E-cigarettes in China

China: As of yesterday, a 36% ad valorem tax is applied on production and import of e-cigarettes and 11% on wholesale. E-cigarettes for export are exempt from the consumption tax.

China: Several state authorities have today jointly announced plans to levy a consumption tax on e-cigarettes. The Announcement on Collection of Consumption Tax on Electronic Cigarettes 33/2022 sets a 36% ad valorem tax rate on production and import of e-cigarettes and 11% on wholesale price from 1st November. The introduction of a specific tax was outlined earlier this year in the Policy Measures to Promote the Legalisation and Standardisation of the E-cigarette Industry, which said the tobacco administration should work with the relevant departments to formulate and promote the implementation of tax policies.

China: Ahead of the implementation on Saturday, 1st October, of the new national standard for e-cigarette products, the tobacco administration has published a notice reiterating that e-cigarettes intended for export must comply with the regulations of the destination country or region. If the destination country does not have relevant laws, the products must comply with Chinese rules. E-cigarette manufacturers with a tobacco monopoly manufacturer's licence who are engaging in exports should make export filings through the electronic cigarette trading management platform. The administration will accept objections from existing e-cigarette manufacturers from 8th to 31st October.

China (Macau): The Macau Legislative Assembly has unanimously approved a government amendment to the New Tobacco Control Law, which prohibits the manufacture, import, export, distribution and transport of e-cigarettes. Until now, e-cig sales have been forbidden in the special administrative region, while limited imports for personal use were allowed.

China: The national Unified e-cigarette trading platform was launched today. As explained in our report on Chinese regulation, the platform will hold information on licensed operators and all products sold domestically, as well as those intended for export after they are reviewed by the tobacco administration.