It is required that during domestic transportation, e-cigarette related manufacturers and related service providers must not illegally sell and export e-cigarette products, vapes, nicotine for e-cigarettes, etc.
The State Tobacco Monopoly Administration plans to revise the “E-cigarette Logistics Management Rules” issued on June 2, 2022 in line with the current state of e-cigarette logistics operation.
The “Draft for Solicitation of Comments” is divided into 6 sections with a total of 32 articles. Compared with the “Rules”, the main contents of this revision include: First, improving some definitions, such as adding Article 28 to define enterprises selling nicotine raw materials for e-cigarettes and clarify the scope of their licensing;
Second, the regulations on how to issue logistics documents have been revised, such as amending Article 6, changing the method for issuing logistics documents from being produced by an enterprise to generating them on a platform, etc.
Third, some additional administrative requirements have been added, such as adding Article 17, which requires that during domestic transportation, e-cigarette related manufacturers and related service suppliers must not illegally sell and export e-cigarette products, vapes, nicotine for e-cigarettes, etc.
According to the Open Source Securities Research Report, e-cigarette export compliance supervision will be further improved. Information such as the license number and production batch number of the tobacco monopoly manufacturer will be mandatory on the boxes and packaging boxes of all exported e-cigarette products.
E-cigarette standardization is beneficial to relevant Hong Kong stock companies:
China Tobacco Hong Kong (06055): The company signed a memorandum of understanding with China Tobacco Sichuan to promote the expansion of Great Wall Cigar products into overseas markets. China Tobacco Hong Kong is an international business development platform, capital operation platform and exclusive operating entity for related trade business designated by China Tobacco Corporation. Tianfeng Securities previously pointed out that the company has two major advantages, namely scarcity and business model. China Tobacco Hong Kong has exclusive rights to operate the relevant tobacco international business. According to China Tobacco Corporation Document No. 60, China Tobacco Hong Kong is the exclusive operating entity designated by China Tobacco Corporation to engage in international business development platforms and related trade business.