---
title: "The Last Month! Do You Know the Issues in Salt Management and Operation Under the Salt Reform?"
description: "Many distributors have been concerned about the salt reform for a long time. As the reform date approaches, some salt manufacturers may build channels in advance for next year's reform. Distributors planning to invest in the salt industry should carefully identify and avoid being exploited by lawbreakers. Today, we have compiled ten frequently asked questions for your reference."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2016-12-02"
language: "en"
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# The Last Month! Do You Know the Issues in Salt Management and Operation Under the Salt Reform?

> Many distributors have been concerned about the salt reform for a long time. As the reform date approaches, some salt manufacturers may build channels in advance for next year's reform. Distributors planning to invest in the salt industry should carefully identify and avoid being exploited by lawbreakers. Today, we have compiled ten frequently asked questions for your reference.

> Many distributors have been concerned about the salt reform for a long time. As the reform date approaches, some salt manufacturers may build channels in advance for next year's reform. Distributors planning to invest in the salt industry should carefully identify and avoid being exploited by lawbreakers. Today, we have compiled ten frequently asked questions for your reference.
> **01. A food processor asks: My company is a monosodium glutamate (MSG) producer. After reading the "Salt Industry System Reform Plan," we plan to cooperate with a salt factory to purchase salt, repackage it into small bags, and sell it through our MSG distribution channels. Does this comply with salt industry management regulations? If not, how can we apply for the relevant licenses?**
>
> Salt administration law enforcement officer's reply: First, after the salt reform, the salt定点生产许可制度 (designated production licensing system) will still be implemented. Small bag salt can only be repackaged by licensed designated salt production enterprises and licensed salt companies arranged by provincial salt industry authorities. Second, the State Council's "Salt Industry System Reform Plan" clearly stipulates that no new designated salt production enterprises or salt wholesale enterprises will be approved. Therefore, your company cannot obtain a license for salt production or salt wholesale, nor can you repackage or distribute salt.
> **02. An e-commerce operator asks: Our company has established a food e-commerce platform for B2B and B2C. After the "Salt Industry System Reform Plan" was announced, we plan to include salt in our business scope. Is this feasible?**
>
> Salt administration law enforcement officer's reply: It depends. First, for salt B2C, before 2017, our province still implements a salt retail licensing system. You can hold a business license and apply to the local salt administration department for a permit, but online retail is restricted, and logistics carriers or express delivery of salt require a salt transport permit. After 2017, the salt transport permit will be abolished. Specific retail licensing details will be available in the provincial salt reform implementation plans by the end of the year. It is possible that salt retail will be liberalized both within and outside the province. If it is liberalized nationwide, you can operate B2C online salt retail. However, note that cross-province (autonomous regions, municipalities) online retail of iodized salt must comply with local salt iodine concentration regulations, and non-iodized salt must comply with the salt industry supervision regulations of the destination. Second, for salt B2B, since no new designated salt production enterprises or salt wholesale enterprises will be approved, your company has no hope of obtaining a salt wholesale license. If you want to operate food B2B or B2C, we suggest cooperating with licensed salt producers or provincial salt wholesalers by providing platform services for mutual benefit.
> **03. An industrial salt operator asks: I sell industrial salt and have a business license covering industrial salt. After the "Salt Industry System Reform Plan" was announced, I applied to add edible salt wholesale to my business scope. Can I sell salt then?**
>
> Salt administration law enforcement officer's reply: Even by January 1, 2017, you cannot sell salt. Your business license for edible salt wholesale has a note in parentheses; you must obtain a salt wholesale license as required, but you are not eligible. It is necessary to remind you that our province still implements a contract filing and transport permit system for industrial salt. This year, your industrial salt operations may still be investigated by local salt industry authorities. As for when "various restrictions on small industrial salt and salt products entering the market" will be lifted, or whether during the transition period direct sales by "industrial salt production enterprises" will be allowed, this will be determined by provincial people's government salt reform implementation plans. Objectively speaking, the possibility of you distributing industrial salt from 2017 is quite high.
> **04. (1) A government service center window staff member asks: I have an applicant applying for a business license for salt wholesale. Is salt wholesale now open? Can I issue a license?**
>
> Salt administration law enforcement officer's reply: According to the "Salt Industry System Reform Plan," at this stage, salt wholesale is only open to designated salt production enterprises. Other commodity circulation enterprises are not allowed to engage in salt wholesale. The applicant cannot obtain a business license for salt wholesale. For specific explanations, refer to the "Minutes of the Inter-Ministerial Joint Conference on Economic System Reform (Salt Special Topic)" issued by the National Development and Reform Commission.
> **04. (2) A comprehensive window staff member asks: I have an applicant applying for a salt wholesale license. Can we accept the application now?**
>
> Salt administration law enforcement officer's reply: Salt wholesale is restricted to existing designated salt production enterprises and salt wholesale enterprises. This time, the salt wholesale license application is only accepted from designated salt production enterprises. The list of relevant enterprises has been published by the Ministry of Industry and Information Technology and the National Development and Reform Commission. Enterprises not on the list cannot apply for a salt wholesale license.
> **05. A salt producer asks: Before obtaining the license, based on my understanding of the "Salt Industry System Reform Plan," I contacted several customers and signed letters of intent for agency sales of N tons of salt. Now I have set up about 10 small bag salt repackaging lines and am ready to go all out. Are there any problems?**
>
> Salt administration law enforcement officer's reply: Your statement is a bit vague. The issues to note are:
>
> First, after a production enterprise obtains a salt wholesale license, the period from obtaining the license to the end of the year is a preparation phase. Of course, you can contact customers inside and outside the province to distribute salt, but signing formal contracts is subject to the license's validity period of "two years" counting backwards. The actual salt wholesale business, including transporting salt products, must start from January 1, 2017. It is best not to formally handle it in advance.
>
> Second, when your company engages in salt wholesale and enters the circulation and sales field, including salt wholesale and retail, the distribution channels include three routes: self-built sales channels, entrusted agency sales, and third-party logistics distribution. Except for third-party logistics distribution, self-built sales channels can operate according to marketing rules. There are two options: headquarters wholesale and retail (whether it can include branch wholesale and retail is commercially feasible or can be explored in practice), including commission agency where the headquarters entrusts agents, salt brokers, and logistics distributors for wholesale, and entrusting salt companies in the sales area for wholesale. Note whether this is a model of selling salt goods outright to food wholesalers in the sales area who then act as agents for further wholesale, which is not the nature of direct wholesale by the headquarters. If there is no appropriate interpretation of "self-built sales channels" by salt industry authorities, this business model is easily identified by salt administration as joint illegal wholesale without a license. Be careful to avoid risks.
>
> Third, special reminder: pay attention to the possibility that the Ministry of Industry and Information Technology and the State Administration for Industry and Commerce may formulate new regulations on the sales operations and distribution channel supervision of licensed salt wholesalers. These may be issued soon. You should use these as the basis to further standardize and adjust your salt marketing strategy.
> **06. A salt company asks: According to the salt reform plan, traditional "distributors" will no longer be allowed to wholesale salt. So, will the long-term cooperation model between many salt companies and "distributors" (such as resale) also become "illegal" starting next year?**
>
> Salt administration law enforcement officer's reply: Yes. First, the salt monopoly wholesale system remains unchanged. Second, wholesale salt must hold a salt wholesale license or a transfer (agency) wholesale license. Third, traditional "distributors" who want to engage in salt wholesale can only act as extended transfer/agency wholesale units of salt companies and obtain a salt transfer (agency) wholesale license. If they cannot obtain a license, they must change to direct wholesale units extended to townships and villages under county-level salt companies, selling salt in the name of the salt company and issuing salt company invoices, receiving commission agency compensation or labor compensation. Fourth, operating salt wholesale without a license is a violation of the salt monopoly supervision, and it will be a major regulatory item for salt industry authorities after the reform. Such illegal activities will be investigated and punished according to law.
> **07. A salt retailer asks: Is salt now liberalized? Can we retail salt and purchase refined salt and solar salt from inside and outside the province? Some out-of-province salt factories ask us to sell these salts on consignment. Is this feasible?**
>
> Salt administration law enforcement officer's reply: First, your store can purchase various salts from manufacturers and salt companies inside and outside the province for retail in your store. Second, when purchasing, note that the salt wholesaler must have a salt wholesale license. You can only purchase salt from enterprises with a salt wholesale license. Third, you must purchase salt whose quality, including iodine content, meets provincial standards. Fourth, remember that if you resell to other retailers, you may be suspected of wholesale salt without a license and will face severe administrative penalties. If the quantity reaches 20 tons, it constitutes the crime of illegal business operation under criminal law.
> **08. A vegetable salt farmer asks: We currently purchase more than 300 tons of salt per year from the salt company. According to the provincial salt industry system reform implementation plan, besides continuing to purchase from the salt company, when can we buy salt directly from salt factories or from outside the province?**
>
> Salt administration law enforcement officer's reply: From January 1, 2017.
> **09. A grassroots law enforcement officer asks: Many out-of-province salt salespeople are making false propaganda to major food retailers, food wholesalers, and large food processing salt users. They contact salt wholesale business under various pretexts, using signed agency agreements to sell salt as bait, and conduct illegal business activities. Some are indeed designated salt production enterprises, some set up offices to promote, and some factory representatives come to our province to promote multi-variety salt. How should we handle this?**
>
> Salt administration law enforcement officer's reply: First, major food retailers, food wholesalers, and large food processing salt users do not have the qualification to obtain a salt wholesale license. At the same time, these distributors are traditional customers of salt companies and are also potential intermediaries for future cross-regional operations of licensed designated salt production enterprises and provincial salt companies. At present, provincial authorities have issued notices. Pay attention to publicizing the salt reform policy according to the notices.
>
> Second, for licensed salt wholesalers promoting salt, adhere to the principle that enterprises holding salt wholesale licenses directly wholesale + entrust local salt companies for agency sales. Stop their behavior of entrusting unlicensed operators to sell salt on an agency basis, and also stop the behavior of signing direct wholesale agreements in advance or directly wholesaling salt before the year.
>
> Third, note that localities cannot set up any barriers to salt circulation, sales, or cross-regional operations. Strictly implement the regulation that "from January 1, 2017, all salt product prices will be liberalized, salt transport permits will be abolished, existing designated salt production enterprises will be allowed to enter the circulation and sales field, and salt wholesale enterprises can carry out cross-regional operations." If parties find barriers, they can complain to local or higher-level salt industry authorities and request the removal of obstacles.
> **10. A salt trafficker asks: I have been in the salt business for many years and have gained rich experience. Now I study the salt reform policy and feel I can do salt business again. Refined industrial salt is a bit difficult; I can't sell at the factory price. I plan to buy sea lake salt as a highlight to sell. Edible salt is strictly controlled, so I dare not do it again. Can I play a bit on the edge and operate industrial salt, feed additive sodium chloride, and bath and hot compress salt for living to make some money?**
>
> Salt administration law enforcement officer's reply: Remember, turn over a new leaf! Do not touch the high-voltage line of producing and selling fake salt. Producing and selling fake salt may be "prohibited by the state for special needs such as disease prevention and control" and may be severely punished as producing and selling food that does not meet food safety standards. It is right not to do edible salt. Note that for feed additive sodium chloride, many salt production enterprises are now directly selling it. Can you compete with them? Pay attention to the "Notice of the General Office of the Ministry of Agriculture on Strengthening the Supervision of Feed Additive Sodium Chloride." Industrial salt and household salt are not edible salt. After you obtain a business license, further study the salt reform implementation plans issued by relevant provinces, and be prepared for strict supervision by multiple departments. There is hope that you can operate according to regulations and law next year.
> > Industry insiders point out that salt industry reform is imperative, but it should be gradual rather than hasty. The state will continue to guide and adjust salt prices, especially edible salt prices, for a certain period. After marketization, salt prices will inevitably fluctuate, and whether they rise or fall is not conducive to the healthy development of China's salt enterprises or people's livelihood.
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>> For the salt reform introducing market mechanisms, enterprises can be reshuffled, leaving those with good quality and reputation. Prices may drop, and varieties will increase. So from any perspective, reform is a good thing. As the salt monopoly system reform approaches, whether it is enterprises or our distributor friends, we must not be too hasty. If you want to operate salt, you must be patient. You have waited so many years; a few more days won't matter.
**This article is compiled and reported by <New Distribution>**
**Reference materials: Salt Encyclopedia**
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