Circular No. 14/2008/TT-BCT guiding the implementation of a number of provisions of Government’s Decree No. 119/2007/ND-CP of 18 July 2007 on tobacco production and trade

Issue no~ 01·02IDeQember 2008 0 FFie)AL GAZETTE (Gong Baa nos 636--637!December 10,2008) 43 THE MINISTRIES THEMINISTRYOFINDUSTRYANDTRADE CIRCULAR No. 14/20081TT-DCT OF NOVEMBER 25, 2008, GUIDING THE IMPLEMENTATION OF A NUMBER OF PROVISIONS OF THE COVERNMENT'S DECREE No. 11912007/ND-CPOF JULY 18, 2007, ON TOBACCO PRODUCTION AND TRADE Pursuant to the Government's Decree No.189/ 2007/ND-CP a/December27.2007, defining the junctions, tasks, powers and organizational structureofthe Ministry ofIndustry and Trade; Pursuant to the Government's Decree No. 119/ 2007/ND-CP of July 18, 2007, on tobacco production and trade; The Ministry ofIndustry and Trade guides a number ofprovisions ofthe GovernmentsDecree No. 119/2007/ND-CP of July 18. 2007. on tobacco production and trading as follows: I. GENERAL PROVISIONS L This. Circularguides. conditionsfor trading a nrl procp""ing of tobacco raw rnaterials; conditions for manufacture of tobacco products; conditions for import of specialized tobacco machinery and equipment. tobacco raw materia1s and cigarette paper; management of investment in and use of specialized tooacco machinery and equipment, tobacco production capacity and tobacco product output; conditions for trading in tobacco products; competenre, procedures for and order of grant of tobacco product trading and processing eligibility certificates and tobacco product manufacture and trading licenses as prescribedin the Government'sDecree. No. 119/ 2007/ND-CP of July 18, 2007, ontobacco production andtrade. 2,This Circularapplies to domestic andforeign organizations andindividuals engaged in tobacco production and trade and relatedactivitiesin the Vietnamese territory, This Circulardoes not apply to the import of tobacco products as well as the trade of tobacco products at duty free shops. 3. Trading III and processing tobacco raw materials are conditional business lines. Only eligibleenterprises and individuals tharare granted by state management agencies iu-clILuge uf industry and trade tobacco raw material trading or processing eligibility certificates may trade in or process tobacco row materials and 31)011 observe prescribed conditions throughout the course of operation. 4. The Stale holds a monopoly on the manufacture oftobacco products; only enterprises that are granted tobacco product manufacturing licenses by the Ministry of Industry and Trade may manufacture tobacco products and shall comply with the guidance in thisCircularduring the course of tobacco product manufacture. © VIETNAM L/l.W & LEGAL FORUM OFFICIAi.. GAZETTE Issue n<n Q1-oZ/Dwmlber 2008 (Cong R~o flC.S 636 637iV6carnoor 1(;, ~(08) Foreign -invested tobacco product IllloI.nuf::\C~uringenterprises may only manufacture tobacco products with.n the SCQPC of their investment licenses and shall comply with Vietnam's laws and relevant guidance in (hi!; Circular. The Stule controls the supply of Wb~ICCO products to the market auc performs 11K: state cornmercial management of the import of tobacco products. 5-Imported specialized tobacco machinery <md equipment ~5pecified in Appendix 1 to t:1is Circular), tobacco raw materials and cigarette paper (paper for rolling tobacco shreds of a cigarette) aresubiect to the line management by theMin.stry of Industry and Trade and managed and used with the guidance in thisCircular, 6- Investment intheprocessing oftobacco raw materials .;Uld the production ()~~ cigarette paper mustbe in linewith the strategy andmasterplan of the tooacco industry and the planning on development of tobacco material Z01lCi 7, Investment in the manufacture of tobacco products must be in line with tOO strategy and master phm of the: tobacco industry and ensure thattobacco product output doest notexceedtotal production capacity determined and announced by sheMinisiryof Jndustry and Trade, 8. Tobacco products arc SUJjC<:1 to trade resrricrion Only tr:dlk!s that are gr~riled by state management agencies it: charge of industry and trade tobacco product who)esale trade (or wholesale agency) licenses or tobacco product retail trade (0: retail agencyj llcenses may trade in tobacco products within the scope of their permits. 9. Tobacco product trading licenses <1/ Each trader rna} only be granted a tobacco product tradingiicensc by a. stateagency incharge of industry and trade: blWholesale traders, apurt fromwholesaling tobacco products to otner traders as prescribed in thl'~r tobac 1.'[.\ product '"holesale trade (or wholesale agency) license-s. may retail tobacco products at their business places without having to applying f:-lr a (ohacrn product retail trade lt1r retail agency) license, w. Wholesale and retail of tooacc0 procucrs ai Tobacco product-supplyingenterprises may, apart from selling tobacco products to traders within their distribution systems, directly retail their tobacco products at theiratrachcd i'lops for the purpose ofproduct introducuon hiWholesale traders (orwholesale agents) may purchase tobacco prWUCLs fromoiher wholesale traders(or wholesaleagents) ifsuch is consented by enterprises supplying tobacco products to the latter and only sell the volume of purchased .obacco products within the. province where tney are headquartered ;J.~ prescribed in their tobacco product wholesale trade (or wholesale agency) .iccnses; c/ Wholesale traders may o:1i} sell tobacco ;JTOdUCb tc traders within their distribution systems that have tobacco product trading .iceases. If, by the market demand, wholesale ~ VI:TNAM LAW & LEGAL FORUM Issue nos 01-D2JDecember 2008 OFF JCJAL GAZETTE (Gong Bilo nos636-637/December 10, 2008) 45 tradersneed toexpand orchange rheirdisrriburion systems, they shall send to the licensing state management agency in charge of industry and trade a list of additional traders as prescribed at Point d, Clause 2, Section B, Part vrn of this Circular; dI Wholesale traders (wholesale agents) and retail uadcrs (retail agclll.1» may uuly retail tobacco products [0 consumers at their business places for which tobacco product trading licenses have been gm nted; mdY not usc their employees or other traders' employees to directly introduce or itinerantly sell tobacco products to consumers outside their licensed business places; and shall strictly observe legal provisions onadvertisement and sales promotion and other relevant legal provisions on cigarette trade. II. TRADINGIN TOBACCO RAW MATERIALS A. Conditions on the grantofa tobacco raw material trading eligibility certlficate 1. Conditions on business entities Being traders having business registration for tobacco raw material trading. 2. Conditions on material foundations, technical equipment and facilities and employees aIHaving a raw material trading establishment with a sorting and packaging section and raw material warehouses suitable to their business scope, with a total area of at least 500 nr'; hi Having separate warehouses for tobacco raw materials. These warehouses must be furnished with u ventilation system and equipment and facilities for the preservation of tobacco raw materials, including: thermometers and hygrometers for checking air temperature and relative humidity in the warehouses; devices for worm, termite and borer extermination; and sufficient she Ives for storing tobacco bales which are arranged at least 20 em above the floor andat least 50em from the wall or column; cllIaving 5igilCd COJlUilCt5 with empluyt:<;;:> who have professional qualifications or experience in investment management, technical assistance or raw material purchase. 3. Conditions on business processes suitable to business lines oftobacco raw material purchase and sale aJ Places of tobacco raw material purchase must have signboards showing the trade name of the tobacco raw material traders; bl Standards used for grading tobacco raw materials must be publicly posted up at places of tobacco raw material purchase according to current regulations, with sample raw material tobacco leave!'; shown; cl Traders must have signed contracts on investment in tobacco growth with tobacco growers in conformity with their business scope. 4. Conditions on environmental protection and fire and explosion prevention and fighting Having sufficient equipment and facilities for fire prevention and fighting, and assurance of safety and environmental sanitation in accordance © VIETNAM LAW & LEGAL FORUM OFFICIAL GAZETTE Issue nos 01-02IDecember 2008 (GongDeo nos 6Ja-037/Dea;mber 10,2006) with law. B. Competence, dossiers and order for the grant of tobacco raw material trading cligihiJity NlrtifiratE'S 1. Competence for the grant of tobacco raw material trading eligibilitycertificates Ind~ and Trade Services of provinces and centrallymncities(belowreferredtoasprovinces) have competence to grant tobacco raw material trading ettgibilitycertificates. 2. A OOssier of application for a tobacco raw material trading ettgtbtltryceruncate comprises: aI An application for a tobacco raw material trading eligibilitycertificate,made according to a set form; hi A wtlid copy of the business registration certificate; d Documents concerning businesscriteriaand conditionsspecified in this Circular, including: A Ijst~fwarehouses, workshops, offices Qnd other auxiliary works; their plan and area; A list of equipment and facilities: the veruilatien 5Y51em; fire prevenuon and fighting equipment, hygrometers and thermometers; devices for worm, termite and borer extermination, shelves for storing tobacco bales. Valid copies of contracts signed with ernployeesengagedininvestrnentnnanagernen4 technical assistance and raw materia!purchase. Valid copies of contracts on investment in tobacco growth, signed with lobacco growers. A valid copy of the certificate of assurance of fire safety, granted by a competent police depar unent, 3. Order of grant of tobacco raw material tradingeligibilitycertificates aJWithin 15 days after the receipt of a valid and completedossier, theprovincial-level Industry and Trade Service shall consider and grant a tobaccoraw material tradingeligibilitycertificate, made accordingto a set form, In case of refusal, it shall reply in writing, clearly stating the reason; bl For incomplete or invalid dossiers, the provincial-level IndustryandTrade Serviceshall, within 7 days after the receipt of the!:e dossiers, request in writing their supplementation. 4.Issuanceandarchiveof tobaccorawmaterial tradingeligibilitycertificates A tobacco raw material trading eligibility certificate shall be issued in four copies: Two copiesshallbe keptat the provincial-level Industry and Trade Service, one copy sent to the Ministry of Industry and Trade and another sent to the applicant. III. PROCESSING OF TOBACCO RAW MATERIALS A. Conditions on the grant of tobacco raw material processing eligibility certificates 1. Conditions on business entities Tobacco raw material processing eligibility certificates shallbegrantedonly toenterprisesthat are engaged in raw material processing and have machinery and equipment chains for stemming © VIETNAM LAW & LEGAL FORUM Issue nos 01-02lDecember 2008 OFF tcIAl GAZEHE (Gong Bao nos636-637/Dl>Cember 10, 20(8) 47 tobacco leavesor processing tobaccoleaves into tobacco shreds or flakes and other substitutes for the production of tobacco products and have a tobaccorawmaterial tradingeligibility certificate. 2. Conditions on material foundations, technicalequipmentand facilities andemployees al Having a raw material processing establishment with sorting, processing and packagingsectionsand raw material warehouses of a total areaof at least5,000 m2 suitableto their businessscope; bl Having separate warehouses for unprocessed andprocessed tobaccorawmaterials which are suitableto their businessscope. These warehouses must be furnished with ventilation systems, thermometers and hygrometers for checking air temperature and relative humidity in the warehouses; devicesforworm,tenniteand borerextermination; sufficient shelves forstoring tobacco bales which are arrangedat least 20 em above the floor and at least50 em from the wall or column; cI Having signed contracts with employees who have professional qualifications or experiencein investmentmanagement, technical assistance for tobacco growers or raw material purchaseandprocessing; cV Having complete specialized machinery and equipment for stemming tobacco leaves or processingtobaccoleavesinto tobaccoshredsor flakes and other substitutes for the production of tobaccoproducts andhavea tobacco rawmaterial tradingeligibilitycertificate. Raw material processing chains must be specialized andensureindustrial sanitation, labor safety und environmental sanitation standards; eI Having equipment and facilities for the measurement andcheckingof the qualityof raw materials before and after they areprocessed; fi All machinery and equipment must be of lawful origin. 3. Conditions on quality, hygiene and safety of tobaccoproducts Enterprises must satisfy quality dud hygieuc requirements according toVietnamstandards and manufacturer standards, and the Ministry of Henlth's regulations on food quality, hygiene and safety. 4.Conditions onenvironmental prcssction and fire and explosion preventionand fighting Enterprises must have sufficientdevicesand equipment for fire prevention and fighting and assurance of safetyand environmental sanitation in accordance with law. 5. Conditions on businessprocesses suitable to businesslines aI Places of tobacco raw material purchase must havesignboards showingthetrade nameof the enterprise trading inorprocessing tobacco raw materials; bi Standards used for grading tobacco raw materials must be publicly posted upat placesof tobacco raw material purchase according to current regulations, with sample raw material tobaccoleaves shown; cJ Tobacco raw material processing traders © VIETNAM LAW & LEGAL FORUM 48 OFFICIAL GAZETTE Issue nos 01-G2IDecember 2008 (Gong Biw nos636-637/December 10,2008) must sign contracts on investment in tobacco growth with tobacco growers and contracts on the purchase of tobacco raw materials from tobacco raw material traders in conformity with their business scope. 6. Conditions on locations of processing establishments Processing establishments must belocated in line with the strategy and master plan of the tobaccoindustryand theplanningondevelopment of tobaccomaterial zones approvedby competent authorities. B. Competence, dossiers and orderfor the grant of tobacco raw material processing eligibilitycertificates 1. Competence for grant of tobacco raw material processing eligibility certificates The Mi.nistry of Industry and Trade has competence to grant tobacco raw material processing eligibility certificates. 2. A dossier of application for a tobacco raw material processing eligibility certificate comprises; aJ An application for a tobacco raw material processing-eligibility certificate(made according a setfonn); bl A valid copy of the business registration certificate; cI A valid copy of the tobacco row material trading eligibility certificates; dI Documents concerning processing criteria and conditions, including: A list of workshops; sorting, processing and packaging sections; warehouses, offices and other auxiliary works, and their areas and plans; Ali stof complete specializedmachinery and equtpment for processing tobacco raw materials, devices for checking the quality of raw materials beforeand after theyareprocessed,the ventilation system; fire prevention and fighting equipment; hygrometers andthermometers; devices for worm, termite and borer extermination; shelves for suuiug tobacco bales, Documents evidencing the lawful origin of machinery and equipment. Written notifications of quality and hygiene standards in conformity withVietnam standards, manufacturer standards and the Ministry of Heath's regulations on food quality, hygiene and safety; Valid copies of contracts signed with employees engaged in investment management, technical assistanceandrawmaterialpurchaseand processmg; Valid copies of contracts on investment in tobaccogrowth, signedwithtobacco growersand contracts on tobacco raw material sale and purchase, signed with tobacco raw material traders; A valid copy of the decision approving the environmental impact assessment report or the registration certificate of the environmental pmtp.~ti(m commitment, gr:mtPn hy a competent agency; A valid copy of the certificate of fire safety granted by a competent police deportment. e VIETNAM LAW & LEGAL FORUM Issue nos 01-02JDecember 2008 (Gong Dt'io nos 636-6:J7iDecember 10,2(08) OFFICIAL GAZETTE 49 3. Order of grant of tobacco raw material processing eligibility certificates a/Within30daysafterthereceiptofa complete and valid dossier, the Ministry of Industry and Trade shall consider and grant a tobacco raw material processing eligibility certificate, made according to a set form. In caseof refusal, it shall reply in writing,clearly statmg the reason; bl For incomplete or invalid dossiers, the Ministryof Industryand Trade shall, within7 days after the receipt of thedossiers,request in writing their supplementation. 4. Issuance and archive oftobacco raw material processingeligibilitycertificates A tobacco raw materialprocessingeligibility certificate shall be issued ill [our copies; TWQ copies shall be kept at the Ministry of Industry and Trade,one sentto theapplyingenterpriseand another sent to the Industry and Trude Service of the locality wheretheenterpriseis headquartered. rv MANUFACTURE OF TOBACCO PRODUCTS A. Cundltluns 011 the griml uf tubacco product manufacturing licenses 1. Conditions on business entities Being enterprises lawfully established and manufacturing tobaccoproducts before the date of issuance of the Government's Resolution No. 12/2000INQ-CP of August 14, 2000, on the national policy for prevention and combat of tobacco harms during 2000-2010. 2. Conditions on investment in and use of home-grown tobacco raw materials atEnterprisesshall invest in tobacco growing in the form of direct investment or investment throughjoint venture with tobacco raw material traders that make direct investment in tobacco growingin conformity with their business scope and the approved planning on development at tobaccomaterialzones; hi Enterprisesmust usehome-grown tobacco raw materials for the manufacture of tobacco products according to theMinistryof Industryand Trade'sannualplans,except for tobaccoproducts withforeign brands orforexport.Theseplans shall bedeterminedin linewith thestrategyandmaster plan of the Vietnam's tobacco industry and the approved planning on development of tobacco materialzones. 3. Conditions on machinery ami equipment aIEnterprises manufacturing tobaccoproducts must havespecializedmachinery and equipment for the principal stugcs of tobacco shred processing,cigaretterolling and packaging; hI Tobacco shred processing must be completely performed by equipment, including steamer, moisturizer, raw material feeder, leaf storing and fermentation silo,shredder, sftredheat dryer, softener, OaVUI sprayer, blender allU weight scales; The shred processing chain must be specialized and Installed at aplacewhereindustnal sanitation, labor safety and environmental sanitation standardsare satisfied; c{ Enterprises that have no shred processing e VIETNAM LAW & LEGAL FORUM 50 OFFICIAL GAZEHE Issue nos 01-02IDecember ZOOS (GOng Bao nos 636-6J7IDecember to, 2(00) chains shall enter into shred processing contracts. Shred processing units must satisfy the conditions prescribed at Point b of this Clause; dJ At the stages of rolling and packaging cigarettes into packs or cartons, enterprises shall use automatic rolling and packaging machines, except for tobacco products produced by traditional manual methods; e/Enterprises must have minimum devices for the measurement and checking of quality standards.such as cigarette weight, circumference and decompression. Enterprises may themselves check or hire checking serviceproviders to check otherphysical andchemical standards andtobacco hygiene standards, Checking results must be systematically preserved for long-term momtortng: fJ All machinery and equipment used for the manufacture of tobacco products must be oflawful ongm. 4. Condition on quali ty,hygiene and safety of tOb3C.cO products Enterprises must satisfy quality and hygiene requirements according to Vietnam standards, manufacturer standards and the Ministry of Health's regulations on hygiene and safety of tobacco products. 5. Condition on ownership of trademarks Enterprises must own or belicensed to lawfully use trademarks registered and protected in Vietnam. 6. Condition on environment and fire and explosion prevention and fighting Enterprises must have sufficient devices and equipment for fire prevention and fighting and assurance ofsafety and environmental sanitation in accordance with law. B. Competence, dossiers and order for the grant of tobacco product manufacturing licenses 1. Competence for tobacco product manufacturing licenses The Ministry of Industry and Trade has competence to grant tobacco product manufacturing licenses. 2.A dossier of application for a tobacco product manufacturing license comprises: aJ An application for a tobacco product manufacturing license, made according to a set form; bl A valid copy of the business registration certificate; d Documents concerning business criteriaand conditions specified in this Circular, including: ~ A report on the enterprise's business performance over the last three years, clearly stating the production output target (converted output) for each group of tobacco products. A list of machinery and equipment, stating the cigarette production capacity and each stage's capacity calculated in packs of 20 cigarettes and three workshifts per day over the lust three years. Documents evidencing the lawful origin of machinery and equipment; Tobacco shred processing contracts and © VIETNAM LAW & LEGAL FORUM Issue nos 01.(J2)December 2008 0 FFIeIAL GAZETTE (Cong 8<ionos 636-637lDooombor 10,2008) 51 quality checking servicecontracts (if any). A list of warehouses, workshops,officesand other auxiliary works and their areas and plans. A valid copy of the quality registration certificate or the quality standard conformity notification. Validcopies of papers certifying the lawful ownership or use right to trademarks of tobacco products. A valid copy of the decision approving the environmental impactassessment report or the certificate of registration of the environmental protection commitment granted by a competent agency. A valid copy of the certificate of fire safety granted hy !1 competent police department. 3. Proceduresfor the grantof tobaccoproduct manufacturing licenses aJ Within 30daysafterthereceiptofa complete and valid dossier, the Ministry of Industry and Trade shall considerand grant a tobaccoproduct manufacturing license, made according to a set form, In case of refusal, it shall reply in writing, clearly stating the reasons. bl For incomplete or invalid dossiers, the MinistryofIndustryandTrade shall,within7days after the receipt of these dossiers, request in writing their supplementation. 4. Issuance and archival of tobacco product mauufacuuiug licenses A tobaccoproductmanufacturing licenseshall be issuedin iou: copies:Two copies shaH bekept at the Ministry of Industry and Trade, one copy sent to the applying enterprise, and another sent to the Industry and Trade- Service of the; locality where theenterprise is located. V. INVESTMENT IN THE MANUFACTURE OF TOBACCO PRODUCTS A. Capacity of tobacco product manufacture 1. Total production capacity means the production capacity of a complete chain for tV1Jd~~U VLUUU~ l manufacture (principal machinery andequipmentfor cigaretterollingand packaging) calculatedfor threeworkshifts perday at the time of issuance of the; GVVCI iuueut' s Resolution No. 1212()(X)INQ-CP of August 14, 2()(X), on the national policy on prevention and combat of tobacco harms during 2000-2010. 2. The Ministry of Industry and Trade shall announce the total production capacity of each enterprise, which shall serve as a basis for investment in themanufacture of tobaccoproducts and importof specializedtobaccomachineryand equipment. Enterprises may only make investment to increasetheirproductioncapacityif theyproduce cigarettes for export and shallproduce cigarettes fordomestic consumption withintheirdetermined and announced totalproduction capacity; Annually, enterprises shall send reports on investmentincigaretteproduction capacity [0 the Ministry of Industryand Trade. © VIETNAM LAW & LEGAL FORUM 52 OFFICIAL GAZETTE Issue nos 01-C2IDecember 2008 (Cong Bdo nos 63(}..()37IDe~mber 10,2006) B. Investment in the manufacture of 100011;(:0 pruducts COl' export, export processing, intensive investment, renewal of equipment and technologies, and relocation of production places under planning 1. Investors shall send theirinvestmentreports and written requests to the Ministry of Industry andTradefor investmentapproval. Within15days after the receipt of enterprises' written requests, theMinistry of Industry and Trade shall reply in writing. Incase of refusal, it shallclearly state the reason. 2. A wrinen reques( must STale me name and locationoffheproject, relevantprincipaltechnical parameters, production scale and output and plan uu ili::;p~l uf to-be-replaced machinery dUU equipment (in case of replacement investment). 3.Afterobtaining the written approval of the Ministry of Industry and Trade, enterprises shall make investment according to the order and procedures for investmentandcapitalconstruction Specifiedby law. 4. Enterprises shall report to the Ministry of Industry and Trade on the disposal of specialized tobacco machinery and equipment which are replaced in the course of investment. C. Foreign investment in the manufacture of tobacco products Foreign Invesrrnenr in me manufacture of tobaccoproductsmay be licensedonlyin the form of joint venture or cooperation with domestic enter pi ises possess i Ilg lULJd~l,;U product manufacturing licenses within the licensed pluuu~Liulll,;apacityand with the State holding a dominant share in enterprises' charter capital. 1. Foreign investment in the form of setting up a joint venture for the manufacture of tobacco products rJl Jnint-venrure parties shall send ::I dossier of the project on the establishment of the joint venture and the joint-venture contract, enclosed with a written request to the Ministry ofIndustry and Trade; Within 30 days after receiving a complete dossier and the written request ofenterprise, the Ministry oflndustry and Trade shall submit them to the Prime Minister for consideration and decision. In case ofrefusal, it shall reply in writing, clearly stating the reason. bl A written request must state the name and location ofthc: project, relevant principal technical parameters, operation scope and objectives, production scale and output of each kind of tobacco products, pla.ns on inycstmcnt in machinery and equipment and disposal of to-be replaced machinery and equipment; cl Only after obtaining writtenapproval ot the Prime Minister, can joint-venture parties make registration for joint venture establishment Ul:\:UI diug to current prov isious of fa w on investment. 2. Foreign investment in the form of processing, production cooperation or industrial property licensingcontracts aIInvolvedpartiesshall sendthe whole dossier © VIETNAM LAW & LEGAL FORUM , Issue nos 01-o2lDeoember 2008 0FFie IAL GAZETTE (Cong Bao 1M G30..(jJ7IDeWUlUt!1 10, 2008) 53 of the processing, production cooperation or indusuial pioperay licensing contract enclosed with a written request to the Ministry of Industry and Trade. Within 30 days after the receipt of acomplete dossier and the written request of me enterprise, the Ministry of Industry and Trade shall submit them to the Prime Minister for consideration and decision. In case of refusal, it shall reply enterprises in writing, clearly stating the reason; bi A written request must state principal contents of the processing, production cooperation or industrial property licensing contract; production scale and output of each kind of tobacco product, and plans on investment in machinery and equipment and disposal of to-be replaced machinery and equipment (if any); c/ Only after obtaining written approval of the Prime Minister, can involved parties perfonn the processing, production cooperation or industrial property licensing contract; dIEnterprises currently manufacturing tobacco products under processing, production cooperation or industrial property licensing contracts with foreign parties shall send all dossiers and writtenrequests as specified at Points a and b of this Clause to the Ministry of Industry and Trade for consideration and determination of the production scale and output of each kind of tobacco product. 3. When making intcn sivc investment, enterprises shall report to the Ministry ofIndustry and Trade on results of disposal of specialized tobacco machinery and equipment which are no longer used or are liquidated, and take full responsibility for the disposal. D. Tobacco product output 1. Enterprises may not manufacture tobacco products in excess of the production capacity stated in their tobacco product manufacturing licenses. 2.Enterprises manufacturing tobacco products of foreign brands may not manufacture them in excess ofme permined output.For foreign tobacco brands for which the permitted product output is not yet determined, enterprises shall send all dossiers as speci lieu ill Section C uf Pan V above to the Ministry of Industry and Trade for consideration and determination of theproduction scale and output. 3. Annually, enterprises shall send statistical reports on the output of each kind of tobacco product to the Ministry of Industry and Trade. VI. IMPORT OF SPECIALIZED TOBACCOMACH~RYAND EQUIPMENT, TOBACCO RAW MATERlALSAND CIGARETTE PAPER 1.Imported specialized tobacco machinery and equipment and spare parts, tobacco raw materials and cigarette paper are subject to the line management of the Ministry of Industry and Trade. Enterprises possessing tobacco product manufacturing licenses may import above goods. Enterprises possessing tobacco ra w material processing eligibility certificates may import e VIETNAM LAW &LEGAL FORUM OFFICIAL GAZETTE Issue nos 01-02lDecember 2008 (GOng Bao fK.lS 636-637JVecember 10, 200B) specialized tobacco machinery and equipment uf kinds suitable lO the swges of tobacco raw material processing, and import tobacco raw materials. Tobaccogroupsandcorporations shallreeeive anddistribute importquotasto theirmember units which possess tobacco product manufacturing licenses. 2. Enterprises eligible to import specialized tobaccomachinery andequipmentandtheirspare parts, tobacco raw materials and cigarettepaper maydirectly orentrustimportandexportbusiness units to import thesegoods. 3.Importof specialized tobacco machinery and equipmentand their spareparts aJ Imported specializedtobacco machinery and equipment must be suitable to the production capacity of tobacco product-manufacturing enterprises; bIThe investorshall send the project dossier already aPf)fOved byacompetent authority, acopy of the Ministry of Industry and Trade's written approval and a written request for import of machinery and equipment to the Ministry of Industryand Trade; dWit)ijn 7 daysafterthereceiptofa complete dCl<;<;;E"r of the enterprise, the Mini <;try of1ndustry and Trade shall base itself on the approved investment project to approve or disapprove in writingthe enterprise's importof machinery and equipment. 4. Import of tobacco raw materials and cigarette paper for the manutacture ot tobacco productsfordomesticconsumption aJ By November 10 every year, tobacco product-manufacturing enterprises and tobacco raw material-processing enterprises shall send re{X>rts on their needs for import of tobacco raw materials andcigarette paperof thefollowing year to the Ministryof Industry and Trade; bl For raw material tobacco imported within their import quotas, enterprises shall send applications for registration for quota-based import to the MinistryofIndustry and Trade; cl By December 15every year, based on the production output and reports of tobacco product-manufacturingenterprises and tobacco raw material-processing enterprises and the domestic supply of raw materials, the Ministry ofIndustry and Trade shall issue written notices on import quotas to concerned enterprises and agencies; dI Imported tobacco raw materials and cigarette paper may only be used for the manufacture of tobacco products under enterprises' production plans and must not be marketed. 5. Import of tobacco raw materials and cigarettepaper forexportproduction Enterprises shall send export production contractsand writtenrequests for permission to importtobacco rawmaterialsandcigarettepaper to the Ministry of Industry and Trade. Based on these requests, enterprises' production capacity andrelevant dossiers, theMinistry oflndustry and Trade shall, within 7 days after the receipt of complete dossiers and written requests at e VIETNAM LAW & LEGAL FORUM Issue nos 01·02lDecember 200B 0 FFIC IAL GAZETTE (Cong Sao nos63~71D&c9moof 10,20(8) 55 enterprises, notify in writing import plans to concerned enterprises and agencies. 6. Contracts on export processing of tobacco raw materials for foreign traders Only enterprises having tobacco product manufacturing licenses or tobacco raw material processing eligibility certificates may perform contracts for export processing of tobacco raw materials. Enterpri "1"." shall "p.nti p,"port processing contracts and written requests to the Ministry of Industry and Trade. Based on these requests, enterprises' production capacity and relevant dossiers, the Ministry of Industry and Trade shall, within 7 days after the receipt of complete dossiers and written requests of enterprises, approve or disapprove in writing the enterprises' performance of those contracts. VII. MANAGEMENT OF USE OF SPECIALIZED TOBACCO MACHINERY AND EQUIPMENT L Use of specialized tobacco machinery and equipment aJ Enterprises possessing tobacco product manufacturing licenses may use specialized tobacco machineryand equipment for processing tobacco raw materials and manufacturing tobacco products; hi Enterpri "<"<:. J¥l<:."<,,.<:.c;ing tob:!cco r:1W material processing eligibility certificates may use specialized tobacco machinery and equipment suitable to the stages of processing tobacco raw materials; cl Urgamzattons and mdividuals possessing no tobacco product manufacturing licenses or tobacco raw material processing eli gihi Iity certificates may not use specialized tobacco machinery and equipment in any form. 2. Specialized tobacco machinery and equipment ofunlawful origin shall be confiscated and disposed of according to law. a! Spec iaf ized tobacco machinery and equipment are regarded as unlawful in the following cases: They were imported before lhe dale of issuance of the Prime Minister's Directive No. 13/1999ICT-TTg of May 12, 1999,wiUlout valid import papers. They were imported after theeffective date of the Prime Minister's Directive No, 13/1999/ CT-rrg of May 12, 1999, WIthout vatid Import papers and written approval of the :Ministry of Industry and Trade (or the former Ministry of Iudusu y). b/ Confiscated specialized tobacco mo1chinery and equipment shall be disposed of under current regulations and may be resold only to enterprises with tobacco product manufacturing licenses. 3. The sale. export. re-export lind "'tllid:ttion ofspecialized tobacco machinery and equipment of tobacco product-manufacturing enterprises comply with relevant provisions of law and the following provisions: aJ Enterprises may only sell machinery and equipment which remain usable to enterprises © VIETNAM LAW & LEGAL FORUM 56 OFFICIAL GAZETTE Issue nos 01·02lDecember 2008 (Cbng &0 nos63UJ71D~ 10, 2008) with tobacco product manufacturing licenses, or export or re-export them; bl Machinery and equipment which are no longer usable or are liquidated must be destroyed under the supervision of a ]iquldation council set up by the Ministry of Industry and Trade; cI Enterprises shall compile liquidation dossiers for machinery and equipment that need to be liquidated, work out liquidation plans and send them together with written requests for hquidation to the MInistry ofIndustry and Trade. Within 15 days after the receipt ofthe enterprises' written requests, the Ministry of Industry and Trade shall make a decision to set up a liquidation council in charge of supervising the destruction ofmachinery and equipment; d/ Enterprises shall report on results of machinery and equipment sale and Iiquidation to the Ministry of Industry and Trade. 4. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with the Ministry of Pnhlic Security and the Ministry of Finance in, conducting inspection, detection and disposal of unlawful machinery and equipment for the manufacture of tobacco products. VIII. TRADING IN TOBAl:(;O PRODUCTS A. ConditionS' on the grant ()f tobsceo product wholesale trade (wholesale agency) licenses 1. Conditions on business entities Being enterprises established under law and possessing business registration for sale and purchase of tobacco products. 2. Conditions on business locations Having a fixed business place with a clear address conformable with the tobacco product trading network planning approved by competent authorities. 3. Conditions on material foundations and financial capacity a/ Having warehouses (or storing places) suitable to their business scope and satisfying requirements for the preservation of tobacco products during thestorage period; bIHaving means of transport suitable to their business scope and satisfying requirements for the preservation of tobacco products during transportation; cl Being financially capable to assure the normal operation of their distribution system. 4. Condinons on organization of the distribution system Being selected by tobacco product manufacturing enterprises, commercial enterprises of tobacco product-manufacturing groups or corporations, tobacco product importing enterprises or Vietnam-based representatives of foreign investors (below referred to as tobacco product-supplying enterprises) or other wholesale traders to act as a wholesale trader (wholesale agent), and having organized a stable system for distribution of tobacco products III their locality. e VIETNAM LAW & LEGAL FORUM Issue nos 01-Q2IDecember 2008 (C6ng Bao nos 636-637!Decemoor 10. 2008) OFFICIAL GAZETTE 57 B. Competence, dossier and order for the grant of tobacco product wholesale trade (or wholesale agency) licenses L Competence to grant tobacco product wholesale trade (wholesale agency) licenses aJ For wholesale traders (wholesale agents) conducting business ill Lwu OJ ruore provinces: Licenses shall be granted by the Ministry of Industry and Trade; b/ f-or wholesale traders (wholesale agents) conducting business in one province: Licenses shall be granted by the Industry and Trade Service of [he locality where the applying trader is headquartered. 2.Adossier ofapplication for a tobacco product wholesale trade (wholesale agency) license comprises: aI An application for a tobacco product wholesale trade (wholesale agency) license, made according to a set form; b/ Valid copies of the business regisuatiou certificate and tax identification number certificate; cl The letter of introduction of a tobacco product-supplying enterprise or another wholesale trader, clearly stating the expected business location; dI A business plan, covering: A report on business operation results over the last three year, enclosed with valid copies of sale and purchase contracts (or sale and purchase agency contracts) with sale enterprises (for operating enterprises), clearly stating general data on all kinds of tobacco products, purchase prices, sale prices and sale and purchase value (total value and value calculated for each tobacco product supplying enterprise and business location), paid tax amounts and profit; The expected business performance of the year following the year when the trader applies for a permit for wholesale trade (wholesale agency) of tobacco products, clearlystating names and addresses of enterprises that will sell goods to the enterprise, kinds of tobacco products, purchase prices, sale prices, and sale andpurchase value (total value and value calculated.according to each goods-seIlmg enterprise and business location), payable tax amounts and prQfits~ Forms of organization of goods sale and methods ofmanaging the distribution system; A list of material and technical foundations (warehouses, vehicles) and employees involved in tobacco product trading; A list of traders which belong or will belong to it" distribution system, with their names and addresses, addresses oftobacco product wholesale and retail shops (if any), tax identification numbers, valid copies of tobacco prod\tct trading licenses (for operating traders) and te'x,pected) business locations. el Documents evidencing the enterprise's capacity, including: Dossier of warehouses (or storing places), including: warehouse usc rights (owned or co owned by the trader or rented for a minimum period ofone year), location and storing capacity of warehouses and other technical specifications © VIETNAM LAW & LEGAL FORUM 58 OFFlelA L GAZETTE Issue nos01.Q2IDecember 2008 (Cong DdOnos 636-637/Decernber 10, 20(8) for maintaining the quality of tobacco products during storage; Dossiers of means of transport, including: 'rights to use means of transport (owned or co owned by the trader or rented for a rmrumum period of one year), transportation capacity and technical specifications for maintaining the quality of tobaccoproducts during transportation; Dossier of financial capacity: written certification ofown capital or guarantee ofgoods selling eJ1bprises or banks where the trader opens accounts for financial sources to assure the distribution system's normal operation. 3. Order ofgrant oftobacco product wholesale trade (wholesale agency) licenses 0.1 Waolcsulc trudcrs (wholesale agents) conducting business in two or more provinces shall senddossiers to the Ministry ofIndustry and Trade; bl Wholesale traders (wholesale agents) conducting business in one province shall send llu:,;:,;ita:; to the Industry and Trade Services ortne localities where they are headquartered; cI Within 15 days after the receipt of a valid dossier, (be licensing agency shall consider and grant tobacco product trading license, made according to a set form, to wholesale traders (wholesale agents). In case of refusal to grant a 1icense, the licensing agency shall reply in writing, clearly staling the reason; dI For incomplete or invalid dossiers, the licensing agency shall, within 7 days after the receipt of the dossiers, request in writing their supplementation. 4. Issuance and archive of tobacco product wholesale trade: (wholesale agency) license:'> aJ For licenses granted by the Ministry of Industry and Trade: each license shall be issued in a sufficientnumber ofcopies: threecopies shall bekept at the Ministry and each of the remainder shall be sent to the Market Management Department, prov mcial-IeveIIndustry andI rade Services listed in the license and the Industry and Trade Service of the locality where the trader is headquartered, and the applying trader; bl For licenses granted by provincial-level Industry and Trade Services: each license shall be issued in five copies: two copies shall bekept at the licensing Industry and Trade Service, one copy sent to the Market Management Sub Department under the licensing Industry and Trade Service, one copy to the Ministry ofIndustry and Trade, and another to the applicant. c. Conditions on the grant of tobacco product retail trade (or retail agency)licenses 1. Conditions on business entities Being enterprises possessing business registration for sale and purchase of tobacco products. 2. Conditions on business locations Having a fixed business place with a clear address conformable with the tobacco product trading network planning approved by a competent authority. 3. Conditions on material foundations Having a separate place for sale of tobacco e VIETNAM LAW & LEGAL FORUM Issue nos 01·0ZlDecember 2008 OFFICIAL GAZETTE (Gong eso nos 63fi.6J//Uecember 1U, 2008) 59 products. 4. Conditions on organization of the distribution system Belonging to the distribution system of a tobacco product wholesale trader. D. Competence. dossiers and order for the grant of tobacco product retail trade (retail agency) licenses 1.Competence to consider and grant tobacco product retail trade (retail agency) licenses Licenses shall be granted by Industry and Trade Bureaus of districts where the traders apply for the opening of tobacco product retail shops. 2. Adossier of application [UI a tobaccoproduct retail trade (retail agency) license aJAn application for a tobacco product retail trade (retail agency) license, made according to a set form; bl A valid copy of the business registration certificate; d A letter ofintroduction of a tobacco product wholesale trader, clearly stating all business places; dI Documents evidencing the lawfulness of the trader's tobacco prnrlnc:f retail places; 3. Order ofgrant oftobacco product retail trade (retail agency) licenses atTraders shall send dossiers to the Industry and Trade Bureaus of districts where they apply for theopening of business places; bl Within 15 days after the receipt of a valid and complete dossier, the Industry and Trade Bureau shall considerand grant a tobacco product retail trade (or retail agency) license, made according to a set form. In case of refusal, it shall reply in wnting, clearly stating the reason; cl For incomplete or invalid dossiers, the district-level Industry and Trade Bureau shall, within 7 days after the receipt of the dossier, request in writing their supplementation. 11. Issuance and archive of tobacco product retail trade (retail agency) licenses A tobacco product retail trade (retail agency) Iicense shall be issued in five copies: two copies shall be kept at the district-level Industry and Trade Bureau, one copy shall be sent to the superior provinclal-level Industry and Trade Service, one copy to the Market Management SUb-Department under the superior provincial level Industry and TI ade SCI v ice, and another COpy to the applicant. IX. REPORTING 1, State management agencies in charge of industry and trade ot VarIOUS levels shall send biannual and annual reports within 20 days after the end ofthe reporting period on business results of traders under their licensing competence to their superior-level state management agencies in charge of industry and trade. 2.Tobacco product-supplying enterprises shall send quarterly reports to the Ministry of Industry and Trade on the import and use of specialized tobacco machinery and equipment, tobacco raw © VIETNAM LAW & LEGAL FORUM 60 OFFICIAL GAZETTE Issue nos 01-D2IDecember2008 (Cong BaD nos 636-537lDecember 10, 2008) materials and cigarette paper imported in the period; bl Biannual and annual reportwithin 10days after the end of the reporting period on their busi ness performance to the Ministry of Industry and Trade ; cl In the course of operation. if terminating saleandpurchasecon tracts (or saleandpurchase agency contracts) or adjust (expand or narrow) business scope of a trader in their distribution system, they shall report thereon to the Ministry oflndustry and Trade and the Industry and Trade Service of the locality where the trader is headquartered in order to carry out procedures for withdrawing or adjusting the trader's tobacco product trading license and for adjusting or granting a new license to another trader, when necessary. Reports must be sent promptly right after tobacco product-supplying enterprises terminate or adjust contracts with wholesale traders. 3. Tobacco product wholesale traders shall send biannual and annual reports within 10 days after the end of the reporting period on their business results to the Ministry of Industry and Trade and the Industry and Trade Services of localities where they conduct business as prescribed in their tobacco product trading licenses (for traders that directly purchase tobacco products from tobacco product-supplying enterprises and ~11 these product" in two C1r more provinces) or the Industry and Trade Services of the localities where they are headquartered as prescribed in their tobacco product trading licenses (for traders that sell tobacco products in one province) . 4. Tobacco product retail traders shall send biannual and annual reports within 10 days after the end of the reporting period ontheir business results to the licensing district-level Industry and Trade Bureaus. x. VALlDITYTERMS; MODIFICATION, RENEWAL OR WITHDRAWAL OF ELIGIBILITY CERTIFICATES AND TOBACCO PRODUCT MANUFACTVRINGANDTRADING LICENSES AND LICENSING FEES 1. Validity terms Tobacco raw material trading eligibility certificates. tohacco raw material processing eligibil ity certificates, tobacco product manufacturing licenses and tobacco product trading licenses are valid for five (05) years from the date of grant. 2. Modification of tobacco raw material trading eligibility certificates, tobacco raw material processing eligibility certificates, tobacco product manufacturing licenses and tobacco product trading licenses aJIf there are any changes in the contents of their tobacco raw material trading eligibility certificates, tobacco raw material processing eligibility certificates, tobacco product manufacturing licenses or tobacco product trading licenses, organizations and individuals shall compile and send dossiers (0 the licensing state management agency in charge of industry and trade. e VIETNAM LAW & lEGA.l FORUM Issue nos 01·02JDecember 2008 0 FFieIAL GAZETTE (Collg Bau IIlJ.'> (jJ6-(jJ7iD~~'8mlJl:Jr 10, 2008) 61 bl Such a dossier comprises: An application for modification: The original (or a valid copy) of the granted certificate or license; Documents justifying the need for the modification. cI Competence for and order of modification comply with the guidance in this Circular. 3. Renewal aJ If tobacco raw material trading eligibility certificates, tobacco raw material processing eligibility certificates, tobacco product manufacturing licenses or tobacco product trading licenses arelost. tom, burntorotherwise destroyed or 30 days before the expiration ofthe certificates or licenses, the concerned organizations or individuals shall campiIeand send dossiers to the licensing state management agency in charge of industry and trade; bl A dossier of application for renewal of a tobacco raw material tradingeligibilitycertificates. tobacco raw material processing eligibility certificates, tobacco product manufacturing license or tobacco product trading license which is lost, torn, burnt or otherwise destroyed comprises: An applicatio» for renewal; The original or a copy of the granted certificate or license, if any. c! Dossier of appucation tor renewal of an expired tobacco raw material trading eligibility certificate, tobacco raw material processing eligibility certlflcate, tobacco product manufacturing Iicense or tobacco product trading license. Licensed organizations or individuals shall compile dossiers as guided in this Circular for cases of first-time grant; dJ Competence for and order of renewal comply with the guidance in this Circular. 4. Withdrawal of tobacco raw material trading eligibility certificates, tobacco raw material processing eligibility t:t:l uficaies, tobacco product manufacturing licenses and tobacco product trading licenses Organizations and individuals shall have their tobacco rawmaterial tradingeligibilitycertificates, tobacco raw material processing eligibility certificates, tobacco product manufacturing licenses or tobacco product trading licenses withdrawn if they violate regulations on production and business condinons prescribed by law. 5.Licensing fees Production and business organizations and individuals that aregranted tobacco raw material trading eligibility certificates, tobacco raw material processing eligibility certificates, tobacco product manufacturing licenses or tobacco product trading licenses shall pay fees ::lcr.ording to the Ministry of Finance's regulations. IX. Il\IIPI ,RMF.NTATTON PROVISIONS 1. Organization of implementation The Light Industry Department, the Domestic Market Department and the MarketManagement © VIETNAM LAW & LEGAL FORUM 62 OFFICIAL GAZETTE Issue nos01·02IDecember 2008 (c(jng 880 nos 536-637IDecember 10,2008) Department shall, within the ambit of their functions and tasks, assume the prime responsibi Iity for, and coordinate with units under the Ministry of Industry and Trade in: Organizing the receipt of dossiers, examining, appraising and submitting to the Ministry's leadership for approval policies on investment in tobacco production and grant of tobacco raw material processing eligibility certificates and tobacco product manufacturing and trading licenses under its competence as prescribedin this Circular, Organizing, guiding and examining organizations and individuaJs in the implementation of the provisions of the Government's Decree No. 119/2007/ND-CP of July 18,2007, on tobacco production and trade, this Circular and relevant provisions of law on tobacco production and trade. b/Provincial-level Industry and Trade Services shall, within the scopeof their functions and tasks, assume the prime responsibility for. and coordinate.with relevant agencies in their localities in: Organizing the receipt, examination and appraisal of dossiers and grant of tobacco raw material trading eligibility certificates and tobacco product wholesale trade (wholesale agency) licenses under their competence as prescribed in this Circular. Orgaulzmg, guiding and iIlSIJt:L:lillg disulci level Industry and Trade Bureaus in the grant of tobacco product retail trade (retail agency) licenses as prescribed iu Litis Ciicular , Organizing, guiding and inspecting local organizations and mdi viduals in the implementation of the provisions of the Government's Decree No. 119/2007/ND-CP of July 18,2007, on tobacco production and trade, this Circular and relevant legal provisions on tobacco production and trade 2. Handling of violations Organizations and individuals that commit acts ofviolation of this Circular nnd relevant provisions of law shall, depending on the severity of their violations, be disciplined, administratively sanctioned or examined for penal liability. If causing damage, they shall pay compensations therefor according to law. Cadres and civil servants who abuse thetr positions and powers to act in contravention of this Circular shall, depending on the severity of their violarions, be administratively sanctioned or examined for penal liability in accordance with law. 3. Implementation effect This Circular takes effect 15 days after its publication in ''CONG BAO." To annul the Trade Ministry's Circular No. 30/1999fIT-BTM of September 9, 1999, guiding the trading in home made cigarettes and the Industry and Trade Ministry's Circular No. OOl/2007fIT-BTC of August 29, 2007, guiding the implementation of :I m Iml'lP.r ()f :lrtidp'.l;" {)fthP. r .nw~m1'1JPnt 'l;"11ecr~ No. 119/2007/ND-CP of July 18, 2007, on tobacco production and trade. 4. Transitional provisions © VIETNAM LAW & LEGAL FORUM Issue nos 01'()2IDecember 2008 OFFICIAL GAZETTE (Cong Sao nos636-6371December 10, 2008) 63 Within 90 days after the effective date of this Circular, iforganizations and individuals currently manufacturingor tradingintobaccoproductswith or without tobaccoraw materialtradingeligibility certificates, tobacco raw material processing eligibili ty certificates, tobacco product manufacturinglicensesor tobaccoproducttrading licenses under previous legal provisions satisfy all the conditions specified in this Circular and wish to continue their production and business, they shall submit dossiers of application for a tobaccoraw material tradingeligibility certificate, tobacco raw material processing eligibility certificate tobacco product manufacturing license or tobacco product tradinglicense.Organizations and individuals may continue their operation pending the srare m:m:-lgemt>:nt agencies in charge of industry and trade grantor refuse to grant such a certificate or license. bl The tobacco product trading network plannings shall be applied no later than January 1,2010. 5. The Ministry of Industry and Trade shall elaborateand approvetheplanningon the tobacco product wholesale trading network nationwide and guide and authorize provincial-level People's Committee presidents to elaborate and approve planningson tobaccoproductwholesaleandretail networks in their respective localities. 6.Provincial-levelPeople's Committeesshall direct provincial-level Industry and Trade SCIviLK:; in organizingthe implementationof thisCircular, work out plans on elaboration and finalizationof plannings on tobacco product wholesale and retail networks in their respective localities beforeJuly 7, 2009, in order to guide traders to implement them; organize the grant of tobacco raw material tradingeligibility certificatesand tobaccoproduct trading licenses and inspect and handle violations of law intobacco producttrading; reporttheresults of implementationand difficultiesand problems to the Ministry of Industry und'tlradc for supplementationand adjustment. FQ, the Mi,,~teroflrulustry mull'rade VICe Minister BUIXUANKHU Appendix (To the Industry and Trade Ministry's£ircular No. 1411008/IT-BCT ofNovembu 25, 2008) LIST OF SPECIALIZED TOBACCO MACHINERYAND EQUIPMltNT I. CHAIN FOR PROCESSING TOBACCO RAW MATERIALS A. Stage of processing tobacco leaves 1. Leaftip cutter 2. Moisturizingcylinder 3. Leaf rermentanon chamber (storing and © VIETNAM LAW & LEGAL FORUM 64 OF FieIAL GAZETTE Issue nos 01.Q2IDecember 2008 (Cong RAn nn.~ fi.16-637/Deremher H), 'OOR) . -------------------.. ----- . fermentation silo) 4. Leaf heat-dryer (heat-drying, cooling, softening) 5. Leaf load sorterand compressing system B. Stage of processing tobacco stems 1.Cylinderfor moisturizing stemsfor the first time 2. Cylinder for moisturizing stems for the second time 3. Stem-leafseparating system 4. Stem heat-dryer (heat drying, cooling, softening) 5. Stem sorter and cleaner 6. Stem bale weighingand pressingsystem II. CHAIN FOR PROCESSING TOBACCO SHREDS A. Leaf stage 1. Vacuumsteamingequipment 2.Leaf tip cutter 3. Leaf moi sturizing cylinder 4. Raw materialfeedingcylinder 5. Leaf fermentation chamber (stoting and fermentation silo) 6. Metal detector 7. Leaf shredder 8. Shred expansionequipment 9. Leaf heat-dryer (heat-drying, cooling, softening) 10. System of scales B. Stemming stage 1. Stemmingmachine 2.Cylinderformoisturizing stemsfor thefirst time 3. Stem fermentation chamber (stem storing and fermentation silo) 4. Cylinder for moisturizing stems for the slX:ond time 5. Stemmill 6. Stem shredder 7. Stemexpansionequipment 8. Stemhealdryer 9. Stemseparator 10. Stem fermentation chamber (stem shred fermentation silo) 11. Systemof scales C. Shred blending stage 1.Flavor sprayer 2. Shred fermentation chamber (shred fermentation silo) 3. Shred conveying system (aerodynamic or mechanical) m. CHAINS FOR PRorRSSINC TOBACCO FLAKES AND OTHER SUBSTITUTES FOR MANUFACTURE OF TORAf:CO PROOIWTS . © VIETNAM LAW & LEGAL FORUM , Issue nos 01·02lDecember 2008 0 FFieIAL GAZHTE ((;nna Riin MS 1i'lR-ii'l7IrJP.rem08( 1n, ')008) IV. MACHINERYAND EQUIPMENT FOR CIGARETTE MANUFACTURE A. Stage of rolling cigarettes and fitting filter tips 1. Cigarette rolling machine 2. Filter tip fitting machine 3. Tray feeding machine B. Packaging stage 1. Pack packaging machine 2. Pack cellophane wrapping machine 3. Carton packaging machine 4. Carton cellophane wrapping machine 5. Carton boxing machine. e VIETNAM LAW & LEGAL FORUM 65