Tobacco is harmful to not only the health of smokers but also the health of people around them. Therefore, tobacco is a special product that is closely managed by the Vietnamese Government. To perform tobacco trading, businessmen have to meet requirements prescribed by law as well as carry out procedures for Tobacco Trading License. In this post, Phong & Partners would like to introduce regulations on requirements, orders, procedures, applications for issuing necessary licenses to trade in tobacco.
Legal basics:
- Law on tobacco harmful prevention 2012;
- Decree no. 67/2013/ND-CP elaborates some articles and measures for implementation the law on tobacco harm prevention applicable to tobacco trading;
- Decree no. 106/2017/ND-CP amends the government’s Decree no. 67/2013/ND-CP dated June 27, 2013 elaborating certain articles and measures for implementing the law on tobacco harm prevention and control with respect of tobacco trading;
- Decree no. 17/2020/ND-CP amends some articles of decrees related to necessary business conditions in fields under the management of the ministry of industry and trade;
- Circular no. 168/2016/TT-BTC elaborates collection levels, regulations for collection, payment, management and use of accessories for assessment of business of goods and services limited in business; goods, business services provided in commercial region and order for license for establishment of goods trading department;
- Circular no. 57/2018/TT-BCT elaborates decrees on tobacco trading.
I. Tobacco Distribution License:
Once issued a Tobacco Distribution License, traders can purchase tobacco from tobacco suppliers or other tobacco distribution traders. Then, they sell tobacco to other traders who distribute and trade in tobacco at retail locations of traders within permitted regions.
1.1 Tobacco distribution requirements
- Enterprise is established prescribed by law;
- Business location does not infringe location regulations: Do not sell tobacco at outside kindergarten gates, nursery schools, secondary schools, high schools, medicine researching institutes, hospitals, maternity homes, preventive health centers, clinics of commune, ward, town within 100 meters from nearest boundary of trading location;
- There is a tobacco distribution system at the region from more than 02 provinces (There is at least one Tobacco trader of each province/city);
- There are reference letters of tobacco suppliers which write clearly planned business locations.
1.2 Application for issuing Tobacco Distribution License
- Application for issuing Tobacco Distribution License ( Annex 19 of Circular no. 57/2018/TT-BCT);
- Copy of Enterprise Registration Certificate or Company Tax Code Certificate;
- Copy of Reference Letter of tobacco suppliers or tobacco distribution traders which writes clearly planned trading locations.
- List of traders; copy of Enterprise Registration Certificate, Company Tax Code Certificate, Tobacco Trading License (if any) of traders that will belong to the tobacco distribution system over regions of province/city that is based business location.
1.3 Settlement agency: Ministry of Industry and Trade
1.4 Settlement time limit: Within 15 working days from the date of receiving a valid application.
1.5 Orders and procedures
- Step 1: Submitting application.
Trader makes 02 sets of applications. One is achieved internally, the other is directly sent to the Ministry of Industry and Trade.
- Step 2: Considering and appraising application.
After receiving application:
- In case of an incomplete valid application, the Ministry of Industry and Trade will have a written notice to request traders to add documents within 07 working days from the date of receiving application.
- In case of a complete valid application, the Ministry of Industry and Trade will be responsible for considering, inspectating, appraising and issuing Tobacco Trading Licence within 15 working days from the date of receiving application. In case of rejection, the Ministry of Industry and Trade will have a written notice to reply with a clear reason.
1.6 Fee, charge:
The appraisal fee: 1,200,000 VND/ a business location/ each appraisal.
1.7 Time limit for Tobacco Distribution License
Tobacco Distribution License is valid within 05 years.
If traders want to continue to trade in tobacco, they must apply for re-granting the license at least 30 days before the expiry day.
II. Tobacco Trading License
Once issued a Tobacco Trading license, traders can purchase tobacco from tobacco suppliers or tobacco distribution traders to sell tobacco to retail traders or directly sell at their retail locations.
2.1 Requirements for issuing Tobacco Trading License
- Enterprise is established prescribed by law;
- Business location does not infringe location regulations: Do not sell tobacco at outside kindergarten gates, nursery schools, secondary schools, high schools, medicine researching institutes, hospitals, maternity homes, preventive health centers, clinics of communes, wards, towns within 100 meters from nearest boundary of business location;
- There is a tobacco trading systems at the province that trader bases headquarter (There are at least 02 Tobacco Retail Traders);
- There are reference letters of tobacco suppliers or tobacco distribution traders which write clearly planned business locations.
2.2 Application for issuing Tobacco Trading License
- Application for issuing Tobacco Trading License ( Annex 21 of Circular no. 57/2018/TT-BCT);
- Copy of Enterprise Registration Certificate or Company Tax Code Certificate;
- Copy of Reference Letter of tobacco suppliers or tobacco distribution traders which writes clearly planned business locations.
- List of traders; copy of Enterprise Registration Certificate, Company Tax Code Certificate, Tobacco Trading License (if any) of traders that will belong to the tobacco distribution system in the region.
2.3 Settlement agency: Department of Industry and Trade
2.4 Settlement time limit: Within 15 working days from the date of receiving a valid application.
2.5 Orders and procedures
- Step 1: Submitting application
Trader makes 02 sets of applications. One is achieved internally, the other is directly sent to the Department of Industry and Trade.
- Step 2: Considering and appraising application
After receiving application:
- In case of an incomplete valid application, the Department of Industry and Trade will have a written notice to request traders to add documents within 07 working days from the date of receiving application.
- In case of a complete valid application, the Department of Industry and Trade will be responsible for considering, inspectating, appraising and issuing Tobacco trading license within 15 working days from the date of receiving application. In case of rejection, the Department of Industry and Trade will have a written notice to reply with a clear reason.
2.6 Fee, charge:
The appraisal fee: 1,200,000 VND/ a business location/ each appraisal.
2.7 Time limit for Tobacco Trading License
Tobacco Trading License is valid within 05 years.
If traders want to continue to trade in tobacco, they must apply for re-granting the license at least 30 days before the expiry day.
III. Tobacco Retail License
Once issued a Tobacco Retail License, traders can purchase tobacco from tobacco distribution traders or other traders who sell tobacco. They are only obligated to directly retail tobacco for customers.
3.1 Requirements for issuing Tobacco Retail License
- Enterprise is established prescribed by law;
- Business location does not infringe location regulations: Do not sell tobacco at outside kindergarten gates, nursery schools, secondary schools, high schools, medicine researching institutes, hospitals, maternity homes, preventive health centers, clinics of communes, wards, towns within 100 meters from nearest boundary of business location;
- There are reference letters of tobacco suppliers which write clearly planned business locations.
3.2 Application for issuing Tobacco Retail License
- Application for issuing Tobacco Retail License (Annex 23 of Circular no. 57/2018/TT-BCT);
- Copy of Enterprise Registration Certificate or Company Tax Code Certificate;
- Copy of Reference Letter of tobacco distribution traders which writes clearly planned business location.
3.3 Settlement agency: Economics Department of District People’s Committee.
3.4 Settlement time limit: Within 15 working days from the date of receiving valid application.
3.5 Orders and procedures
- Step 1: Submitting application.
Trader makes 02 sets of applications. One is achieved internally, the other is directly sent to the Economics Department of the District People’s Committee.
- Step 2: Considering and appraising application.
After receiving application:
- In case of an incomplete valid application, the Economics Department of the District People’s Committee will have a written notice to request traders to add documents within 07 working days from the date of receiving application.
- In case of a complete valid application, the Economics Department of the District People’s Committee will be responsible for considering, inspectating, appraising and issuing Tobacco retail license within 15 working days from the date of receiving application. In case of rejection, the Economics Department of the District People’s Committee will have a written notice to reply with a clear reason.
3.6 Fee, charge:
The appraisal fee: 1,200,000 VND/ a business location/ each appraisal.
3.7 Time limit for Tobacco Retail License
Tobacco Retail License is valid within 05 years.
If traders want to continue to trade in tobacco, they must apply for re-granting the license at least 30 days before the expiry day.
Note: Each trader is only issued with one type of Tobacco Trading Licenses, including Distribution License, Trading License or Retail License. Therefore, depending on the aim as well as business model, traders should consider carefully in selecting suitable types of license to trade in tobacco.
The above post is the consultation of Phong & Partners Law Firm related to requirements, procedures and applications for issuing necessary licenses to trade in tobacco. If you have any questions, please contact Phong & Partners Law Firm with below details.
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PHONG & PARTNERS LAW FIRM
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