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When Chongqings new smoking law was adopted the next month, it included a significant carve-out long sought by the company: Restaurants, hotels and entertainment venues such as bars and karaoke clubs could allow smoking in designated areas
Making filters in-house, on the other hand, may entail certain savings at the actual manufacturing end, but besides purchasing and installing the required expensive machinery and training operating personnel it potentially also entails shipping and storage costs, as well as duties and taxes for the imported raw materials
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In that suit, the tobacco companies didn't challenge the specific labels