National Tobacco Monopoly Bureau Strengthens E-Cigarette Regulation

On May 22, the State Tobacco Monopoly Administration held a press conference to introduce the progress and effectiveness of comprehensive law-based supervision of electronic cigarettes. Central news media such as People's Daily, China Central Television, People's Political Consultative Daily, and Legal Daily, as well as industry news media such as China Tobacco magazine and East Tobacco News attended the meeting.

During a press conference, the National Bureau's spokesperson and officials from related departments provided information and answered on-site questions from journalists concerning topics of interest to the media.

According to a spokesperson for the National Tobacco Monopoly Bureau, since the implementation of the "Decision of the State Council on Amending the Regulations for the Implementation of the Tobacco Monopoly Law of the People's Republic of China" on November 10, 2021, the Bureau has been resolutely implementing the decisions of the Party Central Committee and the State Council, adhering to the goal of strengthening e-cigarette supervision in accordance with the law, regulating the e-cigarette market order, safeguarding the health and safety of the people, and promoting the legalization, standardization, and governance of the e-cigarette industry. The Bureau has been focusing on strengthening the foundation of the regulatory system, carrying out market access licensing, maintaining the stable operation of the industry, guiding enterprises to operate legally, and strengthening market supervision and management. As a result, the e-cigarette market has undergone a fundamental transformation from a lack of regulation to rule of law, from disorder to order, and from wild growth to strict management. The governance of the e-cigarette industry has entered a comprehensive track of legalization and standardization.

As an example of the crackdown on illegal and irregular behavior related to electronic cigarettes, as of now, a total of 1,848 cases of administrative punishments for various types of electronic cigarette-related offenses have been investigated and prosecuted nationwide. Additionally, 398 criminal cases related to electronic cigarettes have been investigated by the joint efforts of relevant departments and public security bureaus. During these investigations, 2.94 million pods, 730,000 electronic cigarette devices, 3.57 million disposable electronic cigarettes, 9.8 tons of nicotine and aerosols, and over 10 tons of parts have been confiscated. 25 illegal production sites and 36 warehouses have been shut down, and the amount involved in these cases is approximately 2.1 billion yuan ($318 million), and 1,323 individuals have been caught.

For a long time, the State Administration for Market Regulation has highly valued the protection of minors and taken active measures to ensure the physical and mental health of minors. According to a press conference, the Administration will cut off online sales channels, carry out special operations to crack down on illegal sales offline, and conduct public education to gather widespread social consensus. The Administration will continue to clean up e-cigarette sales around schools, strengthen the cleaning of illegal information related to e-cigarettes online, supervise internet companies to implement self-cleaning mechanisms, and severely crack down on illegal sales of e-cigarettes to minors. At the same time, the Administration will strengthen public education and awareness-raising among minors to resist false advertising and unhealthy temptations, in order to create a good social environment that protects the healthy development of young people.

According to an official from the relevant department of the National Bureau, in recent years, the bureau has actively constructed a comprehensive regulatory system for the electronic cigarette market, focusing on "online clearance, offline control, full chain coverage, and joint governance." Through measures such as strengthening the disposal of online information related to electronic cigarettes, improving market supervision, focusing on full chain regulation coverage, and actively promoting joint governance, the bureau has made positive progress in enforcing regulations and law enforcement.

According to officials from relevant departments of the National Bureau, from March 1st to April 25th, 2023, tobacco monopoly bureaus at all levels conducted a comprehensive and specialized inspection of the electronic cigarette market, covering production companies, wholesale companies, retail entities, and others. A total of 48,265 businesses and retailers were inspected. The inspection comprehensively reviewed and confirmed the operating status and compliance of electronic cigarette business entities under the jurisdiction of the tobacco monopoly bureaus. This was the largest, most widespread and heavily resourced electronic cigarette enforcement inspection since its regulation. The inspection adhered to uniform standards, comprehensive scheduling, collaborative linkage and comprehensive application of results, and achieved full coverage inspection of the entire "production-wholesale-retail" electronic cigarette industry chain. The inspection found that most production companies that obtained tobacco monopoly licenses operated in compliance with regulations, but some violated regulatory policies. A minority of companies were suspected of wrongdoing. The majority of retailers operated legally and in compliance with regulations, but a few sold electronic cigarettes to minors, obtained products from illegal channels, and sold flavored electronic cigarettes in "milk tea cups".

The outward focus of China's electronic cigarette industry is vividly apparent by the fact that the vast majority of domestically produced e-cigarettes are sold overseas. As the e-cigarette industry becomes more regulated and orderly, with the implementation of regulatory policies and measures, certified e-cigarette manufacturers actively seeking overseas markets, and stable international demand, the export trade of e-cigarettes continues to improve, showcasing a trend of both quantity and quality. Going forward, the State Administration for Market Regulation will work to enforce the "Electronic Cigarette Management Regulations" and related policies, and oversee that certified companies fully comply with import and export trade regulations.

Officials responsible for the relevant departments of the National Bureau have outlined plans for strengthening oversight of the logistics and delivery of e-cigarettes. They will work in partnership with other departments to eliminate safety hazards associated with e-cigarettes by conducting inspections of delivery channels, punishing delivery companies that violate regulations, and cracking down on illegal e-cigarette-related activities. The ultimate goal is to establish a secure e-cigarette delivery network, ensure that delivery companies strictly adhere to limited delivery regulations, prosecute any individuals or companies engaged in illegal e-cigarette delivery activities, and cut off the illicit e-cigarette distribution channel.

A spokesperson for the National Bureau stated that they will adhere to Xi Jinping's new era of socialism with Chinese characteristics as their guide, firmly implement the decisions and arrangements of the Party Central Committee and the State Council, with the goal of safeguarding the health and safety of the people as their starting point. They will further improve regulatory policies, standardize industry operations, optimize management services, strengthen market supervision, prevent risks and hidden dangers, and continue to promote the legalization and standardization of the e-cigarette industry's governance.

Officials from the State Administration for Market Regulation, the Electronic Cigarette Management Office, and other relevant departments attended a press conference.