Industry Announcement Regarding Adjustments to Export Tax Rebate Policies for E-Cigarettes and Other Products

On January 8, 2026, the Ministry of Finance of China issued the “Announcement on Adjusting the Export Tax Rebate Policies for Photovoltaic and Other Products” (hereinafter referred to as the “Announcement”), declaring that the 13% export tax rebate rate for certain manufactured goods, including some e-cigarette products, will be eliminated effective April 1, 2026.

According to the Announcement, the products affected by this adjustment primarily include photovoltaic products, batteries, and e-cigarette commodities under customs commodity codes 2404120000 and 8543400090. The policy aims to guide the standardized development of related industries, prevent disorderly low-price competition, encourage enterprises to optimize their operational structures, enhance international competitiveness, and foster a fairer and more orderly market environment.

The elimination of the export tax rebate policy is expected to have a direct impact on the cost structure of the e-cigarette manufacturing sector. However, cost pressure does not stem from a single factor. Since 2024, the upstream e-cigarette supply chain has been under sustained pressure, with prices of key raw materials such as batteries, metal components, and coil atomizer generally rising, thereby increasing overall production costs.

Concurrently, e-cigarette regulations are becoming increasingly stringent worldwide, with continuously rising compliance requirements leading to significant increases in enterprises’ related certification, testing, and tax expenditure. Under the combined effect of these multiple factors, manufacturers’ sales costs have consistently exceeded expectations, and the industry’s average gross profit margin has remained low over the long term, posing severe challenges to the steady operation of enterprises and the sustainable development of the industrial chain.

To assist member companies in accurately grasping policy trends and systematically assessing the impact of costs and price fluctuations, ECCC convened a plenary meeting of its board chairs on January 14. Representatives from 34 core member units attended, engaging in in-depth discussions focused on policy interpretation and industry response strategies. Following full deliberation and consultation, the meeting unanimously adopted the following resolutions:

Uphold the baseline of compliant operations, strictly adhere to domestic and international laws, and regulatory requirements, and promote the healthy, standardized, and orderly development of the industry.

Focus on technological innovation and industrial upgrading, commit to providing global consumers with safe, compliant, and technologically advanced high-quality products, and reject market practices that rely on low prices as a competitive tool.

Reasonably optimise the export product pricing system based on cost changes and policy adjustments to ensure sustainable operational capabilities and product service quality.

It is reported that the combined production capacity of the 34 member enterprises attending the meeting accounts for over 80% of China’s total e-cigarette manufacturing scale.

As the sole national e-cigarette industry association in China, ECCC currently boasts over 1,200 member enterprises, representing the main force of China’s e-cigarette manufacturing sector. The association calls on global industry partners to jointly maintain the long-term stability and sustainable development of the industrial chain, uphold the compliance baseline, and work together to build a fair, healthy, and orderly industry ecosystem. The ECCC will continue to serve as an industrial bridge and service platform, providing enterprises with coordination support and professional services.