Circular No. 60/2014/TT-BCT detailing certain provisions of Government Decree No. 94/2012/NĐ-CP dated November 12, 2012 on production and business of alcohol

CIRCULAR

Regulations detailing certain provisions of Decree No. 94/2012/NĐ-CP dated November 12, 2012, of the Government on the production and business of alcohol

On the proposal of the Director of the Light Industry Department,

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Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

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

The Minister of Industry and Trade promulgates this Circular to detail certain provisions of Decree No. 94/2012/NĐ-CP dated November 12, 2012, of the Government on the production and business of alcohol.

1. This Circular stipulates the procedures for issuing, reissuing, amending, supplementing, and revoking the Industrial Alcohol Production License, the Handicraft Alcohol Production License for Business Purposes, the Confirmation Certificate for Registering Handicraft Alcohol Production for Sale to Businesses with an Alcohol Production License for Further Processing, the Distribution Product Alcohol Business License, the Wholesale Product Alcohol Business License, and the Retail Product Alcohol Business License as prescribed in Decree No. 94/2012/NĐ-CP dated November 12, 2012, of the Government on the production and business of alcohol.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

2. This Circular does not apply to the sale of alcohol for immediate consumption (retail service of beverages consumed on-site).

This Circular applies to domestic and foreign organizations and individuals participating in activities related to the production and business of alcohol and other activities associated with the production and business of alcohol within the territory of Vietnam.

Article 2. Applicability

1. "Copies" as defined in this Circular shall be presented in one of the following forms appropriate to each method:

Article 3. Explanation of Terms

a) Certified copies in accordance with regulations (for submission via postal service/administrative correspondence);

b) Photographs accompanied by original documents for comparison (for direct submission);

c) Scans from original documents (if electronic submission of administrative procedures is applied).

2. A new license will be issued in cases of reissue due to damage, fire, loss; reissue after expiration following revocation; or reissue upon expiration of the current license.

Article 4. Alcohol Standards

Alcohol products must comply with current Vietnamese standards (QCVN 6-3: 2010/BYT issued together with Circular No. 45/2010/TT-BYT dated December 22, 2010, of the Ministry of Health and any subsequent amendments, supplements, or replacements).

ALCOHOL PRODUCTION

Chapter II

Article 5. Application Documents for Issuance of Industrial Alcohol Production License

An enterprise applying for an Industrial Alcohol Production License shall prepare two sets of application documents for the issuance of the Industrial Alcohol Production License, one set to be submitted to the competent authority and one set to be retained by the enterprise. The application documents for the issuance of the Industrial Alcohol Production License include:

1. Application form for the issuance of the Industrial Alcohol Production License (as per Appendix 1 attached to this Circular).

2. Copies of the Investment Registration Certificate or Enterprise Registration Certificate or Business Registration Certificate and Tax Registration Certificate.

3. Copies of the Notification of Acceptance of Compliance Declaration and Food Safety Assurance Certificate.

4. List of product names of alcohol products accompanied by copies of the labels of alcohol products that the enterprise intends to produce.

5. Copies of the Decision Approving the Environmental Impact Assessment Report or the Confirmation of the Environmental Protection Commitment Registration issued by the competent authority.

Article 6. Handicraft Alcohol Production for Business Purposes

1. Organizations and individuals producing handicraft alcohol who are members of traditional craft villages producing handicraft alcohol are not required to apply for a Handicraft Alcohol Production License for Business Purposes. The organization or individual representing the village must apply for a Handicraft Alcohol Production License for the village and bear responsibility for the common production conditions applicable to all members of the village.

2. Organizations and individuals applying for a Handicraft Alcohol Production License for Business Purposes shall prepare two sets of application documents for the issuance of the Handicraft Alcohol Production License for Business Purposes, one set to be submitted to the competent authority and one set to be retained at the office of the organization or individual applying for the license. The application documents for the issuance of the Handicraft Alcohol Production License for Business Purposes include:

a) Application form for the issuance of the Handicraft Alcohol Production License for Business Purposes as per Appendix 10 attached to this Circular;

b) Copies of the Enterprise Registration Certificate or Business Registration Certificate and Tax Registration Certificate;

c) Copies of the Notification of Acceptance of Compliance Declaration and Food Safety Assurance Certificate;

d) List of product names of alcohol products accompanied by copies of the labels of alcohol products that the organization or individual intends to produce.

d) A list of the names of alcoholic products accompanied by a copy of the label of the alcoholic products that the organization or individual intends to produce.

Article 7. Production of Handmade Alcohol for Sale to Businesses with a Production License for Further Processing

1. Organizations and individuals applying to register production of handmade alcohol for sale to businesses with a production license for further processing shall prepare two (2) sets of application files, one (1) set to be submitted to the People's Committee of the commune where the organization or individual establishes the production facility for selling handmade alcohol to businesses with a production license for further processing, and one (1) set to be retained at the organization’s or individual’s registered production premises.

The application file for registering production of handmade alcohol for sale to businesses with a production license for further processing includes:

a) Application form for registration of production of handmade alcohol for sale to businesses with a production license for further processing according to Appendix 16;

b) A copy of the purchase and sale contract between the organization or individual applying for registration of production of handmade alcohol and the business with a production license for further processing of alcohol.

2. Procedures and formalities for issuing a Certificate of Registration for Production of Handmade Alcohol for Sale to Businesses with a Production License for Further Processing

a) Within seven working days from the date of receipt of complete and valid application files, the People's Committee of the commune where the organization or individual establishes the production facility shall examine and issue a Certificate of Registration for Production of Handmade Alcohol for Sale to Businesses with a Production License for Further Processing, or provide a written response stating the reasons if the application is denied;

b) In cases where the application files are incomplete or invalid, within three working days from the date of receipt of the application files, the issuing authority must issue a written request for supplementation.

3. The Certificate of Registration for Production of Handmade Alcohol for Sale to Businesses with a Production License for Further Processing has a validity period of five years.

Article 8. Issuance and Retention of Production Licenses for Alcohol and Certificates of Registration for Production of Handmade Alcohol for Sale to Businesses with a Production License for Further Processing

1. Industrial alcohol production licenses shall be made in four (4) copies: two (2) copies to be retained by the issuing authority, one (1) copy to be sent to the business that received the license, and one (1) copy to be sent to the Ministry of Industry and Trade (for licenses issued by the Department of Industry and Trade according to Model 7 attached to this Circular) or the local Department of Industry and Trade (for licenses issued by the Ministry of Industry and Trade according to Model 4 attached to this Circular).

2. Handmade alcohol production licenses for business purposes shall be made in four (4) copies: two (2) copies to be retained by the issuing authority, one (1) copy to be sent to the production facility that received the license, and one (1) copy to be sent to the higher-level Department of Industry and Trade managing the area. The license follows Model 13 attached to this Circular.

3. Certificates of Registration for Production of Handmade Alcohol for Sale to Businesses with a Production License for Further Processing shall be made in four (4) copies: two (2) copies to be retained by the issuing authority, one (1) copy to be sent to the production facility that received the certificate, and one (1) copy to be sent to the higher-level Industry and Trade Office managing the area. The certificate follows Model 19 attached to this Circular.

Article 9. Production Volume of Alcohol

Organizations and individuals producing alcohol may not produce beyond the production volume and types of alcoholic products already approved by the competent authority.

Chapter III

ALCOHOLIC BEVERAGE BUSINESS

Article 10. Documents for Application for a Business License to Distribute Alcohol Products

A business applying for a Business License to Distribute Alcohol Products shall prepare two (2) sets of documents, one set to be submitted to the competent authority issuing the license and one set to be retained by the business. The documents for application for a Business License to Distribute Alcohol Products include:

1. An application form for a Business License to Distribute Alcohol Products according to Model 27 attached to this Circular.

3. Copies of the Notification of Acceptance of Compliance Declaration and Food Safety Assurance Certificate.

3. A commitment letter established by the business, clearly stating the contents that the trader ensures compliance with all requirements and conditions regarding fire prevention and fighting, environmental protection at retail stores and warehouses as stipulated by law.

4. A report on the business results of the enterprise, including the following contents:

a) Business operation results for the three (3) previous years, accompanied by a detailed list and a valid copy of each purchase and sale contract with organizations or individuals producing alcohol or other distribution enterprises, and taxes paid;

b) Sales organization forms and management methods for the distribution system.

5. A list of traders, copies of Investment Certificate or Enterprise Registration Certificate or Business Registration Certificate and Tax Code Certificate, and Business License for Alcohol Products (if already operating) of enterprises that have been or will be part of the distribution system for alcohol products in at least six (6) provinces (with at least three (3) wholesale traders of alcohol products in each province).

6. Copies of introduction letters or purchase and sale contracts of organizations or individuals producing alcohol or other distribution enterprises (clearly indicating the area and type of alcohol products expected to be traded).

7. Copies of Certificates of Conformity or Standards for various types of alcohol products of the enterprise intending to operate.

8. Documents on transportation means, including: copies of documents proving the right to use transportation means (ownership or joint ownership under joint venture or capital contribution contracts; or having a transportation vehicle lease contract suitable for the scale of the enterprise's business operations with a minimum lease period of one (1) year); must have the right to use at least three (3) vehicles with a carrying capacity of five hundred (500) kilograms or more; meeting the requirement of maintaining the quality of alcohol products during transportation.

9. Financial capability documents: having financial capability to ensure normal operation of the entire distribution system of the enterprise (confirmed by a bank with a minimum account balance of one billion (1,000,000,000) Vietnamese dong).

10. Copies of payment receipts for fees and charges as prescribed by the Ministry of Finance.

Article 11. Documents for Application for a Business License to Wholesale Alcohol Products

A business applying for a Business License to Wholesale Alcohol Products shall prepare two (2) sets of documents, one set to be submitted to the competent authority issuing the license and one set to be retained by the business. The documents for application for a Business License to Wholesale Alcohol Products include:

1. An application form for a Business License to Wholesale Alcohol Products according to Model 29 attached to this Circular.

3. Copies of the Notification of Acceptance of Compliance Declaration and Food Safety Assurance Certificate.

3. A commitment letter established by the business, clearly stating the contents that the trader ensures compliance with all requirements and conditions regarding fire prevention and fighting, environmental protection at retail stores and warehouses as stipulated by law.

4. Report on business results of the enterprise:

a) Report on business operation results for the three (3) previous years, accompanied by a detailed list and a valid copy of each purchase and sale contract with organizations or individuals producing alcohol or distribution enterprises, and taxes paid;

b) Sales organization forms and management methods for the wholesale system.

5. A list of traders, copies of Investment Certificate or Enterprise Registration Certificate or Business Registration Certificate and Tax Code Certificate, and Business License for Alcohol Products (if already operating) of enterprises that have been or will be part of the wholesale system for alcohol products (at least three (3) retail traders of alcohol products or more).

6. Copies of introduction letters or purchase and sale contracts of organizations or individuals producing alcohol or other distribution enterprises (clearly indicating the area and type of alcohol products expected to be traded).

7. Copies of Certificates of Conformity or Standards for various types of alcohol products of the enterprise intending to operate.

8. Documents on transportation means including: copies of documents proving the right to use transportation means (ownership or joint ownership under joint venture or capital contribution contracts; or having a transportation vehicle lease contract suitable for the scale of the enterprise's business operations with a minimum lease period of one (1) year); must have the right to use at least one (1) vehicle with a carrying capacity of five hundred (500) kilograms or more; meeting the requirement of maintaining the quality of alcohol products during transportation.

9. Financial capability documents: having financial capability to ensure normal operation of the entire wholesale system of the enterprise (confirmed by a bank with a minimum account balance of three hundred million (300,000,000) Vietnamese dong).

10. Copies of payment receipts for fees and charges as prescribed by the Ministry of Finance.

Article 12. Documents for Application to Obtain a Business License for Retailing Alcoholic Products

A retailer applying for a Business License for Retailing Alcoholic Products shall prepare two (2) sets of documents: one (1) set to be submitted to the competent authority issuing the license, and one (1) set to be retained by the business or trader. One (1) Business License for Retailing Alcoholic Products is only applicable to one (1) retail store.

The documents for application to obtain a Business License for Retailing Alcoholic Products include the following:

1. An application form for a Business License for Retailing Alcoholic Products according to the model attached at Appendix 31 of this Circular.

3. Copies of the Notification of Acceptance of Compliance Declaration and Food Safety Assurance Certificate.

3. A commitment letter drafted by the trader, clearly stating that the trader will ensure full compliance with all fire prevention and firefighting requirements, and environmental protection regulations as stipulated by law at their retail stores and warehouses.

4. Copies of introduction letters or purchase-sale contracts of wholesale businesses of alcoholic products (specifying the types of alcoholic products intended for retail).

5. Copies of Certificates of Conformity Declaration or Standards Certificates of the types of alcoholic products intended for retail by the trader.

6. A copy of the receipt indicating payment of fees and charges as prescribed by the Ministry of Finance.

Article 13. Issuance and Retention of Business Licenses for Alcoholic Products

1. For Business Licenses for Distributing Alcoholic Products:

a) The Business License for Distributing Alcoholic Products according to the model attached at Appendix 28 of this Circular.

b) The Business License for Distributing Alcoholic Products shall be made in multiple copies: two (2) copies to be kept by the issuing authority; one (1) copy to be sent to the licensed enterprise; one (1) copy to be sent to the Market Management Department; and one (1) copy to be sent to each Industry and Trade Department named in the license (operating area) and the main office location of the enterprise; one (1) copy to be sent to each organization or individual producing alcohol or other distributing enterprises named in the license (selling products to the enterprise).

2. For Business Licenses for Wholesale Alcoholic Products:

a) The Business License for Wholesale Alcoholic Products according to the model attached at Appendix 30 of this Circular.

b) The Business License for Wholesale Alcoholic Products shall be made in multiple copies: two (2) copies to be kept by the issuing authority; one (1) copy to be sent to the licensed enterprise; one (1) copy to be sent to the Ministry of Industry and Trade; one (1) copy to be sent to the Market Management Sub-department; and one (1) copy to be sent to each organization or individual producing alcohol or other distributing enterprises named in the license (selling products to the enterprise).

3. For Business Licenses for Retailing Alcoholic Products:

a) The Business License for Retailing Alcoholic Products according to the model attached at Appendix 32 of this Circular.

b) The Business License for Retailing Alcoholic Products shall be made in multiple copies: two (2) copies to be kept by the issuing authority; one (1) copy to be sent to the licensed trader; one (1) copy to be sent to the Industry and Trade Department; one (1) copy to be sent to the Market Management Sub-department; and one (1) copy to be sent to each organization or individual producing alcohol or other wholesale enterprises named in the license (selling products to the trader).

Chapter IV

AMENDMENT, SUPPLEMENTATION, REISSUANCE OF ALCOHOLIC PRODUCT PRODUCTION LICENSES,

 ALCOHOLIC PRODUCT HANDICRAFT PRODUCTION LICENSES FOR BUSINESS PURPOSES,

 REGISTRATION CONFIRMATION FOR HANDICRAFT ALCOHOL PRODUCTION TO BE SOLD TO ENTERPRISES

 WITH ALCOHOL PRODUCTION LICENSES FOR REPROCESSING,

ALCOHOL PRODUCT BUSINESS LICENSES

ALCOHOLIC PRODUCTS BUSINESS LICENSE

Article 14. Issuance of Amended and Supplementary Licenses for Industrial Alcohol Production, Licenses for Handcrafted Alcohol Production for Business Purposes, Certificates of Registration for Handcrafted Alcohol Production to Sell to Businesses with Alcohol Production Licenses for Further Processing, and Licenses for Distributing, Wholesale, and Retailing Alcohol Products

1. In cases where there are changes to the contents of Licenses for Industrial Alcohol Production, Licenses for Handcrafted Alcohol Production for Business Purposes, Certificates of Registration for Handcrafted Alcohol Production to Sell to Businesses with Alcohol Production Licenses for Further Processing, and Licenses for Distributing, Wholesale, and Retailing Alcohol Products; organizations and individuals must prepare two (2) sets of application files, one (1) set to be submitted to the competent state management agency, and the other (1) set to be retained by the business.

2. Documents include:

a) A request for issuance of amended and supplementary license (in accordance with Form No. 3, 11, 17, 33 attached hereto);

b) A copy of the License for Industrial Alcohol Production, License for Handcrafted Alcohol Production for Business Purposes, Certificate of Registration for Handcrafted Alcohol Production to Sell to Businesses with Alcohol Production Licenses for Further Processing, and License for Distributing, Wholesale, and Retailing Alcohol Products that have been issued;

c) Documents proving the need for amendment and supplementation.

3. Procedures and formalities for issuing amended and supplementary licenses

a) Within ten (10) working days from the date of receipt of complete and valid application files, the competent state authority shall examine and issue amended and supplementary Licenses for Industrial Alcohol Production, Licenses for Handcrafted Alcohol Production for Business Purposes, Certificates of Registration for Handcrafted Alcohol Production to Sell to Businesses with Alcohol Production Licenses for Further Processing, and Licenses for Distributing, Wholesale, and Retailing Alcohol Products (in accordance with Form No. 6, 9, 15, 21, 35, 36, 37 attached hereto). In case of refusal to issue amended and supplementary licenses, a written response must be provided with clear reasons stated;

b) In cases where the application files are incomplete, within three (3) working days from the date of receipt of the application files, the issuing authority shall issue a written request for supplementation.

Article 15. Reissuance of Licenses for Industrial Alcohol Production, Licenses for Handcrafted Alcohol Production for Business Purposes, Certificates of Registration for Handcrafted Alcohol Production to Sell to Businesses with Alcohol Production Licenses for Further Processing, and Licenses for Distributing, Wholesale, and Retailing Alcohol Products

1. In cases of reissuance due to expiration of validity period

Organizations and individuals must submit an application file for reissuance of the license (including Licenses for Industrial Alcohol Production, Licenses for Handcrafted Alcohol Production for Business Purposes, and Licenses for Distributing, Wholesale, and Retailing Alcohol Products) or Certificate of Registration for Handcrafted Alcohol Production to Sell to Businesses with Alcohol Production Licenses for Further Processing thirty (30) days before the expiration date of the license. The application procedures, authorities, and formalities for reissuance under this provision shall apply as stipulated for new issuance.

2. In cases of reissuance due to loss, total or partial destruction, tearing, damage, or fire:

a) Organizations and individuals holding the license must prepare two (2) sets of application files for reissuance, one (1) set to be submitted to the competent state management agency, and the other (1) set to be retained by the business. Application files for reissuance due to loss, total or partial destruction, tearing, damage, or fire include:

- A request for reissuance (in accordance with Form No. 2, 12, 18, 34 attached hereto);

- An original or copy of the License for Industrial Alcohol Production, License for Handcrafted Alcohol Production for Business Purposes, Certificate of Registration for Handcrafted Alcohol Production to Sell to Businesses with Alcohol Production Licenses for Further Processing, and License for Distributing, Wholesale, and Retailing Alcohol Products that have been issued (if available).

b) The licensing authority (or Certificate of Registration for Handcrafted Alcohol Production to Sell to Businesses with Alcohol Production Licenses for Further Processing) shall base its decision on the retained files and the application files submitted by the business to reissue the license.

c) The validity period of the reissued license will remain the same as the original license (for cases of reissuance due to damage or loss).

3. Procedures and formalities for reissuing licenses and certificates

a) Within ten (10) days from the date of receipt of complete and valid application files, the competent state authority shall examine and reissue Licenses for Industrial Alcohol Production, Licenses for Handcrafted Alcohol Production for Business Purposes, Certificates of Registration for Handcrafted Alcohol Production to Sell to Businesses with Alcohol Production Licenses for Further Processing, and Licenses for Distributing, Wholesale, and Retailing Alcohol Products (in accordance with Form No. 5, 8, 14, 20, 38, 39, 40 attached hereto). In case of refusal to reissue, a written response must be provided with clear reasons stated;

b) In cases where the application files are incomplete, within three (3) working days from the date of receipt of the application files, the reissuing authority shall issue a written request for supplementation.

Chapter V

REPORTING SYSTEM

Article 16. Reporting System

1. Before January 31 each year, organizations and individuals producing and trading alcohol must submit statistical reports on production volume and types of alcohol products produced and traded (through distribution systems, wholesale) of the previous year to the competent authority that issued the license according to Form 22, 41, 42, 50 attached to this Circular; People's Communes report to the Department of Industry and Trade above a list of small-scale alcohol production facilities selling to businesses with alcohol production licenses within their jurisdiction according to Form 23 attached to this Circular.

2. Before February 28 each year, the Department of Industry and Trade is responsible for reporting on investment, production, trading, issuing licenses for small-scale alcohol production for business purposes, and a list of small-scale alcohol production facilities selling to businesses with alcohol production licenses for further processing within their jurisdiction to the Provincial Department of Industry and Trade according to Forms 24a, 24b attached to this Circular.

3. Before March 31 each year, the Provincial Department of Industry and Trade is responsible for reporting on investment, production, issuing licenses for industrial alcohol production, small-scale alcohol production, and trading of alcohol products (retail and wholesale) of the previous year within their jurisdiction to the Ministry of Industry and Trade according to Forms 25a, 25b, 43, 44 attached to this Circular.

4. Before July 15 and January 15 each year, enterprises engaged in distributing alcohol products are responsible for reporting on trading activities for six months and one year according to Form 49 attached to this Circular.

5. Before July 15 and January 15 each year, enterprises engaged in wholesaling alcohol products are responsible for reporting on trading activities for six months and one year according to Form 48 attached to this Circular.

6. Before July 15 and January 15 each year, traders engaged in retailing alcohol products are responsible for reporting on trading activities for six months and one year according to Form 47 attached to this Circular.

Chapter VI

IMPLEMENTING PROVISIONS

Article 17. Implementation Organization

1. The Light Industry Department and the Domestic Market Department, in accordance with their functions and responsibilities, shall take the lead in coordinating with units under the Ministry to perform the following tasks:

a) Organizing the acceptance of applications, inspection, supervision, evaluation, and submitting to the Ministry's leadership for approval regarding investment policies for alcohol production, issuance of production licenses, and distribution product trading licenses;

b) Organizing guidance, inspection of organizations and individuals implementing the provisions of this Circular and related laws on alcohol production and trading.

2. Departments of Industry and Trade at localities shall announce plans for retail alcohol product trading systems within their jurisdictions; organize the acceptance of applications, inspection, supervision, evaluation, and issuance of wholesale product trading licenses and production licenses according to the guidelines of this Circular.

3. County-level Departments of Industry and Trade shall organize the acceptance of applications, inspection, evaluation, and issuance of production licenses for small-scale alcohol production for business purposes and retail product trading licenses.

4. People's Communes shall organize the acceptance of registration certificates for small-scale alcohol production intended for sale to businesses with alcohol production licenses for further processing.

5. Enterprises and other organizations and individuals involved in alcohol production and trading activities shall be responsible for complying with the provisions of this Circular.

Article 18. Effective Date

1. This Circular takes effect from March 1, 2015.

2. Repeal Circular No. 39/2012/TT-BCT dated December 20, 2012 of the Ministry of Industry and Trade detailing certain provisions of Decree No. 94/2012/NĐ-CP dated November 12, 2012 of the Government on alcohol production and trading.

3. Licenses for alcohol production and trading already issued and still valid may continue to be used until the expiration date of the license.

4. Traders amending and supplementing alcohol production and trading licenses shall apply the provisions of this Circular.

5. Licenses shall be revoked in the following cases:

a) Traders who have been granted production and trading licenses for alcohol products before this Circular takes effect but have not operated continuously for 12 months;

b) From the date this Circular takes effect, traders who have been granted production and trading licenses for alcohol products but have not operated continuously for 12 months./.