Reissue license to sell alcohol for on-site consumption in Vietnam

On-site sale of consumer alcohol is a business that is popular and used by traders. Revolving around the sale of alcohol for on-site consumption, traders need to understand the relevant regulations for the best business process. Understanding regulations related to this business is always considered an important and urgent issue. In the following article, Viet An Law will summarize the provisions on reissuance of license to sell alcohol for on-site consumption.

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 by Decree 17/2022/ND-CP on sanctioning administrative violations of the production and sale of counterfeit goods.

What is the sale of alcohol for on-site consumption?

In fact, every day, it is easy to see small forms of alcohol sales such as at restaurants, restaurants, entertainment places or at grocery stores. That’s collectively known as selling alcohol for on-site consumption.

So understand the sale of alcohol for on-site consumption means the sale of alcohol directly to the buyer for consumption at the seller’s location.

Note that wine will not include beer of all kinds, fermented juices of all kinds with an alcohol content of less than 5% by volume.

Rights and obligations of traders selling alcohol for on-site consumption

General rights and obligations of traders distributing, wholesaling and retailing alcohol and traders selling alcohol for on-site consumption

Pursuant to Clause 1 Article 18 of Decree 105/2017/ND-CP amended and supplemented by Decree 17/2020/ND-CP stipulates as follows:

• Buying and selling alcohol of legal origin;
• Post a valid copy of the license issued by the competent authority at the merchant’s alcohol selling places and may only buy and sell alcohol according to the contents stated in the issued license, except for traders selling alcohol for on-site consumption.

Rights and obligations of traders selling alcohol for on-site consumption

Pursuant to Clause 5 Article 18 of Decree 105/2017/ND-CP amended and supplemented by Decree 17/2020/ND-CP stipulates as follows:

• Purchase of alcohol from domestic alcohol producers, distribution traders, alcohol wholesalers, alcohol retail traders;
• Sell alcohol directly to buyers for consumption at merchants’ places of business.

Regulations on conditions for sale of alcohol for on-site consumption in Vietnam

Pursuant to the provisions of Article 14 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, cooperative, union of cooperatives or business households established in accordance with the provisions of law.
• Have the lawful right to use a fixed business place, clear address and have registration of on-site sale of consumer alcohol with the Economic Department or the Economic and Infrastructure Division of the district where the trader has his/her business establishment.
• Alcohol for on-site consumption must be supplied by a merchant who holds a license to manufacture, distribute, wholesale or retail alcohol.
• Where traders produce their own alcohol for sale for on-site consumption, they must obtain an industrial alcohol production license or a craft alcohol production license for business purposes as prescribed in this Decree.

Procedures for applying for a license to sell alcohol for on-site consumption in Vietnam

According to the provisions of Decree No. 17/2020/ND-CP, traders selling alcohol for on-site consumption will only have to register with the Economic Department or the Economic and Infrastructure Division under the People’s Committee of the district where the trader has its business establishment according to the following forms:

• For traders selling alcohol with an alcohol content of 5.5 degrees or higher, they will register a license according to Form No. 13 Section II issued together with Decree 17/2020/ND-CP.
• For traders trading alcohol with an alcohol content below 5.5 degrees, they will apply for a license before conducting business activities according to Form 14 Section II issued together with Decree 17/2022/ND-CP.

Sanctions for the sale of alcohol for unlicensed on-site consumption in Vietnam

Retailing alcohol without a alcohol retail license is a violation of the law. This is clearly stipulated in Clause 1, Article 7 of Decree 105/2017/ND-CP on Violations of the provisions of the law on alcohol trading, whereby the sale of alcohol without a license or inconsistent with the contents stated in the license as prescribed in the Decree is considered a violation of the law.

Retailing alcohol without a license is a violation of the law, so it will be sanctioned according to the provisions of Article 6 of Decree 98/2020/ND-CP on regulations on sanctioning administrative violations in commercial activities, production and trade in counterfeit and prohibited goods and protecting the interests of consumers. Accordingly:

• A fine ranging from VND 10,000,000 to VND 15,000,000 shall be imposed for one of the violations of trading in goods and/or services in conditional investment and business lines without a business license as prescribed;
• The competence to make minutes and sanction will be exercised by the Chairman of the People’s Committee at all levels or the captain of the market management team.

Thus, if you retail alcohol without a business license, you will be fined from VND 10,000,000 to 15,000,000. In order not to be subject to administrative penalties, you must apply for a retail alcohol license.

Who has the authority to issue license for the sale of alcohol for on-site consumption

Pursuant to the provisions of Point c, Clause 1, Article 25 of Decree 105/2017/ND-CP amended and supplemented in Decree 17/2020/ND-CP, the authority to issue license for sale of alcohol for on-site consumption is the Economic Department or the Economic and Infrastructure Department under the district-level People’s Committee.

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 re-issuance of license is divided into two cases as follows:

In case the license is reissued due to expiration

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

• Dossiers for re-issuance of alcohol distribution license are specified in Article 21 of Decree 17/2022/ND-CP;
• The authority to re-issue 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-issue as follows:

• A dossier of application for re-issuance (01 set) includes: An application for re-issuance according to Form No. 03 issued together with Decree 17/2022/ND-CP and the original or a copy of the issued license (if any);
• The licensing authority shall base itself on the trader’s recorded dossier and dossier of application for re-issuance 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-issue the license according to Form No. 07 promulgated together with this Decree. In case of refusal to issue 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 re-issuance of the license to sell alcohol for on-site consumption in particular and learn more about other types of license in general, please contact Viet An Law Firm for the best support.