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E-cigarette supervision will be implemented, and more detailed rules will be issued for the industry

2021/11/29|Knowledge

Eight months after the release of the draft for comments on March 22, the regulatory legal basis for the e-cigarette industry was finally implemented.

On November 26, the State Council issued the decision on Amending the regulations for the implementation of the tobacco monopoly law of the people's Republic of China (hereinafter referred to as the tobacco regulations).

In order to strengthen the supervision of e-cigarettes and other new tobacco products, the State Council decided to amend the tobacco regulations as follows: add one article as Article 65: "e-cigarettes and other new tobacco products shall be implemented with reference to the relevant provisions of these regulations." in addition, the order of the provisions shall be adjusted accordingly. This decision shall go into effect as of the date of promulgation.

Ao Weinuo, Secretary General of the e-cigarette Industry Committee of the China Electronic Chamber of Commerce, told reporters that it is very necessary and timely for the State Council to publish the above announcement on the supervision of e-cigarettes. He hopes that the new national mandatory standards for e-cigarettes can also be issued and implemented as soon as possible, effectively standardize the production and operation activities of e-cigarettes, and solve the problems such as product quality and safety risks of e-cigarettes, Effectively protect the legitimate rights and interests of consumers.

In terms of the scale of China's e-cigarette industry, in 2020, China's e-cigarette export was about 49.4 billion yuan (US $7.559 billion), an increase of 12.8% over 2019 and 72.1% over 2018. In 2020, China's domestic retail sales will be about 14.5 billion yuan, an increase of 30% over 2019 and 262.5% over 2018.

According to the data of e-cigarette Industry Committee of China Electronic Chamber of Commerce, by the end of December 2019, there were more than 1000 e-cigarette enterprises in China, including 11 listed companies; 907 cigarette sets manufacturers, accounting for 85.7% in Shenzhen; There are 86 cigarette oil manufacturers, accounting for 72% in Shenzhen; The number of relevant employees in upstream and downstream enterprises of e-cigarettes in China exceeds 3 million.

For the release of the legal basis for industry supervision, a company boss of an e-cigarette production and export enterprise in Dongguan, Guangdong told reporters that the industry can develop healthily and consumers can rest assured to use the products on the market. This is a virtuous circle, otherwise the industry will always linger on the edge.

"Now it depends on the implementation rules. A large number of non-standard enterprises should be eliminated." he told the first financial reporter that it may be a great blow to the sales channels established under some brand e-cigarettes.

According to Article 6 of the tobacco regulations, those engaged in the production, wholesale and retail of tobacco monopoly commodities, the import and export of tobacco monopoly commodities and the purchase and sale of foreign tobacco products must apply for a tobacco monopoly license in accordance with the provisions of the tobacco monopoly law and these regulations.

However, the detailed rules on when and how to apply for the tobacco franchise Certificate in the offline stores of e-cigarettes have not been issued. A number of brand e-cigarette offline store agents said in an interview with reporters: first, they may have to apply for tobacco certificates in the future, but it should not be easy to do; Second, worry about the price rise of brands.

Ao Weinuo said that the state has made clear the regulatory body and product attributes of e-cigarettes, and I believe the relevant rules will be introduced in the next step. For the export-oriented e-cigarette industry, the introduction of regulatory rules involves export. Under the conditions of meeting international regulatory requirements and China's customs supervision, simplification and convenience should be realized, and enterprises should be encouraged and supported to earn foreign exchange through export, which is conducive to maintaining the global competitiveness of China's e-cigarette industry and the long-term development of e-cigarette industry.

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