Decree No. 67/2013/ND-CP provides detailed regulations on certain provisions and measures for implementing the Law on Prevention and Control of Harmful Effects of Tobacco concerning tobacco business activities.

DECREE

DETAILING CERTAIN PROVISIONS AND MEASURES FOR THE IMPLEMENTATION OF THE LAW ON PREVENTION AND CONTROL OF TOBACCO HARM REGARDING TOBACCO TRADING

REGULATIONS ON TOBACCO TRADING

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

Pursuant to the Law on Prevention and Control of Tobacco Harm dated June 18, 2012;

At the proposal of the Minister of Industry and Trade,

The Government promulgates this Decree detailing certain provisions and measures for the implementation of the Law on Prevention and Control of Tobacco Harm regarding tobacco trading.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

Regulations on detailing certain provisions and measures for the implementation of the Law on Prevention and Control of Tobacco Harm regarding tobacco trading include:

1. Conditions for producing, buying and selling tobacco, processing tobacco raw materials, investing in tobacco cultivation areas and trading tobacco raw materials, consuming tobacco products; exporting and importing machinery, equipment, tobacco auxiliary materials, and tobacco products; preventing smuggling and commercial fraud.

2. Investment in producing tobacco products, processing tobacco raw materials, joint ventures in tobacco production, transferring industrial property rights, and transferring the right to use industrial property objects for tobacco production.

3. Producing and processing tobacco for export; processing and manufacturing tobacco raw materials for export.

4. Controlling domestic consumption volume of tobacco, announcing the permitted production and import volume of tobacco.

Article 2. Applicability

1. This Decree applies to organizations and individuals participating in tobacco trading activities and other activities related to tobacco trading within the territory of Vietnam.

2. Foreign traders, enterprises with foreign investment in Vietnam are subject to this Decree and other relevant legal documents.

3. This Decree does not apply to the importation of tobacco products and the sale of tobacco products at duty-free shops (Duty Free Shops). Trading of tobacco in tax-free zones shall be carried out according to separate regulations issued by the Prime Minister.

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

1. "Tobacco leaf" means the leaves of the tobacco plant with the scientific name Nicotiana tabacum L and Nicotiana rustica L, which are the input materials for tobacco raw material processing.

2. "Tobacco product" means a product produced from all or part of tobacco raw materials and processed in the form of cigarettes, cigars, tobacco threads used for pipe smoking, and other forms used for smoking, chewing, or sniffing.

4. "Tobacco thread" means a tobacco product produced from all or part of tobacco raw materials and processed in the form of tobacco threads used for pipe smoking or rolled into cigarettes for smoking or chewing.

5. "Auxiliary materials for tobacco" means all types of supplies other than tobacco raw materials used in the production of tobacco products.

6. "State trade in the import of tobacco products" means the mechanism of importation based on the State designation of key enterprises for the import of tobacco products.

7. "Permitted production and import volume of tobacco" means the production or import volume of enterprises holding tobacco production licenses for domestic consumption.

8. "Processing of tobacco raw materials" means the processing activity carried out on machine lines and equipment to produce tobacco raw materials.

9. "Supplier of tobacco products" means an enterprise producing tobacco products or an enterprise importing tobacco products or a branch or subsidiary company of an enterprise producing tobacco products.

11. "Wholesale trader of tobacco products" means a trader purchasing tobacco products from distribution traders of tobacco products and suppliers of tobacco products to sell to retail traders of tobacco products.

13. "Investment in tobacco cultivation" means the act of enterprises investing capital and technology to carry out planting, caring for, and harvesting tobacco raw materials or directly investing (cash, materials, goods...) and technology for tobacco growers to carry out planting, caring for, and harvesting tobacco.

14. "Production capacity of tobacco products" means the capability of synchronized machines and equipment to produce tobacco products.

Article 4. Principles for Managing Tobacco Business Activities

1. The State shall uniformly manage all investment, production, purchase, sale, export, import activities related to tobacco and other activities associated with tobacco business and raw materials.

3. The State shall implement controls on the supply level of tobacco entering the market (including production volume and imported tobacco); conduct state trade in imports; monitor tobacco product consumption in the market to reduce the harmful effects of tobacco.

4. The State shall organize and restructure tobacco manufacturing enterprises towards consolidating inefficient businesses into strong entities capable of competing domestically and internationally.

5. The State shall strictly control the purchase and sale of tobacco products through the planning system for tobacco product sales networks.

6. Machinery, equipment specialized for tobacco, raw materials, cigarette paper, and tobacco are goods subject to specialized management by the Ministry of Industry and Trade.

Chapter II
INVESTMENT, PURCHASE AND SALE, AND PROCESSING OF TOBACCO RAW MATERIALS

Article 5. Investment in Growing Tobacco Plants and Utilizing Tobacco Plant Seeds

1. Investment in developing tobacco planting areas in each locality must be consistent with the approved tobacco raw material region planning by competent state authorities and land use planning in each locality.

2. The utilization of tobacco plant seeds must comply with legal regulations on seed management.

Article 6. Grading of Tobacco Raw Materials

1. Individuals growing tobacco plants, enterprises involved in growing, processing, and trading tobacco raw materials must carry out grading of tobacco raw materials according to legal provisions.

2. The Ministry of Industry and Trade shall lead and coordinate with relevant ministries and sectors to develop national technical standards for grading tobacco raw materials.

Article 7. Conditions for Issuing a Certificate of Eligibility for Tobacco Plant Cultivation Investment

Conditions for obtaining a Certificate of Eligibility for Tobacco Plant Cultivation Investment include:

1. Registration for trading tobacco raw materials.

2. Conditions regarding investment scale, infrastructure, technical equipment, and human resources:

a) An investment scale for growing tobacco plants in the locality of at least 100 hectares annually;

b) The area of the business facility including sorting zones, packaging areas, and raw material warehouses must be commensurate with the business scale;

c) A raw material warehouse with a total area of not less than 500 square meters. The warehouse must have ventilation systems and appropriate equipment for storing raw materials, including thermometers, hygrometers to check air temperature and relative humidity, means to prevent pests, insects, and rodents; there must be sufficient shelves or racks to support raw material packages, placed at least 20 centimeters above the ground and at least 50 centimeters from walls and columns;²d) Workers must possess professional skills, expertise, and work experience to manage investments, provide technical support, and purchase raw materials, with a minimum agricultural technical education level of intermediate. Ensure that one technical officer manages up to a maximum of 50 hectares of tobacco plant cultivation fields.

3. Conditions regarding the tobacco raw material trading process.

There must be an investment agreement for tobacco plant cultivation with growers that aligns with the business scale.

4. Conditions regarding environmental protection and fire prevention.

All necessary firefighting and environmental protection equipment must be provided in accordance with legal requirements.

Phải có đầy đủ các phương tiện, thiết bị phòng cháy, chữa cháy và bảo vệ môi trường theo quy định của pháp luật.

Article 8. Documents for Application to Obtain Certificate of Eligibility for Investment in Tobacco Plant Cultivation

1. Application form for obtaining the Certificate of Eligibility for Investment in Tobacco Plant Cultivation.

2. Copy of the business registration certificate.

3. List of area sizes, warehouse layout diagrams, factory plans, office working spaces, and other auxiliary areas.

4. List of equipment: Ventilation system, fire prevention and extinguishing tools and equipment, hygrometers, thermometers, means to prevent and control pests, termites, and moths; shelves or stands for tobacco bales.

5. List of employees, copies of labor contracts, certificates of training in agricultural techniques at a college level or higher for investment management staff, technical support staff, and raw material procurement staff.

Article 9. Conditions for Issuing License for Purchase and Sale of Tobacco Raw Materials

1. The enterprise must be established according to the provisions of the law and registered to operate tobacco raw materials.

2. Have a fixed business location with a clear address.

3. Conditions regarding infrastructure, equipment, and human resources:

b) Have a tobacco raw material warehouse with a total area not less than 1,000 square meters.²d) Workers must possess professional skills, expertise, and work experience to manage investments, provide technical support, and purchase raw materials, with a minimum agricultural technical education level of intermediate. Ensure that one technical officer manages up to a maximum of 50 hectares of tobacco plant cultivation fields.

c) Employees have relevant skills and expertise, trained in agricultural techniques at a college level or higher.

4. Have agency import contracts for tobacco raw materials with tobacco product manufacturing enterprises, tobacco raw material processing enterprises, or agency export contracts for tobacco raw materials with enterprises eligible for investment in tobacco plant cultivation, tobacco raw material processing enterprises.

5. Conditions related to environmental protection and fire prevention.

Phải có đầy đủ các phương tiện, thiết bị phòng cháy, chữa cháy và bảo vệ môi trường theo quy định của pháp luật.

Article 10. Documents for Application to Obtain License for Purchase and Sale of Tobacco Raw Materials

1. Application form for obtaining the License for Purchase and Sale of Tobacco Raw Materials.

2. Copy of the business registration certificate.

4. List of equipment: Ventilation system, fire prevention and extinguishing tools and equipment, hygrometers, thermometers, means to prevent and control pests, termites, and moths; shelves or stands for tobacco bales.

5. List of employees, copies of labor contracts, certificates of training in agricultural techniques at a college level or higher for raw material procurement staff.

6. Copies of agency import contracts for tobacco raw materials with tobacco product manufacturing enterprises, tobacco raw material processing enterprises, or agency export contracts for tobacco raw materials with enterprises eligible for investment in tobacco plant cultivation, tobacco raw material processing enterprises.

Article 11. Authority and Procedure for Issuing Certificate of Eligibility for Investment in Tobacco Plant Cultivation and License for Purchase and Sale of Tobacco Raw Materials

1. Authority to issue the Certificate of Eligibility for Investment in Tobacco Plant Cultivation and the License for Purchase and Sale of Tobacco Raw Materials.

The Department of Industry and Trade of the province or centrally administered city (hereinafter referred to as the Department of Industry and Trade) is the authority issuing, reissuing, and supplementing the Certificate of Eligibility for Investment in Tobacco Plant Cultivation and the License for Purchase and Sale of Tobacco Raw Materials to enterprises whose main offices are located within its jurisdiction for investment in tobacco plant cultivation and purchase and sale of tobacco raw materials.

2. Procedure for Issuing the Certificate of Eligibility for Investment in Tobacco Plant Cultivation and the License for Purchase and Sale of Tobacco Raw Materials:

a) Enterprises investing in tobacco plant cultivation and enterprises purchasing and selling tobacco raw materials submit one set of application documents for the Certificate of Eligibility for Investment in Tobacco Plant Cultivation and the License for Purchase and Sale of Tobacco Raw Materials to the Department of Industry and Trade.

b) Within ten working days from the date of receiving complete and valid documents, the Department of Industry and Trade will review and issue the Certificate of Eligibility for Investment in Tobacco Plant Cultivation and the License for Purchase and Sale of Tobacco Raw Materials. In cases where the enterprise does not meet the required conditions, the Department of Industry and Trade will issue a document refusing the license and clearly stating the reasons.

c) If the submitted documents are incomplete, within five working days from the date of receipt, the Department of Industry and Trade will issue a document requesting the enterprise to supplement the missing documents.

3. Establishment and retention of the Certificate of Eligibility for Investment in Tobacco Plant Cultivation and the License for Purchase and Sale of Tobacco Raw Materials.

The Certificate of Eligibility for Investment in Tobacco Plant Cultivation and the License for Purchase and Sale of Tobacco Raw Materials shall be established in four copies: two copies retained by the Department of Industry and Trade, one copy sent to the Ministry of Industry and Trade, and one copy sent to the enterprise that has been issued the certificate.

4. The Certificate of Eligibility for Investment in Tobacco Plant Cultivation and the License for Purchase and Sale of Tobacco Raw Materials have a validity period of five years. Thirty days before the expiration date of the license, organizations or individuals must submit one set of application documents to renew the Certificate of Eligibility for Investment in Tobacco Plant Cultivation and the License for Purchase and Sale of Tobacco Raw Materials if they continue their activities. The renewal procedures are stipulated in Article 39 of this Decree.

Article 12. Conditions for Issuing a Processing Raw Materials for Tobacco Products Permit

1. Being a business established in accordance with the provisions of the law, having registered to process raw materials for tobacco products.

2. Conditions regarding infrastructure, technical equipment, and personnel:

a) The area of the processing facility including sorting areas, processing areas, packaging areas, and raw material warehouses must be commensurate with the scale of business operations, with a total area not less than 5,000 square meters.²;

b) Having separate warehouses for unprocessed and processed tobacco raw materials that are commensurate with the scale of business operations. Warehouses must have ventilation systems, thermometers, hygrometers to check the temperature and relative humidity of the air inside the warehouse, means to prevent and control pests, termites, and moths; there must be sufficient shelves or racks to support tobacco packages arranged at least 20 cm above the ground and at least 50 cm from walls and columns.

c) Having a complete set of specialized machinery and equipment for separating tobacco stems or processing tobacco strands, tobacco sheets, and other alternative raw materials used in the production of tobacco products. The raw material processing line must be specialized, meeting industrial hygiene standards, occupational safety standards, and environmental protection standards.

d) Having inspection equipment to measure and test the quality of raw materials before and after processing.

đ) All machinery and equipment must have a legal source.

e) Having employment contracts with workers who have vocational skills and expertise in mechanical engineering, technology, with a minimum level of college education.

3. Having investment contracts for growing tobacco plants with tobacco growers or purchase and sale contracts for raw materials with businesses investing in growing tobacco plants.

4. Conditions regarding raw material quality standards.

Must meet the requirements of national technical standards and current regulations on quality.

5. Conditions regarding environmental protection and fire prevention.

Must have all necessary firefighting and environmental protection equipment as stipulated by law.

6. Conditions regarding the location of the processing facility.

The location of the processing facility must comply with the Strategy and Planning for the Production of Tobacco Products and Tobacco Raw Material Regions approved by competent authorities.

Article 13. Documents for Requesting a Processing Raw Materials for Tobacco Products Permit

1. Application form for requesting a Processing Raw Materials for Tobacco Products Permit.

2. Copy of the Business Registration Certificate or Business Registration.

3. List of areas and floor plans of sorting areas, processing areas, packaging areas, warehouses, offices, and auxiliary areas.

4. List of specialized machinery and equipment for the raw material processing stage, quality inspection equipment before and after processing, ventilation systems, firefighting equipment, hygrometers, thermometers, means to prevent and control pests and moths; shelves or racks to support tobacco packages.

5. Documentation proving the legal origin of machinery and equipment.

6. List of employees.

7. Copy of employment contracts accompanied by copies of diplomas in mechanical engineering, technology, food chemistry for raw material processing workers.

8. Copy of investment contracts for growing tobacco plants with tobacco growers, purchase and sale contracts for raw materials with businesses investing in growing tobacco plants.

9. Copy of the Product Quality Standard Certificate for raw materials for tobacco products issued by the competent authority.

Article 14. Competence and Procedure for Issuing Licenses to Process Tobacco Raw Materials

1. Competence to Issue Licenses to Process Tobacco Raw Materials.

The Ministry of Industry and Trade is the authority issuing, reissuing, and amending Licenses to Process Tobacco Raw Materials.

2. Procedure for Issuing Licenses to Process Tobacco Raw Materials.

a) A tobacco raw material processing enterprise submits one set of application documents for a License to Process Tobacco Raw Materials to the Ministry of Industry and Trade;

b) Within twenty working days from the date of receiving complete and valid documents, the Ministry of Industry and Trade will examine and issue the License to Process Tobacco Raw Materials. In cases where the enterprise does not meet the required conditions, the Ministry of Industry and Trade will issue a document refusing the license and clearly stating the reasons;

c) If the submitted documents are incomplete, within seven working days from the date of receipt, the Ministry of Industry and Trade will issue a document requesting the enterprise to supplement the documents.

3. Establishment and Retention of Licenses to Process Tobacco Raw Materials.

The License to Process Tobacco Raw Materials shall be established in four copies: two copies retained at the Ministry of Industry and Trade, one copy sent to the enterprise that has been granted the license, and one copy sent to the Department of Industry and Trade where the enterprise's main office is located.

4. The License to Process Tobacco Raw Materials has a validity period of five years. Thirty days before the expiration date of the license, a tobacco raw material processing enterprise must submit an application for reissuance of the License to Process Tobacco Raw Materials if it continues to process. The procedures for reissuance are stipulated in Article 39 of this Decree.

Article 15. Rights and Obligations of Enterprises Investing in, Buying, and Selling Tobacco Raw Materials, Processing Tobacco Raw Materials

In addition to the rights and obligations prescribed by laws on enterprises, enterprises investing in growing tobacco plants, buying and selling tobacco raw materials, and processing tobacco raw materials have the following rights and obligations:

1. An enterprise with a Certificate of Eligibility for Investment in Growing Tobacco Plants is permitted to choose investment areas and tobacco growers according to the Tobacco Product Production Planning and Tobacco Raw Material Areas. It can enter into contracts for investment in growing and purchasing tobacco raw materials with tobacco growers and sell tobacco raw materials to enterprises with a License to Produce Tobacco Products and a License to Process Tobacco Raw Materials.

2. An enterprise with a License to Buy and Sell Tobacco Raw Materials may only act as an agent for importing tobacco raw materials for enterprises with a License to Produce Tobacco Products and a License to Process Tobacco Raw Materials; and act as an agent for exporting tobacco raw materials for enterprises with a Certificate of Eligibility for Investment in Growing Tobacco Plants and a License to Process Tobacco Raw Materials.

3. An enterprise with a License to Process Tobacco Raw Materials may use specialized tobacco machinery suitable for each stage of tobacco raw material processing.

4. An enterprise investing in growing tobacco plants must display a signboard bearing the trade name of the enterprise at the tobacco raw material purchase location; publicly disclose tobacco raw material grading standards according to current regulations at the tobacco raw material purchase location along with samples of tobacco leaves.

5. Enterprises investing in growing tobacco plants, buying and selling tobacco raw materials, and processing tobacco raw materials must maintain the licensing conditions throughout their business operations.

6. Annually, enterprises investing in growing tobacco plants must register the area planted with tobacco and the expected yield of tobacco leaf raw materials with local authorities (People's Committee of communes, wards) within their investment area.

Article 16. Tobacco Raw Material Cultivation and Processing Fund

1. Enterprises investing in tobacco plant cultivation shall allocate from the purchase price of tobacco raw materials to establish the 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 the regulations of the Ministry of Finance.

Chapter III
TOBACCO PRODUCT PRODUCTION

Article 17. Conditions for Issuing a Production License for Tobacco Products

1. Enterprises currently producing tobacco products prior to the issuance of Resolution No. 12/2000/NQ-CP dated August 14, 2000 of the Government on National Policy to Prevent and Control the Harmful Effects of Tobacco for the period 2000-2010, or enterprises that have been approved by the Prime Minister regarding investment proposals in cases of merger or joint venture for tobacco production.

2. Investment and usage conditions for domestically grown tobacco raw materials:

a) The enterprise must participate in planting tobacco plants through direct investment or joint investment with enterprises holding Certificates of Eligibility for Tobacco Plant Cultivation, in accordance with the scale of business operations of the enterprise and the approved Tobacco Raw Material Region Plan;

b) Must use domestically grown tobacco raw materials for tobacco production. In cases where domestic raw materials are insufficient, the enterprise may import the shortfall according to the annual import plan announced by the Ministry of Industry and Trade, except for the production of foreign-labeled tobacco products or tobacco products for export. This plan is determined in accordance with the approved Tobacco Product Production Plan and Tobacco Raw Material Region Plan.

3. Equipment conditions:

a) Possess specialized machinery including the main processes: Cigarette rolling, packaging;

b) In the cigarette rolling and packaging process, the enterprise must use automatic rolling, packaging machines, except in cases where traditional tobacco product production methods require manual operation;

c) Have testing equipment to measure and check quality indicators such as: Cigarette weight, cigarette circumference, cigarette pressure drop. For other physical and chemical indicators and tobacco hygiene standards, the enterprise can conduct self-inspection or entrust service units with inspection functions to perform inspections. Inspection results must be systematically retained for a period longer than the product's shelf life by six months for monitoring purposes;

d) All machinery and equipment for tobacco product production must have legal origins.

4. Standards and technical regulations conditions for tobacco products.

The enterprise must meet the requirements of basic standards and national technical regulations for tobacco products.

5. Trademark ownership conditions.

The enterprise must have legitimate ownership or usage rights for registered and protected trademarks in Vietnam.

6. Environmental and fire prevention conditions.

Adequate firefighting facilities and equipment must be provided to ensure environmental safety in accordance with the law.

Article 18. Documents for Application for a Production License for Tobacco Products

1. Application form for a Production License for Tobacco Products.

2. A copy of the Enterprise Registration Certificate or Business Registration Certificate which must include registration of the tobacco product manufacturing industry.

3. Report on the enterprise's production and business activities over the last three years (if available) and projected production volume for the next five years (specifying production volume targets for each group of tobacco products converted to packs of 20 cigarettes).

4. List of cigarette rolling and packaging machinery and equipment (capacity of each process converted to packs of 20 cigarettes based on three shifts per day).

5. Documentation proving the legal origin of machinery and equipment.

6. Contract for processing tobacco strands, quality inspection service contract (if applicable).

7. List of warehouse, factory, office space areas, and other auxiliary zones.

8. Copies of documents confirming legitimate ownership or usage rights for trademarks of tobacco products of the enterprise.

9. Copies of notifications of compliance with national technical regulations for tobacco.

10. Copies of documentation proving investment in developing tobacco raw material regions.

Article 19. Competence and Procedure for Issuing Production Licenses for Tobacco Products

1. Competence to Issue Production Licenses for Tobacco Products.

The Ministry of Industry and Trade is the authority issuing, reissuing, amending, and supplementing production licenses for tobacco products.

2. Procedure for Issuing Production Licenses for Tobacco Products.

a) A business producing tobacco submits one set of application documents for a production license for tobacco products to the Ministry of Industry and Trade;

b) Within twenty working days from the date of receiving complete and valid documents, the Ministry of Industry and Trade will examine and issue the production license for tobacco products. In cases where the enterprise does not meet the required conditions, the Ministry of Industry and Trade will issue a document refusing the license and clearly state the reasons;

c) If the submitted documents are incomplete, within seven working days from the date of receipt of the enterprise's documents, the Ministry of Industry and Trade will issue a document requesting the enterprise to supplement the documents;

3. Establishment and Retention of Production Licenses for Tobacco Products.

The production license for tobacco products shall be established in four copies: two copies retained at the Ministry of Industry and Trade, one copy sent to the enterprise that has been granted the license, and one copy sent to the Department of Industry and Trade where the enterprise's main office is located.

4. The production license for tobacco products has a validity period of five years. Thirty days before the expiration date of the license, if the tobacco manufacturing enterprise continues to produce, it must submit an application for reissuing the production license for tobacco products. The application procedures for reissuance are stipulated in Article 39 of this Decree.

Article 20. Production Volume and Import Volume of Tobacco Products

1. The total annual production volume and import volume of tobacco for domestic consumption throughout the industry may not exceed the total production volume of the entire tobacco industry announced by the Ministry of Industry and Trade prior to the issuance of the Law on Prevention and Control of Harmful Effects of Tobacco.

2. The annual production volume and import volume of tobacco products for domestic consumption by each enterprise may not exceed the production volume recorded in the production license for tobacco products.

3. Based on the business results of tobacco manufacturing enterprises over three years and the projected production and business plans for the next five years, the Ministry of Industry and Trade will review and announce the permitted production and import volumes for each tobacco manufacturing enterprise during the next five-year period in the production license for tobacco products of the enterprise.

4. By 2017, the production volume of tobacco products produced by enterprises, converted to cigarette sticks (20 sticks/pack), must reach at least 100 million packs/year (including domestic consumption and export volumes). If this production volume is not reached, the enterprise must switch to another industry or merge with another enterprise holding a production license for tobacco products.

Article 21. Production Capacity and Transfer of Production Capacity of Enterprises

1. The production capacity of each tobacco manufacturing enterprise and the entire tobacco industry is the machinery and equipment capacity existing at the time of issuance of Resolution No. 12/2000/NQ-CP dated August 14, 2000, determined and announced by the Ministry of Industry before the issuance of the Law on Prevention and Control of Harmful Effects of Tobacco.

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

3. A tobacco product manufacturing enterprise that has a market for consuming tobacco products and has been granted a production license for tobacco products but lacks the permitted production capacity:

a) Can subcontract the production of tobacco products at other enterprises with surplus production capacity;

b) Can lease, borrow, or transfer specialized tobacco machinery and equipment from other manufacturing enterprises with surplus production capacity after obtaining written approval from the Ministry of Industry and Trade.

4. Transfer of Production Capacity of Enterprises.

The Ministry of Industry and Trade will transfer the production capacity of tobacco products from enterprises with surplus production capacity that have not fully utilized their capacity and do not have feasible plans to utilize their production capacity to enterprises that have been granted production licenses, have developing markets, but have exhausted their production capacity according to the following principles:

a) There must be a mutual agreement among tobacco product manufacturing enterprises based on ensuring the interests of the enterprises;

b) In cases where enterprises cannot agree as stipulated in Clause 3 of this Article, the transfer of machinery and equipment between tobacco product manufacturing enterprises will be carried out in accordance with the provisions of the law.

Article 22. Product Trademarks for Tobacco Products

1. Tobacco products may only be consumed in Vietnam if they have been legally protected under intellectual property rights in Vietnam.

2. Enterprises producing tobacco products with foreign trademarks for consumption in Vietnam must obtain permission from the Prime Minister.

3. Only enterprises holding a Production License for tobacco products are permitted to print labels or contract printing facilities to print cigarette packaging labels.

Article 23. 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. Enterprises are entitled to organize distribution systems and wholesale sales of their own tobacco products, and to retail such products directly through their affiliated stores in accordance with regulations without needing to apply for a Retail License for tobacco products.

2. Enterprises are allowed to distribute their own tobacco products (directly or through branches or subsidiaries) to other enterprises holding Distribution and Wholesale Licenses for tobacco products.

3. Enterprises must publish basic standards for their products and ensure that their tobacco products comply with national technical standards for tobacco.

Chapter IV
INVESTMENT IN PRODUCTION OF TOBACCO PRODUCTS

Article 24. Conditions and Procedures for Investment in Upgrading Equipment and Technology; Investment in Export Tobacco Production and Processing; Relocation According to Planning; Investment in Processing Tobacco Raw Materials

1. Projects for investment in upgrading equipment and technology; investment in export tobacco production and processing must meet the following principles:

a) Investment in tobacco product production must align with the Tobacco Product Production Plan and Tobacco Raw Material Region Plan and the business production plan of the enterprise;

b) No new construction or expansion of existing tobacco product manufacturing facilities to increase domestic consumption beyond the total production capacity of the tobacco industry determined by the Ministry of Industry and Trade as stipulated in Article 21 of this Decree;

c) Investment in machinery and production technology for tobacco must match the scale and production plan of the enterprise.

2. Procedures and Formalities for Investment in Upgrading Equipment and Technology; Investment in Export Tobacco Production and Processing; Relocation According to Planning:

a) Enterprises holding a Production License for tobacco products and a Processing License for tobacco raw materials submit a written proposal and project for investment approval to the Ministry of Industry and Trade. The content of the proposal includes: Project name, location, main technical specifications, scale, production volume, project effectiveness, and disposal plan for replaced machinery and equipment (if applicable);

b) Within fifteen working days from the date of receiving complete and valid documents from the enterprise, the Ministry of Industry and Trade will issue a response. In cases where the submitted documents are incomplete, within seven working days from the date of receipt, the Ministry of Industry and Trade will issue a request for the enterprise to supplement the documents. If the enterprise does not meet the conditions as prescribed, the Ministry of Industry and Trade will issue a refusal permit letter and specify the reasons;

c) After receiving the approval document from the Ministry of Industry and Trade, the enterprise implements the investment according to the procedures and formalities for investment and basic construction as prescribed by law;

d) The enterprise must report to the Ministry of Industry and Trade on the results of handling specialized tobacco machinery and equipment that has been replaced during the investment process.

Article 25. Foreign Investment in Cigarette Production

1. Conditions for foreign investment and cooperation to produce cigarettes:

a) Investment in cigarette production must be consistent with the approved cigarette production planning and tobacco raw material regions;

b) Investment on the basis of joint ventures, cooperating with enterprises already having a cigarette production permit to update technology, equipment, and product structure towards improving product quality and value;

c) The State must hold a controlling stake in the registered capital of the enterprise (in the case of joint venture investment);

d) Meeting the conditions stipulated in Article 17 of this Decree;

đ) Approval by the Prime Minister based on the proposal of the Ministry of Industry and Trade.

2. Procedures and formalities for foreign investment in joint ventures for cigarette production:

a) The joint venture parties submit project establishment files, joint venture contracts, along with request documents to the Ministry of Industry and Trade;

Request documents include main contents: Project name, location, key technical specifications related, scope and objectives of operation, scale, production volume of each type of cigarette product, project effectiveness, investment plan for machinery and equipment and handling of replaced machinery and equipment.

b) Within thirty working days from the date of receipt of complete project files and request documents from the enterprise, the Ministry of Industry and Trade will examine and report to the Prime Minister for examination and decision. In case of rejection, a reply document must be provided to the enterprise;

c) After receiving the approval document from the Prime Minister, the joint venture parties may proceed to register the establishment of the joint venture according to current laws on investment.

3. Procedures and formalities for foreign investment through transfer of industrial property rights or usage rights for industrial property objects to produce cigarette products:

a) The parties submit industrial property rights transfer contracts or usage rights transfer contracts for industrial property objects, along with request documents to the Ministry of Industry and Trade. Request documents include main contents of the industrial property rights transfer contract or usage rights transfer contract for industrial property objects; scale, production volume of each type of cigarette product, project effectiveness, investment plan for machinery and equipment and handling of replaced machinery and equipment (if applicable);

b) Within thirty working days from the date of receipt of complete project files and request documents from the enterprise, the Ministry of Industry and Trade will examine and report to the Prime Minister for examination and decision. In case of rejection, a reply document must be provided to the enterprise;

c) After receiving the approval document from the Prime Minister, the parties may proceed to implement the industrial property rights transfer contract or usage rights transfer contract for industrial property objects.

Enterprises must report to the Ministry of Industry and Trade on the results of handling specialized cigarette machinery that is no longer in use or has been liquidated when deepening investment and bear full responsibility for such handling.

Chapter V
PURCHASE AND SALE OF CIGARETTE PRODUCTS

Article 26. Conditions for Issuing Purchase and Sale Permits for Cigarette Products

1. Conditions for issuing distribution permits for cigarette products:

b) Having a fixed business location with a clear address, meeting technical requirements and equipment standards as prescribed;

đ) Having a warehouse (or warehouse system) owned or co-owned under a joint venture or capital contribution agreement; or having a warehouse rental contract suitable for the scale of the enterprise's business (minimum total area of 100 m² or more) capable of maintaining the quality of cigarette products during storage;

g) Having financial capability to ensure normal operation of the entire distribution system (with a bank confirmation of at least 2 billion Vietnamese dong);

h) Having a commitment from the enterprise to comply fully with fire prevention, firefighting, and environmental protection requirements as prescribed by law;

i) Consistent with the approved cigarette product purchase and sale network planning by the competent authority.

2. Conditions for issuing wholesale permits for cigarette products:

b) Having a fixed business location with a clear address, meeting technical requirements and equipment standards as prescribed;

c) Having a wholesale system for cigarette products in the province where the trader's headquarters is located (at least two retail traders of cigarette products);

đ) Having a warehouse (or warehouse system) owned or co-owned under a joint venture or capital contribution agreement; or having a warehouse rental contract suitable for the scale of the enterprise's business (minimum total area of 50 m² or more) capable of maintaining the quality of cigarette products during storage;

g) Having financial capability to ensure normal operation of the entire wholesale system (with a bank confirmation of at least 1 billion Vietnamese dong);

h) Having a commitment from the enterprise to comply fully with fire prevention, firefighting, and environmental protection requirements as prescribed by law;

i) Consistent with the approved cigarette product purchase and sale network planning by the competent authority.

3. Conditions for issuing retail permits for cigarette products:

b) Having a fixed business location with a clear address, meeting technical requirements and equipment standards as prescribed;

đ) Complying with the approved planning for the network system of tobacco product sales;

Article 27. Documents for Application for Tobacco Product Sales Permit

1. Documents for Application for Tobacco Product Distribution Permit:

a) Application form for Tobacco Product Distribution Permit;

b) Copies of Business Registration Certificate or Business Registration Certificate and Tax Identification Number Certificate;

d) Business location documents, including:

- Address, area, and description of the tobacco sales area;

- Copies of documents proving the right to use the business location (ownership, co-ownership, or lease agreement with a minimum term of one year);

- List of temperature and humidity control equipment in the tobacco sales area;

- Business operation report for the previous three years, accompanied by a detailed list and copies of valid sales contracts with each tobacco product supplier or other distribution enterprise, and taxes paid;

- Sales organization form and management method for the distribution system;

e) List of traders, copies of Business Registration Certificate or Business Registration Certificate and Tax Identification Number Certificate, and Tobacco Product Sales Permit (if already operating) of traders who are or will be part of the distribution system;

h) Financial capability documents: Ensuring financial capability to support normal operation of the entire distribution system (with bank confirmation);

i) Warehouse (or storage area) documents, including:

- Documents proving the right to use the warehouse (ownership, co-ownership under joint venture or capital contribution contracts of the enterprise or lease agreement with a minimum term of one year);

- The enterprise's commitment to fully comply with fire prevention, firefighting, and environmental protection requirements according to the law for warehouses;

2. Documents for Application for Wholesale Tobacco Product Sales Permit:

a) Application form for Wholesale Tobacco Product Sales Permit;

b) Copies of Business Registration Certificate or Business Registration Certificate and Tax Identification Number Certificate;

d) Business location documents, including:

- Address, area, and description of the tobacco sales area;

- Copies of documents proving the right to use the business location (ownership, co-ownership, or lease agreement with a minimum term of one year);

- List of temperature and humidity control equipment in the tobacco sales area;

- Business operation report for the previous three years, accompanied by a detailed list and copies of valid sales contracts with each tobacco product supplier or distribution enterprise or other wholesale enterprise, and taxes paid;

- Sales organization form and management method for the distribution system;

e) List of traders, copies of Business Registration Certificate or Business Registration Certificate and Tax Identification Number Certificate, and Tobacco Product Sales Permit (if already operating) of traders who are or will be part of the distribution system on the local market;

h) Financial capability documents: Ensuring financial capability to support normal operation of the entire distribution system (with bank confirmation);

i) Warehouse (or storage area) documents, including:

- Documents proving the right to use the warehouse (ownership, co-ownership under joint venture or capital contribution contracts of the enterprise or lease agreement with a minimum term of one year);

- The enterprise's self-commitment to fully comply with fire prevention, firefighting, and environmental protection requirements according to the law for warehouses;

3. Documents for Application for Retail Tobacco Product Sales Permit:

a) Application form for Retail Tobacco Product Sales Permit;

b) Copies of Business Registration Certificate or Business Registration Certificate and Tax Identification Number Certificate;

d) Business location documents, including:

- Address, area, and description of the tobacco sales area;

- Copies of documents proving the right to use the business location (ownership, co-ownership, or lease agreement with a minimum term of one year);

- List of temperature and humidity control equipment in the tobacco sales area;

Article 28. Competence and Procedures for Issuing Licenses for Tobacco Product Trading

1. Competence to issue Licenses for Tobacco Product Trading:

a) The Ministry of Industry and Trade issues, reissues, amends, and supplements Distribution Licenses for tobacco products;

b) Departments of Industry and Trade issue, reissue, amend, and supplement Wholesale Licenses for tobacco products;

c) Industrial and Commercial Offices or Economic Departments (specialized agencies under the People's Committees of districts, counties, towns, and provincial cities - hereinafter referred to collectively as Industrial and Commercial Offices) issue, reissue, amend, and supplement Retail Licenses for tobacco products.

2. Procedures for Issuing Licenses for Tobacco Product Trading:

a) A trader applying for a License for Tobacco Product Trading shall prepare two sets of application files in accordance with Article 27 of this Decree, one set to be submitted to the competent authority issuing the license, and the trader retains one set;

c) If the application files are incomplete, within seven working days from the date of receiving the application files from the trader, the licensing authority will issue a written request for the trader to supplement the application files.

3. Establishment and Retention of Licenses for Tobacco Product Trading:

a) Distribution Licenses for tobacco products shall be made in multiple copies: two copies retained by the issuing authority; one copy sent to the enterprise granted the license; one copy sent to the Market Management Department; one copy sent to each Department of Industry and Trade named in the license (business territory) and at the main office location of the enterprise; one copy sent to each supplier of tobacco products or other distribution enterprises named in the license (selling products to the enterprise);

b) Wholesale Licenses for tobacco products shall be made in multiple copies: two copies retained by the issuing authority; one copy sent to the enterprise granted the license; one copy sent to the Ministry of Industry and Trade; one copy sent to the Market Management Sub-department; one copy sent to each supplier of tobacco products or other distribution enterprises named in the license (selling products to the enterprise);

c) Retail Licenses (or retail agency licenses) for tobacco products shall be made in multiple copies: two copies retained by the issuing authority; one copy sent to the trader granted the license; one copy sent to the Department of Industry and Trade; one copy sent to the Market Management Sub-department; one copy sent to each organization or individual producing tobacco products or wholesale enterprises named in the license (selling products to the trader).

4. Distribution Licenses for tobacco products, Wholesale Licenses for tobacco products, and Retail Licenses for tobacco products have a validity period of five years. Thirty days before the expiration date of the license, traders trading in tobacco products must submit an application for renewal if they wish to continue operating. The application procedures for renewal are stipulated in Article 39 of this Decree.

Article 29. Rights and Obligations of Traders Granted Licenses for Tobacco Product Trading

In addition to rights and obligations prescribed by law, traders granted Licenses for Tobacco Product Trading also have the following rights and obligations:

1. To purchase tobacco products from legitimate sources.

2. To organize the circulation and consumption of tobacco products on the market in accordance with the issued License for Tobacco Product Trading.

3. Distribution traders and wholesale traders of tobacco products may only sell tobacco products to traders holding Licenses for Tobacco Product Trading within their own distribution system within the permitted business territory.

5. Wholesale traders of tobacco products may purchase tobacco products from suppliers of tobacco products or distribution traders to sell to retail traders of tobacco products or directly organize retail sales of tobacco products at retail points within the province's jurisdiction.

6. Retail points of distribution traders and wholesale traders must comply with the approved planning of the tobacco product trading network and have the same area as retail points of retail traders of tobacco products.

8. Traders trading in tobacco products must display a valid copy of the issued License for Tobacco Product Trading at their main office, branch offices, representative offices, and business locations.

9. Each trader can only be granted one type of License for Tobacco Product Trading. Traders granted Licenses for Tobacco Product Trading must pay fees and charges as prescribed by the Ministry of Finance.

10. Regularly report business operations according to the guidelines of the competent state management authority that has issued the License for Tobacco Product Trading to the trader in accordance with the provisions of the law.

Article 30. Exporting and Importing Tobacco Products for Commercial Purposes

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

a) State trading must be implemented in the importation of tobacco products;

b) Imported tobacco products must be affixed with imported tobacco product labels 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 Industry and Trade designates enterprises to implement state trading in the importation of tobacco products.

3. Exporting tobacco products must comply with the following principle:

a) Merchants holding a Production License for Tobacco Products, a Distribution License for Tobacco Products, or a Wholesale License for Tobacco Products may export legally sourced tobacco products according to the provisions of this Decree and other relevant laws;

In cases where merchants act as agents to export legally sourced tobacco products from merchants holding a Production License for Tobacco Products, a Distribution License for Tobacco Products, or a Wholesale License for Tobacco Products, the exporting agent must hold one of the three aforementioned licenses.

b) For merchants holding a Production License for Tobacco Products, the quantity of exported tobacco products shall not be deducted from their domestic production quota.

4. Temporary imports, re-exports, temporary exports, and re-imports of tobacco products and tobacco raw materials shall be carried out in accordance with current regulations and guidelines issued by the Ministry of Industry and Trade.

5. The Ministry of Industry and Trade shall provide detailed guidance on the state trading management mechanism for imported tobacco products.

Article 31. Importing Tobacco Products for Non-Commercial Purposes

1. Individuals entering Vietnam's territory may carry tobacco products not exceeding the permitted standard baggage allowance as stipulated by the Government.

2. Diplomatic missions, consular offices, and international organizations in Vietnam, if necessary, may import tobacco products for their own use in accordance with Vietnamese laws.

Article 32. Prevention and Combating Smuggling and Trade Fraud

2. Enterprises producing and trading in tobacco products have the obligation to cooperate with competent state agencies in preventing and combating smuggling of tobacco products and selling counterfeit tobacco products.

Chapter VI
MANAGEMENT OF EQUIPMENT, RAW MATERIALS,

CIGARETTE PAPER AND LABELS FOR TOBACCO PRODUCTS

Article 33. Management of Specialized Machinery and Equipment for Tobacco Production

1. Organizations and individuals without a Production License for Tobacco Products or a Processing License for Tobacco Raw Materials shall not use specialized tobacco machinery and equipment in any form.

2. The transfer, export, re-export, and liquidation of specialized machinery and equipment for tobacco production and processing by tobacco manufacturing enterprises and tobacco raw material processing enterprises shall be conducted in accordance with relevant laws and shall comply with the following provisions:

a) Enterprises may only transfer specialized machinery and equipment still in usable condition to enterprises holding a Production License for Tobacco Products or a Processing License for Tobacco Raw Materials in the appropriate production field, which has been approved by the competent state authority, or export or re-export them abroad;

b) Machinery and equipment that are no longer in usable condition or are liquidated due to deep investment must be destroyed under the supervision of a Supervision and Destruction Team established by the Ministry of Industry and Trade.

3. Enterprises must prepare documentation for the transfer, export, re-export, or liquidation of machinery and equipment to be liquidated and submit a request to the Ministry of Industry and Trade. Within fifteen days of receiving the enterprise's document, the Ministry of Industry and Trade will respond to the enterprise or establish a Supervision and Destruction Team for the destruction of equipment.

4. After transferring, exporting, re-exporting, or liquidating specialized tobacco machinery and equipment, enterprises must report the results to the Ministry of Industry and Trade.

5. The Ministry of Industry and Trade shall take the lead and coordinate with relevant functional agencies to organize inspections, identify, and handle machinery and equipment for tobacco products without legitimate sources or those not destroyed in accordance with regulations.

Article 34. Importation of Machinery and Equipment for the Tobacco Industry

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

a) Possess a Production License for Tobacco Products and a Processing License for Tobacco Raw Materials;

b) The imported machinery and equipment for the tobacco industry must be compatible with the production capacity of the enterprise as announced by the Ministry of Industry and Trade;

c) Obtain the investment orientation approval from the Ministry of Industry and Trade (if applicable).

2. Enterprises shall submit one set of importation documents for machinery and equipment for the tobacco industry including the investment orientation approval document, project, and related approval documents (if applicable), and a request to the Ministry of Industry and Trade for permission to import. Within ten working days from the date of receipt of the complete set of documents from the enterprise, the Ministry of Industry and Trade will issue a response document to the enterprise, stating the reasons if the application is rejected.

3. The Ministry of Industry and Trade shall establish and promulgate a list of machinery and equipment for the tobacco industry.

Article 35. Handling of Illegally Acquired Machinery and Equipment for Producing Tobacco Products

1. Machinery and equipment for the tobacco industry shall be deemed illegal in the following cases:

a) Imported before the issuance of Directive No. 13/1999/CT-TTg dated May 12, 1999 by the Prime Minister on rectifying and restructuring the tobacco industry's production and business without valid importation documents;

b) Imported after the issuance of Directive No. 13/1999/CT-TTg but without valid importation documents and approval from the Ministry of Industry and Trade (or the former Ministry of Industry).

2. Illegally acquired machinery and equipment for the tobacco industry shall be confiscated and handled according to the law. The disposal of confiscated machinery and equipment for the tobacco industry shall be carried out according to current regulations, only permitted to be resold to enterprises possessing a Production License for Tobacco Products or a Processing License for Tobacco Raw Materials that have been authorized by competent state agencies, or destroyed.

3. The Ministry of Industry and Trade shall take the lead and coordinate with the Ministry of Public Security and the Ministry of Finance to organize inspections, detections, and handling of machinery and equipment for producing tobacco products without legitimate origins.

Article 36. Management of Importation of Tobacco Raw Materials and Cigarette Paper

1. Tobacco raw materials and cigarette paper fall under the specialized management of the Ministry of Industry and Trade.

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

a) Possess a Production License for Tobacco Products or a Processing License for Tobacco Raw Materials;

b) The imported tobacco raw materials and cigarette paper must be commensurate with the production volume of the enterprise (for domestic consumption production);

c) Have an export production contract or export processing contract for tobacco products or raw materials (for export production or export processing);

d) Obtain approval from the Ministry of Industry and Trade.

3. Importation of tobacco raw materials and cigarette paper for domestic consumption production of tobacco products:

a) Before November 15 each year, enterprises producing tobacco products and tobacco filament processing enterprises must submit registration reports on their demand for importing tobacco raw materials and cigarette paper for the next year's domestic consumption production and filament processing to the Ministry of Industry and Trade;

The report must clearly state the production and business situation, production volume, importation of tobacco raw materials and cigarette paper in the reporting year, and the projected production volume and demand for tobacco raw materials and cigarette paper in the next year.

b) Based on the production volume, reports from enterprises producing tobacco products and tobacco filament processing enterprises, and the domestic supply capacity, the Ministry of Industry and Trade will issue a notification of import quotas to enterprises and relevant agencies before December 15 each year;

c) The total tariff quota for tobacco raw materials and the allocation of import quotas for each enterprise will be publicly disclosed on the Ministry of Industry and Trade’s website;

d) Imported tobacco raw materials and cigarette paper can only be used for producing tobacco products and filaments in accordance with the registered purpose, and cannot be sold or consumed on the market.

4. Importation of tobacco raw materials and cigarette paper for export production or export processing of tobacco products:

a) Only enterprises with a Production License for Tobacco Products are allowed to import tobacco raw materials and cigarette paper for export production or export processing of tobacco products;

b) Enterprises shall submit export production contracts or export processing contracts for tobacco products and requests for importing tobacco raw materials and cigarette paper to the Ministry of Industry and Trade. Based on the enterprise's request, production capacity, and related documents, within seven days from the date of receiving all documents and letters from the enterprise, the Ministry of Industry and Trade will issue a notification of the import plan to enterprises and relevant agencies.

5. Importation of tobacco raw materials for export processing or export processing of tobacco raw materials:

a) Only enterprises with a Processing License for Tobacco Raw Materials are allowed to import tobacco raw materials for export processing or export processing of tobacco raw materials;

b) Enterprises shall submit export processing contracts for tobacco raw materials or export processing contracts and requests to the Ministry of Industry and Trade. Based on the enterprise's request, production capacity, and related documents, within seven days from the date of receiving all documents and letters from the enterprise, the Ministry of Industry and Trade will issue an approval or rejection letter for the enterprise to execute the contract.

6. The Ministry of Industry and Trade shall promulgate forms for registering the demand for cigarette paper, tobacco filaments, and tobacco leaf raw materials.

Article 37. Tobacco Product Stamps

1. Tobacco products produced for domestic consumption must be affixed with stamps on their packaging in accordance with the current regulations of the State.

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

3. Tobacco product stamps issued for domestic consumption in Vietnam shall only be granted to enterprises holding a Production License for tobacco. The annual quantity of stamps granted to an enterprise may not exceed the permitted production volume.

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

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

Chapter VII
AMENDMENT, SUPPLEMENTATION, AND REISSUANCE OF CERTIFICATES OF ELIGIBILITY FOR INVESTMENT IN TOBACCO PLANTATION, LICENSES FOR PURCHASE AND SALE OF TOBACCO RAW MATERIALS, LICENSES FOR PROCESSING TOBACCO RAW MATERIALS, LICENSES FOR PRODUCTION OF TOBACCO PRODUCTS, LICENSES FOR PURCHASE AND SALE OF TOBACCO PRODUCTS

GIẤY PHÉP ĐẦU TƯ TRỒNG CÂY THUỐC LÁ, GIẤY PHÉP MUA BÁN NGUYÊN LIỆU THUỐC LÁ

GIẤY PHÉP CHẾ BIẾN NGUYÊN LIỆU THUỐC LÁ,

GIẤY PHÉP SẢN XUẤT SẢN PHẨM THUỐC LÁ, GIẤY PHÉP

MUA BÁN SẢN PHẨM THUỐC LÁ

Article 38. Amendment, supplementation, and reissuance of certificates of eligibility for investment in tobacco plantation, licenses for purchase and sale of tobacco raw materials, licenses for processing tobacco raw materials, licenses for production of tobacco products, licenses for purchase and sale of tobacco products

1. In cases where there are changes to the contents of the Certificate of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products, organizations and individuals must submit one set of application files to the licensing authority.

2. Documents include:

a) A request for amendment and supplementation;

b) A copy of the Certificate of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products that have been issued;

c) Documents proving the need for amendment and supplementation.

3. Procedures and formalities for issuing supplementary and amended licenses and certificates:

a) Organizations and individuals engaged in tobacco business submit one set of application files requesting amendment and supplementation of the Certificate of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products to the competent state agency;

b) Within fifteen working days from the date of receipt of complete and valid application files, the competent authority will examine and issue supplementary and amended Certificates of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products. If the organization or individual does not meet the conditions stipulated by the regulations, the licensing authority will issue a written response refusing the license and clearly stating the reasons.

Article 39. Reissuance of Certificates of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products

1. In cases where the Certificate of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products have expired. Thirty days before the expiration date of the license, organizations and individuals must submit application files requesting reissue of the license if they continue to operate. The application procedures, authorities, and formalities for reissuance are the same as those for new issuance.

2. In cases where the Certificate of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products are lost, destroyed entirely or partially, torn, damaged, or burned, the licensed organization or individual must prepare and submit one set of application files requesting reissue, including:

a) A request for reissue;

b) A copy of the Certificate of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products that have been issued (if available).

3. Procedures and formalities for reissuing licenses:

a) Organizations and individuals engaged in tobacco business submit application files requesting reissue of the Certificate of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products to the competent state agency;

b) Within fifteen working days from the date of receipt of complete and valid application files, the competent authority will examine and reissue the Certificate of Eligibility for Investment in Tobacco Plantation, Licenses for Purchase and Sale of Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Production of Tobacco Products, Licenses for Purchase and Sale of Tobacco Products. If the organization or individual does not meet the conditions stipulated by the regulations, the licensing authority will issue a written response refusing the license and clearly stating the reasons.

Chapter VIII
FEES AND CHARGES FOR LICENSE ISSUANCE AND REPORTING REGIME

Article 40. Fees and Charges for Issuing Licenses

Organizations and individuals engaged in tobacco business that are issued Certificates of Eligibility for Investment in Cultivation of Tobacco Plants, Licenses for Trading in Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Producing Tobacco Products, and Licenses for Trading in Tobacco Products must pay fees and charges as prescribed by the Ministry of Finance.

Article 41. Reporting Requirements

1. The Department of Industry and Trade shall report to the Ministry of Industry and Trade on the issuance of Certificates of Eligibility for Investment in Cultivation of Tobacco Plants, Licenses for Trading in Tobacco Raw Materials, Wholesale Licenses for Tobacco Products, Retail Licenses for Tobacco Products, and the operation of tobacco products by traders within their jurisdiction.

2. The Office of Industry and Trade shall report to the Department of Industry and Trade on the trading situation and issuance of Retail Licenses for Tobacco Products by traders within their jurisdiction.

3. Suppliers of tobacco products must submit statistical reports on production volume, types of tobacco products produced and traded (through distribution systems, wholesale, retail) to the competent authority that has issued the license and to the Department of Industry and Trade where the trader's main office is located.

4. Traders engaged in distribution, wholesale, and retail of tobacco products must report their trading situation to the competent authority that has issued the license and to the Industry and Trade Office where the trader's main office is located.

5. Investors in cultivation of tobacco raw materials, traders in tobacco raw materials, and traders engaged in distribution, wholesale, and retail of tobacco products must report their trading situation to the competent authority that has issued the license and to the Industry and Trade Office where the trader's main office is located.

6. Enterprises producing tobacco products must report to the Ministry of Industry and Trade and the Ministry of Finance on the production and trading situation of tobacco products including: production volume, export volume, import volume, consumption volume, selling price, special consumption tax, value-added tax payable for each product brand.

7. Enterprises producing tobacco products and processing tobacco raw materials must report to the Ministry of Industry and Trade on the importation and use of specialized machinery and equipment, tobacco raw materials, imported cigarette paper, and the production and trading situation of processed tobacco raw materials during the period.

8. The Ministry of Industry and Trade shall provide detailed guidance on reporting requirements and forms for the Department of Industry and Trade, the Office of Industry and Trade, enterprises producing tobacco products, processing tobacco raw materials, trading in tobacco raw materials, investing in tobacco raw materials, suppliers of tobacco products, and traders engaged in distribution, wholesale, and retail of tobacco products.

Chapter IX
VIOLATIONS AND PENALTIES FOR VIOLATIONS

Article 42. Violations of Legal Provisions on Tobacco Business

1. Producing, trading in products, trading in raw materials, processing raw materials without a license; investing in cultivation of tobacco plants without a Certificate of Eligibility.

2. Producing, trading, importing, storing, transporting smuggled tobacco products (except when permitted by authorized state agencies for re-export), counterfeit tobacco products, tobacco products bearing unregistered trademarks in Vietnam, failing to meet national technical standards for tobacco quality, substandard or expired products, incorrect labeling on packaging, failure to affix labels as required by law.

3. Using, disposing, importing, exporting, re-exporting, transferring specialized machinery and equipment for tobacco production not in accordance with this Decree and relevant laws.

4. Exceeding the permitted production volume for tobacco products.

5. Failing to comply with legal provisions on hygiene for tobacco products and prevention of the harmful effects of tobacco.

6. Trading in, transferring tax stamps for tobacco products.

7. Illegally trading in, transferring cigarette paper.

8. Selling tobacco at government offices, schools, hospitals, cinemas, cultural performance venues, sports stadiums, and other public places as stipulated by law.

9. Other violations as prescribed by law.

Article 43. Revocation of Certificates of Eligibility for Investment in Tobacco Plant Cultivation, Licenses for Buying and Selling Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Producing Tobacco Products, and Licenses for Buying and Selling Tobacco Products.

Clause 1. Organizations and individuals shall be subject to revocation by competent authorities of Certificates of Eligibility for Investment in Tobacco Plant Cultivation, Licenses for Buying and Selling Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Producing Tobacco Products, and Licenses for Buying and Selling Tobacco Products in cases of violation of investment, business, and processing conditions of tobacco raw materials; production and sale of tobacco products, and other violations as prescribed by law.

Clause 2. Within one year from the date of issuance of Certificates of Eligibility for Investment in Tobacco Plant Cultivation, Licenses for Buying and Selling Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Producing Tobacco Products, and Licenses for Buying and Selling Tobacco Products, if operations do not commence, such certificates or licenses will be revoked.

Article 44. Handling of Violations

Organizations and individuals who violate laws on tobacco business shall be disciplined, administratively sanctioned, or criminally prosecuted depending on the nature and degree of violation, and must compensate for damages as prescribed by law.

Chapter X
STATE MANAGEMENT RESPONSIBILITIES

Clause 1. Submit to the Government and the Prime Minister for promulgation or promulgate within its authority normative legal documents on tobacco business.

Clause 2. Guide model applications for Certificates of Eligibility for Investment in Tobacco Plant Cultivation, Licenses for Buying and Selling Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Producing Tobacco Products, and Licenses for Buying and Selling Tobacco Products; guide reporting systems and formats; list specialized equipment for tobacco.

Clause 3. Take the lead and coordinate with relevant ministries, sectors, and localities to develop plans for organizing and restructuring the tobacco industry; manage the establishment, division, separation, merger, and dissolution of tobacco product manufacturing enterprises, tobacco raw material and auxiliary material processing enterprises in accordance with legal provisions.

Clause 4. Implement state management responsibilities over the tobacco industry in investment and construction in accordance with legal provisions and this Decree.

Clause 5. Develop and promulgate National Technical Standards for tobacco raw materials; guide and inspect quality standards for tobacco.

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

Clause 7. Specify production volumes of tobacco products for tobacco product manufacturing enterprises during each period.

Clause 8. Submit to the Prime Minister for consideration and approval to produce foreign-branded tobacco products for consumption in Vietnam.

Clause 9. Take the lead and coordinate with relevant ministries and sectors to guide state trade management mechanisms in importing tobacco products and temporary importation, re-exportation, temporary exportation, and re-importation of tobacco products and raw materials.

Clause 10. Take the lead and coordinate with relevant state agencies to organize inspections, detection, and handling of tobacco machinery and equipment without legitimate sources or not destroyed as required.

Clause 11. Take the lead and coordinate with state agencies to organize inspections and handling of organizations and individuals violating tobacco product business under this Decree.

Clause 12. Conduct inspections, handle complaints and denunciations, and deal with violations in tobacco business.

Article 46. Responsibilities of the Ministry of Finance

1. Organize the printing, issuance, and distribution of stamps to enterprises in accordance with this Decree and current regulations.

2. Guide the establishment and utilization of the Fund for Growing and Processing Tobacco Raw Materials.

Article 47. Responsibilities of the Ministry of Health

1. Guide the registration and announcement of Enterprise Standards and National Technical Regulations concerning cigarette tobacco.

2. Coordinate with the Ministry of Industry and Trade in inspecting, supervising, and handling violations of laws related to preventing and controlling the harmful effects of tobacco in tobacco business activities.

Article 48. Responsibilities of Ministries, Agencies Equivalent to Ministries, and Government Agencies

Within their respective authorities, ministries, agencies equivalent to ministries, and government agencies shall have the responsibility to coordinate with the Ministry of Industry and Trade to implement state management over tobacco business activities, promote and disseminate the implementation of this Decree.

Article 49. Responsibilities of People's Committees of Provinces and Central Cities

1. Implement state management functions in the tobacco industry and resolve issues within their authority on the managed territory.

2. Participate in coordinating with the Ministry of Industry and Trade to implement policies for restructuring tobacco enterprises on the managed territory.

Chapter XI
IMPLEMENTING PROVISIONS

Article 50. Transitional Provisions

1. Organizations and individuals who have been issued Certificates of Eligibility for Trading in Tobacco Raw Materials, Certificates of Eligibility for Processing Tobacco Raw Materials, Licenses for Producing Tobacco Products, and Licenses for Trading in Tobacco Products according to Decree No. 119/2007/NĐ-CP dated July 18, 2007 of the Government on the Production and Trading of Tobacco, and whose certificates or licenses are still valid, do not need to reapply for certificates or licenses. Upon expiration of the validity period stated in the certificates or licenses, they must apply for new licenses in accordance with the provisions of this Decree.

2. For organizations and individuals who have not yet been issued Certificates of Eligibility for Investment in Growing Tobacco Plants, Licenses for Trading in Tobacco Raw Materials, Licenses for Processing Tobacco Raw Materials, Licenses for Producing Tobacco Products, and Licenses for Trading in Tobacco Products, they must apply for licenses in accordance with the provisions of this Decree.

Article 51. Effective Date

1. This Decree takes effect from August 15, 2013.

2. Abolish Decree No. 119/2007/NĐ-CP dated July 18, 2007 of the Government on the Production and Trading of Tobacco from the date this Decree takes effect.

Article 52. Implementation Organization and Enforcement Responsibility

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

2. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the central government shall be responsible for enforcing this Decree./.