Import, wholesale, retail, distribution of alcohol
Thứ sáu - 04/12/2020 11:58I. Legal basis:
- Law No. 03/2016/QH14
- Decree 105/2017/ND-CP
- Decree 17/2020/ND-CP
II. Research content:
Liquor trading is the business line on the list of conditional investment and business lines (Section 50, Appendix 4 of Law No. 03/2016 / QH14). Enterprises that want to import, distribute, trade and retail liquor need to obtain a license from the competent authority, specifically:
1. Import, distribution of liquor
An enterprise with a liquor distribution license is permitted to import liquor. (Article 30.1 Decree 105/2017/ND-CP). However, an enterprise with a license for industrial production of liquor is permitted to import or entrust an importer to import semi-finished liquor for production of finished products. (Article 30.2 Decree 105/2017/ND-CP).
a. Conditions for liquor distribution
The licenses for liquor distribution are only granted to enterprises that satisfy the following conditions:
- Being an enterprise established in accordance with law (Article 11.1 Decree 105/2017/ND-CP);
- There should be liquor distribution systems within at least 02 provinces or central-affiliated cities (including the administrative divisions where the liquor distributors’ headquarters is located); at least an liquor trader within each province or central-affiliated city. If the spirit distributor establishes a branch or business location besides its headquarters for the purpose of liquor sale, it is not required to ask for confirmation from the spirit wholesaler (Article 16.5 Decree 17/2020/ND-CP); and
- Having introduction letters from or in-principle contracts with liquor producers and/or liquor distributors or overseas liquor suppliers (Article 11.5 Decree 105/2017/ND-CP).
b. Application file for issuance of a license for liquor distribution (Article 21 Decree 105/2017/ND-CP and Article 16 Decree 17/2020/ND-CP)
An application file for issuance of a license for liquor distribution shall be formulated in one (1) set, comprising:
- Request for issuance of a license for liquor distribution on standard form 1 issued with Decree 105/2017/ND-CP.
- Copy enterprise registration certificate or document with equivalent legal validity.
- Document concerning the spirit distribution system includes one of the two following types:
- A copy of the agreement in principle, confirmation letter or commitment to participating in the liquor distribution system enclosed with a copy of the liquor wholesaling license of the wholesaler expected to participate in the spirit distribution system;
- A copy of the distributor’s Certificate of registration of operation of the branch or Certificate of registration of the business location for liquor trading purpose.
- Data relevant to liquor supplier:
- Copy introduction letters from or in-principle contracts with liquor producers and other liquor distributors or from overseas liquor and suppliers, specifying the types of liquor in which it is proposed totrade in conformity with the activities of such liquor suppliers;
- If the suppliers are domestic entities then there must also be copies of their liquor production or liquor distribution licenses.
2. Wholesaling of liquor
Enterprises need to be granted a license for wholesale of liquor to do business in wholesale of liquor.
a. Conditions for liquor wholesaling:
- Being an enterprise established in accordance with law. (Article 12.1 Decree 105/2017/ND-CP);
- There should be an liquor wholesaling system within a province or central-affiliated city where the wholesaler’s headquarters is located with at least 01 spirit retailer. If the spirit wholesaler establishes a branch or business location besides its headquarters for the purpose of spirit sale, it is not required to ask for confirmation from the spirit retailer (Article 16.5 Decree 17/2020/ND-CP); and
- Having introduction letters from or in-principle contracts with liquor producers and/or liquor distributors or overseas liquor suppliers. (Article 12.5 Decree 105/2017/ND-CP).
b. Applications for licenses for liquor wholesaling (Article 22 Decree 105/2017/ND-CP)
An application file for issuance of a license for liquor wholesaling shall be formulated in one (1) set, comprising:
i. Request for issuance of a license for liquor distribution on standard form 1 issued with Decree 105/2017/ND-CP.
ii. Copy enterprise registration certificate or document with equivalent legal validity.
iii. Document concerning the spirit wholesaling system includes one of the two following types:
- A copy of the agreement in principle, confirmation letter or commitment to participating in the spirit wholesaling system enclosed with a copy of the spirit retail license of the retailer expected to participate in the spirit wholesaling system;
- A copy of the retailer’s Certificate of registration of operation of the branch or Certificate of registration of the business location for spirit trading purpose.
iv. Data relevant to liquor supplier:
- Copy introduction letters from or on-principle contracts with domestic producers, with distributors or other wholesalers, specifying the types of liquor in which it is proposed to trade in compliance with the activities of such producers, distributors or other wholesalers;
- Copies of the liquor production, distribution or wholesaling licenses of the liquor suppliers.
3. Retailing of liquor
Enterprises need to be granted a license for retail of liquor to do business in of liquor
Enterprises need to be granted a license for retail of liquor to do business in of liquor
- Requirements for retailing of liquor (Article 13 Decree 105/2017/ND-CP)
- Being an enterprise, cooperative, cooperative group or business household established in accordance with law.
- Having the right to lawfully use fixed business premises with a clear address.
- Having introduction letters from or in-principle contracts with liquor producers and/or liquor distributors or liquor wholesalers.
- Application for the license for liquor retailing (Article 23 Decree 105/2017/ND-CP)
An application file for issuance of a license for liquor retailing shall be formulated in one (1) set, comprising:
- Request for issuance of a license for liquor distribution on standard form 1 issued with Decree 105/2017/ND-CP.
- Copy certificate of registration of the enterprise, cooperative, cooperative group or business household.
- Copy lease contract or copy date proving lawful use right to the facilities proposed to be the retail location/s.
- Copy introduction letters from of or in-principle contracts with liquor producer, distributor or wholesaler.
4. Authority for issuance of licenses
Authority to issue licenses: (Article 25 Decree 105/2017/ND-CP):
- The Ministry of Industry and Trade [MOIT] issues licenses for industrial production of liquor on a scale of 3 million liters or more per year and liquor distribution licenses.
- Departments of Industry and Trade [DOIT] issue licenses for industrial production of liquor on a scale of under 3 million liters or more per year and liquor wholesaling licenses within the geographical area of the province;
- The Economic or Economic and Infrastructure Office under the People’s Committees of districts, town ship or provincial township issues licenses for small-scale production of liquor for commercial purposes, liquor retailing licenses and licenses for on-the-spot sales of liquor for consumption within the geographical area of the district, township or provincial town.
5. Procedures for issuance of licenses
Business entities shall lodge their applications in person, via the post, or online (if applicable) with the license-issuing authority. (Article 25.2 Decree 105/2017/ND-CP).
- Applicable to liquor licenses for industrial production, distribution and wholesaling:
- The authority shall, within fifteen (15) days after receipt of a complete and valid file, evaluate the file and issue a license to the applicant, and in a case of refusal shall provide a written response explaining the reasons.
- If an application file is incomplete or invalid, the authority shall, within three (3) business days after receipt, send a letter requesting amendment of the file.
- Applicable to liquor licenses for small-scale production, retailing licenses and licenses for on-the-spot sales for consumption:
- The authority shall, within ten (10) days after receipt of a complete and valid file, evaluate the file and issue a license to the applicant, and in a case of refusal shall provide a written response explaining the reasons.
- If an application file is incomplete or invalid, the authority shall, within three (3) business days after receipt, send a letter requesting amendment of the file.
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