Major Update! Amendment to the Regulations for the Implementation of the Tobacco Monopoly Law: Heate

According to news from the China Government Network on November 26, the State Council issued a decision on the 26th to amend 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 make the following amendments to the "Regulations for the Implementation of the Tobacco Monopoly Law of the People's Republic of China":
 
Add one article as Article 65: New tobacco products such as e-cigarettes shall be implemented in accordance with the relevant provisions of these Regulations on cigarettes. rdquo;

In addition, the order of the provisions has been adjusted accordingly.

The decision will come into effect as of the date of promulgation.

The "Regulations for the Implementation of the Tobacco Monopoly Law of the People's Republic of China" are revised accordingly and re-promulgated in accordance with the decision. The full text is as follows:

Implementation Regulations of the Tobacco Monopoly Law of the People's Republic of China

(Issued by Order No. 223 of the State Council of the People's Republic of China on July 3, 1997, according to the Decision of the State Council on Abolishing and Amending Certain Administrative Regulations of the People's Republic of China on July 18, 2013, the first revision was based on the Decision of the State Council on Amending Certain Administrative Regulations of February 6, 2016, and the second revision was based on the Decision of the State Council on Amending the Implementation Regulations of the Tobacco Monopoly Law of the People's Republic of China on November 10, 2021 Third revision)

chapter I General provisions

Article 1 These Regulations are formulated in accordance with the Tobacco Monopoly Law of the People's Republic of China (hereinafter referred to as the Tobacco Monopoly Law).

Article 2 Tobacco monopoly refers to the system in which the state implements monopoly management and unified management of the production, sales and import and export of tobacco monopoly commodities.

Article 3 Tobacco tobacco in tobacco monopoly products refers to silk, powder and granular goods processed from tobacco leaves, recured tobacco leaves, and tobacco flakes as raw materials.

Article 4 The responsibilities and leadership system of the tobacco monopoly administrative departments of the State Council and provinces, autonomous regions and municipalities directly under the Central Government shall be implemented in accordance with the provisions of Article 4 of the Tobacco Monopoly Law. In cities and counties with tobacco monopoly administrative departments, the municipal or county tobacco monopoly administrative departments shall be in charge of tobacco monopoly work within their own administrative areas. They shall be subject to the dual leadership of the tobacco monopoly administrative department at the next higher level and the people's government at the same level, and the leadership of the tobacco monopoly administrative department at the higher level is the main priority.

Article 5 The state controls the tar content of cigarettes and cigars and the main additives used in cigarettes and cigars. Tobacco product production enterprises are not allowed to use harmful additives and pigments in violation of relevant state regulations.

Chapter 2 Tobacco Monopoly License

Article 6 Those engaged in the production, wholesale and retail of tobacco monopoly commodities, as well as 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.

Tobacco monopoly licenses are divided into:

(1) Tobacco monopoly production enterprise license;

(2) Tobacco monopoly wholesale enterprise license;

(3) Tobacco monopoly retail license.

Article 7 To obtain a tobacco monopoly production enterprise license, the following conditions shall be met:

(1) Having funds suitable for the production of tobacco monopoly products;

(2) Having the technical and equipment conditions needed for the production of tobacco monopoly products;

(3) Meet the industrial policy requirements of the national tobacco industry;

(4) Other conditions stipulated by the tobacco monopoly administrative department of the State Council.

Article 8 To obtain a license for a tobacco monopoly wholesale enterprise, the following conditions must be met:

(1) Having funds suitable for operating tobacco product wholesale business;

(2) Having a fixed business site and necessary professional personnel;

(3) Meet the requirements for reasonable layout of tobacco monopoly wholesale enterprises;

(4) Other conditions stipulated by the tobacco monopoly administrative department of the State Council.

Article 9 To obtain a tobacco monopoly retail license, the following conditions must be met:

(1) Having funds suitable for operating tobacco product retail business;

(2) Having a fixed business site;

(3) Meet the requirements for reasonable layout of tobacco product retail outlets;

(4) Other conditions stipulated by the tobacco monopoly administrative department of the State Council.

Article 10 The tobacco monopoly administrative department shall issue and implement management of tobacco monopoly licenses and tobacco monopoly commodity transportation permits in accordance with the provisions of the Tobacco Monopoly Law and these Regulations.# p#pagination title #e#

Article 11 Anyone applying for a license for a tobacco monopoly production enterprise shall submit an application to the tobacco monopoly administrative department of a province, autonomous region, or municipality directly under the Central Government (hereinafter referred to as the provincial level). The provincial tobacco monopoly administrative department shall review and sign the opinions, and report to the State Council. The tobacco monopoly administrative department shall approve and issue certificates.

Article 12 Anyone who applies for a license for a tobacco monopoly wholesale enterprise to operate across provinces, autonomous regions, or municipalities directly under the Central Government shall submit an application to the provincial tobacco monopoly administrative department, which shall review and sign the opinions and report them to the State Council. The tobacco monopoly administrative department shall approve and issue certificates.

If you apply for a license for a tobacco monopoly wholesale enterprise and operate within a province, autonomous region or municipality directly under the Central Government, you shall submit an application to the local tobacco monopoly administrative department where the enterprise is located. The local tobacco monopoly administrative department where the enterprise is located shall review and sign the opinions, and report to the provincial tobacco monopoly administrative department for approval and issuance of certificates.

Article 13 An application for obtaining a tobacco monopoly retail license shall be handled in accordance with the provisions of the Tobacco Monopoly Law.

Article 14 The issuing authority of tobacco monopoly licenses may inspect enterprises and individuals that have obtained tobacco monopoly licenses regularly or irregularly. If the conditions stipulated in the Tobacco Monopoly Law and these Regulations are not met after inspection, the issuing authority of the tobacco monopoly license may order the suspension of the tobacco monopoly business and rectification until the qualification to engage in tobacco monopoly business is cancelled.

Specific management measures for tobacco monopoly licenses shall be formulated by the tobacco monopoly administrative department of the State Council in accordance with the provisions of these Regulations.

Chapter 3 Planting, Purchase and Allocation of Tobacco Leaf

Article 15 The tobacco monopoly administrative department of the State Council shall, in accordance with the requirements of reasonable layout, work together with the people's governments of relevant provinces, autonomous regions and municipalities directly under the Central Government to formulate tobacco planting plans in accordance with national plans and in accordance with the principles of improved varieties, regionalization and standardization.

Article 16 Tobacco leaves shall be purchased uniformly by tobacco companies or their entrusting units in accordance with the law. Tobacco companies or their entrusting units may, according to needs, set up tobacco purchasing stations (points) to purchase tobacco leaves in areas where the state has issued a tobacco purchase plan. The establishment of tobacco leaf purchasing stations (points) shall be approved by the municipal tobacco monopoly administrative department divided into districts. No unit or individual may purchase tobacco leaves without approval.

Article 17 The local tobacco monopoly administrative department shall organize relevant departments at the same level and representatives of tobacco leaf producers to form a tobacco leaf rating group to coordinate the evaluation of tobacco leaf purchase levels.

Article 18 The plan for the state to reserve and export tobacco leaves and the plan for tobacco leaf allocation shall be issued by the planning department of the State Council.

Chapter 4 Production of Tobacco Products

Article 19 To establish a tobacco product production enterprise, the provincial tobacco monopoly administrative department shall report to the tobacco monopoly administrative department for approval by the tobacco monopoly administrative department under the State Council, obtain a tobacco monopoly production enterprise license, and be approved and registered by the administrative department for industry and commerce.

Article 20 Tobacco product production enterprises must strictly implement the production plan issued by the state.

Article 21 It is prohibited to use mouldy tobacco leaves to produce cigarettes, cigars and cut tobacco.

Article 22 Cigarettes, cigars and packaged tobacco shall use registered trademarks.

Chapter 5 Sales of tobacco products

Article 23 An enterprise that has obtained a license for a tobacco monopoly wholesale enterprise shall engage in the wholesale business of tobacco products within the business scope and geographical scope specified in the license.

Enterprises or individuals that have obtained tobacco monopoly retail licenses shall purchase goods from local tobacco monopoly wholesale enterprises and accept the supervision and management of the tobacco monopoly license issuing authority.

Article 24 If a unit or individual without a tobacco monopoly wholesale enterprise license sells more than 50 cigarettes and cigars at a time, it shall be deemed to engage in the wholesale business of tobacco products without a tobacco monopoly wholesale enterprise license.

Article 25 No unit or individual may sell illegally produced tobacco products.

Article 26 Tobacco monopoly production enterprises and tobacco monopoly wholesale enterprises shall not provide tobacco products to units or individuals without tobacco monopoly retail licenses.

Article 27 For cigarettes and cigars sold in China, the tar content level and the Chinese words saying smoking is harmful to health shall be marked on the small packets and cartons.

Article 28 The tobacco monopoly administrative department of the State Council may, when necessary, issue the allocation of cigarettes and cigars between provinces, autonomous regions, and municipalities directly under the Central Government based on market supply and demand.

Article 29 It is strictly prohibited to sell mouldy or deteriorated tobacco products. Moldy or deteriorated tobacco products shall be destroyed under the supervision of the tobacco monopoly administrative department or relevant administrative department.# p#pagination title #e#

Article 30 Counterfeit trademark tobacco products seized by relevant departments in accordance with the law shall be handed over to the tobacco monopoly administrative department for public destruction in accordance with relevant state regulations, and sales in any form are prohibited.

Article 31 The identification and testing of counterfeit trademark tobacco products shall be carried out by the tobacco quality testing station designated by the product quality supervision and administration department of the State Council and the product quality supervision and administration department of the people's government of provinces, autonomous regions, and municipalities directly under the Central Government.

Chapter 6 Transportation of tobacco monopoly commodities

Article 32 The transportation permit for tobacco monopoly goods shall be approved and issued by the tobacco monopoly administrative department at or above the provincial level or its authorized institution. The management measures for tobacco monopoly commodity transportation permits shall be formulated by the tobacco monopoly administrative department of the State Council.

Article 33 Imported tobacco monopoly commodities, domestic tobacco special machinery, cigarette tow, filter rods, and cut imported cigarette paper transported across provinces, autonomous regions, and municipalities directly under the Central Government shall be consigned or self-shipped on the basis of the tobacco monopoly administrative department under the State Council or its authorized agency.

When transporting other domestic tobacco monopoly goods other than domestic tobacco special machinery, cigarette tow, filter rods and cut imported cigarette paper across provinces, autonomous regions, and municipalities directly under the Central Government, the tobacco monopoly goods transportation permit issued by the tobacco monopoly administrative department of the State Council or the provincial tobacco monopoly administrative department shall be used for consignment or self-shipment.

When transporting tobacco monopoly goods across cities and counties within provinces, autonomous regions, and municipalities directly under the Central Government, they shall be consigned or transported by themselves on the basis of the tobacco monopoly goods transportation permit issued by the provincial tobacco monopoly administrative department or its authorized institution.

To transport smuggled tobacco monopoly commodities confiscated in accordance with the law, the tobacco monopoly commodity transportation permit issued by the tobacco monopoly administration department under the State Council shall be used for consignment or self-shipment.

Article 34 In any of the following circumstances, tobacco monopoly commodities shall be transported without a tobacco monopoly commodity transportation permit:

(1) Transporting tobacco monopoly goods in excess of the quantity and scope specified in the tobacco monopoly goods transportation permit;

(2) Using an expired, altered or copied transportation permit for tobacco monopoly goods;

(3) Without a tobacco monopoly goods transportation permit and unable to provide a valid certificate for purchasing tobacco monopoly goods locally;

(4) Other acts of transporting tobacco monopoly goods without a tobacco monopoly goods transportation permit.

Article 35 For the transfer of tobacco products under customs supervision, transportation procedures shall be completed in accordance with the national regulations on customs transfer.

Chapter 7 Production and sales of cigarette paper, filter rods, cigarette tow, and tobacco special machinery

Article 36 Tobacco monopoly wholesale enterprises and tobacco product production enterprises can only purchase cigarette paper, filter rods, cigarette tow and tobacco special machinery from enterprises that have obtained tobacco monopoly production enterprise licenses.

Enterprises producing cigarette paper, filter rods, cigarette tow, and tobacco special machinery shall not sell their products to units or individuals without a tobacco monopoly production enterprise license.

Article 37 The purchase, sale and transfer of special tobacco machinery must be approved by the tobacco monopoly administrative department under the State Council.

The list of special tobacco machinery shall be prescribed by the tobacco monopoly administrative department of the State Council.

Article 38 No unit or individual may sell illegally produced tobacco special machinery, cigarette paper, filter rods and cigarette tow.

Eliminate scrapped and illegally assembled tobacco special machinery, and defective cigarette paper, filter rods, cigarette tow and leftovers shall be supervised and disposed of by the local tobacco monopoly administrative department and shall not be sold in any way.

Chapter 8 Import and Export Trade and Foreign Economic and Technological Cooperation

Article 39 The establishment of a foreign-invested tobacco monopoly production enterprise must be submitted to the competent tobacco monopoly administrative department under the State Council for review and approval before approval can be approved in accordance with relevant national regulations.

Article 40 The plan to import tobacco monopoly products shall be submitted to the tobacco monopoly administrative department of the State Council for review and approval.

Article 41 Tobacco products imported duty-free shall be stored in bonded warehouses designated by the customs, and shall be jointly locked and managed by the local tobacco monopoly administrative department designated by the tobacco monopoly administrative department under the State Council and the customs. The customs will write off the quantity of duty-free imported foreign tobacco products in batches based on the duty-free import plan approved by the tobacco monopoly administrative department of the State Council.

Article 42 Those who operate duty-free cigarettes and cigars in the customs supervision area can only be retail, and special signs prescribed by the tobacco monopoly administrative department of the State Council shall be marked on the small packets and strips of cigarettes and cigars.# p#pagination title #e#

Article 43 For cigarettes and cigars specially for export, the words "Special for Export" shall be marked with the words "Special for Export in Chinese on the small package or packet.

Chapter 9 Supervision and Inspection

Article 44 The competent tobacco monopoly administrative department shall supervise and inspect the implementation of the Tobacco Monopoly Law and these Regulations in accordance with the law, investigate and deal with cases of violations of the Tobacco Monopoly Law and these Regulations, and jointly investigate and deal with the smuggling and trafficking of tobacco monopoly goods, counterfeiting and shoddy goods in conjunction with relevant state departments.

Article 45 The tobacco monopoly administrative department under the State Council may, when necessary, set up dispatched offices in key areas based on the actual situation of tobacco monopoly work; the provincial tobacco monopoly administrative department may, when necessary, dispatch personnel to enterprises producing and operating tobacco monopoly products. The dispatched offices and dispatched personnel shall supervise and inspect the production and business activities of tobacco monopoly commodities within the scope authorized by the dispatched department.

Article 46 When investigating and handling cases of violations of the Tobacco Monopoly Law and these Regulations, the tobacco monopoly administrative department may exercise the following powers:

(1) Interrogating parties, suspects and witnesses in illegal cases;

(2) Inspecting the business premises of the parties involved in illegal cases and disposing of illegally produced or operated tobacco monopoly products in accordance with the law;

(3) Reviewing and copying contracts, invoices, account books, receipts, records, documents, business correspondence and other materials related to illegal activities.

Article 47 The tobacco monopoly administrative department or the tobacco monopoly administrative department, in conjunction with relevant departments, may inspect and deal with illegal transportation of tobacco monopoly products in accordance with the law.

Article 48 If tobacco monopoly commodities confiscated by the people's courts and administrative agencies in accordance with the law and tobacco monopoly commodities used to offset fines, fines and taxes are auctioned in accordance with relevant state regulations, the bidder shall hold a tobacco monopoly wholesale enterprise license.

When an auction enterprise established in accordance with the law auctioning tobacco monopoly goods, it shall verify the qualifications of bidders. Auction enterprises that auction tobacco monopoly commodities shall accept the supervision of the tobacco monopoly administrative department.

Article 49 When performing official duties, monopoly management inspectors of the tobacco monopoly administrative department shall wear the badge issued by the tobacco monopoly administrative department under the State Council and present the inspection certificate issued by the tobacco monopoly administrative department at or above the provincial level.

Article 50 Meritorious units and individuals who report illegal cases of tobacco monopoly shall be rewarded.

Chapter 10 Legal Liability

Article 51 Anyone who is punished in accordance with the provisions of Article 30 of the Tobacco Monopoly Law shall be implemented in accordance with the following provisions:

(1) Those who purchase tobacco leaves without authorization may be fined between 20% and 50% of the value of the illegally purchased tobacco leaves, and the illegally purchased tobacco leaves may be purchased at 70% of the average purchase price of tobacco leaves in the previous year issued by the provincial tobacco monopoly administrative department at the place where the seizure was seized;

(2) Those who purchase more than 1000 kilograms of tobacco leaves without authorization shall confiscate the illegally purchased tobacco leaves and illegal income in accordance with the law.

Article 52 If penalties are imposed in accordance with the provisions of Article 31 of the Tobacco Monopoly Law, the following provisions shall be implemented:

(1) Those who consign or transport tobacco monopoly commodities by themselves without a transportation permit or in quantities exceeding the specified in the transportation permit shall be fined between 20% and 50% of the value of the illegally transported tobacco monopoly commodities, and may purchase illegally transported tobacco leaves at 70% of the average purchase price of tobacco leaves in the previous year issued by the provincial tobacco monopoly administrative department, and purchase illegally transported tobacco monopoly commodities other than tobacco leaves at 70% of the wholesale market price.

(2) In any of the following circumstances, the illegally transported tobacco monopoly commodities and illegal income shall be confiscated:

1. The value of illegally transported tobacco monopoly goods exceeds 50,000 yuan or the number of cigarettes transported exceeds 100 pieces (1 piece per 10,000 pieces);

2. Being punished more than twice by the tobacco monopoly administrative department;

3. Resisting the supervision and inspection personnel of the tobacco monopoly administrative department to conduct inspections in accordance with the law;

4. Illegal transportation of smuggled tobacco monopoly commodities;

5. Transporting tobacco monopoly products produced by an enterprise without a tobacco monopoly production enterprise license;

6. Using camouflage to illegally transport tobacco monopoly commodities;

7. Using special vehicles to transport tobacco monopoly goods to evade inspection;

8. Other illegal transportation activities, if the circumstances are serious.

(3) If the carrier knows that it is a tobacco monopoly product but transports it to a unit or individual without a transportation permit, the illegal income shall be confiscated and a fine of not less than 10% but not more than 20% of the value of the illegally transported tobacco monopoly product may be imposed.# p#pagination title #e#

(4) Those who mail or carry tobacco leaves or tobacco products in other places exceeding the limit set by the relevant departments of the State Council shall be punished in accordance with the provisions of Item (1) of this Article.

Article 53 If penalties are imposed in accordance with the provisions of Article 32 of the Tobacco Monopoly Law, the following provisions shall be implemented:

(1) If tobacco products are produced without a license for a tobacco monopoly production enterprise, the tobacco monopoly administrative department shall order it to close down, confiscate the illegal income, impose a fine of not less than 1 but not more than 2 times the value of the tobacco products produced, and publicly destroy the tobacco products illegally produced;

(2) If cigarette paper, filter rods, cigarette tow or tobacco special machinery are produced without a license for a tobacco monopoly production enterprise, the competent tobacco monopoly administrative department shall order it to stop production, confiscate the illegal income, and impose a fine of more than 1 times the value of the illegally produced tobacco monopoly goods. A fine of more than 2 times the value of the illegally produced tobacco monopoly goods, and publicly destroy the illegally produced tobacco monopoly goods.

Article 54 In accordance with the provisions of Article 33 of the Tobacco Monopoly Law, if a tobacco monopoly wholesale enterprise operates the wholesale business of tobacco products without a license for a tobacco monopoly wholesale enterprise, the tobacco monopoly administrative department shall order it to close or stop the wholesale business of tobacco products, and confiscate the illegal income., impose a fine of not less than 50% but not more than 1 time the value of the illegally wholesale tobacco products.

Article 55 If a unit that has obtained a license for a tobacco monopoly wholesale enterprise violates the provisions of paragraph 1 of Article 23 of these Regulations by exceeding its business scope and geographical scope and engaging in the wholesale business of tobacco products, the tobacco monopoly administrative department shall order it to suspend the wholesale business, confiscate the illegal income, and impose a fine of 10% to 20% of the value of the illegally operated tobacco products.

Article 56 If an enterprise or individual that has obtained a tobacco monopoly retail license violates the provisions of paragraph 2 of Article 23 of these Regulations and fails to purchase goods from a local tobacco monopoly wholesale enterprise, the tobacco monopoly administrative department shall confiscate the illegal income and may impose a fine of not less than 5% but not more than 10% of the total purchase amount.

Article 57 Anyone who conducts retail business of tobacco products without a tobacco monopoly retail license shall be ordered by the administrative department for industry and commerce or the administrative department for industry and commerce in accordance with the opinions of the tobacco monopoly administrative department, order it to stop the retail business of tobacco products, confiscate the illegal income, and impose a fine of 20% but not more than 50% of the total illegal business amount.

Article 58 Anyone who sells illegally produced tobacco monopoly commodities in violation of the provisions of Article 25 and paragraph 1 of Article 38 of these Regulations shall be ordered by the tobacco monopoly administrative department to stop the sales, confiscate the illegal income, and impose a fine of 20% to 50% of the total amount of illegal sales, and publicly destroy the illegally sold tobacco monopoly commodities.

Article 59 Anyone who violates the provisions of these Regulations and engages in tobacco product wholesale business across provinces, autonomous regions, or municipalities directly under the Central Government without obtaining a tobacco monopoly wholesale enterprise license issued by the tobacco monopoly administrative department of the State Council shall be fined by the tobacco monopoly administrative department of the State Council. A fine of not less than 10% but not more than 20% of the total wholesale amount.

Article 60 Anyone who violates the provisions of Article 26 and paragraph 2 of Article 36 of these Regulations and provides tobacco monopoly products to a unit or individual without a tobacco monopoly license shall confiscate the illegal income and impose a fine of 20% but not more than 50% of the total sales.

Article 61 In violation of the provisions of paragraph 1 of Article 36 of these Regulations, tobacco monopoly wholesale enterprises and tobacco product production enterprises purchase cigarette paper, filter rods, cigarette tow, and tobacco special machinery from enterprises without a license for tobacco monopoly production enterprises, the competent tobacco monopoly administrative department shall impose a fine of not less than 50% but not more than 1 time the value of the purchased tobacco monopoly products.

Article 62 Anyone who violates the provisions of Article 41 of these Regulations and fails to store duty-free imported tobacco products in a bonded warehouse of tobacco products as required may be fined not more than 50% of the value of the tobacco products.

Article 63 Anyone who violates the provisions of Article 42 of these Regulations and operates duty-free cigarettes and cigars in the customs supervision area without the special signs specified by the tobacco monopoly administrative department of the State Council on the small packets or packets may be fined less than 50% of the total illegal business amount.

Article 64 If an auction enterprise violates the provisions of Article 48 of these Regulations and auctions tobacco monopoly products without authorization without verifying the qualifications of bidders or accepting the supervision of the tobacco monopoly administrative department, the tobacco monopoly administrative department shall impose a fine of 20% but not more than 50% of the value of the auctioned tobacco monopoly products, and cancel its qualification to auction tobacco monopoly products in accordance with the law.

Chapter 11 Attached Provisions

Article 65 New tobacco products such as e-cigarettes shall be implemented in accordance with the relevant provisions of these Regulations on cigarettes.

Article 66 These Regulations shall come into effect as of the date of promulgation.# p#pagination title #e#