Decree No. 119/2007/ND-CP On the Production and Business of Tobacco

DECREE

On tobacco production and business

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THE GOVERNMENT

Based on the Law on the Organization of the Government dated December 25, 2001;

Pursuant to Resolution No. 12/2000/NQ-CP dated August 14, 2000 of the Government on the "National Policy on Prevention and Control of Harmful Effects of Tobacco for the Period 2000-2010";

Considering the proposal of the Minister of Industry,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates matters related to tobacco production and business, including activities concerning planning; investment in production development; planting, processing, purchasing, and selling raw materials and auxiliary materials for tobacco; production and consumption of tobacco products; import and export of machinery, equipment, raw materials, and tobacco products in the Socialist Republic of Vietnam.

Article 2. Applicability

This Decree applies to organizations and individuals, both domestic and foreign, participating in tobacco production and business activities and other activities related to tobacco production and business within the territory of Vietnam.

Article 3. Application of Related Laws and International Treaties

1. Activities of tobacco production and business must comply with the provisions of this Decree and other relevant laws.

2. In cases where international treaties to which the Socialist Republic of Vietnam is a party provide different provisions from those of this Decree regarding tobacco production and business, such international treaties shall be applied.

Article 4. Definitions

In this Decree, the following terms are understood as follows:

1. Leaf Tobacco is the leaf of the tobacco plant with the scientific name Nicotiana tabacum L. and Nicotiana rustica L., including sun-dried and air-dried leaves.

2. Tobacco Raw Materials are tobacco in the form of loose leaves, leaves that have been preliminarily processed to remove stems, tobacco strands, tobacco sheets, tobacco stems, and other substitute products used to produce tobacco products.

3. Tobacco Products are products made entirely or partially from tobacco raw materials and processed in the form of cigarettes, cigars, tobacco strands for pipe smoking, and other forms of products for smoking, chewing, or sniffing.

4. Auxiliary Materials for Tobacco are all types of materials other than tobacco raw materials used in the production of tobacco products.

5. State Trading in Importation of Tobacco Products is a mechanism for importation based on the State designation of key enterprises for the importation of tobacco products.

6. Production Capacity of Tobacco Products is the capacity of synchronized machinery and equipment to produce tobacco products.

7. Processing of Tobacco Raw Materials is the processing activity carried out on a chain of machinery and equipment to separate tobacco stems or process tobacco strands, tobacco sheets, and other substitute products used to produce tobacco products.

Article 5. Principles of Management of Tobacco Production and Business

1. The State exercises unified management over tobacco production and business activities, implementing monopoly over the production and importation of tobacco products.

2. The State controls the supply level of tobacco products to the market, production volume, and importation of tobacco products; implements state trading for imports; and controls the consumption of tobacco products in the market to reduce the harmful effects of tobacco.

3. Tobacco raw materials are goods subject to conditional business. Tobacco products are restricted goods. Investment in tobacco product production falls under conditional investment areas. Producing tobacco products is a business activity requiring a license.

4. Specialized machinery and equipment for tobacco, tobacco raw materials, cigarette paper, and tobacco products are goods subject to specialized management by the Ministry of Industry.

Chapter II

PLANTING, PROCESSING AND BUSINESS OF TOBACCO RAW MATERIALS

Article 6. Investment in tobacco plant cultivation and use of tobacco seeds

1. Investment in developing tobacco planting areas in each locality must be in accordance with the land use plan for each locality and carried out according to the approved tobacco raw material development plan.

2. The use of tobacco seeds must comply with the legal regulations on seed management.

Article 7. Grading of tobacco raw materials

1. Tobacco growers, enterprises engaged in tobacco planting, processing, and trading of tobacco raw materials must conduct grading of tobacco raw materials in accordance with the provisions of the law.

2. The Ministry of Industry shall take the lead and coordinate with relevant ministries to issue standards for grading tobacco raw materials.

Article 8. Trading of tobacco raw materials

1. Organizations and individuals may only engage in trading of tobacco raw materials when they have a certificate confirming compliance with the conditions for trading tobacco raw materials issued by competent state authorities and strictly adhere to these conditions throughout their operations.

2. Conditions for obtaining a certificate confirming compliance with the conditions for trading tobacco raw materials include:

a) Registration of tobacco raw material items for trade;

b) A business premises that meets technical requirements, equipment, environmental hygiene, fire and explosion prevention; a trading process suitable for the industry and profession of buying and selling tobacco raw materials; the location of the business premises must be consistent with the approved tobacco raw material development plan;

c) Management staff, technical staff, and employees meeting the requirements of professional qualifications, expertise, and work experience as stipulated by law;

d) An investment contract for tobacco raw material regions in accordance with the tobacco raw material development plan and annual plans.

3. The Ministry of Industry shall provide detailed guidance on the authority, procedures, and formalities for issuing certificates confirming compliance with the conditions for trading tobacco raw materials.

Article 9. Processing of tobacco raw materials

1. Processing of tobacco raw materials is a business activity subject to conditions. Enterprises may only operate when they have a Certificate confirming compliance with the conditions for processing tobacco raw materials issued by the Ministry of Industry and strictly adhere to these conditions throughout their operations.

2. Conditions for obtaining a Certificate confirming compliance with the conditions for processing tobacco raw materials include:

a) Being an enterprise established in accordance with the law, registered for tobacco raw material processing;

b) Processing activities in line with the approved tobacco industry strategy and overall planning;

c) Suitable physical facilities for the scale of business: meeting technical, technological, machinery and equipment, environmental hygiene, fire and explosion prevention requirements;

d) Management staff, technical staff, and employees meeting the requirements of professional qualifications and expertise as stipulated by law;

e) An investment contract for tobacco raw material regions in accordance with the tobacco raw material development plan and annual plans;

f) A Certificate confirming compliance with the conditions for trading tobacco raw materials as provided for in Article 8 of this Decree.

3. The Ministry of Industry shall provide detailed guidance on the procedures and formalities for issuing Certificates confirming compliance with the conditions for processing tobacco raw materials.

Article 10. Rights and Obligations of Business Entities Engaging in Tobacco Raw Material Trading and Processing

In addition to the rights and obligations stipulated by business laws, business entities engaging in tobacco raw material trading and processing shall have the following rights and obligations:

1. Selecting investment areas and tobacco growers according to the Tobacco Raw Material Region Development Plan. Signing investment planting and purchasing contracts for tobacco raw materials with tobacco growers;

2. Enterprises holding certificates of eligibility for tobacco raw material processing may use specialized tobacco machinery suitable for each stage of tobacco raw material processing.

Article 11. Tobacco Raw Material Cultivation and Processing Fund

1. Enterprises investing in tobacco cultivation may allocate a portion of the purchase price of tobacco raw materials to establish a Tobacco Raw Material Cultivation and Processing Fund for the purpose of developing tobacco raw material regions.

2. The establishment and utilization of the Tobacco Raw Material Cultivation and Processing Fund shall be carried out in accordance with regulations issued by the Ministry of Finance.

Article 12. Specialized Management of Imported Tobacco Raw Materials

1. Tobacco raw materials fall under the specialized management of the Ministry of Industry.

2. Enterprises importing tobacco raw materials for domestic production and consumption, export production, and export processing must meet the following conditions:

a) Holding a Certificate of Eligibility for Tobacco Raw Material Processing as prescribed in Article 9 of this Decree or a Production License for tobacco products as prescribed in Article 14 of this Decree;

b) Imported raw materials must be compatible with the enterprise's production capacity and output;

c) Approval from the Ministry of Industry.

3. For imported tobacco leaves within tariff quotas, enterprises must hold an Import Permit issued by the Ministry of Trade.

Chapter III

PRODUCTION OF TOBACCO PRODUCTS

Article 13. Conditions for Producing Tobacco Products

An enterprise is permitted to produce tobacco products when it meets the following conditions:

1. It was producing tobacco products before the issuance of Government Resolution No. 12/2000/NQ-CP dated August 14, 2000 on "National Policy on Preventing and Controlling the Harmful Effects of Tobacco for the Period 2000-2010";

2. Production of tobacco products must align with the Tobacco Industry Strategy and Overall Master Plan that has been approved;

3. The State must maintain a controlling share in the registered capital of the enterprise;

4. Hold a Production License for tobacco products as prescribed in Article 14 of this Decree;

5. Invest in developing tobacco raw material regions and using domestically produced tobacco raw materials according to the Tobacco Raw Material Region Development Plan and the approved Tobacco Industry Strategy and Overall Master Plan;

6. Possess synchronized and advanced equipment ensuring conditions related to occupational safety and health, fire prevention, and environmental sanitation;

7. Ensure hygiene and safety requirements for tobacco products as stipulated by the Ministry of Health, and ensure product quality in accordance with Vietnamese quality standards;

8. Have ownership or lawful use of trademarks for tobacco products in Vietnam.

Article 14. Production License for Tobacco Products

1. Producing tobacco products is a business activity requiring a Production License issued by the Ministry of Industry.

2. The Ministry of Industry will provide detailed guidance on the procedures and formalities for issuing Production Licenses for tobacco products.

3. An enterprise is only entitled to engage in production and business activities from the date it receives the Production License for tobacco products.

Article 15. Production Capacity for Tobacco Products

1. The production capacity of each enterprise and the entire tobacco industry at the time of issuance of Resolution No. 12/2000/NQ-CP dated August 14, 2000 by the Government shall be determined and announced by the Ministry of Industry based on the machinery and equipment available at that time.

2. The production capacity of each enterprise serves as the basis for managing investment in specialized machinery and equipment for tobacco products and the production volume of tobacco products of the enterprise.

Article 16. Production Volume of Tobacco Products

1. The annual production volume of tobacco products of an enterprise shall not exceed the production capacity recorded in the Tobacco Product Manufacturing License.

2. The Ministry of Industry shall stipulate the production volume of domestically and internationally branded tobacco products of enterprises during each period according to the Strategic Orientation and Overall Planning of the Tobacco Industry.

Article 17. Quality Standards for Tobacco Products

1. Tobacco products must comply with Vietnamese quality standards.

2. Enterprises producing tobacco products must adhere to the quality standards for tobacco products.

Article 18. Minimum Selling Price of Tobacco Products

1. The Ministry of Finance shall take the lead and coordinate with the Ministry of Trade and the Ministry of Industry to establish the minimum selling price of tobacco products.

2. Enterprises producing tobacco products shall not sell below the minimum price set by the Ministry of Finance.

Article 19. Brand Name and Labeling of Tobacco Products

1. Tobacco products can only be consumed in Vietnam if they bear a brand name registered and legally protected in Vietnam.

2. Enterprises producing foreign-branded tobacco products for consumption in Vietnam must meet certain requirements.

3. Labeling on tobacco product packaging must comply with current legal regulations. As of April 1, 2008, health warnings about the dangers of smoking must be printed in black letters on a white background, covering 30% of the cigarette pack surface area, with one of the following contents: "Smoking may cause lung cancer"; "Smoking may cause chronic obstructive pulmonary disease." The regulation on printing health warnings on cigarette packs will be implemented in phases in accordance with the Framework Convention on Tobacco Control (FCTC), consistent with global trends and Vietnam's specific conditions.

4. Only enterprises directly producing tobacco products are permitted to print labels or contract with printing facilities to print tobacco product packaging labels.

Article 20. Specialized Management of Cigarette Wrapper Paper

1. Domestic enterprises producing cigarette wrapper paper may only sell their products to enterprises holding a tobacco product manufacturing license or for export.

2. Only enterprises producing tobacco products may purchase cigarette wrapper paper for production in accordance with their permitted production volume and may not resell it to organizations or individuals without a tobacco product manufacturing license.

3. Enterprises importing cigarette wrapper paper must satisfy the following conditions:

a) Holding a tobacco product manufacturing license as stipulated in Article 14 of this Decree;

b) The quantity of imported cigarette wrapper paper must match the permitted production volume of tobacco products of the enterprise;

c) Approval from the Ministry of Industry.

4. Investment in the production of cigarette wrapper paper must align with the Strategic Orientation and Overall Planning of the Tobacco Industry approved.

Article 21. Stamp for Tobacco Products

1. Domestic tobacco products intended for domestic consumption must be affixed with stamps on their packaging in accordance with current State regulations.

2. Tobacco products produced for export, display, or exhibition abroad shall not be affixed with stamps according to Vietnam's regulations.

3. Stamps for tobacco products intended for consumption in Vietnam may only be issued to enterprises holding a production license for tobacco products. The annual quantity of stamps issued to an enterprise shall not exceed the permitted production volume.

4. Imported tobacco products intended for consumption in Vietnam must have import stamps affixed on their packaging.

5. The Ministry of Finance shall print and issue stamps and organize their distribution to enterprises in accordance with the stipulated regulations.

Article 22. Rights and Obligations of Enterprises Producing Tobacco Products

In addition to the rights and obligations prescribed by law, enterprises producing tobacco products also have the following rights and obligations:

1. To sell tobacco products in accordance with the Business Registration Certificate; to organize a wholesale and retail distribution system for the enterprise’s tobacco products in compliance with this Decree.

2. To publicly disclose information about the product and ensure that the enterprise’s tobacco products comply with the hygiene standards for tobacco products as prescribed by law.

3. To be permitted to implement the following forms of promotion:

a) Publishing or broadcasting advertisements for tobacco products and finished strands produced by the enterprise in foreign press media.

b) Broadcasting once on various media channels greetings, introductions of the enterprise's name, address, and logo during holidays and traditional anniversaries of the enterprise annually.

Article 23. Conditions for Investment in Production of Tobacco Products

1. Investment in the production of tobacco products must be consistent with the approved Strategy and Overall Planning for the tobacco industry.

2. New construction, expansion of scale, or enhancement of capacity of production facilities for domestic consumption shall not exceed the total production capacity determined by the Ministry of Industry pursuant to Article 15 of this Decree.

3. Foreign investment projects in the production of tobacco products, including activities under contracts for processing, joint production, and licensing of industrial property rights, must meet the following conditions:

a) Investing on the basis of joint ventures or cooperation with enterprises already holding a production license for tobacco products to update technology and equipment, and transform the product structure towards improving product quality and value.

b) The State must hold a controlling stake in the registered capital of the enterprise.

c) Meeting the conditions specified in Article 13 and having a Production License for Tobacco Products as stipulated in Article 14 of this Decree.

d) Receiving approval from the Prime Minister based on the proposal of the Ministry of Industry.

4. Investment projects for the production of tobacco products for export, export processing, deepening investment, updating equipment and production technology, and relocating production sites according to the planning of tobacco product manufacturing enterprises must be agreed upon by the Ministry of Industry.

Chapter IV

BUSINESS OF TOBACCO PRODUCTS

Article 24. Planning of the Network System for the Business of Tobacco Products

1. The State strictly controls the business of tobacco products through the Planning of the Network System for the Business of Tobacco Products.

2. The Ministry of Trade shall take the lead and coordinate with the Ministry of Industry to develop and approve the Planning of the Network System for the Business of Tobacco Products nationwide.

Article 25. Conditions for operating tobacco products business

1. Conditions for wholesale trade and wholesale agency of tobacco products include:

a) The trader must be a business entity established in accordance with the law and registered to operate purchasing and selling of tobacco products;

b) Having a fixed place of business with a clear address that is consistent with the approved planning of the network system for tobacco products trading;

c) Possessing material facilities and financial capacity appropriate to the scale of business;

d) Must have purchase and sale contracts for tobacco products and a stable distribution system for tobacco products;

đ) Holding a wholesale business license or wholesale agency license for tobacco products as stipulated in Article 26 of this Decree.

2. Conditions for retail trade or retail agency of tobacco products include:

a) The trader must be registered to operate purchasing and selling of tobacco products;

b) Having a fixed place of business with a clear address that is consistent with the approved planning of the network system for tobacco products trading;

c) Belonging to the distribution system of the tobacco product manufacturing enterprise or of the wholesale trader, wholesale agency of tobacco products;

d) Holding a retail business license or retail agency license for tobacco products as stipulated in Article 26 of this Decree.

Article 26. License for operating tobacco products business

1. Operating tobacco products business is a trade requiring a license issued by the Ministry of Trade.

2. The Ministry of Trade shall provide detailed guidance on the procedures, formalities, and authority for issuing wholesale licenses, wholesale agency licenses, or retail licenses, retail agency licenses for tobacco products.

3. A trader may only commence operations from the date they receive the Wholesale Business License, Wholesale Agency License, Retail Business License, or Retail Agency License for tobacco products.

Article 27. Rights and Obligations of Traders Granted a License for Operating Tobacco Products Business

In addition to the rights and obligations prescribed by law, traders granted a License for Operating Tobacco Products Business also have the following rights and obligations:

1. To purchase legally sourced tobacco products.

2. To organize the circulation and consumption of tobacco products in the market according to the License for Operating Tobacco Products Business granted.

3. Only sell wholesale tobacco products to traders holding a License for Operating Tobacco Products Business.

Article 28. Importation of Tobacco Products for Commercial Purposes

1. Importation of tobacco products for commercial purposes must comply with the following principles:

a) Implement state trading in the importation of tobacco products;

b) Imported tobacco products must be affixed with tobacco import stamps issued by the Ministry of Finance;

c) Imported tobacco products must comply with management requirements stipulated in this Decree and relevant laws as applicable to domestically produced tobacco products.

2. The Ministry of Trade shall take the lead and coordinate with the Ministry of Industry to provide detailed guidance on the state trading management mechanism for imported tobacco products.

Article 29. Importation of Tobacco Products for Non-Commercial Purposes

1. Individuals entering Vietnam must not carry more than the permissible standard allowance of tobacco products as specified by the Government.

2. Diplomatic missions, consular offices, international organizations in Vietnam, if necessary, may be permitted to import tobacco products for use in accordance with Vietnamese laws.

3. The Ministry of Trade shall take the lead and coordinate with the Ministry of Industry to provide conditions, procedures, and standards for importing tobacco products for production samples and other non-commercial activities.

Article 30. Prevention and Control of Smuggling and Commercial Fraud

1. All smuggled cigarettes and counterfeit cigarettes shall be confiscated for destruction.

2. Enterprises producing and trading in cigarettes have the obligation to cooperate with state agencies authorized to prevent smuggling of cigarette products and trading in counterfeit cigarettes.

Chapter V

SPECIALIZED MACHINERY AND EQUIPMENT FOR TOBACCO

Article 31. Management of Machinery and Equipment Specialized for Tobacco Production

1. Organizations and individuals without a Permit to produce tobacco products may not use machinery and equipment specialized for tobacco under any form, except in cases where they use machinery and equipment of enterprises processing tobacco raw materials as stipulated in Clause 2, Article 10 of this Decree.

2. The transfer, export, re-export, and liquidation of machinery and equipment specialized for tobacco production by enterprises producing tobacco products shall be carried out in accordance with relevant laws and must comply with the following provisions:

a) Enterprises may only sell machinery and equipment that still have usable value to enterprises holding a Permit to produce cigarettes.

b) Machinery and equipment that no longer have usable value or are liquidated due to deep investment must be destroyed under the supervision of the Liquidation Committee established by the Ministry of Industry.

3. The Ministry of Industry shall take the lead and coordinate with related functional agencies to organize inspections, detect, and handle machinery and equipment for tobacco without legitimate sources or not destroyed according to regulations.

Article 32. Import of Machinery and Equipment Specialized for Tobacco

1. Enterprises importing machinery and equipment specialized for tobacco must meet the following conditions:

a) Holding a tobacco product manufacturing license as stipulated in Article 14 of this Decree;

b) Imported machinery and equipment specialized for tobacco must be compatible with the production capacity of the enterprise;

c) Approval from the Ministry of Industry.

2. Enterprises holding a certificate of eligibility to process tobacco raw materials as stipulated in Article 9 of this Decree and meeting the conditions specified in point b and point c of Clause 1 of this Article are only permitted to import machinery and equipment serving the processing of tobacco raw materials.

Chapter VI

STATE MANAGEMENT RESPONSIBILITIES

Article 33. Responsibilities of the Ministry of Industry

1. Submit to the Government,

2. Develop Strategies and Comprehensive Planning for the Vietnamese Tobacco Industry to submit for approval.

3. Take the lead and coordinate with relevant ministries, sectors, and localities to develop proposals for organizing the restructuring of the tobacco industry; manage the establishment, division, separation, merger, and dissolution of enterprises producing tobacco products, processing tobacco raw materials, and auxiliary materials according to the relevant laws and this Decree.

4. Implement state management responsibilities for the tobacco industry in investment and construction according to the relevant laws and this Decree.

5. Issue and inspect industry standards for tobacco and product quality for cigarettes.

6. Organize specialized management, manage the import of machinery and equipment for tobacco production, tobacco raw materials, cigarette wrapping paper, and imported tobacco products.

7. Specify authority, procedures for issuing, adjusting, extending, and revoking certificates of eligibility to trade in tobacco raw materials, process tobacco raw materials, and Permits to produce tobacco products.

8. Specify production capacity for tobacco products and production volume for tobacco products of enterprises producing tobacco products.

9. Submit for approval

10. Coordinate with the Ministry of Trade to guide the state commercial management mechanism in the import of tobacco products.

11. Take the lead and coordinate with related functional agencies to organize inspections, detect, and handle machinery and equipment for tobacco without legitimate sources or not destroyed according to regulations.

12. Conduct inspections, resolve complaints and accusations, and handle violations in the production and trading of tobacco.

Article 34. Responsibilities of the Ministry of Trade

1. Draft and submit to the Government,

2. Lead and coordinate with the Ministry of Construction Industry to approve and announce the planning of the network system for tobacco product business nationwide.

3. Provide specific guidance on the authority, procedures for issuing, adjusting, extending, and revoking licenses for tobacco product business.

4. Lead and coordinate with the Ministry of Industry to provide specific guidance on the state management mechanism for imported tobacco products.

5. Coordinate with relevant state agencies to organize inspections and handle organizations and individuals violating this Decree in their tobacco product business.

6. Coordinate with the Ministry of Industry to manage the import of tobacco leaf raw materials under tariff quotas.

Article 35. Responsibilities of the Ministry of Finance

1. Organize printing, issuance, and distribution of stamps to enterprises according to this Decree and current regulations.

2. Lead and coordinate with the Ministry of Trade and the Ministry of Industry to set minimum selling prices for tobacco products.

3. Guide the establishment and use of the Tobacco Raw Material Cultivation and Processing Fund.

Article 36. Responsibilities of the Ministry of Health

1. Draft and submit to the Government,

2. Inspect and supervise the implementation of food safety and hygiene regulations, and measures to prevent the harmful effects of tobacco.

Article 37. Responsibilities of Ministries, Agencies Equivalent to Ministries, and Government Agencies

Within their respective authorities, Ministries, agencies equivalent to ministries, and government agencies have the responsibility to coordinate with the Ministry of Industry, the Ministry of Trade, and the Ministry of Finance to implement state management over tobacco business activities.

Article 38. Responsibilities of People's Committees of provinces and centrally governed cities

1. Carry out state management functions in the tobacco industry and resolve issues within their jurisdictional areas.

2. Participate in coordinating with the Ministry of Industry to implement policies for restructuring tobacco enterprises within their jurisdictional areas.

3. Inspect the production, consumption of tobacco raw materials, and circulation of tobacco products within their jurisdictional areas.

Chapter VII

VIOLATIONS AND PENALTIES FOR VIOLATIONS

Article 39. Violations of Legal Provisions on Tobacco Production and Business

1. Producing and trading tobacco without a License.

2. Producing and trading smuggled tobacco products, counterfeit tobacco products, tobacco products bearing unregistered trademarks in Vietnam, failing to meet Vietnamese quality standards, being substandard or expired, having incorrect labeling, or not affixing stamps as required by law.

3. Using, disposing of, importing, exporting, re-exporting, or transferring specialized tobacco machinery and equipment not in accordance with this Decree and other laws.

4. Producing tobacco products exceeding permitted production quantities.

5. Failing to comply with legal provisions on food safety and hygiene for tobacco products and measures to prevent the harmful effects of tobacco.

6. Buying and selling, transferring tobacco product stamps.

7. Illegally buying and selling cigarette wrapping machines.

8. Trading tobacco without a valid tobacco business license issued by competent state trade management authorities.

9. Selling tobacco to persons under 18 years old.

10. Selling tobacco in public offices, schools, hospitals, cinemas, cultural performance venues, sports arenas, on sidewalks, and other public places as regulated by law.

11. Advertising and promoting tobacco products in any form.

12. Sponsoring cultural, artistic, and sporting events or other activities associated with tobacco advertising.

13. Selling tobacco through vending machines, online, or via telephone.

14. Other violations as prescribed by law.

Article 40. Handling of violations

Organizations and individuals who commit acts violating the laws on the production and business of tobacco products shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and extent of the violation, and in cases causing damage, they must compensate according to the provisions of the law.

Chapter VIII

IMPLEMENTING PROVISIONS

Article 41. Effective Date

1. This Decree takes effect fifteen days from the date of publication in the Official Gazette and replaces Government Decree No. 76/2001/NĐ-CP dated October 22, 2001, on activities related to the production and business of tobacco.

2. Organizations and individuals legally engaged in the production and business of tobacco prior to the effective date of this Decree may continue their operations and be considered for issuance of Licenses or Certificates of Eligibility for Production and Business in accordance with the provisions of this Decree.

Article 42. Implementation organization and responsibility for enforcement

1. The Ministry of Industry shall coordinate with relevant ministries and sectors to guide the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree./.