China Tobacco issued guidance on the issuance of tobacco monopoly production enterprise licenses to e-cigarette related production enterprises. According to the reform requirements of the national “release, management and service”, we can adjust the scope of license, optimize the approval process and improve work efficiency without adding new license items. When applying for a production enterprise license, an electronic cigarette related production enterprise shall meet the following conditions: having funds suitable for production; Technical and equipment conditions required for production; Meet the requirements of national e-cigarette industry policies; Other conditions prescribed by the Department of tobacco monopoly administration under the State Council.
Guidance on the issuance of tobacco monopoly production enterprise licenses by e-cigarette related production enterprises
In order to carry out and steadily and orderly the issuance of tobacco monopoly production enterprise licenses (hereinafter referred to as production enterprise licenses) to e-cigarette related production enterprises in accordance with laws and regulations, and protect the legitimate rights and interests of administrative counterparts in accordance with the law of the people’s Republic of China on tobacco monopoly, the regulations for the implementation of the law of the people’s Republic of China on tobacco monopoly and the measures for the administration of tobacco monopoly licenses (Order No. 37 of the Ministry of industry and information technology) Based on the actual situation, the following opinions are put forward in accordance with the detailed rules for the implementation of the measures for the administration of tobacco monopoly licenses (Guo Yan Fa [2020] No. 205), the measures for the administration of electronic cigarettes (Announcement No. 1 of the state tobacco monopoly administration in 2022) and other laws, regulations, rules and normative documents.
1、 Basic principles
2、 Scope of license
According to the provisions of the measures for the administration of electronic cigarettes, those engaged in the production and operation of electronic cigarette products, aerosols, nicotine for electronic cigarettes and other activities shall obtain a production enterprise license. The scope of the license is divided into three categories: production enterprise license (electronic cigarette products), production enterprise license (aerosols), and production enterprise license (nicotine for electronic cigarettes), specifically including:
- Smoke bomb production (domestic / export); Smoke bomb processing; Cigarette bomb brand holding (domestic / export).
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- Production of electronic cigarette sets (domestic / export); Electronic cigarette set generation processing; Brand holding of electronic cigarette sets (domestic / export).
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- Production of products sold in combination with cigarette bombs and cigarette sets (domestic / export); Processing of products sold in combination with cigarette bombs and cigarette sets; The brand of products sold in combination with cigarette bombs and cigarette sets (domestic / export).
- Atomization production (domestic / export).
- Nicotine production for electronic cigarette (domestic / export).
- According to the provisions of the measures for the administration of electronic cigarettes, enterprises engaged in the production and operation of heating cigarette sets, agent processing and brand holding enterprises shall obtain the license of production enterprises. The specific scope of license is: production of heated cigarettes and cigarette sets (domestic non retail / export); Processing of heating cigarettes and cigarette sets; Brand holding of heating cigarette and cigarette set (domestic non retail / export). “Domestic non retail “ only refers to the sales of products between production enterprises in China, and relevant products shall not be sold in the retail market.
- 3、 License conditions
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- Have funds suitable for production;
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- Have the technical and equipment conditions required for production;
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- Meet the requirements of national e-cigarette industry policies;
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- Other conditions stipulated by the Department of tobacco monopoly administration under the State Council.
- If the above-mentioned production enterprises need to be licensed by other relevant departments, they shall also obtain corresponding licenses.
- If an e-cigarette brand holding enterprise applies for a production enterprise license, it shall not only meet the conditions specified in Items 1, 3 and 4 above, but also submit application materials such as the entrusted operation agreement of e-cigarette.
- The applicant shall be responsible for the legality, authenticity and integrity of the contents of his application materials.
- If a branch of an e-cigarette related production enterprise is directly engaged in the production and operation of e-cigarette products, aerosols, nicotine for e-cigarette, etc., it shall apply for a separate production enterprise license.
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- The production and operation site is not suitable for the production and operation of electronic cigarette products, aerosols, nicotine for electronic cigarettes, etc. based on safety factors;
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- The business license is revoked by the market supervision department or the qualification to engage in the production and operation of e-cigarettes is revoked, and less than three years;
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- The applicant has been punished by the law enforcement organ twice or more within one year or has been investigated for criminal responsibility due to the applicant’s production and sales of fake and shoddy products, infringement of intellectual property rights, illegal production and operation, etc., and the applicant applies for a production enterprise license within three years;
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- The applicant submits another application within one year after the competent department of tobacco monopoly administration makes a decision not to accept or grant permission because the applicant conceals relevant information, provides false materials, or is significantly different from the declared information;
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- The applicant applies again within three years after the production enterprise license obtained by the applicant by deception, bribery and other improper means is revoked;
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- During the period when the applicant is included in the list of enterprises with abnormal business operations or the list of enterprises with serious violations of law and dishonesty;
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- The electronic cigarette products produced, processed or held by the applicant have not obtained a registered trademark in China;
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- Other circumstances under which permission is not granted as stipulated by the Department of tobacco monopoly administration under the State Council.
- 4、 Acceptance and approval
- If a branch of an e-cigarette related production enterprise obtains a production enterprise license separately, its legal person unit shall submit an application to the provincial tobacco monopoly administrative department where the business place of the branch is located, and submit relevant application materials.
- If the license scope, domicile (main business place, business place) and business entity of an e-cigarette related production enterprise holding a production enterprise license change, or under other circumstances specified by the competent department of tobacco monopoly administration under the State Council, it shall re apply for a production enterprise license; Where other registration items are changed, the production enterprise license shall be changed in time.
- If a foreign party promises to reduce the time limit, the time limit shall prevail.
- If the competent department of tobacco monopoly administration under the State Council, after examination, finds that the applicant’s application meets the statutory conditions, it shall make a written decision to grant the license, and shall serve the production enterprise license on the applicant within 10 working days from the date of making the decision. Where a written decision of disapproval is made according to law, the reasons shall be explained to the applicant and the applicant shall be informed that he has the right to apply for administrative reconsideration or bring an administrative lawsuit according to law.
- 5、 Safeguard measures