Order of the State Council of the People's Republic of China on the Detailed Rules for the Implementation of the Tobacco Patent Sales Law of the People's Republic of China

Order of the State Council of the People's Republic of China on the Detailed Rules for the Implementation of the Tobacco Patent Sales Law of the People's Republic of China
Order of the State Couoncil of the People's Republic of China on the Detailed Rules for the Implementation of the Tobacco Patent Sales Law of the People's Republic of China

Order of State Council [1997] No.223

July 3, 1997

The Detailed Rules for the Implementation of the Tobacco Patent Sales Law of the People's Republic of China is hereby promulgated and shall be implemented as of its issuance.

Primer Li Peng

Detailed Rules for the Implementation of the Tobacco Patent Sales Law of the People's Republic of China

CHAPTER ONE GENERAL PROVISIONS

Article 1 The detailed rules have been formulated pursuant to the "Tobacco Patent Sales Law of the People's Republic of China" (hereinafter referred to as "Tobacco Patent Sales Law").

Article 2 Tobacco patent sales refer to monopoly of the State of the administration of production, marketing and import and export of patent tobacco products.

Article 3 Patent cut tobacco refers to tobacco filaments, dust and granules processed with tobacco leaves, re-cured tobacco leaves and tobacco sheets as raw materials.

Article 4 Institution of functions and administrative system of departments in charge of tobacco patent sales of the State Council and various provinces, autonomous regions and municipalities shall be done in accordance with the provisions of Article 4 of the Tobacco Patent Sales Law. For cities and counties which do not have administrative departments in charge of tobacco patent sales, the departments of the cities and counties in charge of tobacco patent sales shall take charge of such rules under dual leadership of the tobacco patent sales administrative departments in charge at the next higher level and the people's governments at the same level, with the tobacco patent sales administrative departments in charge at the next higher level to assume the main leadership.

Article 5 The State shall control over the tar contents of cigarettes and cigars and major additives to cigarettes and cigars. Tobacco products manufacturers should not use harmful additives and colorants in violation of the ralated provisions by the State.

CHAPTER TWO TOBACCO PATENT SALES LICENSES

Article 6 Application for tobacco patent sales licenses shall be required according to the provisions of the Tobacco Patent Sales Law and the provisions of this set of rules for producing and handling wholesale and retail sale of tobacco products subject to patent sales and for handling imports and exports of such products and for handling purchase and marketing of foreign tobacco products.
Tobacco Patent sales licenses are divided into:
(1) Tobacco Patent Production Enterprise License;
(2) Tobacco Patent Wholesale Enterprise License;
(3) Tobacco Patent Retail Sale Enterprise License;
(4) Special Tobacco Monopoly Business License;

Article 7 The following requirements shall be met in obtaining Tobacco Patent Production Enterprise Licenses:
(1) To have adequate amount of funds for producing the patent tobacco products;
(2) To have the technology and equipment for producing the patene tobacco products;
(3) To adapt to the requirements of the State industrial policies for the tobacco industry; and
(4) To adapt to other requirements as provided for by the State Council department in charge of tobacco potent sales.

Article 8 The following requirements shall be met in obtaining Tobacco Patant Wholesale Enterprise Licenses:
(1) To have adequate funds for wholesale of patent tobacco products;
(2) To have adaquate operational site and personnel;
(3) To conform to the requirements of the distribution of patent tobacco wholesale enterprises; and
(4) To conform to other requirements as provided for by the State Council department in charge of tobacco patent sales.

Article 9 The following requirements shall be met in obtaining Tobacco Patent Retailsales Enterprise Licenses:
(1) To have adequate funds for retailsale of patent tobacco products;
(2) To have the fixed site for business operations;
(3) To conform to the requirements of the distribution of patent tobacco retailsales enterprises; and
(4) To conform to other requirements as provided for by the State Council department in charge of tobacco patent sales.

Article 10 The following requirements should be met for obtaining Tobacco Patent Sales Enterprise Licenses:
(1) To have corresponding funds for handling tobacco and related products patent sales;
(2) To have a fixed site and adequate professional personnel for business operation;
(3) To conform with the rational distribution of tobacco patent retail sales enterprises; and
(4) To conform with other requirements as provided for by the State Council department in charge of tobacco patent sales.

Article 11 Administrative department in charge of tobacco patent sales under the State Council shall be responsible for issuance of licenses and administration of patent sales of tobacco products and transport of such products according to the Tobacco Patent Sales Law and the provisions of this set of regulations.

Article 12 In applying for a license for the production of tobacco products for patent sales, an application should first of all be filed with the administrative departments in charge of tobacco patent sales of the province, autonomous region or municipality (hereinafter referred to as provincial level), for an examination comments and submitted to the administrative department in charge of tobacco patent sales under the State Council for approval and issuance of the license.

Article 13 In applying for licenses for wholesale of tobacco patent products for trans-provincial, autonomous regional or municipal operations, an application should be first of all filed with the provincial level administrative departments in charge of tobacco patent sales for examination and comments and then submitted to the administrative department under the State Council in charge of tobacco patent sales for approval and issuance of the license.
In applying for a license for wholesale of tobacco patent sales products within a province, autonomous region or municipality, an application should first of all be filed with the administrative departments in charge of tobacco patent sales in its domicile for examination comments and then submitted to the provincial level administrative departments in charge of tobacco patent sales for approval and issuance of the license.

Article 14 In applying for a license for patent retail sales of tobacco products, the provisions of the Tobacco Patent Sales Law shall apply.

Article 15 In applying for a business license for special tobacco patent sales for import and export of tobacco patent sales products or sales of foreign patent sales tobacco products, an application should first of all be filed with the provincial level administrative departments in charge of tobacco patent sales for examination and comments and then submitted to the administrative department under the State Council in charge of tobacco patent sales for approval and issuance of the license.
In applying for a special business license for sales of duty-free foreign tobacco patent sales products within the Customs control areas, an application should first of all be filed with the administrative department in charge of tobacco patent sales in its domicile for examination and comments and then submitted to the provincial level administrative department in charge of tobacco patent sales for approval and issuance of the license.

Article 16 Organs responsible for issuance of tobacco patent sales licenses should, regularly or irregularly check enterprises or individuals that have obtained such licenses.
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