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Procedures issuance for Alcohol Wholesale License

Nowadays, with the increasing demand for alcohol, the wholesale of alcohol is more widespread and developed. However, alcohol is a drink that must meet all the conditions prescribed by law when wholesaling, and a license must be issued. So what are the conditions for merchants to wholesale alcohol? And what is the current procedure for applying for an Alcohol wholesale license? Please follow along through the following article.

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1. Definition of alcohol wholesale

Pursuant to clause 1 Article 2 of the Law on prevention and control of harmful effects of alcoholic beverages, the definition of alcohol is as follows: Alcohol refers to the alcoholic beverage obtained from the fermentation of one or a mixture of ingredients mainly including starches of cereals or sugar syrups of plants, flowers, tubers, fruits or beverages obtained from alcohol food.”

Accordingly, pursuant to clause 1 Article 3 of Decree 105/2017/ND-CP, “Alcohol does not include beer and fermented juice that contain less than 5% alcohol by volume (ABV)”.

Pursuant to Clause 6 Article 3 of Decree 09/2018/ND-CP, wholesale is defined as follows: “Wholesaling involves selling goods to wholesalers, retailers, other organizations, and traders; excluding retailing.”

From the above bases, it can be understood that the definition of wholesale alcohol is the sale of drinks containing food alcohol to wholesalers, retailers, and other organizations.

2. Legal grounds related to alcohol wholesale

Law on prevention and control of harmful effects of alcoholic beverages;

Decree 09/2018/ND-CP specifying in detail the Commercial Law and the Law on Foreign Trade Management on goods trading activities and activities directly related to the purchase and sale of goods by foreign investors and organizations with foreign-invested economies in Vietnam;

Decree 105/2017/ND-CP on the trade in alcohol;

Decree 17/2020/ND-CP amending some articles of decrees related to necessary business conditions in fields under the management of the ministry of industry and trade.

3. Conditions for wholesale alcohol

Pursuant to Article 12 of Decree 105/2017/ND-CP as amended by Clause 6, Article 6 of Decree 17/2020/ND-CP stipulates the conditions for wholesale alcohol as follows:

To be eligible for wholesale alcohol, it is necessary to meet three conditions:

First, the enterprise distributing alcohol (alcohol distributor) shall be established according to regulations of law.

Second, the alcohol distribution network shall be available in provinces/central-affiliated cities, where the enterprise’s head office is located, with at least 1 alcohol retail trader. In the case where the enterprise has established a branch or a business location outside its head office to trade in alcohol, the certification of the alcohol retail trader is not required.

Third, a written reference or an agreement in principle shall be made by another alcohol producer, distributor, or foreign alcohol supplier.

4. Dossiers for licenses for wholesale alcohol

Pursuant to Article 12 of Decree 105/2017/ND-CP as amended by Clause 6, Article 6 of Decree 17/2020/ND-CP stipulates that an application for licenses for wholesale alcohol includes:

– A completed application form provided in Form No. 1;

– A copy of the enterprise registration certificate or equivalent legal documents;

– The documents on the alcohol wholesale system include one of the following two types:

+ A copy of the agreement in principle, written confirmation, or written commitment to participating in the alcohol distribution network made by the alcohol wholesaler; a copy of the license for alcohol wholesaling indicating that the wholesaler intends to participate in the applicant’s distribution network.

+ A copy of the enterprise’s branch operation registration certificate or business location registration certificate for alcohol wholesaling.

– Documents related to the alcohol supplier:

+ A copy of the written reference or the agreement in principle made by another alcohol producer, distributor or foreign alcohol supplier specifying the expected alcohol for sale in line with other manufacturers, distributors or wholesalers;

+ A copy of the alcohol production license, distribution license or alcohol wholesale license of the alcohol suppliers.

5. Procedures for applying for an alcohol wholesale license

Traders that fully satisfy the above conditions shall carry out the procedures for granting a liquor retail license pursuant to Clause 2, Article 25 of Decree 105/2017/ND-CP as amended by Clause 19, Article 16 of Decree 17/2020/ND-CP.

For more procedure details, please see here:

Issuing Alcohol wholesale licenses in the provinces and central-affiliated cities

Issuance of amendments and supplements to the Alcohol wholesale licenses in the provinces and central-affiliated cities

Re-issuance of the Alcohol wholesale licenses in the provinces and central-affiliated cities

6. Some precautions when issuing an Alcohol wholesale license (rights and obligations of alcohol wholesalers, etc.)

– First, pursuant to Clause 20 Article 16 of Decree 17/2020/ND-CP, the effective period of the license of alcohol wholesale is 05 years. If the license expires, it must be reissued in accordance with the law;

– Second, pursuant to Article 4 of Decree 105/2017/ND-CP as amended and supplemented by Clause 1, Article 16 of Decree 17/2020/ND-CP, alcohol wholesalers with alcohol at least 5.5% abv must have a license. Thus, in the case of wholesale alcohol with an alcohol content of fewer than 5.5 degrees, there is no need to apply for a liquor wholesale license;

Third, in the process of wholesale alcohol, traders must comply with the provisions of the law on environmental protection, food safety, fire prevention, and firefighting as prescribed in Clause 1, Article 16 of Decree 17/2020/ND-CP.

Fourth, in the case after issuing an alcohol wholesale license, if there is a change in the contents of the issued license, the trader must carry out the procedures for the issuance of amendments and supplements to the license as prescribed in Article 26 Decree 17/2020/ND-CP.

Finally, for alcohol with alcohol at least 5.5 degrees or more, before January 20 of each year, the alcohol wholesaler is responsible for submitting a report on the situation of alcohol production and trading in the previous year of the unit to the state agency competent to issue permits according to Form No. 08, Form No. 09, Section II in the appendix issued together with Decree 17/2020/ND-CP.

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Source: https://bachkhoaluat.vn/cam-nang/16404/thu-tuc-cap-giay-phep-ban-buon-ruou-can-biet

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