Information: Hong Kong is considering resuming the transit trade of e-cigarettes and may revoke the relevant ban

A few days ago, according to Hong Kong media, China's Hong Kong Special Administrative Region may lift the ban on re-export of electronic cigarettes and other heated tobacco products by land and sea before the end of this year to promote relevant economic growth.

An insider said: In view of the economic value of re-export, senior officials of the Hong Kong Special Administrative Region are considering amending the ban to allow new tobacco products such as electronic cigarettes and heating cigarettes to be re-exported from land and sea through Hong Kong.

However, an economist warned on Monday that if the municipal authorities reneged on the commitment to curb tobacco use and weakened the promotion of public health, this would damage the credibility of the municipal authorities.

According to the Smoking Ordinance 2021, which was revised last year in Hong Kong and came into full force on April 30 this year, the sale, manufacture, import and promotion of electronic cigarettes, heating tobacco products and other new tobacco products are prohibited in Hong Kong. Violators will face a fine of up to HK $50000 and imprisonment of up to 6 months, but consumers are still allowed to use Electronic Cigarette products.

The Smoking Ordinance 2021 also stipulates that it is prohibited to transfer new tobacco products transported by trucks or ships to overseas through Hong Kong, except for air transit goods and transit goods left on aircraft or ships.

Before the implementation of the ban, Hong Kong was the main transit point for the export of domestic electronic cigarette products. More than 95% of the global electronic cigarette production and products are from China, and 70% of China's are from Shenzhen. In the past, 40% of the electronic cigarettes exported from Shenzhen were shipped from Shenzhen to Hong Kong, and then from Hong Kong to the world.

As a result of the ban, electronic cigarette manufacturers have to find new export routes, leading to a serious decline in Hong Kong's overall freight exports. A survey showed that 330000 tons of air cargo were affected by the ban every year, losing about 10% of Hong Kong's annual air export volume, and the value of transit cargo affected by the ban was estimated to exceed 120 billion yuan. The Hong Kong Freight Forwarders and Logistics Association said that the ban "killed the environment of the freight logistics industry and had a negative impact on the livelihood of its employees".

It is estimated that the relaxation of the ban on electronic cigarette transit trade is expected to bring billions of dollars of fiscal and tax revenue to the Hong Kong government treasury every year.

Yi Zhiming, member of the Legislative Council of the Hong Kong Special Administrative Region of China

Yi Zhiming, a member of the Legislative Council who lobbied for the relaxation of the ban, said that the amendments to the law might include allowing the re-export of E-Cigarette products through sea and air transport, because there is now a logistics security system in place to prevent the products from flowing into cities.

He said, "The Airport Authority has set up a logistics park in Dongguan as a joint checkpoint for cargo transportation. It will drop a huge safety net to block it. When the goods arrive at the Hong Kong airport, the transit goods will be loaded on the plane for re-export."

"Previously, the government was concerned about the risk of e-cigarette products flowing into the community. Now, this new security system can plug the loopholes in product transfer, so it is safe to modify the law," he said.