ALCOHOL LICENSING SERVICES WHOLESALE

ALCOHOL LICENSING SERVICES

WHOLESALE – RETAIL OF ALCOHOL

ON-SITE ALCOHOL CONSUMPTION

OPENING A PUB – RESTAURANT BUSINESS

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Alcohol is classified as a restricted commodity and falls under conditional business sectors. Therefore, any business activities involving alcohol must comply with certain legal requirements and procedures. For on-site alcohol consumption, under current regulations, traders are no longer required to apply for a license as before. Instead, they only need to register with the Department of Economy or Department of Economy and Infrastructure at the district/county level. This article by Dai Quang Minh Lawfirm is intended to help clients better understand the process and make it easier to carry out the registration procedures in accordance with applicable laws.

In addition, Dai Quang Minh Lawfirm also provides other services, including sub-licenses, business registration, investment, foreign labor, and regular legal consultancy for both domestic and foreign enterprises.

If you need advice on on-site alcohol sales - opening a pub - restaurant, please contact us via Zalo or phone at: 0932.191.299 for advice.

I. LEGAL BASIS

- Decree No. 105/2017/ND-CP dated September 14, 2017 of the Government on alcohol trading;

- Decree No. 17/2020/ND-CP amending and supplementing a number of articles of decrees related to business investment conditions under the state management of the Ministry of Industry and Trade;

- Circular No. 168/2016/TT-BTC stipulating the rates, collection, remittance, management, and use of appraisal fees for restricted goods and services, conditional business sectors in the field of commerce, and licensing fees for the establishment of commodity exchanges issued by the Minister of Finance.

II. CONDITIONS FOR ON-SITE ALCOHOL CONSUMPTION

2.1 Conditions for retailing alcohol for on-site consumption

- The entity must be an enterprise, cooperative, cooperative union, or household business duly established in accordance with the law.

- It must have lawful rights to use a fixed business location with a clear address, and must register on-site alcohol sales with the District-level Division of Economy or the Division of Economy and Infrastructure where the business is located.

- Alcohol for on-site consumption must be supplied by traders holding valid licenses for alcohol production, distribution, wholesale, or retail.

- In cases where the trader produces alcohol for on-site consumption, they must obtain an industrial alcohol production license or a manual alcohol production license for commercial purposes in accordance with regulations.

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

- To purchase alcohol from domestic alcohol producers, alcohol distributors, alcohol wholesalers, or alcohol retailers;

- To sell alcohol directly to consumers for on-site consumption at their registered business locations.

III. DOSSIER FOR APPLICATION FOR ON-SITE ALCOHOL CONSUMPTION LICENSE

The application dossier for an on-site alcohol consumption license includes:

(1) An application form for the on-site alcohol consumption license;

(2) A copy of the Enterprise Registration Certificate or Household Business Registration Certificate;

(3) A copy of the lease/borrow agreement or documents proving lawful rights to use the premises intended for on-site alcohol sales;

(4) A copy of the alcohol purchase agreement with traders holding licenses for alcohol production, distribution, wholesale, or retail;

(5) A written commitment prepared by the trader, clearly stating compliance with all legal requirements on fire prevention and fighting, as well as environmental protection at the on-site alcohol sales location.

In practice, additional documents may also be required, including:

(6) A list of equipment used for monitoring and controlling temperature and humidity in the alcohol storage/business area;

(7) A list of fire prevention and fighting equipment.

Number of dossiers:

The enterprise shall prepare 02 sets of dossiers for submission and internal record-keeping.

Receiving and processing authority:

The competent authority responsible for receiving and processing the application is the Division of Economy or the Division of Economy and Infrastructure under the People's Committee at the district, town, or provincial city level.

IV. PROCEDURES FOR OBTAINING A WHOLESALE ALCOHOL LICENSE

4.1. Dossier for issuance of a wholesale alcohol license

Pursuant to Article 22 of Decree No. 105/2017/ND-CP, as amended by Decree No. 17/2020/ND-CP, the application dossier for a wholesale alcohol license includes:

- An application form for a wholesale alcohol license;

- A copy of the Enterprise Registration Certificate or equivalent legal document;

- Documents relating to the wholesale alcohol distribution system, including one of the following:

· A copy of a principle contract, confirmation letter, or commitment to participate in the wholesale alcohol system, together with a copy of the alcohol retail license of traders expected to join the system;

· A copy of the branch operation registration certificate or the business location registration certificate of the enterprise for alcohol trading;

- Documents relating to alcohol suppliers, including:

· Copies of introduction letters or principle contracts with domestic alcohol producers, alcohol distributors, or other wholesalers, clearly specifying the types of alcohol intended for trading in line with the business scope of such suppliers;

· Copies of alcohol production licenses, alcohol distribution licenses, or wholesale alcohol licenses of the suppliers.

4.2. Licensing authority for wholesale alcohol

The Department of Industry and Trade is the authority responsible for issuing wholesale alcohol licenses within provinces and centrally governed cities, in accordance with Clause 1, Article 25 of Decree No. 105 on alcohol trading.

V. PROCEDURES FOR OBTAINING A WHOLESALE ALCOHOL LICENSE

The steps for applying for a wholesale alcohol licenses as guided in Clause 2, Article 25 of Decree No. 105 are as follows:

Step 1: Submission of application

The trader shall submit the application dossier directly, by post, or online (where applicable) to the Department of Industry and Trade.

Step 2: Receipt and examination of the dossier

In case the dossier is incomplete or invalid, within 03 working days from the date of receipt, the licensing authority must issue a written request for supplementation.

Step 3: Appraisal and issuance of license

Within 15 working days from the receipt of a complete and valid dossier, the competent authority shall review, appraise, and issue the license to the trader.

In case of refusal, a written response stating the reasons must be provided.

VI. CONDITIONS FOR OBTAINING A RETAIL ALCOHOL LICENSE

To be granted a retail alcohol license, the following conditions must be satisfied:

· The entity must be an enterprise, cooperative, cooperative union, or household business duly established in accordance with the law;

· It must have lawful rights to use a fixed business location with a clear address;

· It must obtain an introduction letter or a principle contract from an alcohol producer, alcohol distributor, or alcohol wholesaler.

VII. PROCEDURES FOR OBTAINING A RETAIL ALCOHOL LICENSE

7.1. Application dossier

To apply for a retail alcohol license, 01 complete and valid dossier must be prepared in accordance with Article 23 of Decree No. 105/2017/ND-CP, including:

· An application form for a retail alcohol license using Form No. 01 issued together with the Decree;

· A copy of the Enterprise Registration Certificate, or registration certificate of a cooperative, cooperative union, or household business;

· A copy of the lease/borrow agreement or documents proving lawful rights to use the premises intended for retail sales;

· A copy of an introduction letter or a principle contract from an alcohol producer, alcohol distributor, or alcohol wholesaler.

7.2. Procedures for applying for a license

Pursuant to Article 25 of Decree No. 105/2017/ND-CP, as amended and supplemented by Decree No. 17/2020/ND-CP, the procedures for obtaining a retail alcohol license are as follows:

Step 1: Submission of application

Submit 01 dossier to the District-level Division of Economy or the Division of Economy and Infrastructure under the People's Committee where the retail activity is conducted, via one of the following methods:

· Direct submission;

· By post;

· Online (if eligible).

Step 2: Examination and issuance of license

· Within 10 working days from the receipt of a complete and valid dossier, the competent authority shall review, appraise, and issue the license. In case of refusal, a written response stating the reasons must be provided.

· If the dossier is incomplete or invalid, within 03 working days from the date of receipt, the licensing authority must issue a written request for supplementation.

VIII. CONDITIONS FOR ALCOHOL DISTRIBUTION

The conditions for alcohol distribution, as stipulated in Article 11 of Decree No. 105/2017/ND-CP (as amended by Decree No. 17/2020/ND-CP), are as follows:

- The entity must be an enterprise established in accordance with the law;

- It must have an alcohol distribution system in at least 02 provinces or centrally governed cities (including the locality where the head office is located). In each province or centrally governed city, there must be at least one alcohol wholesaler. In cases where the enterprise establishes branches or business locations outside its head office for alcohol trading, confirmation from alcohol wholesalers is not required;

- It must obtain an introduction letter or a principle contract from an alcohol producer, another alcohol distributor, or an overseas alcohol supplier.

IX. RIGHTS AND OBLIGATIONS OF ALCOHOL DISTRIBUTORS

Pursuant to Article 18 of Decree No. 105/2017/ND-CP (as amended by Decree No. 17/2020/ND-CP), alcohol distributors have the following rights and obligations:

- To purchase and sell alcohol with lawful origin;

- To publicly display a valid copy of the license issued by the competent authority at all alcohol sales locations and to trade only in accordance with the contents stated in the granted license, except for traders selling alcohol for on-site consumption;

- To comply with reporting regimes and other obligations as prescribed in the Decree;

- To import alcohol and purchase alcohol from domestic producers and other distributors in accordance with the licensed scope;

- To sell alcohol to distributors, wholesalers, retailers, and traders selling alcohol for on-site consumption within the licensed provinces and centrally governed cities;

- To sell alcohol to traders purchasing alcohol for export;

- To directly retail alcohol at business locations within the licensed provinces and centrally governed cities.

X. DOSSIER FOR APPLICATION FOR AN ALCOHOL DISTRIBUTION LICENSE

Pursuant to Article 21 of Decree No. 105/2017/ND-CP (as amended by Decree No. 17/2020/ND-CP), the application dossier for an alcohol distribution license includes:

- An application form for an alcohol distribution license using Form No. 01;

- A copy of the Enterprise Registration Certificate or an equivalent legal document;

- Documents relating to the alcohol distribution system, including one of the following: A copy of a principle contract, confirmation letter, or written commitment to participate in the alcohol distribution system, together with a copy of the wholesale alcohol license of traders expected to join the system; or A copy of the branch operation registration certificate or the business location registration certificate of the enterprise for alcohol trading.

- Documents relating to alcohol suppliers:

1. Copies of introduction letters or principle contracts from alcohol producers, other alcohol distributors, or overseas alcohol suppliers, clearly specifying the types of alcohol intended for trading in line with the business scope of such suppliers;

2. In cases where the alcohol supplier is a domestic trader, a copy of the alcohol production license or alcohol distribution license must be provided.

Procedures for obtaining an alcohol distribution license

- Receiving authority: Ministry of Industry and Trade;

- Processing time: Within 15 working days from the receipt of a complete and valid dossier, the competent state authority shall review, appraise, and issue the license to the trader. In case of refusal, a written response stating the reasons must be provided. In case the dossier is incomplete or invalid, within 03 working days from the date of receipt, the licensing authority must issue a written request for supplementation.

During your business operations, if you have any questions or require assistance, please feel free to contact Dai Quang Minh Lawfirm. We are always ready to support and accompany you throughout your establishment, operation, and development.

Wishing you sustainable growth and breakthrough success.

Sincerely./.