Tobacco producers, attention!

Licenses for production of tobacco products are issued only to business entities that, at the time of submitting application for issuance of license, are the owners or, on other grounds not prohibited by the law, own and/or use premises and equipment that ensure full technological cycle of tobacco production, including production of tobacco mixtures, cigarette workshops, provided that use for production of such premises and equipment is carried out by only one business entity (Part 4 of Article 3 of the Law of Ukraine № 481/95-VR as of 19.12.1995 "On state regulation of production and turnover of ethyl, cognac, and fruit alcohol, alcoholic beverages, tobacco products, liquids used in electronic cigarettes and fuel" (hereinafter – Law № 481)).

Full technological production cycle is a set of premises, technological and other equipment, relevant technological processes that ensure processing of raw materials into products ready for sale to the final consumer, as well as laboratories (own or involved on a contractual basis in cases provided for by the Law № 481, accredited according to legislation (Clause 20 of Article 1 of the Law № 481). 

Requirements for the full technological cycle of tobacco products production (hereinafter – Requirements), approved by Order of the Ministry of Agrarian Policy and Food of Ukraine № 13 as of 04.01.2023, which was registered in the Ministry of Justice of Ukraine on 15.02.2023 under № 286/39342 (hereinafter – Order № 13), will enter into force six months after its official publication, namely from September 3, 2023.

Requirements for the full technological cycle of tobacco products production apply only to production of cigarettes (codes 2402 20 90 10, 2402 20 90 20 according to Ukrainian classification of products of foreign economic activity) and are mandatory for all business entities involved in the economic activity of such products production.

Business entities have a right to use, in addition to equipment specified in Paragraph 3 of Requirements, other types of equipment for the tobacco products production.

At the same time, before obtaining license for the tobacco products production, information about equipment for industrial production of cigarettes, which is used by the business entity and belongs to the product subcategory 8478 10 00 00 according to Ukrainian classification of products of foreign economic activity (equipment for preparation or processing of tobacco), must be included in the Unified state register of equipment for industrial production of cigarettes in manner established by the law.

Business entities that, on the date of entry into force of Order № 13, received and have valid licenses for tobacco products production, within one month from the date of its entry into force, must bring a set of premises, technological and other equipment in compliance with Requirements approved by this Order, relevant technological processes that ensure processing of raw materials in tobacco products, ready for sale to the final consumer (Paragraph 2 of Order № 13).