On March 11, the State Tobacco Monopoly Administration issued the No. 1 Announcement of 2022, and the “Administrative Measures for Electronic Cigarettes” (referred to as “Administrative Measures”) was officially promulgated, and it will come into effect on May 1, 2022.

On the same day, the national standard for “Electronic Cigarettes” (the second draft for comments) was also released at the same time, requiring that the design of the atomizer should not be inductive to minors, and that the characteristic flavor of the product should not present flavors other than tobacco. The “Administrative Measures” also clearly stipulate that the sale of flavored e-cigarettes other than tobacco flavors and e-cigarettes that can be added to their own vapors is prohibited.

Two new regulations have been released one after another, marking that the domestic e-cigarette industry will usher in an era of strong supervision. After the release of the “Administrative Measures”, many domestic e-cigarette companies responded positively, expressing their firm support and implementation of e-cigarette regulatory policies.

At the same time, the Electronic Cigarette Industry Committee of the China Electronic Chamber of Commerce stated that it will resolutely support the requirements of the State Tobacco Monopoly Administration on promoting the legalization and standardization of the governance of the electronic cigarette industry, strictly implement the relevant regulatory policies implemented by the management measures on electronic cigarettes, and always adhere to the “national interests” The core values of the supremacy and the interests of consumers”, actively organize, guide, coordinate and provide practical services to the industry, do a good job in policy interpretation, play the role of bridges of associations, effectively protect minors, and encourage enterprises to develop and innovate , to guide the standardized and orderly development of the domestic market, actively explore the international market, and make new contributions to the development of my country’s new tobacco industry.

Electronic cigarettes are an export industry of 100 billion yuan, and the direction of encouraging exports has not changed

From the perspective of the global market, the electronic cigarette industry has formed an industrial pattern of “made in China, consumed in the world”. More than 90% of the world’s electronic cigarettes are manufactured in Shenzhen. my country is in a leading position in the global competition and has become the world’s largest electronic cigarette producer. ,export country.

According to the “2021 Electronic Cigarette Industry Blue Book” report released by the Electronic Cigarette Industry Committee of the China Electronic Chamber of Commerce, there are more than 1,500 domestic electronic cigarette manufacturers and brand companies, and nearly 100,000 electronic cigarette supply chain and surrounding service companies. In terms of market size, in 2021, the estimated global retail sales of e-cigarettes will reach US$80 billion, a year-on-year increase of 120%. In terms of exports, China’s e-cigarette industry will export about 138.3 billion yuan in 2021, a year-on-year increase of 180%.

At present, many major e-cigarette consumption countries, including the United States, are promoting the process of legal supervision of e-cigarettes. China is also actively regulating e-cigarettes in accordance with the law, which is in line with the global trend. Ao Weinuo, Secretary-General of the Electronic Cigarette Industry Committee of the China Electronic Chamber of Commerce, said that according to the current regulatory measures, for the Chinese electronic cigarette industry, which accounts for more than 90% of the market share, the policy direction of encouraging exports and actively expanding overseas markets will not change. The association will assist e-cigarette companies to actively comply with regulations.

It is worth noting that the “Administrative Measures” removes the “Article 36: Enterprises that produce electronic cigarette products that are not sold in China and only used for export shall register their products in accordance with the provisions of these Measures and obtain tobacco monopoly. Production Enterprise License.” In addition, “Article 35 Electronic cigarette products exclusively for export should be marked with the words “exclusively for export” on the package”, and changed to “Article 32: Electronic cigarette products exclusively for export” The packaging should meet the requirements set by the tobacco monopoly administrative department of the State Council.”

Zheng Zhi, an industry expert and founder of Shenzhen Ziyuan Technology Service Co., Ltd., said in an interview with a reporter from Nandu that the above revisions are all to reduce pressure on e-cigarette companies that only export and encourage exports.

Flavored e-cigarettes other than tobacco flavors are banned, and there is room for flexibility in zero-nicotine vaping

The release of the two new regulations on e-cigarettes and the solicitation of opinions have aroused strong attention in the industry mainly on the restrictions on flavored e-cigarettes, whether it is the national standard for “e-cigarettes” (the second draft for consultation) or the “Administrative Measures”. Both explicitly restrict the production and sale of flavored e-cigarettes other than tobacco flavors. Compared with the supervision of e-cigarettes in the United States, the menthol flavor is retained, and the domestic supervision is stricter.

For e-cigarette companies, flavored e-cigarettes are a key measure for their differentiated competition, and the ban on flavored e-cigarettes directly affects the production and operation of most of their products.

In addition, Zheng Zhi also analyzed that the definitions of e-cigarettes and atomizers in both the “Administrative Measures for Electronic Cigarettes” and the “National Standard” for comments emphasized “nicotine-containing aerosols”, but in the “National Standard” No. The second edition and the effective “Administrative Measures” were revised to “aerosol”, and “nicotine-containing” was removed. Therefore, only from the definition point of view, zero nicotine is also within the jurisdiction of e-cigarettes.

However, in the national standard of “E-Cigarette” (the second draft for comments), it is emphasized that “aerosols should contain nicotine”, which excludes zero nicotine. Zheng Zhi said.

This is an interesting standard statement, the context is not contradictory but there is a gradual narrowing of the scope. Therefore, this should be a micro-balanced state after weighing: that is, it is generally believed that zero-nicotine e-cigarettes are actually e-cigarettes, but at this stage, zero-nicotine e-cigarettes may not be regulated, leaving some room for flexibility. Leave a certain living space for e-cigarette practitioners.

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