Tag: China

  • Keller & Heckman Announces E-Vapor Law Symposium

    Keller & Heckman Announces E-Vapor Law Symposium

    Keller and Heckman will has announced the agenda for its sixth Annual E-Vapor and Tobacco Law Symposium.

    The two-day virtual seminar will focus on legal and regulatory issues critical to the vapor, tobacco and CBD industries in the aftermath of the U.S. Food and Drug Administration’s decisions on millions of premarket tobacco product applications (PMTA).

    Among other topics, the seminar will cover PMTA marketing denial order challenges, new requirements for PMTAs and substantial equivalence reports and the outlook for synthetic nicotine products. The program will also discuss China’s new vapor regulations.

    In addition to Keller and Heckman’s regulatory attorneys and scientists, this year’s program features numerous expert guest speakers, including from Tobacco Vapor Cannabis Group, the American Vaping Association, McKinney Regulatory Science Advisors and the Tax Foundation.

    The symposium will take place Feb 2-3 from 10:30 am to 6:30 pm Eastern Time.

  • China’s New Vapor Rules Could Have Global Fallout

    China’s New Vapor Rules Could Have Global Fallout

    China’s recently announced intention to regulate e-cigarettes as tobacco products will reverberate around the world, according to an analyses published on Keller And Heckman’s The Continuum of Risk blog.

    On Nov. 26, 2021, China’s State Council announced it would amend the country’s tobacco monopoly law to subject e-cigarettes to the same requirements as traditional cigarettes. On Dec. 2, the State Tobacco Monopoly Administration (STMA) published on its website the draft management rules for e-cigarettes for public comment.

    The draft rules define “e-cigarette” as an electronic delivery product that produces nicotine-containing aerosol for human inhalation. The definition does not include heat-not-burn tobacco products, which are already regulated as combustible cigarettes in China, according to Keller and Heckman. The draft rules make clear that e-cigarettes should be regulated like tobacco products by STMA and its local agencies and provide that e-cigarettes must comply with the e-cigarette national standard.

    Among other things, e-cigarettes will be subject to premarket registration upon a safety review by the STMA under the draft rules. Producers and sellers of e-cigarettes in China must obtain the same tobacco monopoly licenses as traditional cigarette manufacturers. In addition, all vapor product companies will be required to trade on a national e-cigarette platform to be set up by the SMTA. The draft rules also contain requirements to protect minors such as age-restrictions and warning labels.

    Because the draft rules’ registration and production licensing requirements apply to all e-cigarette manufacturers operating in China, they will also impact products sold abroad. China manufactures more than 95 percent of the world’s e-cigarette hardware.

    In 2019, China notified the World Trade Organization about its first national standard on e-cigarettes, which covers raw materials, technical requirements, testing methods and labeling, among other topics. On Nov .30, 3021, China published updated draft of the standard for comment.

    According to Keller and Heckman, the STMA plans to implement the standard “three to five months after its publication.”

    During the transition period, existing enterprises can continue manufacturing and operational activities. However, investors are banned from investing in new e-cigarette enterprises; existing e-cigarette production and operation entities must refrain from constructing or expanding production capacity, and they may not establish new e-cigarette retail outlets and market new products. “New import of e-cigarettes” will also be suspended during this period.

    The public comment period for the draft management rules closes on Dec. 17, 2021, 15 days after its publication, and the public comment period for the draft standard closes on Jan. 29, 2022.

  • E-Cigarette Leaders Welcome China Tobacco Regulation

    E-Cigarette Leaders Welcome China Tobacco Regulation

    China’s recently announced regulatory framework for e-cigarettes should secure the vapor industry’s future in that country, according to leading players in the business.

    On Nov. 26, China’s state council amended the tobacco monopoly law to include vapor products, meaning that, going forward, e-cigarettes will be managed like combustible cigarettes.

    With more than 300 million smokers—27 percent of adults—China is the world’s largest tobacco market. It also produces about 90 percent of the world’s e-cigarettes, primarily in the technology manufacturing hub Shenzhen.

    The government and the tobacco industry are, essentially, one entity in China, with the State Tobacco Monopoly Administration regulating the industry and China National Tobacco manufacturing tobacco products.

    To date, the vapor industry in China has operated in a legal grey area. Regulation had been widely anticipated, but many feared that it would wipe out the sector. The Nov. 26 announcement, however, was welcomed by leading players in the business. Industry representatives say it removes uncertainty and will weed out bad actors.

    In background article on the recent news from China, Filter cited Smoore global PR manager Frankie Chen, who expects national mandatory standards to significantly improve product safety and provide global vapers with better products.

    “Since the standards set higher requirements for vaping manufacturing, it is expected that only the responsible manufacturer with comprehensive safety management can be compliant,” Chen was quoted as saying.

    RLX Technology, too, welcomed the new regulatory framework. “We believe the sector will enter a new era of development—an era marked by enhanced product safety and quality, augmented social responsibilities, and improved intellectual property protection,” said RLX Technology chairperson and CEO Ying Wang at the presentation of the company’s third quarter results.

    RLX Technology Chief Financial Officer Chao Lu said the company is well prepared for the new operating environment. “The investments we made in products, talents, research, and compliance in the third quarter and beyond will place us in advantageous positions under the new regulatory paradigm,” he said.

    Photo: Timothy S. Donahue
  • China Draft Rules Require Vape Firms to Obtain Licenses

    China Draft Rules Require Vape Firms to Obtain Licenses

    Draft rules governing e-cigarettes were issued Thursday by China’s tobacco regulator. The move brings vaping products out of a regulatory grey area and under the oversight of the state. The State Tobacco Monopoly Administration’s draft rules follow China’s cabinet last week amending its tobacco monopoly law to include e-cigarettes.

    Credit: Timothy S. Donahue

    According to the draft rules, companies selling e-cigarettes in China must meet national standards in order to register with the tobacco authority and do business legally, according to Reuters. Companies engaged in the production of e-cigarettes must also receive a special license from the tobacco authority, provided they can prove that they have the funds for production and a facility with equipment that meets standards.

    The tobacco authority said that it will establish a “unified national electronic cigarette transaction management platform” that all licensed e-cigarette wholesalers and retailers “must sell products through.” Tax collection and payment of e-cigarettes, meanwhile, “shall be implemented in accordance with national taxation laws and regulations,” the regulator wrote.

    A bevy of Chinese companies manufacturing and selling nicotine salt-based e-cigarettes for the domestic market emerged in 2018 following the success of similar products overseas. The largest among them, RELX Technology Inc. went public in New York in January. China’s cigarette industry operates under a state-run monopoly directly controlled by the tobacco regulator, which dictates pricing and distribution for brands and generates tax income for the government.

  • China Moves Vaping Products Under Tobacco Monopoly

    China Moves Vaping Products Under Tobacco Monopoly

    China has amended its tobacco monopoly law on Friday to include e-cigarettes, stepping up regulation of the fast-growing vaping industry in the world’s largest tobacco market. The cabinet order, published on the Chinese government’s website and signed off by Premier Li Keqiang, comes into effect immediately, according to Reuters.

    A number of Chinese e-cigarette companies have been set up in recent years to tap into domestic sales potential, among them market leader RLX Technology Inc. RLX, whose shares closed 1.8 percent higher on Friday, said on its official WeChat account that it would heed the rules and make any required changes.

    Chinese regulators in March flagged plans to bring the rules governing the sale of e-cigarettes and other new tobacco products into line with those for ordinary cigarettes. They had previously been in a regulatory grey area.

    China’s tobacco industry is controlled entirely by a government monopoly, and strict controls determine which companies and retailers can produce and sell cigarettes. The government outlawed the sale of e-cigarettes to minors in 2018 and banned online sales the following year, while Chinese state media have warned of the health and safety risks of using the products.

  • China Vape Brand COEE Completes its A-Round Funding

    China Vape Brand COEE Completes its A-Round Funding

    Credit: Pink Badger

    The China-based vapor company COEE has recently completed A-round financing of several million RMB, led by QF Capital investment, followed by investments from other financial groups.

    “We mainly use A-round of financing to focus on improving our production R&D, layout in the global market channel, and user development as benefits of maintaining our product competitiveness and market influence,” said Tongliang Gao, co-president of COEE. “We are upholding the core values of long-termism, adopts innovative ‘manufacturer to sale integration’ channel strategy, consistently to respond and embrace policy supervision from the government, follow to the bottom line of protecting minors, and strives to become a marathon runner in the market.”

    Established in January 2021 in Shenzhen, COEE is a user-focus vape company that integrates with vape industry supply chains and strong market channel partners, according to the release. COEE has become the standing director unit of the E-Cigarette Industry Committee (ECIC) and China Electronic Chamber of Commerce (CECC).

    COEE products include its first generation “Meet” series that was launched in April. The device now offers 17 pod flavors. COEE stores have covered 30 provinces and 180 cities in the China mainland, and various stores and sales points have reached nearly 5,000. Qiyuan Liu, head of consumption investment for QF Capital, said that the core operation team of COEE are formerly from the mobile phones market. 

    “COEE has unique experience in channel construction and terminal management,” Qiyuan said. “Capitals recognize COEE team capabilities very much, and we are seeing COEE consistently put efforts in responding and cooperating with the supervision of the government. We are optimistic about the future development prospects of the project driven by demand.”

  • Hong Kong Bans E-cigs, Allows for Personal Use

    Hong Kong Bans E-cigs, Allows for Personal Use

    Hong Kong has banned the sale of e-cigarettes and other heated tobacco products but personal use is still allowed. The ban will come into effect as soon as mid-2022, Secretary for Food and Health Sophia Chan Siu-chee said. The maximum penalty for offenders will be a HK$50,000 fine and six-month imprisonment.

    Lawmakers passed the bill banning the import, sale and manufacture of electronic nicotine-delivery systems (ENDS) but some legislators say bill goes too far in targeting the business of vaping, will hurt the import sector and will deny a potential area for innovation.

    Credit: TS Donahue

    The long-delayed Smoking (Public Health) (Amendment) Bill 2019 passed Thursday, “delivering a major victory for health activists and educators who have blamed the devices for encouraging smoking among young people,” according to the South China Morning Post.

    While the new law targets only vape shops and the local business of vaping, consumers will still be free to use the devices, prompting some politicians to call for more aggressive measures to curb tobacco use, including banning smoking in all public places except for designated areas. Others, however, argued Hong Kong should allow reshipment of vaping products and warned the ban would hurt logistics companies.

    The bill was approved by a vote of 32 to three in the Legislative Council. Two lawmakers abstained.

  • Smoore, FEELM  Recommit to Innovation at UK Media Day

    Smoore, FEELM Recommit to Innovation at UK Media Day

    During its UK Media Day at Silverstone Circuit, held yesterday, Shenzhen Smoore Technology Co. announced that its flagship atomization brand, FEELM, is reinforcing its commitment to innovations in atomization technology. The company stated that its atomization coil is the key to the vape product performance and vaping experience.

    Credit: FEELM

    “Our Group has also made satisfying inroads in the research and development of medical and healthcare vaping products, with more than 1,000 scientists and experts from different backgrounds,” said Smoore’s Chief Scientist Dr. Shi Zhiqiang.

    FEELM coil technology features instant and highly efficient atomization, which produces a smooth and pure taste, authentic flavor and high nicotine delivery efficiency, according to FEELM. In 2019, FEELM launched its “FEELM Inside” global authentication trademark. The trademark serves as a symbol of an excellent vaping experience. Today, the “FEELM inside” symbol is on the closed system pods of many of the market-leading vapor brands around the world, such as RELX, NJOY, HAKA, HEXA, and VAPO.

    “With the global launch of FEELM in 2016, FEELM has a significant impact on the research and manufacturing of closed vaping products, changing the global vaping industry landscape. The ‘FEELM inside’ symbol today is widely recognized by our partners and consumers as a certification of our commitment to quality, authenticity and high-quality vaping experience,” said Zhiqiang Shi. “Our Group has also made satisfying inroads in the research and development of medical and healthcare vaping products, with more than 1,000 scientists and experts from different backgrounds.”

    FEELM alos announced it had opened the industry’s first fully automated closed-pod production line in 2019, realizing zero-staff inspection of product quality. To date, the productivity of a single line can produce 7,200 standard pods per hour, and the annual production capacity of FEELM now surpasses three billion pieces.

    As the world’s largest vaping device manufacturer in terms of revenue, Smoore has accounted for 18.9 percent of the total global market share in 2020, according to Frost & Sullivan.

  • Hong Kong May Ban All Vapor, Heated-Tobacco Products

    Hong Kong May Ban All Vapor, Heated-Tobacco Products

    The largest political party in Hong Kong has edged its support towards a ban on all vapor and heated-tobacco products. Democratic Alliance for the Betterment and Progress (DAB) of Hong Kong lawmaker Wong Ting-kwong, chairman of the Bills Committee on Smoking, said the government has asked him to host a meeting next Friday to decide whether the government should finalize its stance on electronic nicotine-delivery systems (ENDS).

    Photo Credits: Timothy S. Donahue

    According to reports, the DAB decided to throw their support behind the motion of a complete ban on the new tobacco products in a recent meeting, according to The Standard. With DAB lawmakers making up more than half of the committee on smoking members, the legislative amendment banning ENDS products is expected to be passed in this term. The proposed bill is aimed at amending the Smoking Ordinance by targeting ENDS products was introduced in February 2019 to outlaw the importation and sales – but not consumption – of ENDS products.

    Liberal Party’s Peter Shiu Ka-fai said that while 64 countries, including China, had started regulating ENDS products, authorities should handle e-cigarettes and heated-tobacco products separately, as there is currently insufficient evidence to ban heated-tobacco products. Shiu also added that it would be unfair to ban heated-tobacco products but not traditional cigarettes, given they are all tobacco products.

    The proposal was among four bills that the Legislative Council of the Hong Kong Special Administration Region (LegCo), the unicameral legislature of the Hong Kong Special Administrative Region of the People’s Republic of China, stopped working on last June. Legco stated at the time that it would not ban ENDS because “the products provide smokers with safer smoke-free alternatives.”

    However, after Beijing endorsed the Hong Kong government’s request to extend the Legco term by a year, a new bills committee was set up last November. It last met in June this year to discuss the bill.

    According to the Food and Health Bureau, the government plans to secure passage of the bill within the current Legco term, which will end in October, The Standard reports. Sales of e-cigarettes are currently banned in 30 jurisdictions, including Macau and Singapore.

  • Geekvape to Build in Hong Kong-Macao Greater Bay Area

    Geekvape to Build in Hong Kong-Macao Greater Bay Area

    Geekvape officials at the signing ceremony for an intelligent manufacturing industrial park in the Guangdong-Hong Kong-Macao Greater Bay Area. (Photo: PRNewsfoto/Geekvape)

    Geekvape will invest CNY10 billion ($1.55 billion) in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) with the support of the Shenzhen Municipal Government.

    Over the next two years, the Chinese e-cigarette company plans to build a modern industrial park for intelligent manufacturing that will help customers address their needs for increased production capacity.

    Geekvape says it will be the first vapor company to build modular intelligent manufacturing facilities. By leveraging a connected intelligent manufacturing platform, the Internet of Things technology and big data, Geekvape says it will further improve product quality and services.

    “Geekvape has always been committed to helping improve human wellbeing and community development,” said Geekvape CEO Allen Yang in a statement.

    “Benefiting from the ideal economic, geographical and business conditions in the GBA, in tandem with the momentum in the intelligent manufacturing sector, we will build on our presence in the area to expand globally. Geekvape will provide our customers across over 70 countries and regions with better products and services enhanced by intelligent manufacturing and innovative technologies.”