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Tag: China

  • China to End Export VAT Rebates for Vape Products

    China to End Export VAT Rebates for Vape Products

    China will end value-added tax (VAT) export rebates for specified electronic cigarette devices, nicotine, nicotine salts, and certain other inhalation products effective April 1, 2027, under a policy announced by the Ministry of Finance and State Taxation Administration. The measure affects designated product categories and customs codes.

    The change could increase export costs for Chinese manufacturers and suppliers serving international vaping and nicotine markets by eliminating rebates previously available on eligible exports. The impact will depend on the products covered, manufacturers’ cost structures, and their ability to adjust pricing or supply chains.

  • China Destroys $355M of Illicit Tobacco, Nicotine Products

    China Destroys $355M of Illicit Tobacco, Nicotine Products

    Chinese authorities destroyed 188 million smuggled cigarettes, 55,000 e-cigarettes, and 2.7 metric tons of cut tobacco Oct. 12 as part of a nationwide crackdown on tobacco-related crimes. The coordinated operation took place in several regions, including Guangdong, Guangxi, Yunnan, and Xinjiang. Since the start of 2026, a joint campaign involving 13 government departments, including the State Tobacco Monopoly Administration, Ministry of Public Security, and General Administration of Customs, has led to investigations of more than 4,500 smuggling cases and seizures of approximately 1.3 billion cigarettes, 150,000 cigars, and 39.8 metric tons of cut tobacco and tobacco leaves. The seized products were valued at 2.37 billion yuan ($355.5 million).

    The campaign targets tobacco products manufactured illegally overseas and smuggled into China, with enforcement covering purchasing, transportation, storage, and sales. Authorities have increased inspections at ports and border areas and expanded international law enforcement cooperation to disrupt smuggling routes.

  • China’s STMA Gets New Deputy Director

    China’s STMA Gets New Deputy Director

    China’s State Council announced numerous appointments and removals September 20, including naming Zhang Xiaotang as deputy director of the State Tobacco Monopoly Administration (STMA). The STMA has also listed Zhang as a member of its Party leadership group and deputy director.

    Zhang, who holds an MBA and is a senior accountant, served as Party secretary and general manager of Hebei China Tobacco Industry Co. since November 2022. He previously held positions in the STMA’s financial management and supervision department, serving as deputy director from December 2018 and director from November 2019. Yao Laiying was appointed STMA director in April 2026.

  • China, Australia Bust $64M Tobacco Syndicate

    China, Australia Bust $64M Tobacco Syndicate

    Australian and Chinese authorities worked to dismantle an international syndicate accused of shipping illegal tobacco into Australia, with more than 60 people arrested in China. The Australian Border Force said the syndicate shipped more than 90 containers of tobacco to Australia between January and May. Authorities seized more than 60 million cigarettes and 60 kilograms of loose-leaf tobacco, with the tobacco valued at more than A$92 million ($64.4 million) based on the taxes allegedly evaded. Chinese authorities said the tobacco was likely manufactured and moved through Southeast Asia before being concealed in legitimate cargo bound for Australia.

    Ninety-one of the 112 containers flagged by Chinese authorities were found to contain illegal tobacco. Shipments left Shanghai concealed among goods including printers and lamps and largely arrived at Sydney port.

    Australia has experienced a sharp increase in illicit tobacco consumption in recent years. The Australian Bureau of Statistics estimates that 80% of tobacco and other nicotine products consumed in the country are now illicit, compared with 12% in 2017.

  • China Identifies E-Cigarettes as Trade Friction Hotspot

    China Identifies E-Cigarettes as Trade Friction Hotspot

    China’s Global Economic and Trade Friction Index identified the electronics industry — including drones, semiconductors, and e-cigarettes — as one of the sectors facing the highest levels of China-related trade friction in May 2026, according to the China Council for the Promotion of International Trade (CCPIT). Speaking at a July 31 press conference, CCPIT said India’s China-related trade friction index ranked highest among monitored markets, while the United States launched 17 trade remedy investigations during the month, more than three times the total initiated by all other countries combined.

  • Health Groups Urge China to Raise Tobacco Taxes

    Health Groups Urge China to Raise Tobacco Taxes

    A recent article in Caixin Global reports that China is facing sustained pressure on public health systems as its population ages and chronic disease rates rise, with smoking reduction remaining a key policy challenge. At a media briefing on tobacco taxation and health co-hosted by the Beijing Tobacco Control Association, the China-Japan Friendship Hospital, and the University of International Business and Economics, experts highlighted tobacco tax increases as one of the most effective tools available to reduce smoking prevalence.

    Speakers at the briefing argued that higher tobacco taxes can both discourage consumption and support broader public health goals tied to China’s long-term disease burden. The discussion comes amid ongoing concerns that smoking rates remain relatively high despite existing control measures, reinforcing calls from health experts for stronger fiscal policies as part of a wider tobacco control strategy that also addresses demographic and healthcare system pressures.

  • Fight Over Foreign-Sourced Vape Ban Continues in Texas Appeals Court

    Fight Over Foreign-Sourced Vape Ban Continues in Texas Appeals Court

    Texas officials are asking the U.S. Court of Appeals for the Fifth Circuit to dismiss a lawsuit challenging a state law that restricts the sale of e-cigarette products containing liquids sourced from China and other designated foreign adversaries. According to court filings, the acting Texas comptroller argues the office is protected by sovereign immunity and should not be subject to the lawsuit brought by vape companies and the Vapor Technology Association.

    According to Law 360, the dispute centers on a recently enacted Texas law targeting vape products tied to countries identified as foreign adversaries, adding another layer to the increasingly complex regulatory environment facing the U.S. vaping sector. Texas officials have also argued in earlier filings that the plaintiffs lack standing and that claims about business harm remain speculative.

  • Zimbabwe Tobacco Eyes Record Output, Concerned About China

    Zimbabwe Tobacco Eyes Record Output, Concerned About China

    Zimbabwe’s tobacco sector is moving toward another record year, projected to exceed 360,000 tons in output, up from 355,000 tons in 2025 and 306,000 tons in 2024, driven largely by contracted smallholder farmers working with foreign-backed agribusinesses, including Chinese-linked firms. According to the Tobacco Industry and Marketing Board, planted acreage increased by 15% with more than 127,000 registered growers, around 95% of whom are smallholders and account for roughly 85% of total output. The sector has rebounded sharply from its 2008 collapse, when production fell to 48,000 tons following land reform disruptions.

    While contract farming has expanded access to inputs such as seed and fertilizer and supported export growth across roughly 60 global markets, growers and industry representatives report increasing concerns over debt exposure, fees, and pricing pressures under financing agreements, particularly within systems dominated by Chinese contractors, which account for around 60% of export value. Zimbabwe is also seeking to diversify export destinations and expand domestic cigarette manufacturing, which currently represents about 11% of output, as officials, including Finance Minister Mthuli Ncube, push for greater local value addition amid rising global scrutiny from public health and environmental groups, including the World Health Organization.

  • CBP Seizes $175M in Illicit Vapes from Maritime Cargo

    CBP Seizes $175M in Illicit Vapes from Maritime Cargo

    The U.S. Customs and Border Protection, working with the U.S. Coast Guard and the U.S. Food and Drug Administration, announced that it has seized more than 18 million vape units valued at over $175 million over the last few weeks under a targeted initiative known as Operation Red Mist. The ongoing operation focuses primarily on maritime cargo shipments originating from the People’s Republic of China and is aimed at disrupting the illicit importation, transport, and distribution of unauthorized vape products and related hazardous components.

    According to CBP, inspection teams identified shipments that were misclassified or improperly labeled to evade detection, duties, and regulatory scrutiny, and that failed to meet U.S. import requirements for tobacco products, electronics, and hazardous materials transport. Officials said all e-cigarette products seized lacked the required FDA premarket authorization, making them illegal for sale in the United States. CBP said the operation reflects a broader, government-wide effort to keep noncompliant and potentially dangerous vaping products out of U.S. commerce and away from youth, while disrupting the revenue streams that often support broader criminal activity.

    Source: U.S. Customs and Border Protection

  • Hong Kong Customs Busts $1.5M Illicit Cigarette Ring

    Hong Kong Customs Busts $1.5M Illicit Cigarette Ring

    The Hong Kong Customs and Excise Department arrested three people following a months-long investigation into an illicit cigarette distribution and money laundering syndicate that led to the seizure of about 2.2 million untaxed cigarettes and HK$11.3 million ($1.5 million) in suspected criminal proceeds. The case stems from a January raid on a remote warehouse in Ngau Tam Mei, where investigators discovered the cigarettes—valued at HK$9.9 million ($1.3 million)—along with detailed records documenting brands, storage dates, and volumes.

    A follow-up financial probe found that one of the suspects used his own bank accounts, as well as those of his girlfriend, to process payments from customers buying illicit cigarettes, while a third suspect is believed to have supplied the products. Investigators identified thousands of transactions between 2021 and 2025 involving more than 1,000 third parties, with rapid fund movements and low balances characteristic of money laundering activity. The suspects have been released on bail pending further investigation. Under Hong Kong law, trafficking illicit cigarettes carries penalties of up to HK$2 million ($260,000) in fines and seven years’ imprisonment, while money laundering convictions can bring fines of up to HK$5 million ($650,000) and 14 years in prison.