Directive No. 13-TTg On Strengthening Guidance to Implement the Policy Prohibiting the Import and Circulation of Foreign Cigarettes in the Domestic Market

DIRECTIVE

ON STRENGTHENING THE GUIDANCE IN IMPLEMENTING THE POLICY OF PROHIBITING IMPORT AND CIRCULATION OF FOREIGN TOBACCO PRODUCTS IN THE DOMESTIC MARKET

Smuggling and illegal trading of foreign tobacco products have shifted from being covert to becoming overt and brazenly challenging state management mechanisms, causing adverse economic and social consequences. Generally, relevant sectors and localities have relaxed their management and been lax in organizing the implementation of the policy prohibiting the import and circulation of foreign tobacco products in the domestic market.

This is a serious shortcoming that all sectors and levels must strictly review and promptly rectify their forces, applying resolute measures to quickly address the situation. In the immediate term, efforts should be concentrated on guiding the resolution of several urgent issues as follows:

1. The Ministry of Light Industry shall guide and coordinate with the People's Committees of provinces and cities to direct the Vietnam Tobacco Corporation and local tobacco factories to improve organizational and production management, significantly reduce imported raw materials and auxiliary materials (including packaging), create conditions for reducing costs. Recalculate the special consumption tax on domestically produced tobacco products, and if necessary, propose specific adjustments to the Ministry of Finance for submission to the Government. On this basis, lower the retail prices of certain types of tobacco products.

2. The Ministry of Trade shall carefully examine the issuance of permits for importing raw and auxiliary materials (including packaging) for tobacco products in accordance with the above spirit and coordinate with the Ministry of Light Industry to rationalize the organization of tobacco product circulation.

The Ministry of Trade is responsible for state management of the market in general and the tobacco market in particular. Currently, tobacco manufacturing enterprises are self-organizing the majority of tobacco product distribution, so the Ministry of Light Industry must primarily ensure the stability of the national tobacco market and prices, including at each region. Wholesalers and retailers of tobacco products, including regional general agents, must comply strictly with the agency regulations issued by the Ministry of Trade and implement the permit and registration system for business operations. Any business entity using an agent must bear joint responsibility for any illegal activities conducted by the agent they employ. All speculative behavior, price hikes, and trading of foreign tobacco products by any entity will be severely punished according to the law.

3. The Ministry of Health needs to closely cooperate with the Ministries of Education and Training, Culture and Information, National Defense, Interior Affairs, and mass organizations to launch campaigns to reduce and refrain from smoking, particularly among young people, students, and military personnel. Smoking is prohibited in hospital rooms, classrooms, meeting rooms; theaters, cinemas; on airplanes, trains, and buses carrying passengers, and in crowded places. State agencies may not use tobacco products for entertaining guests or as gifts. Advertising tobacco products on mass media is forbidden, and existing advertisements must be removed immediately.

4. At all levels, People's Committees and competent ministries must regularly direct the crackdown on smuggled tobacco products, both at border areas and within the country; investigate and apprehend smuggling rings, especially the ringleaders, while coordinating with mass organizations to explain and mobilize the public not to assist smugglers.

The Ministry of Transport, the Ministry of National Defense, the General Post and Telecommunications Corporation, and other relevant sectors need to strengthen the management of transportation forces within their sectors to prevent smugglers from using state-owned means of transport to carry foreign tobacco products.

Foreign countries are not allowed to transit through Vietnam for the import of tobacco products. If Laos and Cambodia units borrow sections of roads to transport tobacco products (if any), such actions must be approved by the Government. Customs and competent authorities must strictly supervise and enforce regulations to ensure that foreign tobacco products do not enter Vietnam.

Retail stores under any economic component and managed by any sector or level must not sell foreign tobacco products. Violating entities and individuals will be dealt with according to the law.

For smuggled foreign tobacco products currently circulating in the domestic market, they must be confiscated according to the law; fines followed by sale are not permitted, nor can they be used arbitrarily. Seized foreign tobacco products in each locality must be centralized at the provincial or municipal level. Provincial or municipal People's Committees shall entrust a provincial-level organization to manage and strictly control the destruction, recycling, or re-exportation of these products. Recycling and re-exportation plans must guarantee that foreign tobacco products do not re-enter the market and must be approved by the provincial or municipal People's Committee before implementation. All proceeds from recycling or re-exportation shall be deposited into the anti-smuggling fund of the province or city after covering expenses and rewarding those who contributed to the crackdown. The Ministry of Finance and the Ministry of Trade shall provide detailed guidance on handling seized tobacco products. Monthly reports on confiscation and handling results shall be submitted by provincial or municipal People's Committees to the Ministry of Finance.

5. The handling of violations of the law in implementing the policy of prohibiting the import and circulation of foreign tobacco products in the domestic market, from Directive No. 278-CT dated August 3, 1990, of the Chairman of the Council of Ministers to subsequent documents, must be strict against all organizations and individuals, including foreigners.

Border inspection stations need to continuously inform and explain the policy to the public on both sides of the border for a period of time; if people from the other side bring tobacco products into Vietnam, the border station temporarily holds the tobacco products, returning them when they return. One month after the issuance of this directive, if they still bring tobacco products into Vietnam, they will be confiscated. For those escorting smugglers with weapons and causing disturbances on our territory, they must be dealt with resolutely. Provincial People's Committees bordering Cambodia and Laos should proactively discuss with the local authorities on the other side to prevent clashes and reasonably resolve emerging issues between the two borders.

Upon receipt of this Directive, relevant sectors and grassroots units must promptly and strictly implement it./.