New Decree on alcohol production and trading
Officially effective from November 1, 2017, Decree 105/2017/ND-cp requires alcohol stamping and labeling of goods, completely replacing Decree No. 94/2012/ND-cp on production, alcohol business.
After 6 weeks from the date of issuance, from this November, Decree 105/2017/ND-CP officially valid. The main objects of application that this Decree is directed to are industrial alcohol production establishments, artisanal wine production for trading, distributing, wholesale alcohol, retail alcohol, and sell alcohol for on-site consumption. So what are the main changes compared to Decree 94/2012/ND-CP?
First, many of the conditions for the wholesale, retail and distribution of alcohol were removed or replaced:
1. Conditions of business location and warehouse
- The old regulations requiring alcohol trading businesses to have a right registered business location, ensuring technical and equipment requirements, is no longer mentioned. Particularly for alcohol retailers, instead, the new decree only requires a clear and fixed legal right to use the business location.
- The old conditions on warehouses and warehouse systems for alcohol distribution, wholesale and retail activities are no longer regulated or replaced by new regulations.
- Details of new regulations require distribution businesses to have the legal right to use warehouses or warehouse systems with a total floor area of 150m2 or more, wholesalers must have the legal right to use warehouses. or warehouse system with a total usable floor area of 50m2 or more, retailers are no longer required to have a warehouse.
2. Conditions on the financial capacity for alcohol wholesale and distribution activities are no longer valid (VND 01 billion or more for distribution activities and VND 300 million or more for wholesale activities). Thus, alcohol distribution and wholesale businesses are no longer responsible for proving their financial capacity to the regulatory agency.
3. Conditions on means of transport for alcohol distribution and wholesale enterprises are also changed. According to the old decree, a distribution enterprise must have at least 03 trucks with a load of 500kg or more, a wholesale enterprise must have at least 01 truck with a load of 500kg or more.
4. Conditions on the planning of the wine retail business system were previously announced by the Department of Industry and Trade of each province and required by alcohol retailers. However, the new regulation no longer requires this condition.
5. Conditions on the density of alcohol trading business (wholesale, retail, distribution) calculated by population have also been renewed. The old regulations limited no more than 01 licenses to distribute alcohol per 400,000 people, no more than 01 licenses to wholesale alcohol per 100,000 people, and no more than 01 licenses to retail alcohol per 1000 people.
Besides the conditions that have been removed or replaced, the new decree also adds some mandatory business conditions for alcohol wholesale, retail and distribution business:
- Wines expected to be traded must ensure food safety conditions according to regulations.
- Having a qualified distribution system for alcohol distributors and wholesalers.
Alcohol distribution businesses must have alcohol distribution systems in the area of 02 provinces or centrally-run cities or more; In each province or centrally run city, there must be at least one alcohol wholesaler. A wine wholesaler must have a liquor wholesale system in the province or centrally run city, where the trader is headquartered, with at least 03 alcohol retail traders.
- Having an introduction letter or a contract in the principle of an alcohol producer, alcohol distributor, alcohol wholesaler or overseas alcohol supplier.
- Ensure compliance with the conditions for fire and environmental protection according to regulations.
Moreover, Decree 105/2017/ND-CP also added a new business line that is selling alcohol for on-site consumption. Selling alcohol for consumption on the spot is the activity of selling alcohol directly to the buyer for consumption at the point of sale.
In general, Decree 105/2017/ND-CP changes a lot of regulations on alcohol trading conditions. The Decree takes effect from November 1, 2017, and completely replaces Decree No. 94/2012/ND-CP. Enterprises should pay attention to the new regulations to implement in case of new issuance or modification or supplementation of existing liquor business licenses.
Read the full decree here.
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