Thien Di's Reputable and Professional Liquor Distribution Permit Application Service

1. What is a Business License for Alcoholic Beverage Distribution?

A business license for alcoholic beverage distribution is a legal document issued by the government authority to organizations and individuals that meet the requirements and are permitted to produce industrial alcohol, produce handicraft alcohol for business purposes, and distribute alcoholic beverages.

2. Legal Basis:

The following regulations govern the application for an alcoholic beverage distribution license:

Decree No. 105/2017/ND-CP dated September 14, 2017, of the Government on alcoholic beverage business;
Decree No. 17/2020/ND-CP amending the Decree on business investment conditions in the field of state management of the Ministry of Industry and Trade;
Circular No. 168/2016/TT-BTC stipulating the fee rates, collection, payment, management, and use of fees for the appraisal of business activities in restricted goods and services; goods and services subject to conditional business in the field of trade, and the fee for granting a License to Establish a Commodity Exchange issued by the Minister of Finance.

3. Conditions for Granting an Alcoholic Beverage Distribution License:

The applicant must be an enterprise established in accordance with the law;
The applicant must have the legal right to use a warehouse or warehouse system with a total floor area of 150 square meters or more;
The alcoholic beverages intended for distribution must meet the food safety requirements as prescribed;
The applicant must have an alcoholic beverage distribution system in at least 02 centrally-affiliated provinces or cities (including the province or city where the enterprise's head office is located); in each centrally-affiliated province or city, there must be at least 01 wholesale alcoholic beverage trader. If the enterprise establishes a branch or business location outside the head office to distribute alcoholic beverages, it does not need the confirmation of a wholesale alcoholic beverage trader;
The applicant must have an introduction letter or a framework contract from an alcoholic beverage producer, another alcoholic beverage distributor, or an overseas alcoholic beverage supplier;
The applicant must ensure full compliance with the requirements and conditions on fire prevention and fighting, and environmental protection as prescribed.

4. Rights of Alcohol Distributors

Alcohol distributors have the following rights and obligations:

Import alcohol, purchase alcohol from domestic alcohol producers and other alcohol distributors as specified in the license.
Sell alcohol to alcohol distributors, wholesalers, retailers, and on-premises sellers within the licensed provinces and centrally-run cities.
Sell alcohol to exporters.
Directly retail alcohol at the distributor's business locations within the licensed provinces and centrally-run cities.

5. Procedures for Granting Alcohol Distribution License

Industrial alcohol producers submit one application set for a License to Distribute Alcohol directly or by mail or online (if applicable) to the Ministry of Industry and Trade.
Within 15 working days from the date of receiving a complete and valid application, the Ministry of Industry and Trade will review, evaluate, and issue a license to the distributor. In case of refusal to grant a license, a written response must be provided stating the reasons. If the application is incomplete, the licensing authority must issue a written request for additional information within 03 working days from the date of receiving the application.

6. Methods for Granting Alcohol Distribution License

By Mail
Directly submit to the Ministry of Industry and Trade's office

7. Instructions on Procedures and Documents for Applying for a Liquor Distribution License - Thiên Di

7.1. Application Documents for a Liquor Distribution License

Application for a License;
A copy of the Business Registration Certificate or equivalent legal document.
Documents on the liquor distribution system, including one of the following two types:
A copy of the principle contract, letter of confirmation, or commitment to participate in the liquor distribution system, together with a copy of the Wholesale Liquor License of the trader expected to participate in the liquor distribution system;
A copy of the Business Registration Certificate of the branch or the Business Registration Certificate of the business establishment for liquor business.
Documents related to the liquor supplier:
Copies of introductory documents or principle contracts of liquor manufacturers, other liquor distributors or foreign liquor suppliers, specifying the types;
In case the liquor supplier is a domestic trader, a copy of the Liquor Production License or Liquor Distribution License is required.

7.2. Procedures for Granting a Liquor Distribution License

To obtain a Liquor Distribution License, the following steps must be taken:

Step 1. The trader submits the application directly or by mail or online (if applicable) to the Ministry of Industry and Trade.

Step 2. Review of the application

Within 15 working days from the date of receiving all valid documents, the Ministry of Industry and Trade will review, evaluate and issue a license to the trader. In case of refusal to grant, a written response must be given stating the reasons.

If the application is not yet complete, within 03 working days from the date of receiving the application, the Ministry of Industry and Trade must issue a written request for additional documents.

7.3. Authority to Grant Liquor Distribution License

The authority to grant liquor distribution licenses is vested in the Ministry of Industry and Trade.

8. Validity of a Liquor Distribution License

According to Point b, Clause 2, Article 28 of Decree 105/2017/NĐ-CP amended and supplemented by Decree 17/2020/NĐ-CP, the validity of a liquor distribution license is 5 years.

To continue using the license after it expires, the business must apply for a renewal. Specifically:

The business must submit the renewal application at least 30 days before the license expires.
The application dossier, authority, and procedures for renewal are the same as those for new licenses, as specified in Clause 1, Article 27 of Decree 105/2017/NĐ-CP.

Notes:

A liquor distribution license is valid for 5 years.
When the license expires after 5 years, the business must submit a renewal application at least 30 days before the expiration date.
The application dossier, authority, and procedures for renewal are the same as those for new licenses.

9. Issues Businesses Need to Consider When Distributing Liquor

- Liquor is a restricted commodity. Therefore, businesses that operate without a license or fail to renew their expired license may be subject to administrative fines ranging from VND 10,000,000 to 20,000,000 for individuals and VND 20,000,000 to 40,000,000 for organizations. Additionally, the business may have its liquor distribution license revoked for 1-3 months if it is a repeat offender.

- Businesses that distribute liquor without a fixed and clear location (not in accordance with the business location specified in the license) may be fined from VND 5 million to 10 million.

- Businesses that commit any of the following violations will be fined from VND 10 million to 20 million:

a) Failing to meet the technical and equipment requirements as prescribed;

b) Not having an introduction letter or sales contract from the organization or individual producing the liquor or other liquor distributors."

- Businesses that commit any of the following violations will be fined from VND 20 million to 30 million:

a) Not having means of transportation owned or co-owned under a joint venture, joint operation, or capital contribution contract, or not having a vehicle rental contract suitable for the business scale as prescribed;

b) Not having a warehouse or warehouse system owned or co-owned under a joint venture, joint operation, or capital contribution contract, or not having a warehouse rental contract suitable for the business scale as prescribed;

c) Not having the financial capacity to ensure that the entire distribution system of the enterprise operates normally as prescribed."

- Businesses that commit any of the following violations will be fined from VND 30 million to 50 million:

a) Not having a liquor distribution system in at least 02 provinces as prescribed;

b) Distributing liquor without being an enterprise as prescribed."

In addition to the above fines, businesses may also be subject to additional penalties such as the revocation of their liquor distribution license for 1-3 months, depending on the severity of the violation and whether it is a repeat offense.

10. Thiên Di's Alcohol Distribution License Application Service

10.1. Why Choose Thiên Di?

With over 10 years of experience in product quality declaration and obtaining business licenses for alcoholic beverages (distribution, wholesale, and retail licenses) for various entities, we have successfully declared product quality for more than 100 alcohol importers and obtained distribution licenses for 50 of them.

We offer comprehensive solutions for our clients, from business establishment and license amendments to product quality declaration, business licenses for alcoholic beverages, and logo and trademark registration. By choosing Thiên Di, clients can enjoy a quick and comprehensive solution to their business needs.