NACE 12.0 – Manufacture of Tobacco Products | Public Tenders

Definition: NACE 12.0 covers the processing of raw tobacco into tobacco products such as cigarettes, cigars, pipe tobacco and chewing tobacco, as well as the manufacture of tobacco substitutes. The group makes up the entirety of Division 12 within manufacturing (Section C).

Legal basis: NACE Rev. 2 (Regulation (EC) No 1893/2006) · Last updated: January 2026

What does NACE 12.0 cover?

NACE 12.0 (Manufacture of tobacco products) classifies businesses that prepare raw tobacco and process it into saleable tobacco products — a highly regulated sector with particular relevance for state tax and customs administration.

Group 12.0 is the only group within Division 12 and contains a single class:

Public-sector touch points arise primarily through state control and regulation of the tobacco market: customs authorities, tax authorities and correctional facilities are the most relevant contracting authorities linked to this NACE group. In addition, health authorities procure nicotine-replacement products as part of cessation programmes.

Public tenders: scope of NACE 12.0

Tobacco products are sought in public procurement only in very specific contexts — primarily in the prison system as well as by state monopoly operators and tax authorities.

Typical contract types

• Procurement for correctional facilities: Cigarettes and tobacco products as part of the offering in prison canteens; tenders by state judicial authorities or prison in-house operations
• Tax stamps and control marks: Procurement of tobacco-tax banderoles by customs and tax authorities (closely linked to NACE group 18.1 – printing)
• Nicotine-replacement therapy in public healthcare: Statutory associations of panel doctors and health insurance funds procure nicotine patches, gum and inhalers as part of cessation programmes
• Research and regulatory services: Tenders by the Federal Institute for Risk Assessment (BfR) and other authorities for product testing and pollutant analysis

Thresholds and procedure types

Contracts for tobacco products in correctional facilities typically fall below the EU threshold for supply contracts (EUR 221,000 for upper federal authorities, EUR 221,000–431,000 depending on the contracting authority, as of 2024/2025) and are awarded under national competition. Framework agreements for state-wide prison consortia can reach higher volumes.

Relevant CPV codes for NACE 12.0

The mapping of tobacco products to CPV codes is unambiguous; public demand is concentrated in a few specialised groups.

Current tenders with these CPV codes are published on TED (Tenders Electronic Daily) and on national procurement platforms such as DTVP, subreport or the German Tender Gazette (Deutsches Ausschreibungsblatt).

For whom is NACE 12.0 relevant under procurement law?

Public contracting authorities

The most relevant public contracting authorities in NACE 12.0 are state judicial administrations and the correctional facilities reporting to them, which procure tobacco products for sale in prison canteens. In Austria, the tobacco monopoly retains historically strong state involvement; the successor structure of Austria Tabak and the tax authorities play a special role here. Customs and tax authorities in Germany and Austria tender control marks and tax banderoles, which are technically attributable to the printing trade but are directly linked to the tobacco industry.

Companies and bidders

Businesses participating in public tenders in NACE 12.0 must typically meet the following requirements:

• Authorisation: Commercial licence as a tobacco trader or manufacturer; food-law authorisation depending on the product category
• Tax compliance: Evidence of compliance with tobacco-tax obligations and proper banderoling
• Certifications: ISO 9001 for quality management systems; for health products, pharmaceutical authorisation where required
• References: Evidence of comparable supply contracts, particularly with public or institutional buyers

Because the tobacco-processing market is highly concentrated, tenders in this area are often characterised by limited bidder fields.

NACE 12.0 in context: Section C and Division 12

As the only group, NACE 12.0 makes up the whole of Division 12 of manufacturing — a self-contained, highly regulated sub-area.

• NACE C – Manufacturing: Parent section covering all productive activities
• NACE 11 – Manufacture of beverages: Related division with similar regulatory structures
• NACE 13 – Manufacture of textiles: Following division in Section C
• NACE 46 – Wholesale trade: Relevant for the distribution of tobacco products

Frequently asked questions about NACE 12.0 and public tenders

Are tobacco products tendered publicly at all?
Yes, but to a very limited extent. The main use case is procurement for correctional facilities, where tobacco products form part of canteen operations. Public bodies are bound by procurement law as soon as the applicable thresholds are met.

Are there particular procurement restrictions for tobacco products?
General procurement law does not exclude tobacco products categorically. However, internal guidelines of contracting authorities as well as EU and Member State health strategies may lead to reduced procurement or substitution.

What role does tobacco tax play in tenders?
Tobacco tax and the banderole requirement must be taken into account in price calculations and suitability evidence. Bidders must demonstrate that their products are duly taxed and marked.

Are there EU-wide tenders for tobacco products?
Owing to low contract volumes, tobacco procurement is rarely tendered EU-wide. National procedures and direct awards within the legally permissible scope dominate.

Last updated: January 2026
All information provided without warranty. For legally binding advice, please consult a law firm specialising in public procurement law.