Event: the national standard of e-cigarette was officially adopted and five regulatory rules were issued. On April 12, the State Administration of market supervision (the State Standardization Administration Committee) issued the compulsory national standard of electronic cigarette, which was officially implemented on October 1, and the transition period was extended for five months. On April 15, the State Tobacco Monopoly Administration issued five e-cigarette management rules documents on the same day, including the guiding opinions on the issuance of tobacco monopoly production enterprise licenses to e-cigarette related production enterprises, the guiding opinions on the layout of e-cigarette wholesale enterprises, the guiding opinions on the layout and license management of e-cigarette retail outlets, the detailed rules for the implementation of technical review of e-cigarette products and the detailed rules for the traceability management of e-cigarette products, It provides basis and guidance for the supervision of all links of the industrial chain.
Interpretation of the core contents of the national standard of e-cigarette and the five regulatory rules:
I. the national standard for electronic cigarette shall be implemented on October 1
1) implementation date: officially implemented on October 1, and the transition period is extended by 5 months. On November 30 last year, the State Tobacco Monopoly Administration issued the draft for comments on the national standard of e-cigarettes, and the second draft for comments was issued on March 11. On April 8, the compulsory national standard of e-cigarettes was officially approved by the National Standardization Administration Committee and officially implemented from October 1. It lags behind the implementation time of the measures for the administration of e-cigarettes by 5 months, giving market players a longer transition period.
2) core content: basically no adjustment, and zero Ni atomization products are explicitly prohibited. The national standard clearly prohibits the sale of flavored e-cigarettes other than tobacco flavor, e-cigarettes that can add atomization, e-cigarette products without nicotine (zero nicotine e-cigarettes), and 101 kinds of atomization additives “white list”. Compared with the second exposure draft, the core content of the national standard has basically no adjustment.
II. E-cigarette production license: refine the production links and clarify the approval method and time limit
1) scope of license: detailed content, distinguishing domestic and export. Production enterprise licenses are divided into three categories: electronic cigarette products, atomizers and nicotine for electronic cigarette. On the basis of the three categories and according to the specific functions of manufacturers, it further divides the production (domestic sales / export), agent processing and brand holding (domestic sales / export) licenses of cigarette bombs, cigarette sets, cigarette bombs and cigarette sets; Production of atomized products (domestic / export), production of nicotine for electronic cigarettes (domestic / export), production of heated cigarette sets (domestic non retail / export) licenses.
2) application method: the national tobacco administration shall examine and approve, promote step by step, and clarify the approval time limit. The Department of tobacco monopoly administration under the State Council will make an overall plan, study and formulate scheduling arrangements and promote them step by step. It shall be accepted and examined by the Provincial Department of tobacco monopoly administration in the place where the enterprise is located, and approved by the Department of tobacco monopoly administration under the State Council. According to the requirements of the reform of “release, management and service”, the approval process shall be optimized by adjusting the scope of the license without adding new licensing matters. The approval time limit is 20 working days from the date of accepting the application.
III. e-cigarette wholesale and retail license: market orientation and total amount control
1) wholesale enterprises: market-oriented, territorial operation. An enterprise with a tobacco monopoly wholesale enterprise license may engage in the wholesale business of electronic cigarette products after changing the scope of the license. The distribution of e-cigarette wholesale enterprises shall follow the market orientation, adopt territorial measures, and comprehensively consider the number of wholesale enterprises in combination with the comprehensive situation of consumer groups, population scale and economic level.
2) retail enterprises: total amount control, independent of cigarette retail layout. According to the market demand, market capacity, e-cigarette enterprise cost, reasonable profit of retail outlets, economic and social development level and other factors, determine the total amount of e-cigarette retail outlets, and make dynamic adjustment according to the changes of market demand and market status. E-cigarette retail outlets implement layout planning independent of cigarette retail outlets. The provincial tobacco monopoly administrative department formulates the layout planning of e-cigarette retail outlets. The prefecture, municipal and county-level tobacco monopoly administrative departments accept e-cigarette retail applications in accordance with laws and regulations. The approval time limit is 20 working days from the date of accepting the application, and implement the “one store, one certificate” system.
IV. electronic cigarette products: technical review and traceability management
1) technical review: the product shall comply with the national standard and have a Chinese registered trademark. The electronic cigarette products applying for technical review shall comply with the mandatory national standards for electronic cigarettes, use the trademarks approved and registered in China, and comply with the relevant provisions on the packaging marks and warnings of electronic cigarette products. The electronic cigarette products sold in one packaging unit, including cigarette cartridges and supporting cigarette sets, shall be products that have passed the technical review. The competent department of tobacco monopoly administration under the State Council shall organize professional institutions to carry out the technical review. The technical review institution shall complete the technical review within 60 working days after passing the formal review.
2) product tracing: one object, one code, tracing the whole process. Establish a national unified e-cigarette product traceability platform, collect relevant information in the process of e-cigarette product production, circulation and service by means of QR code, and support the traceability and supervision of e-cigarette products. Electronic cigarette products shall be marked with two-dimensional code on the outer package in accordance with the requirements of “one object, one code”. If the two-dimensional code is not marked on the outer package of electronic cigarette products in accordance with the regulations, it shall not be listed for circulation.
Comments are as follows:
The transition period was extended by 5 months, and the time nodes of each link were clear. The implementation time of the national standard lags behind that of the measures for the administration of electronic cigarettes by 5 months, giving market players a longer transition period. The time nodes of each link are clear and clear, which is conducive to the digestion and adjustment of brands and manufacturers. 1) From May 5, the existing e-cigarettes, aerosols and nicotine production enterprises for e-cigarettes can start to put forward the intention of applying for the license of tobacco monopoly production enterprises, and then submit the formal application according to the scheduling requirements. 2) From June 1, the main body of the stock e-cigarette retail market can begin to submit the application for tobacco monopoly retail license. 3) Since June 15, e-cigarette related production enterprises, wholesale enterprises and retail market entities that have obtained tobacco monopoly related licenses have gradually traded on the platform. 3) On October 1, the national standard was officially implemented, and non-national standard products and unqualified enterprises withdrew from the market.
The scope of license is subject to detailed management, and the distinction between export and domestic sales is made. The license qualification conditions for expected export purposes are relatively loose, and the impact of export enterprises is limited. For the production enterprise license of cigarette bomb, cigarette set, cigarette bomb and cigarette set combination, it is divided into three links: production, agent processing and brand holding. For the production enterprise license of cigarette bomb, cigarette set, cigarette bomb and cigarette set combination, atomizer and nicotine for electronic cigarette, it is divided into two sales purposes: domestic sales and export (among them, there is no domestic retail production license for the category of heated cigarette and cigarette set). The e-cigarette management measures also point out that for the export of e-cigarette products, priority should be given to the laws, regulations and standard requirements of the destination country or region. We expect that it will have a limited impact on the export business of e-cigarette enterprises.
Respect the market, control the total amount, and strengthen the whole process control. The policy points out that the total number of e-cigarette retail outlets will be determined according to the market demand, the cost of e-cigarette enterprises, the reasonable profit of retail outlets and other factors, reflecting the management idea of combining market orientation with top-level design, and it is clear that the reasonable profit of industrial chain enterprises will be considered. We believe that the national standard and technical evaluation system raise the product threshold and make the low-quality production capacity withdraw from the market, which is conducive to the clearing of the industry pattern. The product traceability system and unified trading platform are conducive to the control of the whole process of the industrial chain, and the chaos of wechat merchants, fleeing goods, disorderly prices and other industries may end.
The formulation of supporting policies will enter an era of comprehensive standardization. According to the policy interpretation of the state tobacco monopoly administration, supporting policies and implementation rules such as quality supervision and product packaging of e-cigarettes will be issued successively, and relevant departments will be coordinated to study and formulate relevant policies such as warning signs, inspection and testing institutions, taxation, delivery and entry carrying. The industry will enter an era of comprehensive and standardized development with standards to rely on and evidence to manage.
Investment suggestion: strengthening supervision is expected to promote the sound development of the industry and benefit the leading enterprises with product, technology and brand advantages. It is suggested to pay attention to the atomization industrial chain OEM leader [SIMORE international] with large volume of disposable products and the bottom of valuation, and [ Shenzhen Jinjia Group Co.Ltd(002191) ] with stable main industry of large packaging and perfect layout of the whole industrial chain of new tobacco.
Risk tips: the policy content and progress are less than expected risks, downstream demand is less than expected risks, product quality risks, etc
