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REGULATIONS FOR THE IMPLEMENTATION OF THE TOBACCO MONOPOLY

Category  TOBACCO MONOPOLY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-07-03 Effective Date  1997-07-03  

Regulations for the Implementation of the Law of the People's Republic of China on Tobacco Monopoly



Chapter I  General Provisions
Chapter II  The Tobacco Monopoly Licence
Chapter III  Plantation, Purchase and Allocation of Leaf Tobacco
Chapter IV  Production of Tobacco Products
Chapter V  Sale of Tobacco Products
Chapter VI  Transportation of Tobacco Monopoly Products
Chapter VII  Production and Sale of Cigarette Paper, Filter Rods,
Chapter VIII  Import-export Trade and Foreign Economic and Technological
Chapter IX  Supervision and Inspection
Chapter X  Legal Responsibilities
Chapter XI  Supplementary Provisions

(Promulgated by Decree No. 223 of the State Council of the People's

Republic of China on July 3, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in accordance with of the People's Republic of China on Tobacco Monopoly>(hereinafter referred
to as ).

    Article 2  Tobacco monopoly means that the State practises the system of
monopoly operations and unified control over the production, sales and import-
export businesses of tobacco monopoly products.

    Article 3  The cut tobacco in tobacco monopoly products refers to
commodities in cuts, dust and granule processed with leaf tobacco, redried
leaf tobacco and leaf tobacco slices as raw materials.

    Article 4  For performance of functions, responsibilities and leadership
system of the department of tobacco monopoly administration under the State
Council and the departments of tobacco monopoly administration of the
provinces, autonomous regions and municipalities directly under the Central
Government, the provisions of Article 4 of shall
be observed. Municipalities and counties with established departments of
tobacco monopoly administration, the municipal and county departments of
tobacco monopoly administration shall take charge of the work of tobacco
monopoly within their respective administrative areas and be subject to the
dual leadership of the department of tobacco monopoly administration at the
next higher level and the People's Government at the same level, with the
department of tobacco monopoly administration at the next higher level as
the main leading body.

    Article 5  The State exercises control over the tar content in cigarettes
and cigars and main additives for cigarettes and cigars. Tobacco products
production enterprises must not use hazardous additives and pigments in
violation of the relevant provisions of the State.
Chapter II  The Tobacco Monopoly Licence

    Article 6  Anyone engaging in the production, wholesale and retail
businesses, operating tobacco monopoly products import-export businesses
and operating foreign tobacco products purchasing-marketing businesses must,
in pursuance of the provisions of and these
Regulations, apply for and obtain a tobacco monopoly licence.

    Tobacco monopoly licences are divided into:

    (1)tobacco monopoly production enterprise licence;

    (2)tobacco monopoly wholesale enterprise licence;

    (3)tobacco monopoly retail licence; and

    (4)special tobacco monopoly operating enterprise licence.

    Article 7  For the obtainment of a tobacco monopoly production enterprise
licence, the following conditions should be met:

    (1)having appropriate funds for the production of tobacco monopoly
products;

    (2)having the required conditions of technology and equipment for the
production of tobacco monopoly products;

    (3)compliance with the requirements of the industrial policy of the State
on the tobacco industry; and

    (4)other conditions prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 8  For the obtainment of a tobacco monopoly wholesale enterprise
licence, the following conditions should be met:

    (1)having adequate funds for operating tobacco monopoly products
wholesale business;

    (2)having a fixed site for the operations and necessary specialized
staff;

    (3)compliance with requirements for rational distribution of tobacco
monopoly wholesale enterprises; and

    (4)other conditions prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 9  For the obtainment of a tobacco monopoly retail licence,
the following conditions should be met:

    (1)having adequate funds for operating tobacco monopoly products retail
business;

    (2)having a fixed site for the operations;

    (3)compliance with requirements for rational distribution of tobacco
monopoly products retail points; and

    (4)other conditions prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 10  For the obtainment of a special tobacco monopoly operating
enterprise licence, the following conditions should be met:

    (1)having adequate funds for operating special tobacco monopoly products
business;

    (2)having a fixed site for the operations and necessary specialized
staff;

    (3)compliance with requirements for rational distribution of operating
foreign tobacco monopoly products business; and

    (4)other conditions prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 11  The departments of tobacco monopoly administration issue
tobacco monopoly licences and transportation permits for tobacco monopoly
products and exercise control pursuant to the provisions of Monopoly Law> and these Regulations.

    Article 12  Applicants for the obtainment of tobacco monopoly production
enterprise licences should submit their applications to the departments of tobacco monopoly administration of the provinces, autonomous regions and
municipalities directly under the Central Government(hereinafter referred
to as at the provincial level), departments of tobacco monopoly administration
at the provincial level shall examine the same and make remarks thereon and
submit the same to the department of tobacco monopoly administration under the
State Council for examination and approval and issuance of licences.

    Article 13  Applicants for the obtainment of tobacco monopoly wholesale
enterprise licences for transregional operations in provinces, autonomous
regions and municipalities directly under the Central Government should
submit their applications to the departments of tobacco monopoly
administration at the provincial level which shall examine the same and offer
their remarks thereon and submit the same to the department of tobacco
monopoly administration under the State Council for examination and approval
and issuance of licences.

    Applicants for the obtainment of tobacco monopoly wholesale enterprise
licences for operations within the jurisdiction of a province, an autonomous
region or a municipality directly under the Central Government should submit
their applications to the departments of tobacco monopoly administration of the localities wherein the enterprises are located which shall examine the
same and offer their remarks thereon and submit the same to the departments
of tobacco monopoly administration at the provincial level for examination
and approval and issuance of licences.

    Article 14  Applications for the obtainment of tobacco monopoly retail
licences shall be handled pursuant to the provisions of Law>.

    Article 15  Applicants for the obtainment of special tobacco monopoly
operating enterprise licences for operating tobacco monopoly products
import-export business and operating foreign tobacco products purchasing-
marketing business should submit their applications to the departments of
tobacco monopoly administration at the provincial level which shall examine
the same and sign their remarks thereon and submit the same to the department
of tobacco monopoly administration under the State Council for examination
and approval and issuance of licences.

    Applicants for the obtainment of special tobacco monopoly operating
enterprise licences for operating duty-free foreign tobacco products
purchasing-marketing business in customs supervision zones should submit
their applications to the departments of tobacco monopoly administration
of the localities wherein the enterprises are located which shall examine
the same and sign remarks thereon for submission to the departments of
tobacco monopoly administration at the provincial level for examination
and approval and issuance of licences.

    Article 16  Issuing organs of tobacco monopoly licences can carry out
regular or irregular inspections of the enterprises and individuals having
obtained tobacco monopoly licences. Those found to be not in compliance with
the conditions prescribed by and these Regulations
in inspections, issuing organs of tobacco monopoly licences can direct them
to suspend tobacco monopoly operations for consolidation and go so far as to
revoke their qualifications in engaging in tobacco monopoly business.

    Specific control measures for tobacco monopoly licences shall be worked
out by the department of tobacco monopoly administration under the State
Council in accordance with the provisions of these Regulations.
Chapter III  Plantation, Purchase and Allocation of Leaf Tobacco

    Article 17  The department of tobacco monopoly administration under the
State Council works out the leaf tobacco planting plan in conjunction with
the People's Governments of the provinces, autonomous regions and
municipalities directly under the Central Government concerned according to
the State plan, in accordance with the requirements of rational distribution
and the principle of using good seeds, regional grouping and standardization.

    Article 18  Leaf tobacco shall be unifiedly purchased by the tobacco
companies or their entrusted agencies according to law. The tobacco companies
or their entrusted agencies may, in accordance with requirements, set up
leaf tobacco purchasing stations(points) in areas where the State has
assigned leaf tobacco purchasing plans for the purchase of leaf tobacco.
Establishment of leaf tobacco purchasing stations(points) shall be subject
to the approval of the departments of tobacco monopoly administration at the
provincial level. No unit or individual shall purchase leaf tobacco without
approval.

    Article 19  Local departments of tobacco monopoly administration organize
the departments concerned at the same level and representatives of leaf
tobacco producers in the formation of leaf tobacco grading groups to
coordinate grading in leaf tobacco purchase.

    Article 20  Plans for State reserve and export of leaf tobacco and
leaf tobacco allocation plans shall be assigned by the planning department
under the State Council.
Chapter IV  Production of Tobacco Products

    Article 21  Establishment of tobacco products production enterprises
should be submitted by the departments of tobaco monopoly administration at
the provincial level to the department of tobacco monopoly administration
under the State Council for approval, with the acquisition of tobacco monopoly
production enterprise licences and registration upon verification and
approval at the departments of industry and commerce administration.

    Article 22  Tobacco products production enterprises must strictly
implement the production plans assigned by the State.

    Article 23  Use of stale leaf tobacco for the production of cigarettes,
cigars and cut tobacco is prohibited.

    Article 24  Cigarettes, cigars and packed cut tobacco should use
registered trademarks; applications for the registration of trademarks
should proceed with the approval documents for production issued by the
department of tobacco monopoly administration under the State Council in
accordance with law.
Chapter V  Sale of Tobacco Products

    Article 25  Enterprises with acquisition of tobacco monopoly wholesale
enterprise licences should engage in tobacco products wholesale business
within the business scope and regional boundary prescribed in the licences.

    Enterprises or individuals with acquisition of tobacco monopoly retail
licences should purchase the merchandise at local tobacco monopoly wholesale
enterprises and be subject to the supervision and control of the issuing
organs of tobacco monopoly licences.

    Article 26  Any unit or individual selling more than 50 cartons of cigarettes or cigars at a time without a tobacco monopoly wholesale enterprise
licence shall be construed as engagement in tobacco products wholesale
business without a tobacco monopoly wholesale enterprise licence.

    Article 27  No unit or individual shall sell illegally produced tobacco
products.

    Article 28  Tobacco monopoly production enterprises and tobacco monopoly
wholesale enterprises must not supply tobacco products to any unit or
individual without tobacco monopoly retail licences.

    Article 29  Cigarettes and cigars sold within the territory of China
should indicate grades of tar content and "Smoking is hazardous to your
health" in the Chinese language on the packs and cartons.

    Article 30  Whenever necessary, the department of tobacco monopoly
administration under the State Council may, in the light of the market
supply and demand, assign appropriation tasks for cigarettes and cigars
among the provinces, autonomous regions and municipalities directly under
the Central Government.

    Article 31  Sale of stale and foul tobacco products is strictly
prohibited. Stale and foul tobacco products shall be destroyed under the
supervision of the departments of tobacco monopoly administration or the
departments of administration concerned.

    Article 32  Tobacco products with counterfeit trademarks intercepted by
departments concerned according to law should be handed over to departments
of tobacco monopoly administration for open destruction pursuant to
relevant provisions of the State and sale thereof in any form is prohibited.

    Article 33  Identification, inspection and testing of tobacco products
with counterfeit trademarks shall be carried out by the tobacco quality
inspection and testing stations designated by the department of product
quality supervision and control under the State Council and the departments
of product quality supervision and control of the People's Governments of the provinces, autonomous regions and municipalities directly under the
Central Government.
Chapter VI  Transportation of Tobacco Monopoly Products

    Article 34  Tobacco monopoly product transportation permits shall be
issued upon examination and approval by the departments of tobacco monopoly
administration above the provincial level or by their authorized agencies.
Control measures for tobacco monopoly product transportation permits shall
be worked out by the department of tobacco monopoly administration under the
State Council.

    Article 35  Cross-boundary transportation of import tobacco monopoly
products, Chinese-made special-purpose tobacco machinery, cigarette tow,
filter rods and import cut cigarette paper across the provinces, autonomous
regions and municipalities directly under the Central Government should go
through consignment for shipment or shipment on one's own against the tobacco
monopoly product tranportation permits issued by the department of tobacco
monopoly administration under the State Council or its authorized agencies.

    Cross-boundary transportation of other Chinese-made tobacco monopoly
products other than Chinese-made special-purpose tobacco machinery, cigarette
tow, filter rods and import cut cigarette paper across the provinces,
autonomous regions and municipalities directly under the Central Government
should go through consignment for shipment or shipment on one's own against
the tobacco monopoly product transportation permits issued by the department
of tobacco monopoly administration under the State Council or departments of
tobacco monopoly administration at the provincial level.

    Cross-city, cross-county transportation of tobacco monopoly products
within the provinces, autonomous regions and municipalities directly under
the Central Government should go through consignment for shipment or
shipment on one's own against the tobacco monopoly product transportation
permits issued by departments of tobacco monopoly administration at the
provincial level or their authorized agencies.

    Transportation of smuggled tobacco monopoly products confisticated
according to law should go through consignment for shipment or shipment on
one's own against the tobacco monopoly product transportation permits
issued by the department of tobacco monopoly administration under the
State Council.

    Article 36  Any of the following circumstances shall be transportation
of tobacco monopoly products without tobacco monopoly product transportation
permits:

    (1)transportation of tobacco monopoly products exceeding the quantity
and range prescribed in the tobacco monopoly product transportation permits;

    (2)use of expired, altered or duplicated tobacco monopoly product
transportation permits;

    (3)without tobacco monopoly product transportation permits and failure
to provide effective certificates of local purchase of tobacco monopoly
products; and

    (4)other acts of shipment of tobacco monopoly products without tobacco
monopoly product transportation permits.

    Article 37  For transfer-customs shipment of tobacco products under
customs supervision, formalities for shipment shall be completed in accordance
with the provisions of the State relating to transfer-customs shipment.
Chapter VII  Production and Sale of Cigarette Paper, Filter Rods,
Cigarette Tow and Special-purpose Tobacco Machinery

    Article 38  Tobacco monopoly wholesale enterprises and tobacco products
production enterprises can purchase cigarette paper, filter rods, cigarette
tow and special-purpose tobacco machinery only from enterprises with
acquisition of tobacco monopoly production enterprise licences and special
tobacco monopoly operating enterprise licences.

    Production enterprises of cigarette paper, filter rods, cigarette tow
and special-purpose tobacco machinery must not sell their products to units
or individuals without tobacco monopoly production enterprise licences.

    Article 39  Purchase, sale and transfer of special-purpose tobacco
machinery must be subject to the approval of the department of tobacco
monopoly administration under the State Council.

    Catalog of the names of special-purpose tobacco machinery shall be
prescribed by the department of tobacco monopoly administration under
the State Council.

    Article 40  No unit or individual shall sell illegally produced special-
purpose tobacco machinery, cigarette paper, filter rods and cigarette tow.

    Phased-out, condemned and illegally assembled special-purpose tobacco
machinery, broken and substandard cigarette paper, filter rods and
cigarette tow as well as their bits and pieces shall be handled under the
supervision of local departments of tobacco monopoly administration and must
not be sold in any form.
Chapter VIII  Import-export Trade and Foreign Economic and Technological
Cooperation

    Article 41  For the establishment of a tobacco monopoly production
enterprise with investment from foreign businesses, recording of the project
pursuant to relevant provisions of the State can only be approved upon
examination and consent of the department of tobacco monopoly administration
under the State Counci.  

    Article 42  Operations of import tobacco monopoly products can only be
undertaken by enterprises with acquisition of special tobacco monopoly
operating enterprise licneces. Their plans of import tobacco monopoly
products should be submitted to the department of tobacco monopoly
administration under the State Council for examination and approval.

    Article 43  Duty-free import tobacco products should be stored in
customs-designated bonded warehouses, and joint control by the local
departments of tobacco monopoly administration designated by the department
of tobacco monopoly administration under the State Council and the customs
shall be stepped up. The customs shall verify and write off the quantity of duty-free import foreign tobacco products in batches against the duty-free
import plans approved by the department of tobacco monopoly administration
under the State Council.

    Article 44  Duty-free cigarettes and cigars marketed in customs
supervision zones are only for retail and special labels should be printed on
the packs and cartons as prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 45  "Exclusively for export" in the Chinese language should be
marked on packs and cartons of cigarettes and cigars exclusively for
export.
Chapter IX  Supervision and Inspection

    Article 46  Departments of tobacco monopoly administration shall conduct
supervision and inspection on the implementation of Law> and these Regulations according to law, investigate and deal with cases
of violation of and these Regulations, and
investigate and deal with acts of smuggling, trafficking of smuggled tobacco
products, counterfeiting, forgery and making inferior quality products.

    Article 47  Opening and running of tobacco monopoly products trading
markets should be subjected to the examination and approval of the department
of tobacco monopoly administration under the State Council. Tobacco monopoly
products trading markets established without examination and approval should
be banned by the People's Governments above the county level of the localities
wherein the markets are located.

    Article 48  Whenever necessary, the department of tobacco monopoly
administration under the State Council may, in the light of the actual
conditions in tobacco monopoly work, set up representative agencies in major
areas; whenever necessary, the departments of tobacco monopoly administration
at the provincial level may despatch resident staff in tobacco monopoly
products production and operating enterprises. Representative agencies and
resident staff supervise and inspect the production and operating activities
relating to tobacco monopoly products within the authorized scope of the
despatching departments.

    Article 49  In investigating and handling cases of violation of Tobacco Monopoly Law> and these Regulations, departments of tobacco monopoly
administration may exercise the following functions and powers:

    (1)inquire the parties interested, suspects and witnesses in the law-
breaking cases;

    (2)inspect the operating sites of the parties interested in the law-
breaking cases and deal with the illegally produced or marketed tobacco
monopoly products according to law; and

    (3)search, read and duplicate contracts, invoices, accounting books,
vouchers, records, documents, business correspondence and other information
related to the law-breaking activities.

    Article 50  Departments of tobacco monopoly administration or departments
of tobacco monopoly administration in conjunction with the departments
concerned may inspect and deal with activities of illegal transportation
of tobacco monopoly products in accordance with law.

    Article 51  For auctions pursuant to the relevant provisions of the State
of tobacco monopoly products confisticated by people's courts and
administrative organs and tobacco monopoly products offsetting penalties,
fines and tax money, bidders should hold tobacco monopoly wholesale enterprise
licences; bidders taking part in auctions of foreign tobacco products should
hold special tobacco monopoly operating enterprise licences.

    Auction enterprises established in accordance with law for auctioning
of tobacco monopoly products should examine and verify the qualifications of the bidders. Auctioning of tobacco monopoly products by auction enterprises
should be subjected to the supervision of the departments of tobacco monopoly
administration.

    Article 52  Monopoly administrator-inspectors of departments of tobacco
monopoly administration should wear badges issued by the department of tobacco monopoly administration under the State Council and show certificates
of inspection issued by departments of tobacco monopoly administration at the
provincial level while performing official duties.

    Article 53  Units and individuals having performed meritorious services
in reporting law-breaking cases in tobacco monopoly shall be rewarded.
Chapter X  Legal Responsibilities

    Article 54  The following provisions shall be observed in the implementa-
tion of penalties pursuant to the provisions of Article 30 of Monopoly Law>:

    (1)for purchase of leaf tobacco without authorization, a fine of more
than 20% and less than 50% of the value of the illegally purchased leaf
tobacco may be imposed, and the illegally purchased leaf tobacco shall be
purchased at the price set by the State;

    (2)for purchase of more than 1000 kilograms of leaf tobacco without
authorization, the illegally purchased leaf tobacco and illegal income
shall be confisticated according to law.

    Article 55  The following provisions shall be observed in the implementa-
tion of penalties pursuant to the provisions of Article 31 of Monopoly Law>:

    (1)for consignment for shipment or shipment on one's own of tobacco
monopoly products without a transportation permit or the quantity of which
exceeds that prescribed in the transportation permit, a fine of more than
20% and less than 50% of the value of the illegally transported tobacco
monopoly products shall be imposed, and the illegally transported tobacco
monopoly products may be purchased at the price set by the State.

    (2)for any of the following circumstances, the illegally transported
tobacco monopoly products and illegal income shall be confisticated:

    1.the value of illegally transported tobacco monopoly products exceeds
RMB 50000 Yuan or the quantity of transported cigarettes exceeds 100 pieces
(every 10000 cigarettes constitute one piece);

    2.having been subjected to penalties more than twice by departments of tobacco monopoly administration;

    3.resisting inspection according to law by supervisor-inspectors of departments of tobacco monopoly administration;

    4.illegal transportation of smuggled tobacco monopoly products;

    5.transportation of tobacco monopoly products produced by enterprises
without tobacco monopoly production enterprise licences;

    6.illegal transportation of tobacco monopoly products in disguise;

    7.evading inspection by using special vehicles in transporting tobacco
monopoly products; and

    8.other acts of illegal transportation the circumstances of which are
serious.

    (3)for the shipper who is aware that it is tobacco monopoly products
and transports the same for units or individuals without transportaton
permits, its or his/her illegal income shall be confisticated, and a fine
of more than 10% and less than 20% of the value of the illegally transported
tobacco monopoly products may be concurrently imposed.

    (4)for sending by post or bringing leaf tobacco and tobacco products to
another place in excess of more than 100% of the quantity limit set
by the departments concerned under the State Council, penalties shall be
meted out pursuant to the provision of section (1) of this Article.

    Article 56  The following provisions shall be observed in the implementa-
tion of penalties pursuant to the provisions of Article 32 of Monopoly Law>:

    (1)for production of tobacco products without tobacco monopoly production
enterprise licences, the department of tobacco monopoly administration shall
direct it or him/her to close down, confisticate the illegal income, impose
a fine of more than 100% and less than 200% of the value of the produced
tobacco products, and destroy the illegally produced tobacco products in
public;

    (2)for prooduction of cigarette paper, filter rods, cigarette tow or
special-purpose tobacco machinery without tobacco monopoly production
enterprise licences, the department of tobacco monopoly administration
shall direct it or him/her to stop production, confisticate the illegal
income, impose a fine of more than 100% and less than 200% of the value of
the illegally produced tobacco monopoly products, and destroy the illegally
produced tobacco monopoly products in public.

    Article 57  Pursuant to the provisions of Article 33 of Monopoly Law>, for operating tobacco products wholesale business without
tobacco monopoly wholesale enterprise licences, the department of tobacco
monopoly administration shall direct it or him/her to close down or stop
operating tobacco products wholesale business, confisticate the illegal
income, and impose a fine of more than 50% and less than 100% of the
value of the illegal wholesale of tobacco products.

    Article 58  The following provisions shall be observed in the implementa-
tion of penalties pursuant to the provisions of Article 34 of Monopoly Law>:

    (1)for operating import-export business of tobacco monopoly products
without special tobacco monopoly operating enterprise licences, the department
of tobacco monopoly administration shall direct it or him/her to stop the
aforesaid business, confisticate the illegal income, and impose a fine of more than 50% and less than 100% of the value of the illegal operations of tobacco monopoly products.

    (2)for operating purchasing-marketing business of foreign tobacco
products without special tobacco monopoly operating enterprise licences,
the department of tobacco monopoly administration shall direct it or him/her
to stop operating the aforesaid business, confisticate the illegal income,
and impose a fine of more than 20% and less than 50% of the value of the
illegal operations of tobacco products.

    Article 59  For units with the acquisition of tobacco monopoly wholesale
enterprise licences engaging in tobacco products wholsale beyond the business
scope and regional boundary in contravention of the provisions of the first
paragraph of Article 25 of these Regulations, the department of tobacco
monopoly administration shall direct it or him/her to suspend the operations
of wholesale business, confisticate the illegal income, and impose a fine of more than 10% and less than 20% of the value of the illegal operations of tobacco products.

    Article 60  For failure of enterprises or individuals with the acquisition
of tobacco monopoly retail licences to purchase the mechandise at local
tobacco monopoly wholesale enterprises in contravention of the provisions
of the second paragraph of Article 25 of these Regulations, the department
of tobacco monopoly administration shall confisticate their illegal income,
and may impose a fine of more than 5% and less than 10% of the total amount
of the purchase.

    Article 61  For operating tobacco products retail business without
tobacco monopoly retail licences, the department of industry and commerce
administration or the department of industry and commerce administration
on the basis of the views of the department of tobacco monopoly administration
shall direct it or him/her to stop the operations of tobacco products retail
business, confisticate the illegal income, and impose a fine of more than
20% and less than 50% of the total amount in illegal operations.

    Article 62  For sale of illegally produced tobacco monopoly products
in violation of the provisions of Article 27 and the first paragraph of Article 40 of these Regulations, the department of tobacco monopoly
administration shall direct it or him/her to stop the sale, confisticate
the illegal income, impose a fine of more than 20% and less than 50% of the total amount of the illegal sale.

    Article 63  For engagemnet in cross-province, cross-sutonomous region
and cross-municipality under the Central Government tobacco monopoly
wholesale business without authorization, without the acquisition of tobacco monopoly wholesale enterprise licences issued by the department
of tobacco monopoly administration under the State Council in violation of the provisions of these Regulations, the department of tobacco monopoly
administration shall impose a fine of more than 10% and less than 20% of the total amount in wholesale.

    Article 64  For supply of tobacco monopoly products to units or
individuals without tobacco monopoly licences in violation of Article 28
and the second paragraph of Article 38 of these Regulations, the department
of tobacco monopoly administration shall confisticate the illegal income,
and impose a fine of more than 20% and less than 50% of the total sales
amount.

    Article 65  For tobacco monopoly wholesale enterprises and tobacco
products production enterprises which purchase cigarette paper, filter rods,
cigarette tow and special-purpose tobacco machinery from enterprises
without tobacco monopoly production enterprise licences and special
tobacco monopoly operating enterprise licences, the department of tobacco
monopoly administration shall impose a fine of more than 50% and less than
100% of the value of the tobacco monopoly products purchased.

    Article 66  For failure to store the duty-free import tobacco products
in bonded warehouses for tobacco products as prescribed in violation of the
provisions of Article 43 of these Regulations, a fine of less than 50% of the
value of the said tobacco products may be imposed.

    Article 67  Failure to print special labels prescribed by the department
of tobacco monopoly administration under the State Council on packs and
cartons of duty-free cigarettes and cigars marketed in customs supervision
zones in violation of the provisions of Article 44 of these Regulations,
a fine of less than 50% of the total illegal operating amount may be imposed.

    Article 68  For auction of tobacco monopoly products by auction
enterprises without authorization, without conducting inspection and
identification of the qualifications of the bidders or refusal to accept
the supervision of the department of tobacco monopoly administration in
violation of the provisions of Article 51 of these Regulations, the department
of tobacco monopoly administration shall impose a fine of more than 20% and
less than 50% of the value of tobacco monopoly products auctioned off, and
revoke their qualifications for tobacco monopoly products auction according
to law.

    Article 69  For purchases of illegally purchased leaf tobacco or purchases
of illegally transported tobacco monopoly products according tolaw by
departments of tobacco monopoly administration in pursuance of the provisions
of Article 30 and the first paragraph of Article 31 of Law>, the purchase price shall be calculated on the basis of 70% of the
wholesale market price of the said tobacco monopoly products.
Chapter XI  Supplementary Provisions

    Article 70  These Regulations come into force as of the date of promulgation.



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