China is the inventor and main production place of e-cigarettes. More than 90% of the world’s e-cigarettes come from Shenzhen and other places in China, but China’s supervision of them is still blank. In China, e-cigarettes are neither medicines, health care products, medical devices, nor tobacco. Therefore, most e-cigarettes are in the “three noes” state, that is, there are no product standards, no quality supervision, and no safety evaluation.
Internationally, there are also great differences in the attitudes and policies of governments towards e-cigarettes. Some countries consider it a consumer product, others a drug, and still others a tobacco product. Therefore, the policies on e-cigarettes are also different. Some countries support it, some countries ban it, some countries carry out appropriate regulation, and some countries have not made a statement until 2019.
In response to the e-cigarette issue reported at the “3.15” party, the National Equity Transfer Company has asked listed companies involved in the production and sales of e-cigarettes to conduct self-examination, and fully disclose whether the relevant products have adverse effects on human health.
On June 3, 2019, the official website of the National Standardization Management Committee showed that the national standard formulation plan for “Electronic Cigarettes” was issued on October 11, 2017. The competent authority is the State Tobacco Monopoly Administration, which is a mandatory national standard. The mandatory national standard of “E-cigarette” has been reviewed and is in the state of “approving”. According to the project plan schedule, it may be released within this year.
On November 1, 2019, the State Tobacco Monopoly Administration and the State Administration for Market Regulation jointly issued the “Notice on Further Protecting Minors from Electronic Cigarettes”. The “Notice” mentioned that e-cigarette production and sales companies or individuals are urged to close e-cigarette Internet sales websites or clients in a timely manner; e-commerce platforms are urged to close e-cigarette stores in a timely manner and remove e-cigarette products from shelves in a timely manner; urge e-cigarette production, Selling companies or individuals withdraw e-cigarette advertisements published through the Internet.
On July 13, 2020, the State Tobacco Monopoly Administration held a video conference on the deployment of a special inspection of the e-cigarette market. The meeting required that the main responsibility of the e-cigarette physical store be compacted, and insist on cracking down on irregularities in e-cigarettes, and resolutely prevent repeated. The State Tobacco Monopoly Administration held a video conference on the deployment of a special inspection of the e-cigarette market. The meeting pointed out that carrying out a special inspection of the e-cigarette market is another important measure jointly promoted by the State Tobacco Monopoly Administration and the State Administration for Market Regulation. It shows that It has demonstrated the clear attitude and firm determination of the two departments to continue to crack down on illegal production and sales of e-cigarettes and protect the rights and interests of minors. The special inspection of the e-cigarette market will start on July 10, 2020, and will last for two months. Tobacco monopoly bureaus at all levels should actively cooperate with market supervision departments at the same level to effectively strengthen organizational leadership, analysis and judgment, and overall coordination, and strive to thoroughly rectify the chaos in the e-cigarette market and strive to achieve the expected goal of e-cigarette supervision; attach great importance to the policy of special inspection actions Due to the complexity of gender and practical issues, we strictly follow the laws and regulations to ensure that practical results are achieved. Provincial bureaus must continue to exert regulatory pressure, continuously increase control efforts, insist on cracking down on e-cigarette irregularities, and resolutely prevent recurrence.
On November 26, 2021, the State Council issued a decision on amending the “Regulations for the Implementation of the Tobacco Monopoly Law of the People’s Republic of China”. In order to strengthen the supervision of new tobacco products such as e-cigarettes, the State Council decided to amend the Regulations for the Implementation of the Tobacco Monopoly Law of the People’s Republic of China as follows: add one article as Article 65: The provisions shall be implemented.” In addition, the order of the provisions shall be adjusted accordingly. This decision will come into effect on the date of promulgation. The “Regulations for the Implementation of the Tobacco Monopoly Law of the People’s Republic of China” shall be revised accordingly in accordance with this decision and re-published.
From May 1, 2022, the revised “Several Regulations on Tobacco Monopoly in Gansu Province” (hereinafter referred to as the “Regulations”) will come into force. The “Regulations” emphasize that anyone who violates the regulations and sells cigarettes (including electronic cigarettes) to minors and refuses to make corrections or the circumstances are serious, may be fined not less than 50,000 yuan but not more than 500,000 yuan.
From October 1, 2022, the State Administration for Market Regulation and the National Standardization Management Committee approved the release of the “Compulsory National Standard for Electronic Cigarettes” (gb 41700-2022). It means that the rule of law and standardized development of the electronic cigarette industry has entered a new stage.
In 2022, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation issued an announcement on the collection of consumption tax on e-cigarettes, including e-cigarettes in the scope of consumption tax collection, adding an e-cigarette sub-item under the tobacco tax item, and implementing ad valorem pricing for e-cigarettes. . The tax rate for the production (import) link is 36%, and the tax rate for the wholesale link is 11%. Taxpayers exporting e-cigarettes are subject to the export tax refund (exemption) policy. Add e-cigarettes to the non-exempt list of imported goods in the frontier mutual market and collect taxes according to regulations. This announcement will be implemented from November 1, 2022.
