Alcohol trading is a conditional business, enterprises need to apply for a license to distribute alcohol products before conducting business activities. Enterprises apply for a license to distribute alcohol when they need to import alcohol, buy alcohol from alcohol distributors, and sell alcohol to distributors, wholesalers, retailers, and on-site consumption in the province or city. be licenced.

In order to import alcohol products from abroad, through Vietnam’s international border gates, enterprises must apply for a license to distribute alcohol from the Ministry of Industry and Trade. Pursuant to Decree 98/2020/ND-CP stipulating penalties for administrative violations in commercial activities, production and trading of counterfeit and banned goods and protection of consumers’ interests.

Accordingly, for violations on alcohol import:  A fine ranging from VND 20,000,000 to VND 30,000,000 will be imposed for one of the following violations: Directly importing or entrusting the import of alcohol for sale. finished products for the production of finished wine with an alcohol content of 5.5 degrees or more without a license to trade in alcohol; Selling imported semi-finished alcohol with an alcohol content of 5.5 degrees or more to those who do not have a license to produce industrial alcohol. Penalties for importing alcohol without going through international border gates as prescribed in Article 15 of this Decree. At the same time, apply an additional sanction such as deprivation of the right to use the license to trade alcohol from 01 month to 03 months for the violations specified at point b, clause 1 of this Article in case of repeated violations or recidivism and applying the remedial measure of forcing the return of illegal profits obtained from committing the violations specified at Point b, Clause 1 of this Article.

So how does alcohol distribution work? What are the conditions and procedures for applying for a license? This article Khoa Tin will help businesses answer those questions.

1. What is a Liquor Distribution License?

Liquor distribution license is a license that allows an enterprise to import alcohol from certain foreign traders or purchase alcohol from licensed liquor manufacturers/distributors that have been issued domestically and Existing the right to distribute alcohol through the company’s domestic alcohol distribution agents. After obtaining a distribution license, businesses will be able to sell alcohol to the following subjects:

– Other enterprises that have licenses to distribute alcohol, wholesale alcohol, retail alcohol, sell alcohol for on-site consumption within the provinces and centrally run cities that have been recorded in the license for alcohol distribution have been registered. granted.

– For businesses to buy alcohol to export alcohol to foreign countries.

– Directly retail alcohol at the business’s business locations within the licensed provinces and centrally-run cities and according to the content written on the alcohol distribution license.

– Have the right to sell alcohol for on-site consumption, but must carry out registration procedures with competent state agencies according to regulations.

2. What are the documents, order and procedures for applying for a Liquor Distribution License?

According to the provisions of Decree No. 105/2017/ND-CP and Decree No. 17/2020/ND-CP, the conditions for an enterprise to be granted a Liquor Distribution License include: Having a business registration license or Certificate receive investment with full business lines, import alcohol; have a warehouse system that meets the conditions for preserving and storing wine products; having a liquor distribution system in the area of ​​2 or more provinces or centrally run cities (including the area where the enterprise’s head office is located). In each province, city, there must be at least 01 enterprise with a license to wholesale alcohol (if the enterprise already has a branch or business location outside the head office to trade alcohol, no additional certification is required. of wine wholesalers); there is a principle contract or alcohol distribution contract between a foreign enterprise and a domestic alcohol importer, or between a domestic alcohol production enterprise and an enterprise applying for a license to distribute alcohol.

Enterprises that want to apply for a license to distribute alcohol, need to prepare 01 set of paper documents including the following components:

1. An application form for a Liquor Distribution License, made according to the form;
2. A duly authenticated copy of the enterprise registration certificate or the investment registration certificate or another document of equivalent legal validity.
3. Documents proving the enterprise’s alcohol distribution system in the territory of Vietnam, including one of two types as follows:
4. Certified copy: principle contract, distribution contract or cooperation agreement on commitment to participate in the alcohol distribution system of the enterprise. Enclosed with a notarized copy of the liquor wholesale license of the trader participating in the distribution system.
5. A copy of the branch operation registration certificate or the business location certificate of the enterprise engaged in alcohol business.
6. Documents about the alcohol supplier for the enterprise applying for a license, including the following documents:
7. Certified copy and notarized translation into Vietnamese or bilingual with Vietnamese: Agent contract, Distribution contract or Letter of introduction of the wine producer, other liquor distributor or brand overseas alcohol suppliers, clearly stating the types of alcohol expected to be traded in accordance with the activities of the alcohol suppliers.
8. In case the alcohol supplier is a domestic enterprise, an additional copy of the Certificate of Business Registration, a notarized copy of the Liquor Production License or the License to distribute alcohol issued by a competent state agency is required. rights granted by Vietnam.

The order and procedures for applying for a license to distribute alcohol are as follows:

• License time: 15 working days from the date the competent state agency receives the valid application for a liquor distribution license.
• Licensing agency: Ministry of Industry and Trade.
• Validity of liquor distribution license: 05 years from the date the enterprise is granted the license. At least 30 days before the expiration of the validity period of a liquor distribution license, an enterprise must submit a dossier and carry out procedures for re-issuance of a liquor distribution license at the Ministry of Industry and Trade.

After being licensed, businesses operating in the alcohol field also need to be careful in alcohol advertising activities, specifically for the act of advertising alcohol with an alcohol content of 15 degrees or more, businesses will be punished. administrative violations from 50,000,000 VND to 70,000,000 VND according to Clause 1, Article 33 of Decree 38/2021/ND-CP issued on March 29, 2021 and effective from June 1, 2021.

Above is Khoa Tin‘s advice on what to know for alcohol distribution activities that businesses need to pay attention to when applying for permission as well as in the process of their distribution activities.

In case customers have unclear problems or need to discuss further, please call us immediately at 0983.533.005 for a free consultation.

Best regards./.