Is it illegal to trade e-cigarette in Vietnam?

Nội dung chính

• Is it illegal to trade e-cigarette in Vietnam?
• What are violations and penalties for trading e-cigarette in Vietnam?

Is it illegal to trade e-cigarette in Vietnam?

Pursuant to Clause 2, Article 3 of the Decree 67/2013/NĐ-CP stipulating definitions of the following terms:

2. Tobacco is a product that is manufactured wholly or partially from tobacco ingredients, and in the form of cigarettes, cigars, shredded tobacco that are used for smoking pipes, smoking, chewing, or sniffing.

As e-cigarette creates smoke by heating up e-liquid, in which contains ingredients of tobacco. Therefore, e-cigarette is considered as a type of tobacco.

Because e-cigarette is considered as a type of tobacco, trading e-cigartte has to meet all of requirements as when trading tobacco.

Trading tobacco is a conditional businessline according to the Law. Therefore, trading tobacco has to meet all of requirements for the issuance of the License for tobacco retailing as prescribed in Clause 3, Article 26 of the Decree 67/2013/NĐ-CP (amended by Decree 106/2017/NĐ-CP and Decree 08/2018/NĐ-CP):

3. Requirements for the issuance of the License for tobacco retailing:

a) The applicant must be an enterprise that is duly established under the laws of Vietnam;

b) Tobacco stores shall not violate regulations on locations that sale of tobacco is banned in accordance with the provision of Clause 2 Article 25 of the 2012 Law on Prevention and control of tobacco’s harmful effects;

c) (abrogated);

d) There is a letter of introduction which is made by the tobacco distributor or the tobacco wholesaler and specifies the intended business location;

dd) (abrogated).

Entities have to apply application for the issuance of the License for tobacco retailing as prescribed in Clause 3, Article 27 of the Decree 67/2013/NĐ-CP (amended by Decree 106/2017/NĐ-CP and Decree 08/2018/NĐ-CP):

3. Application for the issuance of the License for tobacco retailing:

a) The written request for the issuance of the License for tobacco retailing;

b) A copy of the Certificate of Enterprise registration or Certificate of Business registration and the Certificate of Tax code;

c) Copies of letters of introduction which are made by tobacco distributors or tobacco wholesalers and specify the intended business location;

d) (abrogated).

As regualtions above, the Law allows entities to trade e-cigarette when entities have met all prescribed requirements.

What are violations and penalties for trading e-cigarette in Vietnam?

Pursuant to Clause 3, 6 and 7, Article 6 of the Decree 98/2020/NĐ-CP stipulating violations against regulations on business operations requiring business licenses:

3. A fine ranging from VND 10.000.000 to VND 15.000.000 shall be imposed for committing one of the following violations:

a) Failing to obtain the business license when trading in goods or services classified as conditional business lines;

b) Using an expired business license when trading in goods or services classified as conditional business lines;

c) Failing to meet business conditions during the trading in goods or services classified as conditional business lines;

d) Using the business license of another trader.

6. Additional penalties:

a) The exhibits of the violation prescribed in Point a Clause 1 of this Article shall be confiscated;

b) The business license shall be suspended for a fixed period of 01 - 03 months if one of the violations in Point b Clause 1, Clause 2 and Point c Clause 3 of this Article is repeated or re-committed.

7. Remedial measure:

The violating entity is compelled to return any benefits illegally obtained from the commission of one of the violations in Point b Clause 1, Clause 2, 3, 4 of this Article.

As trading e-cigarette or tobacco is a conditional businessline, entities trading them shall have business license, or else be fined from VND 10.000.000 to VND 15.000.000 and additional penalties of suspending business license and returning illegal benefits. 

Besides, in the case of trading e-cigarette of unknown origin, entities will be fined as prescribed in Article 17 of the Decree 98/2020/NĐ-CP or brought into account of criminal prosecution depending on the value of the goods.

Trading smuggled e-cigarette is considered as trading illegal goods. Entities trading smuggled cigarette can be brought into account of criminal prosecution for "Producing, trading illegal goods" as prescribed in Article 190 of the Criminal Code in 2015 (amended in 2017). A natural person who trades in smuggled cigarettes will face up to 15 years' imprisonment. A juridical person that trades in smuggled cigarettes will incur a fine of up to 200 mil.

As regulations above, depending on how serious the case is, trading e-cigarette shall be administrative sanctioned or brought into account of criminal prosecution

Best regards!