State Tobacco Monopoly Administration: Preventing and Resolving the Risk of Excess Capacity in Electronic Cigarettes

The State Tobacco Monopoly Bureau publicly solicits opinions on the "Notice of the State Tobacco Monopoly Bureau on Implementing the Policy of the Electronic Cigarette Industry and Further Promoting Supply and Demand Dynamic Balance". The "Draft for Soliciting Opinions" proposes to prevent and resolve the risk of overcapacity in the electronic cigarette industry. Adhering to the principles of rule of law and marketization, a mechanism for exiting production capacity will be unblocked. Strict implementation of relevant laws and regulations, industry policies for the electronic cigarette industry, and mandatory standards. Enterprises that do not comply with industry policies, have product quality, hygiene conditions, safety production, fire protection, environmental protection, and energy consumption that do not meet national standards and produce and sell unqualified products will be eliminated according to law and regulations. For enterprises with long-term low capacity utilization rates or those with illegal acts or dishonest behaviors, they will be placed under key supervision, gradually eliminating backward production lines and reducing corresponding production capacity. Improve the electronic cigarette standard system covering technical standards, material limits, production processes, inspection and testing, quality and safety, and hygiene conditions, strengthen accreditation and certification and inspection and testing capabilities, continuously revise technical standards, licensing conditions, etc., and continuously optimize production capacity structure. The production lines and approved production capacity of heated tobacco products should be strictly distinguished from electronic cigarettes, and must not be mixed or the production capacity calculated repeatedly.