Tobacco trading is a monopoly, and operating without a license is illegal.

Compiled from: Shandong Legal News
 
As a special monopoly commodity, cigarettes are strictly regulated by national laws and regulations. Liu, just over 20 years old, ignored the relevant rules and, without obtaining a tobacco retail license, illegally resold cigarettes, disrupting market order. Recently, the Hanting District People's Court of Weifang City sentenced defendant Liu to five years and six months in prison for the crime of illegal business operations.

 

 
Case review
Before his arrest, defendant Liu worked at a construction company in Weifang City. One day in September 2019, while browsing a forum, Liu accidentally saw a post about purchasing cigarettes. Seeing an opportunity for profit, Liu contacted the poster. To gain benefits, starting from September 2019, without a tobacco business license, Liu purchased brand cigarettes such as Zhonghua, Nanjing, Huangjinye, Liqun, and Huanghelou at low prices from stores in various counties and districts of Weifang City, then resold them to Hu from Zhejiang Province, earning a price difference, with an illegal business amount totaling 57 yuan.
 
It is understood that defendant Liu communicated with buyer Hu via WeChat and purchased cigarettes from various counties and districts based on Hu's needs. After receiving transfers from Hu via WeChat or Alipay, Liu mailed the purchased cigarettes to the other party through express delivery. On January 12, 2020, while moving newly purchased cigarettes in the underground parking lot of his residence, Liu was caught by tobacco monopoly law enforcement officers. The officers seized a total of 97 cartons of brand cigarettes including Zhonghua, Nanjing, and Baisha from Liu's rented car and residence, valued at 85,800 yuan. These cigarettes were tested by the Shandong Tobacco Quality Supervision and Inspection Station and found to be genuine. After his arrest, Liu voluntarily confessed to his crimes, and his relatives returned 10,000 yuan of illegal gains on his behalf.
 
 
Relevant legal provisions
"Criminal Law of the People's Republic of China"  Article 225: Crime of Illegal Business Operations
Violating national regulations, any of the following illegal business operations that disrupt market order, if the circumstances are serious, shall be punished with fixed-term imprisonment of not more than five years or criminal detention, and/or a fine of not less than one time but not more than five times the illegal gains; if the circumstances are especially serious, the punishment shall be fixed-term imprisonment of not less than five years, and a fine of not less than one time but not more than five times the illegal gains or confiscation of property: (1) Engaging in the operation of monopolized or restricted items as stipulated by laws and administrative regulations without permission; (2) Buying or selling import and export licenses, certificates of origin, or other business licenses or approval documents as stipulated by laws and administrative regulations; (3) Illegally operating securities, futures, or insurance businesses without approval from the relevant state authorities, or illegally engaging in fund payment and settlement businesses; (4) Other illegal business operations that seriously disrupt market order.
 
Tobacco Monopoly Law Article 3
The state implements monopoly management over the production, sale, and import/export of tobacco monopoly commodities according to law, and enforces a tobacco monopoly license system.

 
 

[1] Court Opinion
After trial, the court found that the defendant Liu, without a license, operated monopoly commodities, disrupting market order with particularly serious circumstances, constituting the crime of illegal business operations and should be punished according to law. Considering relevant circumstances and in accordance with legal provisions, the court sentenced the defendant Liu to five years and six months in prison for the crime of illegal business operations, with a fine of 35,000 RMB; the illegal gains of 10,000 RMB and the seized cigarettes were confiscated according to law.
 
 
[1] The author's perspective
From the above legal provisions, it can be seen that the subject of the crime of illegal business operations can be either a natural person or a unit. The subjective aspect is intentional with the purpose of seeking illegal profits, and the objective aspect is violating state regulations by engaging in illegal business activities, disrupting market order, with serious circumstances. Among them, if the circumstances are serious, the punishment is up to five years in prison or criminal detention, with a fine of one to five times the illegal gains; if the circumstances are particularly serious, the punishment is more than five years in prison, with a fine of one to five times the illegal gains or confiscation of property.
 
According to the relevant provisions of the Tobacco Monopoly Law, tobacco in China is a monopoly commodity. In this case, Liu, without obtaining a tobacco retail license, illegally resold cigarettes, disrupting market order, with an illegal business amount of over 500,000 RMB, exceeding the standard for "particularly serious circumstances" under relevant judicial interpretations. Combined with his mitigating circumstances, the court ultimately sentenced him to five years and six months in prison.
 
In fact, Liu was only in his twenties, in the prime of youth, a stage of life meant for hard work and striving, yet he ended up in prison due to illegal acts, which is truly regrettable. A gentleman loves wealth but obtains it through proper means. Young people should be down-to-earth, using their own hard work and effort to legally acquire wealth and create a happy and bright future, rather than seeking shortcuts and going astray.