<strong>China: STMA Reports Results of Cyclic Use of Cigarette Packing Cases in April</strong>

The State Tobacco Monopoly Administration (STMA) – the regulator of China's tobacco industry – issued on May 19 a report on progress in fulfillment of the work of cyclic use of cigarette packing cases by the tobacco industry of China in April, and raised new requirements for the work hereof in a next period of time.

The report pointed out that in April, the tobacco industry kept promoting the work of cyclic use of cigarette packing cases, with relatively good results of fulfillment of the relevant work. Compared with the previous few months, the quantity of cigarette packing cases in cyclic use by tobacco manufacturing enterprises increased relatively sharply. In the month, commercial enterprises of the tobacco industry returned a total of 6.2196 million cigarette packing cases to manufacturing enterprises of the tobacco industry in the corresponding provinces (including autonomous regions and municipalities directly under the Central Government). In April, the quantity of cigarettes produced by manufacturing enterprises with cyclic use of cigarette packing cases reached a high of 814,900 cases (40.745 billion cigarettes), an increase of 212,100 cases (10.6 billion cigarettes) over March, which meant the fulfillment in just a single month of 8.15 percent of the annual cigarette packing cases cyclic use target for the whole year.

In April, the proportions of cigarette packing cases returned by commercial enterprises of the tobacco industry in Fujian, Anhui and Shaanxi Provinces were relatively high, and manufacturing enterprises of the tobacco industry there achieved relatively good results in fulfilling their tasks hereof.

From January to April, the proportions of cigarette packing cases returned by commercial enterprises of the tobacco industry in Fujian, Shaanxi, Anhui, Zhejiang and Guizhou Provinces were in excess of 80 percent, and manufacturing enterprises of the tobacco industry there made relatively rapid progress in fulfilling their tasks hereof.

The report mentioned that the provincial-level tobacco manufacturing enterprises in Yunnan, Sichuan, Chongqing, Gansu, Qinghai, Jiangsu, Anhui, Shanghai, Tianjin and other regions have actively conducted the work of cyclic use of cigarette packing cases involving neighboring provincial-level regions, making exploration in gaining experience in launching the work of cyclic use of cigarette packing cases among neighboring provincial-level regions.

The report required that in a next period of time, commercial enterprises of the tobacco industry need to further reduce losses from opening packing cases, and improve the quality and increase the proportion of turns; manufacturing enterprises of the tobacco industry need to promptly make progress in fulfilling the tasks of cyclic use of cigarette packing cases; all manufacturing enterprises of the tobacco industry need to appropriately adjust their standards for cyclic use of cigarette packing cases; the process of dispensing in casing shall be cancelled; arrangements shall be made for using cigarette packing cases returned to the maximum extent; and tobacco manufacturing enterprises applying manual packing shall launch cyclic use of cigarette packing cases by 100 percent. Enditem