Regulations on Management of Confiscated Tobacco Products

On September 27th, the official website of the State Tobacco Monopoly Administration released the "Management Measures for Confiscated Tobacco Products".

In an effort to enhance the management of confiscated tobacco products, improve the effectiveness of tobacco monopoly regulation, protect the legal rights and interests of the parties involved, and prevent financial losses to the state, the State Tobacco Monopoly Administration and the Ministry of Finance recently jointly issued the "Management Measures for Confiscated Tobacco Products", which will take effect from December 1, 2023.

According to the "Tobacco Monopoly Law of the People's Republic of China," the "Implementing Regulations of the Tobacco Monopoly Law of the People's Republic of China," and the "Management Measures for Confiscated Property" (Taxation [2020] No. 54) and other laws and regulations, the State Tobacco Monopoly Administration and the Ministry of Finance have formulated the "Management Measures for Confiscated Tobacco Products." This requires that the tobacco monopoly bureaus and finance departments (bureaus) of each province, autonomous region, municipality directly under the Central Government, Dalian and Shenzhen tobacco monopoly bureaus, finance departments of each plan-listed city, the finance department of the Xinjiang Production and Construction Corps, and the local supervision bureaus of the Ministry of Finance comply with and implement these measures.

Chapter six deals with the disposal of other confiscated tobacco products, including e-cigarettes. The following are the details provided:

Chapter 6: Disposal of Confiscated Tobacco Products Including E-cigarettes In this chapter, we will explore the proper methods of handling confiscated tobacco products, such as e-cigarettes and other related items.

Article 16 states that tobacco monopoly bureaus at all levels should combine the investigation and evidence collection of authenticity identification, quality inspection, interview records, etc., as well as the national e-cigarette sales directory, to determine the types and channels of e-cigarette products subject to confiscation. Disposal should be carried out in accordance with the aforementioned regulations on confiscated tobacco products. Genuine e-cigarettes listed in the national e-cigarette sales directory should generally be disposed of through resale. Other confiscated e-cigarettes, aerosols, e-cigarette tobacco nicotine, and other products may be directly destroyed with the approval of the superior tobacco monopoly bureau, while preserving textual and visual materials for future reference.

If the following circumstances are found in confiscated tobacco products, the relevant tobacco monopoly bureau, with approval from the superior tobacco monopoly bureau, may directly dispose of and destroy the items, while retaining textual and visual documentation for future reference.

Illegally-produced and sold tobacco products such as herbal cigarettes, floral cigarettes, and mugwort cigarettes.

Secondly, there is the illegal production and sale of tobacco products, such as snuff, flavored tobacco pouches, and dry or wet snuff.

(3) Equipment and materials such as tobacco trademark logos, packing paper, and filter-tipping machines used specifically for the production of illegal tobacco products or new types of tobacco products such as e-cigarettes.

Fake and substandard tobacco seeds.

Article 18 stipulates that tobacco monopoly bureaus at all levels should collaborate with the finance departments to study and address the issue of disposing new types of confiscated tobacco products. They are required to clarify the standardized disposal methods for various confiscated tobacco products, assist judicial institutions, disciplinary inspection and supervision agencies, and other law enforcement bodies in properly disposing of these products. The aim is to improve law enforcement efficiency and enhance interdepartmental comprehensive supervision effectiveness.