Reissue alcohol distribution license in Vietnam

In the process of business development, traders always try to best meet the needs of consumers, as well as develop a variety of products of their products. Currently, the import of products from abroad for economic development is no stranger. Catching up with the above trend, the import of alcohol products from abroad, through Vietnam’s international border gates is becoming more and more popular. Parallel to that development is a growing interest in alcohol distribution license so that legal distribution can be carried out and receive protection from the state. In the following article, Viet An Law will summarize the provisions to reissue of alcohol distribution license.

Legal basis

• Decree No. 105/2017/ND-CP regulating alcohol production and trading is amended and supplemented by Decree No. 17/2020/ND-CP;
• Decree 98/2020/ND-CP amended and supplemented in Decree 17/2022/ND-CP on sanctioning administrative violations of counterfeit goods production and trading activities.

Understand what alcohol distribution is

Alcohol distribution can be understood as the activity of importing alcohol, purchasing alcohol from alcohol distribution merchants and selling alcohol to distributors, wholesalers, retailers, on-site consumption sales in licensed provinces or cities.

Thus, after obtaining a distribution license, businesses will be able to sell alcohol to the following entities:

• Other enterprises have license for alcohol distribution, wholesale of alcohol, retail sale of alcohol, sale of alcohol for on-site consumption within provinces and centrally-run cities stated in the granted alcohol distribution license.
• For businesses to purchase alcohol to carry out the export of alcohol abroad.
• Directly retail alcohol at business locations of enterprises within licensed provinces and centrally-run cities and according to the contents stated on the alcohol distribution license.
• Entitled to sell alcohol for on-site consumption, however, procedures must be carried out for registration with competent state agency as prescribed.

Conditions to be met when distributing alcohol in order to be licensed in Vietnam

Pursuant to the provisions of Article 11 of Decree No. 105/2017/ND-CP amended and supplemented by Decree No. 17/2020/ND-CP stipulating conditions for alcohol distribution, including:

• Being an enterprise established in accordance with the provisions of law.
• Having a alcohol distribution system in 02 provinces and centrally-run cities or more (including the area where the enterprise is headquartered); In each province or centrally-run city, there must be at least 01 wholesale alcohol trader. In case an enterprise establishes a branch or business location outside the head office for alcohol trading, a certificate from the wholesale alcohol trader is not required.
• There are written introductions or principle contracts of alcohol producers, other alcohol distributors or overseas alcohol suppliers.

Rights and obligations of alcohol distributors in Vietnam

In addition to the general rights and obligations specified in Clause 1, Article 18 of Decree No. 105/2017/ND-CP amended and supplemented in Decree No. 17/2020/ND-CP, alcohol distributors also have other rights and obligations such as:

• Importing alcohol, purchasing alcohol from domestic alcohol producers and other alcohol distributors according to the contents stated in the license;
• Sale of alcohol to licensed alcohol distributors, alcohol wholesale traders, alcohol retail traders, traders selling alcohol for on-site consumption within licensed provinces and centrally-run cities;
• Sale of alcohol to merchants who purchase alcohol for export;
• Directly retail alcohol at business locations of traders within licensed provinces and centrally-run cities.

Regulations on sanctions for selling unlicensed alcohol in Vietnam

Pursuant to Decree 98/2020/ND–CP, violations on alcohol import will be fined from VND 20,000,000 to VND 30,000,000 for one of the following violations:

• Direct or entrusted import of semi-finished alcohol for the production of finished alcohol with an alcohol content of 5.5 degrees or higher without a alcohol trading license;
• Sale of imported semi-finished alcohol with an alcohol content of 5.5 degrees or higher to those who do not have industrial alcohol production license.
• The act of importing alcohol without passing through international border gates as prescribed shall be sanctioned according to the provisions of Article 15 of this Decree.

At the same time, apply additional penalties such as deprivation of the right to use alcohol trading license from 01 month to 03 months for violations specified at Point b, Clause 1, Article 15 of Decree 98/2020/ND–CP in case of repeated or repeat violations and apply remedial measures to forcibly surrender illegal profits obtained as a result of committing violations specified at Point b, Clause 1 of this Article.

Thus, the registration of a alcohol distribution license in the course of business is extremely important, not only increasing business reputation but also limiting risks for traders.

Who has the authority to reissue a alcohol business license

Pursuant to the provisions of Point a, Clause 1, Article 25 of Decree 105/2017/ND-CP amended and supplemented in Decree 17/2020/ND-CP, the authority to grant alcohol distribution license is the Ministry of Industry and Trade.

Regulations on the reissuance of alcohol distribution license in Vietnam

Pursuant to the provisions of Article 27 of Decree 105/2017/ND-CP amended and supplemented in Decree 17/2020/ND-CP, the reissuance of license is divided into two cases as follows:

In case the license is reissued due to expiration

Traders shall submit an application to reissue a license 30 days before the expiry date of the license. Dossiers, competence and procedures for reissuance of this Clause shall apply as prescribed in the case of new issuance, specifically as follows:

• Dossiers for reissuance of alcohol distribution license are specified in Article 21 of Decree 17/2022/ND-CP;
• The authority to re-grant belongs to the Ministry of Industry and Trade;
• Procedures for reissuance of alcohol distribution license are specified at Point c, Clause 2, Article 25 of Decree 17/2022/ND-CP.

In case of reissuance due to lost or damaged license

In this case, traders shall comply with the provisions of Clause 2 Article 27 of Decree 17/2022/ND-CP to apply for re-grant as follows:

• A dossier of application for reissuance (01 set) includes: An application for reissuance according to Form No. 03 issued together with Decree 17/2022/ND-CP and the original or a copy of the granted license (if any);
• The licensing authority shall base itself on the trader’s recorded dossier and dossier of application for reissuance of the license;
• The term of the license will remain the same.

In addition, Clause 3 of this Regulation also stipulates procedures for reissuance of license due to loss or damage:

• Merchants submit applications in person or by post or online (if applicable) to the licensing authority;
• Within 07 working days from the date of receipt of a complete and valid dossier, the competent state agency shall consider and re-grant the license according to Form No. 07 promulgated together with this Decree. In case of refusal to grant a license, a written response clearly stating the reasons therefor must be given. In case there is insufficient valid dossier, within 03 working days from the date of receipt of the dossier, the agency re-issuing the license must make a written request for supplementation.

If you need advice or learn more about the reissuance of alcohol distribution license in particular and learn more about other types of license in general, please contact Viet An Law Firm for the best support.