Joint Circular No. 133/1999/TTLT/BTC-BTM-BCN on affixing tax stamps to domestically produced cigarettes

JOINT CIRCULAR

STAMPING DOMESTIC TOBACCO PRODUCTS

Pursuant to the Commercial Law;

Pursuant to Decree No. 01/CP dated January 3, 1996 of the Government on administrative penalties for violations in the field of trade and Decree No. 12/1999/NĐ-CP dated March 6, 1999 of the Government on administrative penalties for violations in the field of intellectual property rights;

Pursuant to Directive No. 13/1999/CT-TTg dated May 12, 1999 of the Prime Minister on rectifying and organizing production and business activities in the tobacco industry;

Pursuant to Decision No. 175/1999/QĐ-TTg dated August 25, 1999 of the Prime Minister on stamping domestic tobacco products;

To prevent the production and consumption of counterfeit and imitative tobacco products, ensure consumer health, and prevent loss of special consumption tax revenue;

The Ministry of Finance, Trade, and Industry hereby issues the following guidance:

I. OBJECTS FOR STAMPING

1. As of April 1, 2000, all domestically produced tobacco packages meeting the criteria for trademark registration certificates issued by the Ministry of Science, Technology, and Environment and quality registration certificates issued by the Ministry of Health must be stamped according to regulations before being circulated in the market, including those intended for export and sale at duty-free shops.

2. For tobacco packages produced before March 31, 2000 that have not been stamped and remain in commercial and service establishments, they may continue to be sold until June 30, 2000.

For tobacco packages remaining in tobacco manufacturing enterprises that have not been stamped, these enterprises must organize stamping prior to circulation.

3. Stamping must be completed before tobacco packages leave the factory.

II. TOBACCO STAMPS AND STAMPING

1. Tobacco stamps are uniformly issued and sold to enterprises by the Ministry of Finance. The General Department of Taxation is responsible for printing and selling stamps in full and in a timely manner to tobacco manufacturing enterprises.

The quantity of stamps sold to enterprises serves as a basis for calculating special consumption taxes.

Stamp prices are set by the Ministry of Finance after consultation and agreement with the Ministry of Industry.

Tobacco factories purchase stamps from the Tax Bureau of the province or centrally-administered city where the factory is registered for tax payment, subject to supervision and management of stamp usage by the Tax Bureau.

2. Stamp Management: Tobacco stamps are managed and utilized according to Decision No. 529/TC/TCT dated December 22, 1992 on the system of seal management and Decision No. 137/1999/QĐ/BTC dated November 10, 1999 of the Ministry of Finance on issuing stamps and printing, managing, and utilizing domestic tobacco product stamps.

Any cases of printing, issuing, or consuming stamps not in accordance with the regulations of the Ministry of Finance will be handled according to the law.

3. Position of Stamps

- For soft tobacco packages: Stamped in the middle of the top of the package, diagonally across both front and back faces of the package.

- For hard tobacco packages: Stamped diagonally from the upper right side of the back face to the opening edge of the package.

III. PENALTIES AND REWARDS FOR VIOLATIONS

1. Violation handling:

1. As of April 1, 2000, all domestically produced tobacco packages sold by enterprises must be stamped; failure to do so will result in administrative penalties and confiscation of goods, and in addition, depending on the severity of the violation, temporary suspension of business operations or revocation of business licenses may occur.

For trading and service enterprises (including individual households) still holding unstamped tobacco packages, they may sell them until June 30, 2000. As of July 1, 2000, all domestically produced tobacco packages circulating in the market (including those in storage, on display, or in transit) without stamps will be confiscated. In addition, depending on the severity of the violation, temporary suspension of business operations or revocation of business licenses may occur. Serious cases will be prosecuted criminally.

Individuals and organizations purchasing domestically produced tobacco for personal use without stamps will have all unstamped tobacco confiscated. If they collude with trading or service entities to sell unstamped tobacco packages or purchase large quantities of unstamped tobacco packages, they will be prosecuted criminally.

2. Reward:

Individuals and organizations contributing to the discovery or assistance in the detection and seizure of unstamped domestically produced tobacco packages, as well as those involved in counterfeiting stamps or other violations, will be rewarded according to current regulations.

IV. IMPLEMENTATION

1. The Ministry of Finance is responsible for issuing and printing sufficient stamps to sell to tobacco manufacturing enterprises, supervising the management and use of stamps in accordance with current regulations, and collecting special consumption taxes on tobacco products in accordance with policy.

2. The Ministry of Industry is responsible for inspecting and directing tobacco manufacturing enterprises to comply with stamping regulations, and directing the reorganization of tobacco manufacturing enterprises in accordance with Directive No. 13/1999/CT-TTg dated May 12, 1999 of the Prime Minister.

3. The Ministry of Trade is responsible for directing market management agencies to organize inspections, detect, and strictly handle violations of stamping regulations for domestically produced tobacco packages.

4. Tobacco manufacturing enterprises are responsible for implementing stamping as stipulated in this Circular, purchasing and installing appropriate stamping equipment according to the stamping positions specified in the Circular and the specifications of the issued, managed, and used stamps.

5. Provincial People's Committees direct relevant departments to inspect, detect, and strictly handle violations of stamping regulations for domestically produced tobacco packages.

6. During implementation, if there are difficulties, they should be promptly reported to the Ministry of Finance, Ministry of Trade, and Ministry of Industry for research and resolution.