Russia Enacts Law to Track the Tobacco and NGP Market

On June 13th, according to a report from TASS, Russian President Putin signed a bill that will comprehensively regulate the tobacco market and national supervision of the production and distribution of tobacco products (including imported ones), nicotine-containing products, and raw materials. The law also establishes a dedicated supervisory agency.

Implementing a license system in each process.

The proposed legislation demands the implementation of a permit system for the production and distribution of tobacco products and raw materials. It also sets requirements for production equipment, including government registration and upkeep when not in use. Additionally, the bill stipulates the tracking tobacco products and its raw materials, including the use of "honest labeling" identifying markers.

The bill has introduced a specialized national oversight agency to crack down on the illegal production and trade of tobacco products and raw materials. It establishes the basis for seizing and destroying illegal products and equipment; and includes national price controls on tobacco and nicotine-containing products.

To prevent the illicit production of tobacco products, nicotine-containing goods, and related materials, the proposed legislation suggests implementing requirements for necessary technical equipment and mandatory government registration. In order to monitor the production and circulation of tobacco products, the bill proposes utilizing the national goods circulation monitoring information system for necessary surveillance.

According to the bill, tobacco products, tobacco materials, nicotine-containing products, packaging, and labels that are illegally circulated or seized will be removed from the confiscation site and destroyed according to court judgments. Equipment will also be disposed of after being decided by the court.

The legislation grants the Russian alcohol and tobacco regulatory agency the responsibility of supervising the production and distribution of tobacco products, tobacco goods, nicotine-containing products, and their raw materials.

According to the law, all tobacco and nicotine-containing products must be notified before they can be produced and circulated. There are no other exceptions.

Except for the following circumstances:

Cross-border transportation within the Eurasian Economic Union is being conducted to test and examine samples, with the aim of evaluating their compliance with Russian law and international standards. Products confiscated from illegal circulation are also undergoing this evaluation. However, digital identification may not be applicable in situations involving information related to state secrets in transactions involving diplomats, consular officials, international organizations, and related products. Individuals can carry tobacco and nicotine-containing products without identification markers, but the quantity is limited to no more than 200 cigarettes, 200 pods of heated tobacco, 50 cigars, and 250 grams of tobacco per person.

Starting from September 1, 2023, individuals applying for licenses must meet specified conditions, including registering their primary technical equipment. Effective March 1, 2024, regulations concerning national supervision, confiscation of illegal products and equipment, and the production and circulation records of products and raw materials will be implemented.

Reference List:

Putin signs law on comprehensive regulation of tobacco market.