Procedures for applying for a liquor distribution license in Vietnam 2022

Liquor distribution is a much larger business than retail and wholesale of alcohol. Alcohol has always been one of the commodities that the state has strict control over; Therefore, traders who want to distribute alcohol must definitely carry out the procedures for applying for a license to distribute alcohol according to the regulations. So what are the alcohol distribution conditions? What rights and obligations do traders have? In this article, LSX legal firm introduces: “Procedures for applying for a liquor distribution license in Vietnam 2022”

Legal grounds

• Decree 105/2017/ND-CP
• Decree 98/2020/ND-CP

Liquor distribution license

A liquor distribution license is a certificate that allows activities to import alcohol and buy alcohol from domestic alcohol producers and other alcohol distributors stated on the license for sale to traders who distribute alcohol, wholesale alcohol, retail alcohol, sell alcohol for topically consumption within licensed provinces and centrally-run cities, and for traders to buy alcohol for production.

Conditions for granting a license to distribute alcohol

Currently, according to the latest regulations in Article 11 of Decree 105/2017/ND-CP and Clause 3, Article 17 of Decree 17/2020/ND-CP; Alcohol distribution conditions include:

• Enterprise established in accordance with the law;
• Having a liquor distribution system from 02 provinces or centrally-run cities or more (including the area where the enterprise’s head office located). Besides, each province or centrally run city must have at least 01 alcohol wholesaler. In case the enterprise has established a branch or a business location outside its head office to trade alcohol, the certification of the alcohol wholesaler is not required;
• Having a written introduction or a contract of the trader producing alcohol; other alcohol distribution traders or overseas suppliers of alcohol.

The fine for not applying for a liquor distribution license?

According to the provisions of Vietnamese law, an alcohol business needs to apply for a business license; Similarly, to import alcohol, businesses need to apply for a license to distribute alcohol. This presents an important legal document proving the legitimate business activities of traders.
If the trader fails to comply with regulations, does not apply for a license to distribute alcohol, or the license has expired without renewal, the competent authorities will apply an administrative sanction to the business owner according to regulations.
Clause 3, Article 6 of Decree 98/2020/ND-CP stipulates the fine as follows:
“3. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for committing one of the following violations:
a) Failing to obtain the business license when trading in goods or services classified as conditional business lines;
b) Using an expired business license when trading in goods or services classified as conditional business lines;
c) Failing to meet business conditions during the trading in goods or services classified as conditional business lines;
d) Using the business license of another trader.”
Furthermore, Clause 5 provides the following:
“5. A fine that is twice as much as the fine specified in Clause 1 through 4 of this Article shall be imposed upon the entity that engages in the production of industrial alcohol, processing or trading in tobacco raw materials, manufacturing of tobacco products, distribution or wholesaling of alcohol or tobacco products, and commits an administrative violation.”

So, traders who violate the law may have to pay for a fine up to 30 million VND.

Procedures for applying for a license to distribute alcohol

Step 1: Prepare dossiers

The application requires the following documents:

• An application form for a license to distribute alcohol, made according to Form No. 01 attached to this Decree.
• Copy of Certificate of Business Registration or equivalent legal document.
• Documentation of alcohol distribution systems in two cases:

1. A copy of the principle contract, letter of confirmation or commitment to participate in the alcohol distribution system together with a copy of the liquor wholesale license of the trader planning to participate in the alcohol distribution system;
2. A copy of the enterprise’s branch operation registration certificate or the enterprise’s business location registration certificate for alcohol business.

• Liquor supplier related documents:

1. Copies of introductory documents or principle contracts of the liquor producer, other alcohol distributors, or overseas alcohol supplier; which clearly state the types of alcohol expected to trade in accordance with the activities of alcohol suppliers;
2. In case of a domestic alcohol supplier, a copy of the Liquor Production License or Liquor Distribution License.

Step 2: Submit the application

Alcohol divided by levels, so for alcohol traders with 5.5 alcohol level or more, they need to apply for a license to distribute alcohol and submit an application to the Ministry of Industry and Trade. If a trader does business with less than 5.5 alcohol level, he/she must apply for a permit and submit a dossier at the Economic Office of the district where the trader locates his/her business.

Step 3: Process the application and return the results

Within 15 working days from the date of receipt of complete and valid dossiers, competent state agencies shall consider, appraise and grant licenses to traders. In case of refusal, a written reply must be given clearly stating the reason.
In case there are not enough valid dossiers; within 03 working days from the date of receiving the dossier; The licensing authority must make a written request for additional information.
In case there are not enough dossiers or the dossiers are not valid, within 03 working days from the date of receiving the dossiers, the licensing agency must make a written request for supplementation.

Legal service of LSX Legal Firm

LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:

• Legal advice related to new regulations in business suspension;
• Representing in drafting and editing documents;
• We commit the papers to be valid, and legal for use in all cases;
• Represent to submit documents, receive results, and hand them over to customers.

With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.

Furthermore, using our service, you do not need to do the paperwork yourself, We guarantee to help you prepare documents effectively and legally.

Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.

After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.

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Related questions

Contact LSX

Finally, hope this article is useful for you to answer the question about “Procedures for applying for a liquor distribution license in Vietnam 2022”. If you need any further information, please contact  LSX Law firm: +84846175333 or Email: [email protected]

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