THE MINISTRY OF
INDUSTRY
AND TRADE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No.
01/2007/TT-BCT
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Hanoi, August 29,
2007
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CIRCULAR
GUIDING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE
GOVERNMENT'S DECREE No. 119/2007/ND-CP OF JULY 18, 2007, ON TOBACCO PRODUCTION
AND TRADE
THE MINISTRY OF INDUSTRY AND TRADE
Pursuant to Resolution No.
01/2007/QH12 of My 31, 2007 Of the first session of the XIIth National Assembly
of the Socialist Republic of Vietnam, on the Government's organizational
structure and the number of Deputy Prime Ministers for the XIIth tenure;
Pursuant to the Governments Decree No. 86/ 2002/ND CP of November 5, 2002,
defining the functions, tasks, powers and organizational structure of
ministries and ministerial-level agencies;
Pursuant to the Government's Decree No. 119/2007/ND-CPof July 18,2007, on
tobacco production and trade
The Ministry of Industry and
Trade guides in detail a number of articles of the Government’s Decree No.
119/2007/ND-CP of July 18, 2007, on tobacco production and trade, as follows:
I. GENERAL
PROVISIONS
1. This Circular guides
conditions for trading and processing of tobacco raw materials and conditions for
production of tobacco products; competence, order and procedures for grant,
adjustment, extension and revocation of certificates of eligibility for trading
and processing of tobacco raw materials and permits for production of tobacco
products; conditions for import and use of machinery and equipment for
exclusive use in tobacco industry, tobacco raw materials and cigarette paper;
management of investment production capacity and output of tobacco products:
management, inspection, disposal and liquidation of machinery and equipment for
exclusive use in tobacco industry.
2. This Circular applies to
domestic and foreign organizations and individuals involved in tobacco
production and trade and related activities in the Vietnamese territory.
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4. The State holds monopoly in
production of tobacco products. Only enterprises that are granted permits for
production of tobacco products by the Ministry of Industry and Trade may
produce tobacco products. Enterprises engaged in production of tobacco products
shall comply with the guidance in this Circular.
Foreign-invested enterprises
engaged in production of tobacco products may produce tobacco products within
the scope of their investment licenses and shall comply with the provisions of
Vietnamese law and the Government's Decree No. 119/2007/ND-CP of July 18, 2007,
on tobacco production and trade
The State controls the supply of
tobacco products to the market and performs the state commercial management of
imported tobacco products.
5. Special-use tobacco machinery
and equipment (specified in an appendix lo this Circular, not printed herein),
tobacco raw materials, cigarette paper (paper for rolling tobacco shreds of a
cigarette) are imports subject to specialized management by the Ministry of
Industry and Trade.
6. Investment in the processing
of tobacco raw materials and the production of cigarette paper must be in line
with the Strategy and the Master Plan of tobacco industry and the planning on
development of tobacco material zones.
7. Investment in the production
of tobacco products must be in line with the strategy and the master plan of
tobacco industry approved by the Prime Minister and ensure that the tobacco
product output does not exceed the total production capacity determined and
announced by the Ministry of Industry and Trade.
II. TRADING
IN TOBACCO RAW MATERIALS
A. Conditions for being
granted a certificate of eligibility for trading in tobacco raw materials
1. Condition on business entity
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2. Condition on material
foundation, technical equipment and facilities and personnel
a/ Having a raw material trading
establishment with a sorting and packaging section and raw material warehouses,
which must be large enough (of a total area of 500 sq meters or more) and
suitable to the business scale;
b/ Having separate warehouses
for tobacco raw materials which are furnished with a ventilation system, and
equipment and facilities for preservation of tobacco raw materials, including:
thermometers and hygrometers for checking air temperature and humidity in
warehouses; devices for worm, termite and borer extermination; sufficient
shelves or pallets for storing tobacco loads which must be arranged at least 20
cm from the ground surface and at least 50 cm from walls or columns;
c/ Having contracts with
employees who have professional qualifications or skills or experience in investment
management, technical assistance or raw material collection and purchase.
3. Conditions on business
processes suitable to business lines of tobacco raw material purchase and sale
a/ Place(s) of tobacco raw
material purchase must have signboards showing the trade name of the trader
trading In tobacco raw materials;
b/ Standards for grading tobacco
raw materials must be publicly posted up at place(s) of tobacco raw material
purchase according to current regulations, with sample raw material tobacco leaves
shown;
c/ The trader must have tobacco
growth investment contracts with tobacco growers, which are suitable to (he
business scale.
4. Condition on environmental
protection and fire and explosion prevention and fighting
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B. Competence, order and
procedures for grant of certificates of eligibility for trading to tobacco raw
materials
Provincial/municipal Industry Services
shall grant certificates of eligibility for trading in tobacco raw materials.
A dossier of application for a
certificate of eligibility comprises:
a/ An application for a
certificate of eligibility for trading in tobacco raw materials;
b/ A valid copy of the business
registration certificate;
c/ Documents concerning business
criteria and conditions specified in this Circular, inciting:
- A list of areas and a plan of
warehouses, workshops, offices and other auxiliary works.
- A list of equipment and
facilities: the ventilation system; fire prevention and fighting equipment;
hygrometers and thermometers; devices for worm, termite and borer
extermination; shelves and pallets for storing tobacco loads.
Contracts with employees and
staffs engaged in investment management, technical assistance andraw material
collection and purchase.
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- A valid copy of the
certificate of assurance of fire safety granted by a competent police
department.
3 Order and procedures for grant
of eligibility certificates
a/ Within 15 days after
receiving a complete and valid dossier of application, the provincial/municipal
Police Department shall consider and grant a certificate of eligibility for
trading in tobacco raw materials, to case of refusal, the provincial/municipal
Police Department shall reply in writing, clearly stating the season.
b/ For incomplete or invalid
dossiers, the provincial/municipal Police Department shall, within 7day after
receiving those dossiers , request in writing the dossier supplementation.
An eligibility certificate is
made in four copies: Two copies shall be kept at the provincial/municipal
Industry Service, one copy sent to the Ministry of industry and Trade, and
another sent to the applicant trader.
An eligibility certificate is
valid for five years. Thirty days before the expiration of the certificate, the
trader holding this certificate shall send a written request for certificate
renewal to the provincial/ municipal Industry Service for consideration and
renewal.
6. Traders that commit serious
violations of provisions on business conditions and other provisions in this
Circular or relevant provisions of aw will have their eligibility certificates
revoked.
III.
PROCESSING OF TOBACCO RAW MATERIALS
A. CONDITIONS FOR BEING GRANTED
A CERTIFICATE OF ELIGIBILITY FOR PROCESSING TOBACCO RAW MATERIALS
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Being an enterprise established
under law and having business registration for purchase and sale or processing
of tobacco raw materials; and having a certificate of eligibility for trading
in tobacco raw materials.
Certificates of eligibility for
processing tobacco raw materials shall be granted only to enterprises engaged
in raw material processing and equipped with chains of machinery and equipment
of stemming tobacco leaves or processing tobacco leaves into tobacco shreds or
pads and substitutes for the production on of tobacco products.
2. Condition on material
foundation, technical equipment and facilities and personnel
a/ Having a raw material
processing establishment with sorting, processing and packaging sections and
raw material warehouses, which must be suitable to the business scale and
located on a total area of 5,000 $q meters or more;
b/ Having separate warehouses
for unprocessed and processed tobacco raw materials which arc suitable to the
business scale. These warehouses must be furnished with ventilation systems,
thermometers and hygrometers for checking air temperature and humidity in
warehouses; devices for worm, termite and borer extermination; sufficient
shelves or pallets for storing tobacco loads which must be arranged at least 20
cm from the ground surface and at least 50 cm from wails or columns;
t,/ Having contracts with
employees who have professional qualifications or skills or experience in
investment management, technical assistance for growers or raw material
purchase and processing;
d/ Having complete specialized
machinery and equipment for processing tobacco raw materials.
Raw material processing chains
must be specialized and ensure industrial sanitation, labor safety and
environmental sanitation standards;
e/ Having equipment and
facilities for measurement and checking of quality of raw materials before and
after they are processed;
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3. Condition on quality, hygiene
and safety of tobacco products
Tobacco raw material processing
enterprises must satisfy quality and hygiene requirements according to Vietnam
standards and institutional standards as well as the Ministry of Health's
regulations on food quality, hygiene and safety.
4. Condition on environmental
protection and fire and explosion prevention and fighting:
Tobacco raw material processing
enterprises must have sufficient fire prevention and fighting devices and
equipment and assure environmental safety and sanitation under law.
5. Condition on business
processes suitable to the business line
a/ Place(s) of tobacco raw
material purchase must have signboards showing the trade name of the enterprise
trading in or processing tobacco raw materials;
b/ Standards for grading tobacco
raw materials must be publicly posted up at place(s) of tobacco raw material
purchase according to current regulations, with sample raw material tobacco
leaves shown;
c/ The tobacco raw material
trader must have tobacco growth investment contracts with tobacco growers and
contracts on purchase of tobacco raw materials, which are suitable to the
business scale.
6. Condition on locations of
processing establishments
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B. COMPETENCE, ORDER AND
PROCEDURES FOR GRANT OF CERTIFICATES OF ELIGIBILITY FOR PROCESSING TOBACCO RAW
MATERIALS
The Ministry of Industry and
Trade shall grant certificates of eligibility for processing tobacco raw
materials.
A dossier of application for a
certificate of eligibility for processing tobacco raw materials comprises:
a/ An application for an
eligibility certificate;.
b/ A valid copy of the business
registration certificate;
c/ A valid copy of the
certificate of eligibility for trading in tobacco raw materials;
d/ Documents concerning business
criteria and conditions, including:
- A list of areas and a plan of
workshops; sorting, processing and packaging sections; warehouses; offices and
other auxiliary works.
- A list of equipment: complete
specialized machinery and equipment for processing tobacco raw materials;
equipment for checking the quality of raw materials before and after they arc
processed; the ventilation system; fire prevention and fighting equipment;
hygrometers and thermometers; devices for worm, termite and borer extermination;
shelves and pallets for storing tobacco loads.
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- Written announcements of
quality awl hygiene standards in conformity with Vietnam standards and
institutional standards, and the Ministry of Health's regulations on food
quality, hygiene and safety.
- Contracts with employees
engaged in investment management, technical assistance and ran material
purchase and processing.
- Tobacco growth investment
contracts with tobacco growers. Raw material purchase and sale contracts with
tobacco raw material traders.
- A valid copy of the decision
approving the environmental impact assessment report or the registration
certificate of the environmental protection commitment granted by a competent
agency.
- A valid copy of the
certificate of assurance of fire safety granted by a competent firefighting
police department
3. Order and procedures for
grant of certificates of eligibility for processing tobacco raw materials
a/ Within 30 days after
receiving a complete and valid dossier of application, the Ministry of Industry
and Trade shall consider and grant a certificate of eligibility for processing
tobacco law materials. In case of refusal, the Ministry of Industry and Trade
.shall reply in writing, clearly stating the reason.
b/ For incomplete or invalid
dossiers, the Ministry of Industry and Trade shall, within 7 days after
receiving those dossiers, request in writing the dossier supplementation.
4. An eligibility certificate is
made in four copies: Two copies shall be kept at the Ministry of Industry and
Trade, one copy sent to the applying enterprise and another sent to the
Industry Service of the locality where the enterprise is located.
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6. Enterprises that commit
serious violations of provisions, on business conditions and other provision in
this Circular or relevant provisions of law, arc dissolved or fall bankrupt
will have their eligibility certificates revoked
IV.
PRODUCTION OF TOBACCO PRODUCTS
A. CONDITIONS FOR BEING GRANTED
PERMITS FOR PRODUCTION OF TOBACCO PRODUCTS
1 Condition on business entity
Any enterprise established under
law and engaged in production of tobacco products before the date of issuance
of the Government's Resolution No. 12/ 200Q7NQ-CP of August 14, 2000, on the national
policy for prevention and combat of tobacco harms in the 2000-2010 period.
2. Condition on investment in
and use of domestically grown raw material tobacco:
a/ Enterprises producing tobacco
products must invest in tobacco growing in the form of direct investment or
investment through joint ventures with tobacco raw material traders that make
direct investment in tobacco growing suitable to enterprises' production and
business scales and the approved planning on development of tobacco raw
material zones;
W Enterprises producing tobacco
products must use domestically grown raw material tobacco for the production of
tobacco products according to the Ministry of Industry and Trade's annual
plans, except for tobacco products with international brands or for export
These plans must be in line with the Strategy and the Master Plan of Vietnam's
tobacco industry and the approved planning on development of tobacco raw
material zones.
3. Condition on machinery and
equipment
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b/ Shred processing must be
completely carried out by equipment, including steamer, moisturizer, raw
material intake, leaf storing and annealing silo, shredder, shred heat-dryer,
softener, flavor sprayer, mixer and weight scales.
The shred processing chain must
be specialized and installed at a place where industrial sanitation, labor
safety and environmental sanitation standards are satisfied;
c/ Enterprises that have no
shred processing chains must enter into shred processing contracts. Units
undertaking to process shreds must satisfy the conditions specified at Point b
above;
d/ At the stages of rolling and
packaging cigars or cigarettes into packs or cartons, enterprises must use
automatic rolling and packaging machines, except for tobacco products produced
by traditional manual methods;
e/ Enterprises producing tobacco
products must have checking devices for measurement and checking of quality
standards, such as cigar or cigarette weight, circumference and decompression.
Enterprises may themselves check or hire checking service providers to check
other physical and chemical standards and tobacco hygiene standards. Checking
results must be systematically preserved for long-term monitoring;
f/ All machinery and equipment
used for production of tobacco products must be of lawful origin.
4. Condition on quality, hygiene
and safety of tobacco products
Enterprises producing tobacco
products must satisfy quality and hygiene requirements according to Vietnam
standards, institutional standards and the Ministry of Health's regulations on
hygiene and safety of tobacco products.
5. Condition on ownership of
trademarks
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6. Condition on environment and
fire and explosion prevention and fighting
Enterprises producing tobacco
products must have sufficient fire prevention and fighting devices and
equipment and assure environmental safety and sanitation in accordance with
law.
B. COMPETENCE, ORDER AND
PROCEDURES FOR GRANT OF PERMITS FOR PRODUCTION OF TOBACCO PRODUCTS
1. The Ministry of Industry and
Trade shall grant permits for production of tobacco products.
2. A dossier of application for
a permit for production of tobacco products comprises:
a/ An application for a permit
for production of tobacco products;
b/ A valid copy of the business
registration certificate;
c/ Documents concerning business
criteria and conditions specified in this Circular, including:
- A report on the enterprise's
business operation results for the last three years, clearly stating the
production output target (converted output) for each group of tobacco products.
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Documents evidencing the lawful
origin of machinery and equipment.
- Shred processing contract and
quality checking service contract (if any).
- A list of areas and a plan of
warehouses, workshops, offices and other auxiliary works.
- A valid copy of the quality
registration certificate or the quality standard conformity announcement
- Valid copies of papers
certifying the lawful ownership or use right to trademarks for tobacco
products.
- A valid copy of the decision
approving the environmental impact assessment report or the registration
certificate of the environmental protection commitment granted by a competent
agency.
- A valid copy of the
certificate of assurance of fire safety granted by a competent firefightfng
police department.
3. Procedures for grant of
permits for production of tobacco products
a/ Within 30 days after
receiving a complete and valid dossier of application, the Ministry of Industry
and Trade shall consider and grant a permit for production of tobacco products.
In case of refusal, die Ministry of Industry and Trade shall «eply in writing,
clearly stating the reason.
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4. A permit is made in four
copies: Two copies shall be kept at the Ministry of Industry and Trade, one
copy sent to the applying enterprise, and another sent to me Industry Service
of the locality where the enterprise is located.
5. A permit for production of
tobacco products is valid for five years. Thirty days before the expiration of
the permit, the enterprise shall send a written request for permit renewal to
the Ministry of Industry and Trade for consideration and renewal.
6. Enterprises producing tobacco
products that commit serious violations of provisions on conditions for
production of tobacco products and other provisions in this Circular, ore
merged or dissolved will have their permits revoked
V. INVESTMENT
IN PRODUCTION OF TOBACCO PRODUCTS
A. CAPACITY OF PRODUCTION OF TOBACCO
PRODUCTS
1. Total production capacity
means the production capacity of a complete chain for production of tobacco
products (main machinery and equipment for cigar or cigarette rolling and
packaging) and calculated for three working shifts per day by the time of
issuance of the Government's Resolution No. 12/2000/NQ-CP of August 14. 2000.
on the national policy on prevention and combat of tobacco harms in the
2000-2001 period.
2. The Ministry of Industry and
Trade shall announce the total production capacity of each unit as a basis for
investment in the production of tobacco products and import of specialized
tobacco machinery and equipment.
a./ Enterprises may invest in
raising their production capacity if they produce cigarettes for export and may
only produce and sell cigarettes at home within their determined and announced
total production capacity;
b/ Annually, units shall send
reports on cigarette production capacity investment to the Ministry of Industry
and Trade.
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1. Investors shall send their
investment reports and written requests to the Ministry of Industry and Trade
for approval of investment directions. Within 15 days after receiving written
requests of enterprises, the Ministry of Industry and Trade shall reply in
writing. In case of refusal to approve, it shall also reply, clearly stating
the reason.
2. A written request must state
the name and location of the project, relevant principal technical parameters,
production scale and output tentative plan on disposal of replaced machinery
and equipment (in case of replacement investment).
3. After obtaining written
approval of the Ministry of Industry and Trade, enterprises shall make
investment according to the order and procedures for investment and capital
construction specified by law.
4. Enterprises shall report to
the Ministry of Industry and Trade on the disposal of specialized tobacco
machinery and equipment replaced in the course of investment.
C. FOREIGN INVESTMENT IN
PRODUCTION OF TOBACCO PRODUCTS
Foreign investment in die
production of tobacco products may be licensed only in the form of joint
venture or cooperation with enterprises possessing tobacco production permits
and within the licensed production capacity.
1. Joint ventures with foreign
parties for investment in the production of tobacco products
a/ Joint-venture parties shall
send dossiers for establishment of joint ventures and joint-venture contracts
enclosed with written requests to the Ministry of Industry and Trade.
Within 30days after receiving
complete dossiers and written requests of enterprises, the Ministry of Industry
and Trade shall submit them to the Prime Minister for consideration and
decision. In case of refusal, it shall reply in writing, clearly stating the
reasons.
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c/ After obtaining written
approval of the Prime Minister, joint-venture parties shall make registration
for joint venture establishment according to current provisions of law on
investment.
2. Foreign investment in the
form of processing, production cooperation or industrial property licensing
contracts
a/ Involved parties shall send
the whole dossiers of processing, production cooperation or industrial property
licensing contracts enclosed with written requests to the Ministry of Industry
and Trade.
Within 30 days after receiving
complete dossiers and written requests of enterprises, the Ministry of Industry
and Trade shall submit them to the Prime Minister for consideration and
decision. In case of refusal, it shall reply enterprises in writing, clearly
stating the reasons;
b/ A written request must state
principal contents of the processing, production cooperation or industrial
property licensing contract; production scale and output of each kind of
tobacco products, and tentative plans on investment in machinery and equipment
and disposal of replaced machinery and equipment (if any);
c/ After obtaining written
approval of the Prime Minister, involved parties shall may perform the
processing, production cooperation or industrial property licensing contract;
d/ Enterprises currently
producing tobacco products under processing, production cooperation or
industrial property licensing contracts with foreign parties shall send all
dossiers and written requests as specified at Points a and b above to the
Ministry of Industry and Trade for consideration and determination of the
production scale and output of each kind of tobacco products.
3. When making intensive
investment, enterprises shall report to the Ministry of Industry and Trade on
results of disposal of specialized tobacco machinery and equipment which are no
longer used or are liquidated, and take full responsibility for the disposal
D. PRODUCTION OUTPUT OF TOBACCO
PRODUCTS
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2. Enterprises producing
foreign-brand tobacco products may not produce them in excess of the permitted
output For foreign tobacco brands under which permitted outputs of products are
not yet determined, enterprises shall send all dossiers as specified in Section
C of Part V above to the Ministry of Industry and Trade for consideration and
determination of the production scale and output.
3. Annually, enterprises shall
send their statistical reports on the output of each kind of tobacco products
to the Ministry of Industry and Trade.
VI. IMPORT OF
SPECIALIZED TOBACCO EQUIPMENT, TOBACCO RAW MATERIALS AND CIGARETTE PAPER
1. Specialized tobacco machinery
and equipment, tobacco raw materials and cigarette paper are imports subject to
specialized management by the Ministry of Industry and Trade.
Enterprises having permits for
prediction of tobacco products may import the above goods.
Enterprises having eligibility
certificates for processing tobacco raw materials may import specialized
tobacco machinery and equipment of various kinds suitable to the stages of
tobacco raw material processing, and import tobacco raw materials.
The Vietnam Tobacco Corporation
shall receive and distribute import quotas to its member units
2. Enterprises eligible for
import of specialized tobacco machinery and equipment, tobacco raw materials
and cigarette paper may directly or entrust import and export business units to
import these goods.
3. Import of specialized tobacco
machinery and equipment
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b/ Investors shall send project
dossiers already approved by competent authorities, copies of the Ministry of
Industry and Trade's written approvals and written requests for import of
machinery and equipment to the Ministry of Industry and Trade;
c/ Within 7 days after receiving
complete dossiers of enterprises, the Ministry of Industry and Trade shall base
themselves on approved investment projects, approve or disapprove in writing
the import of machinery and equipment by die enterprises.
4. Import of tobacco raw
materials and cigarette paper for domestic production and sale of cigarettes
a/ By November 10 every year,
enterprises producing tobacco products or processing tobacco raw materials
shall send reports on their needs for import of tobacco raw materials and
cigarette paper of the following year to the Ministry of Industry and Trade;
b/ For raw material tobacco
leaves imported within their import quotas, enterprises shall send applications
for registration for quota-based import to the Ministry of Industry and Trade;
c/ By December 15 every year, based
on the production output and the Vietnam Tobacco Corporation’s report on
domestic supply of raw materials and the total import quota for raw material
tobacco leaves, the Ministry of Industry and Trade shall issue written notices
on import quotas to concerned enterprises and agencies;
d/ Imported tobacco raw
materials and cigarette paper may only be used for the production of tobacco
products under production plans of enterprises and must not to sold on the
market.
5. Import of tobacco raw
materials and cigarette paper for export production
Enterprises shall I send export
production contracts and written requests for permission for import of tobacco
raw materials and cigarette paper to the Ministry of Industry and Trade. Based
on these requests, the production capacity of enterprises and relevant
dossiers, the Ministry of Industry and Trade shall, within 7 days after
receiving complete dossiers and written requests of enterprises, notify in
writing import plans to concerned enterprises and agencies.
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Only enterprises having permits
for production of tobacco products or certificates of eligibility for
processing tobacco raw materials may perform contracts for export processing of
tobacco raw materials.
Enterprises shall send export
processing contracts and their written requests to the Ministry of Industry and
Trade. Based on these requests and the production capacity of enterprises and
relevant dossiers, the Ministry of Industry and Trade shall, within 7 days
after receiving complete dossiers and written requests of enterprises, permit
or refuse in writing to permit enterprises to perform those contracts.
7. Quarterly, enterprises
producing tobacco products shall report on the import and use of specialized
tobacco machinery and equipment, tobacco raw materials and cigarette paper
imported in the quarter to the Ministry of Industry and Trade.
VII.
MANAGEMENT, CONTROL AND DISPOSAL OF SPECIALIZED TOBACCO MACHINERY AND EQUIPMENT
1. Use of specialized tobacco
machinery and equipment
a/ Enterprises having permits
for production of tobacco products may use specialized tobacco machinery and
equipment for processing tobacco raw materials and producing tobacco products;
b/ Enterprises having
certificates of eligibility for processing tobacco raw materials may use
specialized tobacco machinery and equipment suitable to the stages of
processing tobacco raw materials;
c/ Organizations and individuals
having no permits for production of tobacco products or certificates of
eligibility for processing tobacco raw materials may not use specialized
tobacco machinery and equipment in any form.
2. Specialized tobacco machinery
and equipment not of lawful origin must be confiscated and disposed of according
to law.
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They were imported before the
date of issuance of the Prime Minister's Directive No. 13/1999/CT-TTg of May
12,1999, without valid import papers and procedures.
They were imported after the
effective date of the Prime Minister's Directive No. 13/1999/CT-TTg of May 12,
1999, without valid import papers and procedures and written approvals of the
Ministry of Industry and Trade (former Ministry of Industry).
b/ Confiscated specialized
tobacco machinery and equipment shall be disposed of under current regulations
and may be permitted to be sold only to enterprises with permits for production
of tobacco products.
3. The sale, export, re-export
and liquidation of specialized tobacco machinery and equipment of enterprises
producing tobacco products comply with relevant provisions of law and the
following provisions:
a/ Enterprises may only sell
machinery and equipment which remain usable to enterprises with cigarette
production permits, or export or re-export them to foreign countries;
b/ Machinery and equipment which
are no longer usable or are liquidated must be destroyed under the supervision
of a liquidation council set up by the Ministry of Industry and Trade;
c/ Enterprises shall compile
liquidation dossiers for machinery and equipment that need to be liquidated,
work out liquidation plans and send them together with written requests for
liquidation to the Ministry of Industry and Trade. Within 15 days after
receiving written requests of enterprises, the Ministry of Industry and Trade
shall make decision to set up a liquidation council in charge of supervising
the destruction of machinery and equipment:
d/ Enterprises shall report on
results of machinery and equipment sale and liquidation to the Ministry of
Industry and Trade.
4. The Ministry of Industry and
Trade shall assume the prime responsibility for, and coordinate with the
Police, Market Management and Customs in, organizing inspection, detection and
disposal of unlawful machinery and equipment for production of tobacco
products.
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1. Organization of
implementation
The Department for Consumer
Goods and Food Industry shall assume the prime responsibility for, and coordinate
with units under the Ministry of Industry and Trade in:
- Organizing the receipt of
dossiers, inspecting, supervising, examining and submitting to the Ministry's
leadership for approval investment policies of tobacco industry, production
capacity and output of tobacco products; granting certificates of eligibility
for processing tobacco raw materials and-permits for production of tobacco
products; managing the import and use of specialized tobacco machinery and
equipment, tobacco raw materials, cigarette paper, and contracts for export
processing of tobacco raw materials; inspecting, disposing of and liquidating
specialized tobacco machinery and equipment under this Circular.
- Organizing, guiding and
inspecting organizations and individuals in the implementation of the
provisions of the Government's Decree No. 119/2007/ ND-CP of July 18, 2007, on
tobacco production and trade, this Circular and relevant provisions of law on
tobacco production and trade.
Provincial-level Industry Services
shall organize the receipt, inspection, supervision and examination of dossiers
and grant certificates of eligibility for trading in tobacco raw materials
under this Circular.
2. Handling of violations
Organizations and individuals
that commit acts of violation of this Circular and relevant provisions of law
shall, depending on the severity of their violations, be disciplined,
administratively sanctioned or examined for penal liability. If causing damage,
they shall pay compensations therefor according to law.
3. Implementation effect
This Circular takes effect 15
days after its publication in "CONG BAO." All previous stipulations
on tobacco production and trade which arc contrary to this Circular are
annulled
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Within 90 days after the
effective date of this Circular, enterprises that satisfy all the conditions
for processing tobacco raw materials specified in Section A of Pan II and wish
to continue producing or processing tobacco raw materials shall submit dossiers
of application for certificates of eligibility for processing tobacco raw
materials to the Ministry of Industry and Trade. These traders may continue
their operation until the Ministry of Industry and Trade grant or refuse to
grant such certificates.
Within 90 days after the
effective date of this Circular, enterprises that satisfy all the conditions
for production of tobacco products specified in Section A of Part IV and wish
to continue producing tobacco products shall submit dossiers of application for
permits for production of tobacco products to the Ministry of Industry and
Trade. These traders may continue their operation until the Ministry of
Industry and Trade grant or refuse to grant such permits.
Organizations and individuals
engaged in the trading m processing of tobacco raw materials; investment in or
production of tobacco products; import of specialized tobacco machinery and
equipment, tobacco raw materials and cigarette paper shall strictly comply with
the guidance in this Circular.
Problems arising in the course
of implementation should be reported by concerned ordanizations and individuals
to the Ministry of Industry and Trade for timely settlement.
FOR THE MINISTER
OF INDUSTRY AND TRADE
VICE MINISTER
Chau Hue Cam
APPENDIX
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I. CHAIN FOR PROCESSING
TOBACCO RAW MATERIALS
A. STAGE OF PROCESSING TOBACCO
LEAVES
1. Leaf tip cutter
2. Moisturizing cylinder
3. Leaf annealing chamber
(storing and annealing silo)
4. Leaf heat-dryer (heat-drying,
refrigeration, softening)
5. Leaf load weighing and
compressing system
B. STAGE OF PROCESSING TOBACCO
STEMS
1. Cylinder for moisturizing
stems for the first lime
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3. Stem-leaf separating system
4. Stem heat-dryer (heat drying,
refrigeration, softening)
5. Stem sorter and cleaner
6. Stem load weighing and
compressing system
II. CHAIN FOR PROCESSLNG
TOBACCO SHREDS
A. LEGAL STAGE
1. Vacuum steaming equipment %
2. Leaf tip cutter
3. Leaf moisturizing cylinder
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5. Leaf annealing chamber
(storing and annealing silo)
6. Metal detector
7. Leaf shredder
8. Shred heaving equipment
9. Leaf heat-dryer (heat-drying,
refrigeration, softening)
10. System of weight scales
B. STEMMING STAGE
1. Stemming machine
2. Cylinder for moisturizing
stems for the first time
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4. Cylinder for moisturizing
stems for the second time
5. Stem mill
6. Stem s shredder
7. Stem heaving equipment
8. Stem heat dryer
9. Stem separator
10. Stem annealing chamber (stem
shred annealing silo)
11. System of weight scales
C. SHRED MIXING STAGE
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2. Shred annealing chamber
(shred annealing silo)
3. Shred conveying system
(aerodynamic or mechanical)
III. MACHINERY AND EQUIPMENT
FOR PRODUCTION OF CIGARETTES
A. STAGE OF ROLLING CIGARETTES
AND FITTING FILTER TIPS
1. Cigarette rolling machine
2. Filter tip fitting machine
3. Tray intake machine
B. PACKAGING STAGE
1. Pack packaging machine
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3. Carton packaging machine
4. Carton cellophane wrapping
machine