Procedures for applying for a license to distribute tobacco products

1. What is a trader? What is a trader distributing tobacco products?

Pursuant to the provisions of Article 6 of the 2005 Commercial Law on specific traders as follows:

– Traders include legally established economic organizations, individuals operating commercially independently, regularly and with business registration.

– Traders have the right to operate trade in industries, in areas, in forms and by methods not prohibited by law.

– The right of traders to legally engage in commercial activities is protected by the State.

– The State exercises a limited-term State monopoly on commercial activities for some goods and services or in some areas to ensure national interests. The Government specifically regulates the list of goods, services, and areas of State monopoly.

Pursuant to Clause 10, Article 3, Decree 67/2013/ND-CP, amended by Clause 2, Article 1, Decree 106/2017/ND-CP, regulates the concept of traders distributing tobacco products specifically as follows: following:

Tobacco product distributors are traders who purchase tobacco products directly from Tobacco product suppliers or tobacco product distributors to sell to tobacco product wholesalers and tobacco product retailers.

2. What are the conditions to be granted a license to distribute tobacco products?

Pursuant to the provisions of Clause 1, Article 26 of Decree 67/2013/ND-CP, amended and supplemented by Decree 106/2017/ND-CP and Decree 08/2018/ND-CP, specifically as follows: The following:

– Is an enterprise established in accordance with the law

– The business location does not violate the regulations on locations not allowed to sell cigarettes according to the provisions of Clause 2, Article 25 of the Law on Prevention and Control of Harmful Effects of Tobacco 2012

– Has a tobacco product distribution system in 02 or more provinces (in localities) Each province or city must have at least 01 tobacco product wholesaler).

– There is a sales introduction document from the Tobacco Supplier clearly stating the expected business area.

3. Procedures for applying for a license to distribute tobacco products

About the dossier, based on Clause 1, Article 27 of Decree 67/2013/ND-CP, amended and supplemented by Decree 106/2017/ND-CP and Decree 08/2018/ND-CP, regulating the application for a license to distribute tobacco products. Specific tobacco products are as follows:

– Application for a License to distribute tobacco products;

– Copy of Enterprise Registration Certificate or Business Registration Certificate and Tax Code Certificate;

– Copy of introductory text of tobacco product suppliers or tobacco product distributors, clearly stating the geographical area expected business;

– Report on business results of the enterprise (in case of applying for re-issue, amendment or supplementation of license)

+ Report on business results of the previous 03 years, accompanied by a detailed list and valid copy of sales contracts with each tobacco product supplier or other tobacco product distribution enterprise, taxes paid submit;

+ Sales organization form, distribution system management method.

– List of traders, copy of Enterprise registration certificate or Business registration certificate and Tax code certificate, Tobacco product business license (if already doing business) of traders who have been or will be part of the drug product distribution system leaves.

Regarding authority, based on Clause 1, Article 28 of Decree 67/2013/ND-CP on the authority to issue licenses to buy and sell tobacco products, specifically as follows:

– The Ministry of Industry and Trade issues, re-issues, amends and supplements Licenses to distribute tobacco products;

– Department of Industry and Trade issues, issues renew, amend, and supplement the License to wholesale tobacco products;

– The Chamber of Industry and Trade or the Chamber of Economics (specialized agency under the People’s Committee of the district, town, and city of the province – hereinafter referred to as the Chamber of Industry and Trade) issues, reissues, amends, and supplements the License to retail tobacco products.

About the procedural order, based on Clause 2, Article 28 of the Decree. Decree 67/2013/ND-CP amended by Clause 14, Article 1 of Decree 106/2017/ND-CP on procedures for granting tobacco product trading licenses, specifically as follows:

– A tobacco product trading trader applying for a tobacco product trading license shall prepare 02 sets of documents as prescribed in Article 27 of this Decree, 01 set shall be sent to the licensing authority, the trader shall keep 01 set;

– Within 15 working days from receipt of complete and valid documents, the licensing authority is responsible for reviewing Review, inspect, appraise and issue licenses to distribute, wholesale and retail tobacco products to traders. In case of refusal, a written response must be made clearly stating the reason;”

– In case of insufficient valid documents, within 07 working days from the date of receipt of the trader’s dossier, the licensing agency shall send a written request to the trader to supplement the dossier.