China's Tobacco Authority Proposes Production Capacity Caps for E-Cigarette Manufacturers

On April 2, China's National Tobacco Monopoly Administration released a draft notice proposing amendments to several e-cigarette regulatory policy documents for public consultation. The revised content indicates that, in order to achieve a balance between supply and demand in the e-cigarette market, production volume controls will be implemented for manufacturers involved in e-cigarette production. Capacity and production scale will be approved in accordance with laws and regulations.

The national tobacco administrative department will comprehensively consider factors such as tobacco control, approved production capacity, market demand, corporate orders, and legal compliance when categorizing and approving annual production scales. These scales will serve as the upper limit for production and transaction volumes of corresponding product categories within the natural calendar year.

Provincial-level tobacco monopoly administrative departments will organize e-cigarette wholesale enterprises within their jurisdictions to conduct business operations within the annual domestic sales targets set for their respective provinces, autonomous regions, or municipalities.

The draft notice includes revisions to seven existing e-cigarette regulatory policy documents. Key amendments involve refining policies related to industrial layout, market operations, and production management to ensure the e-cigarette industry develops under a legal and standardized framework.

Specific changes include updates to investment management rules, technical review procedures for e-cigarette products, traceability management requirements, and regulations governing import-export trade. The amendments emphasize adherence to approved production capacities and scales, with stricter oversight on fixed-asset investments and production processes.

The notice also adjusts terminology across documents, replacing terms like "production scale" with "approved production capacity" in certain contexts to enhance precision. These revisions aim to strengthen the overall coherence and enforceability of China's e-cigarette regulatory system.

The proposed changes are set to take effect upon official issuance. Relevant policy documents will be updated and re-released accordingly following the finalization of the amendments.