Circular No. 39/2012/TT-BCT detailing a number of articles of the Government's Decree No. 94/2012/ND-CP on liquor production and trading

Article 1. Scope of regulation burned, lost or revoked or expires. 44 Issue nos 07-08/Januarv 2013 (Cong Bao nos 31-32/January 20, 2013) AI·ticle 4. Liquor regulations and testing the quality of liquor yeast, sugar content, alcohol concentration, etc.); Liquor produ cts must satisfy current Vietnam ese regulations. The applicable di A statement of the area and plans of the regulation is Regulation QCVN 6-3: 2010/ workshop, warehouse, offices, and auxilia1y BYT promulgated together with Circular No. constr11ctions; 45/2010/TT-BYT ofDecember22, 2010, of the e/ Copies of the relevant and valid diplomas Ministry of Health. and ce1tificates of qualifications, the labor contracts signed with technicians holding Chapter II key positions; the written commitment of the LIQUOR PRODUCTION employer that the employees and workers in the facto1y are physically fit for food production

Article 5. Dossier of application for a without suffering any infectious disease; license for industrfal production of liquor f/ Copies of the receipt of the announcement 1. An applying enterplise shall compile a of confo1mity and the ce1tificate of satisfaction dossier of application for a license for industrial of food safety conditions; production ofliquor in two sets, sending one set to the licensing agency and keeping the other, g/ A list ofliquor products that the ente1plise each comprising: plans to produce, enclosed with copies of their labels; a/ An application for a license for industrial production of liquor (made according to the h/ Copies of the decision approving the fo1m in Appendix 1 to this Circular); repo1t on assessment of environmental impacts b/ Copies ofthe investment license, ente1plise or the ce1tificate of registr·ation of the written registration ce1tificate or business registration commitment on environment protection granted certificate (for the provision of liquor or by a competent agency. alcoholic drinks in accordance with law and 2. For new projects consistent with the production process) and the Before liquor products are marketed, the ce1tificate of tax identification number; ente1p rise that applies for a license for liquor c/ A written description of the production production shall submit to the licensing agency process, physical fac ilities (workshops) , copies of the ce1tificate of label registr·ation, machine1y and equipment (a list of specialized the receipt of the announcement of confo1mity machine1y and equipment and their capacities and the certificate of satisfaction of food safety serving the main stages such as boiling, conditions. fe1mentation, distillation, preparation, extraction, etc., consistent with the production stages and Article 6. Small-scale production ofliquor scale of the ente1prise; devices for measuring for sale Issue nos 07-08/Januarv 2013 45 (Cong Bao nos 31-32/January 20, 2013) 1. Organizations and individuals engaged sending one set to the People's Committee of the in the small-scale production of liquor being commune or ward where the small-scale liquor members ofliquor villages are exempted from facility is located and keeping the other. applying for a license for small-scale production A dossier of application for registration ofliquor for sale. Organizations and individuals for small-scale production of liquor for sale that represent a liquor village shall apply for a to ente1p rises licensed to produce liquor for license for small-scale liquor production for further processing comprises: their liquor village, and take responsibility for the liquor production conditions applicable to - The written registration for small-scale all members of the liquor village. production of liquor for sale to ente1prises licensed to p rodu ce liquor for further 2. The applicant shall compile a dossier processing, made according to the form in of application for a license for small-scale Appendix 16; production ofliquor for sale in two sets, sending - A copy of the purchase and sale contract one set to the licensing agency and keeping the between the applicant and the enterprise other, each comprising: licensed to produce liquor. - An application for a license for small-scale 2. Order and procedure for granting a ce1tificate production of liquor for sale (according to the of registration of small-scale production of fo1m in Appendix 10 to this Circular); liquor for sale to ente1p1ises licensed to produce - A valid copy of the business registration liquor for further processing: certificate, certificate of tax identification number or enterprise registration certificate; a/ Within 7 working days after receiving a complete and valid dossier, the People's - Copies of the receipt of the announcement Committee of the commune or ward where of confo1mity and the ce1tificate of satisfaction the facility is located shall consider and grant of food safety conditions; a certificate of registration of small-scale - A list of liquor products that the applicant production of liquor for sale to ente1prises plans to produce, enclosed with copies of their licensed to produce liquor for fuither processing, labels. or issue a written reply stating the reason for refusal to grant the ce1tificate;

Article 7. Small-scale production of liquor for sale to ente1plises licensed to produce liquor b/ If the dossier is invalid, within 3 working for fu1ther processing days after receiving the dossier, the ce1tificate- granting agency shall send a written request for 1. An applicant for registration for small- supplementation. scale production ofliquor for sale to ente1plises licensed to produce liquor for fuither processing 3. The ce1tificate of registration of small- shall compile a dossier ofapplication in two sets, scale production ofliquor for sale to ente1prises 46 Issue nos 07-08/Januarv 2013 (Cong Bao nos 31-32/January 20, 2013) licensed to produce liquor for further processing in Appendix 19 to this Circular. is valid for 5 years.

Article 9. Liquor production volume AI·ticle 8. Grant and prese1vation of licenses Liquor producers may not produce liquor for liqu or production and certificates of in excess of the production capacity and registration of small-scale production ofliquor inconsistent with the types of liquor products for sale to enterprises licensed to produce liquor licensed by competent agencies. for fmther processing Chapter III 1. A license for industrial production of liquor are granted in 4 copies: 2 copies are LIQUOR TRADING kept at the licensing agency, 1 copy sent to

Article 10. Dossier of application for a the applicant and 1 copy sent to the Ministiy of Industiy and Trade ( applicable to licenses license for liquor distiibution granted by the provincial-level Departments The enterprise that applies for a license for of Industiy and Trade according to the fo1m liquor disti·ibution shall compile a dossier in in Appendix 7 to this Circular) or to the two sets, sending one set to the licensing agency provincial-level Depa1tment of Industiy and and keeping the other, each comprising: Trade (applicable to licenses granted by the 1. An application for a license for liquor Ministiy oflndustiy and Trade according to the disti·ibution (according to the fo1m in Appendix fonn in Appendix 4 to this Circular). 27 to this Circular). 2. A license for small-scale production of 2. Copies of the investment certificate, liquor for sale are granted in 4 copies: 2 copies enterprise registration ce1tificate or business are kept at the licensing agency, 1 copy sent to registration certificate (for the wholesale of the applicant and 1 copy sent to the provincial- alcoholic drinks or liquor trading) and the level Department of Industry and Trade certificate of tax identification number. managing the locality. The fo1m of the license is provided in Appendix 13 to this Circular. 3. The documents on the business location, including: 3. The ce1tificate of registration of small- a/ The address, area and description of the scale production ofliquor for sale to enterprises liquor shop; licensed to produce liquor for ftnther processing are granted in 4 copies: 2 copies are kept b/ Copies of the documents proving the right at the licensing agency, 1 copy sent to the to use the business location ( ownership or co- applicant and 1 copy sent to the provincial-level ownership or renting for at least 1 year); Depaitment of Industiy and Trade managing the cl A list of devices for testing and adjusting locality. The fonn of the ce1tificate is provided the temperanire and humidity in the liquor shop Issue nos 07-08/Januarv 2013 47 (Cong Bao nos 31-32/January 20, 2013) (in order to ensure that the shop is always airy 8. Documents related to means of transport, and cool and liquor products are kept away including copies of the papers proving the from direct sunlight; right to use means of t1·ansp01t (ownership or co-ownership under a joint venture conti·act or di The wiitten commitment of the enterprise capital contiibution conti·act or a rent conti·act to assure confo1mity with all requirements of fire prevention and fighting and environmental that suits the business scale of the enterprise with a tenn of at least 1 year); there must be protection for business locations as prescribed at least 3 vehicles each having a tonnage of at by law. least 500 kg, and meeting the requirement of 4. The report on business results of the ensuring the quality of liquor products dming enterprise: transpo1tation. a/ The report on business results of the 9. Documents on financial capacity: The previous 3 years, enclosed with a list of the financial capacity must ensure n01mal operation purchase and sale contracts and their copies ofthe entire distii bution system of the enterplise signed with other liquor producers and liquor (having a wiitten ce1tification of at least one distributors and the taxes paid; billion Vietnam dong, granted by a bank). b/ The fonn of sale and method of managing 10. Documents related to the warehouse (or the distribution system. warehousing area), including: 5. A list of traders, copies of the investment a/ Documents proving the light to use the certificates, enterprise registration ce1tificates warehouse (ownership or co-ownership under or business registration ce1tificates (for the a joint venture conti·act or capital contribution wholesale of alcoholic d1inks or liquor trading) conti·act of the enterplise; or a rent conti·act with and the ce1tificates of tax identification number a tenn of at least 1 year); the area must reach at and the licenses for liquor trading (if having least 300 m2, or the total space must reach at least already traded in liquor) of the enterprises that 1,000 m3, and meet the requirement of ensuring belong or will belong to the liquor distiibution the quality of liquor products in storage; system in at least 6 provinces (each province b/ The written commitment of the enterplise must have at least 3 liquor wholesalers). to assure confonnity with all requirements of fire prevention and fighting and environmental 6. Copies of the documents of inti·oduction protection for warehouses as prescribed by and purchase and sale conti·acts of other liquor law. producers or liquor distributors (specifying the areas and liquor products to be ti·aded in). 11 . Copies of charge and fee receipts as prescribed by the Minist1y of Finance. 7. Copies ofthe ce1tificates of announcement of confonnity or certificates of standards of Article 11. Dossier of application for a liquor products to be ti·aded in. license for liquor wholesale 48 Issue nos 07-08/Januarv 2013 (Cong Bao nos 31-32/January 20, 2013) The enterprise that applies for a license for purchase and sale contracts and their copies liquor wholesale shall compile a dossier in two signed with other liquor producers and liquor sets, sending one set to the licensing agency and distributors, and the taxes paid; keeping the other, each comp1ising: b/ The form of sale and the method of 1. An application for a license for liquor managing the wholesaling system. wholesale, made according to the form in 5. A list of traders and copies of the

Appendix 29 to this Circular. investment ce1tificates, enterprise registration 2. Copies of the investment certificate, certificates or business registration ce1tificates enterprise registration certificate or business (for the wholesale of alcoholic drinks or liquor registration certificate (for the wholesale of trading) and the ce1tificates of tax identification alcoholic drinks or liquor trading) and the number, and the licenses for liquor trading ce1tificate of tax identification number. (if having already traded in liquor) of the 3. Documents on the business location, enterprises that belong or will belong to the including: liquor wholesale system (there must be at least 3 liquor retailers). a/ The address, area and description of the liquor trading area; 6. Copies of the documents of introduction b/ Copies ofthe documents proving the right and purchase and sale contracts with liquor to use the business location (ownership or co- producers or liquor distributors (specifying the ownership or renting for at least 1 year); areas and liquor products to be traded in). c/ The list of devices for testing and 7. A copy of the ce1tificate of announcement adjusting the temperanire and humidity in the of confo1mity or the certificate of standards of liquor trading area (in order to ensure that the liquor products to be traded in. trading area is always aily and cool and liquor products are kept away from direct sunlight); 8. Documents related to means oftranspo1t, including copies of the papers proving the d/ The written commitment of the enterplise right to use means of transport (ownership or to assure confo1mity with all requirements of co-ownership under a joint venture contract fire prevention and fighting and environmental or capital contribution contract; or a rent protection for business locations as prescribed by law. contract that suits the business scale of the enterprise with a tenn of at least 1 year); there 4. The repo1t on business results and plan must be at least 1 vehicle with a tonnage of at of the enterprise: least 500 kg, and meeting the requirement of a/ The report on business results of the ensming the quality of liquor products during previous 3 years, enclosed with a list of transportation. Issue nos 07-08/Januarv 2013 49 (Cong Bao nos 31-32/January 20, 2013) 9. Documents proving the :financial capacity: registration certificate (for the wholesale of The financial capacity must ensure the n01mal alcoholic drinks or liquor trading) and the operation of the entire wholesaling system of ce1tificate of tax identification number. the enterprise (having a written ce1tification 3. The documents on the business location, of at least 300 million Vietnam dong granted including: by a bank). a/ The address, area, and description of the 10. Documents related to the warehouse, liquor shop; including: b/ The copies of the documents proving the a/ Documents proving the right to use the right to use the business location (ownership or warehouse (ownership or co-ownership under co-ownership or renting for at least 1 year); a joint venture contract or capital contribution contract; or a rent contract with a te1m of at least c/ The list of devices for testing and 1 year); the area must reach at least 50 m2, or adjusting the temperanire and humidity in the 3 the total space must reach at least 150 m and , liquor shop (in order to ensure that the liquor meet the requirement of ensming the quality of shop is always any and cool and liquor products liquor products in storage; are kept away from direct sunlight; b/ The written commitment ofthe enterprise d/ The written commitment of the trader to to assure confo1mity with all requirements of assure confo1mity to all requirements of fire fire prevention and fighting and environmental prevention and fighting and environmental protection for warehouses as prescribed by protection for business locations as prescribed law. by law. 11. Copies of charge and fee receipts as 4. Copies of the documents of introduction prescribed by the Ministiy of Finance. and purchase and sale contracts with liquor wholesalers (specifying liquor products to be Article 12. Dossier of application for a traded in). license for liquor retail The liquor retailer applying for a license 5. A copy of the ce1tificate of announcement for liquor retail shall compile a dossier in two of confo1mity or the ce1tificate of standards of sets, sending one set to the licensing agency and liquor products to be ti·aded in. keeping the other, each comprising: 6. Documents related to the warehouse, 1. An application for a license for liquor including: retail, made according to the fo1m in Appendix a/ Documents proving the right to use the 3 1 to this Circular. warehouse (ownership or co-ownership under 2. Copies of the investment certificate, a joint venture contract or capital conti·ibution enterprise registration ce1tificate or business contract; or a rent te1m of at least 1 year) 50 Issue nos 07-08/Januarv 2013 (Cong Bao nos 31-32/January 20, 2013) meeting the requirement of ensuring the quality agency; 1 copy kept by the licensed enterprise; of liquor products in storage; I copy sent to the Minist1y of Industly and b/ The written commitment of the trader Trade; I copy sent to the Sub-Department of to assure conf01mity with all requirements of Market Management; and I copy sent to each fire prevention and fighting and environmental liquor producer or liquor distributor listed in the protection for warehouses as prescribed by license (that sells liquor to the enterprise). law. 3. For licenses for liquor retail: 7. Copies of charge and fee receipts as a/ The fo1m of the license for liquor retail is prescribed by the Minist1y of Finance. provided in Annex 32 to this Circular; b/ The license for liquor retail is made in Article 13. Making and keeping licenses many copies: 2 copies are kept by the licensing for liquor trading agency; 1 copy kept by the licensed ti·ader; 1 1. For licenses for liquor distribution: copy sent to the provincial-level Department a/ The form of the license for liquor of Industiy and Trade; 1 copy sent to the Sub- distribution is provided in Appendix 28 to this Department of Market Management; and 1 Circular; copy sent to each liquor producer or liquor wholesaler listed in the license (that sells liquor b/ The license for liquor distribution is made to the trader). into many copies: 2 copies are kept by the licensing agency; 1 copy kept by the licensed Chapter IV enterprise; 1 copy sent to the Department of GRANT OF MODIFIED AND Market Management; 1 copy sent to each SUPPLEMENTED LICENSES, RE- provincial-level Depa1tment of Industry and GRANT OF LICENSES FOR LIQUOR Trade listed in the license (in charge of the PRODUCTION, LICENSES FOR trading area) and the locality in which the SMALL-SCALE PRODUCTION OF enterprise is headquaitered; and 1 copy sent LIQUOR FOR SALE, CERTIFICATES to each liquor producer or liquor distributor OF REGISTRATION OF SMALL-SCALE listed in the license (that sells liquor to the PRODUCTION OF LIQUOR FOR SALE enterprise). TO ENTERPRISES LICENSED TO 2. For licenses for liquor wholesale: PRODUCE LIQUOR FOR FURTHER PROCESSING, AND LICENSES FOR a/ The form of the license for liquor LIQUOR TRADING wholesale is provided in Appendix 30 to this Circular; Article 14. Grant of modified and b/ The license for liquor wholesale is made in supplemented licenses for industi·ial production many copies: 2 copies are kept by the licensing of liquor, licenses for small-scale production Issue nos 07-08/Januarv 2013 51 (Cong Bao nos 31-32/January 20, 2013) of liquor for sale, certificates of registration for further processing, or license for liquor of small-scale production of liquor for sale distribution, wholesale or retail (according to to enterprises licensed to produce liquor for the fo1m in Appendix 6, 9, 15, 21 , 35, 36 or 37 further processing, and licenses for liquor to this Circular) . In case ofrefusal, it shall issue distribution, wholesale or retail a written reply clearly stating the reason; 1. When wishing to change the content of b/ If the dossier is invalid, within 3 working the license for industrial production of liquor, days after receiving the dossier, the agency in the license for small-scale production ofliquor charge of granting modified and supplemented for sale, the ce1tificate of registration of small- licenses and ce1tificates shall send a written scale production ofliquor for sale to enterprises request for supplementation. licensed to produce liquor for ftnther processing, Article 15. Re-grant oflicenses for industrial or the license for liquor distribution, wholesale production of liquor, licenses for small-scale or retail, an organization or individual shall production of liquor for sale, certificates of compile a dossier in two sets, sending one set registration of small-scale production ofliquor to a competent state management agency and for sale to enterprises licensed to produce liquor keeping the other. for fu1ther processing, and licenses for liquor 2. A dossier comprises: distribution, wholesale or retail a/ An application for modification and 1. When the license or ce1tificate expires: supplementation ( according to the form in The organization or individual shall sub1nit

Appendix 3, 11, 17 or 33 to this Circular); a dossier of application for the re-grant of the b/ A copy of the granted license or license (including the license for industrial certificate; production of liquor, license for small-scale c/ The documents proving the need for the production of liquor for sale and license for modification and supplementation. liquor distribution, wholesale or retail) or the certificate of registration of small-scale 3 . Order and procedure for granting a production of liquor for sale to enterprises modified and supplemented license licensed to produce liquor for ftnther processing a/ Within 10 working days after receiving a at least 30 days prior to the date of expiration. complete and valid dossier, the competent state The dossier, competence, order and procedure agency shall consider and grant the modified for the re-grant are similar to those applicable and supp lemented license for indu strial to the new grant. production of liquor, license for small-scale production of liquor for sale, certificate of 2. When the license or certificate is lost, registration of small-scale production of liquor partly or completely damaged, tom or burnt: for sale to ente1plises licensed to produce liquor a/ The licensed organization or individual 52 Issue nos 07-08/Januarv 2013 (Cong Bao nos 31-32/January 20, 2013) shall compile a dossier ofapplication for the re- or ce1tificate shall send a wiitten request for grant in two sets, sending one set to a competent supplementation. state management agency and keeping the other, each comprising: ChapterV - An application for the re-grant (according THE REPORTING REGIME to the fonn in Appendix 2, 12, 18 or 34 to this Article 16. The repo1t ing regime Circular); - The original or a copy of the granted 1. Before Janua1y 31 every year, liquor license or ce1tificate (if available); producers and traders shall send repo1ts on the statistics of the quantity and types of liquor b/ Depending on the preserved dossier and products produced and traded in (within their the submitted dossier of application for the re- distribution and wholesaling system) in the grant, the licensing agency shall re-grant the previous year to the competent agencies that license or the ce1tificate; have granted the licenses, according to the fo1m c/ The validity tenn of the new license is in Appendix 22, 4 1, 42 or 50 to this Circular; the the same as that of the old one (in case the old People's Committees of communes or wards license is lost or damaged). shall send the district-level Sections of lndustiy 3. Order and procedure for re-granting a and Trade the lists of local small-scale liquor license or ce1tificate producers that sell liquor to ente1prises licensed to produce liquor according to Appendix 23 to a/ Within 10 working days after receiving this Circular. a complete and valid dossier, the competent state agency shall consider and re-grant the 2. Before February 28 every year, the license for industrial production of liquor, disti·ict-level Sections of Industry and Trade license for small-scale production ofliquor for shall send repo1ts on the investinent, production, sale, ce1tificate of registration of small-scale trading and licensing of small-scale production production of liquor for sale to enterprises of liquor for sale, the total registered small- licensed to produce liquor for ftuther processing, scale production volume of liquor for sale or license for liquor distribution, wholesale or to ente1prises licensed to produce liquor for retail (according to the fo1m in Appendix 5, 8, fmther processing, to their superior provincial- 14, 20, 38, 39 or 40 to this Circular) . In case level Departments of Industry and Trade of refusal, it shall issue a written reply clearly according to the fonn in Appendix 24a or 24b stating the reason; to this Circular. b/ If the dossier is invalid, within 3 3. Before March 31 eve1y year, the provincial- working days after receiving the dossier, the level Depaitments of Industiy and Trade shall agency in charge of re-granting the license send repo1ts on local investment, production Issue nos 07-08/Januarv 2013 53 (Cong Bao nos 31-32/January 20, 2013) and licensing of the indust1ial production of production and licensing of liquor production liquor, small-scale production of liquor and and distribution to the Ministiy's leadership liquor trading (wholesaling and retailing) to for approval; the Ministiy of Indust1y and Trade according b/ Guiding and inspecting the implementation to the fo1m in Appendix 25a, 25b, 43 or 44 to of this Circular and relevant laws on liquor this Circular. production and ti·ading. 4. Before July 15 and January 15 eve1y 2. Provincial-level Depa1tments oflndustiy year, liquor disti·ibutors shall send report on and Trade shall announce the local master their business in the previous six months and plans for the liquor retailing systems; receive the previous year according to the form in dossiers and conduct inspection, supervision

Appendix 49 to this Circular. and appraisal and license liquor production and 5. Before July 15 and January 15 eve1y liquor wholesale as guided in this Circular. year, liquor wholesalers shall send report on 3 . District-level Sections of Industry their business in the previous six months and and Trade shall receive dossiers , conduct the previous year according to the form in inspection and appraisal, and license small-

Appendix 48 to this Circular. scale production of liquor for sale and liquor retail. 6. Before July 15 and January 15 eve1y year, liquor retailers shall send report on 4. The People's Committees of communes their business in the previous six months and or wards shall receive written registrations the previous year according to the form in for small-scale production of liquor for sale to

Appendix 47 to this Circular. licensed ente1prises for ftnther processing. 5. Ente1prises and other organizations and Chapter VI persons related to liquor production and ti·ading IMPLEMENTATION PROVISIONS shall comply with this Circular. Article 17. Organization of Article 18. Effect implementation 1. This Circular takes effect on Febrna1y 1. The Department of Light Industlies and 5, 2013. the Domestic Market Depa1tment shall assume 2. Circular No. 10/2008/TT-BCT of July the prime responsibility for, and coordinate 25 , 2008, of the Minist1y of Industry and with other units under the Ministiy in: Trade, guiding a number of articles of the a/ Receiving dossiers and conducting Government's Decree No. 40/2008/ND-CP of inspection, supervision and appraisal, and April 7, 2008, on liquor production and ti·ading, sending proposals on the investment in liquor is annulled. 54 Issue nos 07-08/Januarv 2013 (Cong Bao nos 31-32/January 20, 2013) 3. The granted and unexpired licenses for a/ The license is granted one year before liquor production or trading may be used until this Circular talces effect but the business does they expire. not operate yet by the time this Circular takes effect~ 4. Organizations or individuals holding the unexpired licenses for liquor production or b/ The enterplise having the license has not trading under Decree No. 40/2008/ND-CP of operated for consecutive 12 months, counting Aplil 7, 2008, are exempted from applying for from the effective date of this Circular. new licenses, including impo1t pe1mits. When 8. Any problems arising in the course of such licenses expire, they shall apply for new implementation should be reported to the licenses under Decree No. 94/2012/ND-CP Minist1y of Indust1y and Trade for prompt and this Circular. settlement.- 5. Traders that wish to change their licenses shall comply with this Circular. For the Minister of Industry and Trade 6. Enterprises that wish to modify and Deputy Minister supplement their licenses shall comply with NGUYEN NAM HAI this Circular. 7. A license is revoked in the following Note: All appendices to this Circular are cases: not translated.