Legal basis: People's Republic of China (PRC) Tobacco Monopoly Law.
Article 24 Enterprises that produce cigarette paper, filter rods, cigarette tow and special machinery for tobacco must report to the tobacco monopoly administrative department of the State Council for approval and obtain the license of tobacco monopoly production enterprise. The term "special tobacco machinery" as mentioned in this Law refers to the whole machine of special tobacco machinery.
Twenty-fifth cigarette paper, filter rods, cigarette tow, tobacco machinery production enterprises shall organize production in accordance with the plan of the State Council tobacco monopoly administration department and the order contract signed with tobacco products production enterprises.
Article 26 Enterprises that produce cigarette paper, filter rods, cigarette tows and special machinery for tobacco can only sell their products to tobacco companies and tobacco products production enterprises that hold tobacco monopoly production enterprise licenses.