(2023.09.20-ны өдрийн орчуулга)                                                    Unofficial translation

LAW OF MONGOLIA

July 05, 2022                                                                                               Ulaanbaatar city

ON CONTROL OF THE CIRCULATION OF ALCOHOLIC BEVERAGES AND COMBATING ALCOHOLISM

/Revised edition/

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the Law

1.1.The purpose of this Law is to regulate relations in connection with producing, importing, exporting, selling, and using, and serving  alcoholic beverages, and preventing and combating against alcoholism.

Article 2.Legislation on the control of the circulation of alcoholic beverages and combating alcoholism

2.1.The legislation on control of the circulation of alcoholic beverages and combating alcoholism shall consist of the Constitution of Mongolia, the Law on Permits, the Law on Prevention of Crimes and Violations, the Law on Food, the Law on Ensuring the Safety of Food Products, the Law on Hygiene, the Law on Customs, this Law, and the legislation enacted in conformity with these laws.

2.2.If an international treaty, to which Mongolia is a party, provides otherwise than this Law, the provision of the international treaty shall prevail.

Article 3.Scope of the application of the Law

3.1.This Law shall not apply to the following relations:

3.1.1.to produce alcoholic beverages by using  a traditional technology, and natural raw materials, and products for the purposes of not making a profit and for personal use;

3.1.2.to pass through the customs border the alcoholic beverages for personal consumption of passenger free from customs duties and other taxes;

3.1.3.to pass through the customs border for the purposes to participate in an international fair, and to present product samples and models, or to obtain special permit to analyze them by the competent authorities of Mongolia and foreign states, to export and import;

3.2.The species of alcoholic beverages, and the amount to be carried across the customs border shall be determined by the Head of the state administrative body in charge of customs matters.

Article 4.Definition of terms of the Law

4.1.The following terms used in this Law shall be interpreted as the follows:

4.1.1."Alcoholic beverage" means spirit produced from food-grade raw materials, all types of alcohol, wine, and beer, regardless of nomenclature, with a hardness of more than 2%;

4.1.2."Circulation of alcoholic beverages" means producing, importing, exporting, selling, consuming, and serving of alcoholic beverages;

4.1.3."Hardness" means the amount of ethanol contained in an alcoholic beverage expressed as a percentage by volume.

CHAPTER TWO

PRODUCTION OF ALCOHOLIC BEVERAGES

Article 5.Special permit for producing alcoholic beverages

5.1.The Government shall determine the number of special permits for producing alcoholic beverages by taking into account of density and location of population, as well as the factory capacity.

5.2.The special permit for producing the alcoholic beverages other than those produced by using traditional technology shall be issued by auction, and  the Government shall approve the procedure for organizing auction based on the proposal of the Cabinet member in charge of food matters.

5.3.The special permit for producing the alcoholic beverages other than those produced by using traditional technology shall be issued by the Cabinet member in charge of food matters based on the proposal of the tax authority, and the conclusion of the relevant state inspector in accordance with procedure specified in the paragraph 5.2 of this Law.

/This paragraph was amended by the law as of November 11, 2022/

5.4.Special permits for alcoholic beverages produced by using traditional technology shall be issued, extended, suspended, restored, and revoked by Governors of aimags and the Capital city, as well as Governors of free zones based on the opinions and conclusions of the competent authority authorized to conduct inspection in the respective territory.

/This paragraph was amended by the law as of November 11, 2022/

5.5.The production of alcoholic beverages shall be carried out on the basis of a special permit issued in accordance with the procedure specified in this Law.

5.6.A special permit for the production of alcoholic beverages shall be issued to legal entities for profit.

5.7.The special permit for the production of alcoholic beverages shall include information on the types of alcoholic beverages, production methods, raw materials to be used, location of the factory, and production capacity.

5.8.When changing the type of alcoholic beverages to be produced, the location of the factory,  or the production of new types of alcoholic beverages, the special permit specified in paragraphs 5.3 and 5.4 of this Law shall be changed. 

5.9.It shall be prohibited to the license holder of the production of alcoholic beverages from transferring or using the respective license to others through the means of selling, gifting, pledging, or renting it.

5.10.The relations in connection with the producing alcoholic beverages other those not regulated by this Law shall be regulated by the Law on Permits.

/This paragraph was added by the law as of January 06, 2023/

Article 6.Documents to be completed in obtaining a special permit to produce the alcoholic beverages

6.1.An applicant for the special permit specified in paragraphs 5.3 and 5.4 of this Law shall complete the following documents:

6.1.1.application requesting for a special permit;

6.1.2.receipt of payment of the state stamp duty;

6.1.3.the project documents of factory of alcoholic beverages;

6.1.4.financial statements of the last three years, certified by an auditing legal entity institution, if previously operating;

6.1.5.information about industrial equipment, their quality, standards and ownership;

6.1.6.the documents specifying the types, quantities, and industrial capacity of alcoholic beverages to be produced;

6.1.7.installation of equipment for reporting and registering the quantity and hardness of each manufactured product, and the calculation for connecting it to the integrated network;

6.1.8.the conclusion of the state administrative body in charge of tax matters on whether or not the equipment to affix an excise tax stamp with a unique electronic data code, and to connect it to the integrated database of tax registration and information meet the requirements;

6.1.9.information on fund sources and professional human resources necessary for the implementation of the project specified in sub-paragraph 6.1.3 of this Law;

6.1.10.reference by the tax authority defining have no tax debt;

6.1.11.to have installed video recording tools and obtained a proposal from the police organization in order to ensure the safety of the external environment of the building where the activity is to be carried out.

6.2.The list of documents specified in sub-paragraph 6.1.3 of this Law shall be determined by the state central administrative body in charge of food matters.

Article 7.The requirements for the special permit holder to product the alcoholic beverages

7.1.The holder of a special permit for the production of alcoholic beverages shall meet the following requirements in addition to the general requirements on supplying alcoholic beverages for sale and service, which meet the requirements of standards, technical regulations, quality, and safety:

7.1.1.to have buildings, warehouses, equipment, vehicles, and technical instructions built according to the design reviewed and certified by the competent authority and complying with standards and technical regulations;

7.1.2.to install equipment for reporting and registering the quantity and hardness of manufactured products, and to have created technical conditions and opportunities to connect it to the integrated network;

7.1.3.to have a professional human resource to conduct internal monitoring in each production stages and to be fully in charge of the quality, hygiene, and safety of products and raw materials;

7.1.4.to have a laboratory to check and verify the quality and safety of manufactured products as well as raw materials and products to be used in production;

7.1.5.to have connected to the electronic payment receipt system, and integrated database of the registration and information of the taxation;

7.1.6.to have an equipment for affixing excise tax stamps and reporting data which specified in sub-paragraph 5.1.5 of the Law on Excise Tax Stamps;

7.1.7.to have done an environmental impact assessment;

7.1.8.to issue electronic payment receipts for every trade, and register every purchase of spirit, and every sale of alcoholic beverages in accordance with the procedure specified in paragraph 38.7 of this Law.

7.2.If a holder of a special permit for the production of alcoholic beverages imports containers, packages, and bundles with excise tax stamps of alcoholic beverages, it may not have the equipment specified in paragraph 7.1 of this Law.

Article 8.Term of the special permit for producing alcoholic beverages, and its extension

8.1.The special permit for producing alcoholic beverages can be issued for the period of 10 years, and it can be extended for the same period per each time. Requests and materials to obtain and extend special permits can be decided by electronically. The documents specified in sub-paragraphs 6.1.1, 6.1.2, 6.1.4, 6.1.5, 6.1.6, 6.1.7, 6.1.8, 6.1.10, and 6.1.11 of Article 6 of this Law shall be completed for extending the term of a special permit.

/This paragraph was amended by the law as of January 06, 2023/

8.2.A holder of the special permit shall adhere to the procedure specified in Article 5.5 of the Law on Permits when applying a request to extend the term of special permit.

8.3.A competent body shall adhere to a procedure specified in Article 5.5 of the Law on Permits when extending the special permit, and it cannot be extended more than 10 years.

/This paragraph was amended by the law as of January 06, 2023/

8.4.The term of the special permit shall not be extended if the conditions and requirements of the special permit for producing alcoholic beverages are violated

8.5.The term of the special permit shall not be extended if the holder has tax debt.

Article 9.Suspending and restoring the special permit for producing alcoholic beverages

9.1.The special permit for producing the alcoholic beverages shall be suspended in the following cases in addition to the provisions specified in sub-paragraphs 1.1 and 1.2 of paragraph 1 of Article 6.1 of the Law on Permits:

9.1.1.if the defects or violations which causing to immediately terminate or could not be removed upon giving the time-framed assignment were detected in the production of alcoholic beverages;

9.1.2.if failed to perform the legal requirements of the competent authority which is authorized to conduct inspection to comply with the requirements specified in the legislation within the specified time;

9.1.3.if failed to enter the information about quantity of manufactured products specified in paragraph 38.1 of this Law;

9.1.4.if made obstruction to the activities on conducting inspection into equipment on registering and reporting the manufactory equipment, manufactured products, their quality and safety, and quantity of manufactured products, as well as the hardness.

9.2.The special permit for producing alcoholic beverages can be suspended for purpose of eliminating violations specified in paragraph 9.1 of this Law for the period of up to three months, and if submitted a justifiable request, it shall be extended for the period of up to three months, and if the violations are eliminated, it shall be restored.

Article 10.Revocation of the special permit for producing alcoholic beverages

10.1.The special permit for producing alcoholic beverages shall have revoked in the following cases in addition to the sub-paragraphs 1.2 and 1.3 of paragraph 1 of Article 6.2 of the Law on Permits:

10.1.1.if the holder of special permit for producing alcoholic beverages is liquidated;

10.1.2.if the holder of special permit submitted a request to terminate the special permit;

10.1.3.if it is determined by the decision of the competent authority that the documents specified in paragraph 6.1 of this Law was made falsely, or the documents contained false information;

10.1.4.if sold or transferred to others the alcoholic beverages without an excise tax stamp specified in paragraph 37.2 of this Law, or sold the alcoholic beverages by making falsely an excise tax stamp, or having made them falsely under the order, or using a fake excise tax stamp, or by affixing the fake excise tax stamp;

10.1.5.if the alcoholic beverages were manufactured during the term of suspending the special permit in accordance with the ground specified in paragraph 9.1 of this Law;

10.1.6.if failed to send the information about quantity of manufactured products within the specified period, or submitted the false information to the competent authority which authorized to conduct inspection specified in paragraph 35.1 of this Law two or more times in a year;

10.1.7.if manufactured, and sold alcoholic beverages that did not meet the standard and technical regulations;

10.1.8.if failed to fulfill the normal operation of the equipment for registering and reporting the quantity and hardness of manufactured products, or intentionally damaged, destroyed, moved the seal of it;

10.1.9.if failed to remove the violation during the term of suspending of the special permit specified in paragraph 9.2 of this Law;

10.1.10.unless otherwise stipulated in the law, if failed use the established minimum manufacturing capacity;

10.1.11.if assigned or transferred the excise tax stamp to others;

10.1.12.if failed to engage in producing activities of alcoholic beverages for the period of two or more years after the issuance of the special permit;

10.1.13.if the special permit for the production of alcoholic beverages was transferred or used by the others in the form of selling, gifting, renting, or pledging it.

10.2.In case of revocation of the special permit in accordance with paragraph 10.1 of this Law, it shall be prohibited to re-issue the special permit for the production of alcoholic beverages in the respective premises and location of the factory for a period of three years.

10.3.If it is determined that the case specified in paragraph 10.1 of this Law has occurred, the proposal to revoke the special permit shall be submitted to the Cabinet member in charge of food issues, and the production of alcoholic beverages shall be suspended until it is resolved.

Article 11.The requirements for producing alcoholic beverages

11.1.Production of alcoholic beverages shall be carried out in accordance with technological procedures, sanitary and hygienic conditions, and approved standards using dedicated equipment with metered input and output of the line.

11.2.The main techniques and equipment to be used in the production of alcoholic beverages shall be in compliance with technical regulations.

11.3.The information specified in paragraph 38.1 of this Law shall be obliged to be inserted into the database.

11.4.The alcoholic beverages with the same ingredients, raw materials, and hardness shall be produced only under one proper name.

11.5.The manufacturer of alcoholic beverages shall have established a recall policy and mechanism with registration ensuring the privacy of the product to prevent counterfeit products.

11.6.The equipment specified in paragraph 11.1 of this Law shall be connected to the integrated database of registration and information of the taxation and electronic database of the state central administrative body in charge of food matters, and the requirements for equipment as well as the procedures on connecting to the integrated network and monitoring its operations shall be approved jointly by Cabinet members in charge of food and financial and budget matters.

Article 12.The labeling and packaging requirements for alcoholic beverages

12.1.The alcoholic beverages that were made in Mongolia shall have a labeling which includes the following information:

12.1.1.types of alcoholic beverages, and serial number;

12.1.2.name, and address of manufacturer of alcoholic beverages;

12.1.3.package size;

12.1.4.number and designation of the ingredient and food additive;

12.1.5.date of manufacture, and storage conditions;

12.1.6.hardness of alcoholic beverages;

12.1.7.standard and technical regulation;

12.1.8.warnings in regards with the health effects caused due to alcoholic beverages.

12.2.Labeling of alcoholic beverages may include the information in regards with introducing trademarks, proper habits, and quality management systems.

12.3.Cabinet members in charge of food and health matters shall approve jointly the requirements for labeling the alcoholic beverages, and warning format.

12.4.The labeling of alcoholic beverages to be made in Mongolia shall be in the Mongolian language, and in case of exportation to foreign countries, the paragraph 12.1 of this Law may not be followed.

12.5.The holder of the special permit to produce the alcoholic beverages shall report the changes to be made in names and packaging sizes of alcoholic beverages from time to time to state administrative body in charge of taxation matters as well as to the state central administrative body in charge of food matters.

12.6.It shall be prohibited to pack alcoholic beverages containing 18 or more percent  hardness of ethanol in the size of less than 0.33 liters and/or more than 1 liter, except for special purpose and order supply for export, aircraft services, duty-free shops and hotels.

12.7.The alcoholic beverages shall have the containers, bundles, packages, and corks with purpose of food designation.

12.8.The holder of the special permit to produce the alcoholic beverages shall implement policies and activities to withdraw and recycle the bottles and containers of alcoholic beverages.

12.9.If a person other than a producer of alcoholic beverages enters containers, bundles, packages, corks, and labeling of alcoholic beverages through the customs border, it shall be based on the contract concluded with the holder of the special permit for the production of alcoholic beverages of the respective proper name.

Article 13.The places prohibited to engage in producing the alcoholic beverages

13.1.It shall be prohibited to produce the alcoholic beverages in the following places:

13.1.1.the offices, the buildings, and the lands possessed by the state organizations or where their operation being conducted;

13.1.2.kindergartens, schools of all levels, hospitals, sanatoriums, cultural places, and all types of the buildings being possessed or used by them;

13.1.3.all kinds of buildings which designated to organize sports training, practicing, competitions, and games;

13.1.4.classrooms, and dorms of students;

13.1.5.public residential buildings, their entrances, corridors, extensions, and basement floors;

13.1.6.train, auto transport, harbor, and airport stops;

CHAPTER THREE

IMPORTING AND EXPORTING OF THE ALCOHOLIC BEVERAGES

Article 14.Importing and exporting of the alcoholic beverages

14.1.The technical regulation of the quality and safety indicators of imported alcoholic beverages shall be approved by the Government based on the proposal of the state central administrative body in charge of health and food matters.

14.2.The importing alcoholic beverages shall meet the requirements of technical regulations specified in paragraph 14.1 of this Law.

14.3.Samples and models of the importing alcoholic beverages shall be analyzed by the preliminary analyze of custom's authority.

14.4.The quantities of specimens, samples, and models to be taken from alcoholic beverages for the purposes of analysis specified in paragraph 14.3 of this Law shall be the minimum amount sufficient for analysis and conclusions that meet the requirements of Mongolian standard.

14.5.The special permit applicant requesting for importing alcoholic beverages shall complete the following documents for obtaining a new special permit or for an extension of it:

/This paragraph was amended by the law as of January 06, 2023/

14.5.1.application for the special permit;

14.5.2.receipt of payment of the state stamp duty;

14.5.3.financial statements of the last three years, certified by an auditing legal entity institution, if previously operating;

14.5.4.information on the warehouse to keep imported products;

14.5.5.certificates and documents defining that the importing alcoholic beverages are being met with quality and standard requirements of the respective country where they are produced and exported;

14.5.6.conclusion of the state administrative body in charge of tax matters on whether the equipment to create excise tax stamp with unique and electronic data code for each imported product and to connect the information on the created stamp to the electronic payment receipt system is in compliance with the requirements or not;

14.5.7.in order to ensure the safety of the external environment of the building where the activity is to be carried out, to be installed video recording equipment and tools and to have obtained the opinion of the police organization;

14.5.8.the documents certifying that the alcoholic beverages were involved in the analysis specified in paragraph 14.3 of Article 14 of this Law, and met the hygiene requirements;

/This paragraph was added by the law as of January 06, 2023/

14.5.9.in order to ensure the safety of the building where the importing alcoholic beverages is to be kept, the opinion of the police organization on the video recording equipment and tools have installed;

/This paragraph was added by the law as of January 06, 2023/

14.5.10.tax authority's definition of no tax debt.

/This paragraph was added by the law as of January 06, 2023/

14.6.The holder of a special permit to import alcoholic beverages shall meet the following requirements in addition to the general requirements for the import and supply of alcoholic beverages with technical regulations, quality, and safety assurance, and certificates of conformity;

14.6.1.to be connected to the electronic payment receipt system, integrated database of registration and information of taxation;

14.6.2.to import the alcoholic beverages with excise tax stamps;

14.6.3.to issue an electronic receipt for each sale, and register for each import and sale in accordance with the procedure specified in paragraph 38.7 of this Law.

14.7.The Government shall approve the procedure on controlling the quality and safety of alcoholic beverages to be imported and exported.

/This paragraph was amended by the law as of January 06, 2023/

14.8.The state central administrative body in charge of food matters shall issue a special permit for importing alcoholic beverages for the period of five years, and it can be extended for the same period in each time, and it shall not be extended more than five years.

/This paragraph was amended by the law as of January 06, 2023/

14.9.Requests and materials for obtaining the special permits and extending it can be decided by electronically. The issue of extension of the special permit shall be resolved based on the evaluation of the contract made with the special permit holder, and in case of violation of the conditions and requirements of the special permits, the term of special permit shall not be extended.

/This paragraph was amended by the law as of January 06, 2023/

14.10.The special permit shall not be extended if it has a tax debt.

14.11.If failed to fulfill the legal requirements of the competent authority authorized to conduct inspection demanding to comply its operation with requirements specified in legislation within the specified period, the special permit for importing alcoholic beverages shall be suspended for the purpose of eliminating the violations for the period of up to three months, and it shall be restored if the violations are eliminated.

14.12.The special permit for importing the alcoholic beverages shall be suspended in the following cases:

14.12.1.if the holder of the special permit is liquidated;

14.12.2.if the holder of the special permit submitted a request to terminate a special permit;

14.12.3.if it is determined by the competent authority that the documents specified in paragraph 14.5 of this Law was made falsely, or the documents contained false information;

14.12.4.if sold the alcoholic beverages without excise tax stamp specified in the paragraph 14.5 of this Law, or sold the alcoholic beverages by making falsely an excise tax stamp, or using a fake excise tax stamp, or having made them falsely under the order, or with fake excise tax stamp;

14.12.5.if assigned or transferred the excise tax stamp to others;

14.12.6.if failed to remove the violation within the term specified in paragraph 14.11 of this Law;

14.12.7.if imported alcoholic beverages that did not meet the requirements of technical regulations;

14.12.8.if failed to engage in importing activities of alcoholic beverages for the period of two or more years after the issuance of the special permit for importing alcoholic beverages;

14.12.9.if the special permit for the importing the alcoholic beverages was transferred or used by the others in the form of selling, gifting, renting, or pledging it.

14.13.Import and export of alcoholic beverages shall be carried out through border ports designated by the Government.

14.14.It shall be prohibited to import alcoholic beverages without a special permit, and/or by using another person's special permit.

14.15.If importing alcoholic beverages do not meet the quality and safety requirements, it shall be returned by the expense of the person concerned.

14.16.The relations in connection with the importing alcoholic beverages which are not regulated  by this Law shall be regulated by the Law on Permits.

/This paragraph was added by the law as of January 06, 2023/

CHAPTER FOUR

SALE AND SERVING OF THE ALCOHOLIC BEVERAGES

Article 15.The special permit for sale, and serving of the alcoholic beverages

15.1.The special permit for selling and serving of alcoholic beverages shall be issued, extended, suspended, restored, or revoked by the Governor of the aimag, capital city, and by the Governor of the free zone in the free zone in accordance in Article 151 of this Law within the number of special permits specified in paragraph 15.7 of this Law.

/This paragraph was amended by the law as of January 06, 2023/

15.2.The Government shall approve the procedure of issuing, extending, suspending, restoring, and revoking the alcoholic beverages for sale, and serving of them.

/This paragraph was invalidated by the law as of January 06, 2023/

15.3.The special permit for sale and serving of the alcoholic beverages shall be issued for the period of five years, and it can be extended for the same period each time, however, it shall not be extended for the period of more than five years.

/This paragraph was amended by the law as of January 06, 2023/

15.4.The holder of the special permit for sale and serving of alcoholic beverages shall sell the alcoholic beverages that meet the requirements of technical regulations and standards, have obtained the quality and safety assurance, as well as a certificate of conformity.

15.5.The procedure specified in paragraph 15.2 of this Law shall be adhered to in extending the term of special permit for sale and serving of the alcoholic beverages.

/This paragraph was invalidated by the law as of January 06, 2023/

15.6.It shall be prohibited to the holder of the special permit for the sale and serving of the alcoholic beverages from transferring the special permit to others in the form of selling, gifting, pledging, and renting, as well as changing the location to carry out the operation, except as specified in this Law.

15.7.The numbers of special permits for the sale and serving of alcoholic beverages shall be determined jointly by the state central administrative bodies in charge of food, health, and legal matters by taking into account of the number of people living in the respective territory, territory size, the criminal and public order situation, location of health, cultural and sports institutions, the students' school and dormitory, as well as  proposal of aimag and the Capital city.

15.8.The Governors of aimag and the Capital city may transfer their powers specified in paragraph 15.1 of this Law to the Governors of soum, district or lower level officials, however such transfer shall not be a ground to release them from the liabilities.  

15.9.The special permit for sale and serving of alcoholic beverages shall be issued to the person who connected with integrated database of registration and information of the taxation, and electronic payment receipt system, and does not have any overdue debt.

15.10.The other relations in connection with the sale and serving alcoholic beverages that are not regulated by this Law shall be regulated by the Law on Permits.

/This paragraph was added by the law as of January 06, 2023/

Article 151.Issuing the special permit for sale and serving alcoholic beverages

/This article was added by the law as of January 06, 2023/

151.1.A legal entity requesting for the special permit for sale and serving alcoholic beverages shall deliver the following documents electronically in addition to the documents specified in paragraphs 5.1 and 5.4 of the Law on Permits to the Governors of the respective aimag, the capital city, and the Governor of the free zone in the free zone territory:

151.1.1.official letter for requesting the special permit /clearly specify the type of service to be engaged in, the proper name, the locating address, and the communicating phone number/;

151.1.2.copy of state registration certificate of legal entity;

151.1.3.the opinion of the state inspector and the workplace issued by the competent authority authorized to implement the inspection on the engaging in the activities in the field of the service;

151.1.4.the fire report made by the state administrative body in charge of emergency matters in regards with the workplace where the respective activity to be carried out.

151.2.If the competent organization has documents specified in paragraph 151.1 of this Law, or they can be taken from the main or support system specified in the Law on Transparency of public information, they shall not demanded to be submitted by the citizen or legal entity.

151.3.The working group with duties to issue a conclusion on the matters of issuing the special permit shall be established by the order of Governors of aimag, the Capital city, and the Governor of the free zone in the free zone territory. The working group shall decide the checking of a completion of documents and conducting due diligence activities within the period specified in Article 5.2 of the Law on Permits, and deliver them to the competent person authorized to issue the special permit.

151.4.The Governors of aimag, the capital city, and the Governor of the free zone in the territory of the free zone shall issue a special permit for sale and serving of the alcoholic beverages in accordance with the Law on Permits to the legal entity meeting the requirements based on the conclusion of working group specified in paragraph 151.3 of this Law.

151.5.In case of refusal to issue a special permit, a notification stating the reasons shall be delivered to the legal entity within two working days after the decision.

Article 152.Extending a special permit for sale and serving of alcoholic beverages

/This article was added by the law as of January 06, 2023/

152.1.The holder of the special permit shall deliver the following documents in accordance with Article 5.5 of the Law on Permits to the competent person specified paragraph 15.1 of this Law:

152.1.1.an application requesting for extending the period;

152.1.2.definition of the police organization;

152.1.3.state supervisory inspector's conclusion.

Article 16.Types of the special permit for sale and serving of alcoholic beverages

16.1.A special permit for the sale of alcoholic beverages shall be issued to legal entities for profit engaging in the field of a trade.

16.2.The special permit for serving of alcoholic beverages shall be issued to legal entities for profit engaging in the field of food processing and service, and it shall have the following types:

16.2.1.to serve alcoholic beverages between 11.00 am to 10.00 pm;

16.2.2.to serve alcoholic beverages between 02.00 pm to 04.00 am.

16.3.An entity with a special permit specified in paragraph 16.2 of this Law may serve with alcoholic beverages containing up to 18 percent hardness of ethanol at places where organizing and/or broadcasting the public ceremonial events, art performances, trade fairs, international competitions and contests.

16.4.An entity with a special permit for sale and serving of alcoholic beverages shall make a contract with an organizer of the event specified in paragraph 16.3 of this Law.

16.5.While serving alcoholic beverages in the activities specified in paragraph 16.3 of this Law, the time limit shall be matched with the time specified in paragraph 16.2 of this Law.

16.6.The Cabinet member in charge of food matters shall approve the classification of services and their meeting requirements to be received a special permit specified in paragraphs 16.1 and 16.2 of this Law.

Article 17.Extending and suspending the special permit for sale and serving of alcoholic beverages

17.1.Based on the joint or individual opinions and conclusions of the competent authority conducting inspection, taxation and police organizations, and officials thereof, the special permit to sell or serve alcoholic beverages shall be suspended in the following cases:

/This paragraph was amended by the law as of November 11, 2022/

17.1.1.if failed to fulfill the legal requirements of the competent authority conducting inspection demanded in regards with eliminating the detected violations, and complying its operation with the requirements specified in the legislation;

17.1.2.if failed to meet the conditions and requirements specified in the legislation to be imposed on the activities of  sale and serving alcoholic beverages;

17.1.3.if failed to fulfill voluntarily the penalty of fine to have imposed on the violation breaching the legislation on control of the circulation of alcohol beverages and combating alcoholism within the period specified in the law.

17.2.The special permit for sale and serving alcoholic beverages shall be suspended for up to three months in order to eliminate the violations specified in paragraph 17.1 of this Law, and it shall be restored if the violations to suspend are eliminated.

17.3.The period of suspension of the special permit can be extended for up to three months based on submitted request by the holder of the special permit and the opportunity to eliminate the detected violations.

Article 18.Revoking the special permit for sale and serving alcoholic beverages

18.1.The special permit for sale and serving alcoholic beverages shall be revoked in the following cases based on the opinions and conclusion of organizations and officials specified in Article 17 of this Law;

18.1.1.if the holder of special permit is liquidated;

18.1.2.if the holder of special permit submitted a request to terminate the special permit;

18.1.3.if it is determined by the decision of the competent authority that the documents specified in paragraph 6.1 of this Law was made falsely, or the documents contained false information;

18.1.4.if violated the date and time limit specified in the law three or more times in the period of three months;

18.1.5.if failed to remove the violation that was the ground for suspension of the special permit within the period specified in paragraph 17.2 of this Law, or committed the violation that caused the suspension of the special permit two or more times within the period of two months;

18.1.6.if sold and served the alcoholic beverages within the period of suspension of the special permit;

18.1.7.if the special permit is transferred to others in the form of sale, gift, pledge, or rent, or the location of operations is changed in cases other than those specified by the law;

18.1.8.if failed to implement the decision of the competent authority and officials on banning to sell and serve alcoholic beverages;

18.1.9.if violated the provision specified in paragraph 22.1 of this Law repeatedly within the period of three months;

18.1.10.if failed to carry out the activities specified in the special permit more than six months except the grounds of suspending the special permit;

18.1.11.if sold and served the alcoholic beverages that do not meet the requirements of the standard, quality, and safety, or do not have assurance, or without excise tax stamp, or sold the alcoholic beverages by making falsely an excise tax stamp, or using a fake excise tax stamp, or having made them falsely under the order, or by affixing the fake excise tax stamp, or sold the alcoholic beverages without issuing electronic payment receipts;

18.1.12.if failed to comply with the obligations to prevent from crimes and violations specified in paragraphs 30.1 and 30.2 of the Law on Prevention of crimes and violations;

18.1.13.others specified by the law.

Article 19.Prohibiting to sell and serve alcoholic beverages

19.1.The decision to ban the sale or service of certain types and/or all types of alcoholic beverages in a certain territory shall be made by the Governor of an aimag or the Capital city in a local area, or the Governor of a free zone in the territory of a free zone, and by the Government at the national level in the event of a situation specified in the Law on State of Emergency and the Law on Disaster Prevention, or in other cases where it is necessary.

Article 20.The forbidden places to sell and serve alcoholic beverages

20.1.Following places shall be forbidden to sell and serve alcoholic beverages:

20.1.1.the places and publicly possessed areas specified in sub-paragraphs 13.1.1, 13.1.2, and 13.1.4 of this Law;

20.1.2.in all types of public transport, except at designated points of aircraft and passenger trains;

20.1.3.inside a vehicle located in a gas station, a religious organization building, or a public property areas;

20.1.4.places other than designated areas at the train stop, road transportation stop, harbor port and the airport;

20.1.5.in places where public demonstrations, assemblies, sports events, competitions, and contests are being held, except specified in paragraph 16.3 of this Law;

20.1.6.inside environments of the workplace of an entity, except who has the special permit to sell and serve alcoholic beverages;

20.1.7.to serve alcoholic beverages containing ethanol with a hardness of more than 18 percent in apartments, their expansions, entrances, corridors, and basements floors unless the approved design of the building is designed and furnished for service purposes.

20.1.8.in places other than approved points in public places.

Article 21.Forbidden things when selling and serving alcoholic beverages

21.1.Following things shall be forbidden when selling and serving alcoholic beverages:

21.1.1.to sell and serve alcoholic beverages to a person who is under an age of 21, and/or who is under excessive consumption of alcoholic beverages;

21.1.2.to sell or serve alcoholic beverages that do not meet standards, quality, or safety requirements, or are not certified, or whose packaging does not meet the requirements specified in paragraph 12.7 of this Law;

21.1.3.to sell and serve alcoholic beverages without an excise tax stamp;

21.1.4.to sell, serve, or deliver alcoholic beverages using the electronic environment, communication tools, or self-service automatic devices by a person other than the holder of a special permit to sell alcoholic beverages;

21.1.5.to sell and serve alcoholic beverages which do not meet the requirements specified in paragraph 12.7 of this Law;

21.1.6.to sell and serve the alcoholic beverages from hand to hand, or without a special permit for selling and serving alcoholic beverages, or during a period of expiration and suspension of the special permit.

Article 22.Forbidden days to sell and serve alcoholic beverages

22.1.It shall be prohibited to sell or serve alcoholic beverages on the day of the election of the President of Mongolia, the State Great Khural of Mongolia, the Citizens Representatives Khurals of aimags, the Capital city, soums and districts, and on the day before and after the day of the election.

22.2.In addition to paragraph 22.1 of this Law, Governors of aimags, the Capital city, and free zones may decide to prohibit the sale or serving of alcoholic beverages in their respective jurisdiction in order to prevent crimes, violations, disasters, or accidents, or to prevent crimes or violations.

Article 23.Time limit of selling and serving the alcoholic beverages

23.1.Governors of Aimag, the capital city, and the Governor of the free zone shall determine the time limit of trade and service organizations with the special permits for selling and serving the alcoholic beverages in their respective territories.

23.2.Paragraph 23.1 of this Law shall not apply to the regime of duty-free shops.

Article 24.Special requirements for the holder of the special permit for selling and serving alcoholic beverages

24.1.The holder of the permit for the selling and serving alcoholic beverages shall have a hall dedicated for clients to consume the alcoholic beverages purchased by them.

24.2.The alcoholic beverages which was purchased from the holder of the special permit for serving alcoholic beverages shall be consumed in the hall specified in paragraph 24.1 of this Law.

24.3.The holder of the special permit for serving alcoholic beverages shall serve hot and cold snacks in the service hall, and the holder of the special permit specified in sub-paragraph 16.2.2 of this Law shall serve a drinking water to the clients free of charge.

24.4.State central administrative bodies in charge of food and health matters shall develop jointly the standards of serving alcoholic beverages, and the Government shall approve it.

24.5.In the alcoholic beverages service hall, the reminders about the harmful effects of driving and excessive consumption of alcoholic beverages, information about taxi and public transport services shall be posted.

Article 25.Responsible service of the alcoholic beverages

25.1.An employee of the holder of the special permit for serving alcoholic beverages who is responsible for serving to others shall be attended training on responsible service of alcoholic beverages.

25.2.A purpose of training of responsible service of alcoholic beverages shall have a purpose of developing a service approach aimed at creating awareness of the legislation, determining the age of the client, and preventing the client from overusing alcoholic beverages.

25.3.A training of responsible service of alcoholic beverages shall be organized by a non-profit legal entity, and 50% of the training fee shall be financed from the fund specified in paragraph 33.1 of this Law.

25.4.The procedure for conducting a training of responsible service of alcoholic beverages and standard fee amount for the training of responsible service of alcoholic beverages specified in paragraph 25.2 of this Law shall be approved by the Cabinet member in charge of legal affairs.

Article 26.Verifying the documents before selling and serving alcoholic beverages

26.1.An employee of the holder of the special permit for selling and serving alcoholic beverages shall have a right to verify the documents of a client.

26.2.If there is a ground that a client is under the age of 21, the employee specified in paragraph 26.1 of this Law shall verify the client's document in person, and/or by using technology in order to check whether the client reached the age permitted by law or not before selling and serving alcoholic beverages.

26.3.An employee specified in paragraph 26.1 shall not sell and serve an alcoholic beverages, if the client does not have any documents, or refused to be checked his/her documents.

26.4.An employee specified in paragraph 26.1 shall have a right not to sell and serve an alcoholic beverages, if the client made an action which shows the excessive consumption of alcoholic beverages by him/her.

26.5.The documents specified in paragraph 26.1 of this Law shall include the citizen's identification card, foreign passport, and driver's license, and the client can prove his or her age by using electronic devices.

Article 27.Liability of the holder of the special permit for selling and serving alcoholic beverages

27.1.The holder of the special permit which sold or served alcoholic beverages shall be liable for the damages caused to others due to the sale and serving of the alcoholic beverages to the person under the age of 21 or to the person who is excessively consumed the alcoholic beverages.

27.2.The fact that the holder of the special permit did not properly fulfill the obligations stipulated in paragraph 26.2 of this Law, and not knowing that the client is under the legal age shall not be a ground for exemption from liability.

CHAPTER FIVE

USE OF ALCOHOLIC BEVERAGES

Article 28.Prohibiting the use alcoholic beverages

28.1.Following persons shall be forbidden to use alcoholic beverages:

28.1.1.a person who is driving vehicles;

28.1.2.a person who is under the age of 21;

28.1.3.a person who is pregnant;

28.2.It shall be prohibited to demand others to use the alcoholic beverages. The person who demanded the consumption of alcoholic beverages may be held liable for the harm caused to others due to drunkenness by forcing others to consume alcoholic beverages..

CHAPTER SIX

COMBATING ALCOHOLISM

Article 29.Prohibiting the activities to increase the use of alcoholic beverages

29.1.The following activities in connection with the alcoholic beverages shall be prohibited:

29.1.1.to place and make advertisement of alcoholic beverages during sport, cultural, art, and public events and broadcasting programs;

29.1.2.to sell the alcoholic beverages containing ethanol with a hardness of 38% or more, to announce discounts and incentives when serving by them, to sell and serve them with discounted prices and conditions, and to use the advertisements with the content of describing the incentives and discounts;

29.1.3.to serve alcoholic beverages free of charge in the form of samples and models, to dine others, and to organize tasting by the holder of the special permit for selling and serving the alcoholic beverages;

29.1.4.to serve unlimited amount of alcoholic beverages at one price;

29.1.5.to reward with alcoholic beverages, to pay with it instead of salary, and to organize the games, festivals, and lottery which involves the alcoholic beverages;

29.1.6.to advertise the alcoholic beverages by using the alcoholic beverages and the name, logo, trademark, or image of an alcoholic beverage factory in the press, media, film, internet, wall boards, posters, advertisements, food menus, passenger's tickets or other physical form with the exception specified in paragraph 141.5 of the Law on Advertising;

29.1.7.to produce and sell the alcoholic beverages without an excise tax stamp, or to make falsely an excise tax stamp, to use or to be made under order a fake excise tax stamp, and to sell alcoholic beverages affixed with a fake excise tax stamp.

29.2.It shall be prohibited to purchase alcoholic beverages by the funds of the state owned and state partially owned legal entities, or organizations being financed by state, and local budget, other than organizing the state ceremonies and external events of honor.

Article 30.Advertisements against alcoholism

30.1.A relation to advertise the alcoholic beverages via the media and press shall be regulated by the Law on Advertising.

Article 31.Coercive rehabilitation

31.1.The coercive rehabilitation of the person used the alcoholic beverages excessively shall be regulated by the specialized law.

Article 32.Treatment

32.1.Relations in connection with the coercive treatment of a person who has been diagnosed with alcohol addiction by the opinion of a medical institution, but who avoids treatment voluntarily, shall be regulated by the specialized law.

32.2.The funds specified in paragraph 33.1 of this Law may be used for the purposes of care and service provided for in the Law on compulsory administrative treatment of a person addicted to alcohol or drugs and the Law on Compulsory Rehabilitation of a person who has consumed alcohol excessively.

Article 33.Funds for supporting the combat against alcoholism, and preventive actions

33.1.The following activities specified in paragraph 213.1 of the Law on Government Special funds shall be financed by the assets of the fund for the supporting the combat against alcoholism and preventive actions /hereinafter referred to as the "Fund"/:

33.1.1.to fight against alcoholism and promote publicly its harmful effects;

33.1.2.50 percent of training fee of the responsible service of the alcoholic beverages;

33.1.3.to deliver the necessary care and services to the population aimed at combating the detrimental effects of intoxication, drug addiction and screen addiction;

33.1.4.to increase access to buildings, equipment and other care and services to be provided for persons who have consumed excessive alcohol;

33.1.5.other activities against detrimental effects and consumption of alcohol and fighting against alcoholism.

33.2.The fund shall operate next to the Cabinet member in charge of legal matters, and the office of the fund shall operate next to the state central administrative body in charge of legal matters.

33.3.The fund shall have Board of directors, and the Board of directors shall include equal numbers of representatives of state bodies and the public.

33.4.The supervisory committee specified in paragraph 25.5 of the Law on Government Special funds shall control the expenditure and operation of the fund, and the members of the committee shall be at least two-thirds of the representatives of public.

33.5.Public representation specified in paragraph 33.4 of this Law shall include representatives of non-profit legal entities representing the holders of the special permit for producing and importing alcoholic beverages.

33.6.Relations in connection with the collecting, spending, reporting a performance and controlling over the fund assets shall be regulated by the Law on Government Special Funds.

Article 34.Issuing and spending the spirit, and controlling over them

34.1.The Cabinet members in charge of food, finance, budget, legal and health matters shall jointly approve the procedure on distributing, issuing, and consuming the spirit to be used for the foods and technical purposes, and controlling over them.

34.2.The state central administrative body in charge of food matters shall approve the minimum amount of alcohol to be produced each year.

CHAPTER SEVEN

TRANSITIONAL ARRANGEMENTS AND MISCELLANEOUS

Article 35.Controliing over production, sale, service, and consumption

35.1.Following organizations, and officials shall control over the circulation of alcoholic beverages within the scope of their powers issued by the legislation:

35.1.1.state central administrative body in charge of food matters;

35.1.2.all levels of governors, and governor of free zones;

35.1.3.tax authority;

35.1.4.specialized inspection organization;

/This paragraph was invalidated by the law as of November 11, 2022/

35.1.5.customs authority;

35.1.6.police organization;

35.1.7.management of legal entities;

35.1.8.state organization in charge of consumer right protection;

35.1.9.others specified by the law.

Article 36.Obtaining information about violations

36.1.State competent authorities may obtain the information in regards with violations of producing, passing through customs border, and selling the alcoholic beverages illegally in accordance the Law on prevention of crimes and violations under payment.

Article 37.Paying taxes and duties, and an excise tax stamp

37.1.The special permit holder for producing, importing, selling, and serving alcoholic beverages, and a legal entity being engaged in exporting activities of alcoholic beverages shall pay taxes and duties in accordance the legislation.

37.2.Alcoholic beverages sold and served to others in the territory of Mongolia, except for export and customs guaranteed zones, shall have an excise tax stamp, and it shall be prohibited to sell and serve alcoholic beverages without special tax stamps, to make, use, or to be made by order the excise tax stamps falsely, to sell alcoholic beverages with fake excise tax stamps, and to sell alcoholic beverages without electronic payment receipts.

Article 38.Database

38.1.There shall be an electronic database containing the registration of the special permit holders for producing, importing, selling, and serving alcoholic beverages, and other relevant information thereto.

38.2.The electronic database shall be connected to the integrated database of registration and information of taxation, and the database of the activities of customs.

38.3.All types of alcoholic beverages shall be produced and imported, as well as inserted into the free zone and duty-free shops shall be registered in the integrated database of registration and information of taxation by using codes with unique electronic data that meet international standards based on the electronic payment receipts and customs declarations until the final consumer by every stage of production, import, and sale.

38.4.Following information shall be registered in the database specified in paragraph 38.3 of this Law:

38.4.1.name of manufacturer;

38.4.2.name of person which sold;

38.4.3.name of importer in case of importation;

38.4.4.date of manufacture;

38.4.5.quantities and amounts of manufacture;

38.4.6.date of customs declaration, in case of importation;

38.4.7.in case of importation, the customs assessment reflected in customs declaration;

38.4.8.amount of paid excise tax;

38.4.9.amount of sold price.

38.5.The person who purchased alcoholic beverages can access the information specified in paragraph 38.4 of this Law through the electronic payment receipt system which he/she uses.

38.6.The state central administrative body in charge of food matters shall carry out the creation and usage of the electronic database specified in paragraph 38.1 of this Law.

38.7.The Cabinet member in charge of food, finance, budget, and legal matters shall approve jointly the procedure on creating, using, and enriching the database specified in paragraph 38.1 of this Law.

Article 39.Liabilities to be imposed on the violators of the Law

39.1.If the act of an official who violates this Law does not constitute criminal nature, he/she shall be held liable as provided in the Law on Civil Service.

39.2.An individual or a legal entity who breached this Law shall be subject to liability in accordance with the Criminal Code or Law on Violations.

Article 40.Transitional arrangement

40.1.Article 12 of this Law shall not apply to alcoholic beverages produced before this Law enters into force.

40.2.Paragraphs 12.1 and 12.6 of Article 12 of this Law shall enter into force on January 1, 2026.

40.3.Sub-paragraphs 14.5.4 and 14.6.2, and Articles 15, 16 of this Law shall enter into force on July 1, 2023.

40.4.The Government shall approve the special permit specified in paragraph 5.1 of this Law within the July 1, 2023.

40.5.Sub-paragraph 20.1.7 of this Law shall not apply to legal entities with a special permit operating in places prohibiting from serving of alcoholic beverages containing 18% or more ethanol hardness as specified in the respective provision of this Law until January 1, 2025.

40.6.It shall be prohibited to issue a special permit newly until approving the number of special permit specified in paragraph 15.7 of this Law.

40.7.The special permit for sell and serve alcoholic beverages issued under the Law on Combating Alcoholism approved on January 28, 2000 shall be extended until the numbers of special permits will be approved in accordance with paragraph 15.7 of this Law.

40.8.The regulations specified in paragraphs 5.2 and 5.3 of this Law shall not apply to a person who obtained a special permit for producing alcoholic beverages before enactment of this Law, and the special permit shall be extended in accordance with the procedures specified in this Law.

40.9.In the period after the approval of the numbers of special permits specified in Article 15 of this Law, the special permit for sell and serve alcoholic beverages issued under the Law on Combating Alcoholism, approved on January 28, 2000, shall be considered invalid on the date of expiration of their terms, and the matter whether to issue special permits to the legal entities that submitted the requests shall be decided according to the procedures specified in this Law.

Article 41.Entry into force of the Law

41.1.This Law shall enter into force on January 1, 2023.

THE CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA ZANDANSHATAR.G