Abolishment of Procedures for Granting of Tobacco Import Licenses for Sale at Duty-Free Shops? What Are the Regulations on Licensing?
Date: September 26, 2022, the Ministry of Finance sent Official Dispatch 5729/BTC-XNK 2022 to the Prime Minister of the Government of Vietnam regarding the abolition of the licensing procedure for importing cigarettes sold in duty-free shops.
Regulation on the issuance of licenses for importing cigarettes sold in duty-free shops?
The issuance of licenses for importing cigarettes to be sold in duty-free shops is stipulated in Clause 1, Clause 2, Clause 3, Article 5 of Decree 100/2020/ND-CP:
Specialized management for goods sold in duty-free shops
1. The import of cigarette products for duty-free business is conducted under the Permit of the Ministry of Industry and Trade.
2. Dossier for licensing
a) Official Dispatch of the duty-free business enterprise requesting approval to import cigarettes to sell in duty-free shops according to Form No. 03/CV Appendix II issued together with this Decree: 01 original copy;
b) Certificate of eligibility for duty-free business or Business registration certificate or Investment certificate: 01 copy. For the enterprise applying for the first-time license, a copy of the Certificate of eligibility for duty-free business must be submitted: 01 copy;
c) Report on the import, stock, and consumption status of cigarettes from the beginning of the year to the time of application for the permit, verified by the Customs Department managing the duty-free shop, duty-free warehouse according to Form No. 04/BCNKTKTL Appendix II issued with this Decree: 01 original copy.
3. Licensing procedures
a) The enterprise sends 01 set of dossiers as prescribed in Clause 2 of this Article by post or submits directly to the Ministry of Industry and Trade;
b) Licensing time
Within 10 working days (according to the date of receipt stamp by the Ministry of Industry and Trade) from the date of receipt of a complete and valid dossier, the Ministry of Industry and Trade issues the foreign trade good import license of cigarette products for the enterprise for duty-free business. In case of refusal to issue, the Ministry of Industry and Trade will reply in writing stating the reasons for non-issuance.
In the case of an incomplete and invalid dossier, within 05 working days (according to the date of receipt stamp by the Ministry of Industry and Trade) from the date of receipt of the enterprise's dossier, the Ministry of Industry and Trade notifies and requests the enterprise to supplement the dossier (notification form by document, fax, email, telephone, etc.).
Abolition of the licensing procedure for importing cigarettes sold in duty-free shops? Regulation on the issuance of licenses as stated? (Image from the Internet)
Abolition of the licensing procedure for importing cigarettes sold in duty-free shops?
In sub-item a Section 4 of Official Dispatch 5729/BTC-XNK 2022, the evaluation of the Ministry of Finance includes several notable points as follows:
- First: The duty-free business operations are already sufficiently stringent.
- Second: The buyers of cigarettes at duty-free shops are mainly outbound/departing passengers—not consuming within the domestic market. Inbound passengers and diplomatic entities can only purchase in limited quantities.
- Third: The majority of opinions from Ministries agree with the policy to abolish this administrative procedure. Furthermore, the related businesses also expressed the desire not to have to comply with the mentioned administrative procedure.
Based on the actual evaluations above, in sub-item b Section 4 of Official Dispatch 5729/BTC-XNK 2022, the Ministry of Finance recommended to the Prime Minister of the Government of Vietnam the following contents:
- First: Assign the Ministry of Health to report to the National Assembly to review and amend regulations in the Law on Prevention and Control of Tobacco Harms. In which, remove the import of cigarettes for duty-free business from the scope of Article 19 of the Law on Prevention and Control of Tobacco Harms 2012.
- Second: After amending the mentioned regulation, assign the Ministry of Finance to take the lead in reporting to the Government of Vietnam to amend Decree 100/2020/ND-CP.
Thus, in the coming time, it is expected to abolish the regulation on the licensing procedure for importing cigarettes at duty-free shops.
Entities eligible to buy cigarettes at duty-free shops?
In Section 1 of Official Dispatch 5729/BTC-XNK 2022, it has been mentioned about entities eligible to buy cigarettes at duty-free shops as follows:
- First: Outbound and transit passengers after completing outbound transit procedures, passengers on international flights departing from Vietnam or awaiting departure can purchase duty-free goods.
- Second: Passengers on international flights departing from Vietnam can purchase duty-free goods on the outbound aircraft. Passengers on international flights arriving in Vietnam can purchase duty-free goods on the aircraft operating international flights to Vietnam.
- Third: Inbound passengers can purchase duty-free goods at duty-free shops located in the restricted area of international airports right after completing inbound procedures, and not after leaving the restricted area at international airports.
- Fourth: Individuals enjoying preferential or exemption rights in Vietnam can purchase duty-free goods at domestic duty-free shops. When purchasing duty-free goods for an organization, it is required to present the duty-free goods limit book. When purchasing duty-free goods for personal use, it is required to present the limit book and an identification card issued by the Ministry of Foreign Affairs or a passport.
- Fifth: Crew members working on ships operating international routes (including foreign-flagged and Vietnamese-flagged ships operating international routes) can purchase duty-free goods at class 1 ports, domestic duty-free shops for personal needs, and common living needs of the crew to use on the ship while it is anchored at Vietnamese ports and to use on the ship outside Vietnam's territorial waters after the ship exits.
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