Circular No. 57/2018/TT-BCT dated December 26, 2018 of the Ministry of Industry and Trade on detailing a number of Articles of the Decrees related to tobacco

CIRCULAR
Detailing a number of Articles of the Decrees related to tobacco trading

Pursuant to the Government s Decree No. 98/2017/ND-CP dated August 18, 2017 defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant tothe Government s Decree No. 67/2013/ND-CP dated June 27, 2013, detailing and guiding the implementation of a number of Articles on tobacco trading of the Law on Prevention and Control of Tobacco Harms and the Decree No. 106/2017/ND-CP dated September 14, 2017 amending and supplementing a number of Articles of the Government s Decree No. 67/2013/ND-CPdated June 27, 2013;

Pursuant to the Government s Decree No. 08/2018/ND-CP dated January 15, 2018, amending a number of Decrees relevant to business investment conditions under the state management of the Ministry of Industry and Trade;

At the proposal of the Director of the Industry Agency,

The Minister of Industry and Trade promulgates the Circular detailing a number of articles of the Decrees related to tobacco trading as follows:

Chapter I
GENERAL PROVISIONS

Article 1. Scope of regulation

1. Forms of application for, and certificate of eligibility for investment in tobacco cultivation, license and lists relevant to the grant, supplement, amendment and re-grant of certificates and licenses, including: Certificate of eligibility for investment in tobacco cultivation, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products, License to buy and sell tobacco products.

2. Guidance on reporting regimes and forms; list of tobacco-specialized equipment; guidance on the registration form for the import demand of tobacco rolling papers, tobacco fibers, raw tobacco leaves, and regulations on inspection of tobacco trading.

Article 2. Subjects of application

This Circular applies to organizations and individuals trading in tobacco and conducting other activities relevant to tobacco trading in the territory of Vietnam.

Article 3. Import of raw tobaccos and tobacco rolling papers

1. Based on the amount of annual tariff quotas, the enterprise s production output, the domestic supplies of raw materials and the enterprise’s registered demand to manufacture tobacco products for domestic consumption, the Ministry Industry and Trade will consider and approve for enterprises to use raw tobaccos, tobacco rolling paper for the right purpose without exchanging and trading in any form. Enterprises shall submit registration applications as the form in Appendix 1 to this Circular.

2. Enterprises importing raw tobaccos, tobacco rolling papers for manufacture tobacco products for export or processing tobacco products for export shall submit their applications as the form in Appendix 2 to this Circular to the Ministry of Industry and Trade.

3. Enterprises importing raw tobaccos for processing and re-export or processing raw tobaccos for export shall submit their applications as the form in Appendix 3 to this Circular to the Ministry of Industry and Trade.

Chapter II
FORMS AND LIST OF APPLICATIONS FOR GRANT OF CERTIFICATE, LICENSE AND SAMPLE CERTIFICATE AND LICENSE

Article 4. Forms and list of applications for certificatesof eligibility for investment in tobacco cultivation

1. An application for a certificate of eligibility for investment in tobacco cultivation shall be made as the form provided in Appendix 4 to this Circular.

2. A general list of tobacco cultivation areas and estimated output of raw tobacco leaves shall be made as the form provided in Appendix 5 to this Circular.

3. A list of tobacco growers, locations and areas certified by commune-level People s Committees shall be made as the form provided in Appendix 6 to this Circular.

Article 5. Forms of applications for licenses to buy and sell raw tobaccos

An application for a license to buy and sell raw tobaccos shall be made as the form in Appendix 8 to this Circular.

Article 6. Forms and lists of applications for licenses to process raw tobaccos

1. An application for a license to process raw tobaccos is made as a form in Appendix 10 to this Circular.

2. A list of synchronous specialized machinery and equipment of the processing of raw tobaccos and equipment for Examining the quality of raw materials before and after being processed shall be made as the form in Appendix 11 to this Circular.

3. The list of equipment and facilities: ventilation systems, fire prevention and fighting equipment, hygrometers, thermometers, insect-fighting devices; racks or stands holding tobacco packages shall made as the form in Appendix 12 to this Circular.

Article 7. Forms and lists of applications forlicenses to manufacture tobacco products

1. An application for alicense to manufacture tobacco products, made as the form in Appendix 14 to this Circular.

2. A report on the production and business results of the enterprise in the latest 03 (three) years (if any) and expected production and business output of the next 05 (five) years shall be made as the form in Appendix 15 to this Circular.

3. A list of machinery and equipment for rolling tobaccos and making tobacco packs shall be made as the form in Appendix 16 to this Circular.

4. A list of investment in tobacco cultivation shall be made as the form in Appendix 17 to this Circular.

Article 8. Forms of applications for licenses to buy and sell tobacco products

1. An application for a tobacco product distribution license shall be made as the form in Appendix 19 to this Circular.

2. An application for a tobacco product wholesale license shall be made as the form provided in Appendix 21 to this Circular.

3. An application form for a tobacco product retail license shall be made as the form in Appendix 23 to this Circular.

4. The trader s commitment to ensure full compliance with the requirements on conditions for fire prevention and environmental protection shall be made as the form in Appendix 25 to this Circular.

Article 9. Sample certificates and licenses

1. A sample certificate of eligibility for investment in tobacco cultivation is provided in Appendix 7 to this Circular.

2. A sample license to buy and sell raw tobaccos is provided in Appendix 9 to this Circular.

3. A sample license to process raw tobaccos is provided in Appendix 13 to this Circular.

4. A sample license to manufacture tobacco products is provided in Appendix 18 to this Circular.

5. Sample licenses to buy and sell tobacco products are provided in Appendices 20, 22 and 24 to this Circular.

Chapter III
FORMS OF APPLICATIONS FOR SUPPLEMENTING, AMENDING AND RE-GRANTING CERTIFICATES, LICENSES AND SAMPLE CERTIFICATES OF SUPPLEMENTS, AMENDMENTS AND RE-GRANT OF CERTIFICATES AND LICENSES

Article 10. Forms of applications, and sample certificatesof amendments or supplements of Certificate of eligibility for investment in tobacco cultivation, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products, License to buy and sell tobacco products

1. Applications for the amendment and supplementation of amendments or supplements of Certificate of eligibility for investment in tobacco cultivation, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products, License to buy and sell tobacco products are provided in Appendices 26, 28, 30, 32, 42, 44 and 46 to this Circular.

2. Sample certificates ofamendments or supplements of Certificate of eligibility for investment in tobacco cultivation, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products, License to buy and sell tobacco products are provided in Appendices 27, 29, 31, 33, 43, 45 and 47 to this Circular.

Article 11. Forms of applications and sample certificates of re-grant of amendments or supplements ofCertificate of eligibility for investment in tobacco cultivation, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products, License to buy and sell tobacco products

1. Applications for re-grant of expiredCertificate of eligibility for investment in tobacco cultivation, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products, License buy and sale of granted tobacco productsare provided in Appendices 4, 8, 10, 14, 19, 21 and 23 of this Circular.

2. Applications for re-grant of Certificate of eligibility for investment in tobacco cultivation, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products, License buy and sale of granted tobacco products, which are lost, wholly or partially destroyed, torn, crushed or burnt, are provided in Appendices 34, 36, 38, 40, 48, 50 and 52 to this Circular. .

3. Certificates of re-grant of Certificate of eligibility for investment in tobacco cultivation, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products, License buy and sale of granted tobacco products, which are lost, wholly or partially destroyed, torn, crushed or burnt, are provided in Appendices 35, 37, 39, 41, 49, 51 and 53 to this Circular.

Chapter IV
FORMS OF REPORTS AND REPORTING REGIME

Article 12. Forms of reports and reporting regime for State management agencies in charge of industry and trade

1. Every 06 (six) months, the provincial/municipal Industry and Trade Department shall report to the Ministry of Industry and Trade on the situation of business activities and the situation of granting certificates of eligibility for investment in tobacco cultivation, licenses to buy and sell raw tobaccos, tobacco product wholesale licenses, tobacco product retail licenses and tobacco trading licenses of local traders within 20 (twenty) days after the end of the reporting period. Sample reports are provided in Appendices 54, 56 and 57 of this Circular.

2. Before January 15 every year, the provincial/municipal Department of Industry and Trade shall report to the Ministry of Industry and Trade on the situation of investment in tobacco cultivation in their localities according to the form in Appendix 55 to this Circular.

3. Every 06 (six) months, the Chamber of Industry and Trade or the Economic Chamber (specialized agencies of the People s Committees of rural districts, urban districts, towns or provincial cities hereinafter collectively referred to as the Chamber of Industry and Trade) is responsible for reporting to provincial-level Departments of Industry and Trade on business and grant of tobacco retail licenses of local traders within 10 (ten) days after the end of the reporting period according to the form in Appendix 58 to this circular.

Article 13. Forms of reports and reporting regime for enterprises

1. Every 06 (six) months, an enterprise manufacturing tobacco products or importing tobacco shall submit a report to the Ministry of Industry and Trade and the Ministry of Finance on the production of tobacco products and the import of tobacco products within 10 (ten) days at the latest from the end of the reporting period according to the form in Appendix 59 to this Circular.

2. Every 06 (six) months, an enterprise manufacturing tobacco products shall submit a report to the Ministry of Industry and Trade on the import of raw tobaccos and tobacco rolling papers within 10 (ten) days at the latest from the end of the reporting period according to the form in Appendix 60 to this Circular.

3. Every 06 (six) months, an enterprise manufacturing tobacco products shall submit a report to the Ministry of Industry and Trade on the situation of domestic raw tobacco trading in order to manufacture tobacco products for domestic consumption and for export within 10 (ten) days at the latest from the end of the reporting period according to the form in Appendix 61 to this Circular.

4. Every 06 (six) months, an enterprise investing in tobacco cultivation shall submit a report to the provincial/municipal Department of Industry and Trade on the situation of investment in tobacco cultivation within 10 (ten) days at the latest from the end of the reporting period according to the form in Appendix 62 to this Circular.

5. Every 06 (six) months, an enterprise purchasing and selling raw tobaccos shall submit a report to the agency that has granted its license to buy and sell raw tobaccos on the entrusted import and export of raw tobaccos within 10 (ten) days at the latest from the end of the reporting period according to the form in Appendix 63 to this Circular.

6. Every 06 (six) months, an enterprise processing raw tobaccos shall submit a report to the agency that has granted its license to process raw tobaccos on the situation of manufacturing, trading and processing raw tobaccos within 10 (ten) days at the latest from the end of the reporting period according to the form in Appendix 64 to this Circular.

7. Before January 31 of each year, a tobacco-trading enterprise shall submit its previous year s report to the competent agency that has granted its license to manufacture, export and process raw tobaccos according to the form in Appendix 65 to this Circular.

8. In case an enterprise imports new machinery and equipment for manufacture products for export, or replaces old machinery and equipment, before January 31 of each year, the enterprise manufacturing tobacco products shall report to the licensing agencies on the situation of import and use of tobacco machinery, equipment according to the form in Appendix 66 to this Circular.

9. Every 06 (six) months, a tobacco product supplier shall submit statistical reports on its output and types of traded tobacco products (according to the distribution, wholesale and retail systems) to the Ministry of Industry and Trade and the provincial/municipal Department of Industry and Trade where the trader is headquartered according the form in Appendices 67 and 68 to this Circular.

10. Every 06 (six) months, traders dealing in the distribution, wholesale and retail of tobacco products shall report on the business situation to the state management agencies in charge of industry and trade according to the forms in Appendices 69, 70, and 71 to this Circular.

Chapter V
PROVISIONS ON INSPECTION

Article 14. Periodic inspection

1. Based on the practical situation and the requirement of inspecting the observance of the laws on tobacco trading, competent State agencies shall elaborate annual inspection plans for each organization or individual.

2. The annual periodic inspection plan shall contain the following principle contents: Purposes, requirements of inspection; objects and scope of inspection; contents to be inspected; time and place of the inspection; funding for inspection; functional forces in charge of inspection; assignment of responsibilities to organize the inspection; report regime.

3. Before the inspection, the inspection agencies shall notify the inspection plans to organizations and individuals at least 15 (fifteen) days before the inspection date.

Article 15. Irregular inspection

The inspection agency shall carry out irregular inspection in the following cases:

1. Upon discovering that tobacco-trading organizations and individuals violate the provisions of the Government s Decree No. 67/2013/ND-CP dated June 27, 2013, detailing and guiding the implementation of a number of Articles on tobacco trading of the Law on Prevention and Control of Tobacco Harms amended and supplemented in the Decree No. 106/2017/ND-CP dated September 14, 2017 amending and supplementing a number of Articles of the Government s Decree No. 67/2013/ND-CP and the Government’s Decree No. 08/2018/ND-CP dated January 15, 2018 amending a number of Decrees relevant to conditions for business investment under State management of the Ministry of Industry and Trade (hereinafter referred to as Decree No. 67/2013/ND-CP and the amendatory and supplementary Decrees) and this Circular.

2. Information provided by a mass media agency licensed by a competent State agency, information provided in a complaint or denunciation or report of an organization or individual.

3. At the request of the superior State management agency.

4. Inspection agencies need not notify the inspection plans in advance to organizations and individuals.

Article 16. Contents of inspection

1. Examining documentation of application for Certificate of eligibility for investment in tobacco cultivation, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products, License to buy and sell tobacco products according to the provisions of Decree No. 67/2013/ND-CP and the amendatory and supplementary Decrees.

2. Examining the compliance with the following conditions: Investing in tobacco cultivation, trading in raw tobaccos, processing raw tobaccos, manufacturing tobacco products, trading in tobacco products according to the provisions of Decree No. 67/2013/ND-CP and the amendatory and supplementary Decrees.

3. Examining the compliance with the regulations on investment in renovation of equipment and technology; investment in manufacturing tobacco for export, processing tobacco for export; planning; investment in processing raw tobaccos, foreign investment in manufacturing tobacco products according to the provisions of Decree No. 67/2013/ND-CP and the amendatory and supplementary decrees.

4. Examining the compliance with the regulations on the use of specialized machinery and equipment for the manufacture of tobaccos, raw tobaccos, tobacco rolling papers and tobacco product stamps according to the provisions of Decree No. 67/2013/ND-CP and the amendatory and supplementary Decrees.

Article 17. Handling inspection results

1. Based on the inspection results, the inspection team shall make a written record of inspection right after finishing the inspection at the inspection place according to the forms in Appendices 73 and 74 to this Circular and notify the inspection results to the inspection agency and inspected organization or individual.

2. Based on the inspection results and depended on the seriousness of the violation, the inspection team shall propose the inspection agency to impose sanctions or carry out procedures for transferring dossiers of violations committed by the organization or individual to other agencies competent to sanction according to the provisions of law on sanctioning of administrative violations.

Article 18. Responsibilities and powers of inspection agencies

A business inspection agency inspecting has the following responsibilities and powers:

1. Formulating inspection plans and submitting them to competent agencies for approval.

2. Deciding to set up an inspection team to carry out the inspection according to the regular or irregular inspection plan.

3. Issuing decisions to handle them within 07 (seven) working days after receiving the inspection team s report on the suspension of tobacco trading activities.

4. Handling violations in the course of examining business activities according to relevant law provisions.

5. Notifying organizations and individuals of the relevant inspection results and conclusions.

6. Settling complaints and denunciations about inspection team s decisions and acts of inspection team’s members according to the provisions of law on complaints and denunciations.

Article 19. Responsibilities and powers of the inspection teams

During the inspection, an inspection team has the following responsibilities and powers:

1. Inspecting tobacco trading activities according to the decision on setting up the inspection team approved by competent agencies.

2. Complying with the laws and fully carrying out the inspection contents specified in Article 18 of this Circular and other law provisions on tobacco trading.

3. Summarizing and reporting on the inspection situation and results on tobacco trading activities to the provincial-level People s Committees and the Ministry of Industry and Trade.

4. Requesting inspected organizations and individuals to produce necessary relevant dossiers and documents.

5. Requesting tobacco-trading organizations and individuals that fail to comply with the provisions of the law on tobacco trading to apply violation consequence improvement measures.

Article 20. Responsibilities and powers of tobacco-trading organizations and individuals

1. Coordinating with the inspection team and the inspection agency in the course of examining tobacco trading activities at inspection places.

2. Producing dossiers and documents related to tobacco trading activities according to the provisions of Article 18 of this Circular.

3. Abiding by inspection activities of the inspection agency and the inspection team, and decisions on handling of violations by competent agencies.

4. Make reports on:

a) Situation of handling violations in the course of business to the inspection agency;

b) Observance of law provisions on tobacco trading activities at the request of competent agencies.

5. Maintaining conditions to ensure tobacco trading activities according to the provisions of laws.

6. Correcting errors stated in the inspection records at the request of the inspection agency or the inspection team.

7. Making complaints about the inspection team s conclusions according to the provisions of laws.

Chapter VI
PROVISIONS OF IMPLEMENTATION

Article 21. Organization of implementation

1. The Industry Agency shall, according to its functions and duties, assume the prime responsibility and coordinate with the units under the Ministry in performing the following tasks:

a) Receiving applications, inspecting, supervising, appraising and submitting the results to the Ministry s leaders for approval on investment in manufacturing tobacco products, License to buy and sell raw tobaccos, License to process raw tobaccos, License to manufacture tobacco products and other activities related to tobacco trading as prescribed;

b) Receiving applications, inspecting, supervising, appraising and approving tobacco import for non-commercial purposes; import of raw tobaccos and tobacco rolling papers to manufacture tobacco products for export or processing of tobacco products for export.

c) Developing inspection plans, guiding and inspecting organizations and individuals on the implementation of the provisions of Decree No. 67/2013/ND-CP, the amendatory and supplementary Decrees and this Circular.

2. The Department of Domestic Markets shall, according to its functions and duties, assume the prime responsibility and coordinate with the units under the Ministry in performing the following tasks:

a) Receiving applications, inspecting, supervising, appraising and submitting the results to the Ministry s leaders for licensing the buy and sale of tobacco products according to the provisions of this Circular;

b) Developing inspection plans, guiding and inspecting organizations and individuals on the implementation of the provisions of Decree No. 67/2013/ND-CP, the amendatory and supplementary Decrees, this Circular, and the provisions of the relevant laws.

3. The Market Surveillance Directorate shall, according to its functions, assume the prime responsibility and coordinate with the units under the Ministry in performing the following tasks:

Examining relevant organizations and individuals for compliance with the provisions of Decree No. 67/2013/ND-CP and the amendatory and supplementary Decrees, this Circular and the provisions of relevant laws.

4. The provincial/municipal Departments of Industry and Trade shall, according to its functions, assume the prime responsibility and coordinate with the concerned agencies in the provinces or municipalities in performing the following tasks:

a) Receiving applications, inspecting, supervising, appraising and issuing certificates of eligibility for investment in tobacco cultivation, licenses to buy and sell raw tobaccos, tobacco product wholesale licenses within its competence as prescribed in this Circular;

b) Guiding and inspecting the Chambers of Industry and Trade in the granting of tobacco product retail licenses according to the provisions of this Circular;

c) Developing inspection plans, guiding and inspecting local organizations and individuals on the implementation of the provisions of Decree No. 67/2013/ND-CP and the amendatory and supplementary Decrees, this Circular and the provisions of relevant laws.

5. The Chambers of Industry and Trade shall, according to its functions, assume the prime responsibility and coordinate with the concerned agencies in the locality in performing the following tasks:

a) Receiving applications, inspecting, appraising and issuing tobacco products retail licenses within its competence as prescribed in this Circular;

b) Developing inspection plans, guiding and inspecting organizations and individuals on the implementation of the provisions of Decree No. 67/2013/ND-CP and the amendatory and supplementary Decrees, this Circular and the provisions of the relevant laws.

6. Responsibilities of provincial/municipal People s Committees

People s Committees of provinces and municipalities shall be responsible for directing professional agencies to organize the implementation of Decree No. 67/2013/ND-CP and the amendatory and supplementary Decrees, this Circular and the provisions of relevant laws; organize inspection and handling of law violations on tobacco cultivation investment, buy and sale of raw materials, buy and sale of tobacco products within its jurisdiction.

7. Responsibilities of tobacco-trading organizations and individuals

a) Complying with the provisions of Decree No. 67/2013/ND-CP and the amendatory and supplementary Decrees, this Circular and the provisions of relevant laws.

b) Fully and promptly complying with the reporting regime prescribed in this Circular.

c) That a organization or individual trading in tobaccos fails to fully comply with the provisions of this Circular will serve as a basis for competent agencies to consider granting or withdrawing certificates or licenses according to the provisions of laws.

Article 22. Effect

1. This Circular takes effect from February 19, 2019, except for the provisions of Clause 2 of this Article.

2. The provisions of this Circular s forms and list of applications for licenses to manufacture tobacco products and sample licenses to manufacture tobacco products take effect on January 01, 2020.

3. Circular No. 21/2013/TT-BCT dated September 25, 2013 detailing a number of Articles of Government s Decree No. 67/2013/ND-CP dated June 27, 2013, detailing and guiding the implementation of a number of Articles on tobacco trading of the Law on Prevention and Control of Tobacco Harms shall be annulled since the effective date of this Circular, except for the provisions of Clause 4 of this Article.

4. The provisions of forms and list of applications for licenses to manufacture tobacco products and sample licenses to manufacture tobacco products provided Circular No. 21/2013/TT-BCT shall be applicable until the end of December 31, 2019.

5. In the course of implementation, individuals and organizations are requested to promptly report difficulties and problems to the Ministry of Industry and Trade so that the Ministry of Industry and Trade can resolve and consider supplementing the Circular according to its competence.