IS IT NECESSARY TO HAVE A PERMISSION TO SELL COSMETICS ONLINE AND HAND-CARRIED GOODS?

Previously, selling hand-carried goods and cosmetics online was considered a side job to earn extra income, but with the benefits that this business brings such as no costs for renting premises, advertising, or paying taxes, it has brough huge profit for the seller. This form of business gradually becomes popular, even becoming the main major of many people. However, not everyone clearly understands the regulations on selling on social networks with sanctions for violations.

1. Trading goods through e-commerce

For those selling online on e-commerce media, business registration is not required. Specifically, Article 13 of Circular 47/2014/TT-BTC stipulates that traders establish e-commerce websites must be registered with the Ministry of Industry and Trade if those websites provides at least one of the following services: E-commerce trading floor; online promotions or online auctions.

At the same time, Clause 1, Article 3 of Decree 39 in 2007 of the Government clearly states that individuals trading small items, gifts, food, drinks with or without a fixed location, independent commercial activities, or other regular ones are not required to register business.

Thus, only those who establish e-commerce websites must register, while those who simply sell online on websites or mobile applications such as Facebook, Shopee, Instagram… will not have to carry out the procedure of business registration, but must still comply with the provisions in Article 37 of Decree No. 52/2013/ND-CP:

– Provide complete and accurate information specified in Article 29 of this Decree to traders and organizations providing e-commerce trading floor services when registering to use the service.

– Provide full information about goods and services according to regulations from Article 30 to Article 34 of this Decree when selling goods or providing services on the e-commerce trading floor.

– Ensure the accuracy and truthfulness of information about goods and services provided on the e-commerce trading floor.

– Implement the regulations in Section 2 Chapter II of this Decree when applying the online ordering function on the e-commerce trading floor.

– Provide information about your business situation when requested by a competent state agency to serve e-commerce statistical activities.

– Comply with the provisions of law on payment, advertising, promotion, protection of intellectual property rights, protection of consumer rights and other relevant provisions of law when selling goods or providing Providing services on the e-commerce trading floor.

– Fulfill tax obligations according to the provisions of law.

Thus, according to current legal regulations, selling individual goods on social networks (online) does not require a business registration license.

2. Sell cosmetics and hand-carried goods online

According to the law, when trading hand-carried items, you must ensure that the goods and cosmetics meet the following conditions:

– The goods have been passed through customs according to procedures for luggage of people entering or exiting the country, as stipulated in Article 59 of Decree 08/2015/ND-CP amended in Decree No. 59/2018/ND -CP;

– The quantity and type of goods are ensured when completing customs procedures;

– Goods are not on the list of items banned from import or temporarily suspended from import according to the provisions of law;

– Goods are accompanied by invoices and documents and comply with legal regulations on invoice management.

For example, imported cosmetic goods circulating on the market without accompanying invoices and documents as prescribed by law or with invoices and documents but the invoices and documents are not legal according to provisions of law on invoice management will be considered smuggled goods. In addition, imported cosmetic goods must have a certificate of free circulation for the product in the country of manufacture and a letter of authorization from the manufacturer for the distributor in Vietnam to announce on their behalf.

Therefore, although people who sell hand-carried cosmetics on social networks do not have to apply for an enterprise registration license, they must ensure license requirements related to imported goods and cosmetics trading, along with other legal business requirements. If there are not enough documents, the seller may face legal sanctions on trading imported goods or violating cosmetic declarations, or even more serious penalty on tax evasion.

3. Penalties for smuggled online goods and cosmetics

Decree 98/2020/ND-CP, effective from October 2020, sets out regulations on penalties for trading in smuggled alcohol for organizations and individuals as follows:

– For individual violators: Fine from 500,000 VND to 50 million VND depending on the value of smuggled goods as prescribed in Clause 1, Article 15 of Decree 98/2020 (currently a warning or fine or fine from 200 thousand VND to 50 million VND depending on the value of smuggled goods).

– For violating organizations: Fine from 01 million VND to 100 million VND depending on the value of smuggled goods as prescribed in Clause 1, Article 15 of Decree 98/2020 (currently a warning or fine or fine from 400 thousand VND to 100 million VND depending on the value of smuggled goods).

In case an organization or individual violates one of the cases specified in Clause 2, Article 15 of Decree 98/2020, they will be fined twice the level above (equivalent to the maximum fine). Can be up to 100 million VND for individuals or 200 million VND for organizations).

Therefore, in the case of trading hand-carried goods and cosmetics without invoices or accompanying documents as prescribed, without customs procedures, etc., it is determined to be smuggled goods according to regulations. above, that individual will be fined up to 100 million VND for the act of trading in smuggled goods.