Application for the Certificate of eligibility to invest in tobacco cultivation in Vietnam

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Legal grounds

Decree No. 67/2013/ND-CP

Some definitions about tobacco cultivation in Vietnam

Accordingly, Tobacco is a product manufacture wholly or partially from tobacco ingredients; and in the form of cigarettes, cigars, shredded tobacco used for smoking pipes, smoking, chewing, or sniffing.

Then, Shredded tobacco is tobacco manufacture wholly or partially from tobacco ingredients; and made in the form of tobacco shreds used for smoking pipes, rolling, smoking, and chewing.

So, Tobacco:

• Distributors are traders that purchase tobacco directly from tobacco suppliers and sell them to tobacco wholesalers.
• Wholesalers are traders that purchase tobacco from tobacco distributors and tobacco suppliers to sell to tobacco retailers
• Retailers are traders that purchase products from tobacco wholesalers and sell them to consumers.

Investment in tobacco cultivation and use of tobacco variations

The investment in areas where tobacco plants planted in each locality must be conformable with the planning for tobacco ingredient area approved by competent state authorities and local land planning.

Then, the use of tobacco variations must comply with the laws on management of plant varieties.

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Conditions for the issuance of the Certificate of eligibility to invest in tobacco cultivation.

So, conditions for the issuance of the Certificate of eligibility to invest in tobacco cultivation:

1. The trade in tobacco ingredients is registered.
2. Investment scale, infrastructure, equipment, and personnel:

a) The area for tobacco cultivation is at least 100 hectares a year

b) The premises where ingredients are sold include the classification sector, packaging sector, and storage sector that suit the business scale;

c) The area of the warehouse of tobacco ingredients must not be smaller than 500m2. The warehouse must have a ventilation system and equipment that suitable for the preservation of the tobacco ingredients; including: thermometer and hygrometer to monitor the temperature; and relative humidity of the air in the warehouse, equipment for pest prevention; the shelves and platforms where tobacco ingredients are put must be installed at least 20 cm from the ground; and 50 cm from the walls and pillars;

d) Employees are proficient and experienced in investment management, technical support, and ingredient purchase. Every employee must hold at least an intermediate degree in agriculture. Each technician is in charge of no more than 50 hectares of tobacco plantation.

3. Condition for trading in tobacco ingredients.

Contracts to invest in tobacco cultivation signed with planters must be suitable for the business scale.

4. Environment protection and fire and explosion prevention.

Vehicles and equipment serving fire prevention and fighting and environment protection must be adequate.

Application for the Certificate of eligibility to invest in tobacco cultivation

1. A written request for the Certificate of eligibility to invest in tobacco cultivation.
2. A copy of the Certificate of Business registration.
3. Then, The declaration of the area, floor plan of the warehouse, workshop, office, and other ancillary sites.
4. The manifest of equipment: ventilation system, fire prevention and fighting equipment, hygrometer, thermometer, pest prevention equipment, shelves and platforms.
5. Then, The list of employees, copies of labor contract and intermediate degrees in agriculture (or higher) of investment managers; technical supporters, and ingredient purchasers.
6. Finally, Copies of contracts to invest in tobacco cultivation signed with planters and the statement of planting area and estimated quantity of tobacco leaves.

Related questions about “Application for the Certificate of eligibility to invest in tobacco cultivation in Vietnam”

Question 1: Classification of tobacco ingredients?

1. Firstly, Tobacco planters, enterprises that plant, process, trade in tobacco ingredients shall classify tobacco ingredients in accordance with law.
2. Secondly, the Ministry of Industry and Trade shall cooperate with relevant Ministries and agencies in formulating national technical standards of tobacco ingredient classification.

Question 2: Tobacco business management?

1. The State shall unify the management of the investment, manufacture, sale, export, import of tobacco, and other activities related to the sale of tobacco and tobacco ingredients.
2. Then, Tobacco is in the list of goods restricted from business. Organizations and individuals that manufacture, trade in tobacco, process tobacco ingredients, and make investments in tobacco cultivation must obtain licenses.
3. Then, The State shall control the supply of tobacco to the market (including quantities of manufactured and imported tobacco), appoint major tobacco importers, and control the sale of tobacco on the market to reduce tobacco harm.
4. The State shall rearrange tobacco manufacturers towards making inefficient manufacturers more competitive in the domestic and international marker. Then, the State shall strictly control the trade in tobacco by the Network of tobacco trade.
5. Finally, Machinery and equipment used for tobacco manufacturing, ingredients, cigarette papers, and tobacco are goods under the management of the Ministry of Industry and Trade.

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