As we enter 2023, the newest China vape export policy and law regarding the export of vape are gradually being implemented. On May 26, 2023, the China National Tobacco Monopoly Administration held a press conference to introduce the comprehensive legal measures taken to strengthen the regulation of vape.
Since the implementation of the State Council’s Decision on Amending the Regulations for the Implementation of the Tobacco Monopoly Law of the People’s Republic of China on November 10, 2021, tobacco monopoly administrations at all levels in China have continuously improved their regulatory systems and standardized the production and operation activities of various vape entities, promoting the smooth and orderly operation of the vape industry chain.
A spokesperson for the China National Tobacco Monopoly Administration stated, “Considering the significant outward-oriented nature of China’s vape industry and the fact that the majority of domestically produced vape are exported, we will supervise relevant companies to fully comply with regulatory policies.
It is required that the packaging of exported vape products and domestic logistics activities meet the relevant regulations. Additionally, the import of nicotine and aerosols for vape under bonded status, as well as the export of vape products, should be registered promptly on the vape trading management platform.”
Since the release of the “vape Management Measures” on March 11, 2022, and the mandatory national standard for vape on April 8, 2022, the China National Tobacco Monopoly Administration has implemented policies such as the consumption tax policy for vape, pre-listing review mechanism for vape-related companies, policies on the importation, limited mailing, and limited carrying of vape across different regions.
The focus has been on ensuring product quality and safety, strengthening the promotion, technical evaluation, and quality supervision and spot checks of the mandatory national standards for vape, and enhancing the quality and supply capacity of vape products. Furthermore, it has been encouraging compliant international business operations by vape export companies, continuously improving the competitiveness of enterprises and products.
On July 18, 2023, the China National Tobacco Monopoly Administration issued the “Guidelines for Promoting the Establishment of Quality Assurance Systems for Exported vape Products.” The guidelines emphasize that the construction of quality assurance systems for exported vape products should be based on the actual situation of enterprises, actively align with international advanced technology, rules, and standards, and focus on improving product quality and ensuring product safety.
This comprehensive implementation of guidelines signifies further improvement in the compliance supervision of vape exports, leading to the elimination of non-compliant enterprises and accelerating the trend towards industry concentration among leading players. This development bodes well for the long-term stability and healthy growth of the industry.
In July 2023, the newest China vape export policy regarding the export of vape include four major requirements:
First, Chinese vape export companies are required to ensure that their exported products comply with the legal regulations and standards of the destination country or region. If there are no relevant legal regulations and standards in the destination country or region, the products should comply with the relevant requirements of Chinese laws, regulations, and standards.
Second, Chinese vape export companies are required to streamline their production processes to ensure sustainable and stable production of products that meet the explicitly defined quality and safety standards of the company. They should enhance operational training to ensure that staff can correctly follow the processes.
Third, in case of quality and safety issues with Chinese vape products reported by international organizations or foreign government agencies, the companies should immediately report to the local tobacco monopoly administration and cooperate with the investigation and resolution conducted by the tobacco monopoly administration in accordance with the law.
Fourth, the domestic and international logistics transportation of Chinese vape products should meet relevant safety requirements to ensure traceability throughout the entire process.
In addition, the newest China vape export policy for the export of vape in 2023 stipulate that vape manufacturers must provide a clear list of ingredients on the product packaging. Consumers now have the right to know what they are inhaling. This is good news for health-conscious consumers and a significant concern for manufacturers who believe they do not need to disclose their ingredients due to competitive pressures.
Furthermore, specific colors and music are not allowed in the packaging and advertising of vape, as they can make vape sound like exciting and vibrant things. This is because these elements may mislead minors, especially those who are easily excited and stimulated, into thinking that vaping is a pleasurable and dynamic experience.
Finally, the addition of certain flavors is prohibited in vape, as they are considered to increase the appeal to smokers. However, this ban may not meet the preferences of everyone.
The impact of the newest China vape export policy on the export of vape in July 2023 can be summarized as follows:
Market Concentration: With the introduction of a consumption tax on vape in China, industry-leading companies with advantages in scale and automated production will be better positioned to absorb the tax impact. This could lead to accelerated market consolidation and the potential exit of smaller manufacturers.
Export Opportunities: The Chinese vape industry possesses an irreplaceable advantage in the entire value chain, from technology research and development to product design and manufacturing. The latest policies and regulations in 2023 encourage vape companies to export and generate foreign exchange earnings. The main revenue trend is expected to be focused on contract manufacturing for export and brand expansion into international markets.
Global Market Potential: According to reports, the global vape market is projected to reach $38.53 billion by 2026. Chinese vape companies with comprehensive advantages in technology, production scale, and quality management are expected to benefit significantly from the global growth of the vape market.
Regulatory Compliance and Quality Assurance: the newest China vape export policy provide clear standards and requirements for vape companies. Businesses are required to comply with laws, declare and register their products, strengthen internal management, and ensure product quality and safety to meet market and consumer demands.
Overall, the implementation of the newest China vape export policy for the export of vape in 2023 is a significant milestone for the industry. It provides clear guidance for the industry’s normal operation and healthy development.
In conclusion, the impact of the newest China vape export policy on the export of vape is multifaceted, aiming to promote the industry towards a healthier and more sustainable direction.
