Tobacco is a commodity that is widely and easily bought and sold in Vietnam. However, not everyone understands the regulations when trading this item. LSX Lawfirm will give you an article about: “Conditions for tobacco retail business in Vietnam”, as follows:
Legal grounds
– Law on Investment 2020
– Law on Prevention and Control of Tobacco Harms 2012
– Decree 67/2013/ND-CP detailing a number of articles and measures to implement the Law on Prevention and Control of Tobacco Harms on tobacco trading.
– Decree 106/2017/ND-CP amending and supplementing a number of articles of the Government’s Decree No. 67/2013/ND-CP dated June 27, 2013 detailing a number of articles and implementation measures Law on prevention and control of harmful effects of tobacco on tobacco business
– Decree 08/2018/ND-CP amending a number of Decrees related to business investment conditions under the scope of state management of the Ministry of Industry and Trade
– Circular 168/2016/TT-BTC stipulating the rate of collection, mode of collection, payment, management and use of fees for appraisal of goods and services subject to business restrictions; goods and services subject to conditional business in the field of commerce and fees for licensing the establishment of the Goods Exchange.
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 related to the conditions for the issuance of the License to trade in tobacco ingredients in Vietnam
- Firstly, distributors are traders that purchase tobacco directly from tobacco suppliers and sell them to tobacco wholesalers.
- Secondly, wholesalers are traders that purchase tobacco from tobacco distributors and tobacco suppliers to sell to tobacco retailers
- Finally, retailers are traders that purchase products from tobacco wholesalers and sell them to consumers.
Does retail tobacco require a license?
Clause 13, Article 3 of Decree 67/2013/ND-CP (amended according to Clause 3, Article 1 of Decree 106/2017/ND-CP) stipulates:
Retailer of tobacco products means a trader that buys tobacco products from a trader that distributes tobacco products or a trader who wholesales tobacco products to sell directly to consumers.
According to the provisions of Clause 1, Article 7 of the Law on Investment 2020, conditional investment and business lines are industries and trades in which the performance of business investment activities in such industry or trade must satisfy necessary conditions because: reasons for national defense, national security, social order and safety, social ethics, and community health.
The list of industries and trades with conditional business investment is specified in Appendix IV of the Investment Law 2020. In which, there are lines of business in tobacco products, tobacco ingredients, machinery and equipment. tobacco industry.
Thus, in order to do tobacco retail business, traders need to meet certain conditions as prescribed by law and must be granted a License to retail tobacco products.
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 tobacco retail business in Vietnam
To be granted a tobacco retail license, traders need to meet the following conditions:
(1) Traders established in accordance with the law.
(2) The business location does not violate the regulations on places not to sell cigarettes as prescribed in Clause 2, Article 25 of the Law on Prevention and Control of Tobacco Harms 2012. Specifically, it is prohibited to sell cigarettes at:
- Firstly Medical facilities
- Secondly Educational institution
- Thirdly Care, nurture, play and entertainment facilities exclusively for children
- Then Facilities or areas with high risk of fire and explosion
- Place of work
- Public places
- Then Public transport: cars, airplanes, trams, ships, trains
- Bars, karaoke, discos, hotels and tourist accommodation establishments
- Finally Outside the gate of kindergartens, kindergartens, primary schools, junior high schools, high schools, medical research institutes, hospitals, maternity houses, preventive health centers, commune health stations, wards, towns within 100 meters from the nearest campus boundary of that establishment.
(3) There is a written introduction of the supplier of tobacco products or of traders who distribute tobacco products, clearly stating the expected business area.
Related questions
Firstly, Tobacco planters, enterprises that plant, process, trade in tobacco ingredients shall classify tobacco ingredients in accordance with law.
Secondly, the Ministry of Industry and Trade shall cooperate with relevant Ministries and agencies in formulating national technical standards of tobacco ingredient classification.
A written request for the Certificate of eligibility to invest in tobacco cultivation.
A copy of the Certificate of Business registration.
Then, The declaration of the area, floor plan of the warehouse, workshop, office, and other ancillary sites.
The manifest of equipment: ventilation system, fire prevention and fighting equipment, hygrometer, thermometer, pest prevention equipment, shelves and platforms.
Then, The list of employees, copies of labor contract and intermediate degrees in agriculture (or higher) of investment managers; technical supporters, and ingredient purchasers.
Finally, Copies of contracts to invest in tobacco cultivation signed with planters and the statement of planting area and estimated quantity of tobacco leaves.
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