According to the news of the state tobacco monopoly administration on April 25, the State Tobacco Monopoly Administration issued several policies and measures on promoting the legalization and standardization of the e-cigarette industry (Trial), which mentioned that it is necessary to adjust and optimize the industrial structure, strictly control the new production capacity, reasonably control the scale of production capacity and prevent overcapacity. Guided by optimizing resource allocation and meeting market demand, keep the industrial concentration at a reasonable level, and guide enterprises that do not adapt to market competition to exit in an orderly manner.
The full text is as follows: p align = “center” some policies and measures on promoting the legalization and standardization of e-cigarette industry (Trial)
In order to strengthen the management of e-cigarettes, protect people’s health and safety, solve the prominent problems existing in the e-cigarette market and industry, and promote stability, order and standardization, according to the tobacco monopoly law of the people’s Republic of China, the law of the people’s Republic of China on the protection of minors, the regulations for the implementation of the tobacco monopoly law of the people’s Republic of China and the measures for the administration of e-cigarettes (Announcement No. 1 of the state tobacco monopoly administration in 2022) This policy is formulated in accordance with laws, regulations, rules and normative documents such as the mandatory national standard of electronic cigarette (GB 417 Shanghai Kehua Bio-Engineering Co.Ltd(002022) ).
chapter I policy objectives
Article 1 the e-cigarette industry shall be brought under supervision according to law, the industrial layout shall be scientific and reasonable, the market operation shall be stable and orderly, the resource allocation shall be more efficient, the supply and demand balance under the total amount management shall be realized, the relevant requirements of the national tobacco control shall be implemented, the people’s health and safety shall be effectively guaranteed, and the development of the e-cigarette industry shall be on the track of legalization and standardization.
Article 2 based on the current situation of e-cigarette industry, connect with the national regional development strategy, guide the appropriate concentration of e-cigarette industry in areas with industrial foundation and conditions, strengthen the control of raw material channels, and reasonably ensure the supply of raw materials for e-cigarette production.
Article 3 adjust and optimize the industrial structure, strictly control the new production capacity, reasonably control the scale of production capacity and prevent overcapacity. Guided by optimizing resource allocation and meeting market demand, keep the industrial concentration at a reasonable level, and guide enterprises that do not adapt to market competition to exit in an orderly manner.
Article 4 adhere to the combination of effective market and promising government, coordinate market demand and effective supply, and promote the balance between supply and demand through market access licensing and total volume management.
Article 5 create a fair competition market environment, establish open and transparent market rules, establish a unified and efficient e-cigarette trading management platform, implement e-cigarette tax and price policies, and promote the smooth circulation of e-cigarette supply chain.
Article 6 improve the efficiency of supervision, establish and improve the modern market supervision system and quality and safety evaluation and testing system, cooperate to promote digital supervision, credit supervision and joint supervision, and continuously improve the level of supervision.
Chapter II industrial layout
Article 7 promote the appropriate concentration of e-cigarette production capacity to regions and enterprises with comparative advantages. Build an industrial concentration area focusing on the design, production and assembly of electronic cigarette products and aerosols in areas with the foundation and location conditions of electronic cigarette industry; Build a raw material supply base with nicotine production as the core in areas with raw material resources and R & D capacity; Optimize the layout of supporting industries, guide the appropriate concentration of supporting industries, and promote professional division of labor and efficient cooperation in the industrial chain. Restrict the development of e-cigarette industry in areas without industrial foundation, core technology, market conditions, logistics and transportation, professionals and other conditions. Curb unreasonable investment impulse and prevent aggravation of overcapacity and repeated waste.
Article 8 the wholesale business of e-cigarettes adopts the mode of territorial operation. Considering the local economic development level, the number of retail outlets, market coverage, geographical location and other factors, we should make a reasonable layout of wholesale enterprises.
Article 9 The competent department of tobacco monopoly administration under the State Council shall guide the competent departments of tobacco monopoly administration at the provincial level to formulate the layout plan of e-cigarette retail outlets by comprehensively considering the market demand and spatial distribution, the characteristics and sales status of e-cigarette products, the sales cost of enterprises and other factors.
The provincial tobacco monopoly administrative departments shall be responsible for formulating and implementing the rational layout plan of e-cigarette retail outlets within their respective administrative regions. The layout planning shall conform to the local market demand and the aggregation characteristics of consumer groups.
Article 10 the establishment of e-cigarette production enterprises (including product production, OEM, brand holding enterprises, etc., the same below), atomization production enterprises and e-cigarette nicotine production enterprises and e-cigarette production shall be subject to license management. According to the principles of law and regulation, stability and order, overall consideration and classified guidance, enterprises with backward process equipment, unqualified product quality, substandard hazardous chemicals management and environmental protection, production safety risks and violations of laws and regulations shall not be allowed. The wholesale and retail of electronic cigarettes shall be subject to license management.
Chapter III supply and demand management
Article 11 in order to achieve the balance between supply and demand in the e-cigarette market, the total sales of domestic e-cigarette products shall be managed. The competent department of tobacco monopoly administration under the State Council scientifically and reasonably determines the annual domestic sales target of electronic cigarette products by comprehensively considering tobacco control, market demand, economic development, population change, market state and other factors. The provincial tobacco monopoly administrative department shall organize the e-cigarette wholesale enterprises within its administrative region to carry out business activities within the annual domestic sales target of the province (District, city).
Article 12 regulate the import order of electronic cigarette products, nicotine and aerosols for electronic cigarettes. The competent department of tobacco monopoly administration under the State Council shall coordinate the production capacity and market needs, and determine the annual sales target of electronic cigarette products imported by wholesale enterprises and the import demand of nicotine and atomization products for electronic cigarette by production enterprises within the scope of total amount control. Implement the filing system for the actual import of nicotine and aerosols for electronic cigarettes.
Article 13 optimize the work processes such as the export of e-cigarette products and the processing of e-cigarette products, and improve the service level of e-cigarette production enterprises engaged in export business.
Article 14 coordinate the domestic sales and export needs, and scientifically and reasonably determine the annual production and marketing scale of nicotine for domestic e-cigarettes. According to the alkali production rate of tobacco (including reconstituted tobacco leaves and tobacco stems), cut tobacco (including powder and granular) and other raw materials, scientifically and reasonably calculate the annual consumption, and issue the purchase and sales plan of tobacco monopoly products such as tobacco leaves (including reconstituted tobacco leaves and tobacco stems), redried tobacco leaves and cut tobacco.
Improve the management system of air and sun cured tobacco, strengthen the list management of famous air and sun cured tobacco, and standardize the production and operation activities of e-cigarette raw materials.
Article 15 when applying for the license of tobacco monopoly production enterprise and carrying out capital construction or technological transformation to expand production capacity, e-cigarette production enterprises, atomization production enterprises and e-cigarette nicotine production enterprises shall report the production capacity of the enterprise.
Article 16 establish an early warning mechanism for the production capacity of e-cigarettes, monitor the production capacity by means of informatization, evaluate the utilization of production capacity in combination with the actual market demand, strengthen the self-discipline management of enterprises and prevent overcapacity.
Chapter IV Investment and financing management
Article 17 in accordance with the relevant industrial policies and regulations of the state, the investment in e-cigarettes shall be strictly managed. Where a market entity intends to form new production capacity or expand production capacity through fixed asset investment, it shall report to the competent department of tobacco monopoly administration under the State Council for examination. Reasonably control the scale of production capacity and prevent the blind expansion and repeated construction of e-cigarette production enterprises.
Article 18 in accordance with the relevant policies and regulations of the state on foreign investment, foreign investment in the wholesale and retail of e-cigarette products is prohibited, and foreign investment in the field of e-cigarette production is examined.
Article 19 a pre examination system shall be established for the initial public offering and listing application of e-cigarette enterprises at home and abroad. The competent department of tobacco monopoly administration under the State Council shall perform the duty of pre examination, and the electronic cigarette enterprises to be listed can perform the follow-up listing procedures only after being examined and approved.
Chapter V market system
Article 20 give full play to the decisive role of the market in resource allocation, give better play to the role of the government, create a market environment of fair competition, improve market supervision and services, unify market access system and rules, and promote the smooth circulation of e-cigarette supply chain.
Article 21 build a national unified e-cigarette trading management platform, and formulate open and transparent e-cigarette trading management rules and platform operation guidelines. The main body of e-cigarette market should conduct transactions through the e-cigarette transaction management platform. Promote the whole process management of e-cigarette trading business flow, logistics, capital flow and information flow, and take the transaction data as an important basis for market standardized management, state evaluation and effective supervision.
Article 22 e-cigarette product manufacturing enterprises, e-cigarette brand holding enterprises and e-cigarette import enterprises shall sell e-cigarette products to e-cigarette wholesale enterprises through the e-cigarette transaction management platform. E-cigarette retail business entities shall purchase e-cigarette products in local e-cigarette wholesale enterprises. E-cigarette retail business entities shall not exclusively operate single brand e-cigarette products.
Article 23 cooperate with relevant departments to formulate e-cigarette tax policies and promote the implementation and effectiveness of relevant policies.
Article 24 adhere to the market to determine the price, and establish and improve the price formation mechanism of e-cigarettes mainly regulated by the market.
Article 25 the prices of tobacco monopoly commodities such as tobacco leaves (including reconstituted tobacco leaves and stems), redried tobacco leaves and cut tobacco (including powder and granules) shall be implemented in accordance with the relevant provisions of the Department of tobacco monopoly administration under the State Council. The prices of nicotine, aerosols and electronic cigarette products for electronic cigarettes shall be subject to market regulation. Electronic cigarette products with the same product specification shall be sold at a unified national price, and price discrimination is prohibited. The operating profits of all links of the industrial chain should be within a reasonable range, and the overall price level of e-cigarettes should remain basically stable.
Article 26 adhere to standardizing the price order, dynamically monitor the market price information of electronic cigarette products, timely warn of abnormal price fluctuations of electronic cigarette products, encourage consumers and business operators to participate in price supervision, and cooperate with relevant departments to effectively prevent, timely stop and investigate and deal with price violations such as price collusion, bid up prices, price fraud, malicious dumping and failure to mark prices according to regulations.
Article 27 electronic cigarette production enterprises, atomized material production enterprises and electronic cigarette nicotine production enterprises shall, in accordance with the regulatory requirements, strictly standardize the warehousing and transportation business, and do a good job in the collection and upload of logistics data and information.
Chapter VI market supervision
The twenty-eighth tobacco monopoly administrative departments at all levels perform their regulatory duties according to the regulations, and comprehensively use the methods of “double randomness, one open”, “Internet plus supervision”, and key supervision, etc. to implement the full chain and all-round supervision of the production, sale, import and export of electronic cigarettes. Actively carry out online cleaning and offline control, and investigate and deal with all kinds of administrative violations of e-cigarettes. Explore the establishment of a multi sectoral joint law enforcement mechanism, work with relevant departments to investigate and deal with the production and sale of fake and shoddy e-cigarette products, aerosols, nicotine for e-cigarette and other violations of intellectual property rights, illegal business and smuggling, promote relevant market entities to carry out production and business activities in strict accordance with the law, protect people’s health and safety, and standardize the order of e-cigarette market.
Article 29 use information technology to build the whole process traceability system of electronic cigarette products and promote the digital management of the whole life cycle of products. Establish a national unified e-cigarette product traceability platform, formulate traceability management system and technical standards, and strengthen the regulatory efficiency of e-cigarette products. The main body of e-cigarette market shall establish and improve the supporting system and mechanism necessary for the implementation of traceability management to meet the requirements of traceability management.
Article 30 relying on the national unified e-cigarette trading management platform and relevant credit information sharing platform, build the credit management system of e-cigarette market entities, implement the commitment reporting system, and encourage market entities to take the initiative to make credit commitments to the society. Carry out credit evaluation on enterprises according to factors such as legal and compliant operation, product and service quality, public commitment and trustworthiness, form credit records and carry out credit hierarchical management. Take differentiated supervision measures according to the credit rating, give business convenience to enterprises with higher credit rating, increase the proportion of random inspection and inspection intensity for enterprises with lower credit rating, and include market players involved in illegal and dishonest behaviors such as bad nature, serious circumstances and great social harm into the list of dishonest punishment objects.
Chapter VII quality and safety
Article 31 promote the implementation of mandatory national standards for e-cigarettes and issue supporting recommended standards. Standardize the standard formulation process, support enterprises to quickly respond to market demand, and encourage the formulation of enterprise standards higher than national standards. Strengthen the follow-up research on international standards and foreign advanced standards, and promote the integration of Chinese and foreign standards.
Article 32 listed products must comply with relevant provisions such as national standards, ingredient disclosure, packaging marks, health warnings and registered trademarks, and pass the technical review as required. The technical review adopts the method of “self certification + other certification”. The applicant enterprise shall first carry out inspection and testing as required, and submit the application for technical review to the competent department of tobacco monopoly administration under the State Council after completing the safety assessment.
Article 33 improve the product quality and safety evaluation index system, evaluation methods and procedures, and carry out research on evaluation technology and test equipment. Build and improve the infrastructure that meets the requirements of e-cigarette safety evaluation and quality supervision, and develop a series of testing instruments and experimental devices for production and processing, product quality and safety evaluation. Carry out the certification of e-cigarette inspection and testing institutions to provide effective support for product market access, verification and testing and safety assessment.
Article 34 strengthen the public’s supervision over product quality problems, unblock the channels for consumers to report quality defective products, and establish and improve the recall mechanism of quality defective products. Strengthen product quality supervision and random inspection.
Chapter VIII technological innovation
Article 35 build a technological innovation system with enterprises as the main body, market-oriented, industry university research and application coordination and upstream and downstream industry integration, so as to prevent violating and evading the mandatory national standards and relevant regulatory norms of e-cigarettes in the name of “pseudo science” or technological innovation.
Article 36 guide enterprises to grasp the development trend of global e-cigarettes, track cutting-edge technologies, and strengthen scientific and technological innovation and R & D on the premise of strict norms and focusing on quality and safety. Promote the research on basic theory, applied technology and safety risk assessment from the aspects of raw materials, materials, pathology and harm reduction, and constantly consolidate the technology and knowledge support system. Strengthen the technical breakthrough of atomizer technology, nicotine technology and finished product assembly technology, constantly improve the safety and stability of products and reduce the harm of products.
Article 37 e-cigarette manufacturing enterprises are encouraged to carry out the construction of industrial cloud and big data platform to realize the automatic production and intelligent monitoring of the whole process of cigarette bombs and cigarette sets. Encourage e-cigarette manufacturing enterprises to carry out informatization and digital upgrading, integrate existing manufacturing resources, and use technologies such as cloud and big data to promote the application of Internet and information technology in all links of production and manufacturing, operation and management and marketing.
Article 38 promote the greening of e-cigarette industry, reduce product energy consumption, water consumption and pollutant emission, implement the evaluation system and certification standards for green enterprises and products, and promote the R & D and application of advanced green technologies. Improve the recycling and reuse system of waste smoke bombs and cigarette sets, and standardize the recycling process of smoke bombs and cigarette sets. Promote the utilization of clean and green energy and the recycling of traditional energy.
Chapter IX safeguard measures
Article 39 the Department of tobacco monopoly administration under the State Council shall be responsible for formulating and adjusting policies and measures for the e-cigarette industry and relevant supporting measures to promote the standardized and orderly development of the e-cigarette industry. Tobacco monopoly administrative departments at all levels should strengthen the organization and implementation, do a good job in communication and coordination with local Party committees and governments, implement territorial supervision responsibilities, and promote the implementation of policies and measures for the e-cigarette industry. E-cigarette Industry Association organizations should give full play to the bridge role between enterprises and regulators, enhance service awareness, strengthen self-discipline management and standardize member behavior.
Article 40 these policies and measures are applicable to market entities engaged in the production and operation of e-cigarettes within the territory of the people’s Republic of China.
Article 41 these policies and measures shall be implemented as of the date of promulgation and shall be interpreted by the Department of tobacco monopoly administration under the State Council.
