Tobacco business is a franchise and cannot be transferred or leased. If the tobacco holder dies, the holder's children or others may cancel the original tobacco license and re-apply for re-operation.

If the children of the original holder continue to operate after his death, this is unlicensed operation and will be punished according to law. Those who constitute a crime will be investigated for corresponding legal responsibilities.

According to Article 225 of the Criminal Law of People's Republic of China (PRC), whoever commits any of the following illegal business operations in violation of state regulations and disrupts the market order, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times for illegal gains or confiscation of property:

(a) operating a franchise or monopoly commodity or other commodities whose operation is restricted by laws and administrative regulations without permission;

(2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations;

(three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business;

(four) other illegal business activities that seriously disrupt the market order.

Article 6 An application for a tobacco monopoly license shall be handled in accordance with the provisions of the Tobacco Monopoly Law and these Regulations.

Tobacco monopoly license is divided into:

(1) License of tobacco monopoly production enterprise;

(2) License of tobacco monopoly wholesale enterprise;

(3) Tobacco monopoly retail license.

Fourteenth tobacco monopoly license issuing organs can regularly or irregularly inspect enterprises and individuals that have obtained tobacco monopoly licenses. If the inspection does not meet the requirements of the Tobacco Monopoly Law and these Regulations, the tobacco monopoly license issuing organ may order it to suspend the tobacco monopoly business and make rectification until it is disqualified from engaging in tobacco monopoly business.

The specific measures for the administration of tobacco monopoly licenses shall be formulated by the administrative department of tobacco monopoly in the State Council in accordance with the provisions of these Regulations.