E-cigarette business license: Latest regulations

E-cigarette business license is a mandatory condition for individuals and businesses who want to participate in buying, selling and distributing this product. As a conditional business, registering for a license not only complies with the law but also protects the interests of traders. The following content will guide you through the process of applying for a license effectively.

What are electronic cigarettes?

Electronic cigarettes (vape, pod) are electronic devices that use batteries to heat a solution containing nicotine and other chemicals. According to Article 3 of Decree 67/2013/ND-CP, with nicotine content and similar uses to traditional cigarettes, e-cigarettes are considered a tobacco product.

Characteristic:

• Contains nicotine, an addictive and strictly controlled substance.
• Is a consumer product governed by the Law on Tobacco Harm Prevention 2012 and related legal documents.

Conditions for being granted an e-cigarette business license

E-cigarette business is a conditional profession. According to the provisions of Article 26 of Decree 67/2013/ND-CP, traders must meet the following conditions:

Conditions for granting a license to wholesale e-cigarette products are specified in Clause 2, Article 26 of the Decree as follows:

• Enterprises are established according to the provisions of law.
• The business location does not violate the regulations on locations not allowed to sell cigarettes according to Clause 2, Article 25 of the Law on Tobacco Harm Prevention 2012.
• There is an e-cigarette wholesale system with at least 2 retail traders in the province.
• Have a written introduction from tobacco product suppliers or tobacco distributors, clearly stating the expected business area.

Conditions for granting a retail license for e-cigarette products are specified in Clause 3, Article 26 of the Decree as follows:

• Traders are established according to the provisions of law.
• The business location does not violate regulations on areas where tobacco sales are not allowed, according to Clause 2, Article 25 of the Law on Tobacco Harm Prevention 2012.
• Have a written introduction from traders who distribute or wholesale tobacco products, clearly stating the expected business area.

Note:

• The e-cigarette business license is valid for 5 years. Before the expiration of 30 days, businesses must submit an application for extension.

Procedure for applying for an e-cigarette business license

Documents to prepare:

Licensing documents are specified in Clause 2, Article 27 of Decree 67/2013/ND-CP, including:

• Application for a License to wholesale tobacco products.
• Copy of Enterprise Registration Certificate, Business Registration Certificate and Tax Code Certificate.
• Copy of introductory letter from the tobacco supplier or distributor, clearly stating the business area.
• Report on business results (3 years ago) and sales contracts with tobacco suppliers, accompanied by a list of paid taxes.
• Sales organization form and distribution system management method.
• List of traders, copy of Business Registration Certificate and License to trade tobacco products (if any).

The process includes 2 main stages:

Step 1: Submit application

• Traders applying for a License to buy and sell tobacco products shall prepare 02 sets of documents as prescribed in Article 27 of this Decree.
• One set of documents is sent to the licensing authority, the remaining set is kept by the trader.

Step 2: Review and license

• Within 15 working days from the date of receipt of a complete and valid dossier, the competent authority will review, inspect, appraise and grant a License to distribute, wholesale and retail tobacco products to the trader.
• In case of refusal to grant a license, the licensing agency must respond in writing and clearly state the reason for refusal.
• If the dossier is incomplete, within 07 working days from the date of receiving the dossier, the licensing agency will send a written request to the trader to supplement the dossier.

Sanctions for violations of e-cigarette business

Trading e-cigarettes without a license or violating regulations will be handled at the following levels:

Administrative sanctions

According to Article 6 of Decree 98/2020/ND-CP, penalties for trading e-cigarette products without a license:

• 10-15 million VND: For individuals and business households.
• 20-30 million VND: For organizations and businesses.

Criminal prosecution

In case of trading e-cigarettes of smuggled or unknown origin: According to Article 190 of the Criminal Code 2015, the prison sentence is up to 15 years if the value of the goods is 300 million VND or more.

Consulting service for applying for an e-cigarette business license in Long Phan

With a team of consultants with many years of experience, Long Phan will support customers in completing procedures quickly and ensuring compliance with regulations. Services include:

• Consulting on regulations and procedures for applying for an e-cigarette business license.
• Assist in drafting necessary applications and documents.
• Representing customers to submit documents to competent agencies.
• Support in resolving and supplementing documents when arising.
• Consulting on other relevant procedures and licenses

To ensure compliance with regulations when trading e-cigarettes, you need to fully meet the conditions, take steps to apply for a business license and avoid violating relevant regulations. The team at Long Phan is ready to help you carry out procedures quickly and accurately. Contact the hotline immediately 0906735386 for detailed advice and optimization of your business processes.