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November 01, 2022

The electronic cigarette industry is facing "shock"

Fruit-flavored cigarette bombs have become history, the market has ushered in a unified trading platform, and the production and operation units must "work with certificates". Since this year, the Electronic Cigarette industry has successively ushered in strong regulatory policies. On November 1, the Compulsory National Standard for Electronic Cigarette (hereinafter referred to as the "National Standard for Electronic Cigarette") has been implemented for one month. From today, electronic cigarettes have also been included in the scope of consumption tax collection

Once, E-Cigarette has been wandering in the gray area for a long time, lacking national standards. In the past two years, the control measures for e-cigarette industry have become more strict, and the intensity of policy issuance has even exceeded the past 10 years. Especially since this year, the "strongest supervision" boots of electronic cigarettes have been launched.



On April 12, the State Administration of Market Supervision and Administration and the National Standardization Administration approved the mandatory national standard of "e-cigarettes". On October 26, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation issued an announcement to clarify matters related to the collection of consumption tax on e-cigarettes. All units and individuals that produce (import) and wholesale e-cigarettes within the territory of the People's Republic of China pay consumption tax, and the production (import) link tax rate is 36%, The wholesale tax rate is 11%, and the new regulations will be implemented from November 1.



In November last year, the State Council clarified that electronic cigarettes belong to "new tobacco products", which shall be managed with reference to the provisions of China's Regulations on the Implementation of the Tobacco Monopoly Law on cigarettes. According to the relevant regulations of the State, in order to control the impact of electronic cigarette emissions on public health, protect public health, eliminate and reduce the harm of electronic cigarettes, Shanghai also decided to include electronic cigarettes in the scope of smoking prohibition in public places on October 28 this year.



Ms. Liu, who has been engaged in the e-cigarette business for more than five years, feels that the regulation is becoming stricter. She believes that for regular businesses, she would prefer the industry to become more formal. Now, the WeChat business no longer exists, express delivery is regulated, and there is also a threshold for ordering. There are not many stores that can handle certificates, and the voice of doubt in the e-cigarette industry is also smaller. "Although the business is not as good as before, there is still an adaptation cycle for the 'new national standard', and we need to wait and see".



The price of e-cigarettes has not been fully increased



Some businesses are waiting and some have already quit



On November 1, the reporter visited the Chengdu e-cigarette market and found that after the implementation of the "new national standard", the previous e-cigarette store logo of a certain brand has been basically changed into an e-cigarette collection store, but most of the stores still only sell products of the original brand.




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