Conditions for trading alcohol

Recently, there are some clients contacted AMI to advise on alcohol business. This is an area in the list of conditional business lines. So what is the condition for alcohol business? Finding out with us through the following article.

Alcohol production and trading activities are specified in Decree 105/2017/ND-CP, accordingly, alcohol business is divided into many different activities with specific business conditions, as follows:

Conditions for mass production of alcohol:

• The enterprise producing mass of alcohol shall be established according to regulations of the law.
• Production lines, machines, equipment and process of producing alcohol shall satisfy the estimated scale of production.
• Conditions for food safety shall be satisfied.
• Conditions for environmental safety shall be met.
• Alcoholic drinks shall be labeled in accordance with regulations.
• Technicians shall have qualifications and skills suited to alcohol production lines.

Conditions for manual alcohol production for business purposes:

• The enterprise, cooperative, cooperative joint venture or household business producing alcohol at home shall be established according to regulations of law.
• Food safety and labeling of alcohol shall be ensured.

Conditions for manual alcohol production for selling to enterprises having licenses for mass production of alcohol for re-preparation:

• An alcohol purchase agreement shall be concluded with the enterprise having the license for mass production of alcohol.
• In case of failure to sell alcohol to the enterprise having the license for mass production of alcohol, the organization or individual producing alcohol at home shall follow procedures for issuance of the license for home production of alcohol for business purposes specified herein.

Conditions for alcohol distribution:

• The enterprise distributing alcohol (alcohol distributor) shall be established according to regulations of law.
• The alcohol distributor shall be entitled to use a warehouse or warehouse network with the total floor area of at least 150 m².
• Expected alcohol for sale shall satisfy food safety requirements.
• The alcohol distribution network shall be available in at least 2 provinces/central-affiliated cities; in each province/central-affiliated city, there shall be at least an alcohol wholesaler.
• A written reference or an agreement in principle shall be made by another alcohol producer, distributor or a foreign alcohol supplier.
• All requirements for fire and environmental safety shall be satisfied

Conditions for alcohol wholesale:

• The enterprise wholesaling alcohol (alcohol wholesaler) shall be established according to regulations of law.
• The alcohol wholesaler shall be entitled to use a warehouse or warehouse network with the total floor area of at least 50 m².
• Expected alcohol for sale shall satisfy food safety requirements.
• The alcohol wholesale network shall be available in the province or central-affiliated city where the wholesaler sets up the headquarters with at least 3 alcohol retailers.
• A written reference or an agreement in principle shall be made by another alcohol producer, distributor or wholesaler.
• All requirements for fire and environmental safety shall be satisfied.

Conditions for retailing of alcohol

• The enterprise, cooperative, cooperative joint venture or household business retailing alcohol (alcohol retailer) shall be established according to regulations of law.
• The alcohol retailer shall be entitled to run a fixed store with a clear address.
• A written reference or an agreement in principle shall be made by the alcohol producer, distributor or wholesaler.
• Expected alcohol for sale shall satisfy food safety requirements.
• All requirements for fire and environmental safety shall be satisfied

Conditions for sale of alcohol for on-premises consumption

• The enterprise, cooperative, cooperative joint venture or household business selling alcohol for on-premises consumption (on-premises alcohol seller) shall be established according to regulations of law.
• The on-premises alcohol seller shall be entitled to run fixed premises with a clear address.
• Alcohol consumed on premises shall be provided by the trader having the license for alcohol production/distribution/wholesaling/retailing.
• All requirements for fire and environmental safety shall be satisfied.
• The alcohol producer producing alcohol to sell for on-premises consumption shall have the license for mass production of alcohol or license for home production of alcohol for business purposes specified herein.

According to Decree 105/2017/ND-CP, any organization or individual producing mass of alcohol or home alcohol for the purposes of trade, distribution, wholesaling, retailing or sale of on-site consumption of alcohol shall obtain a license in accordance to regulations of the laws. Organizations and individuals producing home alcohol to sell to an enterprise having the license for mass production of alcohol for re-preparation shall register with the People’s Committee of commune.

Above are some alcohol trading conditions, if you have any questions, please contact AMI so we can promptly advise and support.