Guide | Determining wholesale/retail for foreign-invested enterprises
| Date issued: | 07/08/2018 | Effective date: | 07/08/2018 |
| Document Type: | Documentary | Status: | Still validated |
| MINISTRY OF INDUSTRY AND TRADE | SOCIAL REPUBLIC OF VIETNAMIndependence - Freedom - Happiness |
| No.: 6219/BCT-DISCESRegarding instructions for implementation according to the provisions of Decree No. 09/2018/ND-CP | Hanoi, date 07 month 8 year 2018 |
Dear: IPIC Law Firm Limited (169 Nguyen Ngoc Vu, Trung Hoa ward, Cau Giay district, Hanoi)
Responding to the request of IPIC Law Company Limited forwarded by the Government Office under Official Dispatches No. 6982/VPCP-DMDN and No. 7308/VPCP-DMDN on instructions for implementation according to the provisions of Decree No. 09/2018/ND-CP, the Ministry of Industry and Trade has the following comments:
1. About wholesale and retail
a) According to the provisions of Clause 6, Article 3 of Decree No. 09/2018/ND-CP dated January 15, 01: “Wholesale is the activity of selling goods to wholesalers, retailers and other traders and organizations; it does not include retail activities.”
According to the above regulations, the sale of goods to other traders and organizations that do not use the goods for wholesale, retail or consumption purposes (such as in the case of enterprises, cooperatives, etc. purchasing goods for direct use in production activities, implementing services according to investment goals, registered business lines: cooperatives registered for garment production business line purchasing sewing machines for installation to serve production, purchasing fabrics, raw materials to produce garment products for sale; enterprises registered for construction services purchasing construction materials and supplies for construction and installation for projects that have won bids; enterprises registered for food and beverage supply services purchasing food and beverages to process into dishes, meals with or without drinks to serve customers on-site or take away; branches of foreign traders licensed to provide computer services purchasing supplies, components, computers for assembly and installation according to contracts signed with customers, etc.), is a wholesale activity.
b) According to the provisions of Clause 1, Article 3 of the Law on Consumer Protection: “1. Consumers are people who buy and use goods and services for consumption and living purposes of individuals, families and organizations.”
According to the provisions of Clause 7, Article 3 of Decree No. 09/2018/ND-CP: “Retail is the activity of selling goods to individuals, households, and other organizations for consumption purposes.”
According to the above regulations, organizations are also subjects purchasing goods for consumption purposes. Selling goods to organizations for consumption purposes and daily activities of the organization (for example, Representative Offices of foreign traders, enterprises buying food, drinks, stationery, etc. to serve the consumption and regular activities of officers and employees of Representative Offices and enterprises) without using them directly in the production process, or implementing services according to investment objectives and registered investment and business lines, is retail activity.
c) According to the provisions of Point a, Clause 1, Article 5 of Decree No. 09/2018/ND-CP, in order to exercise the right to distribute retail goods, foreign-invested economic organizations must carry out procedures for granting a Business License. According to the provisions of Clause 2, Article 5 of Decree No. 09/2018/ND-CP, in order to establish a retail establishment, foreign-invested economic organizations must carry out procedures for granting a License to establish a retail establishment.
Foreign-invested economic organizations shall, based on the above regulations, carry out procedures for Business Licenses and Licenses to establish retail establishments in accordance with regulations.
d) The guidance content in this section corrects the guidance content of the Ministry of Industry and Trade in Official Dispatch No. 4248/BCT-KH dated May 30, 5.
2. About how to write Business License, License to establish retail establishment
a) Decree No. 09/2018/ND-CP does not have mandatory provisions on foreign-invested economic organizations declaring the list of goods for which they exercise retail distribution rights according to HS code, name or chapter. Determining the scope of the list of goods for business and declaring the list of goods according to HS code, name or chapter... is the right of investors and economic organizations on the basis of self-balancing of needs, capacity and business plan, financial capacity and plan, scale of retail establishments, type of retail establishments (if there is a request to establish a retail establishment), convenience for economic organizations when carrying out customs clearance procedures, tax declaration in accordance with relevant legal provisions on tax, finance, and customs procedures.
The licensing authority (Department of Industry and Trade) records the content of goods in the Business License and License to establish a retail establishment based on the application dossier of the economic organization, in accordance with the results of the review and assessment of the Department of Industry and Trade on the satisfaction of licensing conditions, the suitability of the business plan and financial plan with the business scale, retail establishment scale, type of retail establishment (if the economic organization with foreign investment capital requests to establish a retail establishment), the characteristics of the goods expected to be traded, etc., in accordance with the provisions of Decree No. 09/2018/ND-CP.
The Ministry of Industry and Trade guides the Company to know./.
Recipients: - As above; - Mr. Cao Quoc Hung (for report); – Office of the Government; – VCCI; – Save: VT, KH. | TL. MINISTERDEPARTMENT OF PLANNING DEPARTMENTDuong Duy Hung |
