Joint Circular No. 01/2007/TTLT/BTM-BCN guiding the importation of cigarettes and cigars as prescribed 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 domestic agency buying, selling, processing, and transiting goods with foreign countries.

JOINT CIRCULAR

Guidelines for the importation of cigarettes and cigars as prescribed 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 related agency buying, selling, and processing activities

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Pursuant to Decree No. 29/2004/NĐ-CP dated January 16, 2004 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Trade;

Pursuant to Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to 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 related agency buying, selling, processing, and transiting goods with foreign countries.

The Joint Ministry of Trade - Ministry of Industry hereby provides specific guidelines for the importation of cigarettes and cigars as follows:

I. GENERAL PRINCIPLES

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

2. A list of cigarettes and cigars for import under the regime of state trading enterprises will be issued in Appendix No. 01 attached hereto.

3. Tobacco products, including cigarettes and cigars, are not encouraged for consumption according to the Framework Convention on Tobacco Control (FCTC) of the World Health Organization, which 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. Importation of cigarettes and cigars as samples for production purposes does not fall within the scope regulated by Sections II and III of this Circular and must be approved in writing by the Ministry of Industry.

5. Importation of cigarettes and cigars as samples for exhibitions does not fall within the scope regulated by Sections II and III of this Circular, shall not be sold in Vietnam, and must be approved in writing by the Ministry of Trade.

6. Importation of cigarettes and cigars for sale in duty-free shops does not fall within the scope regulated by 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 of 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 of the Prime Minister.

7. Temporary importation for re-export and transshipment trade of cigarettes and cigars shall be conducted in accordance with the provisions of 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 related agency buying, selling, processing, and transiting goods with foreign countries. Procedures for temporary importation for re-export and transshipment 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

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

2. Importation Procedures

An automatic licensing system shall apply to the importation of cigarettes and cigars. The automatic licensing procedure shall be carried out as follows:

a) In addition to the import declaration documents required by the customs authority, state trading enterprises must present to the customs authority one Application for Automatic Import Registration Form 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 Form shall be completed in accordance with Appendix No. 02 attached hereto.

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 for products circulating in the Vietnamese market, and affix the imported tobacco product label as prescribed by the Ministry of Finance.

2. Imported cigarettes and cigars sold domestically must comply with current distribution, wholesale, and retail regulations for tobacco products.

3. Imported cigarettes and cigars must comply with food safety regulations and quality control requirements, including harmful substance levels in tobacco products as prescribed by authorized agencies 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 send samples to the analysis and testing organization designated by the competent state authority to conduct sample analysis according to Vietnamese standards. This Certificate of Sample Analysis will be valid for all batches of the same brand from the same source.

5. Imported cigarettes and cigars must comply with Vietnamese laws on labeling tobacco products for sale in Vietnam; the place of origin must be indicated; and the place of consumption must be marked as "for the Vietnamese market."

IV. IMPLEMENTATION ORGANIZATION AND VIOLATION HANDLING

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

2. After three years, the Joint Ministry of Trade - 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 shall suspend or refuse to renew the importation of cigarettes and cigars for cases that violate the provisions of this Circular or other relevant laws. Depending on the nature and extent of the violation, organizations and individuals committing such 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 No. 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 situation of importing and planned imports for the following year.

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