Legal basics:
- Law on Prevention and Control of Harmful Effects of Alcoholic Beverages 2019;
- Decree no. 105/2017/ND-CP on trade in alcohol;
- 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.
I. Alcohol Distribution License
Once issued an Alcohol Distribution License, traders can purchase alcohol from internal alcohol-producing traders or other alcohol distribution traders prescribed by license. Then, they can sell alcohol to traders who buy for exporting, distribute, retail, sell for on-site consumption or sell directly at permitted business locations.
1.1 Requirements for distributing alcohol
- Enterprise is established prescribed by law;
- There is an alcohol distribution system over the region from more than 02 provinces, cities under the central government (including place of trading is located at headquarter); There is at least one alcohol trader of each province/city under the central government. If an enterprise has branches or business locations outside a headquarter to trade in alcohol, it will not need confirmation of alcohol traders.
- There are reference letters or principal contracts of alcohol-producing traders, other alcohol distribution traders, or foreign alcohol suppliers.
1.2 Application for issuing Alcohol Distribution License
- Application for issuing license, according to Sample no. 01 of Decree 17/2020/ND-CP;
- Copy of Enterprise Registration Certificate;
- Dossier on alcohol distribution system, including 02 types are as follows:
+ Copy of a principal contract, a written confirmation or a commitment form to join the alcohol distribution system. Together with, a copy of the Alcohol Trading License of traders is planned to join the alcohol distribution system.
+ Copy of Branch’s Operation Registration Certificate or Registration Certificate of Business Location to trade in alcohol.
- Documents related to alcohol suppliers:
+ Copy of a written introduction or a principle contract of alcohol-producing traders, other alcohol distribution traders or foreign alcohol suppliers which is planned suitable types of alcohol with supplier’s operation to trade in alcohol;
+ If the alcohol supplier is an internal trader, they will have a copy of alcohol-producing license or alcohol distribution license.
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, procedures:
- Step 1: Submitting application
Trader submits directly a set of applications to the Ministry of Industry and Trade or by mail.
- Step 2: Considering, appraising application
After receiving application,
- In case of an incomplete valid application, the Ministry of Industry and Trade will have written notice to request traders to add applications within 03 working days from the date of receiving the application.
- In case of a complete valid application, the Ministry of Industry and Trade must consider, appraise and issue licenses to traders within 15 working days from the date of receiving application. In case of rejection, the Ministry of Industry and Trade has 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 Alcohol Distribution License
Alcohol Distribution License is valid within 05 years.
If traders want to continue to trade in alcohol, they must apply for re-granting the license at least 30 days before the expiry day.
II. Alcohol Trading License
Once issued a Alcohol Trading License, traders can purchase alcohol from internal alcohol-producing traders, alcohol distribution traders or other alcohol traders following license. Then, they sell it to traders who buy for exporting, alcohol traders or alcohol retail traders, alcohol traders for on-site consumption as well as directly sell alcohol at permitted business locations.
2.1 Requirements for trading alcohol
- Enterprise is established prescribed by law;
- There is an alcohol distribution system over the region of provinces, cities under the central government, location of a headquarter with at least one alcohol trader. In case an enterprise has branches or trading places outside a headquarter to trade in alcohol, they do not need confirmation of alcohol retail traders.
- There are reference letters or principal contracts of alcohol-producing traders, alcohol distribution traders or other alcohol traders.
2.2 Applications for issuing Alcohol Trading License
- Application for issuing Alcohol Trading License in accordance with Sample no. 01 of Decree 17/2020/ND-CP;
- Copy of Enterprise Registration Certificate;
- Dossier on alcohol distribution system, including 02 types are as follows:
+ Copy of a principal contract, a written confirmation or a commitment form to join the alcohol distribution system. Together with, a copy of the Alcohol Retail License of traders is planned to join the alcohol trading system.
+ Copy of Branch’s Operation Registration Certificate or Trading Location Registration Certificate to trade in alcohol.
- Documents related to alcohol suppliers:
+ Copy of a written introduction or a principle contract of internal producing traders, distribution traders or other traders which is planned types of alcohol to trade suitably the operation of producing traders, distribution traders or other traders;
+ Copy of Alcohol Producing License, Alcohol Distribution License or Alcohol Trading License of suppliers.
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, procedures:
- Step 1: Submitting application
Trader submits directly a set of applications to the Department of Industry and Trade or by mail.
- Step 2: Considering, 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 applications within 03 working days from the date of receiving the application.
- In case of a complete valid application, the Department of Industry and Trade must consider, appraise and issue an Alcohol Trading License to traders within 15 working days from the date of receiving application. In case of rejection, the Authority of Industry and Trade has 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 Alcohol Trading License
Alcohol Trading License is valid within 05 years.
If traders want to continue to trade in alcohol, they must apply for re-granting the license at least 30 days before the expiry day.
III. Alcohol Retail License
Once issued an Alcohol Retail License, traders can purchase alcohol from internal alcohol-producing traders, alcohol distribution traders, alcohol traders and sell it to traders who sell alcohol for on-site consumption or sell directly for purchasers at their business locations.
3.1 Requirements for retailing alcohol
- Enterprise, cooperative, union of cooperatives or sole trader are established as prescribed by law;
- Traders have the rights to lawfully use a permanent business location with a clear address.
- There are reference letters or principle contracts of alcohol-producing traders, alcohol distribution traders, or other alcohol traders.
3.2 Applications for issuing Alcohol Retail License
- Application for issuing Alcohol Retail License, according to Sample no. 01 of Decree 17/2020/ND-CP;
- Copy of the Enterprise Registration Certificate;
- Copy of supermarket’s location renting agreement;
- Copy of a reference letter or a principle contract of traders who produce, distribute or trade in alcohol.
3.3 Settlement Agency: Economics Department or Economics Department and the infrastructure of District People’s Community.
3.4 Settlement time limit: Within 10 working days from the date of receiving a valid application.
3.5 Orders, procedures:
- Step 1: Submitting application
Traders submit directly a set of applications to the Economics Department or Economics Department and the infrastructure of District People’s Community or by mail.
- Step 2: Considering, appraising application
After receiving application,
- In case of an incomplete valid application, the Economics Department or Economics Department and the infrastructure of District People’s Community will have a written notice to request traders to add applications within 03 working days from the date of receiving application.
- In case of a complete valid application, the Economics Department or Economics Department and the infrastructure of District People’s Community must consider, appraise and issue License to traders within 10 working days from the date of receiving application. In case of rejection, the Economics Department or Economics Department and the infrastructure of the District People’s Community 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 Alcohol Trading License
Alcohol Trading License is valid within 05 years.
If traders want to continue to trade in alcohol, they must apply for re-granting the license at least 30 days before the expiry day.
IV. Retailing Alcohol for on-site consumption
Once issued an Alcohol Trading License for on-site consumption, traders can purchase alcohol from internal alcohol-producing traders, alcohol distribution traders, alcohol retail traders and sell directly for consumers at their business locations.
Since March 22nd 2020, Decree 17/2020/ND-CP has been taking effect officially.
It is not required to apply for issuing these licenses when Traders sell on-site consumption of alcohol which has an alcohol concentration more than 5.5 degrees.They only register with the Economics Department or Economics Department and the infrastructure of District People’s Community, in accordance with Sample no. 13 about Alcohol Registration License for on-site consumption in Index II, attached Annex of Decree no. 17/2020/ND-CP.
Therefore, depending on the aim as well as business model, traders should consider carefully in selecting suitable types of license to trade in alcohol. The above post is the consultation of Phong & Partners Law Firm related to orders, procedures, dossiers for applying necessary licenses to trade in alcohol. If you have any questions, please contact Phong & Partners Law Firm with below details.
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PHONG & PARTNERS LAW FIRM
Add: 6th Floor, Thanh Loi Building, 249 Nguyen Van Linh Street, Danang city - 0905.102425
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Email: Phongpartnerslaw@gmail.com
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