The State Duma approved in the first reading the state regulation of the tobacco market

The State Duma approved in the first reading a draft separate branch law, which establishes state regulation of the production and circulation of tobacco products. Now in Russia there is no separate law regulating the production and circulation of tobacco and nicotine-containing products. As a regulatory model, the Ministry of Finance proposed a system of state regulation of the alcohol market, Rosalkogolregulirovanie can give the right to control in the field of tobacco products and rename Rosalkogoltabakkontrol.

The Ministry of Finance prepared the main bill (N310882-8), as well as corresponding amendments to the Code of Administrative Offenses (N310899-8), the Criminal Code (N310855-8) and other legislative acts (N310820-8). If passed, the law will enter into force on September 1, 2023.

The document provides for licensing activities in the production and import of tobacco, nicotine-containing products and raw materials for their production, but does not introduce licensing for retail sales. The bill will oblige manufacturers to register the main equipment for production.

Production or turnover without a license may result in an administrative fine for officials in the amount of 150 to 300 thousand rubles; for legal entities – from 300 thousand rubles. up to 1 million rubles or administrative suspension of activities for a period of 60 to 90 days.

An administrative fine for the use of unregistered equipment can range from 3,000 to 5,000 rubles for citizens; for officials – from 20 to 50 thousand rubles; for companies – from 100 to 150 thousand rubles.

Criminal liability is introduced for the production, purchase, supply, storage of tobacco products, tobacco and nicotine-containing products, as well as raw materials for their production without an appropriate license, committed in large (from 100 thousand rubles) and especially large (from 1 million rubles) size. In the first case, the fine can range from 500,000 to 1 million rubles, imprisonment for up to three years. In the second case – a fine of 3 million to 4 million rubles, imprisonment – for up to five years.

Rosalkogolregulirovanie was created in 2009, among other things it issues excise stamps, licenses for the production of ethyl alcohol, alcoholic and alcohol-containing products, and the Unified State Automated Information System for recording the volume of production and turnover of ethyl alcohol, alcoholic and alcohol-containing products was also transferred to the service.

It is assumed that the adoption of a bill on state regulation of the tobacco products market will lead to reduce the volume of illegal production and circulation of tobacco products. In 2022, the Federal Customs Service seized of illicit trafficking of 82.5 million packs of cigarettes. The illegal circulation of about 17 million packs of tobacco products and more than 491 tons of tobacco raw materials worth 1.7 billion rubles was also suppressed.

According to tobacco industry participants, in 2022 the share of the illegal cigarette market increased to 13% against 1% in 2015.

Read more in the publication “b FM” “Illegal tobacco will bring to the point”.

Maria Fedotova