State Tobacco Monopoly Administration: The State Council's tobacco monopoly administrative department establishes a nationwide unified electronic cigarette trading management platform.

On September 2, the State Tobacco Monopoly Bureau issued a notice regarding the revision and issuance of the Regulations on the Management of Electronic Cigarette Transactions. The regulations state that the administrative department of tobacco monopoly of the State Council will establish a national unified electronic cigarette trading management platform. Companies that have obtained tobacco monopoly licenses for the sale of nicotine raw materials for electronic cigarettes, companies producing nicotine for electronic cigarettes, aerosol production companies, electronic cigarette production companies (including product production, contract manufacturing, brand holding companies, etc., hereinafter referred to as the same), electronic cigarette wholesale companies (including electronic cigarette import and export companies), retail entities and other electronic cigarette market entities should conduct transactions through the platform. Import and export of electronic cigarette products, aerosols, and nicotine for electronic cigarettes should be filed through the platform according to relevant regulations. The original text is as follows: Notice on the Revision and Issuance of Regulations on the Management of Electronic Cigarette Transactions by the State Tobacco Monopoly Bureau State Tobacco Law [2024] No. 131 Provincial-level Tobacco Monopoly Bureaus: In order to thoroughly implement the "Regulations on Electronic Cigarette Management" (Announcement No. 1 of 2022 of the State Tobacco Monopoly Bureau), further strengthen the management of electronic cigarette transactions, regulate the production and circulation order of electronic cigarettes, and safeguard the legitimate rights and interests of electronic cigarette market entities, the revised "Regulations on the Management of Electronic Cigarette Transactions" are now being issued to you for implementation. State Tobacco Monopoly Bureau August 27, 2024 (Proactively disclosed) Regulations on the Management of Electronic Cigarette Transactions Chapter I General Provisions Article 1 In order to strengthen the management of electronic cigarette transactions, regulate the production and circulation order of electronic cigarettes, and safeguard the legitimate rights and interests of electronic cigarette market entities, in accordance with the laws, regulations, and normative documents such as the Civil Code of the People's Republic of China, the Electronic Commerce Law of the People's Republic of China, 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 Regulations on the Management of Electronic Cigarettes (Announcement No. 1 of 2022 of the State Tobacco Monopoly Bureau), these regulations are formulated. Article 2 These regulations apply to transactions involving electronic cigarette products and electronic cigarette raw materials conducted within the territory of the People's Republic of China (hereinafter referred to as electronic cigarette transactions). Article 3 The State Council's administrative department responsible for tobacco monopoly is responsible for supervising and managing national electronic cigarette trading activities. Provincial, municipal, and county-level tobacco monopoly administrative departments are responsible for supervising and managing the electronic cigarette trading activities of electronic cigarette market entities within their respective administrative regions. Article 4 Electronic cigarette transactions follow the principles of equality, fairness, honesty, and standardization. Promote the full-process management of the flow of goods, capital, information, and trade data as important basis for market regulation, status evaluation, and effective oversight. Chapter II Types of Transactions Article 5 The State Council's administrative department responsible for tobacco monopoly will establish a national unified electronic cigarette trading management platform (hereinafter referred to as the platform). Companies that have obtained tobacco monopoly licenses for the sale of nicotine raw materials for electronic cigarettes, companies producing nicotine for electronic cigarettes, aerosol production companies, electronic cigarette production companies (including product production, contract manufacturing, brand holding companies, etc., as the same), electronic cigarette wholesale companies (including electronic cigarette import and export companies), and various other electronic cigarette market entities are required to conduct transactions through the platform. Import and export of electronic cigarette products, aerosols, and nicotine for electronic cigarettes must be filed through the platform according to relevant regulations. Article 6 Electronic cigarette transactions include: (1) Trade of nicotine raw materials for electronic cigarettes between companies producing nicotine for electronic cigarettes and companies selling nicotine raw materials for electronic cigarettes; (2) Trade of nicotine for electronic cigarettes between aerosol production companies and companies producing nicotine for electronic cigarettes; (3) Trade of aerosols between electronic cigarette production companies and aerosol production companies; (4) Trade of electronic cigarette products between electronic cigarette production companies, electronic cigarette brand holding companies, and electronic cigarette product production companies or contract manufacturing companies; (5) Domestic trade of electronic cigarette products between electronic cigarette wholesale companies and electronic cigarette product production companies or electronic cigarette brand holding companies; (6) Trade of imported nicotine for electronic cigarettes between aerosol production companies and electronic cigarette import companies, and trade of imported aerosols between electronic cigarette production companies and electronic cigarette import companies; (7) Trade of electronic cigarette products between electronic cigarette retail entities and electronic cigarette wholesale companies (including electronic cigarette import companies); (8) Other trades confirmed by the State Council's administrative department responsible for tobacco monopoly in accordance with the "Regulations on the Management of Electronic Cigarettes". Chapter III Product Management Article 7 Electronic cigarette products that have undergone technical assessment must be listed for sale on the platform and subject to dynamic management. The information of electronically listed electronic cigarette products must be consistent with the information of products that have undergone technical assessment. Article 8 The basic information of electronic cigarette products must be maintained on the platform by electronic cigarette product production companies, electronic cigarette brand holding companies, and electronic cigarette import companies. The basic information of aerosols and nicotine for electronic cigarettes must be maintained on the platform by aerosol production companies, companies producing nicotine for electronic cigarettes, and electronic cigarette import companies. The basic information of nicotine raw materials for electronic cigarettes transacted through the platform must be maintained on the platform by companies selling nicotine raw materials for electronic cigarettes. Article 9 Adhere to the principle of market-determined prices and establish and improve the price formation mechanism of electronic cigarette products mainly regulated by the market. The ex-factory price and suggested retail price of domestically produced electronic cigarette products shall be determined independently by electronic cigarette product production companies and electronic cigarette brand holding companies, and the wholesale price shall be reasonably determined by electronic cigarette wholesale companies based on production and management costs, national tax policies, etc., on the basis of the ex-factory price. The import price and suggested retail price of imported electronic cigarette products shall be determined through negotiations between electronic cigarette import companies and foreign parties, and the wholesale price shall be reasonably determined by electronic cigarette import companies based on production and management costs, national tax policies, etc., on the basis of the import price. The same specification of electronic cigarette products shall have a uniform national selling price, which shall be publicly available on the platform. The operating profits of various links in the industrial chain should be within a reasonable range, and the overall price level of electronic cigarette products should remain stable. Article 10 The prices of aerosols and nicotine for electronic cigarettes shall be market-regulated. Article 11 The State Council's administrative department responsible for tobacco monopoly shall formulate price policies and standards for nicotine for electronic cigarettes and maintain price ranges on the platform in accordance with the price standards. Production companies.Yehao and electronic cigarette nicotine raw material sales companies negotiate and determine specific transaction prices within the price range and form a price record.Article 12: Electronic cigarette product manufacturing enterprises, electronic cigarette brand holding enterprises, and electronic cigarette wholesale enterprises (including electronic cigarette import trading enterprises) need to adjust the prices of electronic cigarette products, they should publicize the price adjustment information on the platform at least three months in advance. Article 13: If electronic cigarette products fail quality supervision spot checks or if there are issues during inspections, they should be handled according to relevant regulations and requirements. Chapter 4: Contract and Order Management Article 14: Electronic cigarette trading parties should sign a trading contract on the platform. The contract should include the names of the parties, member names, member codes, license numbers, addresses, contact information, names, quantities, quality, prices, packaging methods, inspection standards and methods of the goods, contract signing time, performance period, place and method, payment method, transportation method, contract effectiveness, breach of contract liability, dispute resolution methods, and integrity agreements. The terms and contents of the contract for nicotine raw materials used in electronic cigarettes should also comply with the relevant provisions of tobacco monopoly management. Electronic cigarette retail entities and electronic cigarette wholesale enterprises (including electronic cigarette import trading enterprises) confirm electronic cigarette product transactions in the form of orders. Once the electronic cigarette retail entity selects the product and places a successful order, the contract is established. Article 15: All payment settlements for various transactions should be done on the platform. Electronic cigarette retail entities should settle payments in real-time after placing an order, and other buyers should pay the amount within the payment deadline as specified in the contract. Article 16: All transaction entities should conduct warehouse, sorting, transportation, and other logistics activities according to the electronic cigarette logistics management requirements and contract agreements, delivering electronic cigarette products or raw materials to the agreed logistics warehouse or location within the specified timeframe, while also carrying out data and information collection and uploading tasks. Article 17: If there are quality issues with electronic cigarette products, aerosols, or nicotine used in electronic cigarettes after they have been sold, buyers can apply for returns through the platform in accordance with relevant laws and regulations. Article 18: The annual cumulative purchase volume of nicotine raw materials for electronic cigarettes by nicotine production enterprises should not exceed the total annual purchase plan quantity issued by the State Tobacco Monopoly Administration to electronic cigarette nicotine production enterprises. The annual cumulative platform transaction volume of nicotine production enterprises, aerosol production enterprises, and electronic cigarette production enterprises should comply with the total volume management requirements of the State Tobacco Monopoly Administration. The annual import volume of nicotine and aerosols for electronic cigarettes by aerosol production enterprises and electronic cigarette production enterprises should not exceed the annual import demand volume for nicotine and aerosols for electronic cigarettes determined by the State Tobacco Monopoly Administration for enterprises. The annual sales volume of electronic cigarette products by electronic cigarette wholesale enterprises (including electronic cigarette import trading enterprises) should not exceed the annual domestic sales volume target and import sales target for wholesale enterprises determined by the State Tobacco Monopoly Administration based on market demand. Article 19: Marketing activities conducted by electronic cigarette production enterprises should be filed with relevant activity information on the trading platform and must not violate relevant national laws and regulations. Chapter 5: Member Management Article 20: The platform implements a membership management system. Enterprises that have obtained a tobacco monopoly license for nicotine sales, nicotine production, aerosol production, electronic cigarette production, electronic cigarette wholesale enterprises (including electronic cigarette import trading enterprises), and electronic cigarette retail entities that need to conduct electronic cigarette transactions or import/export transactions must register as trading members on the platform to engage in trade or filing activities. Article 21: Members should truthfully maintain related member information on the platform in accordance with electronic cigarette administrative licenses and supervision requirements of the State Tobacco Monopoly Administration. Article 22: Members' trading and filing activities on the platform should be carried out by designated member representatives who log in with their member trading accounts. Members should strictly manage their designated member representatives and are responsible for their actions on the platform. Article 23: Members have the right to equal, autonomous, and fair trading on the platform. Members' trading and filing activities on the platform should comply with relevant national laws and regulations and the State Tobacco Monopoly Administration's regulations, operate with integrity, pay taxes in accordance with the law, ensure that the information posted on the platform is true and accurate, and assume corresponding legal responsibilities. Article 24: The platform may suspend the trading qualifications of members who violate relevant regulations. If a member's tobacco monopoly license is revoked, withdrawn, canceled, or their business qualifications for producing or managing electronic cigarette products, aerosols, nicotine, or nicotine raw materials are legally revoked, the corresponding membership will automatically be canceled. Article 25: The State Tobacco Monopoly Administration will build an electronic cigarette market entity credit information management system on the platform to strengthen the management of electronic cigarette market entity credit. Chapter 6: Supplementary Provisions Article 26: The term "electronic cigarette raw materials" in these detailed rules include aerosols, nicotine for electronic cigarettes, and nicotine raw materials for electronic cigarettes. Nicotine raw materials for electronic cigarettes refer to tobacco leaves, tobacco shreds (including fibers, granules, etc.), and tobacco stems that cannot be used in cigarette production but can be used to produce nicotine for electronic cigarettes. Waste tobacco products, crude nicotine extractions, and other products not specified in these rules cannot be used as nicotine raw materials for electronic cigarettes. The planning, purchasing, trading, and logistics transportation of nicotine raw materials for electronic cigarettes are subject to relevant regulations governing tobacco monopoly products. Article 27: Nicotine raw material sales enterprises include cigarette industry enterprises, commercial enterprises, and tobacco leaf re-manufacturing enterprises with independent legal personality. Their tobacco monopoly license scope should include sales of tobacco leaves, tobacco shreds, tobacco stems, etc., that can be used to produce nicotine for electronic cigarettes, or sales of tobacco leaves, etc. Article 28: Electronic cigarette import trading enterprises refer to enterprises that have obtained a tobacco monopoly wholesale enterprise license and are permitted to engage in the import and wholesale business of nicotine, aerosols, and electronic cigarette products. Article 29: These detailed rules are interpreted by the State Tobacco Monopoly Administration. Article 30: These detailed rules shall be implemented as of the date of issuance. The "Notice of the State Tobacco Monopoly Administration on Printing and Issuing the Electronic Cigarette Logistics Management Regulations and Electronic Cigarette Trading Management Regulations (Trial)" issued on June 2, 2022 (State Tobacco Office [2022] No. 77) applies.The "Provisions on the Administration of Electronic Cigarette Trading (Trial)" shall be simultaneously repealed.This article was compiled from the official website of the "State Tobacco Monopoly Bureau," edited by GMTEight: Liu Jiayin.