China State Tobacco Monopoly Administration Release Q&As Related to Electronic Cigarette Licensing and Product Technical Review

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On June 2nd, the official website of the China State Tobacco Monopoly Administration officially released the “Answer to Questions Related to Electronic Cigarette Administrative Licensing and Product Technical Review”, focusing on issues of public concern and telephone consultations and website messages from various market players. Answers to questions.

Regulation Highlights in China

In the near future, a batch of tobacco monopoly production enterprise licenses for e-cigarette-related production enterprises that meet the administrative licensing conditions will be approved and issued.
Most electronic cigarette manufacturers have filled in the application for product technical review on time, and submitted electronic cigarette products for inspection and review in a timely manner. The technical review agency is carrying out product review according to procedures, and the overall progress is smooth.
Existing e-cigarette companies can apply for a production enterprise license and apply for a product technical review at the same time.
Electronic cigarette manufacturers can apply for product technical review in three synchronizations: one is to simultaneously fill in the application in the product technical review system; the other is to simultaneously submit products to product testing institutions for inspection; the third is to simultaneously provide products for review to technical review institutions.
After the transition period, the sales of electronic cigarette products, atomizers and nicotine for electronic cigarettes by electronic cigarette manufacturers outside the electronic cigarette transaction management platform( https://ecig.cn/ ) will be investigated and punished according to law.
Relevant state departments are studying the taxation of electronic cigarettes and proceed according to the procedures.
The main function of the national unified e-cigarette transaction management platform has been completed, and the verification has been completed in some regions and enterprises through pilot methods. On June 15, 2022, the platform will be officially launched as scheduled. At that time, the manufacturers of nicotine for electronic cigarettes, atomizer manufacturers, electronic cigarette manufacturers, electronic cigarette wholesale enterprises, electronic cigarette retail business entities, etc. that have obtained the tobacco monopoly license according to the law. The market entities of e-cigarettes should gradually go to the platform for trading and settlement.
Solid electronic cigarettes and other products are heated cigarettes. Heated cigarettes have been included in cigarette management in accordance with relevant laws and regulations. At present, Administration has not approved heated cigarettes for sale in China, and any market entity shall not illegally operate heated cigarettes.

Full Article

The “Measures for the Administration of Electronic Cigarettes” was released on March 11, 2022, and will come into force on May 1, 2022. The national standard for “E-Cigarette” was released on April 8, 2022, and will be implemented on October 1, 2022. Since May 5, 2022, the administrative department of the tobacco monopoly has gradually promoted the administrative licensing of e-cigarette market entities, product technical review, and other work. We are here to answer the concerns of the public and the relevant questions reflected in the telephone consultation of various market entities and the website messages.

Q: What work has been done in the administrative licensing and product technical review of electronic cigarettes, and what is the progress?
A: After the release of the national standards for “Electronic Cigarette Management Measures” and “Electronic Cigarettes”, the administrative department of the tobacco monopoly of the State Council issued relevant supporting policies and measures and instructions for handling matters. Publicity and training on policies related to licensing issuance and technical review of electronic cigarette products timely answered questions raised by some market players and provided relevant guidance and services.
At present, the review and issuance of tobacco monopoly production enterprise licenses, wholesale enterprise licenses, and retail licenses for e-cigarette companies are progressing smoothly. From May 5, 2022, the tobacco monopoly administrative department of the State Council and the relevant provincial tobacco monopoly administrative departments have begun to accept applications for tobacco monopoly production enterprise licenses from existing electronic cigarette-related production enterprises, and accept electronic cigarette wholesale enterprises. Tobacco monopoly wholesale enterprises License change applications and began to conduct preliminary verification and review of applications from e-cigarette-related manufacturers and wholesalers. Shortly, a batch of tobacco monopoly production enterprise licenses for e-cigarette-related production enterprises that meet the administrative licensing conditions will be approved and issued; changes to the tobacco monopoly wholesale licenses of eligible e-cigarette wholesale enterprises will be approved. From June 1, 2022, applications for tobacco monopoly retail licenses from the main players in the e-cigarette retail market will be accepted. After passing the review, tobacco monopoly retail licenses will be issued one after another.
After two rounds of public comments on the “E-Cigarette”, it was officially released on April 8, 2022, giving e-cigarette manufacturers sufficient time to design product compliance and complete product transformation by the “E-Cigarette” national standard. At present, most electronic cigarette manufacturers have filled in the application for product technical review on time and submitted electronic cigarette products for inspection and review on time. The technical review agency is carrying out product reviews according to procedures, and the overall progress is smooth. However, the characteristic flavors of the products submitted for inspection and review by individual e-cigarette manufacturers present flavors other than tobacco (such as fruity, cool, candy, etc.) Pass the product technical review. According to regulations, only electronic cigarette products that have passed the technical review can enter the electronic cigarette transaction management platform. After the transition period, products that have not passed the technical review shall not be marketed in China.
Q: Can existing e-cigarette companies carry out production enterprise license applications and product technical review applications at the same time?
A: Stock e-cigarette companies can apply for production enterprise licenses and product technical review applications at the same time. According to the relevant regulations such as the “Measures for the Administration of Electronic Cigarettes”, electronic cigarette enterprises that formally apply for the license of tobacco monopoly production enterprises should meet the requirements of the national electronic cigarette industry policy, and have electronic cigarette products that meet the national standards of “Electronic Cigarettes” and have passed technical review.
Electronic cigarette manufacturers can apply for product technical review in “three synchronizations”: one is to simultaneously fill in the application in the product technical review system; the other is to simultaneously submit products to product testing agencies for inspection; the third is to simultaneously provide products for review to technical review agencies. The products submitted by e-cigarette companies for inspection and review should be consistent and meet the national standards of “E-cigarettes”, and no other flavors other than tobacco flavors (such as fruit flavors, cool flavors, candy flavors, etc.) are allowed. Relevant technical institutions provide targeted technical services to e-cigarette companies that submit products for review, guide e-cigarette companies to correct relevant technical content, and do a good job in the relevant technical work of the application.
Q: Can e-cigarette manufacturers that have not obtained production licenses conduct transactions through the e-cigarette transaction management platform?
Answer: According to the relevant provisions of the “Measures for the Administration of Electronic Cigarettes”, electronic cigarette manufacturers that have not obtained a production license are not allowed to trade through electronic cigarette trading platforms. After the transition period, e-cigarette manufacturers who sell e-cigarette products, atomizers, and nicotine for e-cigarettes outside the e-cigarette transaction management platform will be investigated and punished according to law.
Q: When will the e-cigarette tax policy be introduced?
A: It is reported that the relevant state departments are studying and advancing according to the procedures.
Q: How to know the relevant information about applying for the e-cigarette retail license?
A: To standardize the management of e-cigarette retail licenses and clarify the requirements for the layout of e-cigarette retail outlets, the tobacco monopoly administrative department of the State Council issued the “Guiding Opinions on the Layout and License Management of Electronic Cigarette Retail Points” on April 15, 2022, and On April 25, the “Notices for the Application of Licenses for Electronic Cigarette Production and Operation Entities ” was released, which clarified the relevant information that the e-cigarette retail market entities need to know to apply for licenses. Recently, the administrative departments of tobacco monopolies in various places have taken the initiative to publicize and implement the e-cigarette license management policy to the e-cigarette retail market entities and the public through various online and offline channels, and guide the existing e-cigarette market entities to apply for e-cigarette retail licenses. Tobacco monopoly retail license offices in various places also publicize relevant information on electronic cigarette retail licenses for public inquiries. In addition, the public can also call the service hotline 12313 for policy consultation or consult the local tobacco monopoly administrative department.
Q: What is the progress of the construction of the e-cigarette transaction management platform?
A: The main function of the national unified e-cigarette transaction management platform has been completed, and the verification has been completed in some regions and enterprises through pilot methods. On June 15, 2022, the platform will be officially launched as scheduled. At that time, the manufacturers of nicotine for electronic cigarettes, atomizer manufacturers, electronic cigarette manufacturers, electronic cigarette wholesale enterprises, electronic cigarette retail business entities, etc. that have obtained the tobacco monopoly license according to the law. The market entities of e-cigarettes should gradually go to the platform for trading and settlement. At the same time, electronic cigarette importing enterprises should gradually file the import of electronic cigarette products, vaping products, and nicotine for electronic cigarettes through the platform, and electronic cigarette manufacturers, vaping manufacturers, and nicotine manufacturers for electronic cigarettes should export electronic cigarette products and vaping products. , Nicotine for e-cigarettes should be gradually filled through the platform.
Q: How to manage products such as “solid electronic cigarettes” that are similar in appearance to cigarettes?
A: According to the “Reply of the State Tobacco Monopoly Administration on Legal Issues Concerning the Application of New Cigarettes” (National Tobacco Law [ 2022 ] No. 61 ), the appearance is similar to that of cigarettes, and the interior is wrapped with silk, powder, granular and other substances, and the smoke is released by heating Products such as “solid electronic cigarettes” with smoke such as alkali (nicotine) belong to heated cigarettes. Heated cigarettes have been included in cigarette management following relevant laws and regulations. At present, my country has not approved heated cigarettes for sale in China, and any market entity shall not illegally operate heated cigarettes.