Circular No. 160/2013/TT-BTC guiding the printing, issuance, management, and use of stamps for imported alcohol products and domestically produced alcohol intended for domestic consumption.

CIRCULAR

Guidelines for printing,issuing, managing and using stamps on imported alcohol products

and domestically produced alcohol intended for domestic consumption

Pursuant to Decree No. 94/2012/NĐ-CP dated November 12, 2012 of the Government on production and business of alcohol;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the Tax Administration, the Director General of the Customs Department,

The Minister of Finance issues this Circular guiding the implementation of Decree No. 94/2012/NĐ-CP on printing, issuing, managing and using stamps on imported alcohol products and domestically produced alcohol intended for domestic consumption as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the printing, issuance, management, and use of stamps for imported alcohol products and domestically produced alcohol intended for domestic consumption (hereinafter referred to as alcohol stamps).

Alcohol stamps for imported products and domestically produced alcohol intended for domestic consumption may only be sold to organizations and individuals holding a Production License for Alcohol and a Distribution License for Alcohol Products.

Article 2. Applicability

1. Domestic alcohol products intended for domestic consumption and circulation on the market from January 1, 2014, and imported alcohol products intended for domestic consumption must have stamps affixed to their packaging.

2. Cases where stamps do not need to be affixed to packaging

- Handcrafted alcohol produced for sale to enterprises with a Production License for Alcohol to further process alcohol;

- Alcohol products produced for export, display, or exhibition abroad;

- Imported alcohol within the tax-free allowance for personal luggage as provided for in the Law on Export Duties and Import Duties and related implementing regulations.

Chapter II

SPECIFIC PROVISIONS

Article 3. Stamp Design and Affixing Regulations

1. Principles

Imported alcohol and domestically produced alcohol must be bottled (including jars, bottles, flasks, cans, bags, boxes, crates), hereinafter collectively referred to as bottles. Each bottle shall bear one (01) stamp. In cases where the bottle uses a transparent film cover, the stamp must be affixed to the bottle or jar before being covered with the transparent film.

2. Stamp Design

The design of the stamp for imported alcohol is presented in Appendix 1 attached hereto. The design of the stamp for domestically produced alcohol is presented in Appendix 2 attached hereto.

3. Position of Stamp Affixing

Alcohol stamps must be affixed diagonally across the area where the alcohol can be removed from the packaging (bottle cap, jar lid, bottle stopper, spout...) ensuring that when the bottle cap is opened, the stamp will tear and cannot be reused.

4. Entities responsible for affixing stamps

For imported bottled alcohol through customs checkpoints: enterprises must affix imported alcohol stamps at the place where goods are inspected under the supervision of customs officials.

For imported alcohol bottled domestically: enterprises must affix imported alcohol stamps at the bottling facility before releasing the product to the market for consumption and bear full responsibility for doing so.

For domestically produced alcohol: organizations and individuals holding a Production License for Alcohol (including a Production License for Handcrafted Alcohol for Business Purposes and a Production License for Industrial Alcohol) intended for domestic consumption, hereinafter collectively referred to as organizations and individuals producing domestically produced alcohol, must affix stamps in accordance with regulations to domestically produced alcohol products at the production site after bottling and before releasing the alcohol products for domestic consumption.

Article 4. Principles of stamp management

Imported alcohol stamps and domestically produced alcohol stamps are uniformly prescribed by the Ministry of Finance in Appendices 1 and 2 of this Circular.

The General Department of Customs shall be responsible for printing and issuing stamps for imported alcohol.

The General Department of Taxation shall be responsible for printing and issuing stamps for domestically produced alcohol.

Printing, issuing, managing, and using alcohol stamps shall be carried out in accordance with current regulations on the management and use of tax seals.

Article 5. Management of imported alcohol stamps

1. Announcement of issuance of alcohol stamps

The Customs General Department shall notify the issuance of imported alcohol stamps to the Customs Departments of provinces and centrally-administered cities prior to selling them. In cases where the design, size, or content of the currently used stamp changes, the Customs General Department must issue a new notification to replace the old one. The content of the notification must include the form, content, size, and characteristics of each stamp design.

Notifications of the issuance of imported alcohol stamps must be publicly posted on the Customs General Department's website within fifteen (15) working days from the date the new imported alcohol stamp design is issued.

2. Issuing imported alcohol stamps

The Customs General Department is responsible for issuing imported alcohol stamps to provincial and centrally-administered city Customs Departments based on the needs of registered units on an annual basis.

Based on the quantity declared by the declarant, the customs authority handling the import procedures is responsible for selling stamps to the importing enterprise and recording the quantity and serial number of the stamps actually used on the import declaration form.

In cases where enterprises import alcohol for bottling domestically, they must register at the customs authority where the import declaration is made at the beginning of the year regarding the quantity of alcohol imported and the corresponding number of bottles expected to be bottled in the year to allow the customs authority to estimate the quantity of stamps to sell.

For confiscated alcohol products that are subsequently permitted for use on the market by authorized authorities, the confiscating authority must inform the customs authority of the quantity of confiscated goods to obtain stamps before releasing them for domestic consumption.

3. Procedures for selling imported alcohol stamps

Organizations and enterprises importing alcohol must present the following documents when purchasing stamps:

- Customs declaration form; or Decision on Sale of Confiscated Goods or Auction Sale by the competent authority and Inspection Report on Quality of Seized Illicitly Imported Alcohol (in case of confiscated alcohol);

- Application for Purchase of Imported Alcohol Stamps (Form No. 01, Appendix 4 attached hereto);

- Letter of Introduction;

- Identity card or equivalent identification document.

4. Handling in cases of loss or damage to imported alcohol stamps

Units using and managing stamps that discover lost imported alcohol stamps must submit a report to the superior authority about the loss of stamps (according to Form No. 03, Appendix 3 attached hereto) no later than five (05) working days from the date of discovery of the loss. The head of the unit must clarify the cause, determine individual responsibility for handling according to regulations, and simultaneously inform relevant authorities to prevent the misuse of lost stamps in a timely manner.

During the process of affixing import wine labels, in cases where there is a shortage of labels, excess labels remaining after affixation is completed, or damaged labels (tear, damage, etc.), the organization or enterprise implementing the import must be responsible for preparing a detailed list of the number of missing, excess, or damaged labels and returning the excess or damaged labels to the customs officer supervising and inspecting the goods.

The customs unit selling the labels is responsible for refunding the purchase price of the labels to the organization or enterprise that affixes the labels in cases where there are excess labels or exchanging an equivalent quantity of labels in cases where the labels are damaged or missing without the responsibility of the organization or enterprise affixing the labels (damaged or missing labels not within the responsibility of the organization or enterprise affixing the labels include cases where the labels skip numbers or are printed incorrectly due to manufacturer errors).

Organizations implementing label affixation (in cases where imported wine is confiscated) if they discover lost labels must prepare a report on the loss of labels and send it to the customs authority issuing the labels (according to Form No. 03, Appendix 3 issued together with this Circular) no later than five (05) working days from the date of discovery of the label loss.

5. Reporting and final settlement of the situation regarding the use of import wine labels

For enterprises affixing labels under the supervision of customs authorities: Import enterprises must prepare a Report on the Situation of Using Import Wine Labels immediately after completing the import process (Form No. 02, Appendix 4 issued together with this Circular) and submit it to the customs officer supervising before the goods are cleared.

For organizations and enterprises purchasing labels and bearing full responsibility for affixing import wine labels: Within ten (10) working days from the end of the labeling process for confiscated or imported goods, the organization or enterprise implementing the affixation must prepare a detailed settlement list of the serial numbers of the used wine labels and submit a report to the customs authority issuing the labels for management purposes.

Customs officers responsible for selling labels and supervising the affixation process must settle the import wine labels with the issuing unit no later than two (02) working days from the date of clearance of the goods. The enterprise's report on the situation of using import wine labels serves as the basis for settling the usage of labels.

Customs authorities at all levels using import wine labels must maintain detailed records of the beginning period stock of labels, the number of labels received, the number sold to import enterprises, losses and damages during the period, and the ending period stock, and must report quarterly, semi-annually, and annually on the situation of using labels to their superior customs authority according to regulations.

Article 6. Management of domestically produced alcohol stamps

1. Announcement of issuance of alcohol stamps

The General Department of Taxation shall notify the issuance of domestic wine labels in writing to provincial tax offices directly under the central government before selling the labels. In cases where the current label design changes in size, content, or form, the General Department of Taxation must issue a new notification to replace the old notification.

The content of the issuance notification must reflect: the format, content, size, and characteristics of each label sample.

The issuance notification of domestic wine labels must be publicly posted on the electronic information website of the General Department of Taxation within fifteen (15) working days from the effective date of the issuance notification of domestic wine labels.

2. Registration of the quantity and type of labels expected to be used

Based on the annual production plan, domestic wine-producing organizations and individuals must submit plans for the quantity of labels needed to the directly managing tax authority no later than November 30 of the year preceding the planned year (the quantity of labels must be detailed by each type of label according to Form No. 04, Appendix 3 issued together with this Circular).

Example: Based on the 2015 wine production plan, domestic wine-producing entity A submitted a plan to purchase 10,000,000 wine labels for 2015 to the directly managing tax authority no later than November 30, 2014.

Domestic wine-producing organizations and individuals who do not register a plan for using wine labels are considered to have no need to purchase labels.

In cases where there are changes in wine production during the year, resulting in changes in the demand for label purchases, organizations and individuals producing wine must register adjustments to the additional quantity of labels needed for the planned year (according to Form No. 05, Appendix 3 issued together with this Circular). Organizations and individuals producing wine must submit registration for adjustments to the additional quantity of labels needed for the planned year to the directly managing tax authority at least ten (10) working days before requesting to purchase the labels.

Example: Domestic wine-producing entity A had already submitted a plan to purchase 10,000,000 wine labels for 2015, but by the end of the first quarter of 2015, entity A saw a change in the demand for wine labels for 2015 to 10,500,000 wine labels, so entity A must submit a registration for adjustment of the quantity of labels needed for 2015 to the tax authority at least ten (10) working days before requesting to purchase the labels.

In cases where the planned year ends and the enterprise has not used up the purchased quantity of labels, the remaining quantity of labels can continue to be used in the following year.

3. Selling wine labels

The General Department of Taxation is responsible for providing domestic wine labels to provincial tax offices directly under the central government. Provincial tax offices, district tax offices are responsible for organizing the sale of domestic wine labels to organizations and individuals holding a Production License for Wine (including Handicraft Wine Production Licenses for Business Purposes and Industrial Wine Production Licenses) to allow organizations and individuals to affix domestic wine labels according to regulations.

Based on the purchase plan and supplementary purchase plan for the planned year, when applying to the directly managing tax authority for label issuance, organizations and individuals must provide the following documents:

- Application for Purchase of Domestic Wine Labels (Form No. 01, Appendix 3 issued together with this Circular);

- Certified copy of the Wine Production License issued by the competent authority according to regulations (when receiving labels for the first time);

- Company introduction letter;

- Valid identification card of the person directly purchasing the labels according to the regulations on identification cards.

4. Reporting on the situation of using wine labels

Quarterly, organizations and individuals producing wine for domestic consumption using labels must establish and submit to the directly managing Tax Authority (in accordance with Form No. 06, Appendix 3 issued together with this Circular); the deadline for submitting the report to the Tax Authority shall not be later than the 30th day of the first month following the quarter.

5. Handling of wine labels for organizations and individuals producing wine that cease production, dissolve, or go bankrupt; division, separation, or merger

Organizations and individuals producing wine within the country when ceasing production, dissolving, or going bankrupt must settle the label accounts and destroy the remaining unused labels within five (05) working days from the date the organization or individual announces the cessation of production or the date of the Dissolution or Bankruptcy Decision.

In cases of mergers: The Tax Authority shall transfer the remaining labels of the merging organizations or individuals to the name and tax code of the post-merger organization or individual.

In cases of division or separation: The Tax Authority shall transfer the remaining labels at the time of division or separation to the name and tax code of the post-division or post-separation organization or individual upon request of the dividing or separating organization or individual. Strictly prohibited are the transfer, sale (except by the Tax Authority), lending, or borrowing of wine labels between organizations or individuals.

6. Handling in case of loss or damage to wine labels

Organizations and individuals producing wine for domestic consumption discovering lost labels must establish a Report on the Loss of Labels and submit it to the directly managing Tax Authority (in accordance with Form No. 03, Appendix 3 issued together with this Circular) no later than five (05) working days from the date of discovery of the loss.

Organizations and individuals producing wine for domestic consumption having damaged labels (torn, defective...), or unused labels must have a detailed list attached to their written application for cancellation submitted to the directly managing Tax Authority; the Ministry of Finance authorizes the Director of the General Tax Department to approve the cancellation with a written consent. The unit is responsible for the legality regarding the canceled labels.

The label cancellation file includes:

- Written approval for cancellation from the General Tax Department;

- Decision establishing the Label Cancellation Committee (for organizations);

- Notification of the results of label cancellation.

The cancellation file is kept by the organization or individual carrying out the label cancellation. The notification of the cancellation results (Form No. 02, Appendix 3 issued together with this Circular) must be submitted to the directly managing Tax Authority no later than five (05) working days from the date of cancellation.

Chapter III

RESPONSIBILITY FOR INSPECTION AND VIOLATION HANDLING

Article 7. Inspection Responsibility

Within the scope of their authority, duties, and responsibilities, competent agencies shall strictly inspect and supervise to detect and handle violations related to affixing labels on wine products according to the provisions of this Circular.

Article 8. Handling Violations

Imported wine and domestically produced wine required to be labeled but not labeled; or labeled incorrectly, or with counterfeit labels are considered contraband goods and will be handled according to the regulations on smuggling, fake, and imitation goods.

Enterprises importing wine, organizations, and individuals producing wine domestically who fail to affix labels on imported and domestically produced wine products are in violation and will be subject to handling under Article 23 of Government Decree No. 94/2012/NĐ-CP dated November 12, 2012, on the production and business of wine.

Enterprises importing wine, organizations, and individuals producing wine domestically who fail to comply with the regulations on reporting, canceling, and settling label accounts with the Tax Authority and Customs Authority will be penalized according to the level specified in Article 40 of Government Decree No. 109/2013/NĐ-CP dated September 24, 2013, on administrative penalties for violations in price, fee, and invoice management.

Domestic organizations and individuals engaging in illegal trade or storage of unlabeled or counterfeit-labeled wine products will be subject to administrative penalties in the field of commerce.

Chapter IV

IMPLEMENTATION

Article 9. On the budget for printing stamps

Customs authorities shall sell import alcohol stamps to enterprises importing alcohol when they come to handle customs procedures. Tax authorities shall sell domestically produced alcohol stamps to organizations and individuals holding Production Licenses for Alcohol (including Handicraft Production Licenses for Business Purposes and Industrial Production Licenses for Alcohol).

Revenue from the sale of stamps must ensure compensation for costs including printing fees and stamp issuance fees as prescribed.

Article 10. Stamping products of domestically produced alcohol remaining in circulation until December 15, 2013

Organizations and individuals trading in alcohol products must inventory and prepare an inventory list of alcohol products remaining as of December 15, 2013 (in accordance with Model No. 7, Appendix 3 attached hereto).

The inventory list for alcohol products remaining as of December 15, 2013 must be inspected and confirmed by the Market Management Authority and submitted to the direct managing Tax Authority from December 1, 2013, and no later than December 15, 2013.

The direct managing Tax Authority shall base its sale of stamps to organizations and individuals for self-stamping on the inventory list of alcohol products remaining as of December 15, 2013, which has been confirmed by the corresponding level Market Management Authority.

Article 11. Provisions on the effective date of implementation

1. This Circular takes effect from January 1, 2014.

2. Abolish the guidance contents issued by the Ministry of Finance prior to the effective date of this Circular that are inconsistent with the guidance provided herein.

3. In the course of implementation, if there are any difficulties, it is requested that ministries, sectors, localities, organizations, and individuals promptly report them to the Ministry of Finance for consideration and issuance of supplementary guidance for appropriate modification and supplementation./.