On October 1, 2022, China officially implemented the e-cigarette license policy. That is, in China, companies need to hold an e-cigarette license to engage in e-cigarette-related business activities. According to incomplete statistics, there are more than 20,000 companies engaged in the e-cigarette manufacturing industry in China, and as of December 20, 2022, there are only 600 companies in China that have obtained e-cigarette-related business licenses.
There are currently 600 companies that have obtained licenses. There are three types of licenses: brand holding licenses, OEM licenses, and production licenses. The brand holding license is for enterprises with high-quality brands but no production and processing capabilities. The company's branded products must pass the technical review of China Tobacco before they can be included in China Tobacco's circulation system, and can only be sold at retail terminals approved by China Tobacco. Only about 50 companies currently have brand holding licenses.
OEM licenses are for enterprises with production and processing capabilities but no brands. E-cigarette processing enterprises can produce for brand holders, and can also undertake foreign processing orders. However, enterprises with OEM licenses do not have export qualifications. So, who has the qualification to export e-cigarettes? Enterprises with e-cigarette production licenses are qualified to export e-cigarettes. Production licenses are for enterprises with brands and production capacity. Such enterprises can directly produce and export their own brand products, or accept OEM orders to produce for other brands, and the export of OEM products can only be declared through customs by the enterprise holding the production license. Production licenses are also divided into pure nicotine production licenses, e-liquid production licenses, and equipment production licenses. The production license enterprise is the main body of the whole machine production.
The pattern of China's e-cigarette industry has undergone profound changes. In the past, there were more than 20,000 companies related to the e-cigarette manufacturing industry, and e-cigarette brand owners in the international market can easily find e-cigarette suppliers. Now most of the e-cigarette companies without licenses have shut down, and e-cigarette foreign trade companies have the worst impact. Most of them have no factories. The factories they cooperated with now may not have production qualifications, and they do not have export qualifications for e-cigarette. Therefore, if you want to cooperate with a Chinese e-cigarette factory, you must first ask him whether he has a production license. The export declaration of e-cigarettes needs to show the production license number, otherwise there is no way to pass customs normally, and then there is no way to clear customs normally when the package goes to the destination country. In the next issue. Let's talk about China's new tax policy for the e-cigarette industry.