Russia's proposed tobacco product regulation and licensing requirements

On April 12th, the "Proposal on State Regulation of the Production and Circulation of Tobacco Products, Tobacco Industry Products, Nicotine-Containing Products and Their Raw Materials" (No. 310882-8, hereinafter referred to as "the Proposal") was passed in the first reading by the State Duma of Russia.

The following are the original text and Chinese translation of the relevant proposal by 2FIRSTS.

Classification of Mandatory Licensing Types

The first section of Article 8 of the proposal stipulates mandatory licensing requirements for the production and sale of tobacco products, nicotine-containing products, and raw materials used to produce such products.

What kinds of tobacco products are specifically covered by the license? Which stages require specific licenses? Is a license required for the import and export of products? Liang Jiasen, a market researcher for 2FIRSTS in Russia, provided a professional interpretation of the proposal.

According to the first part of Article 8 in general terms, activities related to the production and sale of tobacco products, nicotine-containing products, and materials utilized in the production of these products require a license.

The production, storage, and supply of tobacco products, raw materials, nicotine-containing products, and raw materials for the production, storage, and supply of tobacco products and nicotine-containing products are involved in their import and export within the Russian Federation. The circulation of raw materials and nicotine-containing raw materials is also included in their import and export within the Russian Federation. Additionally, the purchase of tobacco products and nicotine-containing products for use as duty-free trade under customs procedures, as well as the production, storage, and supply of cigars and related activities are included.

Experts Interpret

According to Liang Jiasen, a market researcher at 2FIRSTS, the first item on the license refers to a "raw material production license" for the production, storage, and supply of tobacco products, raw materials, nicotine-containing products, and nicotine raw materials. Such a license is required at every stage of the raw material production process.

Regarding the second provision on "production, storage and supply of tobacco products and products containing nicotine," this license is known as a "product manufacturing license," which is required for all stages of production for such products.

In relation to the third point regarding the circulation of tobacco and nicotine-containing products entering and exiting the Russian Federation, the license referred to is the "Product Import License". This license is necessary for the importation of such products into Russia and must be presented at all relevant stages of the process.

In relation to the fourth item on the import and export of raw materials and nicotine raw materials into and out of the Russian Federation, the license required is the "Raw Material Import License", which is necessary for the importation of such products into Russia. This license is required for all relevant import processes in Russia.

Regarding the fifth provision which pertains to the production, storage, and supply of cigars, it is identified as the "Cigar Production License" of the Russian Federation.

Regarding the sixth provision, which pertains to the purchase of tobacco and nicotine-containing products for sale as duty-free goods under customs procedures, this clause is part of the Russian Federation's "License for the Circulation of Duty-Free Tobacco and Nicotine products.

Scheduled to take effect on September 1st, 2023.

If the proposal is ultimately passed through the Russian legislative process, it will come into effect on September 1, 2023, with the mandatory licensing provisions outlined in Section 8, Part 1 of the proposal to be implemented on the same date. Holding a license will become a requirement from March 1, 2024. If tobacco manufacturers are found to not have a license, to have their license suspended or revoked, their production equipment will be ordered to be sealed.

2FIRSTS will continue to interpret and provide further details on laws and related content.

Topic: Progress and Expert Analysis on Russia's Ban on Flavored E-cigarettes (Click the Image Below to Jump)

Expert Analysis Series:

Expert analysis 1: The ban on flavored e-cigarettes in Russia includes all products, and the specific standards for additives have yet to be disclosed.

Expert analysis 2: Russia sets minimum retail price for e-cigarettes to reduce demand for nicotine products.

Further Reading:

Manufacturers of nicotine products in Russia now need to apply for a license following the approval of a draft law during its first reading.

Timeline and Background of Russia's Taste Ban Law Passed in Three Readings in One Day

On September 1st, a ban on flavor additives in e-cigarettes in Russia will take effect. The proposal text is available in reference 3. On April 11th, a proposal to ban flavored e-cigarettes in Russia will undergo its first discussion.

Russia proposes to impose a maximum fine of 500,000 rubles on those who sell electronic cigarettes to minors.

What is the progress in the ban on flavored products in the Russian legislative process?