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The development of medium-sized cigarettes still faces challenging variables due to the continuous tightening of the number of commercial channels and the insufficient special sorting capacity, which to some extent intensifies the competition.

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We stated in our December 9, 2016 memo to you, that we believed strongly that CTPs interpretation of this provision was incorrect as a matter of law and policy, and that we intended to actively and aggressively defend those products.At the moment we are unable to sell filtered cigars ,and we hope the CTP will acknowledge the difference between cigarettes and Filtered cigars after our explanation