State Tobacco Monopoly Administration holds e-cigarette regulation press conference

Thank you for your question, this is a very good question! E-cigarettes are special products, and the purpose of national legislation is to strengthen and strictly regulate them in accordance with the law. Since e-cigarettes were included in the supervision, tobacco monopoly bureaus at all levels have always adhered to the combination of effective market and effective government, implemented national tobacco control requirements, coordinated market demand and effective supply, and explored the establishment of dynamic balance management measures for supply and demand under total volume management. At present, according to the production capacity reported by enterprises and actual production and sales volume, the average capacity utilization rate of the three types of products, namely electronic cigarettes, atomizers, and nicotine for electronic cigarettes, is low, much lower than the average capacity utilization rate of the manufacturing industry. Therefore, we must further implement restrictive industrial policies, optimize industrial layout, strengthen total volume management, strictly control licensing access, and prevent disorderly development of industries.

First, we must resolutely prevent the establishment of new e-cigarette projects in violation of regulations. Guide local tobacco monopoly bureaus to do a good job in promoting and implementing industrial policies and explain policies and risks clearly. Make good use of government websites, 12313 hotlines and other platforms to give full play to the power of public supervision. Explore the establishment of a cross-departmental joint working mechanism, form a policy synergy, and cooperate with relevant departments to do a good job in dissuading the implementation of e-cigarette-related projects. Since being included in the supervision, nearly 500 new e-cigarette projects that violated regulations have been prevented.

The second is to implement strict total quantity management. In accordance with the principles of "fairness, openness, classified measures, and steady and orderly progress", the State Tobacco Monopoly Administration has strengthened production capacity management and production scale management, namely the "dual control" of production capacity and scale, to promote the goal of achieving a dynamic balance between supply and demand. In terms of production capacity management, it is planned to carry out capacity verification work for all e-cigarette related production companies starting from June this year, and print the verified capacity on the tobacco monopoly production enterprise license as an important basis for total quantity management. In the future, for those who fail to meet the standards in product quality, energy consumption, environmental protection, fire protection, and production safety, or produce unqualified products, the corresponding production capacity will be resolutely eliminated, to prevent e-cigarette companies from blindly expanding and duplicating construction, and to continuously promote the optimization and adjustment of the industrial layout. In terms of production scale management, we will improve the accuracy of market demand forecasts, improve the rules for production scale determination and adjustment, and strictly determine the production scale within the scope of new licenses. At the same time, we will increase our efforts in technical standard setting, corporate self-discipline management, corporate quality and safety system construction, product quality supervision and inspection, case investigation and handling, credit management, etc., to promote stable market operation and efficient allocation of resources.

Here, I would also like to briefly introduce the policy trends of the foreign e-cigarette industry. Overall, as awareness of the hazards of e-cigarettes gradually increases, e-cigarette regulatory policies around the world have become stricter and tighter. Since the second half of 2023, countries such as the United Kingdom, Belgium, and France have successively issued measures to ban the sale of disposable e-cigarettes and strengthen law enforcement on the import and domestic sales of e-cigarettes. I would also like to take this opportunity to appeal that the current e-cigarette production capacity is seriously oversupplied. Relevant local governments and companies should strictly implement the state's management requirements on "including e-cigarettes and other new tobacco products in the restricted category" and prohibit the construction of new e-cigarette projects.

Thank you for your question. The State Tobacco Monopoly Administration adheres to administration according to law, establishes market access and licensing management system rules for e-cigarette related manufacturers, formulates electronic license standards, forms a complete licensing management system, and continuously improves the standardization and regularization of administrative licensing. In 2022, the State Tobacco Monopoly Administration will issue licenses to all qualified e-cigarette-related production companies, and complete the first centralized license renewal for licensed companies in 2023, promoting the coordinated coordination of administrative licensing with business operations and daily supervision, and providing strong support for the legal and standardized governance of the e-cigarette industry.

At present, the e-cigarette industry is facing serious "involutionary" competition and structural problems. Some of the problems have broken the boundaries and bottom lines of market competition, distorted the market mechanism, and disrupted the order of fair competition. Starting from June 30, 2025, the validity period of the licenses of licensed e-cigarette related production enterprises will expire one after another. In response to the "involutionary" competition in the e-cigarette industry, the State Tobacco Monopoly Administration will coordinate policies, standards, licenses, and law enforcement, continue to optimize administrative licensing management, and do a good job in three aspects to lead the industry's legal and standardized governance:

    First, continue to refine and optimize the administrative licensing system. Further strengthen the organic connection between licensing access and e-cigarette industry policies and regulatory policies, standardize license application and management, create a fair, just and open business environment, promote the legal and standardized governance of the e-cigarette industry, and effectively protect people's health and safety. The State Tobacco Monopoly Administration has revised the "Management Rules for Tobacco Monopoly Licenses for Electronic Cigarette-Related Production Enterprises and Wholesale Enterprises" in light of the characteristics of the e-cigarette industry and regulatory practices. This revision did not add any new licensing matters or conditions, nor did it impose any unreasonable burdens or restrictions. It aims to refine and implement relevant requirements of national laws and regulations and the "Guidelines for Industrial Structure Adjustment (2024 Edition)" and the "Electronic Cigarette" mandatory national standards. The main contents of the revision are to refine the conditions for administrative licensing, clarify requirements such as resource conditions, quality assurance system, and quality and safety assurance capabilities; standardize application regulations for new licenses (reapplication), changes, and extensions (renewal of licenses); optimize the review procedures, standardize application materials, improve the review organization, and improve work efficiency and convenience services; improve dynamic management measures for licenses to guide enterprises to optimize and adjust; and improve supervision and management of license use.

The second is to strictly review administrative licenses. During this centralized license renewal period, the Tobacco Monopoly Bureau will conduct a "full coverage" review of the companies' compliance with licensing conditions in accordance with laws and regulations, optimize the review process, and coordinate written reviews and on-site inspections. In order to ensure smooth progress, during the centralized license renewal review period, any license applications submitted by enterprises after the renewal will not be processed. Classify and handle enterprises based on their actual conditions. For enterprises that meet the conditions and comply with regulations for production and operation, their licenses will be renewed normally in accordance with the law. For enterprises that slightly fail to meet the conditions but have not violated laws and regulations, their licenses will be renewed normally in accordance with the law if they complete rectification within the validity period of the license. For enterprises that have gaps with the prescribed conditions and cannot complete rectification within the validity period of the license, a rectification period will be set. After the rectification is completed, the license will be renewed in accordance with the law. If the rectification is not completed on time, the license will not be renewed. For enterprises that do not meet the prescribed conditions, their licenses will not be renewed in accordance with the law.

The third is to improve the service level of administrative licensing management. Tobacco Monopoly Bureaus at all levels will strengthen government services, actively carry out policy publicity and interpretation, and fully protect the legitimate rights and interests of administrative counterparts. The training guides licensed enterprises to improve production and operation in accordance with the relevant requirements of the revised "Detailed Rules for the Management of Tobacco Monopoly Licenses for Electronic Cigarette-Related Production Enterprises and Wholesale Enterprises", prepare application materials, especially prepare detailed funds, technology and equipment conditions, and materials proving compliance with electronic cigarette industry policy requirements, cooperate in on-site inspections, and provide relevant technical information, production archives, etc. Guide enterprises to be honest and trustworthy, fulfill their product quality and safety responsibilities, and carry out production and operations in accordance with laws and regulations. Strengthen supervision and law enforcement, and comprehensively utilize the results of "double random, one public" supervision, special rectification, operation supervision, quality supervision, case investigation and handling to promote administrative licensing and law enforcement supervision in an integrated manner.

Thank you for your question. Implementing “double random, one public” for e-cigarette related production enterprises and wholesale enterprises is an important means to strengthen the supervision of e-cigarette business entities in accordance with the law and continuously promote the legal and standardized governance of the e-cigarette industry. The "Notice of the Office of the State Tobacco Monopoly Administration on the Implementation of the 'Double Random, One Public' Supervision of Certified Electronic Cigarette-Related Production and Wholesale Enterprises" requires that tobacco monopoly bureaus at all levels will further improve the list of spot-check items, establish and improve the "two databases" for spot-checks, coordinate the formulation of spot-check work plans, scientifically implement spot-check inspections, strengthen the publicity and application of results, actively build a joint supervision mechanism, and coordinate the promotion of the "double random, one public" supervision work in their jurisdictions.

After the "Notice" was issued, tobacco monopoly bureaus at all levels formulated inspection plans and programs in accordance with the requirements of the notice, and insisted on steadily advancing all work in accordance with laws and regulations. At the same time, in accordance with the requirements of the "Notice", in response to the recent increased risks in the export trade of e-cigarettes and the "repeated bans on flavored e-cigarettes" in China, the State Tobacco Monopoly Administration has launched a special rectification campaign against e-cigarette violations.

This special rectification work focuses on four key tasks:

First, urge enterprises to fulfill their main responsibilities. The focus is on verifying whether the enterprise carries out production and operation activities strictly in accordance with the scope of the license. The second is to crack down on illegal production and operations. The focus is on checking whether companies are engaging in illegal production and sales of "high-intake electronic cigarettes", "flavored electronic cigarettes", "herbal atomization electronic cigarettes" and other illegal and irregular activities. The focus is on cracking down on illegal production and other illegal and irregular activities in which licensed enterprises are directly involved. The third is to curb the return of exports, focusing on verifying whether enterprises strictly implement export registration, standardized customs declaration, and comply with the laws and regulations of the export destination country (region) and other relevant requirements. Severely investigate and punish illegal activities of exporting and refluxing e-cigarettes. Fourth, comprehensive online and offline management will be carried out, with a focus on checking e-commerce social platforms, e-cigarette retailers, manufacturers and other entities, strengthening the open and secret inspections of clues to problems reported by complaints and reported cases under supervision, and strengthening joint supervision of e-cigarette logistics and delivery.

After the special rectification work was launched, a number of typical cases have been uncovered recently: some licensed companies illegally manufactured e-cigarette products for unlicensed companies. Preliminary investigation revealed that an illegal enterprise in Guangdong organized some licensed enterprises to produce for it, illegally producing about 320,000 disposable electronic cigarettes, about 9,000 smoking devices, and more than 3,000 cigarette cartridges, with the on-site value of the goods being nearly 30 million yuan. At present, the illegal production enterprises have been filed for investigation by the local public security organs on suspicion of illegal business operations, and the licensed enterprises have been administratively filed by the local Tobacco Monopoly Bureau. Some licensed manufacturing companies illegally produce outside of their licensed locations without permission in the name of technological research and development. Two atomizer companies in Guangdong set up companies outside the licensed address without permission and illegally used nicotine to produce atomizers. Some companies produce e-cigarette products that do not meet the standards of the destination country (region). These companies are unable to produce certification documents that comply with the production standards of the destination country (region) and can be deemed to be non-compliant with the laws, regulations and standards of the destination country or region, and have violated relevant provisions of the e-cigarette management measures. Verified illegal acts will be dealt with strictly and promptly in accordance with the law.

Next, the State Tobacco Monopoly Administration will guide local tobacco monopoly bureaus to continue to effectively carry out daily supervision, crack down on market chaos, comprehensively rectify laws and regulations, and safeguard national interests and consumer interests .