On 14 September 2017, the Government promulgated Decree No. 106/2017/ND-CP amending and supplementing Decree No. 67/2013/ND-CP (“Decree 67”) on detailing some articles and execution measures in the Law on Tobacco Harm Prevention (“Decree 106”).
Under Decree 106, the tobacco business line was regarded as conditional instead of previously restricted in Decree 67. Besides, organizations, individuals producing, trading tobacco products; processing tobacco ingredients, trading tobacco ingredients and investing in growing tobacco are requested to have a license.
Also in Decree 106, some conditions on issuance of the License of trading tobacco to Tobacco Distributors, Tobacco Wholesalers and Tobacco Retailers are repealed, namely:
(i) Having means of transport under the ownership or co-ownership under a joint venture or association contract; or the contract on hiring means of transport suitable to the business scale of enterprises (at least having two (02) vehicles having loading capacity from five hundred (500) kilograms or more);
(ii) Satisfying the preservation conditions of tobacco quality in the course of transportation; and
(iii) Particularly, in respect to the Tobacco Retailers, the terms on minimum area of business place are removed from the conditions of trading tobacco.
In addition, Decree 106 regulates that traders dealing in tobacco products will not provide Tobacco Sales Contract to be issued with the tobacco trading License as previously regulated but need to meet the conditions of having the referral letters of traders operating in the same field.
Decree 106 comes into effect as from 1 November 2017.