Joint Circular No. 01/2007/TTLT-BTM-BCN guiding the importation of cigarettes and cigars as stipulated in Decree No. 12/2006/NĐ-CP dated January 23, 2006 of the Government detailing the implementation of the Law on Trade regarding international trade activities and intermediary buying, selling, processing, and transiting goods with foreign countries.

I. General Principles

1. Cigarettes and cigars are products manufactured from all or part of tobacco raw materials and processed for smoking.

2. The list of cigarettes and cigars for import under the state trading enterprise regime shall be set out in Appendix 01 attached to this Circular.

3. Tobacco products, including cigarettes and cigars, are not encouraged for consumption according to the World Health Organization's Framework Convention on Tobacco Control (FCTC), to which the Socialist Republic of Vietnam is a member. The State uniformly manages the production and importation of cigarettes and cigars; controls the supply, circulation, and consumption of tobacco products in the market. Only designated state trading enterprises are permitted to import cigarettes and cigars for domestic trade.

4. Importing cigarettes and cigars as samples for production purposes does not fall within the scope of regulation under Sections II and III of this Circular and must be approved in writing by the Ministry of Industry.

5. Importing cigarettes and cigars as samples for participation in exhibitions and fairs does not fall within the scope of regulation under Sections II and III of this Circular, may not be consumed in Vietnam, and must be approved in writing by the Ministry of Trade.

6. Importing cigarettes and cigars for sale in duty-free shops does not fall within the scope of regulation under Sections II and III of this Circular and shall be carried out in accordance with Circular No. 21/1998/TT-BTM dated December 24, 1998, issued by the Ministry of Trade guiding the implementation of the Regulations on Duty-Free Shops issued together with Decision No. 205/1998/QĐ-TTg dated October 19, 1998.

7. Temporary import for re-export and transshipment trade in cigarettes and cigars shall be conducted in accordance with the provisions of Decree No. 12/2006/NĐ-CP dated January 23, 2006, issued by the Government detailing the implementation of the Law on Commerce regarding international goods trading activities and foreign goods agency buying, selling, processing, and transit activities. Temporary import for re-export and transshipment procedures shall be directly handled at the customs checkpoint.

II. Designation of State Trading Enterprises, Procedures, and Customs Checkpoints for Importation

1. State Trading Enterprises for Importation

Vietnam Tobacco Corporation (Vinataba) shall be designated as the state trading enterprise for importing cigarettes and cigars for a period of three years, commencing from the date this Circular takes effect.

2. Import Procedures Automatic permit system shall apply to the importation of cigarettes and cigars. The automatic permit procedure shall be implemented as follows:

a) In addition to the import declaration documents required by the customs authority, the state trading enterprise must present to the customs authority one Application for Automatic Import Registration, confirmed by the Ministry of Trade, and one valid copy of the Certificate of Sample Analysis as stipulated in Clause 4, Section III of this Circular.

b) The Application for Automatic Import Registration shall be in accordance with Appendix 02 issued together with this Circular.

3. Cigarettes and cigars may only be imported into Vietnam through international border checkpoints.

III. Requirements for Imported Cigarettes and Cigars

1. Imported cigarettes and cigars circulating in the market must register trademark protection in Vietnam, comply with regulations governing products circulating in the Vietnamese market, and must have the imported tobacco product label affixed in accordance with the regulations of the Ministry of Finance.

2. Imported cigarettes and cigars sold in the domestic market shall comply with current distribution, wholesale, and retail regulations for tobacco products.

3. Imported cigarettes and cigars must adhere to food safety regulations and quality control standards, including harmful substance levels in tobacco products, as prescribed by competent authorities under the Framework Convention on Tobacco Control.

4. For cigarette and cigar brands being imported into Vietnam for the first time, before completing import procedures, the importer must submit samples of the imported cigarettes and cigars to organizations with analytical and testing functions designated by competent state authorities for analysis according to Vietnamese standards. This Certificate of Sample Analysis will be valid for all batches of the same brand from the same supplier.

5. Imported cigarettes and cigars must comply with Vietnamese laws regarding labeling of tobacco products for consumption in Vietnam; they must indicate the place of manufacture and the place of consumption as "for the Vietnamese market."

IV. Implementation and Handling of Violations

1. The Minister of Trade authorizes the Head of the Import-Export Department to confirm Applications for Automatic Import Registration.

2. After three years, the Ministry of Trade and the Ministry of Industry will coordinate with relevant ministries and sectors to evaluate the implementation of this Circular to consider extending the importation period for Vinataba or adding other state trading enterprises to participate in the importation of cigarettes and cigars.

3. The Ministry of Trade and the Ministry of Industry will suspend or not extend the importation of cigarettes and cigars for cases violating the provisions of this Circular or related laws. Depending on the nature and severity of the violation, organizations and individuals committing violations will be dealt with according to the law.

4. Quarterly, state trading enterprises shall report to the Ministry of Trade and the Ministry of Industry on the situation of importing and consuming cigarettes and cigars, specifying types, quantities, import value, selling price, wholesale and retail networks of imported tobacco products in the domestic market, and plans for future imports (as detailed in Appendix 03 attached to this Circular). Before September 30 each year, state trading enterprises shall submit a report (in lieu of the third quarter report) to the Ministry of Trade and the Ministry of Industry on the import situation and planned imports for the following year.

5 ||| This Circular shall take effect fifteen days from the date of publication in the Official Gazette.