seizure to the persons who hold the rights affected by the seizure, for the purposes of any possible legal challenge.

1. Seized goods can be sold as soon as they become unnecessary for the trial, provided that there is no evidence against them:
   1. [...];
   2. [...];
   3. [...].
2. When selling seized goods, AIFAESA, I.P., must ensure that the sale or use of the goods is not likely to lead to new infringements.
3. The proceeds of the sale are deposited in a bank to the order of the entity that ordered it, in order to be handed over, by means of a simple document in the case file and free of charge, to whoever is entitled to it, or to be paid into the state coffers if it is declared forfeit to the state.
4. [...].
5. When economic reasons so dictate and if there is no evidence of danger to public health, the Inspector General of AIFAESA, I.P., may determine that the seized goods should not be rendered unusable under the terms of the previous paragraph, but should be sent to organizations with a clear social welfare nature.

1. The Inspector General of AIFAESA, I.P. is competent to decide on the fines and ancillary sanctions provided for in this statute.
2. The final decision could result in the goods being forfeited to the state.
3. Whenever the economic situation justifies it, the Inspector General of AIFAESA, I.P., may authorize payment of the fine in instalments, up to a maximum of 10, whereby failure to pay one instalment implies that all the others are due.
4. [...]:
   1. [Formerly point a) of the body of the article];
   2. [Formerly point b) of the body of the article];
   3. [Formerly point c) of the body of the article];
   4. [Formerly point d) of the body of the article];
   5. [Formerly point e) of the body of the article];
   6. [Formerly point f) of the body of the article];
   7. An indication that the decision will be enforced immediately if it is not contested or if payment of the fine in installments is requested.

1. Voluntary payment of the fine for an infringement classified as minor or serious is allowed.
2. Without prejudice to the provisions of article 40b, the request for voluntary payment of the fine must always be made before the final decision and only benefits the applicant.
3. When voluntary payment is requested, the amount of the fine is assessed at its minimum limit, without prejudice to any costs that may be due.
4. Voluntary payment of the fine does not exclude the possibility of ancillary sanctions.
5. It is up to the offender to deposit the amount to be settled in the bank account of the decision-maker and to attach proof of payment to the case file.

 40% of the proceeds from the fines imposed and collected under this law are allocated to the inspection activities of AIFAESA, I.P.."

Articles 9-A, 40-A, 40-B and 42-A are added to Decree-Law no. 23/2009, of August 5, as amended by Law no. 4/2011, of June 1, and by Decree-Law no. 26/2016, of June 29, with the following wording:

1. A non-food product is considered irregular if:
   
   1. It is not in perfect con- servation, packaging or other conditions essential to its suitability for use;
   2. Don't satisfy your own characteristics;
   3. Failure to display, when legally required, the date of production and the expiry date for consumption or use, as well as the lack of indication of its composition.
2. Irregular non-food products are classified as counterfeit, damaged and expired.
3. Non-food products that are irregular due to any of the following circumstances are considered to be counterfeit:
   1. Addition to a non-food product of any substance foreign to its composition and nature or not permitted therein, which may have the effect, among other things, of increasing its weight or volume and concealing poor quality or deterioration;
   2. Subtraction from a non-food product of any substance, in whole or in part, in such a way as to distort it or impoverish its proper composition;
   3. Replacing the non-food product, in whole or in part, with another substance in order to imitate it.
4. Irregular non-food products that have deteriorated as a result of poor storage conditions, packaging, exposure to excessive humidity or heat, or any other agents to which they have been subjected, are considered damaged.
5. An irregular non-food product whose expiration date has passed is considered expired.
6. A non-food product is considered to be damaged if the wrapping or packaging material is not inviolate, namely because it is broken, torn or crushed, and this is likely to make it irregular, deteriorate it or cause it to change in nature, composition or quality.

1. Whenever situations arise that could seriously and imminently jeopardize the safety or health of people, and without prejudice to the powers of the health authorities, AIFAESA, I.P., may, as a matter of urgency, order the immediate suspension of an activity, as well as the temporary closure, in whole or in part, of a commercial or industrial establishment.
2. The precautionary measures applied shall remain in force for as long as the reasons for their adoption under the terms of the previous paragraph remain valid and until the final decision of the respective administrative offense proceedings, without prejudice to the possibility of amending, replacing or revoking them under the general terms.

1. In the course of the investigation, the offender is notified that, if he so wishes, he may, within a maximum of 30 days, state his position on the administrative offense and the sanction or sanctions he will incur, as well as the possibility of requesting voluntary payment of the fine.
2. It is not permitted to impose a fine or an accessory sanction without first ensuring that the offender has the opportunity to present his defense.

1.  Without prejudice to any civil or criminal liability that may exist, the administrative offenses provided for in this statute are punishable under the terms of the following paragraphs.
2. Administrative offenses committed under the terms of the provisions enshrined in this law are punishable by the following fines:
   1. Light administrative offense:
      1. In the case of a natural person, from US$ 250 to US$ 5,000;
      2. In the case of a small business, from US$ 500 to US$ 10,000;
      3. In the case of medium-sized companies, from US$ 1,000 to US$ 10,000;
      4. In the case of a large company, from US$ 2,500 to US$ 10,000;
   2. Serious offense:
      1. In the case of a natural person, from US$ 500 to US$ 10,000;
      2. In the case of a small business, from US$ 1,000 to US$ 10,000;
      3. For medium-sized companies, from US$ 2,500 to US$ 20,000;
      4. In the case of a large company, from US$ 5,000 to US$ 50,000;
   3. Very serious offense:
      1. In the case of a natural person, from US$ 2,500 to US$ 10,000;
      2. In the case of a small business, from US$ 5,000 to US$ 15,000;
      3. In the case of a medium-sized company, from US$ 5,000 to US$ 50,000; iv. For large companies, from US$ 10,000 to US$ 75,000;
3. For the purposes of the previous paragraph:
   1. A small business is one that employs up to five workers;
   2. A medium-sized company is one that employs between six and 49 workers;
   3. Large company means an entity that employs 50 or more workers.
   4. For the purposes of the previous paragraph, the following are considered to be employees:
      1. Wage earners;
      2. People who work for a company have a subordination link with it and are treated as employees under specific legislation;
      3. Partners who carry out a regular activity in the company and benefit, in return, from financial advantages derived from it."

Article 7(3), Article 13(2), (3) and (4), Article 19(2), Article 20(3), Article 22, Article 23(2), Article 29(3)(d) and (e), Article 30(2) and (3) and Article 39(2) and (3) shall be repealed.Article 29(3)(d) and (e), Article 30(2) and (3) and Article 39(2) of Decree-Law 23/2009 of August 5th.

Decree-Law no. 23/2009, of August 5, is republished in an annex to this decree-law, of which it forms an integral part, with its updated wording and the necessary grammatical and legal corrections.

This decree comes into force 90 days after its publication.

Approved by the Council of Ministers on March 1, 2023.

The Prime Minister, deputy,

José Maria dos Reis

The Coordinating Minister for Economic Affairs,

_

JoaquimAmaral

Promulgated on May 18, 2023.

Publish.

The President of the Republic,

José Ramos-Horta


ANNEX (referred to in Article 5)
DECREE-LAW NO. 23/2009, OF AUGUST 5TH, REGIME OF ADMINISTRATIVE INFRACTIONS AGAINST THE ECONOMY AND FOOD SAFETY

1. This law establishes the Regime of Administrative Offenses against the Economy and Food Safety, applicable to all economic activities, as well as the respective sanctioning regime, with the exception of activities whose competence is attributed by law to other entities.
2. The Regime of Administrative Offenses against the National Economy and Food Safety applies throughout the country.
3. The sanctioning regime provided for in this statute is without prejudice to criminal liability, where applicable, and the rules of the Penal Code and, with the necessary adaptations, the rules of the Code of Criminal Procedure are subsidiarily applicable when it comes to establishing the substantive regime.

1. Anyone who voluntarily acts as a member, representative or holder of an organ of a legal person or company, even if irregularly constituted, or of a mere de facto association, or in the legal or voluntary representation of another, is responsible and punishable as such, even when the respective type of offense requires it:
   1. Certain personal elements and these only occur in the person of the represented party; or
   2. That the agent carries out the act in his own interest and the representative acts in the interest of the represented.
2. The ineffectiveness of the act on which the representation is based does not prevent the application of the provisions of the previous paragraph.
3. The persons or entities referred to in paragraph 1 shall be jointly and severally liable for payment of the fines and costs imposed on the perpetrators of the infringements provided for in this statute.

1. The natural or legal person who owns the economic entity in which the infraction is committed, when committed by their members, representatives or members of the respective bodies, in their name and in the interests of the legal person or companies, even if irregularly constituted, or mere de facto associations, shall be liable for the infractions provided for in this statute.
2. Paragraph 2 of the previous article shall apply accordingly.
3. The liability of the legal person is excluded when the agent has acted against the express orders or instructions of those in authority.
4. The liability of the entities referred to in paragraph 1 shall not exclude the individual liability of the respective agents, and paragraph 3 of the previous article shall apply mutatis mutandis.

 Attempting to commit an intentional offense under this law is always punishable by the fine applicable to the consummated offense, especially attenuated.

1. The measure of the fine is determined according to the seriousness of the offence, the culpability, the economic situation of the perpetrator and the economic benefit they derived from committing the offence.
2. If the perpetrator has derived a calculable economic benefit from the infringement that is greater than the maximum limit of the fine and there are no other means of eliminating it, the fine may be increased up to the amount of the benefit, but the increase must not exceed one third of the maximum limit established by law. (3) Where the punishment is specially mitigated, the maximum and minimum limits of the fine shall be halved.

1. The following sanctions apply to both natural and legal persons:
   1. Admonition;
   2. Fine;
   3. Accessory sanction.
2. If the sanction is imposed on an entity that does not have legal personality, the common assets and, in the absence or insufficiency thereof, the assets of each of the partners or associates in solidarity, shall be liable.
3. [Repealed].
4. An admonition is issued whenever it is found that the imposition of a fine is manifestly excessive and disproportionate to the seriousness of the infringement.

1. Food is considered abnormal if:
   1. Don't be genuine;
   2. It is not in perfect conditions of ripeness, freshness, preservation, display for sale, packaging or other conditions essential to its fitness for consumption or use; or
   3. Don't satisfy your own analytical characteristics.
2. Abnormal foodstuffs are classified as counterfeit, spoiled, damaged and lacking requirements.
3. Foodstuffs that are anor- more due to any of the following circumstances are considered to be falsified:
   1. Addition to a foodstuff of any substance, including an ingredient, which is foreign to its composition and nature or which is not permitted therein and which may result, among other things, in an increase in weight or volume, the concealment of poor quality or deterioration or the incorporation of an inadmissible additive into the foodstuff;
   2. Subtraction from a foodstuff of an ingredient or constituent, in whole or in part, in such a way as to distort or impoverish its proper composition;
   3. Replacing the foodstuff or any of its ingredients, in whole or in part, with another substance in order to imitate it.
4. Foodstuffs that are abnormal because they have decomposed or putrefied, because they contain harmful substances, germs or their products, or because they are in any way repugnant, are considered to be spoiled.
5. Damaged foodstuffs are those which are not falsified or spoiled but which are in danger of deteriorating as a result of defective or poor packaging or exposure to humidity, sun, excessive heat or any other agents to which they have been subjected.
6. Abnormal foodstuffs that are not falsified, spoiled or damaged are considered to be substandard.
7. Food is always considered damaged if the wrapping or packaging material is broken, torn or crushed and is therefore likely to make it abnormal, deteriorating it or causing it to change in nature, composition or quality.
   Pre-packaged foodstuffs in which the indication of their composition and expiry date, when legally obligatory, is omitted, inaccurate or deficient, is also considered to be lacking in requirements.

1. A food additive which, cumulatively, is considered abnormal:
   1. It is not in perfect conditions of conservation, display for sale, packaging or other conditions essential to its suitability for use;
   2. Don't satisfy your own analytical characteristics.
2. Abnormal food additives are classified as counterfeit, spoiled, damaged and lacking requirements.
3. Food additives that are abnormal due to any of the following circumstances are considered to be falsified:
   1. Addition to a food additive of any substance foreign to its composition and nature or not permitted therein and which may have the effect, among other things, of increasing its weight or volume and concealing poor quality or deterioration;
   2. Subtraction of a substance from a food additive, in whole or in part, in such a way as to distort or impoverish its composition;
   3. Replacing the food additive, totally or partially, with another substance in order to imitate it.
4. Food additives that are abnormal because they have decomposed or putrefied or are otherwise disgusting are considered spoiled.
5. Abnormal food additives that are not falsified or spoiled but are at risk of deteriorating as a result of defective or poor packaging or exposure to humidity, sun, excessive heat or any other agents to which they have been subjected are considered damaged.
6. Abnormal food additives that are not falsified, spoiled or damaged are considered to be lacking requirements.
7. A food additive whose wrapping or packaging material is broken, torn or crushed and is therefore likely to make it irregular, deteriorating it or causing it to change in nature, composition or quality is always considered damaged.
8. A pre-packaged food additive in which the indication of its composition and expiry date, when legally mandatory, is missing, inaccurate or deficient, is considered to be lacking requirements.

For the purposes of this law, essential goods are considered to be:
a) Basic necessities, the supply of which is clearly indispensable for a large number of consumers at any given time, such as basic foodstuffs, water and goods for children or the sick, among others that are absolutely necessary for human life and dignity;
(2) [Repealed].
3. [Repealed].
b) Raw materials defined as such by law or regulation.
4. [Repealed].

1. The provisions of this chapter are without prejudice:
   1. The application of other more serious sanctions provided for by law;
   2. Criminal liability in the case.
2. Unless otherwise specified, negligence is always punishable.
3. In the event of negligence, the maximum and minimum limits of the fines provided for in this statute are reduced by half.
4. In the event of repeat offenses, the maximum and minimum limits of the fines are doubled.
5. A repeat offense is the commission of the same infraction within 12 months of being convicted of the same offense.

Repealed.

Repealed.

Repealed.

 1. Whoever commits a very serious administrative offense, unless a more serious penalty is provided for in the law,
(2) [Repealed].

1. By means of a duly reasoned order, the minister responsible may, in the event of a notorious shortage or serious damage to the regular supply of the market, upon payment of fair compensation, order the requisition of strictly essential goods.
2. Failure to comply with the requisition under the established terms constitutes a very serious administrative offense, unless another type of law imposes a more serious penalty, and the requisitioned goods must be declared forfeited to the state.
3. [Repealed].

Repealed.

1. Infringement of industrial property rules constitutes a serious administrative offense, unless a more serious sanction is imposed by specific regulations.
2. [Repealed].

 1. Any person who, in the transaction of goods or the provision of services, violates the legal rules imposing or regulating the issue of invoices or other commercial documentation commits a minor administrative offense.
2. The penalty referred to in the previous paragraph shall also apply:
 a) The seller or service provider, for failure to issue the documents relating to the operation, their issuance with deficiency or omission of the required elements in such a way that they do not faithfully represent the respective operations, as well as for failure to present the respective duplicates, whenever required by the competent authorities;
 b) To the buyer who does not identify the seller, even if the documents referred to in the previous paragraph have not been issued or presented; or
 c) The seller or buyer who alters the commercial veracity of the documents referred to in this article, in relation to debit or credit entries or the issue of the respective notes.
 3. The loss, concealment or destruction of documents relating to the acquisition of goods or the provision of services before the time limits established by law or regulation have elapsed shall be deemed to be the same as the events referred to in the previous paragraph.

1. Depending on the seriousness of the offense, the fault and the economic situation of the perpetrator, accessory sanctions may be applied.
2. The confiscation of goods and transport in favor of the State can only be declared in the case of dangerous goods, understood as those likely to cause direct damage to the economy in general, to consumers or users thereof or to public health.
3. For the purposes of this law, accessory sanctions must cumulatively meet the following conditions:
   1. Are typified in this law or in another legal provision;
   2. Be of a different nature to the main sanction;
   3. [Repealed].
4. The termination of the employment relationship that occurs as a result of the application of the ancillary sanctions provided for in paragraph 1 shall have legal effects equivalent to those of termination without just cause on the employer's initiative.

1. The following ancillary sanctions may be applied cumulatively for the administrative offenses provided for in this statute:
   1. Temporary deprivation of the right to participate in direct agreements, restricted consultations or public tenders;
   2. Temporary deprivation of the right to participate in fairs and markets;
   3. Temporary ban on certain professions or activities;
   4. Temporary closure of the establishment; e) Forfeiture of the assets referred to in paragraph 2 of the previous article.
   5. The assets referred to in paragraph 2 of the previous article shall be forfeited.
2. [Repealed].
3. [Repealed].
4. Failure to comply with an accessory sanction, by you or by
   may constitute the offender in the commission of an offense provided for in the Penal Code.

1. Without prejudice to the provisions of the legal framework for procurement and public contracts, deprivation of the right to participate in direct agreements, restricted consultations or public tenders may be applied to the offender:
   1. Who has committed a crime punishable by imprisonment of more than six months; or
   2. When the circumstances in which the offense was committed reveal that the offender is not worthy of the general trust necessary for his participation;
   3. If you are a repeat offender of an infraction provided for in this law within a calendar year.
2. The deprivation of the right referred to in the previous paragraph lasts between three and 12 months.
3. Depending on the circumstances, the deprivation of the right to certain competitions may be limited.

The deprivation of participation in fairs and markets, applicable under the same terms as the previous article, consists of the prohibition of the exercise of this activity, by the offender or through an intermediary, for a maximum period of six months.

1. A temporary ban on the exercise of certain professions or activities may be imposed on an offender who has committed an infraction under this law:
   1. With flagrant abuse in the exercise of the profession or economic activity;
   2. When carrying out an activity that depends on a public title or an authorization or approval from a public authority;
   3. When an accessory sanction has previously been imposed for an infraction under this law.
2. The ban lasts a minimum of two months and a maximum of six months.

1. The temporary closure of an establishment may be ordered, for a period of between one month and three months, when the offender has committed the infraction as a direct result of the establishment's operation.
2. The transfer or assignment of rights of any kind related to the exercise of the profession or activity in the establishment, carried out after the sanctioning procedure has been initiated, is not an obstacle to the application of this ancillary sanction, unless the transferee or assignee is in good faith.
3. The temporary closure of an establishment does not constitute just cause for the termination of employment contracts or grounds for suspending or reducing the payment of the respective remuneration.
4. By decision of the Inspector General of AIFAESA, I.P., the establishment may also be temporarily closed when there is a repeat offence under this law within 12 months of the conviction.
5. The temporary closure referred to in the previous paragraph is only binding on the establishment on which the closure decision falls, and does not affect other establishments of the same entity.

 The supervision of goods and services takes place at any stage of the production and transaction of goods or the provision of services, regardless of the economic agent.

1. AIFAESA, I.P. is responsible for overseeing compliance with the provisions of this statute, without prejudice to the powers granted by law to other entities.
2. In carrying out its supervisory duties, AIFAESA, I.P. may request the collaboration and intervention of other entities, namely the health, agriculture, environment and customs services and the police authorities.

 For public authorities or agents of authority, even if they are not police officers, the infractions provided for in this law must be reported.

1. AIFAESA, I.P. is responsible for investigating the administrative offense proceedings brought under this law.
2. Notices of infractions under this law, when drawn up by other entities, must be sent to AIFAESA, I.P., as soon as possible.

1. Samples and merchandise seized as a result of administrative offenses under this law may be subject to laboratory examination for the purpose of producing evidence.
2. [Repealed].

1. Objects that served or were intended to serve the commission of an administrative offense or that were produced by it, as well as any other objects that may serve as evidence, may be provisionally seized.
2. Seized objects shall be returned as soon as it becomes unnecessary to maintain the seizure for evidentiary purposes, unless the administrative authority intends to declare them forfeit to the State.
3. In any case, the objects are returned as soon as the conviction becomes final, unless they have been declared forfeit to the State.
4. When it decides to seize any goods or merchandise, AIFAESA, I.P. must, within 10 days, notify the seizure to the persons who hold the rights affected by the seizure, for the purposes of any possible legal challenge.

1. Whenever situations arise that could seriously and imminently jeopardize the safety or health of people, and without prejudice to the powers of the health authorities, AIFAESA, I.P., may, as a matter of urgency, order the immediate suspension of an activity, as well as the temporary closure, in whole or in part, of a commercial or industrial establishment.
2. The precautionary measures applied shall remain in force for as long as the reasons for their adoption under the terms of the previous paragraph remain valid and until the final decision of the respective administrative offense proceedings, without prejudice to the possibility of amending, replacing or revoking them under the general terms.

1. In the course of the investigation, the offender is notified that, if he so wishes, he may, within a maximum of 30 days, state his position on the administrative offense and the sanction or sanctions he will incur, as well as the possibility of requesting voluntary payment of the fine.
2. It is not permitted to impose a fine or an accessory sanction without first ensuring that the offender has the opportunity to present his defense.

1. Seized goods can be sold as soon as they become unnecessary for the trial, provided that there is no evidence against them:
   1. Risk of deterioration; or
   2. Convenience of immediate use to supply the market; or
   3. A valid request from the respective owner or legitimate holder to sell them.
2. When selling seized goods, AIFAESA, I.P., must ensure that the sale or the destination of the goods is not likely to lead to new infringements.
3. The proceeds of the sale are deposited in a bank to the order of the entity that ordered it, in order to be handed over, by means of a simple document in the case file and free of charge, to whoever is entitled to it, or to be paid into the state coffers if it is declared forfeit to the state.
4. Seized goods are rendered unusable whenever it is not possible to use them without violating the provisions of this law.
5. When economic reasons so dictate and if there is no evidence of danger to public health, the Inspector General of AIFAESA, I.P., may determine that the seized goods should not be rendered unusable under the terms of the previous paragraph, but should be sent to organizations with a clear social welfare nature.

1.  Without prejudice to any civil or criminal liability that may exist, the administrative offenses provided for in this statute are punishable under the terms of the following paragraphs.
2. Administrative offenses committed under the terms of the provisions enshrined in this law are punishable by the following fines:
   1. Light administrative offense:
      1. In the case of a natural person, from US$ 250 to US$ 5,000;
      2. In the case of a small business, from US$ 500 to US$ 10,000;
      3. In the case of medium-sized companies, from US$ 1,000 to US$ 10,000;
      4. In the case of a large company, from US$ 2,500 to US$ 10,000;
   2. Serious offense:
      1. In the case of a natural person, from US$ 500 to US$ 10,000;
      2. In the case of a small business, from US$ 1,000 to US$ 10,000;
      3. For medium-sized companies, from US$ 2,500 to US$ 20,000;
      4. In the case of a large company, from US$ 5,000 to US$ 50,000;
   3. Very serious offense:
      1. In the case of a natural person, from US$ 2,500 to US$ 10,000;
      2. In the case of a small business, from US$ 5,000 to US$ 15,000;
      3. In the case of a medium-sized company, from US$ 5,000 to US$ 50,000; iv. For large companies, from US$ 10,000 to US$ 75,000;
3. For the purposes of the previous paragraph:
   1. A small business is one that employs up to five workers;
   2. A medium-sized company is one that employs between six and 49 workers;
   3. Large company means an entity that employs 50 or more workers.
   4. For the purposes of the previous paragraph, the following are considered to be employees:
      1. Wage earners;
      2. People who work for a company have a subordination link with it and are treated as employees under specific legislation;
      3. Partners who carry out a regular activity in the company and benefit, in return, from financial advantages derived from it.

(1) Voluntary payment of the fine for an infringement classified as minor or serious is permitted.
2. Without prejudice to the provisions of article 40b, the request for voluntary payment of the fine must always be requested before the final decision and only benefits the applicant.
3. When voluntary payment is requested, the amount of the fine is assessed at its minimum limit, without prejudice to any costs that may be due.
4. Voluntary payment of the fine does not exclude the possibility of imposing ancillary sanctions.
5. It is the offender's responsibility to deposit the amount to be paid into the decision-maker's bank account and attach proof of payment to the case file.

40% of the proceeds from the fines imposed and collected under this law are allocated to the inspection activities of AIFAESA, I.P..

This decree enters into force on the thirtieth day following its publication.

Approved by the Council of Ministers on April 8, 2009.

The Prime Minister,

Kay Rala Xanana Gusmão