A few days ago, according to Hong Kong media reports, my country’s Hong Kong Special Administrative Region may lift the ban on the re-export of e-cigarettes and other heated tobacco products by land and sea by the end of this year, in order to promote related economic growth.
An insider revealed: Given the economic value of re-exports, senior officials of the Hong Kong Special Administrative Region are considering amending the ban to allow new tobacco products such as e-cigarettes and heated cigarettes to be re-exported through Hong Kong by land and sea.
But an economist warned on Monday that the move would damage the credibility of municipalities if they backtracked on their commitment to curb tobacco use and weakened the promotion of public health.
According to the Smoking Ordinance 2021, which was revised in Hong Kong last year and came into full effect on April 30 this year, Hong Kong completely prohibits the sale, manufacture, import and promotion of new tobacco products such as e-cigarettes and heated tobacco products. Violators face fines of up to HK$50,000 and jail terms of up to six months, but consumers are still allowed to use vaping products.
The Smoking Ordinance 2021 also prohibits the transshipment of new tobacco products by truck or ship to overseas via Hong Kong, except for air transshipment cargo and transit cargo left on aircraft or ships.
Before the ban, Hong Kong was the main transshipment point for the export of domestic vaping products. More than 95% of the world’s e-cigarette production and products come from China, and 70% of China’s e-cigarettes come from Shenzhen. In the past, 40% of the e-cigarettes exported from Shenzhen were shipped from Shenzhen to Hong Kong, and then sent to the world from Hong Kong.
The consequence of the ban is that e-cigarette manufacturers have to re-route exports, resulting in a severe decline in Hong Kong’s overall cargo exports. A survey shows that 330,000 tons of air cargo is affected by the ban every year, losing about 10% of Hong Kong’s annual air exports, and the value of re-exports affected by the ban is estimated to exceed 120 billion yuan. The Hong Kong Freight Forwarders and Logistics Association said the ban had “stifled the environment for the freight logistics industry and negatively impacted the livelihoods of its employees”.
It is estimated that the relaxation of the ban on the transit trade of e-cigarettes is expected to bring billions of dollars in fiscal and tax revenue to the Hong Kong government coffers every year.
Yi Zhiming, Member of the Legislative Council of the Hong Kong Special Administrative Region of China
Yi Zhiming, a lawmaker who lobbied to ease the ban, said amendments to the law could include allowing re-export of vaping products by sea and air, as there are now logistical security systems in place to prevent products from flowing into cities.
He said, “The Airport Authority operates a logistics park in Dongguan as a joint checkpoint for cargo transportation. It will cast a huge safety net to block. When the cargo arrives at Hong Kong Airport, the transit cargo will be loaded onto the aircraft for re-export.”
“Previously, the government was concerned about the risk of vaping products flowing into the community. Now, this new security system can plug the loopholes in the transfer of products, so it is safe to change the law.” He said.
Post time: Oct-24-2022
