China’s accession to the WTO, the international trend of the domestic market is facing, how to integrate the Chinese tobacco industry, bringing it to its natural development path should be, thinking that is a big problem.
First, the WTO impact on China’s tobacco industry and opportunities
* China’s tobacco industry and commitment to the implementation of the following provisions:
Tobacco and its products, attributable to agricultural areas, tobacco machinery, tow, cigarette paper and other goods belonging to the general merchandise trade areas. Therefore, the tobacco monopoly commodities is well received by WTO “Agreement on Agriculture” of the constraints, but also by the WTO “rules of the general merchandise trade” norms.
1, gradually reduce tariff barriers and quota control
Cigarettes: 49% is bound rates committed in 2004 to 25%;
Tobacco: are bound rate of 28% to 10% in 2004 and was joined that year abolished the quota restrictions on imported tobacco;
Of cellulose acetate: current bound rates of 9% to 3% in 2004;
Cigarette Paper: bound rates are 32.5% to 7.5% in 2005;
Cigarette manufacturing equipment: the current bound rates of 10.4% to 5% in 2004 and removed in two years a particular tender;
Tobacco testing instruments: is bound rates of 12% to 0% in 2003;
The cigarette pack equipment parts: the current bound rates of 12%, reduced gradually to 10%.
Two, laws, regulations and administrative requirements to implement non-discrimination principle
First, China has promised that all laws, rules and regulations and other administrative requirements to comply fully with the producer of products and imported products should practice non-discrimination principle.
Second, China’s commitment to the next level in the country and take measures to amend and repeal not meet the operational requirements of WTO laws, regulations, rules and other administrative action, to adapt to domestic sales, transportation, distribution, service needs, consistent with GATT national treatment (the equivalent of China’s WTO commitment to national treatment, meaning: First of all the production, sale and purchase of raw materials for the production, all national treatment; second is in production facilities and the availability of factors of production in terms of , all national treatment).
3 licensing process requirements
Commitment to a “unified licensing requirements of cigarettes to a permit can sell all cigarettes, regardless of country of origin, and to remove point of sale on the import of products of any other restrictions, such as CNTC Chinese tobacco companies to set limits, for cigarettes, China can use the two-year transitional period to fully unify the licensing requirements, since the accession, in the two-year transitional period, sales of imported cigarettes, the number of retail outlets in China have substantially increased throughout the territory. ”
4, other restrictions:
The tobacco industry not to be treated as exceptions to the industry, there are the following: the other is to abolish quotas and Jin Zhi arbitrary restriction on trade; second is to reduce and limit the price of government subsidies; three methods in a transparent and predictable implementation of import licensing; Fourth, service and investment gradually relax control.
WTO aims to achieve trade liberalization, removal of trade barriers and trade discrimination (Government of abstract administrative acts, etc.);
WTO, the main competition is the enterprise, market competition and non-government;
WTO obligations subject is government, all the legal responsibility borne by Government;
WTO’s core principle is the principle of non-discrimination and equal national treatment principle;
WTO’s contribution to the way to all members of the legal agreement;
The benefits of WTO to China, but has been market access conditions and the improvement of competitive market conditions;
“Follow the rules, opening up the market” is a prerequisite for us to adapt to WTO.
* Entry into WTO on the impact of tobacco monopoly commodities market
China is the world’s tobacco production and marketing power, in cigarettes, tobacco production and sales accounted for about one third of the world’s total. Join the WTO, due to tariff reduction and phasing out of non-tariff barriers by WTO “Agreement on Agriculture”, and general merchandise trade rules, norms and constraints, coupled by the “unified licensing requirements of cigarettes,” the regulation, China’s tobacco industry will subject to a certain degree of impact and influence.
One cigarette market: This is mainly affected by the lowering of tariffs and the “cigarette licensing requirements unity” effect. , The high cost of foreign cigarettes in price and may gradually gain a competitive advantage, as the “retail license” and “special retail license,” the merger, suggesting more households, retailers hawking cigarette smoke outside, but not investigated China’s tobacco monopoly of the domestic market, the market share of challenges.
Second, the tobacco market: according to the average tariff reduction from agricultural products to measure, China’s imports of high-end tobacco sales price per ton to be reduced by 1 million from about a decrease of 15%. China’s production of high-grade tobacco in the price of comparative advantage will gradually disappear, while the inferior tobacco, although in the short term, been able to maintain a price advantage, but long-term trend, the price of comparative advantage will gradually decrease.
Third, the tobacco machinery market: the cigarette pack as the host and spare parts import tariff reduction and phasing out non-tariff measures, tobacco machinery demand and effective supply of domestic products will further highlight the contradictions, smoke and orderly control of imports more difficult, my hood manufacturing industry will face a severe test.
Fourth, the cigarette paper market: Sales of imported high-grade cigarette paper prices from the current 3.4-3.7 million / ton down to 2.7-2.9 yuan / ton, close to some domestic enterprises current price levels. But the domestic cigarette paper cigarette paper in particular, high-grade quality and technology compared with the imported cigarette paper there is a certain gap between the cigarette paper imports after WTO entry will further squeeze and compete for high-grade cigarette paper plate market share of the domestic cigarette paper business have some impact.
5 is a cigarette tow Market: After accession to the WTO as cellulose acetate tow for cigarette reduction in tariff rates, import vinegar fibrils beam current selling price of 3.75 yuan / ton, after the tariff reduction in sales of imported vinegar fibrils beam price dropped to 34,200 yuan may / ton, and fiber production in Southern vinegar selling prices were flat beam fibrils than Kunming fiber, bead-fiber low sales price per ton is about 1,000 yuan. Therefore, domestic and imported vinegar vinegar fibrils fibrils beam between beam faces price competition.
* Entry into the impact of tobacco management system
First, the administrative department of tobacco monopoly administration to further standardize the way enterprises. Join the WTO, China is facing “the rules, open markets,” the commitment, as the tobacco industry should be the sole basis for the competent authority “Tobacco Monopoly Law” and “Implementing Regulations on Tobacco Monopoly,” given the authority to carry out the administration and industry management. Can not overstep their authority and its own way, it can not perform their duties and compromise. The act, should actively act, not delay the development of the industry time; should not act, can not act, can not infringe the right of companies making their own decisions.
Second, industry management and business system needs further reform. China’s entry into WTO, the tobacco industries, WTO related agreements, bilateral and multilateral agreements and the “Tobacco Monopoly Law” in parallel, China’s tobacco industry, the various provisions and measures must be adapted accordingly. But now, Chinese tobacco industry and taxation, planning, investment, import and export control in some of the specific regulations and management practices heavier administrative interference colors, and the WTO provisions and requirements of a large gap. All the rules of the establishment of WTO are almost all the enterprises as the main premise of free trade, and government administrative interference in enterprises subject to limitations and restrictions. In view of this, the industry after WTO entry to management and methods adjusted accordingly.
Third, the administrative system and economic operation mechanism requires further innovation. “Unified leadership, vertical management, franchised monopoly” of the state tobacco monopoly system is the tobacco industry to achieve sustained, stable and healthy development of the new situation. It should be noted, in particular the practice of the process at this stage neither the Chinese tobacco monopoly system to achieve “state monopoly” of the essential requirements of the market mechanism does not give full play to the role. Regional blockade is serious, yet form a unified national tobacco orderly big market, and these requirements with the WTO principles of free trade there is a big contrast. Therefore, China’s accession to WTO, the existing tobacco system needs further reform, the main approach should be further introduce and improve the market competition mechanism, and gradually establish a socialist market economy of the tobacco market system.
* WTO entry to China provides opportunities for the development of tobacco
One is conducive to China’s tobacco industry to expand the international market. Chinese cigarettes, tobacco production rank first in the world, but in the international tobacco trade market share is small. Join the WTO, according to the principles of MFN and national treatment, China’s tobacco products to enjoy in the 135 Parties to the multilateral, unconditional, stable, long-term MFN, will greatly improve the international environment for China’s tobacco trade, the Chinese tobacco participation in international competition in the market to provide more and broader opportunities, factors such as low labor costs, as long as the tobacco companies to lower production costs can create better products, cost advantages can be in stronger competition in international markets ;
Second, is conducive to a unified, open, competitive and orderly big market. China is facing “the rules, open markets,” “fair trade, free competition” and “non-discriminatory trade principles”, will lead to removal of its first regional barriers to the domestic market and establish a large flow of the market system, in a fair competition to achieve survival of the fittest, who can eventually breed in domestic and international market to compete with the multinational tobacco companies the advantages of enterprise;
The third is conducive to China’s tobacco companies to improve management and speed up technological progress. Under international competitive pressures, the Chinese tobacco industry will be possible to absorb advanced technology, improve management, strengthen the scientific and technological research, improve product quality and product technology content, along with tobacco, cellulose acetate tow, cigarette tray paper, tobacco machinery and research and testing instruments such as lowering of import tariffs, will be able to reduce the cost of cigarette production, technological upgrading of enterprises, and equipment levels will be strengthened and improved;
Fourth, help accelerate China’s tobacco administration system and the pace of transformation of enterprises. Can draw on foreign management and experience in regulating the market system, speed up institutional reform;
5 is conducive to China’s tobacco industry truly become market competitors. The formulation of WTO rules of the market is the enterprise market as an independent subject is the prerequisite for defining the legitimate competition in the market position of the subject, directly involved in market competition for businesses providing a broad battlefield.
Second, the Chinese tobacco difficult to adapt to the overall competitive situation requires
Tobacco has long been a closed domestic market based on the survival and development. Such as 1995-2000, China’s exports account for its production of cigarettes accounting for 1.36% of total imports accounted for the total market is 0.05%. In the global cigarette market, although sales of cigarettes over the same period China’s share of global cigarette sales volume accounted for 30.9% of the total, but the total amount of import and export share of total world imports and exports of cigarettes was only 2.9%. Can be seen, although the scale of China’s domestic cigarette market, but its very low degree of dependence on foreign trade, the Chinese tobacco companies involved in global competition and level of ability is also very lacking.
However, the Chinese tobacco market, the lack of competitiveness in the international situation, the interests of their domestic market as their reason for being disorderly competition.
Although the tobacco industry in China is of the “unified leadership, vertical management, monopoly franchise,” the management system, but the reality is that the “local monopoly, market segmentation, various into one.”
* Judging from the level of internal management
Internal management system, although after 1985 formed a production and supply, human, financial, trade within the focus integrated management system, in cigarette production and circulation despite a unified command organization in the exclusive after-tax profit allocation is concerned, although also adopted a centralized model used, but the whole industry is still a relationship between the administration, not the formation of asset management relationship. State tobacco monopoly administration under the management of subordinate enterprises are mainly administrative relations, production and operation of the command is the executive command, more than 2,300 businesses are independent economic entities, when the tobacco industry’s “public policy” to have a favorable, then the letter I agree; negative, then disregarded; be bound, then raised the “local interest” excuse.
* From the stakeholders point of view with the administration of the main contradictions
The state tobacco monopoly’s intention to implement the “meet the people’s consumption, increase state financial accumulation.” However, in practice, because of the state tobacco tax system does not make special adjustments, and other sectors of tax payment, tax treatment of the same channel, making “the State Tobacco Monopoly Administration” and “local income tax on tobacco,” the formation of a contradiction. Namely: as a national tobacco monopoly administration shall be by “unified leadership, vertical management, franchised monopoly” to achieve the maximum benefits of tobacco and administrative integration; and as vested interests in tobacco tax revenue local governments, but their from local interests, their own way.
* Judging from market conditions
State monopoly of the tobacco industry has actually evolved into the local monopoly franchise, local protectionism and market segmentation serious. Some provisions of the property must be sold tobacco; some market barriers to foreign tobacco; some practice relationship selling; also use the market to engage in “rent-seeking.”
* From the areas of tobacco production structure, corporate structure and product structure point of view
According to statistics, there are 27 provinces (autonomous regions and municipalities) planting tobacco, except Tibet and Qinghai are built outside his factory, tobacco production in the regional structure similar to the rate of 90%. At present, 146 total size of the tobacco plant (including the abolition of the legal status although it is still open production of tobacco factory). Annual output of more than 60 million cases are 11, its market share of 34%; 30-60 million cases a total of 27, the market share of 33.1%; 10-30 million cases a total of 45, the market share of 25.6%; 10 million cases are below 63, the market share of 7.3%. At present, a total of 1181 cigarette brands on the market in circulation, the average size of each grade of 2.84 million cases. Tobacco production areas in terms of structure, or corporate structure and product mix perspective, the Chinese tobacco are more scattered, which is the overall pattern of world tobacco formed a strong contrast, not suited to international competition after China’s accession to the requirements of an increasingly fierce.
* From the trend of local legislation on tobacco monopoly point of view
At present, about nearly half of the provinces (autonomous regions and municipalities) to implement the tobacco monopoly local legislation. Or on behalf of the provincial government to issue regulations; or on behalf of the provincial People’s Congress promulgated local regulations. The existing implementation of the “Tobacco Monopoly Law” and “Tobacco Monopoly Law Implementation Regulations” side, but also to protect the local, block market side, where the tobacco monopoly to set legitimate basis.
Therefore, overall, our lack of tobacco industry efforts to achieve an overall basis. China’s tobacco industry as if you do not take the initiative and seek to adjust its internal management system, restructuring of the State Tobacco Monopoly is not the dignity, not in a timely manner so that through the mechanism of survival of the fittest advantage of enterprise development and growth, not in time to adjust fiscal policy to eliminate regional blockade and the impact of market segmentation, China the tobacco industry after joining the WTO, under the strong impact, it will be difficult to resist, will bring revenue to the state a great loss.
Third, the Chinese tobacco is wait for us to implement integrated
* Global cigarette production, cigarette exports and market share of major transnational tobacco companies
Currently, the world’s 132 countries and regions of production of cigarettes. The total output of 111.67 million cigarette boxes (50 000 / box). One major producing countries: China: 33.39 million boxes, the United States: 11.9 million boxes, in Japan: 550 million boxes, Russia: 545 million boxes, Germany: 425 million boxes, the United Kingdom: 300 million boxes, Indonesia: 496 million boxes, the Netherlands: 257 million cases, Brazil: 265 million boxes, Turkey: 239 million cases, India: 230 million cases, South Korea: 210 million boxes, Poland: 195 million boxes, Spain: 158 million boxes, Philippines: 136 million boxes, Egypt: 135 million boxes, Ukraine: 122 million boxes, Pakistan: 105 million boxes, Italy: 100 million cases, Canada: 100 million cases.
Currently, the global cigarette exports was about 20 million boxes, the main exporting countries: the United States, Britain, Germany, the Netherlands, Brazil; imports most countries: Japan, Russia, France, Italy, Saudi Arabia, Ukraine.
Philip Morris Companies: Cigarette sales in 2001 totaled 18 million cases, accounting for 17% of global market share;
British American Tobacco: cigarette sales in 2001 totaled 16.5 million cases, accounting for 15.3% global market share;
Japan Tobacco Companies: Cigarette sales volume in 2001 to 900 million cases, accounting for 8.3% global market share;
Imperial Tobacco: plus post-acquisition profits is the U.S. tobacco company, currently about 3.59 million boxes total sales, accounting for 3.3% of global market share.
Transnational tobacco companies over four total production of cigarettes sold 47.09 million cases, accounting for 44% of global market share. In addition Lei Nuoshi 193 million cases of tobacco companies and tobacco companies Jialai He almost 100 million cases, the international tobacco companies account for several major global market share of nearly 50%.
However, these multinational tobacco products sales in the parent country is very limited:
Philip Morris’s sales in the United States its global sales of only 24% of the total;
British American Tobacco’s sales in the UK its only 1% of total global sales;
Japan Tobacco’s sales in Japan accounted for 50% of total global sales;
Imperial Tobacco is the U.S. tobacco company + profits in its UK sales only account for 14% of total global sales.
These data suggest that: Kuaguoyancao company’s products most Xiaoshou 到 international market, each Jia multinational companies have Chongzu of Liang 烟草 to Jizhong Qiangzhanmouyi regional markets (including China cigarette market).
As Russia, Japan, France and other cigarette importer imports nearly saturated, the world’s major tobacco company wants to further expansion, must be targeting the China market, this will be their first choice to pursue development. Now, several major multinational tobacco companies for the Chinese tobacco market characteristics, research and development strategy and marketing strategy development for the Chinese consumer tastes of cigarettes. Once the conditions are ripe, the major transnational tobacco companies will “Swagger horse” “Central Plains.”
* The global tobacco industry since the nineties shares the twentieth century, holding, acquisition, merger events
In 1991, the German interest is the acquisition of Slovenia Ljubljana U.S. tobacco companies;
In 1991, the Philip Morris cigarette factory buy most of Hungary Eger controlling;
In 1992, the Philip Morris cigarette plant holding the Czech Republic’s largest;
In 1992, British American Tobacco continue to rise in the tobacco industry, the implementation of the Eastern European market, the company’s first acquisition, the acquisition was Hungary’s largest cigarette factory Pecsi;
In 1993, investors were holding Philip Morris cigarette factory Krasnodar in Russia, Lithuania, Klaipeda tobacco companies and tobacco companies Almaty, Kazakhstan;
In 1993, Germany’s interest that the United States acquired the international tobacco companies in Slovakia Slovakia;
In 1993, the United States Seita tobacco company entered into an agreement with Japan to jointly develop Gitanes cigarettes;
In 1994, Philip Morris Ukraine Charkov investment holding cigarette factory;
In 1994, Li Cima company funded the acquisition of Ukraine and Kiev Cherkassy cigarette factory cigarette factory most of the equity.
June 1996, acquisition of Rothmans cigarette factory, Switzerland FJBurrus;
In 1996, Philip Morris shares investment Poland’s largest tobacco company – Zaklady Przemyslu Tytoniowegow Krakowie tobacco companies;
In 1997, Philip Morris tobacco company’s shares of industrial companies of Portugal;
In 1997, Altadis Nanyang Brothers Company and the Hong Kong companies to set up a joint venture;
In 1997, British American Tobacco Mexico repurchase modern tobacco industry, British American Tobacco in the twentieth century, before the mid-eighties had occupied most of the equity of the company, but since the mid-eighties Mexican industrial group acquired the company Most of the shares;
August 1997, Philip Morris put it in Mexico Cigatam shares from 29% to 50%;
December 1997, the Turkish state-owned tobacco company Tekel held Akhisar of government stake in cigarette factory sold to British American Tobacco, also to the two other best-selling cigarette brands outside the aroma production and marketing rights to sell to the British American Tobacco;
December 1998 BAT acquired Rothmans Inc.;
In 1998, Imperial Tobacco’s acquisition of the Netherlands from the cigarette group – Douwe Egberts Van Nelle company;
In 1998, the German Reemtsma cigarette factory financed acquisition of Russian Volograd most of the shares of the same year, the German tobacco manufacturers in Kyrgyzstan and Kazakhstan to establish a tobacco factory;
May 1999, Imperial Tobacco’s acquisition of British American Tobacco New Zealand and Australia in the cigarette factory;
May 1999, Japan Tobacco Inc. acquired Leinuo Shi’s overseas investment business;
October 1999, France and Spain Tabacalen Seira joint venture company set up Altadis companies;
In 1999, the profit share of U.S. corporate investment in Cambodia Paradise majority of the shares of tobacco companies;
In 1999, the German subsidiary of interest is the U.S. tobacco company funded the acquisition of Ljubljana Macedonia Tutunski Kombinat Skopje (TKS) 80.2% stake in cigarette factory;
May 1999, BAT acquired 7.41 million pounds investment Tvomica Duhana Zadar Croatia, 80.5% of the shares of tobacco companies;
May 1999, the Austrian tobacco company’s acquisition of the Swiss match cigarette business, making it the Swiss cigarette market share of 45% market share;
In 2000, Imperial Tobacco’s acquisition of Belgium’s largest cigarette manufacturer from – Baelen Group;
October 2000, BAT acquired only doing business primarily in Canada, 58.5% of the shares Lnasco company, before that, Lnasco company has been selling non-tobacco businesses;
June 2000, Gallaher acquired the company from Brooke Liggctt-Ducar cigarette factory, the plant is Russia’s largest supplier of cigarette market in 2000, its cigarette products take 17% of Russia’s cigarette market share;
October 2000, Altadis acquired the company funded the majority of the shares South Korea’s KITCO company, together with the acquisition of the Omar Sharif cigarettes;
May 2001, Imperial Tobacco acquired the French company Bollore funded 75% of the shares of tobacco companies;
June 2001, Gallaher Tobacco Company funded the acquisition of Austria;
August 2001, the Vietnamese government agreed to invest 40 million U.S. dollars British American Tobacco and tobacco companies in Vietnam to set up a tobacco joint venture enterprise in Vietnam;
November 2001, Gallaher Holdings (holds 99.23% stake) is a US-German interest in Ukraine’s Reentsna-Cherkassy Tyutyunova cigarette factory;
December 2001, Renault acquired Santa Fe Natural Tobacco Company;
In 2001, British American Tobacco preemptive investment to its original possession Lu look up state-owned tobacco company’s shares from 47% to 70%, making Lu look up to the national development bank only has the company’s remaining 30% stake in British American Tobacco Holdings in the China’s tobacco industry;
March 2002, Imperial Tobacco announced that it invested 5.221 billion euros acquisition of Reemtsma, Germany 90% of the shares, thereby controlling the company.
* From the above we can see a large M & A events, transnational tobacco companies not miss any opportunity for development. More reforms are seeking to develop integrated source of their power.
However, we look back on tobacco in China implemented the “merger and restructuring”, the original re-dozen regional tobacco group, is now depleted. In the enjoyment of the state, “Group” after the preferential policies, have parted ways. , Was also supports the tobacco group, some seemingly harmonious, and some own way, as well as the arbitrarily arranged, basically not form together. Not only that, but also in some places to take the “back of the weak strong”, “large back small” approach to organizational restructuring in order to avoid closure of a small tobacco factory implementation of the policy, which is the acquisition of international tobacco sharp control.
• How to integrate the Chinese tobacco industry, for now, first, to reform the tobacco tax system approach to the integration of tobacco, tobacco monopoly system to achieve the tobacco tax system with the same orientation. Second, the tobacco tax system difficult to change in circumstances, to take “positive monopoly policy,” active change; should grasp the big business, big markets, big brands of key, active and realistic; should seize the tobacco program management system and inconsistency of the market economic system, active novelty; should nurture enterprises have become market competitors, their own good. May well be an integration of the Chinese tobacco industry is an effective way.
• Take “positive Monopoly Policy” initiative for change
High taxes on tobacco products, the national implementation of “prohibitive” policy. Control “prohibitive” policy the most competent national authorities should be the central finance department, this is Japan, the practice in practice. In Japan, the state instructed the Ministry of Finance on the implementation of the absolute authority of the management of Japan Tobacco. Ministry of Finance on behalf of the Government of Japan has maintained Japan Tobacco Corporation’s outstanding shares for more than half the total number of shares, the actual holding two-thirds. Japan Tobacco selection or dismissal of directors, supervisors, changes constitution, distribution of profits, the merger dissolved, to develop annual business plans and management of tobacco or any other cause than to go through the Minister of Finance’s approval before commencement; Ministry of Finance considers it necessary, Japan Tobacco companies can make business-related executive orders; Ministry of Finance to regulate the wholesale price of tobacco and implement a unified national price; other cigarette retail permit the Ministry of Finance has approved the import permit and approval of cigarettes.
China may wish to follow the example of the management system of Japan Tobacco.
The implementation of both the world’s tobacco monopoly of the state, but also whether the monopoly system, strict management of the State, there are first introduced to abolish the monopoly of the state monopoly, no set style. In fact, China, the United States, Japan, representatives of the three forms.
China is the implementation of the national tobacco monopoly, there is now “Tobacco Monopoly Law” and “Tobacco Monopoly Law Implementation Regulations” as the cornerstone of the State monopoly in tobacco production, supply, human, financial, and other aspects of the implementation of domestic and foreign trade monopoly management, but interest make this state monopoly was split.
The United States are no monopoly system, strict management of the country. In fact, most countries in this category. United States, “Tobacco and Quarantine Law” provisions of the tobacco market in the form of strict trade order. July 2, 1986 through the “tobacco monopoly Law,” designed to make U.S. tobacco industry, given its dominant position in the world market. U.S. tax policy on tobacco use and reasonable to maintain the healthy development of the tobacco industry. It’s tax distribution relationship: the federal government on cigarette manufacturers charge federal excise tax; the state government imposed the state cigarette excise tax wholesalers; local governments to levy local consumption tax wholesalers. Of which: 38% of the federal government, state government 54%, local governments accounted for 8%.
Japan is the first implementation of Monopoly, Monopoly after the abolition of the countries, Japan was the world’s first country to implement one of the tobacco monopoly. In 1904, Japan formally implemented “Tobacco Monopoly Law,” also set up the tobacco monopoly agency. By law, the Government of the tobacco growing, cigarette manufacturing monopoly monopoly are fully implemented (as China is now in the form of the same). In 1949, Japan issued the “Japan Monopoly Law,” monopoly under the management of the commune in the Ministry of Finance on the country’s tobacco growing, cigarette manufacturing, product sales and industry-wide human, financial, material and so a high degree of centralized management. This continued until 1985. After 1985, as the economy changes in the form of, in particular the pressure on the United States, Japan and opening the domestic cigarette market, prompted the Japanese to change the original product to take on foreign policy of import restrictions. Thus, abolition of the “Tobacco Monopoly Law” and “Japan Monopoly Law,” the official implementation of “Law of the tobacco business” and “Tobacco Corporation Law,” Japan Tobacco Monopoly Corporation reorganized as Japan Tobacco. However, Japan does not mean abolition of the tobacco monopoly administration relaxed. Such as Japan, “Tobacco Business Act” stipulates that Japan’s cigarette manufacturing exclusively for the Japan Tobacco Corporation, etc..
These three countries form of management Description: Tobacco Monopoly is not static, there are many forms to choose from, as a form difficult to control and move towards its intended for the opposite direction, have a choice to be another form of the necessary changes.
China’s tobacco monopoly against the reality of “unified leadership, vertical management, franchised monopoly” in contradiction with the tax revenue-sharing, local interests prevail in the objective reality, take the initiative to promote policy change after all the Chinese tobacco monopoly best.
One can use the “Tobacco Monopoly Law” terms need to be adjusted (changed reference to the provisions of the Criminal Code, administrative reconsideration, administrative litigation provisions cited changes in speculation, Daomaidaomai reference to changes in charges, etc.) of the machine, the face of reality, define a new form of administration under the State Tobacco Monopoly power and authority and sector management responsibilities.
This will facilitate the realization of the national monopoly intent is conducive to the healthy development of China’s tobacco industry is beneficial to participate in international competition, is conducive to breaking regional blockade.
Second, actively promote the formation of the Chinese Tobacco Corporation. This is the introduction of a modern enterprise system and the implementation of the corporate governance structure. New Economy, in the past that type of administrative requirements to air-unknown type of industry and property management practices, and non-matching-based management system, it is duplication of efforts. Group can form the backbone of enterprise integration first one, the implementation of integrated production and management. The fiscal relationship between the distribution of benefits from the finance department and local governments to make special adjustments. If the national financial sector as one of the tobacco monopoly authorities, then these problems will be effectively resolved. Moreover, the development of tobacco, the development strategy may be reasonable support to the integration of the Chinese tobacco industry has a solid and reliable foundation.
Transfer to a big business, big markets, big brands of key, active and realistic
National work conference on how to cultivate tobacco big market, big business, big brand at the deployment. Construction of a large market is required to establish and form a national unity, fair competition and orderly big market, and resolutely oppose and correct the various forms of regional blockade behavior, and actively promote the monopoly environment to meet the market requirements of economic development, the tobacco market system, efforts raise the tobacco industry to compete in international markets overall strength; support large enterprises that require us to accelerate the pace of organizational restructuring, focusing on development and growth of enterprises to create an enabling environment to encourage and support joint industrial enterprises, mergers and restructuring, promoting Daisaku strong for these companies; cultivate big brand products is the result of adjustments required to increase the intensity, compression, streamline brands, develop a number of the number of a certain size, there is a high technological content, with strong market competitiveness, by consumers welcome to the famous cigarette.
As long as the really good job and bring up the big market, big business, big brands, tobacco will have a healthy prospect.
Also, I think that cultivating big market, big business, big brands in the process, how to build and cigarette retailers form interest community context, should make efforts and seek rational distribution of benefits. For example: cigarette sales now implemented the “three lines each control” “Fang send Fen Li” type of sales approach it should consider how Shilingshoushang Hu Gu Ding’s retail sales have more income, not taking simple push Service Mode. Otherwise, over time, retailers will be tired of this service. If you can wholesale and retail profits to have a better distribution of income, both tied to a rope, will be “prospering or declining,” “loss for both sides.”
“WTO”, along with the tariff reduction and two-year transition period after cancellation of special tobacco monopoly retail license, foreign tobacco will gradually squeeze in the domestic market. Therefore, we need to establish more closely with Lingshou Hu relations as community of interest. The only way to achieve big business, big markets, big brands will have a firm foundation.
In addition, sales of cigarettes is independent of operating mode is also training a large network of businesses, big market, big brand elements.
May try to sell cigarette sales network interconnection, unified management by the head office, the provincial tobacco company shares, open to all cigarette manufacturers, to promote industry competition, in the system to ensure fair competition.
This place is conducive to rule out the intervention of “phased implementation” constitute a certain type of financial system impact, you engage in “phased implementation” I do “public canteens.” From the cigarette side-track the use of the network’s public “phased implementation” hole in, so that a benign track cigarette sales.
* Seize the tobacco program management system and market economy inconsistency, novelty initiative
Project management system in cigarette, the existing system no longer suited to the market economic system. To ensure the “bigger and stronger,” superior enterprises to adapt to the overall competition after accession to WTO requirements, planning and management system must be reformed cigarette. Cigarette in the country without changing the total scheme, reduced the proportion of annual allocation to certain provinces, regions and municipalities of the index. Meanwhile, the state planning department to cut down the index assigned to the sector authorities, by industry according to industrial development department in charge of overall planning and the cigarette industry enterprises in this part of the economic performance indicators of the level then directly assigned to the enterprise. Plan targets the tobacco industry, the country’s principal means to achieve macro-control, but the distribution of rigid past, which does not help the national macro-control goals, but instead increasingly solidified the vested interests around the tobacco and hindered effective allocation of resources.
