New points of the Government’s Decree on tobacco trading in Vietnam

Decree No. 106/2017/NĐ-CP of Vietnam’s Government clearly states that tobacco trading is in the list of conditional business lines. Any organizations and individuals that manufacture and/or trade in tobacco products, process and/or trade in tobacco ingredients, or make investments in tobacco cultivation must obtain a license as regulated by law.

According to this Decree, “tobacco distributors” refers to traders that purchase tobacco products directly from tobacco suppliers or other tobacco distributors and sell them to tobacco wholesalers and tobacco retailers.

Tobacco distributors are entitled to purchase tobacco products directly from tobacco suppliers or other tobacco distributors and sell them to tobacco traders or retail them at their retail outlets within the licensed regions.

According to this Decree, “tobacco retailers” refers to traders that purchase tobacco products directly from tobacco distributors or tobacco wholesalers and sell them to consumers.

Tobacco retailers are entitled to purchase tobacco products from tobacco distributors or tobacco wholesalers and sell them at the licensed retailing locations.

Moreover, Decree No. 106/2017/NĐ-CP also provides amendments as follows:

Tobacco distributors are entitled to purchase tobacco products directly from tobacco suppliers or other tobacco distributors and sell them to tobacco traders or retail them at their retail outlets within the licensed regions.

Tobacco retailers are entitled to purchase tobacco products from tobacco distributors or tobacco wholesalers and sell them at the licensed retailing locations.

In Decree No. 106/2017/NĐ-CP, Vietnam’s Government has supplemented the following provisions:

“Tobacco traders” refers to tobacco distributors, tobacco wholesalers and tobacco retailers.

This Decree has supplemented that the application for the Certificate of eligibility to invest in tobacco cultivation shall contain the list of tobacco farmers, growing location and area with certification made by the Commune-level People’s Committee.

An enterprise that is granted the License to manufacture tobacco products and wishes to import tobacco into Vietnam to serve its research and experimental production activities must submit an application by hand or by post or through the internet network to the Ministry of Industry and Trade. The application includes: the application for approval for import of tobacco and documents proving the origin of imported tobacco samples.

Within 07 working days from the receipt of a valid application, the Ministry of Industry and Trade shall consider the application and give a written response to the applicant. If an application is refused, the written response shall specify reasons for refusal.

Licenses to trade tobacco products which have been issued to tobacco traders in accordance with Decree No. 67/2013/ND-CP dated June 27, 2013 of Vietnam’s Government will remain valid until their expiration date.

Source: Finance Magazine

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