Notice of the Office of the State Tobacco Monopoly Administration on launching a special inspection to regulate the order of the e-cigarette market

Provincial Tobacco Monopoly Administration, Zhengzhou Tobacco Research Institute of China National Tobacco Corporation, Shanghai New Tobacco Products Research Institute Co., LTD. :

Recently, under the arrangement of the State Tobacco Monopoly Administration, Investigated and dealt with a number of cases of illegally manufacturing and selling "flavored e-cigarettes" which did not meet the mandatory national standards of e-cigarettes (GB 41700-2022) and did not pass the technical evaluation (namely, flavored e-cigarettes except tobacco flavored e-cigarettes, which were clearly prohibited by the Measures for the Administration of E-Cigarettes (Announcement No. 1 of the State Tobacco Monopoly Administration in 2022). We severely cracked down on the illegal production and sale of "milk tea cups" and "Coke cans" and other invisible mutations of e-cigarettes, effectively protecting people's health and safety, especially the physical and mental health of young people, and achieved phased results. However, the production and operation of e-cigarettes without tobacco monopoly license occurs from time to time. A few market players who have obtained tobacco monopoly license according to law evade supervision and even violate laws and regulations. Some e-cigarette manufacturers conduct transactions outside the trading management platform, and some e-cigarette manufacturers still illegally produce "flavored e-cigarettes". Individual retail market entities use the Internet and wechat business to illegally sell e-cigarettes. In order to further consolidate the achievements of supervision and law enforcement, standardize the order of the e-cigarette market, safeguard the rights and interests of legitimate market players and consumers, and continue to promote the law-based and standardized governance of the e-cigarette industry, the State Tobacco Monopoly Administration has decided to organize a special inspection to standardize the order of the e-cigarette market. The relevant matters are hereby notified as follows:

I. General Requirements and Basic Principles

 By carrying out special inspections on e-cigarette related manufacturers, e-cigarette wholesale enterprises and e-cigarette retail market players, comprehensively finding out evidence and clues of illegal e-cigarette manufacturing and selling, focusing on regulating the production and business activities of e-cigarette market players, and creating a good environment for promoting the legalization and standardization of the e-cigarette industry.

1. Adhering to law-based oversight Strengthen administration, supervision and handling of cases according to law, use legal thinking and legal methods to supervise the law-abiding operations of e-cigarette market players who have obtained tobacco monopoly licenses according to law, ban and shut down e-cigarette market players who have not obtained tobacco monopoly licenses according to law, investigate and crack down on illegal production and sale of e-cigarettes, and standardize the order of the e-cigarette market.

2. Ensuring people's health and safety. Implementing the concept of people-centered development, China has actively responded to social concerns, taken effective measures to carry out comprehensive inspection, rectification and rectification at the source of production, distribution channels and retail markets, and put an end to the illegal flow of substandard and substandard e-cigarette products into the market, so as to safeguard the rights and interests of consumers and protect minors from e-cigarettes.

3. Strengthening synergy. Adhere to the overall planning and overall promotion, promote the construction of a national "chess", industrial "whole chain" e-cigarette supervision pattern. We will coordinate with local governments, public security departments, municipal supervisors and other departments to strengthen clue investigation, consultation, research and judgment, and joint law enforcement, promote joint governance, and enhance working synergy.

Two, time steps

(1) Mobilization, deployment and detailed plans (from now to March 5). The State Tobacco Monopoly Administration issued special inspection notices, formulated inspection plans, assigned tasks, and defined the division of responsibilities and priorities. The tobacco monopoly administrations at the provincial level shall, in accordance with the inspection tasks, refine their work plans and make overall arrangements for the inspection work under their jurisdiction.

(2) Comprehensive inspection, clean-up and rectification (from March 6 to April 25). We continued to push forward inspection and rectification simultaneously, handed over and dealt with problem clues found during inspection in a timely manner, investigated and dealt with typical cases, solved prominent problems, established and improved the "one enterprise (household) one file" regulatory ledger, and did a good job in follow-up supervision and rectification work.

(3) Summarize and enhance the long-term (long-term persistence). The provincial tobacco monopoly administrations and inspection teams will report the results of the special inspections to the State Tobacco Monopoly Administration before April 30. Tobacco monopoly administrations at all levels should strengthen the application of inspection results, crack down on illegal production and business operations, and shut down market players who have not obtained tobacco monopoly licenses according to law.

Third, check the key points

(1) e-cigarette related manufacturers.

1. Enterprises that have not obtained the tobacco monopoly production enterprise license according to law. We will focus on the illegal production and trading of e-cigarette nicotine, aerosol and e-cigarette products after the transition period ends on October 1, 2022.

2. Enterprises that have obtained licenses for tobacco monopoly production enterprises according to law. Enterprises engaged in the production of e-cigarette products for domestic sale should focus on checking whether they produce and sell "flavored e-cigarettes"; Whether to produce (agent processing) domestic e-cigarette products that have not passed the technical evaluation; Whether there are acts of supplying goods not in accordance with the prescribed channels, and sales activities not conducted through the e-cigarette trading platform, etc. Enterprises engaged in the export of e-cigarette products should focus on checking whether their e-cigarette products are truly exported and whether they have established relevant quality and safety systems. Enterprises engaged in the production of nicotine and atomizer for e-cigarettes should focus on checking the source channels of raw materials they purchase and the flow direction of products, and whether they supply to enterprises without obtaining tobacco monopoly license according to law.

(2) e-cigarette wholesale enterprises.

Enterprises that have obtained licenses for tobacco monopoly wholesale enterprises according to law. Focus on checking whether there is product brand specification access, as well as the production enterprise marketing activities management, e-cigarette product business rules, logistics support capacity building, etc.

(3) e-cigarette retail market players.

1. For those who have not obtained the tobacco monopoly retail license according to law. The focus will be on whether they illegally engage in e-cigarette sales after the transition period ends on October 1, 2022.

2. To those who have obtained the tobacco monopoly retail license according to law. Focus on whether to set up warning signs to protect minors, whether to sell e-cigarette products to minors, whether to sell "flavored e-cigarettes", whether to buy e-cigarette products from channels other than local e-cigarette wholesale enterprises that have obtained tobacco monopoly license according to law, whether to sell e-cigarette products through the Internet, whether to exclusively manage e-cigarette products, etc.

Four, inspection methods

(1) Check the source. Through comprehensive complaints and reports, market investigation, platform trading, e-cigarette related on the Internet, e-cigarette logistics delivery and other regulatory information, find out the clues of illegal production and business, focusing on tracing the source of illegal e-cigarette production.

(2) Clear the market. Law enforcement shall be carried out on the spot to inspect the production and business sites, warehouses and storefronts of e-cigarette market players, and timely clean up and remove the illegal products on sale. We will implement the dynamic management of licenses and regulate the production and operation behaviors of market players who have obtained tobacco monopoly licenses according to law.

(3) Pursuing responsibility. Solidify the evidence of illegal production and operation, seriously investigate and punish a number of cases of illegal production and operation of e-cigarettes, and promptly transfer the illegal behavior suspected of constituting a crime to judicial organs for criminal responsibility, so as to form a deterrent and strengthen the quality and effectiveness of e-cigarette supervision.

5. Job Requirements

1. Raise awareness and strengthen leadership. Fully recognize the significance of special inspection on regulating the order of the e-cigarette market, safeguarding the rights and interests of consumers, and protecting the healthy growth of minors, earnestly perform the duties of e-cigarette supervision, strengthen the organization and leadership, overall planning and coordination of special inspection, and improve the quality and efficiency of work. We will carry out "double random and open" oversight, implement the reform requirements of "delegating regulation and service", strictly regulate, enforce law in a fair and civilized manner, and uphold the bottom line of integrity and self-discipline.

2. Careful organization and overall planning. The State Tobacco Monopoly Administration has coordinated the deployment with the previous deployment and regular supervision of the e-cigarette market. The State Tobacco Monopoly Administration and provincial tobacco monopoly administrations shall form several inspection teams to conduct hierarchical and classified inspections. Provincial tobacco monopoly administrations should take the initiative to coordinate with local public security, municipal supervision and other departments to ensure the implementation of enterprise-by-enterprise and house-by-house inspections.

(3) Strengthen publicity and effective guidance. Strengthen the publicity and implementation of laws, regulations and policies on e-cigarettes, guide e-cigarette market players to consciously operate in accordance with the law, and supervise e-cigarette market players who have obtained tobacco monopoly licenses in accordance with the law to conduct transactions and record through e-cigarette trading platforms. We will strengthen the use of cases to interpret laws and warn against them, and form a regulatory deterrent. We took the initiative to respond to public concerns, promptly reflected the results of special inspections, and created a favorable atmosphere for public opinion.

All provincial tobacco monopoly administrations and inspection groups should timely sort out new situations and problems encountered in special inspections, typical cases and progress in stages, and do a good job in reporting, communicating and connecting work. Upon completion of the special inspection, the State Tobacco Monopoly Administration shall report to the State Tobacco Monopoly Administration a comprehensive review of the results, useful experience, outstanding problems, investigation and handling of major cases, and suggestions on policies and measures.

Office of the State Tobacco Monopoly Administration

February 28, 2023