China’s market regulator today unveiled technical standards for e-cigarettes which will go into effect starting Oct 1.
In a public document, the State Administration for Market Regulation listed the requirements for design, chemical compounds, and the mechanics for e-cigarettes that domestic manufacturers must meet in order to sell their products, according to Channel News Asia.
In March, Chinese tobacco authorities issued a finalized version of rules that stipulate other requirements for e-cigarette companies in China.
Most notably, the rules state that e-cigarette companies may only sell their products through authorized channels, and also bar vendors from selling e-cigarette flavors other than tobacco.
Also, the design of the product should not induce minors. The e-cigarette set and cartridges should be sealed to prevent refilling and e-cigarette sets should have a protection to prevent the device to be turned on by a child or by accident, according to the rules.
“The official release of the national standards for e-cigarettes means that there is a threshold for market access and a national mandatory standard for the quality of e-cigarettes, which is of great significance in protecting the rights and interests of minors and consumers,” said Ao Weino, Secretary-General of the Electronic Cigarette Industry Committee of the China Electronics Chamber of Commerce, Chinese media outlet Yicai reported on Tuesday.
Additionally, Chen Zhong, a senior expert on the e-cigarette industry, said that the era of regulation of e-cigarettes has come and it is an important milestone in the development of e-cigarettes in China.
“From now on, all [e-cigarette] products will be developed according to open and transparent rules, and the whole industry chain will adopt the same standards,” Chen was quoted in a report by the Securities Times.
The Beijing Business Today has revealed that many flavored vape products have seen prices increase by up to 20-30 yuan ($3.14-$4.72). Market research firm Forward Industrial Research Institute, has recently reported that in China there are approximately 1,500 vape manufacturers and brand enterprises, and over 100,000 e-cigarette supply chains and related service enterprises, providing employment to an estimated 5.5 million people.
The research firm also found that in 2021, the domestic e-cigarette sales totaled about 19.7 billion yuan ($3 billion), with an annual growth of 36 percent.
This story will be updated as more information becomes available.
Alibaba International Station announced that, beginning May 1, it will no longer allow the sale of vaping products. The cross-border trade B2B e-commerce platform’s ban will include cartridges, e-liquids, hardware and all other vaping related products.
After the document was issued, many e-cigarette brands said that they will actively implement the regulatory requirements and stop the production of e-cigarettes with fruit flavors in the domestic market, according to dayday News. Therefore, under the new regulations, the prices of e-cigarettes have been rising. Many brands raised the price of their e-cigarettes with various fruit and soda flavors, with prices increasing between 20 yuan ($3.14) to 30 yuan ($4.71).
According to a report released by iiMedia Research, the retail sales of the global new tobacco market reached 360.5 billion yuan in 2021, an overall increase of 25.6 percent, while China’s domestic sales increased by 73 percent. In addition, according to the Blue Book of the Electronic Cigarette Industry in 2021, in terms of export, the total output value of electronic cigarettes exports reached 138.3 billion yuan, and there are more than 1,500 e-cigarette manufacturers in China.
China’s State Tobacco Monopoly Administration (STMA) regulations for e-cigarettes are strict. The country will begin enforcing the license management for e-cigarette production, wholesale and retail entities starting from May 1, according to a translated version of updated regulations. They apply to all hardware and e-liquid products, including all components and ingredients. The announcement follows preliminary draft rules authorities issued in December 2021.
“The administrative department in charge of tobacco monopoly of the State Council takes charge of national supervision and management of electronic cigarettes, and is responsible for the formulation and organization of implementing electronic cigarette industry policies,” the regulations state. “The administrative department in charge of tobacco monopoly of the State Council shall organize professional institutions for technical review of electronic cigarette products based on inspection and testing reports and other application materials.”
Rules for products being produced for export could be market changing, and crushing for destination countries. China states that all products produced for export must comply with the regulations and laws in the destination country. If a country does not regulate e-cigarettes, China’s rules for vaping products would apply to those exports, including bans on flavors and synthetic nicotine.
“Electronic cigarette products not sold in China and only used for export shall comply with the laws, regulations and standards of the destination country or region,” the rules state. “If the destination country or region does not have relevant laws, regulations and standards, they shall comply with China’s relevant laws, regulations and standards.”
One industry expert with knowledge of China’s vapor industry said that China may choose to not enforce its export rules, however. “China doesn’t want to crush vaping exports,” he said. “They could choose to hold back enforcing the export provisions.”
The most critical changes locally in China’s rules is the country will now ban all non-tobacco flavors. China will also not allow for the sale of open systems, only closed pod systems will gain marketing approval. The importation of any vaping related products, such as pre-mixed e-liquids, must also be approved by Chinese authorities, according to the regulations.
Any company that produces e-cigarettes in China must now get a license. If a company wants to expand its production or product portfolio, the company must garner approval from the STMA. All nicotine must be tobacco derived and purchased from approved sellers in China, the regulations state. Chinese regulators will also establish a unified e-cigarette traceability system to strengthen the whole-process management of vaping products.
“Electronic cigarette wholesale enterprises shall not provide electronic cigarette products to units or individuals that are not qualified to engage in electronic cigarette retail businesses,” the regulation states.
The rules also state that “enterprises or individuals that have obtained the tobacco monopoly retail license … shall purchase electronic cigarette products from local … wholesale enterprises, and shall not exclusively operate the electronic cigarette products sold on the market.” One industry expert explained to Vapor Voice that the statement means all retail outlets must sell multiple brands and not just a single brand. Traditionally, stores such as RELX, the largest vaping retailer in China, only sold its own brands.
Additionally, authorities will establish a “unified national electronic cigarette transaction management platform” that e-cigarette industry businesses that have obtained tobacco monopoly licenses must conduct all transactions through. It is unclear if China will also begin cracking down on manufacturers of counterfeit products for export, however, the rules do encourage the reporting of these and other illegal manufacturers.
“Rewards will be given to units and individuals who have made meritorious deeds in reporting cases of illegal production and sales of electronic cigarette products, e-atomization material products and electronic cigarette nicotine,” the rules state.
China’s domestic e-cigarette market is going to look very different next year. Draft rules governing e-cigarettes were issued on Dec. 2 by the country’s tobacco regulator, the State Tobacco Monopoly Administration (STMA). While the entirety of China’s new draft rules for the regulation of vaping products are vague and still being reviewed by interested parties, the included standards for the manufacturing of vapor products do open a window into the future of China’s domestic vapor market.
The National Standards of the People’s Republic of China for e-cigarettes allows only for closed pod systems with tobacco-derived nicotine and tobacco-derived nicotine salts. Flavors will be allowed and cartridges can’t leak, according to a translated copy of the proposed rules.
Unlike other countries, China will only allow tobacco-derived nicotine. The rules do not allow for a synthetic nicotine. “Nicotine extracted from tobacco should be used, and the purity should not be less than 99 percent,” the standards state. “Benzoate, tartrate, lactate, levulinate, malate and citrate of nicotine are allowed, and nicotine for preparing the above nicotine salts shall meet the requirements of [the previous statement].”
However, synthetic nicotine will still be allowed in products for export. What isn’t clear is if that synthetic nicotine must be shipped into China premixed in PG and/or VG and held in bond or if a pure synthetic can be imported. “There’s no legal imports of nicotine as far as we can tell. There’s seems to be no leeway for legal imports of a pure synthetic nicotine. However, we think if people import e-liquids with nicotine as a certain percent of that, that’s okay,” an industry representative told Vapor Voice and asked not to be named because they didn’t have permission to speak on the matter. “We don’t know if it’s 10 percent or 20 percent and it can only be brought into the country to be manufactured for re-export, that appears to be okay. That is just how we are interpreting the rule though, maybe someone else is seeing it differently.”
It also seems that the proposed rules also do not allow for a company to import finished vaping products into China and then sell them domestically without having a license and being registered with STMA (local companies will also need licenses). However, the country will continue to encourage exports, and wants domestic manufacturers to develop markets overseas.
“What they’ve really done is they’re clamping down on anything that is destined for the domestic market,” the source said. “They’ve also tapped into the tax department. Any time a manufacturer wants to manufacturer an e-cigarette or parts for an e-cigarette, they have to have a local representative from the taxation bureau there. And each day’s production that they run, they have to pay tax on those products at the end of that day. They’re clamping down in terms of what people can do as well as trying to ensure that they collect relevant taxes from all the manufacturers.”
Chinese vapor manufacturers are still waiting to understand what needs to be done officially for a company to produce vaping products for the international and/or domestic market. “We’re still waiting on that. The important piece isn’t the product standards,” the source said. “What I’m really interested in is the registration process, who’s allowed to do what, who has to issue licenses, because now there’s an emergency management bureau involved, not just STMA, so it’s a lot of people. We’re also trying to figure that piece out.”
China’s product standards do clarify what types of products China will allow domestically. The country will only allow closed-pod systems to be sold, stating that “devices and cartridges using e-liquid should have a closed structure to prevent artificial filling.” Additionally, flavors will be allowed for now, but flavors are only approved under a “temporary permit for additive in e-vapor matter” and any substance or flavor not listed “shall be used only after being proved to be safe and reliable by risk assessment,” the standards state. The listed additives include numerous flavoring extracts such as coffee, cocoa, prune and vanilla bean.
The standards only allows for a maximum amount of nicotine of 20 mg per milliliter (mL). The source also said that the way he interprets the rules is that vape symposiums, such as the recently held 2021 IECIE Shenzhen eCig Expo (held Dec. 6-8), wouldn’t make sense to be held in China anymore.
2021 IECIE Shenzhen eCig Expo (Credit: IECIE)
“I can’t imagine, if they’ve really taken bookings and got one on the cards currently, that they will cancel it, but we’ll see shortly,” the source said. “The Chinese domestic market is off limits to outsiders now. Moving forward, I don’t see a place for [trade shows] in this market anymore.”
For China’s domestic manufacturers the outlook is grim. While international players will still survive, they are still confused about what will be expected when the rules are finalized. Stock shares for RLX, China’s largest domestic brand, fell by more than 16 percent after the SMTA released the proposed rules. In Shenzhen, the capital of global vapor manufacturing, the industry is in a state of shock, according to the source.
“Everybody, from big to small, is scrambling to try and find out how this relates to them,” the source said. “They all have to register immediately with State Tobacco Monopoly to continue doing business. They have to register what they’re going to be manufacturing, what their exports are, where they are going. It’s a complete disaster.”
A more detailed version of this story will appear in the next issue of Vapor Voice.
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.
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.
Beginning in October, Australian businesses will face fines of up to AUS11 million ($8.2 million) if they are caught selling illegal nicotine vaping products. That’s when a strict new set of safety guidelines from the medicines regulator will come into effect for vaping products that are supplied into Australia and are not registered in the Australian Register of Therapeutic Goods. There are currently no nicotine vaping products in the register.
Credit: Belyay
The move comes as part of an overhaul of the country’s vaping regulations. The rules state Australians must have a prescription before buying e-cigarettes and vaping products online from overseas, according to theSydney Morning Herald.
The new quality rules specify that the products must not contain any active ingredients other than nicotine. They also detail set labelling and packaging rules, including warnings to keep the goods out of reach of children. The rules also ban certain flavoring additives such as cinnamaldehyde, which is used to create a cinnamon flavor, and acetonin, which is used to create a creamy flavor.
A Therapeutic Goods Administration (TGA) spokesperson said supplying non-compliant products was a criminal offence and could also result in civil penalties and fines “up to 5,000 penalty units for an individual – up to AUS1,110,000 – and 50,000 penalty units for a corporation – up to AUS11,100,000.”
The federal Department of Health held widespread consultation on the new standards, with advocacy group Quit arguing in its feedback that the regulator should be regularly tracking and updating restricted ingredients in line with new evidence about the risks they might pose. “The TGA will revise the list in Schedule 1 to TGO 110 if and when more evidence becomes available showing that other ingredients used in nicotine vaping products carry demonstrable health risks associated with inhalation,” the TGA spokeswoman said.
A measure that would have banned flavored e-cigarettes in Connecticut died in the state Senate late Tuesday after its main advocate said the ban was “riddled with major loopholes,” leaving tens of thousands of children and teens unprotected.
Credit: Christopher Boswell
“The Connecticut Legislature is making it quite clear that it will sell out Connecticut’s kids to do the bidding of Juul and Altria instead,” Matthew Myers, president of the Washington-based Campaign for Tobacco-Free Kids, said in a written statement earlier Tuesday, according to The Telegraph.
Earlier this year, the legislature’s Public Health Committee passed a bill that would have banned all flavored tobacco products, including menthol cigarettes, but that bill was diluted. Then over the last few days, it was gutted further. In the General Assembly’s special session this week, the measure was added to the 857-page budget “implementer” that lawmakers adopt at the end of each spring session.
Rep. Jonathan Steinberg, co-chair of the public health committee, said earlier Tuesday he and fellow Democratic co-chair Sen. Mary Abrams were not consulted about the changes, and that he was first alerted to them by “one of the interested parties.”
It has long been anticipated that the tobacco monopoly in China would one day regulate electronic nicotine-delivery systems (ENDS). On March 22, China’s Ministry of Industry and Information Technology (MIIT) and the State Tobacco Monopoly Administration (STMA) released a draft proposal to overhaul rules governing the ENDS market.
Shares in RLX Technology, parent to China’s market-leading RELX e-cigarette brand, plunged in the wake of the announcement. Just two months after the vapor maker’s billion-dollar debut on the New York Stock Exchange, RLX shares fell by nearly 45 percent to $10.69 per share on March 22, having reached a high of $19.46 per share on March 19.
An online copy of the “Decision on Amending the Implementation Regulations of the Tobacco Monopoly Law of the People’s Republic of China” suggests the government intends to regulate ENDS like ordinary cigarettes. That could mean special licensing requirements and much higher taxes of up to 65 percent instead of the 13 percent value-added rate companies currently pay. The ministry is seeking public comments on the draft regulations until April 22. The implications of the draft regulations could be far-reaching. With an estimated 300 million smokers, China is the world’s largest potential market for vapor products.
“In view of the homogeneity of new tobacco products such as e-cigarettes and traditional cigarettes in terms of core ingredients, product functions and consumption patterns, new tobacco products such as e-cigarettes shall be implemented in accordance with the relevant provisions of the Regulations on Cigarettes,” the draft proposal states. “The implementation … will greatly enhance the effectiveness of e-cigarette supervision, effectively regulate e-cigarette production and operation activities, solve the product quality and safety risks of e-cigarettes, false advertising and other issues, and effectively protect the legitimate rights and interests of consumers.”
While the news will have some impact on the global ENDS market, the Chinese manufacturers producing for international markets will likely continue operations. “Depending on how they regulate and to what extremes, it could be devastating to the companies operating in the consumer market in China,” said a representative of a major China-based ENDS manufacturing company, who asked for anonymity. “We expect that there will be players that remain in the market, possibly working alongside the Chinese government in the promotion and sales of vaping products. Right now, we are just waiting for a better understanding of what this means for China’s domestic market. A worst-case scenario would be an outright ban on all products, but this is unlikely.”
The draft proposal states that the regulations will have three purposes:
To promote the rule of law in the supervision of e-cigarettes;
To conform to the characteristics of e-cigarette products and current international regulatory practices;
To enhance the regulatory effectiveness of e-cigarettes.
There are 350 million smokers in China. The country consumes an estimated 1 trillion cigarettes per year. As the largest cigarette market in the world, it would make sense for China to embrace vapor products as a less risky alternative to combustible tobacco. However, with a state-run tobacco monopoly and billions of dollars of taxes at stake, industry experts say the Chinese vapor market is complicated and slow to implement regulations.
Despite impressive growth, China’s vapor market is still insignificant compared to its tobacco market. As of the end of 2019, an estimated 7.4 million people in China were regular e-cigarette users, according to Cloris Li, a spokesperson for Smoore International, parent to FEELM and the Vaporesso brand.
“That means the electronic cigarette industry in China can still potentially convert a large number of smokers,” said Li. “Considering China’s status as the biggest tobacco market, it has enormous potential to continue the current rapid growth rate. In 2018, Chinese e-cigarettes and auxiliary products had a market size of CNY5.52 billion [$848.38 million], and it is predicted to grow more than double to CNY11.28 billion by 2022.”
Vaping products in China are not considered tobacco products like they are in Europe and the United States. Instead, e-cigarettes are considered a consumer goods product. During the E-Vapor and Tobacco Law Virtual Symposium, sponsored by the law firm Keller and Heckman, two industry experts discussed the current vaping and tobacco market in China. One speaker noted that because e-cigarettes do not fall under the definition of tobacco as defined under the country’s monopoly laws, China, at the time, had yet to implement any major restrictions on vapor products.
With little regulatory guidance, China’s vapor market has been booming both in terms of domestic consumption and manufacturing exports. China, where the modern e-cigarette was invented, has become the manufacturing hub of the fast-growing global vapor industry. This has led to the rise of several major corporations, including the world’s most valuable vapor company, Smoore International.
When Smoore went public in mid-2020, its stock grew by nearly 150 percent on its opening day of trading on the Hong Kong Exchange. Smoore stock did not suffer after the MIIT announcement. The value of Chinese e-cigarette maker RLX Technology, parent to the RELX brand, jumped 146 percent during its trading debut in January 2021 after raising $1.4 billion in its U.S. initial public offering, before dropping drastically after the MIIT announcement.
In its prospectus, RLX stated that vaping products only have a 1.2 percent penetration rate in China compared with 32.4 percent in the U.S. The Electronic Cigarette Industry Committee estimated China’s 2020 e-cigarette sales at CNY14.5 billion, an increase of 30 percent from 2019 (CNY11.2 billion). By comparison, the U.S. e-cigarette market in 2019 was worth $5.34 billion and is expected to reach $6.50 billion in 2020, according to Grandview Research.
RLX is doing its part to accelerate e-cigarette sales in China. In early 2020, the company launched its two flagship RELX vape shops in Shanghai and Beijing. Today, RELX has partnered with 110 authorized distributors to supply its products to over 5,000 RELX-branded partner stores and over 100,000 other retail outlets nationwide, covering over 250 cities in China, according to its prospectus. Revenue for the company nearly doubled in the nine months ended Sept. 30, 2020, to $324 million, with a net income of $16 million.
Along with the Smoore and RLX initial public offerings, China’s vaping industry continues to attract lots of attention from the capital market, according to Li, it is unknown if the proposed regulations will hamper that attention. “This year, in 2021, many more second-tier brands are spearheading efforts to acquire financing to expand the market [in China], especially markets in lower tier cities,” Li said. “For example, MOTI intends to invest cny1 billion to open 10,000 stores. Snow Plus even announced its intent to distribute future stock shares to distributors to open more stores.”
To date, the Chinese government has passed two major pieces of legislation for vapor products. In 2018, it made it a crime to sell a vapor product to anyone under 18 years of age. In November 2019, the government prohibited online sales of vapor products to prevent youth initiation. In 2020, the country passed the Law of the People’s Republic of China on the Protection of Minors. That law is aimed at preventing parents or other guardians from “indulging or instigating minors” to smoke or vape.
The Chinese government wants to avoid the rapid rise in youth vaping that occurred in the U.S. If the U.S. figures replicated domestically in China, it could harden Beijing’s stand on the category, according to a 2021 report from ECigIntelligence. For now, e-cig usage among Chinese youth remains relatively low. A 2019 survey by the Chinese Center for Disease Control and Prevention found that 8.6 percent of high school students aged between 15 years and 18 years in China had used “tobacco” products during the previous 12 months.
Between July and August 2020, authorities collected comments on a bill that would restrict the public use of e-cigarettes nationwide and establish specific areas where vaping would be allowed. “The amendments to the Law on the Protection of Minors would prohibit vape stores from operating near schools, ban e-cigarette sales to minors and vaping in schools, kindergartens and anywhere else where young people are gathered,” the report states. “The bill would also require vendors to ask for an identification document if in doubt about a purchaser’s age while shop owners would be required to put up a prominent ‘no sales to minors’ sign. If the proposals are adopted and e-cigarettes are regulated under the same umbrella as traditional tobacco products, it would be China’s first national law specifically restricting e-cigarettes.”
In 2020, the Chinese government also floated the idea of banning vapor products completely. Another proposal suggested that e-cigarettes should be regulated as tobacco products while prohibiting their promotion as smoking cessation products. The authors of the study point out that Chinese rules can impact a market virtually overnight. Prior to the country’s ban of online sales of vapor products, there were hundreds of thousands of products available on the internet. The day after the announcement, an online search for e-cigarettes would have yielded zero results. “When the authorities do put something in writing and announce something that they want to put into effect, it can happen oftentimes almost immediately,” the report states.
While the Chinese government is yet to release any vapor regulations concerning components and manufacturing, several industry players have come together to self-regulate the industry. In 2017, draft regulation or standards were developed on the industry level. While not mandatory national standards, the rules give a good sense of what the industry considers sensible in terms of specifications, requirements and limitations.
“The same holds true with the group standards concerning the raw materials, about the diluents, the flavorings, and some requirements as it relates to physical, chemical, hazardous substances. They go into some test methods,” a presenter at the Keller and Heckman seminar said. “Not always, but typically, the authorities will look at these group standards, voluntary standards, and start to adopt some of that language when they make mandatory national standards. So, having a good sense of what these [recommended standards] look like … that would be important.”
Further complicating China’s vapor market is the China National Tobacco Company (CNTC), the state-run tobacco monopoly. If the monopoly chooses to enter the vapor market, it could devastate the independent vape shops that proliferate the Chinese market. “The state monopoly has yet to signal clearly how it will regulate e-cigarettes or whether it will sell them. If it does, it has the power to regulate its competitors out of the market,” the report states.
The industry is acutely aware of this risk. In a November 2019 interview with Reuters, one investor in a Chinese e-cigarette startup compared the combined regulatory and competitive threat posed by CNTC as “a knife on the neck.” CNTC is a source of major funding for the Chinese government. Its contribution accounted for an estimated 5.45 percent of the country’s tax revenue in 2018. That amounts to cny10.8 trillion, according to media reports.
If CNTC were to enter the vapor market, the monopoly’s existing 5 million domestic retail outlets could present a major challenge for private vape shop owners. Kate Wang, CEO for RELX, told Reuters (before the draft regulations were announced) that she’s “not worried” about the government’s impact on the sector. The products will continue to remain available, she said, “as long as there’s proof that this is a good solution for smokers.”
The Alabama House of Representatives passed a vaping bill that will prevent vape manufactures and retailers from using advertising techniques designed to appeal to young people, such as incorporating characters from comic books in ad campaigns. It would also prevent makers of vape pods and cartridges from claiming the taste of their product resembled “candies, cakes, or other sugary treats.”
Credit: David Mark
The legislation, HB 273, also changes Alabama’s law to mirror the federally established age to purchase vaping products, 21. The bill would require the Alabama Department of Revenue to build and maintain a directory of businesses that sell and manufacture vape cartridges, e-liquids and any alternative nicotine product in Alabama. Furthermore, it would require the relevant businesses to pay for certification in the directory.
Selling vape cartridges and e-cigarettes in vending machines would be banned under HB 273. Manufacturers and retailers of nicotine products like vapes and e-cigarettes will also be required to post notices about the dangers of their usage, such as exposure to toxic metals. All locations selling vapes and any nicotine delivery system would be required to post a prominent sign near where customers check out that displays 21 as the legal age to buy nicotine products.
The bill is sponsored by Rep. Barbara Drummond (D-Mobile). Two Republican members, Reps. Debbie Wood (R-Valley) and David Faulkner (R-Mountain Brook), are among the cosponsors of the legislation. It passed the House on a bipartisan vote of 74-18 with two abstentions. They say the bill is designed to reduce the use of e-cigarettes and vaporizers among young people.
“My issue has always been to safeguard the welfare of young people,” Drummond said on the floor about her proposed law, according to the Yellow Hammer News.
Each business entity that deals with vaping would have to pay the state an initial $2,000 certification fee, and each subsequent year would have to pay a $500 renewal for continued certification. Funds from the fees would go to implementing and maintaining the directory.
“There are some bad actors out there selling this stuff illegally right now,” noted Drummond about the need for a registry, further explaining that the registry makes the job of law enforcement easier.
China’s market regulator today unveiled technical standards for e-cigarettes which will go into effect starting Oct 1.
